IBRA's request for ad hoc judges denied

IBRA's request for ad hoc judges denied

JAKARTA (JP): The Jakarta Commercial Court has rejected the
Indonesian Bank Restructuring Agency's (IBRA) request to assign
independent "ad hoc" judges to examine the agency's three
bankruptcy cases.

Sihol Sitompoel, head of the bankruptcy court, said on Friday
that none of the four ad hoc judges appointed by the government
in early 1999 could examine IBRA bankruptcy cases because of a
technical matter.

"They can't start serving at court yet because they have not
been taken the oath of office," Sihol said.

According to Sihol, he invited the ad hoc judges in early
January to take the oath but they refused the offer, saying they
were not satisfied with the procedure in the issuance of
verdicts.

An ad hoc judge can be assigned to a case at the initiative of
the head of the commercial court, also called the bankruptcy
court, after receiving a request from the parties in litigation.
But Sihol said he could not meet IBRA's request because of such a
"technicality".

Based on a presidential decree issued in February 1999, four
ad hoc judges were appointed to assist in proceedings at the
commercial court. They include two former judges Setiawan and
Elijana, and two scholars Rudy Prasetio and C.F. Sunaryati
Hartono.

Sihol, however, said that although the presidential decree was
issued early last year, he officially received the decree only on
Jan. 25, 2000.

According to the Supreme Court decree, ad hoc judges should
first take the oath of office before the head of the commercial
court before starting their duties.

IBRA, which suffered serious blows in its previous efforts to
liquidate recalcitrant debtors through bankruptcy proceedings,
said an ad hoc judge was needed to guarantee a fair trial.

The commercial court rejected IBRA's bankruptcy petitions
against PT Tirtamas Comexindo, a trading company owned by Hashim
Djojohadikusumo, and PT West Kalindo Pulp Paper mill.

Not long after, the International Monetary Fund (IMF) delayed
the next disbursement of its loan to the country until the
government fulfilled economic reform deadlines agreed with the
agency.

The agency is also upset at the snail pace of the progress of
the debt restructuring program carried out by IBRA, and at the
government's handling of high-profile corruption cases.

Sihol said that the refusal to assign an ad hoc judge in
IBRA's cases was not intended to cover up alleged corruption in
court.

"The ad hoc judges turned down the offer to be sworn in until
the Supreme Court changed the procedure of a court hearing," he
said.

Sihol said the ad hoc judges wanted a "dissenting opinion"
note to be recorded on the last page of a verdict document to
notify when a verdict was reached after a split decision.

"In normal procedures, a dissenting opinion is kept in a
confidential court book and how a verdict is reached should not
be disclosed as it might create further arguments and potential
confusion outside the court," he said.

"However dissenting opinions, as recorded in our court's
confidential book, is attached to the verdict document in the
instance of a case being appealed at the Supreme Court," he
added.

IBRA wants an ad hoc judge assigned to examine its three
bankruptcy petitions against what the agency has called
uncooperative debtors at the commercial court on Monday.

The three debtors brought to the commercial court are trading
firms A Latief Corporation which owes the agency some US$16.93
million in bad debts, crude palm oil processor PT Sumi Asih (Rp
73.94 billion and $6.73 million) and diversified PT Ometraco
Corporation ($53.18 million). (udi)