Andromeda may challenge bank closure in court<\/p>\n
JAKARTA (JP): Bank Andromeda's owners may challenge Minister
\nof Finance Mar'ie Muhammad's decision to shut the bank in the
\nJakarta Administrative Court, shareholder Bambang Trihatmodjo
\nsaid yesterday.<\/p>\n
Bambang, one of President Soeharto's sons, said the
\ngovernment's decision to close down the bank had come as a
\nsurprise.<\/p>\n
He questioned the decision because he said the bank's only
\nviolation was the legal lending limit requirement.<\/p>\n
Bank Andromeda executives acknowledged that they had violated
\nthe legal lending limit by providing loans totaling US$75 million
\nto some of its shareholders. Bambang claimed that as far as the
\nlegal lending limit requirement was concerned, 90 percent of
\nIndonesian banks had already violated it.<\/p>\n
\"The closure of the bank concerns my credibility as well as
\nthat of other shareholders,\" he said.<\/p>\n
Bambang heads the giant holding company Bimantara Group which
\nowns 25 percent of the bank.<\/p>\n
\"If possible I will take legal steps at the State
\nAdministrative Court against the Minister of Finance,\" he said.<\/p>\n
Separately, the owner of Bank Jakarta, Probosutedjo, was also
\nfuming at the government's decision to liquidate his bank. He
\nsaid he would not sign the liquidation reports.<\/p>\n
Probosutedjo, one of Soeharto's half brothers, said the
\nclosure of 16 private banks over the weekend and the travel ban
\nimposed on the owners of the banks were serious violations of
\nhuman rights.<\/p>\n
The government announced Saturday that 16 banks would be
\nliquidated following the International Monetary Fund's US$23
\nbillion economic rescue package announcement.<\/p>\n
Bank Indonesia Governor J. Soedrajad Djiwandono said during
\nthe closure announcement that the financial conditions and
\nbusiness development of the banks in question were unhealthy.<\/p>\n
Speaking during a break of a People's Consultative Assembly
\nsession here yesterday, Bambang said Bank Andromeda could be
\nrescued and the government should have let it recover.<\/p>\n
\"If Mar'ie is willing, we can save the bank,\" Bambang
\nclaimed.<\/p>\n
Andromeda spokesman Pieter Gontha claimed Sunday that the bank
\nhad proposed to Bank Indonesia a last minute plan to inject Rp
\n350 billion ($100 million) into the bank, but the proposal was
\nrejected.<\/p>\n
Speaking at his business headquarters yesterday, Probosutedjo
\nsaid Bank Indonesia had made mistakes in its audit of Bank
\nJakarta which he claimed was very sound and healthy in terms of
\ncash flow.<\/p>\n
He said that as of last August, Bank Jakarta was considered
\nhealthy with a ratio of capital to assets of 9.45 percent, higher
\nthan the 8 percent required by the government.<\/p>\n
He admitted that his bank had some bad debts but argued that
\nthis was caused by small businesses failing to repay debts.<\/p>\n
\"The small entrepreneurs, mostly indigenous people, were not
\nable to compete with capital-intensive entrepreneurs,\"
\nProbosutedjo, owner of the Mercu Buana Group, said.<\/p>\n
Probosutedjo was also fuming at reports that owners of the
\nbank were banned from traveling abroad.<\/p>\n
\"This is truly an insult, as if the owners of the liquidated
\nbanks had committed subversive crimes,\" he said.<\/p>\n
Immigration authorities officially banned yesterday 60
\ndirectors and owners of closed banks from traveling abroad.<\/p>\n
A government regulation on bank liquidation, issued Dec. 23,
\nstipulates that members of boards of commissioners and directors
\nmay not quit their positions without the central bank's consent.<\/p>\n
They are required to stand ready to provide information to a
\nliquidation team, appointed by Bank Indonesia.<\/p>\n
The regulation also rules that whenever a bank is liquidated,
\ndepositors will be paid after the liquidation team pays all
\nsalaries owed, court fees, auction fees, taxes and administrative
\ncosts.<\/p>\n
Both Bambang and Probosutedjo assured depositors that they
\nwould not lose their money.<\/p>\n
Probosutedjo said that the Mercu Buana Group managed Le
\nMeridien Hotel in Jakarta, valued at Rp 350 billion, a number of
\nproperty projects, valued at Rp 540 billion, a cocoa plantation
\nin North Sumatra, worth Rp 40 billion, and other projects.
\n(08\/prb\/icn\/amd)b<\/p>\n
Calm -- Page 3<\/p>\n
Editorial -- Page 4<\/p>\n
Economist -- Page 12<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/andromeda-may-challenge-bank-closure-in-court-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }