Japan traders to back RI

Japan traders to back RI

TOKYO (Nikkei): Major Japanese trading houses plan to shore up
operations in Indonesia, where their joint ventures with local
concerns are experiencing difficulties raising funds due to
disorder on local financial markets and reluctance by European
and U.S. financial institutions to extend loans, the Nihon Keizai
Shimbun reported in its Saturday morning edition.

The trading houses believe that Indonesia's economy will
stabilize gradually, as new President B.J. Habibie has drawn up
political and economic reform policies.

Marubeni Corp has provided US$150 million to PT Chandra Asri,
its petrochemical complex joint venture with a local company. The
funds are advances for the purchase of three to four months worth
of Chandra Asri products to be delivered to Marubeni. The company
plans to export the products to other Asian countries, while
Chandra Asri will use the funds to repay borrowings.

Nissho Iwai Corp has started negotiating with the Tirtamas
group on a postponement of loan repayments. The Japanese company
extended Y15.4 billion in loans to the Tirtamas group for
construction of a chemical product plant. The Tirtamas group has
requested a delay in repayments.