Devious Conglomerate Debtors

Respondents to TEMPO’s polling feel the conglomerates no longer need to be regarded as pillars of the Indonesian economy.

February 5, 2002

THE conglomerates are a pampered lot. They’re allowed to borrow trillions of rupiah from the government and then allowed to default when payment is due. The government is unable to make them repay the loans, takes no action against defaulters and continues to give them easy terms. In December 2001, the government announced it was extending the deadline for debt repayment, from the original four years to 10.

The reasoning behind the decisio

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