Legislators urge govt probe of bad debtors<\/p>\n
JAKARTA (JP): Legislators of the ruling Golkar Party are
\nurging the government to extend its inquiry into debtors
\nresponsible for Rp 100 trillion (about US$11.7 billion) in bad
\nloans at the country's state banks.<\/p>\n
Thomas Suyatno said on Tuesday the government should
\ninvestigate the causes of the bad loans and take legal action
\nagainst those who committed crimes.<\/p>\n
\"Writing off the bad loans is not enough. The government has
\nto make a further inquiry,\" he told The Jakarta Post.<\/p>\n
He earlier claimed that he possessed a list of the country's
\n50 largest bad debtors at the state banks, with the largest
\nsingle debtor owing Rp 8.7 trillion and the lowest on the list
\nresponsible for Rp 1.4 trillion.<\/p>\n
The Indonesian Bank Restructuring Agency announced last week
\nthat it had taken over Rp 100 trillion in nonperforming loans at
\nthe seven state banks -- Bank Bumi Daya, Bank Dagang Negara, Bank
\nPembangunan Indonesia, Bank Ekspor Impor Indonesia, Bank Tabungan
\nNegara, Bank Rakyat Indonesia and Bank Negara Indonesia. The bad
\nloans involved at least 1,200 debtors.<\/p>\n
IBRA deputy chairman Eko S. Budianto said the financial
\nrestructuring would remove bad assets from their loan portfolios
\nto allow them to concentrate their resources on managing
\nproductive assets.<\/p>\n
Legislator John Manafe, also from Golkar, concurred with
\nThomas that bad debtors should be tried because their debts were
\na burden to the public.<\/p>\n
\"The House will summon the minister of finance for an
\nexplanation,\" he said.<\/p>\n
Media reports state that many of the bad debtors are
\npolitically well-connected businesspeople, with many linked to
\nformer president Soeharto.<\/p>\n
The government has been under pressure to disclose the list of
\nerrant bankers whose violations of banking regulations partly
\ncontributed to the glut of nonperforming loans which hobbled
\nstate and private banks.<\/p>\n
Despite increasing pressure, the country's financial authority
\nsaid the list was for \"internal purposes\" only.<\/p>\n
Bank Indonesia director Subarjo Joyosumarto said on Monday
\nthat revealing the list would violate a 1968 banking ruling.<\/p>\n
\"We will not disclose publicly the list of errant bankers.
\nWe'll stick with the 1968 bank ruling no. 13. If we violate the
\nruling, we could get a one-year jail penalty and a Rp 1 billion
\nfine,\" he told reporters on the sidelines of a hearing with the
\nHouse of Representatives.<\/p>\n
In a recent letter of intent to the International Monetary
\nFund, the government said it would encourage 20 of the largest
\ndebtors to agree to restructuring before resorting to
\nliquidation.<\/p>\n
The government announced last week that 172 bankers were
\nbarred from overseas travel to ensure their presence for data
\nverification and questioning regarding 38 banks closed down by
\nthe government on March 13.<\/p>\n
Subarjo said the management and owners of the banks would be
\nincluded in the list of errant bankers if they were proven to
\nhave committed banking crimes which led to the collapse of their
\ninstitutions. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/legislators-urge-govt-probe-of-bad-debtors-1447893297",
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