Kadin delegation leaves for Japan

JAKARTA (JP): An Indonesian Chamber of Commerce and Industry (Kadin) delegation, led by its chairman Aburizal Bakrie, is leaving for Tokyo today to discuss the country's corporate foreign debt problem.

After a meeting with Japan's ambassador to Indonesia yesterday, Aburizal said the delegation would meet key officials of the Keidanren, Kadin's Japanese counterpart, to explain Indonesia's current condition and its future prospects.

"Discussions will also focus on the corporate foreign loans," Aburizal told state news agency Antara.

Japan has been Indonesia's largest creditor and investor.

The Indonesian delegation consists of 16 businessmen who have loans with Japanese banks. They include A. Baramuli, The Nin King, Rachmat Gobel and James Riady.

Aburizal said the delegation would try to convince Japanese businesspeople that Indonesia would remain an attractive place to invest.

Private Indonesian companies account for US$23.07 billion of the $73.96 billion in foreign debts owed by the country's private sector. The remainder is owed by foreign companies and joint venture firms.

Private foreign debts have been blamed for causing the rupiah to plunge as low as Rp 17,000 to the dollar in January, compared to the precrisis level of Rp 2,450 in July last year. The rupiah was about Rp 10,000 per dollar yesterday.

To prevent further pressure on the dollar, Indonesia announced a temporary freeze on debt repayments.

Radius Prawiro, chairman of the Corporate Foreign Debt Settlement Team, asked Indonesian debtors to form a "contact committee" and make new arrangements with the creditors' steering committee.

Japan has officially assigned Bank of Tokyo-Mitsubishi and Sanwa Bank as the representatives of Japanese creditors in the steering committee.

"We will find ways so that the corporate foreign debt problem with Japanese banks can be solved in a win-win situation," Aburizal said.

However, he admitted that the Tokyo visit would not include the signing of a contract to roll over Indonesian corporate foreign debts.

Baramuli said the visit was important because if the debt problem could be solved, the rupiah would regain a stable exchange rate. (08)