Probosutedjo proceeds with lawsuit against govt

JAKARTA (JP): Businessman Probosutedjo, the owner of Bank Jakarta liquidated on Nov. 1 by the government, went ahead yesterday with his lawsuit against the minister of finance and the central bank governor, his lawyers said.

The lawyers, however, said they were headed toward an out-of- court settlement.

Probosutedjo, President Soeharto's half brother, had his first hearing at the Jakarta State Administrative Court yesterday. He is suing Minister of Finance Mar'ie Muhammad and Bank Indonesia Governor Soedradjat Djiwandono for the closure of his bank.

"As of this moment Probosutedjo is continuing with his lawsuit," the bank's lawyer Abdul Fickar Hadjar said.

But Hadjar said that following an initiative from the court's chief judge Lintong Oloan Siahaan, lawyers for the two sides will meet before the next hearing Tuesday to discuss a possible out-of-court settlement.

"(This) morning we will meet with the lawyers (of Mar'ie and Soedradjat)," Hadjar said, adding that Siahaan will mediate in the meeting.

Siahaan confirmed the lawyer's remarks, and said a peaceful settlement would be more in line with the nation's interests.

Probosutedjo was among two bank owners who filed a suit against the government for the closure of their banks. Probosutedjo filed the lawsuit on Nov. 7.

Bambang Trihatmodjo, Soeharto's son, withdrew his lawsuit last week citing "national interest" as the reason.

The closure of the 16 ailing banks was part of an economic reform package demanded by the International Monetary Fund in exchange for its US$23 billion bailout to help the troubled Indonesian economy recover. (10)