No politicking behind reshuffle: IBRA Chief<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
The reshuffling of top officials at the Indonesian Bank
\nRestructuring Agency (IBRA) was to prepare for the meeting of
\ntougher targets next year, said IBRA chief I Putu Gede Ary Suta
\non Friday, as he dismissed rumors of politicking being behind the
\nmove.<\/p>\n
\"There is an increase in our targets, the demand for faster
\n(loan) restructuring, and for faster bank restructuring, all of
\nwhich require team work,\" Ary Suta was quoted as saying by
\ndetik.com after the inauguration of the four new deputies.<\/p>\n
On Thursday, IBRA said that the Office of the State Minister
\nfor State Enterprises, which oversees the agency, had replaced
\nfour IBRA deputies on account of their poor performance, even
\nthough Ary Suta said IBRA was certain to meet its asset sales
\ntarget for this year.<\/p>\n
The changes revived early speculation of politicking infesting
\nthe agency since he became IBRA chief last June.<\/p>\n
Ary Suta took the agency by storm, engaging in a mission to
\nrevamp the organization without delay.<\/p>\n
He has moved to slash the excessive presence of consultants in
\nIBRA, and cut short its decision-making chain. Analysts have
\nwarned that such drastic restructuring at IBRA would come at the
\nexpense of its asset sales target.<\/p>\n
IBRA documents, leaked to the media, clearly reveal the damage
\ndone: a centralized decision-making process that has alienated
\nAry Suta from his staff, and effectively caused the agency's work
\nto grind to a halt.<\/p>\n
Ary Suta admitted there was opposition to him, but denied it
\nwas hampering IBRA's work.<\/p>\n
With the change in government in August, many believed Ary
\nSuta's days were numbered, especially after State Minister for
\nState Enterprises Laksamana Sukardi took IBRA under his personal
\nwing.<\/p>\n
Among the deputies that were replaced on Friday were former
\ndeputy chairwoman of IBRA's Bank Restructuring Unit, Felia Salim,
\nand former deputy chairman of the Asset Management Credit
\ndivision, Irwan Siregar.<\/p>\n
Irwan recalled resistance to Ary Suta in the early period of
\nhis tenure, but blamed it on a lack of communication.<\/p>\n
\"It's normal for chiefs to have their own ideas, and I think
\nwe should give him a chance,\" Irwan said in an interview with
\nSCTV television on Friday.<\/p>\n
Despite the earlier fears that politicking would hurt IBRA's
\nasset sales target, the agency has now come close to meeting it.<\/p>\n
Ary Suta said he expected revenues of Rp 3 trillion (about
\nUS$288 million) to come in over the next two weeks to help raise
\nthe targeted Rp 27 trillion.<\/p>\n
He did not say where he was expecting to book new deals.<\/p>\n
IBRA asset sale revenue contributes to the financing of this
\nyear's state budget deficit of around Rp 54 trillion.<\/p>\n
The agency is in charge of selling assets it took over from
\nthe banking sector in the wake of the 1997 financial crisis.<\/p>\n
It has amassed some Rp 600 trillion in assets, of which about
\none third consist of bad loans, and some others in the form of
\nshares of nationalized banks.<\/p>\n
In spite of the progress in asset sales, IBRA is seen as
\nlagging behind in the divestment of nationalized banks.<\/p>\n
This year, IBRA should have finalized the sale of Bank Central
\nAsia (BCA) and Bank Niaga.<\/p>\n
Ary Suta said that a deal for BCA this year was still likely,
\nbut the receipt of the proceeds would have to wait to next year.<\/p>\n
When asked why he had replaced the deputies although they had
\nmet their targets, Ary Suta said IBRA was more than just about
\ntargets.<\/p>\n
\"Is our goal just to go after targets, because there is a lot
\nthat must be done?\" he explained.<\/p>\n
For next year, the agency must raise Rp 48.2 trillion in asset
\nsales, or nearly twice this year's target.<\/p>",
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