City hall asked not to help Bank DKI<\/p>\n
JAKARTA (JP): A non-governmental organization, the Jakarta
\nGovernment Watch (JGW), urged the city administration on Monday
\nto review a planned capital injection of Rp 80 billion (US$8.9
\nmillion) for city-owned Bank DKI before taking any stern actions
\nagainst the bank's bad debtors.<\/p>\n
\"Sutiyoso should postpone the injection of the additional
\ncapital until firm measures are imposed on the bad debtors,\" JGW
\nchairman Amir Hamzah said.<\/p>\n
Without disclosing the amount of the bad debts, Amir argued
\nthat the loan disbursements to debtors were full of nuances of
\ncorruption and collusion.<\/p>\n
He said most of the bank's debtors received the loans without
\npledging sufficient collateral since they were backed by
\nunscrupulous city officials.<\/p>\n
Based on an investigation conducted by the JGW, one of the
\ndebtors owed the bank more than Rp 100 billion for a loan it
\nreceived in 1997 to build a hotel here.<\/p>\n
\"If the administration succeeds in pushing the debtor to pay
\nhis loan, then it will not need to inject more capital into the
\nbank,\" Amir said. He would not disclose the name of the hotel.<\/p>\n
He further said that the hotel owner had suffered losses and
\ncould not repay the loan because he was inexperienced at managing
\nhotels.<\/p>\n
He revealed that JGW had also found that Bank DKI suffered a
\nloss of about Rp 19 billion in the purchase of mutual funds
\ntotaling Rp 27 billion in 1997, which are worth about Rp 8
\nbillion.<\/p>\n
\"Based on the bad loans and the bank's poor performance,
\nSutiyoso should review the plan and improve control over bank
\nmanagement,\" he said.<\/p>\n
Separately, the deputy governor for financial affairs, Fauzie
\nAlvi Yasin, confirmed on Monday that the administration planned
\nto add more capital taken from the 2001 city budget for bank
\nrecapitalization.<\/p>\n
\"It will be carried out by the end of this year at the
\nlatest,\" Fauzie said at City Hall.<\/p>\n
He claimed the injection of Rp 80 billion, which would raise
\nthe bank's paid up capital to Rp 500 billion, was allocated in an
\neffort to help revive the bank, which is under the supervision of
\nthe Indonesian Banking Restructuring Agency (IBRA).<\/p>\n
Fauzie said the administration had made many efforts to help
\nimprove the bank's performance, including hiring professionals
\nfor the bank to handle its bad debts.<\/p>\n
Meanwhile, the administration assistant for development
\naffairs, Ongky Sukasah, said that some debtors had not returned
\ntheir loans.<\/p>\n
\"Of course, we have some unpaid loans. Some of them are
\n'delinquent debtors',\" he said, adding that most loans were
\ndisbursed over the past several years. (jun)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-hall-asked-not-to-help-bank-dki-1447893297",
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