IBRA's performance

The government is at present putting all its hopes on the Indonesian Bank Restructuring Agency (IBRA) in its efforts to recover public funds that were misused in the past by most of the now suspended banks. At the very least, the agency could through hard work make a positive contribution to the state coffers in these troubles times.

It is difficult, however, to assess IBRA's performance, as the government has still not set any clear criteria by which to measure the agency's work. For one thing, in discussions of national banking problems, we should include state banks, where the administration of bad debtors' assets is so lacking in transparency.

Who must be held responsible for unrecoverable loans at state banks, where the amount runs into the trillions of rupiah? For private banks, this problem has been clear. But what about state banks? We don't want any dualism with regard to the handling of bad assets in our banks, whether they are state or privately owned. The impression must be avoided that the recovery of bad credits at state banks is being encumbered by strong people who are close to the center of power.

-- Bisnis Indonesia, Jakarta