Question mark hangs over FSPC meeting

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)