A long, strange trip<\/p>\n
Ever since the Indonesian Bank Restructuring Agency (IBRA)
\narranged to restructure the debts of a number of large Indonesian
\ncompanies such as Texmaco, Tirtamas and Chandra Asri, some
\nanalysts and vested interest groups have expressed
\ndisappointment, even dismay, at the final outcome. Instead of
\nappreciating, if not applauding IBRA, FSPC and the government for
\nwhat appears to be the best under the worst circumstances, they
\ncriticize them for criticism's sake. This will only contribute to
\ncynicism, negativism and pessimism in an economic environment
\nwhich begs for optimism and a positive attitude.<\/p>\n
In the detailed and most complicated debt restructuring
\nundertaken by IBRA from the above cases, they appear to have done
\neverything possible, feasible and necessary. Legal scrutiny, due
\ndiligence reports by international agencies, no debt reduction,
\nno employment reduction, ownership majority and control,
\nmanagement control, financial and budget control are all in
\nplace.<\/p>\n
This appears to be far superior in content, form, process and
\nprocedure than anything done in the past, including the Master
\nSettlement and Acquisition Agreement (MSAA) involving trillions
\nof rupiah from well-to-do conglomerates. These agreements also
\nstand out because they are far better placed in terms of
\ngovernmental advantage -- present and future -- compared to such
\nagreements in the U.S., Japan, Korea, Malaysia and Thailand. In
\nsimilar cases here, loans were simply written off (e.g. Kumagal
\nGumi Co. in Japan) or the company itself was liquidated (e.g.
\nSogo), with the government bearing the entire cost.<\/p>\n
I think it is time that we in Indonesia allow the government
\nand its agencies to perform their jobs at the fastest pace
\npossible, with only objective feedback coming from the analysts
\nand interested quarters. Subjective criticism and over-reactive
\nstatements will have the inevitable effect of paralyzing their
\nwork.<\/p>\n
Indonesia has traveled 40 months into the crisis and even at
\nthis stage, if we tend to politicize everything, we may end up
\nnowhere. Our analysts\/economists also should compare events in
\nour neighboring countries, not excluding India and China, as to
\nwhat they have done and are doing with such loan restructurings.
\nIt would even be worthwhile for a team of economists, editors and
\nanalysts, and even politicians like Mr. Laksamana Sukardi and Mr.
\nKwik Kian Gie, to visit some of our neighboring countries such as
\nKorea, Japan and Malaysia to see for themselves what is happening
\nthere in resolving such loan restructurings, which will help us
\nto devise more appropriate and acceptable formulas here. A
\njourney toward light is definitely better than staying in
\ndarkness. Let us travel together.<\/p>\n
S.S. ABDUL KHADER<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/a-long-strange-trip-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }