REI seeking alternatives in dealing with debt problem
REI seeking alternatives in dealing with debt problem
JAKARTA (JP): Real Estate Indonesia (REI), an association of property developers, is planning to seek a solution to its members' debt problems during its national congress next week.
REI chairman Edwin Kawilarang said here on Thursday that finding a way to deal with the association's debt problem would be the main agenda during the congress, to be held in Jakarta from Nov. 23 to Nov. 25.
He said that the property industry, the sector that was hardest hit by the country's economic crisis, should be able to come up with an appropriate and realistic solution in dealing with the mounting debt problem. Otherwise, it will left behind by other industrial sectors in the next millennium, he added.
Edwin said that the congress would also propose to change the status of the organization into a federation, to make it more flexible and effective in helping its members.
"We have been considering making the move over the past several years. In nearly every congress we have been talking about making the change, but we still face several problems in changing the REI status," he told reporters in a press conference.
To handle the REI debt problem, the congress would put forth a number of proposals to help its members negotiate with their creditors.
For example, REI will request that the government serve as a mediator to help negotiate debt problems with creditors, said Edwin.
"Under this proposal, the government will help evaluate debtor performance and give information to creditors. This is because we need a referee," he said.
He said that he hoped the association's proposals would complement the Jakarta Initiative program, a domestic debt settlement scheme introduced by the government in September.
Earlier this month, Edwin said that the property sector's debts, including foreign debts, totaled Rp 70 trillion (US$9.3 billion) as of May of this year.
Because of the rupiah's sharp depreciation and the punitively high interest rates that resulted from the government's tight money policy as it attempted to cope with high inflationary pressures, the property industry has been hit harder than most other industries by the economic crisis. (29)