IBRA grants debt-free status for Hendra, Ibrahim<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) has issued former
\nbank owners Hendra Liem and Ibrahim Risjad official debt-free
\nstatus, which could protect them against future charges for past
\nbanking crimes.<\/p>\n
IBRA spokesman Rohan Hafas said on Monday that the letters
\nattesting to their debt-free status were issued on Friday.<\/p>\n
Hendra, former owner of Bank Budi Internasional, and Ibrahim,
\nformer owner of Bank Risjad Salim Internasional, respectively
\nowed Rp 17.3 billion and Rp 332 billion in debt to the
\ngovernment.<\/p>\n
The two businessmen are among 13 ex-bankers approved by the
\npowerful Financial Sector Policy Committee (FSPC) to be given
\ndebt-free status, after they were deemed cooperative by IBRA in
\nsettling their debts through a combination of cash (30 percent)
\nand assets (70 percent).<\/p>\n
The FSPC groups together senior economics ministers.<\/p>\n
IBRA has also granted debt-free status to businessmen
\nSudwikatmono, former owner of Bank Surya with a debt of Rp 1.88
\ntrillion, and The Nin King, former owner of Bank Dana Hutama with
\na debt of Rp 23 billion.<\/p>\n
In the wake of the 1997-1998 financial crisis, the government
\nprovided around Rp 144.5 trillion in liquidity support facility
\nto bail out troubled banks. However, many of the now former bank
\nowners have been accused of misusing the funds -- by channeling
\nthem to affiliated businesses and other banking crimes.<\/p>\n
After years of unfruitful attempts to force 39 former bank
\nowners to fully repay their debts, IBRA proposed an incentive
\nscheme under which indebted businessmen would not be tried for
\npast banking crimes if they are cooperative in repaying their
\ndebts.<\/p>\n
The incentive scheme raised strong public criticism that such
\nwhite-collar crimes would go unpunished.<\/p>\n
Other indebted businessmen approved for debt-free status
\ninclude: Hashim S. Djojohadikusumo, Njoo Kok Kiong, Honggo
\nWendratmo, Suparno Adijanto, Andy Hartawan, Ganda Eka Handria,
\nPhilip S. Widjaja, Mulyanto Tanaga and Anthony Salim.<\/p>\n
Salim is the former controlling owner of Bank Central Asia.<\/p>\n
It is not clear when IBRA will officially grant the debt-free
\nstatus to these ex-bankers.<\/p>\n
The FSPC is currently considering approving Siti Hardijanti
\nRukmana, the eldest daughter of former president Soeharto and
\nformer owner of Bank Yama, for the same status.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-grants-debt-free-status-for-hendra-ibrahim-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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