IBRA: Racing against time to meet targets

IBRA: Racing against time to meet targets

Burdened with targets for the state annual budget and various conflicts of interest, the Indonesian Bank Restructuring Agency (IBRA) seems to be racing against time in its efforts to sell assets under its control by the end of this year. The assets are not only those targeted long ago, but also include some that were largely unknown of.

Viewed from the angle of IBRA's obligation toward the state budget, it does not appear to be problematic. The more assets sold, more swiftly, the better. But viewed from another perspective, some people can see the more incredulous aspects. Suspicious questions will inevitably arise when it is later found out that there have been quick sales carried out behind closed doors.

The BCA divestment is yet to go through the due diligence process by its prospective buyers. According to the schedule, this stage must be completed by the third week of December. Following the final bid by buyers, the signing of the transaction is to be finalized in the fourth week of the same month. Considering the various end-of-year holidays, it is rather difficult to imagine that such a process will be completed in time, unless those involved are willing to sacrifice their holidays.

Let's say everything is finalized (and we hope it is), we will still face a number of sales, known by some as "garage sales", such as the Indomobil assets, which have recently been finalized. All this creates a lot of questions, assumptions and suspicions.

This kind of response is unavoidable, because so far the public have found it hard to fully believe the IBRA's freedom in deciding everything that is within its authority. It is no longer a secret that many vested parties act like vultures and grab any opportunity to reap profits. This can be anybody, including the previous owners of the assets under IBRA's control.

That is why the demand for transparency is a requirement of the utmost importance. The IBRA has to disclose all its activities related to the sales of assets and it has to ensure that no previous owner has returned to get hold of their assets. It is indeed no guarantee that each and every irregularity can be avoided, because when one wants to be tricky, there is always a way.

-- Koran Tempo, Jakarta