MPs seek debt payment to Germany dropped

The Jakarta Post   |  Wed, 12/03/2008 8:30 PM  |  National

Some House of Representatives members are seeking support from fellow lawmakers in their move to cancel the Indonesian government's payment of a huge debt to Germany.

Indonesia had in 1996 repaid a debt of some US$560 million (Rp 7 trillion) in connection to the purchase of 39 used warships from Germany in 1992-1994.

Lawmaker Djoko Susilo on Wednesday said at least 15 members of House Commission I for defense and foreign affairs supported a recommendation to cancel the debt repayments.

Support would increase with legislators from House factions, Djoko added.

"We will probably set up a House working committee on this issue. We want this matter resolved more quickly," Djoko said.

A recommendation would be delivered to the Finance Ministry for further discussion, he added.

"It was too good for then president Soeharto to repay the debt too quickly, since foreign loans are usually paid back over 10 years or more," Djoko argued.

"An international agreement clause can be annulled if it is not approved by parliament. We (the House) never endorsed the purchase of the German warships."
 
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Iain (not verified) — Thu, 12/04/2008 - 4:32am

This makes no sense. How is it Indonesia decides whether the debt should be paid. It's up to Germany.

If you can't pay your debt, then stop buying Russian fighter jets and submarines.

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