Awaiting dignified solutions to debts

"Crito, I owe Asclepius a cock, would you settle it for me?"

Those were Socrates' last words on his deathbed, having swallowed poison for his execution. This dialog later between a teacher and his student became famous because it encapsulated Socrates' quality and values as a human being. He believed that a loan, however small, should be repaid.

The relationship between loans and dignity is becoming looser. We are witnessing the unceasing wrestle between debtors and the state involving trillions of rupiah.

The government intends to extend the shareholders' obligation for settlement -- the obligation of ex-owners of banks that collapsed during the economic crisis -- to a maximum period of 10 years. But the plan immediately came in for harsh criticism. The previous schedule called for them to settle by the end of this year.

Loans made to thousands of small and medium-sized businesses -- those with a turnover of less than Rp 5 billion -- are also stagnating at the Indonesian Bank Restructuring Agency. The total amount of debts within this category is estimated at more than Rp 4 trillion.

The latest warning has come from Kwik Kian Gie, State Minister for National Development Planning/Head of National Planning Board. The minister, who is often regarded as being resistant to mainstream views, expressed his concern last Saturday that there might be loans belonging to tycoons within the small to medium- sized business category.

As some parties might take advantage of the government's kindness, it is better to enhance alertness. All the more so, because it seems that what one owes is no longer attached to one's dignity.

-- Bisnis Indonesia, Jakarta