Business: Japan Expected to Give More Loan Ceiling

VIVAnews - Indonesia has requested for additional

loan ceiling concerning bilateral swap agreement (BSA) with Japan amounting to more than US$6 billion. The amount will be set by next week after Bank Indonesia (BI) holds negotiations.

"We have signed the agreement [on BSA] valuing to US$6 billion. We are demanding more sums. The decision will be by next week," said BI Senior Deputy Governor Miranda S Goeltom on Thursday, Feb 5.

When being confirmed whether or not the BSA may reach US$12 billion, Goeltom refused to unveil the amount. "We will see. I have no rights of informing the amount before [Finance] Minister and [BI] Governor sign the agreement," she said.

Earlier, BI Governor Boediono was seeking the chance to add more foreign exchange from several countries. As for loans from Japan, it is estimated that the negotiations will be completed by late February.

BI Deputy Governor Hartadi Sarwono once revealed that Indonesia was trying to propose for more bilateral loans totaling to US$12 billion: Japan (US$6 billion), China (US$4 billion) and South Korea (US$2 billion).

BSA is a second-line facility that Bank Indonesia has. It means that the additional foreign exchange reserves will be utilized after the available reserves are made use of. For the time being, Bank Indonesia possesses foreign exchange reserves of US$51 billion.

Loans from Japan will be proposed by offering the Rupiah as a guarantee.

Translated by: Bonardo Maulana Wahono

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