Minister names new Bapepam, IBRA chiefs<\/p>\n
JAKARTA (JP): The Ministry of Finance replaced eight top-
\nranking officials yesterday, including the chairman of the
\nIndonesian Bank Restructuring Agency (IBRA) and the head of the
\nCapital Market Supervisory Agency (Bapepam).<\/p>\n
New IBRA chairman is Glenn M.S. Yusuf, former director general
\nof financial institutions, who replaces Iwan R. Prawiranata. The
\nlatter will now serve only as a director at the central bank.<\/p>\n
Bapepam is now led by Jusuf Anwar, former head of the
\neducation and training center (BPLK) at the Ministry of Finance.<\/p>\n
Jusuf replaces I Putu Gede Ary Suta, who was transferred as an
\nexpert to the minister of finance.<\/p>\n
Other new senior officials are director general of excise and
\nduty Martiono Hadianto, director general of financial
\ninstitutions Susiati B. Hirawan, head of the monetary and
\nfinancial analysis body Noor Fuad, head of BPLK Arie Soelendro
\nand state revenue expert Suhadi Hadiwijoyo.<\/p>\n
Minister of Finance Bambang Subianto also reshuffled 35
\nsecond-echelon officials at the finance ministry.<\/p>\n
He said the measure was needed to deal with the country's
\neconomic crisis, including to speed up the bank restructuring
\nprocess, maintain state revenues at a \"good level\" and implement
\nthe new law on nontax income.<\/p>\n
\"These are difficult tasks considering the severe condition of
\nthe economy,\" he said.<\/p>\n
To help in accelerating the bank restructuring process, he
\nsaid IBRA's new chairman would no longer be responsible for two
\njobs as in the past, in which the former chairman also served as
\na director at Bank Indonesia.<\/p>\n
He stressed the government would maintain the existence of
\nIBRA, whose sole duty is to restore the country's troubled banks.<\/p>\n
Many earlier criticized IBRA's overlapping role with the
\ncentral bank, and urged the agency's operation to be terminated.<\/p>\n
IBRA's role would be to find ways to revive the ailing banks
\nboth those under its supervision or those outside the agency,
\nBambang said.<\/p>\n
\"Through IBRA, the stronger banks are expected to be able to
\nhelp the weaker ones.\" He added that one of the ways was for
\nstronger institutions to assume the bad assets of troubled banks.<\/p>\n
He explained that due diligence of internationally accepted
\nstandards was being implemented to gauge the real position of all
\ndomestic banks, including their loan loss provision level and
\ncapital condition.<\/p>\n
The government last week eased the bank capital requirements,
\nin which the minimum capital adequacy ratio (CAR) requirement was
\nhalved to 4 percent from the earlier target of 8 percent to be
\nfulfilled by the end of this year.<\/p>\n
\"We're just trying to be realistic. Amid the current economic
\ncondition, most of our banks are finding difficulty in meeting
\nthe previously high CAR level,\" he said, referring to criticism
\nof the decision to lower the CAR requirements.<\/p>\n
CAR requirements to be fulfilled by the end of 1999 and 2000
\nwere lowered to 8 percent and 10 percent respectively. (rei)<\/p>",
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