Question mark hangs over FSPC meeting

JAKARTA (JP): The newly established Financial Sector Policy Committee (FSPC), which oversees the Indonesian Bank Restructuring Agency, held its first meeting on Wednesday.

But none of the committee members were willing to answer questions about was discussed during the meeting, held at the office of the National Development Planning Board.

Coordinating Minister for Economy, Finance and Industry Kwik Kian Gie, who heads the committee, did not meet with waiting reporters.

IBRA chief Cacuk Sudarianto also kept tight-lipped, hurrying past reporters to his waiting car.

However, committee secretary Dipo Alam told journalists one of the items on the meeting's agenda was the procedures for the sale of IBRA's 40 percent equity in PT Astra International.

"In their first meeting, FSPC reached a decision on the sale of IBRA's Astra shares. I believe Cacuk will announce it himself within a few days," Dipo said.

But he declined to give further details on the planned divestment, which has caused controversy over allegations that IBRA "bulldozed" securities market rules in pushing through its deal with an American investor group led by Newbridge Capital and Gilbert Global Equity Partners.

Another IBRA senior official, Farid Harianto, who also attended the meeting, confirmed Dipo's remarks.

FSPC is made up of the finance minister, the state minister of investment and state enterprises, the minister of industry and trade, the central bank governor, the chairman of IBRA, the head of Jakarta Initiative Task Force and the chairman of the National Development Planning Board.

The committee, established last month by presidential decree, has the task of overseeing the implementation of IBRA's bank and corporate restructuring programs. It reports directly to the President.

The idea behind the establishment of the committee, as described in the Letter of Intent sent by the government to the International Monetary Fund, is to assist IBRA in its bank and corporate restructuring programs.

"FSPC will back IBRA whenever the agency has to make a difficult decision," Kwik said earlier this week.

Kwik added that FSPC would take over IBRA's task of ruling on important and sensitive cases of corporate restructuring.

IBRA officials have reportedly refrained from taking firm action in some cases for fear of lawsuits by the businesspeople or companies affected by the debt and bank restructuring.

"In this case FSPC will make the difficult decisions for IBRA and face the lawsuits by any third party," Kwik said.

The government will issue later this month a decree protecting IBRA officials and FSPC members from lawsuits over the decisions they make regarding corporate and debt restructuring, according to the Letter of Intent.

"The decree will be issued (by the government) and commits the government to providing the officials of IBRA and the members of the FSPC with personal legal assistance in cases where decisions consistent with the proper policies and procedures are challenged," the letter stipulates.(udi)