Perumnas seeks Rp 100b loan

JAKARTA (JP): State-owned housing developer Perum Perumnas is seeking a Rp 100 billion (US$14.7 million) loan from the Ministry of Finance to beef up its working capital, Antara reported on Friday.

The loan would be used to build low-cost housing, Perumnas president Soeroto Martomidjojo told the news agency.

The company has also requested the government to cut interest rates charged on some Rp 345 billion loans from two state-run banks, BTN and Bank Exim.

He said Perumnas would be unable to pay the current commercial interest rates on these loans, adding that the government was expected to approve the request.

According to the last audited figure available, Perumnas had an outstanding debt of Rp 824 billion at the end of 1997.

Soeroto pledged to meet all Perumnas debt obligations.

He said that in spite of the financial crisis, Perumnas would continue to retain its role in building low-cost housing.

"Perumnas has proven its ability by providing about 500,000 small houses." (02)