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)