BI vows to solve Bank Arta Prima problem<\/p>\n
JAKARTA (JP): Bank Indonesia Governor Soedradjad Djiwandono
\nhas vowed to solve all banking problems, including the recent
\nBank Arta Prima problem.<\/p>\n
But he said not all banking problems could be solved quickly.<\/p>\n
\"Many will take a relatively long time to solve,\" he said
\nafter attending a ceremony to celebrate noted economist Sumitro
\nDjojohadikusumo's 80th birthday here Friday night.<\/p>\n
Soedradjad said the central bank would need time to solve the
\nBank Arta Prima problem. \"We have to check its management, assets
\nand shareholders, and this will surely take time,\" he said.<\/p>\n
The problem, a promissory notes scam, came to light when the
\nwidely diversified Artha Graha group bought the bank on May 17
\nfrom PT Jagata Primabumi, which bought it from Gunung Agung
\nGroup.<\/p>\n
Reports say that the Artha Graha group bought the bank through
\nBank Indonesia which had taken it over from PT Jagata Primabumi
\nbecause of the promissory notes scam.<\/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.<\/p>\n
PT Jagata asked Gunung Agung to issue promissory notes
\n(promes) worth Rp 324 billion to settle the debts.<\/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 promissory notes worth Rp 324
\nbillion (US$94.3 million) although they were all underwritten by
\nthe 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
Soedradjad said that as long as he was still governor, he
\nwould make an all out effort to solve all problems facing the
\nIndonesian banking industry.<\/p>\n
He complained that many people criticized the central bank
\nwithout supporting facts.<\/p>\n
\"But there are many people who have confidence in the central
\nbank. In fact, our banking conditions are better now than four
\nyears ago,\" he said.<\/p>\n
Soedradjad, who is Soemitro's son-in-law, made a brief speech
\nat the birthday party on behalf of family members.<\/p>\n
Soemitro's birthday was on May 29. The party was postponed
\ndue to the general election.<\/p>\n
The party was attended by about 200 people, including cultural
\nobserver Mochtar Loebis, former ministers of mines and energy
\nMohammad Sadli and Soebroto, economic adviser to the government,
\nWidjojo Nitisastro, and a number of presidents of state-owned
\nbanks. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bi-vows-to-solve-bank-arta-prima-problem-1447893297",
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"sponsor": "Okusi Associates",
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