Hanil Bakrie sues IBRA

JAKARTA (JP): Finance company PT Hanil Bakrie Finance (HBF) filed suit on Wednesday against the Indonesian Bank Restructuring Agency (IBRA) for the latter's alleged failure to pay US$4.5 in a guaranteed claim.

Faisal Tadjuddin from Taira Faisal & Panggabean law firm said that his client tried in vain to recoup its claim from IBRA since last year. The suit was filed in the South Jakarta District Court.

"My client finally filed this lawsuit to defend its rights which have been abused by IBRA," he said.

He said HBF extended a $4.5 million loan to local finance company PT Ongko Akita Finance with the now defunct Bank Umum Nasional (BUN) as the loan guarantor in October 1997. BUN is a sister company of Ongko Akita.

BUN was part of the government's mass liquidation of banks late last year under the bank restructuring program.

HBF argued that under the government blanket guarantee program, IBRA was obliged to pay the matured debt of commercial banks, including closed ones. (udi)