The United States and Indonesia have agreed to reschedule nearly 500 million US dollars in debt owed by Indonesia and due to mature shortly. Indonesia is also expected to sign a similar agreement with Germany worth over 101 million dollars.

The rescheduled US debt comprises 304-million dollars in mostly commercial debt and 181-million dollars in official development assistance debt which is primarily in the form of food aid.

Under the rescheduling deal signed Monday by Indonesia's Finance Minister Budiono and US ambassador Ralph Boyce, the commercial debt will be repaid in half-yearly instalments between December 2008 and 2021.