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.