BI to reveal names of problem banks<\/p>\n
JAKARTA (JP): Bank Indonesia, the central bank, will announce
\nthe names of troubled banks.<\/p>\n
But Bank Indonesia's governor, Soedradjad Djiwandono, refused
\nto say when he would announce the names.<\/p>\n
Soedradjad was speaking after meeting President Soeharto.<\/p>\n
He said Monday night that Bank Indonesia was helping problem
\nbanks to consolidate and get into stronger financial positions.<\/p>\n
Bank Indonesia has stakes in several troubled banks like Bank
\nPacific and Bank Uppindo.<\/p>\n
Soedrajad said Bank Indonesia would gradually divest from
\ntroubled banks once they were back on track.<\/p>\n
\"Bank Indonesia's entry into several banks as a shareholder
\nwas only temporary and designed to help salvage those banks,\"
\nSoedradjad said.<\/p>\n
Bank Indonesia owns 51 percent of the ailing Bank Pacific.
\nFormer state oil company Pertamina president, Ibnu Sutowo, and
\nhis family, own the rest.<\/p>\n
The central bank also owns 23.3 percent of Bank Uppindo. The
\nother owners include Bank Asia Pacific (65 percent), Nederlandse
\nFinancierings Maatschappij Voor Ontwikkelingslanden (7.9 percent)
\nand the Asian Development Bank (3.8 percent).<\/p>\n
On Monday night Soedradjad said the central bank would
\ncontinue to take a case-by-case approach to helping troubled
\nbanks.<\/p>\n
\"We believe each of the problem banks have special
\ncharacteristics of their own and face specific problems. Thus, we
\nhave to take a case-by-case approach even though analysts may see
\nthis as discriminatory,\" he said.<\/p>\n
Several analysts have accused the central bank of being
\ninconsistent with regard to its efforts to cope with some problem
\nbanks which are owned by politically well-connected shareholders.<\/p>\n
Collusion<\/p>\n
Meanwhile, sources said several Bank Indonesia supervisors
\nhave been suspended because of their alleged involvement in
\ncovering up problems at troubled banks.<\/p>\n
The sources said three supervisors, who are still being
\ninvestigated, were suspected of colluding with the executives of
\nthe troubled banks they were helping.<\/p>\n
The collusion is said to involve bribes of up to Rp 60 billion
\n(US$24.8 million).<\/p>\n
But Soedradjad refused to answer questions about the suspended
\nbank examiners.<\/p>\n
\"They still work at Bank Indonesia. You don't know how the
\nprocess has been evolving from the beginning,\" he said.<\/p>\n
He denied the three examiners had been sacked but confirmed
\nstaff changes.<\/p>\n
Last year, Bank Indonesia's treasury chief was accused of
\ndefrauding the bank of Rp 7 billion. The case is being tried at a
\nJakarta district court. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-to-reveal-names-of-problem-banks-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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