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