Singapore, RI to talk trade

Singapore, RI to talk trade

SINGAPORE (Bloomberg): Singapore and Indonesia agreed to resume talks over a Singapore plan to guarantee payment for Indonesian imports, the Straits Times newspaper reported Saturday, citing an unidentified Singapore official.

Goh Chok Tong, Singapore's prime minister, raised the subject earlier this year when Indonesian manufacturers were thwarted from importing raw materials because foreign banks refused to honor letters of credit issued by Indonesian banks.

The two countries last met to discuss the plan in April.

Indonesia is grappling with an economic recession that has seen its currency plunge against the U.S. dollar, interest rates soar and unemployment rise to record levels.