Laksamana mulls replacing IBRA chief, awaits inputs

JAKARTA (JP): State Minister of State Enterprises Laksamana Sukardi said on Tuesday that he would consider replacing the chairman of the Indonesian Bank Restructuring Agency (IBRA) should the public call for it.

"I don't know yet, I am open to suggestions and will like to hear the aspirations of the public," he said in response to questions on whether he will replace IBRA's current chief I Putu Gede Ary Suta.

"The presence of an IBRA chairman is of no importance to us, what is important is good team work," he added.

On Monday, President Megawati Soekarnoputri placed IBRA under the control of Laksamana, a staunch opponent of corruptors and power abusers.

The move prompted an already growing speculation that Ary Suta's less then two months term as IBRA chief was numbered.

Ary Suta was named IBRA chief late last June amid criticism that the agency was slow in executing major debt restructuring deals.

He replaced Edwin Gerungan, a professional banker who once said that too much political interference had slowed IBRA's work.

IBRA is in charge of restructuring and selling assets it took over in exchange for recapitalizing banks hit by the 1997 economic crisis.

Controlling assets worth some Rp 600 trillion (about US$71.4 billion), IBRA often has to contend with politically linked conglomerates seeking favorable debt deals.

"In its fourth year, IBRA is still not working right. Instead we see chairmen coming and going," Laksamana complained.

IBRA has been chaired by five chiefs, namely Bambang Subianto, Glenn Jusuf, Cacuk Sudarijanto, Edwin and Ary Suta, since its inception in 1998.

Laksamana said interference had hampered IBRA's work and deteriorated the value of the assets it had to sell.

He said his job now was to expedite IBRA's asset sales and debt restructuring to help fill the state budget deficit this year.

Commenting on the changes in IBRA, he said an organization's structure ought to conform to its mission and objectives.

"I don't want much changes. Its (IBRA's) work is already running. What needs to be done is achieving better coordination," he said.

IBRA was previously under the control of the finance minister whose job is now reduced to handling the country's fiscal policies.

Laksamana said his taking over of IBRA was to ease the finance minister's work load so that the minister could focus on securing the state budget.

On privatization, he admitted the state budget target of about Rp 6.5 trillion this year was a difficult one to meet.

"It depends on many factors, such as our macroeconomic condition, the global economy, which is close to recession, and regional autonomy. I can't guarantee anything," he said.

He also dismissed fears that his control over IBRA had been politically motivated.

As a member of the country's largest political party, the Indonesian Democratic Party of Struggle (PDI Perjuangan), Laksamana said he would steer away from abusing his position to serve his party's interests.

"In fact, I have to uphold the good name of my party," he said.

Separately, the president of the Indonesian unit of U.S.-based consultant firm PT Grant Thornton Indonesia, James S. Kallman, said handing over IBRA to Laksamana had been a logical choice.

According to him, the state ministry of state enterprises and IBRA shared the same goal of selling state assets.

"Since they have the same target, it will be best to put them into one hand," he told the Post.

He added it was unlikely Laksamana would abuse his position at the risk of tarnishing his good reputation.

Also, he said, Indonesia's more open press and the country's non-governmental organizations would be sure to keep a close eye on Laksamana's performance.(bkm/05)