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