BI vows to solve Bank Arta Prima problem
BI vows to solve Bank Arta Prima problem
JAKARTA (JP): Bank Indonesia Governor Soedradjad Djiwandono
has vowed to solve all banking problems, including the recent
Bank Arta Prima problem.
But he said not all banking problems could be solved quickly.
"Many will take a relatively long time to solve," he said
after attending a ceremony to celebrate noted economist Sumitro
Djojohadikusumo's 80th birthday here Friday night.
Soedradjad said the central bank would need time to solve the
Bank Arta Prima problem. "We have to check its management, assets
and shareholders, and this will surely take time," he said.
The problem, a promissory notes scam, came to light when the
widely diversified Artha Graha group bought the bank on May 17
from PT Jagata Primabumi, which bought it from Gunung Agung
Group.
Reports say that the Artha Graha group bought the bank through
Bank Indonesia which had taken it over from PT Jagata Primabumi
because of the promissory notes scam.
When buying Bank Arta Prima from Gunung Agung, PT Jagata had
agreed to take over Gunung Agung's debts to the bank of Rp 187
billion and to other financial institutions of Rp 177 billion.
PT Jagata asked Gunung Agung to issue promissory notes
(promes) worth Rp 324 billion to settle the debts.
Jagata failed to settle the promes.
The Artha Graha Group promised to inject fresh funds into the
bank but refused to take over the promissory notes worth Rp 324
billion (US$94.3 million) although they were all underwritten by
the bank.
Six businessmen were arrested recently by police for the scam.
They included Made Oka Masagung, a former Gunung Agung majority
shareholder, Kim Johannes Mulia, from PT Jagata, and former
directors and commissioners of Bank Arta Prima.
Soedradjad said that as long as he was still governor, he
would make an all out effort to solve all problems facing the
Indonesian banking industry.
He complained that many people criticized the central bank
without supporting facts.
"But there are many people who have confidence in the central
bank. In fact, our banking conditions are better now than four
years ago," he said.
Soedradjad, who is Soemitro's son-in-law, made a brief speech
at the birthday party on behalf of family members.
Soemitro's birthday was on May 29. The party was postponed
due to the general election.
The party was attended by about 200 people, including cultural
observer Mochtar Loebis, former ministers of mines and energy
Mohammad Sadli and Soebroto, economic adviser to the government,
Widjojo Nitisastro, and a number of presidents of state-owned
banks. (bnt)