Depositors' money at liquidated banks

Depositors' money at liquidated banks

From Bisnis Indonesia

I think the blocking of depositors' money at liquidated banks is no small problem.

The money is the result of years of saving. Some of the deposits may come from a lump sum retirement payment in which the bank interest is used by the retired employee to live on.

If retired people lose their savings, how could they and their family live? Many people could become ill from such stressful circumstances.

I hope the government will allocate IMF funds or ASEAN bilateral aid to pay back people who had deposits of over Rp 20 million at the banks undergoing liquidation.

The Indonesian government receives a 15 percent tax on the interest of savings in Indonesian banks (no such tax is known abroad). The government has been able to collect large revenues from such taxes since 1988.

The question is whether the liquidation of banks -- which keep depositors' money -- violates human rights and the principle of justice in a country based on law. The liquidated banks operated with a permit issued by Bank Indonesia, the government institution which sets the conditions for the establishment of banks and supervises their operations.

EFFENDY

Bandung, West Java