IBRA's performance

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