Risi says she quit IBRA due to lack of independence

Risi says she quit IBRA due to lack of independence

JAKARTA (JP): Rini Soewandi, a professional manager recently
appointed as the Indonesian Bank Restructuring Agency (IBRA)
deputy chairwoman and as a advisor to the finance minister said
Saturday she has quit both jobs.

Rini, who still holds her job as finance director of the
widely diversified Astra International, said she resigned from
IBRA because the agency was not as independent as she expected.

"I sent my letter of resignation yesterday," she told
reporters following a ceremony marking the fist day of the new
Finance Minister Bambang Subianto.

However, she did not give any reason why she quit her job as
an advisor of the minister of finance, which she received two
months ago.

Rini said the IBRA established in January to rehabilitate the
country's banking industry lacked independency.

"I believe that we need IBRA, because in order to fix the
economy, we must first rebuild the banking sector, which has been
plagued by various problems for years," she said.

She said the agency was not independent, which prohibited it
from making rational economic decision for the banking sector.

"So its better for me to concentrate on Astra International,"
she said.

Publicly listed PT Astra International is a giant automotive
group controlled by foundations chaired by the former president
Soeharto.

Separately, IBRA's chairman, Iwan Prawiranata, rejected Rini's
opinion, saying that the agency is quite independent.

IBRA, a government body set up in January, is charged with the
mission to help rehabilitate the country's banking sector. It has
the authority to restructure troubled banks under its
supervision, including by changing bank shareholders, selling
assets and arranging mergers.

IBRA is currently supervising 37 banks and has taken over the
management of seven other private banks.

Indonesian banks have been under severe pressure following the
country's monetary crisis which started in August. A total of 23
banks have been closed down. The remainder are facing a liquidity
crunch amid declining confidence in the banks and a tight
monetary environment. (rei)