BI's art collection under scrutiny<\/p>\n
Rendi A. Witular
\nThe Jakarta Post
\nJakarta<\/p>\n
Is Bank Indonesia, the country's monetary authority,
\ninterested in art?<\/p>\n
According to the Supreme Audit Agency (BPK), the central bank
\nhas an art collection that includes some pieces bought from
\nprestigious auction houses like Christie's and Sotheby's.<\/p>\n
The problem is that the collection is not well managed and
\nmany items may eventually become the property of the bank's
\nleaders, the BPK said.<\/p>\n
BPK's latest report says the central bank spent Rp 6.28
\nbillion (US$748,000) on art in 2002.<\/p>\n
Of the funds, Rp 4.78 billion was spent on paintings, Rp 169
\nmillion on sculptures, Rp 59 million on earthenware jugs and Rp
\n1.26 billion was spent on paintings that have yet to arrive.<\/p>\n
BPK deputy chairman Bambang Wahyudi said the purchase of art
\nwas not only a waste of state money but could also cause losses
\nto the state, as under the internal ruling of the bank, BI's
\nleaders could eventually take over ownership of the art at a low
\nprice.<\/p>\n
The artwork was bought mostly to decorate the rooms of the
\ncentral bank's leaders.<\/p>\n
"This is a problem because in this case BI has failed to
\ncomply with efficiency rules. Besides, BI does not have a
\nregulation to ensure that the assets are be well managed," said
\nBambang to the press on Friday.<\/p>\n
He also said that the agency was considering investigating the
\nmatter.<\/p>\n
The BPK report does not specify the art items bought by the
\ncentral bank, but it says the items were categorized as
\n"inventory" rather than "assets".<\/p>\n
By categorizing them as inventory, the central bank treats
\nthem similar to other inventory goods, such as cars and
\nfurniture, the value of which decreases with time and can be
\nauctioned off to the bank's employees in the future at low
\nprices.<\/p>\n
Under the internal rulings of the central bank, members of the
\nits board of governors have the right to buy the art items when
\nthey retire at between 3.12 percent and 50 percent of the
\noriginal prices, depending on the board member's tenure.<\/p>\n
The BPK insists that the art pieces should be classified as
\nassets rather than inventory as their value will increase over
\ntime rather than decrease.<\/p>\n
In its report, the BPK also voiced concern that the central
\nbank had failed to list some of the art items in its inventory,
\nwhich could lead to suspicions that the art has mysteriously been
\nlost.<\/p>\n
The BPK has called BI's 2002 balance sheet "satisfactory, but
\nwith some exceptions", particularly because of the alleged misuse
\nof Rp 20.9 trillion in state funds deposited in government
\naccount number 502.<\/p>\n
The 502 funds were originally allocated to cover the financial
\nobligations of closed banks as part of the government's blanket
\nguarantee program.<\/p>\n
However, the central bank has insisted there are no
\nirregularities in the use of the 502 funds.<\/p>\n
The government and the House of Representatives are in the
\nprocess of amending Law No. 23\/1999 on the independence of the
\ncentral bank to give room for an independent supervisory board to
\nensure BI's accountability.<\/p>\n
However, the amendment faces a setback, as the government and
\nBI continue to disagree on the matter, forcing the House to
\nextend the timetable for the deliberations on bill, which have
\nbeen going on for three years.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bis-art-collection-under-scrutiny-1447899208",
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