Kadin delegation leaves for Japan

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)