Standard Chartered named to restructure Bapindo<\/p>\n
JAKARTA (JP): The government appointed Standard Chartered Bank
\n(SCB) of Britain to restructure the management of the scandal-hit
\nBank Pembangunan Indonesia (Bapindo) yesterday, despite
\nopposition from local banking experts.<\/p>\n
The British bank will prepare a five-year technical program
\nfor the state-owned Bapindo under an agreement signed yesterday
\nby Director General for the Supervision of State Enterprises
\nMartiono Hadianto and R. Douglas Dowie, the chief executive of
\nSCB's Indonesian operation.<\/p>\n
Finance Minister Mar'ie Muhammad said that SCB was one of five
\nforeign banks, including Citibank, proposing to provide technical
\nassistance for Bapindo.<\/p>\n
"We appointed SCB because they are relatively more prepared
\nthan the other four," he told newsmen following the signing of
\nthe technical agreement.<\/p>\n
The signing of the accord was also witnessed by British
\nAmbassador Graham Burton and Bank Indonesia (central bank)
\nGovernor J. Soedradjad Djiwandono.<\/p>\n
Mar'ie said SCB's plan to move its Asian training center from
\nSingapore to Jakarta was also another reason for choosing the
\nbank for the advisory job.<\/p>\n
"Other state, and even private banks could benefit from SCB's
\ntraining facilities," he said in an indirect response to the
\nopposition of a number of local banking experts on the technical
\nprogram.<\/p>\n
Setback<\/p>\n
The government's plan to invite foreign banks to restructure
\nthe management and operation of Bapindo was announced early this
\nyear but it was opposed by local banking experts, describing the
\nplan as a setback to the country's banking industry.<\/p>\n
Dowie said that SCB, which has been operating in Indonesia for
\nmore than 130 years, will set up a team of four professional
\nbankers to conduct "advisory" tasks for Bapindo.<\/p>\n
"The team, according to Bapindo's needs, may be enlarged" he
\ntold newsmen.<\/p>\n
The technical agreement requires SCB to establish general
\nprocedures in such fields as lending, internal audit and risk
\nmanagement, Dowie said, strongly denying the possibility of their
\nbeing engaged in an "executive role."<\/p>\n
He refused to elaborate on the fees involved in the deal but
\nstated that financial gain was not the motive.<\/p>\n
The finance minister appointed on Thursday Arbali Sukanal K,
\na former director of the state-owned Bank Bumi Daya (BBD), as the
\npresident of Bapindo, under the bank's second reshuffle since the
\ndisclosure of a scandal involving unpaid bank debts of over
\nUS$430 million in mid-1993.<\/p>\n
Eddy Tansil, the prime suspect in the loan scandal, was
\nsentenced to 17 years' imprisonment, while Maman Suparman, a
\nformer head of Bapindo's Jakarta branch, was jailed for nine
\nyears for his part in the loan scam. Four former Bapindo
\ndirectors are now being tried by Jakarta courts.(hen)<\/p>\n
Trial -- Page 2<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/standard-chartered-named-to-restructure-bapindo-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }