IBRA leaves Rp 15.1t of unsold assets
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.