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)