Govt rejects out-of-court conditions by closed bank

Govt rejects out-of-court conditions by closed bank

JAKARTA (JP): Minister of Finance Mar'ie Muhammad and Bank
Indonesia Governor Soedradjat Djiwandono rejected through their
lawyers yesterday an out-of-court settlement proposed by a
businessman whose bank was closed by the government earlier this
month.

Probosutedjo, who is President Soeharto's half-brother, is
suing the finance minister and the central bank governor in the
Jakarta Administrative Court over the closure of Bank Jakarta,
along with 15 other ailing banks, on Nov. 1.

Probosutedjo said last week he would withdraw his lawsuit only
if the government gave his bank a clean bill of health.

"The plaintiff's out-of-court settlement proposal cannot be
accepted by the defendant because the government's decision (to
close the ailing banks) has been carried out and cannot be
revoked," the court's chief judge, Lintong Oloan Siahaan, said
after presiding over a closed session between both sides at the
court.

The defendants are willing to include Bank Jakarta officials
in the team in charge of liquidating the bank's assets to
reimburse its account holders.

The government's lawyer, A Zen Umar Purba, said Probosutedjo's
proposal was rejected because it concerned the very reason it was
closed.

"The decree cannot be annulled... as it has been applied in
the public's interests," Purba said.

Probosutedjo last week laid out four conditions in his out-
court-settlement proposal to the government.

One of the conditions was that Bank Jakarta be allowed to
reimburse its account holders with its own funds. Another was
that it be given the authority to collect money from its debtors.

Yesterday's rejection of the proposal by the government means
the lawsuit will now go to court.

Siahaan has set up a panel of judges, chaired by himself, to
try the case.

A court session next Wednesday will decide whether the lawsuit
has met the procedural criteria to be tried.

Probosutedjo is one of two banks owners who filed suits
against the government for the closure of their banks.

Probosutedjo filed his lawsuit on Nov. 7.

Bambang Trihatmodjo, Soeharto's second son, withdrew his
lawsuit earlier this month citing "national interest" as the
reason. (10)