IBRA steps up pressure on indebted ex-bank owners<\/p>\n
A'an Suryana, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) is stepping up
\npressure on indebted former bank owners, who have been
\nuncooperative in settling their debts with the government since
\n1998.<\/p>\n
IBRA has given nine ex-bank owners three months to repay debts
\nor risk legal sanctions including imprisonment.<\/p>\n
The nine bankers were considered \"uncooperative\" in repaying
\ntheir debts based on the findings of a team of legal experts
\nassigned by the government to review the performance of 33 former
\nbank owners in repaying debts. The team has yet to complete its
\nreview on all the debtors.<\/p>\n
The move by IBRA is seen as a last ditch effort by the
\ngovernment, after previous attempts to force the bankers to repay
\ndebts had been unsuccessful.<\/p>\n
The former bank owners had received more than Rp 144 trillion
\nin central bank liquidity support funds in the late 1990s. But
\nmost of the funds had been misused, several banks had channeled
\nthe funds into affiliated firms.<\/p>\n
Seven of the nine bankers met with IBRA Chairman Syafruddin
\nTemenggung last week.<\/p>\n
They were Ganda Eka Handria from PT Bank Sembada Arthanugraha,
\nMulianto Tanaga and Hadi Wijaya Tanaga from PT Bank Indotrade,
\nThee Nin Khong from PT Bank Baja International, Fadel Mohammad
\nfrom Bank Intan, Liem Hendra from Bank Budi International and
\nThee Nin King from Bank Danahutama. All of these banks have been
\nshut down.<\/p>\n
The former bank owners emerged from the meeting with mixed
\nreactions. Some vowed that they would fulfill their obligations,
\nwhile others strongly objected to the cited amount of debt owed.<\/p>\n
The latter group of the bankers disputed IBRA's version of the
\nbankers' debts, saying that the amount had been inflated by IBRA
\nofficials.<\/p>\n
Hardjono (eds: one name), a lawyer defending the debtors, said
\nthat the difference was as high as 50 percent.<\/p>\n
He claimed that the debtors had filed their versions to IBRA
\non several occasions, but they had been ignored.<\/p>\n
\"Therefore, we will not pay the debts unless the difference is
\nsettled,\" said another lawyer Hermawan Pamungkas recently, during
\na television talk show here.<\/p>\n
Meanwhile, IBRA dismissed the charges of miscalculation.<\/p>\n
Agency legal division director Robertus Bilitea said the
\nrecalcitrant debtors had actually agreed on the amount of their
\ndebts, as stipulated in an out-of-court settlement agreement
\n(PKPS) with the government in 1998.<\/p>\n
\"It is quite weird. They had agreed and signed the agreement,
\nbut now, they deny it,\" Robertus told The Jakarta Post on
\nSaturday.<\/p>\n
He added that the ex-bank owners should have lodged complaints
\nabout the difference in the past.<\/p>\n
\"However, they failed to do that. They only reacted now, after
\nwe decided to carry out tougher measures,\" said Robertus.<\/p>\n
Robertus went on to say that IBRA's version was valid,
\nmoreover it was produced by independent parties and
\nprofessionals, who have carried out a financial audit and due
\ndiligence on the banks.<\/p>\n
Meanwhile, economist Raden Pardede praised the tough measures
\nplanned by IBRA, saying that the move would restore investor
\nconfidence to Indonesia.<\/p>\n
\"This could create a momentum for accelerating IBRA's asset
\nsales, and this could later raise capital inflow to Indonesia,
\nwhich is badly needed to spur economic growth and to ease the
\nstrain on the state budget,\" Raden told the Post on Saturday.<\/p>\n
\"People would be happy that the errant bankers are punished
\nfor their misconduct in the past, such as transgressing the legal
\nlending limit,\" he added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-steps-up-pressure-on-indebted-ex-bank-owners-1447893297",
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"sponsor": "Okusi Associates",
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