IBRA launches overhaul plan to boost efficiency<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nannounced a major overhaul including plans to cut down the number
\nof consultants.<\/p>\n
IBRA chairman I Putu Gede Ary Suta said on Friday that the
\nchanges were made as an effort to increase efficiency in the
\nagency and to speed up the disposal of assets.<\/p>\n
"We've been accused of working too slow, we want to change
\nthat," he said in a media conference here.<\/p>\n
Ary Suta noted that almost one third of IBRA's expenditures
\ncomprised payment for the large number of consultants working for
\nthe agency. He cited that the Asset Management Credit (AMC) unit
\nof the agency alone budgeted Rp 700 billion (US$7.3 million) for
\nconsultants.<\/p>\n
In the new IBRA organization, to be made effective early next
\nweek, all consultants would be centralized under a Consulting
\nManagement Unit, which will reselect those to work for IBRA, Ary
\nSuta said.<\/p>\n
"Any of IBRA's units wishing to use a consultant must choose
\none of the consultants already in the CMU's list and the CMU will
\ndraw a term of reference for it," he said.<\/p>\n
The CMU is one of six new units introduced by Ary Suta for his
\noverhaul plan of IBRA.<\/p>\n
The other five units are the appointment of a chief financial
\nofficer (CFO), an asset disposal coordinator, a customer care
\nunit, general legal counsel and a litigation unit.<\/p>\n
Besides the major changes taking place inside the agency
\nitself, Ary Suta said that he would also introduce changes to the
\nway the agency works.<\/p>\n
Ary Suta said that to speed up the asset disposal program,
\nwhich had been criticized for being too slow, he would offer
\nindebted state enterprises a 25 percent reduction on their debt
\nprincipals and private corporate debtors a lower dollar rate to
\nprompt them to settle their debts this year.<\/p>\n
State enterprises that owe debts of under Rp 1 trillion are
\nentitled to a 25 percent reduction on its principal debt when
\npaying in cash, he said.<\/p>\n
"Furthermore, they are entitled to receive 100 percent
\nreduction for interest overdue and fines," Ary Suta added.<\/p>\n
He said that in a meeting on Thursday with the director
\ngeneral of state-owned enterprises, I Nyoman Tjager, at least 44
\ncompanies were entitled to the debt cut and that they should be
\nable to finalize their credits within two or three weeks.<\/p>\n
Private corporate debtors would also be offered a lower dollar
\nrate, set at Rp 7,800 per U.S. dollar, for those wishing to pay
\ntheir debts by cash this year, Ary Suta said.<\/p>\n
"This was considered an incentive and we've seen the number of
\ndebtors making a cash settlement increase since our announcement
\nlast month," he said.<\/p>\n
Ary Suta said that he would also try to make the agency more
\nobjective in its role by asking its senior management to let go
\nof their roles in banks and companies currently under IBRA's
\nsupervision.<\/p>\n
He said that he had noticed that many of IBRA's executives
\nwere also holding managerial posts at several companies under the
\ncare of the agencies.<\/p>\n
"Some even have positions in seven to 13 companies," Ary Suta
\nsaid.<\/p>\n
He said that the dual role of executives would only lead to a
\nconflict of interest, which should be avoided at all costs.<\/p>\n
Ary Suta added that the executives would be given 14 days to
\nconsider their move, whether to stay on as an IBRA executive or
\nwhether to withdraw from the agency and assume a role in the
\ncompanies.(tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-launches-overhaul-plan-to-boost-efficiency-1447893297",
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