IBRA threatens to take legal action against Hashim<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nsaid on Tuesday it would take legal action against businessman
\nHashim S. Djojohadikusumo if he failed to settle his obligations
\nwith the government.<\/p>\n
The head of asset management in the agency's investment
\ndivision, Dasa Sutantio, said the now defunct Bank Pelita and
\nBank Istismarat, which were owned by Hashim, received some Rp 3.2
\ntrillion in government liquidity support last year as the
\neconomic crisis deepened.<\/p>\n
Speaking at a media conference, Dasa said the agency would
\ntake legal action in January if Hashim had not settled his banks'
\ndebts.<\/p>\n
Bank Pelita and Bank Istismarat are among the 10 banks shut
\ndown by the government last year in its attempt to restructure
\nthe country's ailing banking sector.<\/p>\n
The government has closed 66 banks, nationalized 11 banks and
\nrecapitalized eight banks since the end of 1997.<\/p>\n
Some Rp 140 trillion in liquidity support was extended by the
\ngovernment to banks last year in a bid to prevent the complete
\ncollapse of the banking system amid plunging confidence in the
\nindustry and runs on banks.<\/p>\n
Many of the banks' owners breached lending provisions by
\nchanneling most of their money to their other businesses. The
\nbank owners are obliged to return the affiliated loans.<\/p>\n
Some former bank owners have surrendered a combination of cash
\nand fixed assets to repay some Rp 96 trillion in debts. These
\nowners include Sudono Salim, the former owner of nationalized
\nBank Central Asia (BCA); the former owner of nationalized Bank
\nDanamon, Usman Admadjaja; Mohamad \"Bob\" Hasan, the former owner
\nof closed Bank Umum Nasional; Sjamsul Nursalim of the now defunct
\nBank Dagang Negara Indonesia; and Samadikun Hartono, the former
\nowner of closed Bank Modern.<\/p>\n
The surrendered fixed assets include shares in various
\ndomestic and overseas companies.<\/p>\n
IBRA plans to dispose of the assets over the next four years.
\nImmediate plans include floating some 30 percent of the shares in
\nBCA through an initial public offering in a bid to raise some Rp
\n3 trillion, and divesting a 30 percent stake in publicly listed
\nauto company PT Astra International to raise between Rp 2
\ntrillion and Rp 3 trillion.<\/p>\n
Hashim, whose brother Prabowo Subianto is married to one of
\nformer president Soeharto's daughters, controls the Tirtamas
\nGroup.<\/p>\n
In addition to his banks' debts, the Tirtamas Group owes
\ntrillions of rupiah in nonperforming bank loans to IBRA.<\/p>\n
IBRA currently controls more than Rp 230 trillion in bad loans
\ntransferred by closed down and recapitalized banks. The agency,
\nhowever, is finding it difficult to sway the debtors, mostly
\ninfluential businessmen, to restructure the loans.<\/p>\n
IBRA has threatened litigation against recalcitrant debtors,
\nhowever, despite these threats and other measures taken by the
\nagency, IBRA has been criticized for moving too slowly to
\nrestructure the bad loans.<\/p>\n
Agency chairman Glenn S. Yusuf met with President Abdurrahman
\nWahid on Tuesday. (rei)<\/p>",
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