IBRA leaves Rp 15.1t of unsold assets
Tony Hotland, The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) officially ended its mandate on Friday, with unresolved business, including Rp 15.1 trillion (US$1.77 billion) in unsold state assets.
The closure was marked by agency head Syafruddin Arsjad Temenggung handing over IBRA's financial report, accountability report, and list of unsold assets to Minister of Finance Boediono.
The closure of IBRA leaves some 2,400 of its 2,500 employees and officials out of work. Syafruddin will head a team consisting of around 100 former IBRA employees to realize a smooth transition process over a two-month period until April 30.
Syafruddin met with President Megawati Soekarnopoetri on Friday morning. The President issued three presidential decrees. One for the closure of IBRA, one for the establishment of a "clearance team" that would work for six months, and another for the continuation of the bank blanket-guarantee program.
She also put out a governmental decree on the establishment of an asset-management company to handle the remaining unsold assets.
Syafruddin said that the 100 former employees would be paid half of what they got while working for IBRA, and would get no allowances or severance payment after their two-month term expired.
"This team will work with the clearance team led by the Minister of Finance to settle unfinished matters and deal with unsold assets that were not free and clear," he said.
The unfinished matters include liquidation of closed down banks, resolution of shareholder's obligations, audits of IBRA by public accountants, and the Supreme Audit Agency (BPK), and settlement of ongoing business transactions.
The unsold assets are divided into two categories; assets that are "free and clear" in terms of legality, and those that are not. The free and clear assets will be managed by the asset-management company. The total market value of these assets is Rp 10.8 trillion, vastly smaller than their book value of Rp 108.5 trillion.
The market value of assets that are not free and clear is Rp 4.3 trillion, while their book value is Rp 165.76 trillion. These assets will be managed by the clearance team before being submitted to the asset-management company.
"However, the market value of those assets is still subject to revision as this will again be verified by the clearance team and the asset company," said Syafruddin.
Boediono said that the asset-management company was being formulated, and that he had not appointed anyone to chair it. Reports have been rife that IBRA's deputy chairman of the Asset Management Credit Division, Mohammad Syahrial, would take the position.
"The assets handed over to us will be rechecked because we want to clarify things. We're also consulting with BPK because we're largely counting on its audit of IBRA," he said.
Boediono added that IBRA's role related to blanket guarantees that had to be followed up in order to provide assurance for bankers and customers.
His department plans to set up a new unit to take over that role on a temporary basis, pending the establishment of a deposit-guarantee agency.