RI seeks to reschedule over $5b in debt
The Jakarta Post, Jakarta
The government is seeking to obtain a rescheduling facility for more than US$5 billion worth of external debts maturing between April 2002 and December 2003 from the Paris Club of creditor nations, according to a senior official at the finance ministry.
Achmad Royadi, head of the Fiscal and Financial Analysis Body, said that the rescheduling would include both debt principal and interest.
"It's more than $5 billion," said Achmad was quoted by detik.com online as saying on Thursday.
Previously, the government had said that it wanted to reschedule some Rp 27 trillion ($2.6 billion) in debt maturing this year to help contain the 2002 state budget deficit at a manageable level of 2.5 percent of gross domestic product (GDP).
The Paris Club is scheduled to convene in April to decide on the Indonesian debt rescheduling proposal.
Earlier on Wednesday, Indonesia received a positive review from the Consultative Group on Indonesia (CGI), another group of the country's main foreign creditors.
As most members of the CGI also sit in the Paris Club of creditors, CGI's positive statement could increase chances of the government securing softer terms and conditions.
However, all good signs will be meaningless if it fails to meet the required economic reforms set by the International Monetary Fund (IMF).
The IMF is now watching the country's progress in implementing economic reforms in various areas, including the privatization program and sales of state assets.
The government is expected to meet the IMF next month to draft a new letter of intent (LoI), which sets various economic reform programs to be carried out by the government.
Another requirement for a successful Paris Club meeting is the completion of the bill on money laundering currently being debated by the House of Representatives.
Bank Indonesia senior deputy governor Anwar Nasution said previously that the government must take serious steps to help fight international terrorism in order to obtain favorable debt rescheduling terms at the Paris Club.