Desperate times demand desperate measures. But the decision by politically embattled Indonesian president Abdurrahman Wahid to shore up support by allowing indebted conglomerates to get off the hook could easily backfire.
At issue is a planned “restructuring” of $3.7 billion of debts owed to the Indonesian Bank Restructuring Agency (IBRA), a government body established to clean up the mess left in the wake of the 1997 Asian Financial crisis.
The debts are owed by four top local business groups, including textile maker Texmaco and chemical group Tirtamas and were incurred following the collapse of the rupiah in early 1998.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
