No credit, no food for Indonesia

27 April 1998

No credit, no food for Indonesia

INDONESIA is experiencing a credit problem which means there is no liquidity to buy imports – including urgently-needed agricultural products.

The Berne Union, a body representing long-term credit insurers from 46 countries, expects economic conditions in south-east Asia will continue to be difficult for the next year. But Indonesia was finding special problems.

It was finding it difficult to get short-term finance from credit insurers. Earlier this year, NCM, the Anglo-Dutch insurer, suspended cover.

The country needed to import 4 million tonnes of rice this year to feed its people.

• Financial Times 27/04/98 page 3