IBRA's strange policy

IBRA's strange policy

Our case actually started one year ago, when Bank Pelita was
closed by the government, and, following the bank's closure, the
Indonesian Bank Restructuring Agency (IBRA) announcing taking
over all the bank's assets and obligations, including deposits,
bank accounts and debts.

The story began when IBRA summoned us on July 16, 1999,
requesting confirmation of our debt amount as reported in the
Bisnis Indonesia daily, June 14, 1999, and to sign a Letter of
Commitment (the committed debt). We went to the IBRA office on
July 20 to discuss the subject and both parties agreed that we
still had a gap, a big gap, because we stated that our debt was
only US$1.4 million, while IBRA claimed that our debt was Rp 53
billion, about $8.5 million. After a long argument over the
difference both parties agreed to submit more evidence as well as
backup to support each statement. We even showed IBRA minutes of
meeting with the old IBRA team, and followed up with an agreement
and transferred the agreed interest payment as stipulated in the
agreement.

The next day, as agreed, SA sent copies of backup documents to
confirm a figure of the debt which comprised an offering letter
and 1997 financial report. At the same time, we again requested
clarification from IBRA of their claims before further steps
could be taken.

Unfortunately, our request for clarification was not granted
by the new team, lead by Mr. Rafy Sugiri, together with Ms.
Yanthi and Ms. Sinaga from the legal section.

Finally, we got a letter dated July 30, 1999, confirming their
previous statement demanding SA submit the signed Letter of
Commitment to pay our debt as stated in the media.

We prepared documents related to our loan agreement with the
agency. Moreover, we had also negotiated with IBRA from April
1998 until March 1999, when, literally, the new IBRA team came in
with a new approach, and it seemed that the new team ignored the
previous agreement.

Our question is: What will happen if the current IBRA team is
dismissed and replaced by another IBRA? How do we differentiate
one from the other? Will this present commitment be carried
forward, or will it be the same as the previous one, just a piece
of junk without legal meaning?

We appreciate any comment from any concerned party dealing
with IBRA.

BK HADISOEBROTO

Jakarta