Fri, 03 Dec 1999

Hashim says IBRA's statement `misleading'

JAKARTA (JP): Businessman Hashim S. Djojohadikusumo regretted on Thursday the threat of a senior official from the Indonesian Bank Restructuring Agency (IBRA) to take legal action against him if he failed to settle the obligations of two of his closed banks.

Hashim said the IBRA official had not been involved in the discussion to settle the debts of Bank Pelita and Bank Istismarat.

"As far as we know, Dasa Sutantio has never been involved in discussions and negotiations about these two banks, which were carried out with another officer from IBRA," he said in a press statement, referring to the group head of the asset management investment unit at IBRA.

Dasa said on Tuesday that IBRA would take legal action in January against Hashim if he failed to repay the obligations to the two banks.

Bank Pelita and Bank Istismarat received some Rp 3.2 trillion in government liquidity support last year as the economic crisis deepened.

"The process of settling debts of Bank Pelita and Bank Istismarat is still ongoing," Hashim said.

"These two banks have always fulfilled documentation requirements, as well as a letter of commitment, as requested by IBRA.

"Moreover, discussions have reached the agreed principal timetable. This should be agreed by both sides, in order to settle debts incurred for Bank Pelita and Bank Istismarat."

Hashim is the owner of the diversified Tirtamas Group.

General Manager for Tirtamas corporate relations Jannus Hutapea said Hashim never refused settling the debts of the two banks.

"He has even signed a letter stating that all the shareholders of the two banks are willing to settle their obligations to IBRA, based on mutual agreement," he said.

"Hashim is now out of the country, and will return at the end of the week to meet with appropriate officials to correct the misleading report by Dasa Sutantio." (rei)