Temenggung appointed as new IBRA chief<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Months of speculation ended Friday when the government fired I
\nPutu Gede Ary Suta as the chairman of the powerful Indonesian
\nBank Restructuring Agency (IBRA), replacing him with Syafruddin
\nA. Temenggung.<\/p>\n
The decision will make Temenggung the seventh IBRA chairman in
\njust over four years.<\/p>\n
State Minister of State Enterprises Laksamana Sukardi
\nconfirmed the reshuffle on Friday after keeping quite over the
\nissue since news of it leaked about two months ago.<\/p>\n
\"I confirm that it was decided yesterday (Thursday) to
\nreplace the head of IBRA, \" Laksamana told reporters in a signing
\nceremony with the Coordinating Investment Board (BKPM).<\/p>\n
According to him the reshuffle is routine, but analysts have
\nlong said Ary Suta's bent for controversial decisions would cost
\nhim his job one day.<\/p>\n
The outgoing chairman drew fire for policies that appear to
\nfavor conglomerates, and for overriding procedures at IBRA to
\nshortcut bureaucracy but what some officials at the agency said
\nwas to seize more control.<\/p>\n
Laksamana said changes at IBRA's leadership were needed to
\nensure what he called \"built in control\".<\/p>\n
Whoever chairs IBRA will have authority over some Rp 600
\ntrillion (about US$63 billion) worth of state assets under IBRA.<\/p>\n
The assets were taken over when IBRA bailed out local banks
\nfrom the devastating impact of the late 90's financial crisis.<\/p>\n
Getting the assets back to work is key to revitalize a
\nstruggling private sector - once a pillar of economic growth but
\nwhose debts have turned now into a liability to the state budget.<\/p>\n
In spite of this urgency, progress on IBRA's asset sales have
\nbeen painstakingly slow with only two years left before its 1998
\nmandate expires.<\/p>\n
Against this backdrop comes Temenggung's appointment.<\/p>\n
The secretary to the Financial Sector Policy Committee (FSPC),
\nwhich oversees Rp 1 trillion (about US$106 million) worth debt
\nrestructuring deals and asset sales at IBRA, Temenggung is no
\nstranger to the problems pressing the agency.<\/p>\n
He helped negotiate deals with tough creditors such as Japan's
\nMarubeni Corps, with which IBRA was in talks to settle debts of
\npetrochemical giant PT Chandra Asri.<\/p>\n
Temenggung is supervising the settlement of around $10 billion
\nin debts by some of the country's large conglomerates, who have
\nbeen neglecting payment over the past four years.<\/p>\n
On the downside, analysts said, was his lack of practical
\nknowledge in the restructuring of banks and debts.<\/p>\n
His little known track record and lack of political clout
\ncould also spell trouble in a place where political undercurrent
\nrun strong, they said.<\/p>\n
His appointment made few waves in trading at the currency
\nmarket, with one analyst at a foreign bank saying that attention
\nwas slim.<\/p>\n
The rupiah gained to 9,360 but more on news of an imminent
\ndisbursement of around $400 million in aid from the International
\nMonetary Fund (IMF), he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/temenggung-appointed-as-new-ibra-chief-1447893297",
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"sponsor": "Okusi Associates",
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