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)