New decree on IBRA submitted

New decree on IBRA submitted

JAKARTA (JP): State Secretary/Cabinet Secretary Bambang Kesowo
said on Tuesday that his office had submitted a proposal to
President Megawati Soekarnoputri on a new decree to provide a
legal foundation for the Indonesian Bank Restructuring Agency
(IBRA).

"Yes, the proposal has been submitted to the President,"
Bambang said, but he declined to elaborate.

Last month, Megawati decided to transfer the agency from under
the supervision of the Ministry of Finance to the State Ministry
of State Enterprises.

The transfer requires Megawati to issue a new ruling as the
current government regulation, No. 17/1998, stipulates that IBRA
is under the supervision of the finance ministry.

Meanwhile, State Minister of State Enterprises Laksamana
Sukardi denied reports that he would take over as IBRA chairman.

"That's not true. Where did that news come from?" he said.

However, he jokingly added that if the salary was right, he
might be interested in taking over IBRA's top position.

Reports on Tuesday said that Laksamana would take over the
leadership at IBRA, while current chairman I Putu Ary Suta would
become deputy chairman.

Meanwhile, AP Dow Jones newswires said on Tuesday that
Laksamana would assume the top leadership at IBRA after Megawati
signed the new ruling on the agency's status.

The move is seen as a signal to IBRA's recalcitrant debtors
that the agency will take a hard-line approach in forcing them to
repay debts.

IBRA controls billions of dollars worth of assets transferred
from ailing and closed banks and former bank owners. The agency
is mandated to restructure and sell the assets to raise cash to
help finance the state budget deficit.

The crucial agency is prone to intervention from politicians
and influential businessmen, causing serious obstacles in the
implementation of its assets sale and restructuring programs.

Elsewhere, Laksamana confirmed Bambang's statement, adding
that the draft of the new ruling was expected to be signed by
Megawati on Wednesday.

"We have presented the draft to the President. We hope it will
be approved today (Wednesday)," he said.(10/dja)