IBRA steps up pressure on indebted ex-bank owners
IBRA steps up pressure on indebted ex-bank owners
A'an Suryana, The Jakarta Post, Jakarta
The Indonesian Bank Restructuring Agency (IBRA) is stepping up
pressure on indebted former bank owners, who have been
uncooperative in settling their debts with the government since
1998.
IBRA has given nine ex-bank owners three months to repay debts
or risk legal sanctions including imprisonment.
The nine bankers were considered "uncooperative" in repaying
their debts based on the findings of a team of legal experts
assigned by the government to review the performance of 33 former
bank owners in repaying debts. The team has yet to complete its
review on all the debtors.
The move by IBRA is seen as a last ditch effort by the
government, after previous attempts to force the bankers to repay
debts had been unsuccessful.
The former bank owners had received more than Rp 144 trillion
in central bank liquidity support funds in the late 1990s. But
most of the funds had been misused, several banks had channeled
the funds into affiliated firms.
Seven of the nine bankers met with IBRA Chairman Syafruddin
Temenggung last week.
They were Ganda Eka Handria from PT Bank Sembada Arthanugraha,
Mulianto Tanaga and Hadi Wijaya Tanaga from PT Bank Indotrade,
Thee Nin Khong from PT Bank Baja International, Fadel Mohammad
from Bank Intan, Liem Hendra from Bank Budi International and
Thee Nin King from Bank Danahutama. All of these banks have been
shut down.
The former bank owners emerged from the meeting with mixed
reactions. Some vowed that they would fulfill their obligations,
while others strongly objected to the cited amount of debt owed.
The latter group of the bankers disputed IBRA's version of the
bankers' debts, saying that the amount had been inflated by IBRA
officials.
Hardjono (eds: one name), a lawyer defending the debtors, said
that the difference was as high as 50 percent.
He claimed that the debtors had filed their versions to IBRA
on several occasions, but they had been ignored.
"Therefore, we will not pay the debts unless the difference is
settled," said another lawyer Hermawan Pamungkas recently, during
a television talk show here.
Meanwhile, IBRA dismissed the charges of miscalculation.
Agency legal division director Robertus Bilitea said the
recalcitrant debtors had actually agreed on the amount of their
debts, as stipulated in an out-of-court settlement agreement
(PKPS) with the government in 1998.
"It is quite weird. They had agreed and signed the agreement,
but now, they deny it," Robertus told The Jakarta Post on
Saturday.
He added that the ex-bank owners should have lodged complaints
about the difference in the past.
"However, they failed to do that. They only reacted now, after
we decided to carry out tougher measures," said Robertus.
Robertus went on to say that IBRA's version was valid,
moreover it was produced by independent parties and
professionals, who have carried out a financial audit and due
diligence on the banks.
Meanwhile, economist Raden Pardede praised the tough measures
planned by IBRA, saying that the move would restore investor
confidence to Indonesia.
"This could create a momentum for accelerating IBRA's asset
sales, and this could later raise capital inflow to Indonesia,
which is badly needed to spur economic growth and to ease the
strain on the state budget," Raden told the Post on Saturday.
"People would be happy that the errant bankers are punished
for their misconduct in the past, such as transgressing the legal
lending limit," he added.