INDONESIAN DEBT SERVICE RATIO PEAKS, MINISTER SAYS
Indonesia expects the recent years'
rise in its debt service ratio to peak at the current level of
41 pct, Development Supervision Minister Ali Wardhana told
journalists.
    He was speaking at a news conference following a two day
annual meeting of aid donors grouped in the Inter-Governmental
Group on Indonesia (IGGI) in which 3.15 billion dlrs in fresh
funds were pledged for the coming year.
    "The current debt service ratio of 41 pct will be the top,"
Wardhana said, noting the debt service ratio rose to that level
from 37 pct last year. Indonesia's debt totals 37 billion dlrs.
    "The current debt burden will be manageable if concessionary
loans can be attracted," he said.
    He said international organisations such as the World Bank
pledged an unchanged 1.68 billion dlrs in fresh funds to
Indonesia and this year's overall total, up from last year's
2.6 billion, reflected higher pledges from donor countries.
    He said Japan raised its pledge to 88 billion yen from 80
billion last year. Britain almost trebled its contribution to
130 mln stg from 45 mln. The United States raised its
contribution to 190 mln dlrs from 86 mln and the Netherlands
raised its figure to 232 mln guilders from 180 mln.
    Commenting on the increase in funds pledged to Indonesia,
which has been hard hit in export revenue due to the oil price
collapse, Wardhana said, "I am happily surprised, but in view of
the seriousness of the balance of payments situation the amount
is what we needed to cope."
    He noted donors pledged to increase local cost financing as
part of the aid package. Some 900 mln dlrs of the package will
be for programme aid or local cost financing, Indonesian
Central Bank Governor Arifin Siregar said.
    Trade Minister Rachmat Saleh said Indonesia will continue
to reform the economy and bring about further liberalisations.
    "Indonesia has undertaken reforms to meet external problems,"
Saleh said. "It's a good thing and we will continue with
deregulation in trade, industry and licensing of new
businesses."
    Asked whether the question of private capital exports from
Indonesia was discussed, central bank governor Arifin Siregar
expressed confidence that any drain of capital abroad would
only be temporary.
    He noted there had been a turnaround in a recent fall in
foreign exchange reserves three days ago.
 REUTER
