IBRA insists ad hoc judges be used in bankruptcy cases

JAKARTA (JP): Legal affairs chief of the Indonesian Bank Restructuring Agency (IBRA) Agustus Sani Nugroho stressed on Tuesday that the agency still wanted independent ad hoc judges to examine its bankruptcy cases despite "resistance" from head of the Jakarta Commercial Court.

Agustus said that the agency was exercising the opportunity provided by the 1998 law on bankruptcy which allowed IBRA to request ad hoc judges for all cases filed in the Commercial Court or bankruptcy court.

"This is a straightforward thing. Why should we make it difficult... Our credibility in the eyes of investors is at stake," he told a small group of journalists.

Agustus was responding to a rejection made by head of the bankruptcy court, Sihol Sitoempul, against IBRA's request to assign ad hoc judges to examine three bankruptcy cases.

Sihol said last week that none of the four ad hoc judges appointed through a presidential decree last year could examine IBRA's cases because the judges had yet to take the oath of office before the Commercial Court.

He said that the ad hoc judges declined to take the oath until the court agreed to allow a "dissenting opinion" to be recorded on the last page of a verdict document to notify when a verdict was reached after a split decision.

Agustus agreed that the dissenting opinion be disclosed to the public so that people would know the decision made by the ad hoc judges and regular judges.

"Let it be transparent," he said.

But Sihol maintained that under normal procedure, a dissenting opinion must be kept confidential in court records and how a verdict is reached should not be disclosed as it might create further arguments and confusion.

Agustus warned that the government must solve this problem quickly as transparency and legal certainty are crucial to the country's economic recovery.

He also pointed out that the assignment of ad hoc judges to examine IBRA's bankruptcy cases was part of the letter of intent agreed by the government and the IMF in January.

Meanwhile, IMF consultant Gregory Churchill said on Tuesday that if existing ad hoc judges declined to take the oath, the government must immediately appoint new ad hoc judges.

He said that the idea of disclosing a dissenting opinion was very positive, but it could not be accommodated by the existing law.

IBRA is filing a bankruptcy petition against three of its uncooperative debtors including trading firm PT ALatief Corporation which owes the agency some US$16.93 million in bad debts, crude palm oil processor PT Sumi Asih (Rp 73.94 billion and $16.73 million), and diversified PT Ometraco Corporation ($53.18 million).

IBRA has lost earlier bankruptcy cases. (rei/udi)