BPK to complete IBRA audit soon<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) is set to complete its audit of
\nthe Indonesian Bank Restructuring Agency (IBRA) within a month,
\naccording to a top official.<\/p>\n
Bambang Wahyudi, a BPK auditors, said on Friday that the BPK
\nhad been conducting the audit since last week.<\/p>\n
The BPK is focussing the audit on the performance of IBRA in
\ncarrying out its mandate of restructuring the country's ailing
\nbanking sector.<\/p>\n
\"We'll look into matters such as whether those ailing banks
\nhave all recovered and whether they'll survive without IBRA in
\nthe future,\" said BPK chief Satrio B. Judono in a recent
\ninterview.<\/p>\n
The government has decided to close down the agency on Feb. 27
\nof this year as planned.<\/p>\n
IBRA was first established in 1998 during the administration
\nof former president B.J Habibie to clean up the banking sector,
\nwhich was saddled with huge debts following the 1998 financial
\ncrisis, and to restore ailing or insolvent banks to health.<\/p>\n
The agency took over a number of ailing banks in the wake of
\nthe late 1990s financial crisis after the government injected a
\nhuge amount of bonds to bail out the banks. IBRA was mandated to
\nrestructure these banks.<\/p>\n
IBRA was first chaired by Glenn Muhammad Yusuf. Three other
\nchairman led the organization before the current chairman
\nSyafruddin Temenggung took over. They were Cacuk Sudarijanto
\n(January 2000 to November 2000), Edwin Gerungan (November 2000 to
\nJune 2001) and I Gede Putu Ary Suta (June 2001 to April 2002).<\/p>\n
Although many of the \"IBRA banks\" have started making profits
\nagain last year, critics say that the agency has largely failed
\nin carrying out its bank restructuring mandate as these profits
\ncame largely from interest revenue paid on the government bonds
\nheld by the banks, rather than from lending operations.<\/p>",
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