Indonesia vows to settle OPIC's claim
Saturday, March 11 2000 - 04:00 AM WIB
Indonesia is seeking to negotiate with U.S. Overseas Private Investment Corporation (OPIC) over the claim it paid to Calenergy International, according to State Minister of Investment and State Enterprises Laksamana Sukardi.
"Indonesia will solve the case through negotiations," Laksamana told reporters on the margins of an investment seminar.
Laksamana made the statement following earlier comments by Minister of Finance Bambang Sudibyo that the government had no money to pay the claim. This has caused jitters among foreign investors.
Bambang said that Indonesia would not reimburse OPIC for the US$290 million it paid to Calenergy last November.
The claim was made after state electricity company PLN failed to pay Calenergy a sum awarded to the latter by an independent arbitration panel.
But Laksamana didn't specify how the government plans to pay the claim.
"The most important thing is that the government would negotiate in line with our commitment to honor contracts," he said. (*)