Fri, 26 Apr 2002

'IBRA reshuffle still possible'

The Jakarta Post, Jakarta

The government said it may replace one or two of the five deputy chairmen at the Indonesian Bank Restructuring Agency (IBRA), seemingly in contradiction of IBRA's earlier claim of no plans for another reshuffle.

"We might replace one or two, but I think not all of them because we don't want to disrupt continuity," State Minister of State Enterprises Laksamana Sukardi told reporters on Thursday.

Laksamana is in charge of appointing IBRA deputies as his office supervises the agency.

A day earlier, IBRA's newly appointed chairman Syafruddin A. Temenggung introduced changes to IBRA's organizational structure, but denied that he would also replace its deputies.

Syafruddin may propose the deputies, but the final say rests with Laksamana.

According to Laksamana, Syafruddin mentioned to him earlier about replacing some of the deputies.

"This depends on him (Syafruddin), we haven't had any formal talks on this yet. Important is that his team is solid," he said.

IBRA has five deputies whom Laksamana appointed last December when the agency was chaired by I Putu Gede Ary Suta.

Laksamana said replacing the deputies should help Syafruddin work at the agency. He is the seventh chairman IBRA has had in the last four years.

On Wednesday the government also appointed Lukita D. Tuwo as the new secretary to the Financial Sector Policy Committee (FSPC). The post was previously held by Syafruddin.

The FSPC supervises debt restructuring and asset sales talks that have a value of more than Rp 1 trillion (about US$106 million).

IBRA controls some Rp 600 trillion in assets, which it took over from failing banks after bailing them out during the late 90s financial crisis.

Locked inside IBRA, these assets add little to the growth in the economy, while if released -- i.e. sold to private investors -- and better managed under the private sector, they may be able to contribute more.

With only about one-third of those assets sold off, IBRA may have a tough time unloading the remaining two-thirds before its six-year mandate expires in less than two years.