INDRA sets rupiah at 7,589

JAKARTA (JP): The Indonesian Debt Restructuring Agency (INDRA) has set the dollar purchase price at Rp 7,589 for indebted companies joining the agency's program in January.

INDRA chairman Sumitro said the rate for January was based on the best dollar-rupiah moving exchange rate for December and a monthly inflation rate in the same month of 1.42 percent.

Since its inception in August, INDRA has offered an improving exchange rate: from Rp 13,233 in August to 12,314 in September, 11,216 in October, 8,501 in November, 7,931 in December and 7,589 in January.

Companies joining the INDRA program repay their dollar- denominated debts to the agency in rupiah, which then pays international creditors in dollars.

Debtors joining the INDRA program must first gain the approval of their creditors to reschedule debts over an eight-year period, including a three-year period of grace. (rid)