Dragon still has chance to open branch office<\/p>\n
JAKARTA (JP): Vanuatu-based Dragon Bank International still
\nhas the opportunity to open its representative office here
\ndespite the revocation of its investment permit by the Investment
\nCoordinating Board (BKPM) last week.<\/p>\n
The Ministry of Finance's Director General for Financial
\nInstitutions Bambang Subianto said here yesterday that Dragon
\nBank is still welcome to make a new application.<\/p>\n
"Just do it according to existing procedures," he told newsmen
\nfollowing a hearing with Commission VII for finance and trade of
\nthe House of Representatives (DPR).<\/p>\n
Asked if the revocation of its investment permit by BKPM would
\nprevent Bank Dragon from receiving a license from the Ministry of
\nFinance, Bambang said that would depend on the recommendation
\nfrom Bank Indonesia, the central bank.<\/p>\n
BKPM revoked the operational permit of Dragon Bank's
\nrepresentative office in Indonesia last week for operating in
\nunlicensed activities.<\/p>\n
The investment board did not specifically disclose the bank's
\nrepresentative error when announcing the revocation of the bank's
\ninvestment permit. But sources said that Dragon Bank's
\nrepresentative had operated as a bank instead of an investment
\nfirm as stipulated in BKPM's license.<\/p>\n
BKPM's chairman, Sanyoto Sastrowardoyo, later related the
\nrevocation of the license to the bank's alleged financial fraud.<\/p>\n
Sanyoto was quoted by the Antara news agency as saying that
\nthe bank was reported to have been involved in financial fraud
\naffecting three foreign banks -- Standard Chartered Bank,
\nDresdner Bank and an Italian bank.<\/p>\n
In addition, he said, Dragon Bank had openly violated the
\ninvestment permit given by his office, which allowed the bank's
\nrepresentative office here to act only as a supervising and
\nmonitoring body of the bank's investment activities in Indonesia.<\/p>\n
Bambang said yesterday that operational licenses for
\nrepresentative offices of foreign banks should be issued by the
\nMinistry of Finance, which, according to the existing laws, is
\nthe only ministry in charge of supervising and controlling all
\nfinancial activities.<\/p>\n
His office and the investment board had a different perception
\nabout the nature of Dragon Bank's operational activities.<\/p>\n
"There was a different view between the Ministry of Finance
\nand BKPM. Forgive us for the lack of coordination," Bambang said.<\/p>\n
An executive of Dragon Bank said last week that the bank's
\nexecutives "warmly welcomed" BKPM's decision.<\/p>\n
Yee Mei Mei, an executive of the bank's Indonesian
\nrepresentative, is now engaged in a legal dispute with the branch
\noffice of the Standard Chartered Bank.<\/p>\n
Yee, a Hong Kong national filed a lawsuit against the Standard
\nChartered Bank for allegedly blocking her accounts of around Rp 1
\nbillion (US$45 million) without justification.<\/p>\n
Sources said that the account was blocked owing to the
\nallegation that Dragon Bank was involved in financial fraud. The
\nexecutive of the Vanuatu-based bank, however, has repeatedly
\ndenied the allegation, saying that the bank's presence here was
\nonly to monitor its investments in telecommunication projects.
\n(hen)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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