BI and supervisory function
BI and supervisory function
In response to a statement from the head of Bank Indonesia
(BI)'s communications bureau, A. Djaafara, and the director of
BI's Bank Supervision Directorate, Sabar Anton Tarihoran (Suara
Pembaruan, Jan. 27) regarding Bank Global to the effect that:
1. The proceeds from the disbursement of mutual funds must be
collected as cash.
2. The procedure does not conform to usual transactions regarding
charging on the bank's liability side without any entry of cash
funds in the asset side.
3. The BI supervision team was limited in its movement in Bank
Global so that BI found it difficult to conduct tight
supervision.
4. Sabar Anton Tarihoran will explain this matter directly to the
customers.
As Bank Global customers, we would like to express the
following:
1. Which regulation can explain that the proceeds from the
disbursement of mutual funds must be collected as cash? Just
imagine that the mutual funds disbursed are in the amount of
billions of rupiah and you have to collect the money in cash.
This is in conflict with the payment system in Indonesia
because, aside from cash payment, it is also valid and authentic
to have payment through book transfer, through giro accounts and
saving accounts plus LLG and RTGS. BI has itself recommended that
transactions in huge amounts should not be carried out in cash to
prevent money laundering. So, the statement of BI, as the central
bank, contradicts the regulations that BI has issued itself.
2. A procedure that does not conform to usual transactions on the
charging of the bank's liability side without any cash funds
entering the asset side.
This is weird and ironical that the full tasks and
responsibility have been absolutely shouldered by BI, especially
these transactions occurred during the period of BI's special
supervision over Bank Global, from Oct. 27, 2004 up to Dec. 13,
2004. Why didn't BI prevent these transactions and why did it
allow them to happen, instead?
Must, for each transaction, a customer personally go into Bank
Global to supervise the records and book-keeping of the bank's
transactions? If so, what is the purpose of BI's supervision?
It is really shameful that BI, as the central bank and the
only authority to carry out supervision over the activities of
all banks in Indonesia, was powerless in dealing with banks that
should be under its own supervision.
How can the public trust some 140 banks in Indonesia?
3. We agree that Sabar Anton Tarihoran will give a direct
explanation to the customers.
JOHARI et al
Bank Global customers