IBRA asks Sjamsul to settle his Rp 28.5t debt<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring (IBRA) called
\nfor businessman Sjamsul Nursalim of the Gajah Tunggal Group
\nconglomerate on Wednesday to be cooperative in settling his
\nobligation to the agency.<\/p>\n
IBRA deputy chairman Mahmuddin Yasin said that the businessman
\nowed the agency some Rp 28.5 trillion (US$3.31 billion).<\/p>\n
\"What we ask from Sjamsul Nursalim is his cooperation in
\nsettling his obligation to the government through IBRA,\"
\nMahmuddin said at a press conference.<\/p>\n
He expects Sjamsul to come to the agency at the latest on
\nFriday to resume negotiation.<\/p>\n
Sjamsul's now defunct Bank Dagang Nasional Indonesia (BDNI)
\nhas received some Rp 28.5 trillion in liquidity support from the
\ngovernment when the economic crisis heightened in 1998.<\/p>\n
The businessman has to repay the debt via IBRA, a unit of the
\nfinance ministry.<\/p>\n
Mahmuddin said that Sjamsul agreed in September 1998 to settle
\nhis obligation through a combination of cash and transfer of
\nassets.<\/p>\n
He said that Sjamsul, one of the country's richest businessmen
\nduring the era of former president Soeharto, has promised to pay
\nRp 1 trillion in cash.<\/p>\n
But Mahmuddin said that the agency had so far only received Rp
\n337 billion.<\/p>\n
He said that Sjamsul has argued that his deposits at BDNI
\nshould be enough to cover the remaining cash obligation.<\/p>\n
\"But this is unacceptable,\" Mahmuddin said, pointing out that
\ndeposits of affiliated companies were not guaranteed by the
\ngovernment.<\/p>\n
\"Sjamsul is required to deposit (additional) cash in the
\namount of Rp 663 billion,\" he said.<\/p>\n
The government has guaranteed all deposits in the country's
\nbanking sector to avoid widespread panic in the event the
\ngovernment shut down a bank. But deposits of companies affiliated
\nto closed down banks are not included.<\/p>\n
Mahmuddin said that Sjamsul had pledged three of his companies
\nincluding tire maker PT Gajah Tunggal, integrated shrimp industry
\nPT Dipasena, and PT GT Petrochemical Industry to repay the
\nremaining Rp 27.5 trillion of his debt.<\/p>\n
\"To date, the pledging of the assets to IBRA has not been
\nfully completed as stipulated in the (September agreement),\" he
\nsaid.<\/p>\n
He also said that the companies scheduled for surrender to
\nIBRA have depreciated in value.<\/p>\n
He said that the reevaluation of the assets is still being
\ncompleted.<\/p>\n
But he said Sjamsul has promised to surrender his 65 percent
\nownership in PT Indonesia Prima Property, and 80 percent interest
\nin PT Pelsart Resource to cover the decline in the value of the
\npledged assets.<\/p>\n
One of IBRA's mandates is to make sure that former bank owners
\nrepay their debts to the government, that injected massive
\nliquidity support to the banks between 1998 and 1999.<\/p>\n
The agency has been strongly criticized for its poor
\nperformance in forcing former bank owners to repay their debts.<\/p>\n
One of the strongest critics is Coordinating Minister for
\nEconomy, Finance and Industry Kwik Kian Gie, who vowed recently
\nin a television interview that he would take the uncooperative
\nformer bank owners to court himself if IBRA continued to be
\nreluctant.<\/p>\n
Kwik has also criticized IBRA for accepting assets whose real
\nvalues are much smaller that what has been claimed by the owners.
\n(rei)<\/p>",
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"sponsor": "Okusi Associates",
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