Govt finally reshuffles top management of BRI<\/p>\n
JAKARTA (JP): After months of controversy, the government
\nannounced on Tuesday that it reshuffled the top management of
\nstate Bank Rakyat Indonesia (BRI) to allow recapitalization of
\nthe bank to proceed.<\/p>\n
Minister of Finance Bambang Sudibyo appointed in a decree
\nsenior banker Rudjito as the new BRI president, replacing
\nDjokosantoso Moeljono.<\/p>\n
The decree also named six new directors to the bank, and
\nanother separate decree appointed the bank's new president
\ncommissioner and three new commissioners.<\/p>\n
The six new directors are Gayatri Rawit, A. Askandar, Krisna
\nWijaya, Wayan Alit Antara, Hendrawan Tranggana and Akhmad Amien
\nMastur.<\/p>\n
The new chief commissioner is Sukadji Ranuwihardjo, and the
\nthree new commissioners are Ronny Muntoro, Arbali Sukanal and
\nSyahrial Hamid.<\/p>\n
The International Monetary Fund (IMF) has demanded the
\ngovernment change the management of state banks as a precondition
\nfor the recapitalization of the bank.<\/p>\n
The management reshuffle of BRI was part of the government's
\npromise, outlined in the letter of intent to the IMF, which must
\nbe completed by the July 20 deadline.<\/p>\n
But the plan to change the bank's top management was plagued
\nwith controversy after President Abdurrahman Wahid's choice,
\nPrijadi Praptosuhardjo, reportedly failed to pass Bank
\nIndonesia's fit and proper test.<\/p>\n
Bank Indonesia Governor Sjahril Sabirin said the President had
\ndemanded the central bank repeat the fit and proper test, but
\nBank Indonesia rejected the appeal unless there was new
\ninformation.<\/p>\n
Sjahril is being held at the Attorney General's Office for
\nalleged involvement in the high-profile Bank Bali scandal.<\/p>\n
Prijadi was previously a director at BRI. The fit and proper
\ntest is conducted based on a banker's past track record to check
\nwhether the candidate violated any banking rulings.<\/p>\n
In a bid to avoid a reoccurence of a banking crisis in the
\nfuture, the central bank has stipulated that people running the
\ncountry's banks must pass the fit and proper test.<\/p>\n
The 54-year-old Rudjito has a well-established career in state
\nbanks, but his last position was president of PT Kliring
\nPenjaminan Efek Indonesia, a securities clearing agency.<\/p>\n
Rudjito said the government was scheduled to meet with the
\nHouse of Representatives on Friday to seek approval of the bank's
\nrecapitalization program.<\/p>\n
Cost of recapitalization of BRI was initially estimated at Rp
\n29.2 trillion if the recapitalization program was completed in
\nMay. The government will inject bonds to recapitalize the bank.<\/p>\n
The cost is expected to increase due to the delay.<\/p>\n
\"My goal is to turn BRI around to become a profitable bank in
\nthree to four years time,\" Rudjito said, following the handover
\nceremony.<\/p>\n
He added that he would also try to fulfill BRI's business
\nplans, including to help the bank increase its exposure to
\nmicrofinancing business, which currently is at 70 percent of
\ntotal outstanding credit.<\/p>\n
BRI has total assets of about Rp 34 trillion. Its capital
\nadequacy ratio (CAR) is minus 118 percent. The recapitalization
\nprogram would boost its CAR level to 4 percent.<\/p>\n
BRI outgoing president Djoko claimed that the bank had enjoyed
\na positive net interest rate margin since September last year.<\/p>\n
He added that the bank had also managed to restructure some Rp
\n5.8 trillion in nonperforming loans.<\/p>\n
Djoko said the achievements caused the recapitalization cost
\nto drop to Rp 29.2 trillion from Rp 31.6 trillion budgeted by the
\ngovernment in 1999. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-finally-reshuffles-top-management-of-bri-1447893297",
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