Holland to set up trade facility for RI firms
Holland to set up trade facility for RI firms
JAKARTA (JP): Deputy Prime Minister of the Netherlands Hans
van Mierlo said here yesterday the Dutch government planned to
establish a trade facility to guarantee Indonesian imports.
"The Netherlands is examining the possibility of setting up,
in a multilateral framework, a special trade guarantee facility
that could enable Indonesian companies to continue the production
of goods and import necessities," van Mierlo, who is also the
Dutch foreign minister, said.
Speaking before the Indonesia-Netherlands Association and
Forum Indonesia-Netherlands, he said the proposed facility was
part of the country's efforts to help rescue Indonesia from the
economic crisis.
On Feb. 3, Singapore Prime Minister Goh Tok Chong proposed the
establishment of a multilateral committee to guarantee letters of
credit (L/C) issued by Indonesian banks.
Indonesian importers have complained that their L/Cs were
rejected by foreign banks for fear that the local banks could not
service their commitments.
Van Mierlo, who arrived here Tuesday evening for a three-day
visit, said Dutch commercial banks had also pledged to
participate in order to help settle the Indonesian private
sectors' mounting foreign debts.
The banks participated in a 90-day freeze for foreign loans to
Indonesia's private sector. They had also agreed to roll over the
loans, he said.
"ABN/AMRO (a leading Dutch bank) is very active in Indonesia,
and the Steering Committee of Lender Banks, is working on a
solution for restructuring the private debts."
Van Mierlo is scheduled to meet President Soeharto today.
Last month, the Indonesian government announced a de facto
moratorium for offshore loans made by the country's private
sector, which is estimated to amount to US$73 billion.
About $23.07 billion of the total is owed by private national
companies and the remainder by foreign and joint venture firms.
Government representatives have been asking lender countries
such as Japan to negotiate the rollover of loans.
"To a certain extent, the international financial sector has a
shared responsibility for supplying credit without sufficient
surveillance," van Mierlo said.
The Netherlands has contributed more than $300 million as part
of the $43-billion bailout package arranged by International
Monetary Fund (IMF) to cope with the Indonesian crisis.
"Furthermore, we have emphasized that further study is needed
on ways of achieving more equitable burden-sharing among
international financial institutions, bilateral governments and
commercial creditors," he said, adding that the Dutch government
would follow up on the issue with the IMF.
Touching on the role of the European Union in the recovery of
Southeast Asian economies, he said the union had no institutional
framework to furnish financial support to correct the imbalances
of payment in Asia.
Instead, the European member states channeled their financial
assistance through other institution such as the IMF, the G-7 and
G-10, he said.
But countries in the European Union and Southeast Asian region
could further intensify the exchange of thoughts on how Europe
can assist the governments to overcome the crisis, he said. (das)
JAKARTA (JP): Deputy Prime Minister of the Netherlands Hans
van Mierlo said here yesterday the Dutch government planned to
establish a trade facility to guarantee Indonesian imports.
"The Netherlands is examining the possibility of setting up,
in a multilateral framework, a special trade guarantee facility
that could enable Indonesian companies to continue the production
of goods and import necessities," van Mierlo, who is also the
Dutch foreign minister, said.
Speaking before the Indonesia-Netherlands Association and
Forum Indonesia-Netherlands, he said the proposed facility was
part of the country's efforts to help rescue Indonesia from the
economic crisis.
On Feb. 3, Singapore Prime Minister Goh Tok Chong proposed the
establishment of a multilateral committee to guarantee letters of
credit (L/C) issued by Indonesian banks.
Indonesian importers have complained that their L/Cs were
rejected by foreign banks for fear that the local banks could not
service their commitments.
Van Mierlo, who arrived here Tuesday evening for a three-day
visit, said Dutch commercial banks had also pledged to
participate in order to help settle the Indonesian private
sectors' mounting foreign debts.
The banks participated in a 90-day freeze for foreign loans to
Indonesia's private sector. They had also agreed to roll over the
loans, he said.
"ABN/AMRO (a leading Dutch bank) is very active in Indonesia,
and the Steering Committee of Lender Banks, is working on a
solution for restructuring the private debts."
Van Mierlo is scheduled to meet President Soeharto today.
Last month, the Indonesian government announced a de facto
moratorium for offshore loans made by the country's private
sector, which is estimated to amount to US$73 billion.
About $23.07 billion of the total is owed by private national
companies and the remainder by foreign and joint venture firms.
Government representatives have been asking lender countries
such as Japan to negotiate the rollover of loans.
"To a certain extent, the international financial sector has a
shared responsibility for supplying credit without sufficient
surveillance," van Mierlo said.
The Netherlands has contributed more than $300 million as part
of the $43-billion bailout package arranged by International
Monetary Fund (IMF) to cope with the Indonesian crisis.
"Furthermore, we have emphasized that further study is needed
on ways of achieving more equitable burden-sharing among
international financial institutions, bilateral governments and
commercial creditors," he said, adding that the Dutch government
would follow up on the issue with the IMF.
Touching on the role of the European Union in the recovery of
Southeast Asian economies, he said the union had no institutional
framework to furnish financial support to correct the imbalances
of payment in Asia.
Instead, the European member states channeled their financial
assistance through other institution such as the IMF, the G-7 and
G-10, he said.
But countries in the European Union and Southeast Asian region
could further intensify the exchange of thoughts on how Europe
can assist the governments to overcome the crisis, he said. (das)