Right action to take
Right action to take
From Neraca
Recently all newspapers carried a report that Bank Indonesia (BI) had sustained losses of more than Rp 83 trillion in connection with the take-over of six problem-fraught banks. If this amount were allocated to foster small businesses or make available staple commodities for the ordinary people, just imagine how many needy people would be helped. But that's what BI has done.
The total real assets of the six banks are worth only Rp 35.1 trillion, while their liabilities stand at over Rp 120 trillion. BDNI is the worst offender in using up the people's money in the hands of BI. After BDNI's financial records were audited, it has been found that the bank has marked up its assets from Rp 6 trillion to Rp 34 trillion and its liabilities from Rp 32.3 trillion to Rp 48.2 trillion. A huge amount indeed!
The losses referred to above have been incurred from BI's participation in a bank take-over (BTO) process. Now, what has happened to BI's liquidity loan (KLBI) which has been disbursed to banks whose operations have been suspended (BBO), liquidated banks and those under the supervision of the Indonesian Bank Restructuring Agency (IBRA), including BCA?
If such a huge amount of money is spent only on settling banking problems, which will benefit only a handful of people, while people in general are facing the threat of starvation, is it really the right thing to do? It is an open secret that many in the banking circles have committed acts causing losses to both the people and the state.
Therefore, the community is keen on finding truth in reports filed by a large bank like BCA. Has the bank really channeled loans in the interest of the community or has it merely extended the credits in the interest of its corporate group? Also, does the book value of the assets truthfully reflect the assets' real value?
In order that the common people may not be burdened, it is only proper if the government review the guarantee it has extended to private commercial banks. The government must make sure that only the real assets of the banks get the guarantee and that this guarantee must be given only to state banks.
Besides, the government must also demand that bank owners should account and be responsible for all their acts which have caused losses to the state pursuant to the criminal and civil codes. If necessary, their personal wealth must be confiscated.
Last but not least, the government must ask IBRA and BI to account for the state funds, which obviously belong to the people, they have spent, even though this may have been done by printing fresh banknotes. If necessary, the BI governor must give up his position.
TAUFIK KARMADI
Jakarta