President says no new chairman for IBRA yet

President says no new chairman for IBRA yet

JAKARTA (JP): President Abdurrahman Wahid has no immediate
plan to appoint a new chairman for the Indonesian Bank
Restructuring Agency to replace Cacuk Sudarijanto, Presidential
spokesman Wimar Witoelar told reporters on Monday.

As the eyes of the international economic community now focus
on Indonesia, any changes in key government personnel have to be
based on thorough deliberations, Wimar said, indicating the
importance of continuity during the meeting of the Consultative
Group on Indonesia creditor consortium that convenes in Tokyo on
Tuesday.

"No, there is no plan yet to replace the IBRA chairman," he
said in reply to reporters' questions as to whether Cacuk would
soon be replaced by Widigdo Sukarman.

There has been widespread speculation that Cacuk, who is also
the junior minister for economic restructuring, would soon be
replaced by Widigdo, former president of state-owned Bank BNI.

Rumors about the shake-up in IBRA top management became much
stronger last week after Finance Minister Prijadi Parptosuhardjo
confirmed that IBRA vice chairman Arwin Rasyid, leading a
roadshow in Tokyo, was replaced by Slamet Sumantri, one of
Arwin's deputies.

However, since Prijadi made no strong denial to speculation of
an imminent replacement of Cacuk, the financial community
remained abuzz with strong rumors that Cacuk was counting his
days at the agency.

IBRA is structurally under the finance ministry but the
President decided last November to put the agency directly under
his control.

The market was especially nervous about the possibility of
Widigdo rising to the top seat at IBRA as he was widely seen as
partly responsible for approving the US$816 million and Rp 450
billion in preshipment loans from Bank BNI to the Texmaco group
in 1997 and 1998 that turned sour.

IBRA's proposals for restructuring the debts of Texmaco and
three other business groups, which were recently approved by the
Financial Sector Policy Committee, have been criticized by most
analysts and the International Monetary Fund and World Bank as
harmful to state interests.

IBRA, which controls more than Rp 600 trillion ($68.1 billion)
worth of state assets, holds the key to Indonesian economic
recovery as it is in charge of salvaging the ailing banking
industry, resolving the huge corporate debt overhang and
restructuring the business sectors under IBRA control.

Wimar said thorough considerations should precede any changes
in key government personnel, especially the chief of such a vital
agency as IBRA.

People should be informed of the reasons for such changes and
be assured that the successor is much better than the incumbent
being replaced, he added.

"The government certainly cannot tolerate too many mistakes at
IBRA. But the government also needs to safeguard the public's
perception of this agency," Wimar added.

Most important, according to Wimar, is not the technical
problems faced by IBRA but rather the issue as to whether the big
debtors are really honest and serious about restructuring their
companies to protect the national interests and at the same time
allowing justice to be established.

He also said the President had no plan yet to appoint a new
chief of the National Logistics Agency, a position which is
concurrently held by chief economics minister Rizal Ramli.