Ministry of finance urged to maximize debt recovery

Ministry of finance urged to maximize debt recovery

Rendi A. Witular, The Jakarta Post, Jakarta

Vice President Jusuf Kalla has ordered the Ministry of Finance to
maximize efforts to recover bad debts owed by a number of noted
tycoons and politicians by selling their assets at optimal
prices.

"The Ministry of Finance is expected to fully recover bad
loans belonging to tycoons and politicians, whose debts are being
handled by the ministry for auction," said Kalla at a press
conference on Tuesday.

Kalla was responding to a recent move by the ministry to
auction assets belonging to 34 creditors of Bank Mandiri totaling
some Rp 2.28 trillion (US$2.42 billion) and $225.78 million.

Some of the assets are collateral on debts that were written
off by Bank Mandiri when the debtors defaulted.

The Ministry of Finance's Directorate General of State
Auctions handles debts written off by state banks.

According to a ministry report, only Rp 58.8 billion and $1.18
million of the debts have been repaid.

The creditors include both private companies and state
enterprises.

The report also says that a number of politicians are
responsible for the debts, including former Golkar Party
treasurer Setya Novanto, the current leader of the National
Mandate Party (PAN) Sutrisno Bachir and former People's
Consultative Assembly (MPR) member Oesman Sapta.

A number of businessmen are also mentioned in the report, such
as Sudwikatmono, Slamet Gondokusumo, Novian Kaman and Made Oka
Masagung.

Kalla was optimistic that the ministry could convert the bad
debts into maximum proceeds for state coffers.