Bank Indonesia keeping quiet on blocked account
JAKARTA (JP): Bank Indonesia Governor J. Soedradjad Djiwandono has yet to comment on the freezing of an account containing Rp 1 billion (US$45 million) by Standard Chartered Bank.
"I don't want this (case) to be a polemic in the media," the governor told reporters yesterday in response to a question raised by The Jakarta Post.
"This is a sensitive problem. That's why I don't want to make any statement which, of course, is awaited by the disputed parties," Soedradjad said.
It is the first time the governor has commented on the issue after being directed not to pending the outcome of the court case.
The dispute between the foreign bank and the two account holders, Yee Mei Mei and Azusa Matsuyama, started in January when the bank blocked the account.
The bank argued that it froze the account following a suggestion from Bank Indonesia and because of its own prudent policy.
Mei Mei, a Hong Kong national, then filed a lawsuit against the bank for allegedly blocking the account without justification.
In the lawsuit she claimed damages of US$300 million to cover losses she claimed she suffered during the dispute.
On March 5, the Standard Chartered chief executive here, David Hawkins, wrote a letter to the account holders suggesting an out- of-court settlement in which accessibility to the account would be restored on condition that the bank receive written confirmation that the account owners had withdrawn all charges against the bank, both over the funds in the account and the way in which the account was operated, and provided that they withdraw their case.
The proposal was warmly welcomed by Mei Mei, who stipulated that the bank must also restore her name and pay a certain amount of money in reimbursement for material losses.
According to Soedradjad, "basically, Bank Indonesia wants to help banks here carry out their prudent principals, whether related to financial condition, management or transaction activities."
The central bank, therefore, supports the prudent policies of foreign and joint venture banks here, he said.
"It's the duty of Bank Indonesia to support the right (parties)," said Soedradjad.
Last month, head of the central bank's enforcement division, Nur Harun, was quoted as saying by a foreign paper that the bank had not authorize Standard Chartered to freeze the account.
Last week, National Police spokesman Brig. Gen. Nurfaizi said that officers of the central bank also denied ever giving permission to Standard Chartered to block the account.
When contacted yesterday, Nurfaizi said that the investigation of the dispute is still underway. (bsr/hen)