Govt debts drop to $61.3 billion
Govt debts drop to $61.3 billion
JAKARTA (JP): The government's outstanding external debts
dropped to US$61.3 billion last September from $64 billion in
May, Minister of Finance Mar'ie Muhammad said here yesterday.
He told a hearing with the Budgetary Commission of the House
of Representatives (DPR) that most of the loans were provided
under either bilateral or multilateral arrangements.
He said that of the outstanding debts, $23.8 billion were made
under bilateral arrangements, carrying an average interest rate
of 2 percent per annum.
The other $20.5 billion were made under multilateral deals,
carrying an average interest rate of 7.07 percent per annum, the
minister said.
He said another $14.2 billion of the external debts were
provided in the form of credit exports, $1.6 billion in
commercial loans and the remaining $1.2 billion in leasing deals.
"The interest rates of these kinds of loans range from 6.5
percent to 6.8 percent per annum," he said.
The minister and the commission were discussing the
government's budget plan for the 1996/1997 fiscal year at
yesterday's hearing, which will resume today and will last until
Friday.
Mar'ie said the government would set aside Rp 19.93 trillion
(US$8.7 billion) for the repayment of the loans, including
interest, in the 1996/1997 fiscal year beginning in April.
The Rp 19.93 trillion repayments will consist of Rp 12.11
trillion in debt principals and another Rp 7.81 trillion in
interest, he said.
The loan amortization will account for 22 percent of the
government's projected total spending of Rp 90.61 trillion in the
1996/1997 fiscal year.
Mar'ie told the House members that government loan repayments
(both for principal and interest) are projected to reach $7.51
billion in 1997/1998, $7.54 million in 1997/1998 and $7.38
billion in 1999/2000.
More privatizations
At yesterday's hearing, the minister also told the House
members about the government's plan to privatize three state-
owned companies -- PT Krakatau Steel, Bank Negara Indonesia and
PT Jasa Marga -- later this year.
The minister said the privatization of the three companies
would be carried out through the sales of portions of their
shares to the public.
"The privatization drive of the three companies is now still
undergoing final preparations," he said.
Mar'ie, however, did not disclose whether the three companies
would also be listed on international stock exchanges, like PT
Indosat, PT Telkom and PT Tambang Timah.
Krakatau Steel, the country's largest steel producer, boosted
its profits to Rp 240 billion last year from Rp 58 billion in
1994.
The company's future profits are expected to increase further
in line with the completion of its expansion program.
Bank Negara Indonesia and Jasa Marga reported sound financial
performances last year. The bank's profits rose by 31.3 percent
to Rp 405.8 billion last year from Rp 309.2 billion in 1994.
There is no up-to-date information on the financial
performance of Jasa Marga, but according to last year's data, its
profits were estimated to increase to Rp 170 billion last year
from Rp 150 billion in 1994.
Mar'ie said that the public offering of the three companies'
shares would include the divestment of the government's shares
besides the issuance of new shares.
Proceeds from the sales of the government's shares in Indosat,
Telkom and Tambang Timah have been used to speed up the repayment
of debts carrying interest rates of above 10 percent per annum,.
"Around $1.04 billion of the high-interest loans have been so
far paid by the proceeds of the sales of the government's shares
in the three firms," he said.
The minister said that the government would settle the
remaining $1.1 billion in the coming years.(hen)