Bank Jakarta requests operating license as legal battle seesaws

JAKARTA (JP): Bank Jakarta submitted yesterday a request for an operational license despite a letter from the State Administrative High Court ordering that a by-verdict, which allowed the closed bank to reopen, to be disregarded.

Bank Jakarta commissioner Bambang Suroso yesterday submitted the request for an operational license to Bank Indonesia, but the central bank did not give an immediate response, saying that it had to seek legal advice first.

Head of the Jakarta State Administrative Court Lintong Oloan Siahaan maintained yesterday that he would stand by the court's by-verdict allowing Bank Jakarta to operate, despite a letter signed by the chief of the State Administrative High Court, Marcus Lande, ordering him to disregard the by-verdict.

Lintong said he did not know what Lande meant by "to disregard" the by-verdict.

Lintong argued that the by-verdict was issued because it was unfair that Bank Jakarta had to stay closed while it was still appealing its closure in court.

Bank Jakarta was one of 16 insolvent banks closed by the government in November. But it soon after filed a suit at the Jakarta State Administrative Court against the decision.

It also appealed to remain in operation while the case was being heard.

The Administrative Court issued a by-verdict last week allowing Bank Jakarta to reopen while the case was being tried, but the high court then issued the letter ordering Lintong to "disregard" the by-verdict.

A major shareholder in Bank Jakarta is President Soeharto's half brother, Probosutedjo.

Abdul Fickar Hadjar, a lawyer for Bank Jakarta said yesterday that the reopening and running of the bank would require the assistance and cooperation of Bank Indonesia.

"There is a need for easy clearing access, transportation of cash and other services needed from Bank Indonesia," Hadjar said.

The bank remained closed yesterday despite earlier reports that it planned to resume operations.

He said the bank was engaged in "an internal consolidation" ahead of plans to resume operations.

Hadjar also expressed his objection to the letter issued by the State Administrative High Court saying that a mere letter should not have greater power than a court ruling.

"That is just a letter, while we have a court ruling (allowing us to reopen," he said.

Hadjar said Saturday that Bank Jakarta would seek an edict from the Supreme Court on Lande's letter, adding that the letter's content "exceeded the authority of the head of the State Administrative High Court". (10)