Govt picks Cacuk to replace Glenn as IBRA chief

Govt picks Cacuk to replace Glenn as IBRA chief

JAKARTA (JP): Minister of Finance Bambang Sudibyo confirmed on
Wednesday that Cacuk Sudarijanto would replace Glenn Yusuf on
Thursday as head of the Indonesian Bank Restructuring Agency
(IBRA), which manages more than Rp 600 trillion (US$83.3 billion)
in state assets.

Bambang said the decision was not sudden nor unexpected, but
he declined to elaborate on the reason.

"Over the past two months the government has evaluated IBRA's
performance and the conclusion is that Glenn should be replaced.
And vice chairman Cacuk fits the bill," Bambang said.

He added that it was considered an opportune time to replace
Glenn, who has headed the agency since June 1998.

Glenn told reporters on Wednesday that he was tired of leading
the agency.

"I have intended to return to the private sector since several
months ago. But I cannot simply resign without preparing my
successor," he said.

He has retained his position as president of state-owned PT
Danareksa Securitas securities company.

He said he knew of his forthcoming replacement soon after
Cacuk was installed as IBRA's deputy chairman in late November
and the agency was restructured and put directly under President
Abdurrahman Wahid.

Glenn denied his replacement was related to the jostling of
political parties to gain control of the country's most powerful
economic organization.

IBRA controls some Rp 600 trillion in equity and debt from
state banks and closed and taken-over private banks and is
central to private-sector debt and bank restructuring, the
fundamental economic issues facing the country.

It has special extrajudicial powers to seize and liquidate
assets of recalcitrant debtors, replace their management and
override existing contracts.

The "axis force" of Muslim political parties, which was
crucial in ensuring the election of Abdurrahman in October, had
reportedly lobbied for months to have Glenn replaced, especially
after his position was weakened by the agency's involvement in
the politically charged Bank Bali scandal.

"But then even if it had any political element, that would be
all right if the final objective is to make things better and the
appointed person is competent. One should not worry too much
about what political camp he is from," Glenn added.

He denied he was replaced because he performed poorly.

"My record is not that bad. We have thus far raised Rp 10
trillion of the Rp 17 trillion revenue target set for us until
the end of March. I think the remaining Rp 7 trillion would
easily be raised by the forthcoming sale of government shares in
PT Astra International and Bank Central Asia."

He said IBRA needed a chief who could effectively communicate
and deal with the public and officials, especially the House of
Representatives, because the agency was subject to public
accountability.

Glenn said Cacuk's impressive record at state-owned domestic
telecommunications provider PT Telkom in the mid-1990s proved his
managerial competence and leadership.

IBRA spokesman Christovita Wiloto said Glenn's replacement was
unlikely to effect significant changes in the agency's working
system, strategy and program.

"We already have our working program until 2004 and this
programs seems to run well. Glenn's successor needs only to take
care of fine-tuning," Christovita said.

Analysts consider Cacuk to be an able manager who is close to
the President, although some have raised concerns over his links
to former minister Adi Sasono, one of the country's leading
proponents of a "people's economy" system which proposes
redistribution of assets from conglomerates to cooperatives and
small enterprises outside the market mechanism.

Cacuk was appointed to the new position of deputy chairman of
IBRA in late November, at the same time as Abdurrahman removed
the agency from the Ministry of Finance and placed it directly
under his control.

Cacuk was previously director of Bank Mega, a small, private
institution, and director general for cooperatives and small
enterprises under Adi Sasono in 1998. (prb/udi/vin)