Indonesian power dispute may hit loans

  • 29/06/1999

  • Financial Times (London)

A payment dispute between Indonesia's power utility and a host of foreign investors and export credit agencies is turning into a long and bitter court battle that could block future project loans to Jakarta. The export-import banks of the US and Japan, along with government agencies from Australia, Switzerland and China, are preparing a joint mission to Jakarta next month to push the government into intervening in a series of commercial disputes between Perusahan Listrik Negara, the state owner power utility, and investors which have spent more than $5bn building power plants.