Govt to pay Asiatic, BDB depositors soon<\/p>\n
Urip Hudiono\/Wahyoe Boediwardhana, The Jakarta Post, Jakarta\/Denpasar<\/p>\n
The government said on Monday it would pay the depositors of the
\nclosed down Bank Dagang Bali (BDB) and Bank Asiatic within two
\nweeks, as more than 100 depositors held a peaceful rally in front
\nof Bank Indonesia's Denpasar office.<\/p>\n
Director General of Financial Institutions Darmin Nasution
\nsaid the government was in the process of verifying the
\ndepositors.<\/p>\n
\"The government will screen out any depositors who are
\naffiliated with the banks' controlling owners or management and
\nwill not compensate them,\" Darmin said.<\/p>\n
Compensation for such depositors, Darmin said, would be taken
\nfrom funds obtained through the sale of the banks' assets, and
\nonly after the funds were used to meet the banks' other
\nliabilities, including state taxes and employee remuneration.<\/p>\n
The money to compensate the banks' other depositors,
\nmeanwhile, will come from reserve funds in the government's 502
\naccount or 519 account.<\/p>\n
Darmin said BDB depositors would be compensated in several
\nstages -- starting with small deposits -- due to the bank's large
\nnumber of depositors.<\/p>\n
The Denpasar-based BDB currently has 408,000 depositors, while
\nthe Jakarta-based Bank Asiatic has 2,200 depositors.<\/p>\n
The government must provide some Rp 2.39 trillion (US$281
\nmillion) in cash to cover the two banks' depositors as part of
\nits blanket guarantee program.<\/p>\n
Bank Indonesia (BI) closed down Asiatic and BDB last Thursday
\ndue to their worsening financial conditions, allegedly the result
\nof violations of prudential banking regulations and fictitious
\ntransactions worth Rp 1.2 trillion.<\/p>\n
Nervous BDB depositors in Denpasar held a demonstration at the
\nlocal office of the central bank to demand that the banking
\nauthority provide clarification about the fate of their money.<\/p>\n
In a convoy of motorbikes, the protesters left BDB's central
\noffice in downtown Denpasar and moved to the BI office on Jl. WR
\nSupratman in eastern Denpasar.<\/p>\n
\"I am upset and confused. I want to be able to take my
\ndeposited money as soon as possible but I don't know how to do
\nit,\" land broker Made Parma, 45, said.<\/p>\n
Parma said he had over Rp 300 million in his account at BDB.<\/p>\n
Another protester, I Putu Patra, 35, exhibited his bank book,
\nwhich showed that his last deposit was on March 26, bringing his
\naccount to Rp 10 million.<\/p>\n
\"Do you think I will get my money back? That money is supposed
\nto be my kids' college money,\" he said.<\/p>\n
The head of the Denpasar branch of BI, Lukman Boenjamin,
\nassured the crowd that their deposits were guaranteed and they
\nwould receive all of their money.<\/p>\n
Founded in 1970 by Bali businessman I Gusti Made Oka, BDB grew
\ninto one of the largest banks on the island.<\/p>\n
The bank was popular for its regular prize-drawings and
\nscholarship programs for depositors' children.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-pay-asiatic-bdb-depositors-soon-1447893297",
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"sponsor": "Okusi Associates",
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