Question mark hangs over FSPC meeting<\/p>\n
JAKARTA (JP): The newly established Financial Sector Policy
\nCommittee (FSPC), which oversees the Indonesian Bank
\nRestructuring Agency, held its first meeting on Wednesday.<\/p>\n
But none of the committee members were willing to answer
\nquestions about was discussed during the meeting, held at the
\noffice of the National Development Planning Board.<\/p>\n
Coordinating Minister for Economy, Finance and Industry Kwik
\nKian Gie, who heads the committee, did not meet with waiting
\nreporters.<\/p>\n
IBRA chief Cacuk Sudarianto also kept tight-lipped, hurrying
\npast reporters to his waiting car.<\/p>\n
However, committee secretary Dipo Alam told journalists one of
\nthe items on the meeting's agenda was the procedures for the sale
\nof IBRA's 40 percent equity in PT Astra International.<\/p>\n
\"In their first meeting, FSPC reached a decision on the sale
\nof IBRA's Astra shares. I believe Cacuk will announce it himself
\nwithin a few days,\" Dipo said.<\/p>\n
But he declined to give further details on the planned
\ndivestment, which has caused controversy over allegations that
\nIBRA \"bulldozed\" securities market rules in pushing through its
\ndeal with an American investor group led by Newbridge Capital and
\nGilbert Global Equity Partners.<\/p>\n
Another IBRA senior official, Farid Harianto, who also
\nattended the meeting, confirmed Dipo's remarks.<\/p>\n
FSPC is made up of the finance minister, the state minister of
\ninvestment and state enterprises, the minister of industry and
\ntrade, the central bank governor, the chairman of IBRA, the head
\nof Jakarta Initiative Task Force and the chairman of the National
\nDevelopment Planning Board.<\/p>\n
The committee, established last month by presidential decree,
\nhas the task of overseeing the implementation of IBRA's bank and
\ncorporate restructuring programs. It reports directly to the
\nPresident.<\/p>\n
The idea behind the establishment of the committee, as
\ndescribed in the Letter of Intent sent by the government to the
\nInternational Monetary Fund, is to assist IBRA in its bank and
\ncorporate restructuring programs.<\/p>\n
\"FSPC will back IBRA whenever the agency has to make a
\ndifficult decision,\" Kwik said earlier this week.<\/p>\n
Kwik added that FSPC would take over IBRA's task of ruling on
\nimportant and sensitive cases of corporate restructuring.<\/p>\n
IBRA officials have reportedly refrained from taking firm
\naction in some cases for fear of lawsuits by the businesspeople
\nor companies affected by the debt and bank restructuring.<\/p>\n
\"In this case FSPC will make the difficult decisions for IBRA
\nand face the lawsuits by any third party,\" Kwik said.<\/p>\n
The government will issue later this month a decree protecting
\nIBRA officials and FSPC members from lawsuits over the decisions
\nthey make regarding corporate and debt restructuring, according
\nto the Letter of Intent.<\/p>\n
\"The decree will be issued (by the government) and commits the
\ngovernment to providing the officials of IBRA and the members of
\nthe FSPC with personal legal assistance in cases where decisions
\nconsistent with the proper policies and procedures are
\nchallenged,\" the letter stipulates.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/question-mark-hangs-over-fspc-meeting-1447893297",
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