Kwik says govt seeks refinance, reschedule for foreign debt

Kwik says govt seeks refinance, reschedule for foreign debt

JAKARTA (JP): The government is seeking to refinance and
reschedule its foreign debt but will not ask for any debt relief,
according to Coordinating Minister for Economy, Finance and
Industry Kwik Kian Gie.

Kwik said on Monday that the government was "exploring all
possible options" to manage its external debt, including through
new financing and rescheduling within existing international
rules.

"No debt reductions are being sought. Consistent with the
polices of the new government, discussions with external
creditors will be conducted in a transparent manner," Kwik said
in a media statement.

Kwik explained that the government was putting together a
comprehensive economic policy package in consultation with the
international financial institutions to deal with the current
economic situation and support sustained recovery.

An International Monetary Fund technical team is in Jakarta
and is discussing the country's economic programs with government
officials.

Indonesia's overseas debts total more than US$150 billion, of
which more than $75 billion is sovereign debt.

The government is seeking to reschedule up to $6 billion in
overseas debt maturing in the next two fiscal years with Paris
Club creditor nations.

Several leading Indonesian non-governmental organizations
recently insisted creditor institutions provide the country with
debt relief on the grounds that much of the debts had been
subject to corruption by the previous government of former
president Soeharto.

But the World Bank has said that Indonesia is not eligible to
any debt relief because the country had not fallen into the ranks
of poor nations.

Reports also claim that the Japanese government will not
provide any debt relief to Indonesia because Japanese law
prohibits such a measure.

President Abdurrahman Wahid is visiting Tokyo to meet with
Japan's top officials. Abdurrahman will be in Tokyo until
Thursday.(rei)