Suspension of banks<\/p>\n
Minister of Finance Fuad Bawazier announced on April 4, the
\nsuspension of seven banks and another seven banks placed under
\nthe supervision of the Indonesian Banking Restructuring Agency
\n(IBRA). It was also announced that the liabilities of the first
\ngroup of banks toward their customers would be taken over by BNI
\nand that BNI would take care of matters pertaining to payment to
\ncustomers.<\/p>\n
The suspended banks will not be liquidated. This means that as
\nlimited liability companies, the banks still exist. As a result,
\nthe legal consequences are as follows:<\/p>\n
1. The banks' shareholders still control all the assets of the
\nbanks as limited liability companies -- both fixed assets (such
\nas land and buildings) and movable assets (such as motorized
\nvehicles, computers, etc.). Only the shareholders reserve the
\nright to sell these assets. The government doesn't have the right
\nto sell these assets, let alone sell the personal assets of the
\nshareholders.<\/p>\n
2. Manipulation and collusion practices may have been done in
\nthat the assets of the banks and the personal assets of the
\nshareholders have been sold (transferred to other parties) before
\nthe government, in this case IBRA, can get hold of them. Can the
\ngovernment exercise tight control over this matter and give its
\nassurance that there will be no such practices, including those
\ninvolving certain IBRA personnel?<\/p>\n
3. As for other banks (about 47), which are categorized as
\nfinancially unsound and under IBRA monitoring, the boards of
\ndirectors and the shareholders may still have an opportunity to
\ncollect the assets and sell them to other parties before the
\ngovernment decides to suspend the banks'.<\/p>\n
4. According to civil law, the shareholders of suspended banks
\nassume responsibility for all the banks' liabilities, including
\nthe personal assets of the shareholders themselves. However, it
\nmay happen that out of slyness, these shareholders transfer the
\nbanks' assets as well as their personal assets to other parties.
\nCan such acts be criminally sued? Or, do they belong only to the
\nrealm of civil law, which involves a slow process and is easily
\ntricked?<\/p>\n
In my opinion, in an effort to restructure the banking system,
\nit is the government which will be most disadvantaged because it
\nwill have to bear all the banks' liabilities, especially when the
\nproceeds from the sales of the banks' assets are not sufficient
\nto cover the liabilities, and the personal assets of the
\nshareholders are nowhere to be found.<\/p>\n
If the government has to sustain such losses, this means the
\nburden must be borne by the entire Indonesian population (through
\ntaxes). Those who enjoy the biggest profit and can afford to
\nlaugh are the shareholders of the banks because they have easily
\npocketed the government's funds through liquidity credits
\nextended to them (their banks) by Bank Indonesia. Those borrowing
\nfrom the banks are their own cronies.<\/p>\n
I don't think the government needs to help banks which are
\nfinancially unsound and have disadvantaged people. They must be
\nquickly liquidated. Let the shareholders, pursuant to the
\nprevailing laws, assume their responsibilities to customers.<\/p>\n
Do not sacrifice the people all the time because they have
\nsuffered enough as a result of the monetary crisis brought about
\nby business tycoons, including these financially unsound banks.
\nUnlucky indeed is the fate of the people.<\/p>\n
SUHARSONO HADIKUSUMO<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/suspension-of-banks-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }