Central bank advises public not to panic
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)