Lippo again

Lippo again

I'm really deeply concerned over media reports on Bank Lippo.
There are several reasons for this concern.

First, the government has been tardy with its reaction even
though the Bank Lippo issue has become the talk of the town for
over two months. The mass media have published unfavorable
comments from competent parties, such as the state minister of
state enterprises, the Indonesian Bank Restructuring Agency
(IBRA), the Capital Market Supervisory Board (Bapepam), the
Jakarta Stock Exchange, the House of Representatives (DPR), the
Association of Accountants, legal consultants, community
investors and so forth.

Unfortunately, these comments have yet to prompt the
government to take action. It seems the government is more
interested in involving itself in a discourse over this matter
rather than finding a real solution.

Second, the fines imposed by the stock exchange and monetary
authorities on the Lippo Group have failed to be a deterrent for
this group. Why? Perhaps, the fines are smaller in amount than
the proceeds the group can rake in. That's why although this
group has been subjected to fine impositions several times, it
will continue to engage itself in an activity which will again
make it subject to another fine.

Third, Lin Che Wei, an economic observer dubbed the most
popular analyst by a leading business magazine, has lashed out at
Bank Lippo in an attempt to prevent the looting of trillions of
rupiah of state assets but has been accused by a commissioner of
Bank Lippo for smearing the bank's reputation.

In view of this concern, the Consortium for Public Information
Transparency (KUTIP) would like to suggest the following:

First, the stern warning that the Jakarta Stock Exchange has
issued to Bank Lippo is not materially sufficient and must be
followed by Bapepam's imposition of a fine the amount of which
must be bigger than the profit or the potential profit that the
Riady family has collected or will collect.

Second, the Attorney General's Office, the National Police
chief and legal agencies must concentrate on major cases such as
the report made by the Indonesian Corruption Watch (ICW) to the
Attorney General's Office about Bank Lippo.

Third, it is now time for the people to support and encourage
"white" observers while at the same time monitoring the
activities of "black" business tycoons.

HANS SUTA WIDHYA
Executive Director of KUTIP
Jakarta