Customers swamp banks for refund

Customers swamp banks for refund

JAKARTA (JP): Customers of the 16 liquidated private banks
began flocking to the offices and branches throughout the country
of their banks, and the state-banks appointed to payout their
deposits.

Customers queued at the liquidated banks' offices to get
cheques to be cashed at three appointed state banks -- Bank
Negara Indonesia (BNI), Bank Rakyat Indonesia (BRI) and Bank
Dagang Negara (BDN).

The 16 ailing banks were closed by the government on Nov. 1 as
part of the International Monetary Fund's reform package to
restore confidence in the country's economy.

The situation at most of the 71 branches of the three state
banks in Jakarta was not as hectic had been predicted.

Customers patiently waited for their turns to be served at the
banks.

Some were relaxed, others tried to stay calm despite their
worries over the limitation on payments by the banks.

Small account holders with less than Rp 20 million (US$5,900)
were fully reimbursed, big account holders will have to wait
until the closed banks have liquidated their assets.

The government has urged customers not to withdraw their money
in cash but to open new accounts, or transfer their money
directly to their already existing accounts at other banks.

Peter, a customer of the liquidated Bank Harapan Sentosa (BHS)
was afraid that he would not get the remaining Rp 80 million
(US$24,242) in his account.

He began queuing with other BHS' customers at BRI's Jl. Otista
branch in East Jakarta at 9 a.m. The bank had served an
estimated 185 customers by noon.

There were not as many customers withdrawing their money
yesterday as had been expected.

"The customers were reluctant to come today, maybe because
they thought that the banks might have been very crowded on the
first day," Aning, a teller at the BDN's Matraman branch in East
Jakarta, said.

Some banks, including those in Bandung, West Java, anticipated
the possibility of a rush by setting withdrawal schedules.

The head of Bank Indonesia's (central bank) office in West
Java, Warsono Santosa, urged depositors to pay attention to the
payment schedules.

"Please come to the banks in line with the schedules. That
will help reduce the possibility of overcrowding," he said in
Bandung.

A depositor at BHS' head office on Jl. Gajah Mada in West
Jakarta said it only took 10 minutes to get his cheque ready.

But, hundreds of BHS' customers in Bogor, West Java, were
confused and very upset because they could not cash their cheques
at the BRI branch.

A customer named Yatni said the cheque issued to her by BHS
was not accepted there because the signature on it looked
different to the official one given to the bank.

"The signature printed on my cheque was different from those
which could be cashed. BRI officials said they could accept only
the cheques which bore a round-shaped signature," she said.

No robberies were reported in connection with cash
withdrawals.

City Police spokesman Lt. Col. E. Aritonang said his office
had deployed some 10,000 officers to safeguard the withdrawals.

Aritonang told both the customers and the banks not to worry
about safety because many police personnel had been assigned to
help and guard them.

An officer said dozens of personnel were assigned to guard
BDN's branch on Jl. Matraman in East Jakarta.

The officer, who asked for anonymity, said that the police
were ordered to ride motorbikes in a bid to enable them to move
faster in traffic jams.

According to Aritonang, at least 20 officers were assigned to
each of the head offices and branches of both the liquidated and
paying banks.

"We put more officers at bigger offices."

"There are around 4,000 officers who routinely patrol bank
sites and on the streets. Some 3,000 others are put on as
reserves," Aritonang said.

He said many customers had asked for police protection while
they took their money to other banks.

"Some of customers were transported in police trucks," he
said.

He said his men were ready to face any increase in the rate of
snatch and steal cases on the streets during the 70-day period of
withdrawals.

But, many officers predicted that most crooks would not
operate on the streets during the first days of the payout
period.

"They are smart enough to wait a while. They don't want to
take the risk of being caught by the hundreds of officers who
pack the banks and streets these days," an officer from the
police mobile brigade said.

A female employee at BHS head office here said she and many of
her friends were upset about the liquidation which would probably
result in their dismissal.

"I'm going crazy. Here I am calming the customers, assuring
that they will get their money back. But, what about me, what
about my job?" said the mother of two. She tried to hold back her
tears as she kept smiling for the customers.

Some 137 employees of BHS' branch in Medan, North Sumatra,
went to the local Legal Aid Institute office to ask for its help
in getting their rights as bank employees. (team)