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)