National

Government Is to Decide Debt Rescheduling in 2006
Thursday, 22 December, 2005 | 23:06 WIB

TEMPO Interactive, Jakarta:The Indonesian government is yet to decide on debt rescheduling in 2006 although the debts which fall within this period are quite considerable. There will be re-profiling (lengthening the time of payment) on the finance minister’s decision.

The Indonesian Director General of the State Treasury Department Mulia Nasution made this statement at the Finance Department in Jakarta on Wednesday (21/12).

"The finance minister has decided on debt management strategy, that in order to lessen the burden of our debts, we should carry out re-profiling,” stated Nasution.

The government, he said, would be more selective in matters related to foreign financing. “We will try to obtain soft loans. We will selectively determined activities financed by foreign loans,” stated Nasution.

Previously, National Development Planning Agency Head Paskah Suzeta said that to lessen the high burden of foreign debts, he would lobby the Paris Club creditor countries members to carry out re-scheduling.

Nasution added that to carry out debt rescheduling, the Indonesian finance department would discuss this matter with related institutions. “We will coordinate this matter. We are a team led by Coordinating Minister for the Economy. We hope that there will be no difference between the National Development Planning Agency, the Minister of Finance and other institutions in using strategy to lessen the debts,” said Nasution.

In 2006, the debts that must be paid by the government will reach Rp160 trillion. In order to lessen the burden, the government will exchange debts amounting to Rp1.2 trillion. (Suryani Ika Sari-Tempo News Room)