Fixing our banking problems

Fixing our banking problems

With the surrender of the majority of assets, including
shares, owned by ailing banks, the government has become their
majority shareholder, which means it must meet those banks'
obligations to third parties.

Meeting those rights and obligations, however, is not an easy
task. Aside from the legal aspects that are involved, many other
tricky problems must be settled by the government -- for example,
there is the matter of how to maintain good relations with the
banks' customers. Because of the ties that have been established
over the years between the banks and their customers, it may not
be so easy for the latter to immediately connect with the banking
companies' new owners -- the government -- on the same terms.

Of no lesser importance is the problem of selling those banks'
assets, which are mostly fixed. This will be difficult to do
under the circumstances currently prevailing in Indonesia. The
government must therefore not tire in its efforts to secure more
liquid assets from these banks, so that it can at least in part
cover its money requirements without having to resort to
printing.

We are confident that in selling the ailing banks' assets the
team that has been entrusted to fix the ailing banks' problems
will be able to work under optimal conditions, untainted by
corruption, collusion or nepotistic practices.

-- Bisnis Indonesia, Jakarta