Danamon objects to bankruptcy suit

With regard to the article Danamon faces bankruptcy suit published in The Jakarta Post on April 9, 2001, on page 9, our client PT Bank Danamon Tbk, raises objection to some of the accounts in the article.

The objection is based on the following legal grounds:

1. The amount of the debt is still in dispute. Bank IFI has put a figure on the outstanding debt, namely US$12 million. This figure is totally unreasonable and out client, PT Bank Danamon, is prepared to prove and fight for it. The figure of the interest is much bigger than the figure of the principal.

It should be noted that according to the Supreme Court's judgment No 2899K/Pdt/1994 dated Feb. 15, 1994, the debtor's debt has been declared to be in arrears by its bank (creditor).

2. Under Indonesian Bankruptcy Law, the only party (institution) which has the right to file a bankruptcy petition with the commercial court against PT Bank Danamon Tbk or any other bank (debtors) is Bank Indonesia.

This also applies to a bankruptcy petition against securities companies. In this case, only the Capital Market Supervisory Agency (Bapepam) has the right to file a bankruptcy petition with the commercial court against a security company.

In the light of the above matters, we are of the opinion that the statement saying that a bankruptcy petition against PT Bank Danamon has already met existing regulations is groundless and totally untrue.

3. On this occasion, we would also like to draw the public's attention to resist being easily affected by any information on bankruptcy issues which might be misleading.

AMIR SYAMSUDDIN, S.H.

Advocates & Solicitors, Legal Consultants

Jakarta