Asia Pulp & Paper (APP), the largest debtor in emerging markets, has insisted that a debt-workout deal brokered by an Indonesian government agency will be signed next week despite opposition from some international creditors. Gandhi Sulistyanto, an APP executive, told the South China Morning Post yesterday that progress on the complex workout was for the good of Indonesia's battered economy. Singapore-based APP, which defaulted in March last year on US$13.9 billion in obligations, has struck an interim deal with the Indonesian Bank Restructuring Agency (Ibra) covering US$6.5 billion owed by its main Indonesian subsidiaries. Asia's largest paper-maker outside Japan has the bulk of its operations in Indonesia, whose economy has yet to recover from the financial crisis of the late 1990s. Ibra is trying to recover state funds injected into private businesses during the crisis to save them from collapse. It is owed about US$1 billion by APP's parent company, Sinar Mas Group. A signing ceremony has been set for next Wednesday in Jakarta. APP executives have said that they want all creditors to sign up to its final terms by next May. The signing follows an initial agreement between the Widjaja family-controlled APP and Ibra last September, which was reaffirmed last month. 'The agreement on the 18th will still be signed,' Mr Sulistyanto said. A group of bondholders opposed to the deal offered an alternative plan that would cover all the group's debts, not just its Indonesian obligations. Other APP creditors have also rejected the deal. In Singapore courts, Deutsche Bank sought the replacement of APP's Widjaja-family management by outsiders. Deutsche lost the case in August but is appealing.