President would have known bank details: Rudini

JAKARTA (JP): The President would have been fully consulted before Saturday's government announcement on the liquidation of 16 ailing private banks, a former close aide to President Soeharto, Rudini, said yesterday.

Rudini, a former minister of home affairs, said the government would have handled the issue with extraordinary care before announcing the liquidation.

The government would have had a series of detailed consultations with the President to obtain his approval on the measure, he said.

"It was a government decision... and I do not believe that the President would not have known the names of the 16 liquidated banks, including names of the owners."

Rudini was commenting on statements by one of Soeharto's sons, Bambang Trihatmodjo, who said Tuesday that the President had been given only general information and may not have known full details regarding the economic reform.

Bambang filed a lawsuit yesterday in the Jakarta State Administrative Court against Minister of Finance Mar'ie Muhammad, who announced the liquidation of the 16 ailing private banks.

Three of the 16 liquidated banks were partly or wholly owned by Soeharto's relatives.

The announcement came a day after the International Monetary Fund announced its decision to provide a US$23 billion package to help stabilize Indonesia's economy.

Bambang is a major shareholder of Bank Andromeda, one of the ailing banks listed for liquidation. He owns 25 percent of the shares, while business tycoons Prajogo Pangestu and Henry Pribadi own 50 and 25 percent respectively.

Probosutedjo, Soeharto's half brother, is the sole owner of Bank Jakarta, which was also included in the list.

Soeharto's daughter, Siti Hediati Prabowo, holds an eight percent stake in Bank Industri, another bank listed for liquidation.

Rudini, who is now chairman of the Institute for Strategic Studies of Indonesia, an informal military think tank, said Bambang must have been emotional while issuing the statement.

He said the government must have considered all the economic reasons before making such a decision.

"I believe that the 16 banks were liquidated because they were not healthy," he said.

He said the government's decision would gain sympathy from the domestic and international business communities.

"Pak Harto is a senior and experienced head of state. He must have put the nation as the first priority rather than his children and relatives," he said.

Rudini suggested that the government should disclose its reasoning for its decision to liquidate the banks.

Four organizations of lawyers expressed concern yesterday that the government has not been transparent in its handling of the liquidations.

The organizations -- the Foundation of the Indonesian Legal Aid Institute (YLBHI), the Indonesian Bar Association (Ikadin), the Indonesian Advocates Association (AAI) and the Indonesian Lawyers Association (IPHI) -- presented their views at a joint press conference.

"The government has not been open about the condition of these banks, whether they were 'healthy' or not," said YLBHI's chairman Bambang Widjojanto, who acted as spokesman.

The four legal institutions called on the government to explain why the government would only repay each depositor a maximum of Rp 20 million against his or her account.

However, they supported the government's reform as a protection of the public's interest and welfare.

"We are certain that the liquidation was part of the government's move to restore the economic condition," said Ikadin's secretary-general Djohan Djauhari. (imn/10)