Robby to lead Bank Mandiri, Gani new Garuda president
JAKARTA (JP): The government installed former PT Garuda Indonesia president Robby Djohan at the helm of newly established Bank Mandiri on Friday in its effort to speed up the restructuring of the country's disordered state banks.
State Minister of the Empowerment of State Enterprises Tanri Abeng also announced on Friday the appointment of Abdul Gani, one of his assistants who was formerly president of Bank Duta, as Robby's successor at the national airline.
Tanri said Robby as the bank's president would form a perfect team with former finance minister Mar'ie Muhammad -- installed as chief commissioner early last month -- in the quest to make it a quality institution.
"This is an optimum combination to build Bank Mandiri to become a world-class operator with a strong reputation," he told reporters at a news conference on the management reshuffle in the two state-owned companies.
Known as the "Mr. Clean" of Indonesian politics, Mar'ie is chairman of the Indonesian Transparency Society.
Bank Mandiri was established on Oct. 2 as a medium to clean up and merge four of the seven state banks; Bank Bumi Daya (BBD), Bank Pembangunan Indonesia (Bapindo), Bank Dagang Negara (BDN) and Bank Ekspor Impor Indonesia (Bank Exim)).
They have combined total assets of Rp 269 trillion (US$33.6 billion) but are saddled with massive amounts of nonperforming loans.
Most of the loans are believed to have been channeled to businesses of the family of Soeharto and its intimate circle during his 32-year presidency.
The merger process is scheduled to be completed by 2000.
Sources said various parties had applied pressure to have their candidates head Bank Mandiri. The government appointed an interim president, Mulyohardjoko, when the bank was established. Mulyohardjoko is retained as president of state-owned pension fund PT Taspen.
Tanri pledged that Robby and Mar'ie would be given full freedom in running Bank Mandiri.
"I'm glad that the minister has given us the full freedom which means that the government will not intervene in our daily operation," Mar'ie said.
Robby, also a former president of Bank Niaga, said: "I never want to work under any external pressure. I can always resign if they do that to me."
He promised he would accelerate the process of restructuring and cleaning up the state banking sector because "time is not on our side".
"But regaining the bad loans may take quite a long time," he admitted. He added its success would also depend heavily on the improvement in the country's economic condition.
Layoffs will be the last option in the effort to boost the banks' efficiency, Robby said.
The Indonesian Bank Restructuring Agency (IBRA) has appointed Germany's Deutsche Bank as the consultant for the merger process. Due diligence on financing of the banks is currently underway to determine the extent of their nonperforming loans.
The government has yet to decide whether Bank Mandiri will have to settle bad loans by itself or transfer the task to IBRA's asset management unit.
Mar'ie said: "Deutsche Bank signed the contract with IBRA. The possibility is still open for us to hire another consultant or an additional one."
Tanri said Robby was appointed chief commissioner of the ailing airline in an effort to maintain continuity in the ongoing restructuring process at Garuda Indonesia.
Since joining Garuda in June, Robby has initiated painful restructuring measures in a bid to put the airline into the black by year's end.
Measures include the return of 26 leased aircraft and rescheduling of about US$400 million in overseas loans. A massive program of voluntary dismissals is also underway. (rei)