Bank Arta Prima needs proper handling: House<\/p>\n
JAKARTA (JP): Legislators warned the government yesterday to
\nbe careful how it settled the ailing Bank Arta Prima problem
\nbecause mishandling could have a political impact that could
\naffect the whole banking industry.<\/p>\n
Efforts to rescue Bank Arta Prima have been complicated by
\nwhat analysts say was an alleged promissory notes scam related to
\nthe bank.<\/p>\n
Moreover, the Gunung Agung group is now trying to get the bank
\nback from the Artha Graha group.<\/p>\n
Deputy chairman of the House of Representatives' Armed Forces
\nfaction, Andaja Lestari, was quoted by Antara as saying yesterday
\nthat the government and Bank Indonesia should keep political
\ninterests out of the issue.<\/p>\n
A Golkar faction House member, Bomer Pasaribu, shared
\nLestari's concern, saying that how the Bank Arta Prima problem
\nwas solved would affect the credibility of Bank Indonesia as
\nguardian of the banking industry.<\/p>\n
The alleged promissory notes scam came to light when the
\nwidely diversified Artha Graha group bought Bank Arta Prima on
\nMay 17 from PT Jagata Primabumi, which had bought it from the
\nGunung Agung group.<\/p>\n
Reports say the Artha Graha group bought the bank through Bank
\nIndonesia which had taken it over from PT Jagata Primabumi
\nbecause of a promissory notes scandal.<\/p>\n
When buying Bank Arta Prima from Gunung Agung, PT Jagata had
\nagreed to take over Gunung Agung's debts to the bank of Rp 187
\nbillion and to other financial institutions of Rp 177 billion,
\nreports said.<\/p>\n
The debts<\/p>\n
PT Jagata asked Gunung Agung to issue promissory notes
\n(promes) worth Rp 324 billion (US$94.3 million) to settle the
\ndebts.<\/p>\n
Jagata failed to settle the promes.<\/p>\n
The Artha Graha group promised to inject fresh funds into the
\nbank but refused to take over the Rp 324-billion promes although
\nthey were all underwritten by the bank.<\/p>\n
Six businessmen were arrested recently by police for the scam.
\nThey included Made Oka Masagung, a former Gunung Agung majority
\nshareholder, Kim Johannes Mulia, from PT Jagata, and former
\ndirectors and commissioners of Bank Arta Prima.<\/p>\n
Gunung Agung, the original owner, is now trying to regain the
\nbank.<\/p>\n
Last week it began suing PT Jagata for US$612 million over the
\npurchase agreement for the debt-ridden bank and demanded the
\ncourt return the bank to it because PT Jagata had breached their
\ncontract of sale.<\/p>\n
The Gunung Agung group, founded by the late H. Masagung in
\n1953, was taken over by PT Kosgoro and PT Trimuda in 1994 when it
\nran into financial trouble which later forced it to sell the
\nbank. Kosgoro currently controls 80 percent of Gunung Agung.<\/p>\n
According to banking sources, efforts to resolve the problem
\nwere underway with the help of Hayono Isman, state minister of
\nyouth affairs and sports, who is also a senior Kosgoro executive.<\/p>\n
Gunung Agung's president, Lego Nirwhono, had reportedly
\ninvited an Artha Graha group shareholder, Tommy Winata, to
\ndiscuss Bank Arta Prima's transfer to Gunung Agung Investment, a
\nunit of the Gunung Agung group.<\/p>\n
Tommy reportedly rejected the invitation. (pwn)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bank-arta-prima-needs-proper-handling-house-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }