IBRA strives to boost legal power<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nis seeking to boost its legal power in a bid to bolster the
\nlegitimacy of its decisions, a senior official has said at the
\nagency.<\/p>\n
IBRA legal division head Pandu Djajanto said on Tuesday that
\nthe agency would propose to the President to upgrade the legal
\nbasis governing the agency to a government ruling in lieu of the
\nlaw.<\/p>\n
IBRA is currently directed under Government Regulation No.
\n17\/1999.<\/p>\n
Speaking at a news conference, Pandu said the agency's
\ndecisions were often overruled by higher rulings as proven by its
\nrecent failure in a commercial court battle to force a bad debtor
\nto repay its obligation.<\/p>\n
He explained that strengthening the agency's legal status
\nwould help accelerate the restructuring and recovery of the bad
\nloans under its management, and to ensure former bank owners
\nrepay their obligations to the government.<\/p>\n
Many former bank owners and bad debtors are politically well-
\nconnected businessmen.<\/p>\n
Pandu said the agency would submit the draft of the
\nrecommended change to the government later this month.<\/p>\n
He expected the House of Representatives to subsequently enact
\nthe new ruling.<\/p>\n
But many analysts have criticized that the ruling already gave
\nIBRA excessive power.<\/p>\n
Separately, finance minister Bambang Sudibyo said on Tuesday
\nthat he was not aware of the agency's demand to upgrade its legal
\nstatus.<\/p>\n
\"I'm not aware of the demand. I have to think this over
\ncarefully. I have to check the problem,\" he told reporters on the
\nsidelines of a hearing with the House budget committee.<\/p>\n
IBRA currently controls over Rp 600 trillion worth of various
\nbank assets, including ownership in companies or in the form of
\nnonperforming loans (NPLs) transferred by closed banks,
\nnationalized banks or recapitalized banks.<\/p>\n
The agency has been criticized for its slowness and
\nindecisiveness in dealing with bad debtors.<\/p>\n
Another IBRA official, Andreas Bunanta, separately said on
\nTuesday that the agency now controlled a total of Rp 250 trillion
\nin NPLs after state Bank BNI transferred some Rp 19 trillion
\nworth of NPLs last week.<\/p>\n
He said Rp 15 trillion of the loans were owed by the Texmaco
\ntextile conglomerate, making it the agency's largest debtor.<\/p>\n
Andreas said state Bank Mandiri was also expected to transfer
\nits remaining Rp 16.5 trillion NPLs to the agency by the end of
\nthis month.<\/p>\n
He added that state Bank Rakyat Indonesia would also soon
\ntransfer its NPLs.<\/p>\n
Banks joining the government recapitalization program have to
\ntransfer their NPLs to create a clean balance sheet.<\/p>\n
Pandu said the agency was also considering taking legal action
\nagainst former owners of four closed banks who had not yet paid
\ntheir obligations to the government.<\/p>\n
Many former bank owners have pledged various forms of fixed
\nassets to repay their obligations.<\/p>\n
Pandu added that the agency would propose to the government to
\nlift the travel ban on 137 former bank owners and senior
\nmanagement as they had completed the settlement of their
\nobligations.<\/p>\n
The government has slapped a travel ban on some 206 former
\nbankers and bank owners. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-strives-to-boost-legal-power-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}