Cut of liquidity support loans

Cut of liquidity support loans

Businessman Probosutedjo was quoted in a Jakarta newspaper on
Feb. 8 as saying that he did not want to receive Bank Indonesia
liquidity support loans because the bank would take a cut of up
to 25 percent. It is up to the House of Representatives and law
enforcers to check the veracity of this statement and to take
follow-up steps if necessary.

If Bank Indonesia officials did take a 25 percent cut of
liquidity support loans, it means that 25 percent of the total Rp
164 trillion in loans, or Rp 41 trillion, evaporated. Where could
that money have gone? Bank Indonesia officials, directors of
related banks, finance ministry authorities, powerholders and
their cronies?

On the other hand, if Probosutedjo's statement is not based on
adequate evidence, I recommend that Bank Indonesia officials
demand Probosutedjo withdraw his statement on threat of bringing
him to court.

Perhaps a cross-check of the audit of one of the bigger banks,
e.g. Bank Danamon, by the Supreme Audit Agency can be done to
find where the liquidity support loans went. Were they used
effectively? The money could have been made to disappear in a
very sophisticated way and only experts will be able to detect
the irregularities.

Members of the House of Representatives should not ignore
Probosutedjo's statement and work to discover the truth, because
Bank Indonesia liquidity support loans have become a great
disaster for Indonesia.

WISDARMANTO G.S.

Jakarta