For hundreds of Indonesian companies, the framework provides a three-year period in which they would only pay interest on their loans.

Megatech is an Indonesian company that pursued the development of various supercars.

From 1990 to 2010, Indonesian companies have been involved in 3,757 mergers and acquisitions as either acquiror or target with a total known value of $137bn.

The weakness of the rupiah makes it far more difficult for Indonesian companies to pay back the loans.

As a result, interest rates have soared to levels that have devastated Indonesian companies and their creditor domestic banks.

But he said the basic issues had not changed: Indonesian companies have about $80 billion in foreign debts that they are having difficulty paying.

At least half a dozen international banks and brokerage firms have lost money on similar dealings with Indonesian companies, executives said.

The process established will essentially allow overly indebted Indonesian companies to negotiate as a group with creditors.

He estimated that 228 Indonesian companies were unable to service their debts.

Indonesian companies were given quotas for how many of Tommy's Timors they might find it a good idea to buy.