Tue, 01 Jul 2003

IBRA signs new deal with debtors

M. Taufiqurrahman, The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) brought 10 former bank owners to the negotiating table on Monday for the signing of an agreement on the extension of the APU (Deeds of Indebtedness) scheme after they failed to fully pay their debts by the June 30 deadline.

Deputy chairman of IBRA for asset management investment Taufik Ma'roef said those who signed the agreement were former bank owners who had surrendered their assets to IBRA but failed to pay their debts in cash by June 30.

"Currently, we are appraising their assets before they are offered in a public sale. And if we find that the surrendered assets are not sufficient to pay the debts, they will have to be topped up before the start of IBRA's shutdown in September," he told reporters here.

Taufik said that among the debtors were The Tje Min of Bank Hastin, Ulung Bursa of Bank Lautan Terbuka and Nirwan Dermawan Bakrie of Bank Nusa Nasional.

A source at IBRA said that apart from these three, the other debtors who had signed the agreement were shareholders of Bank Bira, Bank Sewu Internasional, Bank Lautan Berlian, Bank Tamara and Bank Namura Internusa.

These banks were closed down by the government following the late 1990s financial crisis.

The APU scheme covers debts worth Rp 18 trillion (US$1.96 billion), which must be repaid through a mixture of assets and cash settlements.

Other repayment schemes agreed upon in 1998 are the Master of Acquisition and Settlement Agreements (MSAA) and the Master of Refinancing and Notes Issuance Agreements (MRNIA).

The three schemes apply to a total of 35 ex-bank owners, who opted for settlements to avoid prosecution after they allegedly misused Rp 138 trillion in state funds.

Bank Indonesia injected the money into the banks to bolster their liquidity amid massive runs during the height of 1997 economic crisis.

Separately, IBRA's communications division head Raymond van Beekum told The Jakarta Post that if the debtors failed to settle their debts by September, IBRA would soon bring their cases to court.

Taufik also revealed that as of Monday, three major debtors under the APU scheme had settled their debts to the agency.

"The three debtors are Hendra Liem, The Nin King and Siti Hardijanti Rukmana (Mbak Tutut)," he said, referring to the owners of the disbanded Bank Budi Internasional, Bank Danahutama and Bank Yakin Makmur respectively.

Mbak Tutut, the daughter of former president Soeharto, has paid Rp 213 billion in cash to cover her debts to IBRA, while Hendra and The Nin King have paid Rp 17 billion and Rp 18 billion respectively.

As for five non-cooperative debtors who are still facing down IBRA, the agency was in the process of filing lawsuits against them, Taufik said.

"IBRA's legal division is currently preparing law suits against these errant debtors. So by the time we go to the police, these suits will be ready," he said.

Last November, IBRA chairman Syafruddin Temenggung pressured debtors by threatening to file criminal charges against Bank PSP, Bank Intan, Bank Bahari, Bank Metropolitan and Bank Nomura for being uncooperative in settling debts worth Rp 2.18 trillion to the agency.