Central bank advises public not to panic
JAKARTA (JP): The governor of Bank Indonesia, Soedradjad Djiwandono, dismissed rumors yesterday that more banks would be liquidated and urged people to remain calm.
Soedradjad said the rumors were being spread by irresponsible people who wanted to stir up trouble.
The government had liquidated only 16 banks as announced Saturday.
"This sanction will not affect other banks and they will continue to process daily transactions as usual," Soedradjad said.
"There is no need for people with savings in banks -- whether in the form of savings, term deposits or uncleared checks -- to panic just because we closed 16 banks Saturday."
Soedradjad, Minister of Finance Mar'ie Muhammad and Minister of Trade and Industry Tunky Ariwibowo held a joint press conference yesterday to offer reassurance, among other things, to employees of liquidated banks.
Mar'ie said the government would continue paying the salaries of bank employees for several weeks, as part of the government's efforts to reduce the burden.
"The government will pay three months worth of salary to them based on their last salary ... This is only an advance payment ... and we will work closely with the Ministry of Manpower to deal with the massive layoff," Mar'ie said. He did not disclose the number of employees or the amount of money to be allocated.
The minister also pledged that the government would help the employees find new jobs.
"Of course this will take time and it's not easy to find new jobs for them but we will do our best," Mar'ie said.
Security
Dozens of police officers were seen guarding the head office and branches of liquidated banks across the city yesterday.
The number of officers stationed at each office varied, depending on the size of the premises, an officer from the West Jakarta Police precinct, who did not want to be named, said.
"Each police precinct is responsible for the security of all banks located within their area," the officer said.
In West Jakarta, officers safeguarded the offices of liquidated banks and also checked the ATMs and offices of other banks in anticipation of a rush, he said.
In South Jakarta, officers guarded bank branches, including Bank Anrico in Pasar Minggu, Bank Industri in Mampang, Bank Andromeda on Jl. Saharjo, and BHS on Jl. Soepomo and in Pancoran.
Officers said customers began flocking to the banks at 8 a.m.
A customer of Bank Dwipa's head office on Jl. Sudirman, in Central Jakarta, said he was upset because security guards at the bank could not give him detailed information.
"I can accept that the bank was closed. After all, it's been shaken by the corruption case anyway. But, I'm very upset because no one here can give me any damned information on how on earth I can get my money back," the man said.
Another disappointed customer, Hendra, of BHS's head office on Jl. Gajah Mada said customers were not allowed to enter the building and none of the bank's staff were brave enough to talk to the customers.
In Tangerang, hundreds of account holders congregated at the BHS and Bank Guna International branches on Jl. Kisamaun yesterday morning.
But the two fully guarded banks were closed and no officials were available to provide customers with information.
There were similar scenes in Bogor as hundreds of people headed to the five BHS branches in the city early yesterday.
The employees of most liquidated banks came to their former workplace about 7 a.m. yesterday.
Many tried to gain a better understanding of events over the weekend by sharing their grievances and feelings with fellow employees.
An employee of Anrico's Pasar Minggu branch, who asked for anonymity, said she was very worried about her future and about her savings in the bank.
An employee at BHS' Gajah Mada branch, Ilham, said he and his friends were not worried about their savings because the bank's board of directors had guaranteed to reimburse all employees.
But he remained concerned about his future employment. (team)