Bank Mandiri responds

Bank Mandiri responds

We refer to the article Aburizal asks public not to prejudge
Mandiri case that appeared in The Jakarta Post on April 23. We
wish to respond to two paragraphs in the article that are
incorrect.

Paragraph 1: "With prosecutors stepping up their investigation
into a massive corruption scandal involving up to Rp 12 trillion
(US$1.3 billion) worth of bank loans and 33 companies, the
country's senior economics minister asked the public not rush to
pass judgment based on the preliminary results of the
investigation".

Bank Mandiri objects to this groundless accusation of "a
massive corruption scandal involving up to Rp 12 trillion ($1.3
billion) worth of bank loans and 33 companies". Based on the
report by the Supreme Audit Agency (BPK), which was made
available to the local press even before Bank Mandiri received a
copy, the report did not state any indication of a corruption
scandal.

Last paragraph: "The original loan (i.e. Bakrie Telecom),
which was obtained in April 2003, was restructured in September
2004, with the size of the debt being cut to $516.7 billion after
Bank Mandiri agreed to a "haircut".

Bank Mandiri also objects to the journalist's inaccurate
statement that Bank Mandiri had agreed to a haircut. Bank Mandiri
is prohibited from extending a haircut without approval from the
Ministry of Finance. Bank Mandiri has not provided any haircut
for restructured loans. Thus your statement is misleading and
baseless. We will be happy to provide you with an overview of the
haircut policy in the Indonesian banking system.

Bank Mandiri has always held the Post with the highest regard
as one of Indonesia's leading publications. However, the
publishing of this misleading and inaccurate article has
shattered the bank's confidence in the Post as a credible and
respected publication.

NIMROD SITORUS, Managing Director & Corporate Secretary, Bank Mandiri,
Jakarta

Note: Thank you for your correction.

--Editor