Indonesia given more time to pay back debt

The Danish Ambassador to Indonesia, Mr. Geert A. Andersen and Mr. Anshari Ritongga, Director General of Budget, Ministry of Finance have signed an agreement between the two countries on rescheduling of Indonesia’s debt to Denmark. The signing of the agreement took place on February 5th 2003 in Jakarta.
     The total amount being rescheduled is approximately USD 30,8 mill, consisting of USD 2,8 mill of soft loans and USD 28 mill of commercial credits, according to a press release issued by the Royal Danish Embassy.
     The Danish Government has agreed to reschedule 100% of the amounts of
principal due from April 1st, 2002 up to December 31, 2003.
     “This arrangement is a very clear indication of Denmark’s continued strong support of Indonesia’s democracy and the political and economic reforms that are under way,” says Mr. Geert A. Andersen.
     “Denmark is a significant contributor to multilateral aid organisations, and the bulk of our assistance to Indonesia is being channelled through the multilateral system. But Denmark is also providing bilateral support in the form of grants, and during the past years we have progressively increased our support for projects promoting respect of human rights, good governance and democratisation.”
     “It is our intention to continue the expansion of funding for these kind of projects,” the ambassador adds.
     The Danish Government also provides soft loans to finance projects aiming to promote sustainable development through poverty-oriented economic growth. Several of these projects are about to be implemented. Among others an aquaculture project in Sinjai and Mentawai and a fish processing project in Buton. Also in the pipeline are projects within the energy sector: small diesel power plants for the Eastern part of Indonesia, which the Ambassador hoped would take off during 2003.
     For further information, please contact the Danish Embassy, telephone (021) 576.1478, fax (021) 576.1535, e-mail: jktamb@um.dk.

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