IBRA grants debt-free status for Hendra, Ibrahim
IBRA grants debt-free status for Hendra, Ibrahim
The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) has issued former
bank owners Hendra Liem and Ibrahim Risjad official debt-free
status, which could protect them against future charges for past
banking crimes.
IBRA spokesman Rohan Hafas said on Monday that the letters
attesting to their debt-free status were issued on Friday.
Hendra, former owner of Bank Budi Internasional, and Ibrahim,
former owner of Bank Risjad Salim Internasional, respectively
owed Rp 17.3 billion and Rp 332 billion in debt to the
government.
The two businessmen are among 13 ex-bankers approved by the
powerful Financial Sector Policy Committee (FSPC) to be given
debt-free status, after they were deemed cooperative by IBRA in
settling their debts through a combination of cash (30 percent)
and assets (70 percent).
The FSPC groups together senior economics ministers.
IBRA has also granted debt-free status to businessmen
Sudwikatmono, former owner of Bank Surya with a debt of Rp 1.88
trillion, and The Nin King, former owner of Bank Dana Hutama with
a debt of Rp 23 billion.
In the wake of the 1997-1998 financial crisis, the government
provided around Rp 144.5 trillion in liquidity support facility
to bail out troubled banks. However, many of the now former bank
owners have been accused of misusing the funds -- by channeling
them to affiliated businesses and other banking crimes.
After years of unfruitful attempts to force 39 former bank
owners to fully repay their debts, IBRA proposed an incentive
scheme under which indebted businessmen would not be tried for
past banking crimes if they are cooperative in repaying their
debts.
The incentive scheme raised strong public criticism that such
white-collar crimes would go unpunished.
Other indebted businessmen approved for debt-free status
include: Hashim S. Djojohadikusumo, Njoo Kok Kiong, Honggo
Wendratmo, Suparno Adijanto, Andy Hartawan, Ganda Eka Handria,
Philip S. Widjaja, Mulyanto Tanaga and Anthony Salim.
Salim is the former controlling owner of Bank Central Asia.
It is not clear when IBRA will officially grant the debt-free
status to these ex-bankers.
The FSPC is currently considering approving Siti Hardijanti
Rukmana, the eldest daughter of former president Soeharto and
former owner of Bank Yama, for the same status.