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)