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)