Bukopin, Bank Muamalat recapitalization on hold

JAKARTA (JP): The recapitalization program of Bank Bukopin and Bank Muamalat Indonesia, both private banks, is being hampered by the difficulties in recouping some US$84.5 million in government- guaranteed deposits at the now defunct Bank Umum Nasional (BUN), according to a would-be investor.

Association of Indonesian Wood Panel Producers (Apkindo) chairman Abbas Adhar said on the weekend that the deposits could not yet be released due to uncertainty over ownership.

He said the Indonesian Bank Restructuring Agency (IBRA) was confused over whether the money belonged to Mohamad "Bob" Hasan, the former chairman of Apkindo and owner of BUN, or to the association.

"The money belongs to Apkindo, the public accountant has proven that already," he was quoted by Antara as saying.

"We have sent six letters to IBRA requesting the release of the deposits," he said, adding that the association would have to ask President B.J. Habibie for help if its request was not honored immediately.

He explained that the 120 members of Apkindo had agreed to inject some Rp 150 billion ($16.66 million) into Bukopin and Rp 50 billion into Bank Muamalat.

He said that once the banks were recapitalized they promised to channel credit to the agriculture, plantation and forestry sectors, particularly small and medium-sized businesses.

The government requires all commercial banks to have a minimum capital adequacy ratio of 4 percent by the end of March.

The government plans to provide 80 percent of the recapitalization funding, while the remaining 20 percent has to come from individual banks or private investors.

Bob Hasan, known as a longtime golfing partner of former president Soeharto, was the chairman of Apkindo until its monopoly on plywood exports was scrapped early last year by the International Monetary Fund.

During his chairmanship, Apkindo set an export quota for each member, as well as an export price for importing countries, and collected fees ranging from $6 to $20 per cubic meter of exported plywood.

BUN was closed down in August last year as part of the government's efforts to clean up the country's banking industry.

The government, through IBRA, has guaranteed all deposits in the country's banks since January to prevent widespread panic. (rei)