Public asked to remain calm over liquidation

JAKARTA (JP): Vice President Try Sutrisno called yesterday for the public to remain calm and not to make unfounded comments about the economic situation which could result in unrest.

Try warned that people, especially the poor, could be easily agitated by irresponsible rumors.

"It would be very wise of everybody if they refrained from speaking so they don't make blunders by uttering misleading statements," Try was quoted as saying by Daniel Johan, chairman of the Indonesian Buddhist Students Association.

Daniel and association executives paid a courtesy call on the vice-president at Merdeka Selatan Palace yesterday.

Daniel said Try was confident the government would cope with the crisis and that the economy would recover soon.

"Government efforts to restore the economy have already shown good results in the last few days and we are obliged to support it," Try said.

The International Monetary Fund (IMF) announced Friday a US$23 billion bailout package to help stabilize Indonesia's economy.

Following the IMF package, the government announced Saturday the liquidation of 16 ailing private banks.

Bank Indonesia's governor has strongly denied rumors that more banks will be liquidated, and has also called for calm.

Despite the government's assurances a general wariness persists, exacerbated by the wide circulation of a list over the past two days naming other banks likely to be closed.

The government has guaranteed that small deposits in the liquidated banks -- Rp 20 million or less -- would be released through one of the state banks on Nov. 13.

Bank Indonesia has set up a hotline -- (021) 3501979, 3501980 -- for those who want more information.

Armed Forces Chief Gen. Feisal Tanjung called yesterday on people with deposits in the 16 closed banks to remain calm and place their full trust in the government's pledge to settle their problems.

"Everything is settled now. People should not worry," he said after a signing ceremony for a deal on arms supply and maintenance with the Agency for the Assessment and Application of Technology and its affiliated companies.

In Semarang, Central Java, Minister of Defense and Security Edi Sudradjat said people should take no notice of the circulated list.

"It's a questionable list, clearly no one can account for the validity of that list," Edi said, reported Antara yesterday.

The situation at the head offices and branches of the liquidated banks in several cities remained calm despite numerous inquiries by customers about their deposits.

But security personnel remain on the alert at the offices and branches.

The head of Bank Central Asia in Medan, North Sumatra, B. Natapraja denied rumors of a withdrawal "rush", but admitted that the number of withdrawals had increased slightly.

"Certain irresponsible people have spread rumors about our bank," Antara quoted Natapraja as saying. (prb/imn)

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