Probosutedjo sets conditions for out-of-court settlement

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)