Probosutedjo sets conditions for out-of-court settlement

JAKARTA (JP): Businessman Probosutedjo laid out yesterday several conditions for an out-of-court settlement for his lawsuit against the central bank and the Ministry of Finance over the closure of his bank, Bank Jakarta.

Probosutedjo said the conditions for an out-of-court settlement ranged from the acknowledgement by the central bank and the ministry that Bank Jakarta was a sound bank to a permit from both institutions allowing him to fully reimburse all Bank Jakarta account holders.

"Of course, we want to reach an out-of-court settlement," he said on the sidelines of a signing ceremony of the third- generation coal contract-of-work at the headquarters of state- owned Aneka Tambang mining company.

We don't want to cause a headache to (the governor of) the central bank (Soedradjad Djiwandono) and the minister of finance (Mar'ie Muhammad)," he said.

Probosutedjo filed a lawsuit with the Jakarta State Administrative Court against Mar'ie and Soedradjad on Nov. 7, demanding the reinstatement of his bank.

Bank Jakarta was one of 16 banks closed by the government Nov. 1 as part of the International Monetary Fund's reform package to restore confidence in the country's economy.

President Soeharto's son, Bambang Trihatmodjo, whose Bank Andromeda was also among those closed, had also filed a lawsuit against Mar'ie and Soedradjad, but later dropped the suit for the sake of "national interest".

Probosutedjo defied the closure ruling from the outset, refusing to sign the liquidation order and reopened his bank to reimburse some account holders without the government's approval.

He insisted on continuing with his legal action against both officials, but the administrative court's judge, Lintong Oloan Siahaan, called on both parties to seek an out-of-court settlement.

Probosutedjo said he would withdraw his suit if the central bank publicly announced that unlike many local banks, Bank Jakarta had never asked the central bank for loans and had never been provided with any funds by the bank.

"We don't demand that our bank be reopened. We only want acknowledgement that our bank owed nothing to the central bank," said the half brother of President Soeharto.

He said the central bank should also announce that until its recent closure, Bank Jakarta was liquid.

Three state banks, using funds from the central bank, reimbursed the depositors of the 16 closed banks last week, but only up to a maximum of Rp 20 million per account.

The balance leftover that is still owed by the banks to creditors and depositors will be settled after the liquidation of the banks' assets.

Probosutedjo also demanded that Bank Jakarta's reserves at the central bank be returned.

He claimed that Bank Jakarta's assets were worth Rp 300 billion.

Probosutedjo admitted that he had not yet approached Mar'ie or Soedradjad for the proposed out-of-court settlement.

Probosutedjo also said it was not his responsibility to find jobs for the former employees of Bank Jakarta, blaming Mar'ie for making them jobless.

"They are now unemployed because of Pak Mar'ie. So let him find jobs for them. I don't care how he does it," he said, adding that he was no longer interested in banking. (jsk)