RI seeks bilateral talks with U.S. to settle debt
RI seeks bilateral talks with U.S. to settle debt
JAKARTA (JP): Indonesia is seeking bilateral talks with the
United States government to help solve the country's private-
sector debt problem with American creditors, Indonesian
ambassador to the U.S. Dorodjatun Kuntjorodjakti said on Monday.
Dorodjatun said that although the U.S. ranked only third in
terms of the amount of commercial loans provided to the country,
any debt solution with American creditors would be crucial for
Indonesia to reach a comprehensive settlement to its commercial
overseas debt.
"We believe what the U.S. starts will be followed (by other
countries)," Dorodjatun told reporters at the Bina Graha
presidential office after a meeting with President Abdurrahman
Wahid.
Dorodjatun said Indonesia had US$80 billion in private-sector
external debts, with Japan and Europe being the largest and
second largest creditors.
Dorodjatun said he expected bilateral talks could be held by
end of January next year.
He envisages the bilateral talks would be held by two senior
state officials from both countries. Two fully trusted by
Indonesian debtors and two by American debtors.
"The two officials, acting like arbiters, will negotiate in a
room, maybe for hours, to reach a final and binding solution,"
Dorodjatun said.
He said he had talked with the President and Vice President
Megawati Soekarnoputri, almost all ministers and the private
sector about the plan.
"This is exactly what Gus Dur wants," Dorodjatun said,
referring to the President by his nickname.
Indonesia reached an agreement with European creditors to
settle the country's commercial debt in a meeting in Frankfurt in
June 1998.
Following the agreement, the government set up the Indonesian
Debt Restructuring Agency (INDRA) in August 1998 to facilitate
payment of the country's private sector external debts.
Under the program, debtors joining the scheme must first seek
approval from their lenders to reschedule the debts over eight
years, including a three-year grace period.
Debtors then make monthly installments in rupiah, based on an
INDRA-set conversion rate and INDRA pays the lenders in dollars.
Payment only covers interest during the grace period.
Dorodjatun also said national flag carrier PT Garuda Indonesia
was seeking to lease more aircraft.
He said Garuda remains entitled to further aircraft financing
from the U.S. Export-Import Bank even after borrowings of some
$2.9 billion.
The ambassador quoted Garuda president director Abdul Gani as
saying the airline requires more planes to meet increasing
demand, with Garuda's current load factor at 87 percent.
(jsk/prb)