Kwik Kian Gie's clarification
Kwik Kian Gie's clarification
On page 13 of the July 27, 2002 issue of The Jakarta Post, there is a picture of Hotman Paris Hutapea and me with a very brief story accompanying the photo.
In connection with the report, I would like to give an explanation to straighten out the matter as follows:
Hotman Paris Hutapea (head of the bankruptcy litigation lawyers club -- Ed.) asked me if it was a good idea to file a lawsuit at an international court. I said it was, though it would most likely be rejected or lost. The benefit of it was to let the grassroots of the world community know Hotman Paris Hutapea's reasons.
To avoid the impression that I have been inconsistent, because I had maintained good cooperation with the IMF as the economic coordinating minister, and considerably supported IMF aid before its actual intervention, followed by a polemic in favor of the IMF with about six articles in Kompas, let me emphasize that what I oppose is the IMF statement that the government debts contained in the bank recapitalization bonds worth thousands of trillions of rupiah must be repaid, and some portions have reached maturity and were paid in cash by the government. The focus is thus the government's liability for the principal value of bank recapitalization bonds and its interest. I am tired of clarifying this matter over and over. At the pre- CGI session on June 12, I also explained it very clearly, with texts distributed to the media thereafter.
At the meeting with the lawyers club led by Hotman Paris Hutapea on July 26, I recounted the entire history of the recapitalization bonds, starting from the inadequately prepared closing of 16 banks, which entailed a series of policies and their consequences today, namely the government's domestic debts ranging from Rp 1,000 trillion to Rp 14,000 trillion (involving bank recapitalization alone). So the description was focused on the recapitalization bonds, but it was put in its historical perspective.
I did not suspect several IMF officials in the formulation of the Letter of Intent (LoI). I said Hubert Neiss shortly after retiring from the IMF had joined Deutsche Bank, which provided counsel for the Farralon group in the whole process of purchasing BCA. Hubert Neiss visited Jakarta for lobbying that led to Farralon's victory. This was to answer an attorney's question. I stressed that Hubert Neiss was no longer an IMF official at that time, but it was very shortly afterward. I made the same statement when speaking before the pre-CGI forum on June 12, with texts available for examination.
I hope you will listen to the full recording of the meeting and discussion with attorneys conducted by Hotman Paris Hutapea on July 26 so as to obtain an accurate and complete text.
In my view, the report carried on page 14 in Kompas on July 27, 2002, is fairly accurate.
The meeting was at the request of the attorneys club. I had no idea of its purpose until its opening. I mentioned this in my opening message and I asked them to tell me why I had been invited. I did not take the initiative to hold the discussion.
KWIK KIAN GIE, State Minister of National Development Planning