IBRA fights bankcruptcy claim against Tirtamas Group

IBRA fights bankcruptcy claim against Tirtamas Group

JAKARTA (JP): Indonesian Bank Restructuring Agency (IBRA)
blocked an attempt by the Harawi Group -- the former majority
shareholder of the now defunct Bank Papan Sejahtera -- to have
the Tirtamas Group declared bankrupt.

Harawi Group's lawyer Lucas S. Halim from Lucas S.H. &
Partners said IBRA decided last week not to continue to fight the
case following the Supreme Court's rejection of the bankruptcy
claim by Bank Papan at the appeal level in mid-May.

"IBRA wants the case to stop here. But, I don't know why,"
Lucas told The Jakarta Post on Tuesday.

Lucas said he was sad about IBRA's decision of not proceeding
with the case to Supreme Court for review.

"I am afraid that this sets a bad example for the whole
domestic legal practice and will give the next government
difficult grounds to save and recollect state assets from the
irresponsible borrowers," he said.

Bank Papan was one of 38 banks closed and transferred to IBRA
in mid-March.

The board of directors and commissioners of banks that were
transferred to IBRA, according to Government Regulation No. 17 of
1999, lose the authority over the bank to IBRA.

The Supreme Court turned down Bank Papan's bankruptcy claim on
PT Semen Cibinong and PT Tirtamas Majutama of Tirtamas Group
(controlled by Hashim Djojohadikusumo) in late May, upholding the
previous decision made by the Jakarta Commercial Court.

The management of Bank Papan was not in a position to issue
power of attorney given that the bank's assets were now under the
control of the Indonesian Bank Restructuring Agency (IBRA),
according to the Supreme Court appeal decision then.

An economist from Harawi Group told the Post all IBRA had to
do was give power of attorney to their lawyer so the case could
be brought to the Supreme Court for civil review.

"I will consult IBRA about why they backed down on trying to
save a meaningful portion of state assets through Bank Papan," he
said.

Harawi Group is the business unit of the country's largest
Muslim organization Nahdlatul Ulama.

IBRA deputy General Counsel for litigation Widodo Mudjiono
denied on Wednesday that IBRA had blocked a bankruptcy claim on
Tirtamas Group filed by the Harawi Group, saying that IBRA has
planned a different strategy towards reaching the same goal as
Harawi Group.

"We will refile the bankruptcy claim on Tirtamas Group for the
sake of the state wealth," Widodo told the Post.

However Widodo could not yet tell how soon the refiling would
be submitted, but assured that IBRA had a full commitment to
repeat the bankruptcy claim to continue Harawi's fight in the
case against Tirtamas Group.

He said that the substance of the case had never been touched
by the court because, according to the court, the case contained
a procedural defect.

The court insisted that the power of attorney issued by Bank
Papan to its lawyer was not valid, he said.

"So, the best strategy is that to throw away the case now, and
begin with the new one with the power of attorney issued by us
(IBRA)," Widodo said. (udi)