ID :
17253
Thu, 08/28/2008 - 11:19
Auther :
Shortlink :
http://m.oananews.org//node/17253
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CLEAN-WATER COMPANIES' DEBT RESTRUCTURIZATION TO BE EVALUATED ON SEMESTRAL BASIS
Jakarta, Aug 27 (ANTARA) - The government will conduct semestral evaluations of the restructurization of local clean water companies (PDAM)'s debts to ensure the program is carried out according to good financial management principles, a minister said.
"There must be a review every six months which means that in January 2009, I will get a report from my director general on what has happened, which PDAMs have made progress and which ones have not," Finance Minister Sri Mulyani Indrawati said here Wednesday.
She called on local governments not to misinterpret the ministry's regulation on PDAM debt restructurization.
"It should not be misinterpreted that under the scheme, I am rewarding badly performing PDAMs and ignoring well performing ones," she said.
As per June 30, 2008, 175 clean water companies in Indonesia had a backlog of debts totaling Rp4.65 trillion made up of Rp1.5 trillion in principal and Rp3.1 trillion in non-principal debt.
The debt restructurization would be conducted through a debt-to- investment scheme or write-offs of non-principal debt.
The minister dismissed criticism that the scheme would reward poorly performing companies, saying she would evaluate whether the restructurization program was encouraging problematic companies to improve their capability to invest.
"We will reward well-performing companies by giving them greater Special Allocation Fund (DAK) amounts," the minister said.
Meanwhile, the chairman of the Association of Indonesian Drinking Water Companies (Perpamsi), Achmad Mardju Kodri, said the PDAMs' debt backlog of Rp4.65 trillion consisted of carry-overs from the companies' managements in the economic crisis in 1997.
The debt restructurization program would allow PDAMs to focus on development of the drinking water industry and expand their businesses optimally.
"The debt restructurization program will help PDAMs to reach the target of 10 million clean water pipe connections over the next three years," he said.
"There must be a review every six months which means that in January 2009, I will get a report from my director general on what has happened, which PDAMs have made progress and which ones have not," Finance Minister Sri Mulyani Indrawati said here Wednesday.
She called on local governments not to misinterpret the ministry's regulation on PDAM debt restructurization.
"It should not be misinterpreted that under the scheme, I am rewarding badly performing PDAMs and ignoring well performing ones," she said.
As per June 30, 2008, 175 clean water companies in Indonesia had a backlog of debts totaling Rp4.65 trillion made up of Rp1.5 trillion in principal and Rp3.1 trillion in non-principal debt.
The debt restructurization would be conducted through a debt-to- investment scheme or write-offs of non-principal debt.
The minister dismissed criticism that the scheme would reward poorly performing companies, saying she would evaluate whether the restructurization program was encouraging problematic companies to improve their capability to invest.
"We will reward well-performing companies by giving them greater Special Allocation Fund (DAK) amounts," the minister said.
Meanwhile, the chairman of the Association of Indonesian Drinking Water Companies (Perpamsi), Achmad Mardju Kodri, said the PDAMs' debt backlog of Rp4.65 trillion consisted of carry-overs from the companies' managements in the economic crisis in 1997.
The debt restructurization program would allow PDAMs to focus on development of the drinking water industry and expand their businesses optimally.
"The debt restructurization program will help PDAMs to reach the target of 10 million clean water pipe connections over the next three years," he said.
