Sjamsul Nursalim, profile of a bad debtor
Sjamsul Nursalim, profile of a bad debtor
Rendi A. Witular, The Jakarta Post, Jakarta
Mogul Sjamsul Nursalim is an example of one of the most notorious
of the country's bad debtors, who, as of now, has yet to show
good faith in settling his huge debt to the state.
The Litigation Assistance Team (TPBH) for the Indonesian Bank
Restructuring Agency (IBRA) has long declared Sjamsul, owner of
the Gadjah Tunggal Group, as the most "noncooperative" large
debtor.
Along with Sjamsul, TPBH has also targeted other large
debtors, such as Usman Admadjaja, Trijono Gondokusumo, Samadikun
Hartono and Kaharudin Ongko.
In the wake of the 1997 financial crisis, Sjamsul's now-
defunct Bank Dagang Negara Indonesia (BDNI) received some Rp 40
trillion (US$4.4 billion) in liquidity assistance (BLBI) from the
central bank to help cope with massive bank runs plaguing the
industry at the time.
The amount places Sjamsul as the second-largest debtor of
state funds after the Salim Group, which owes some Rp 52.7
trillion.
Despite the bailout facility, BDNI's financial troubles
deepened, forcing IBRA to take over the bank in April 1998 before
it eventually liquidated it. Consequently, Sjamsul is obliged to
repay the BLBI facility.
Sjamsul settled part of the debt by ceding his ownership in
BDNI to IBRA. The value of the BDNI asset was claimed to be
around Rp 11.5 trillion. He agreed to repay the remaining debt
via a combination of cash payment and transfer of ownership in a
variety of fixed assets.
Under a 1998 deal, known as the Master of Settlement and
Acquisition Agreement (MSAA), Sjamsul was supposed to pay in
advance Rp 1 trillion in cash to IBRA, and to surrender shares in
various companies to repay the remaining Rp 27.5 trillion debt.
However, Sjamsul has failed to comply with the agreement. So
far, he has paid only Rp 572 billion of the cash advance
requirement. Also, he has only surrendered ownership in some 12
companies, which, according to IBRA, are only worth around Rp 4.1
trillion. Sjamsul has not handed over his shares in PT Gadjah
Tunggal, Southeast Asia's largest tire-maker.
To make himself untouchable by the law and to avoid his
obligations, Sjamsul was reported to have "bought" several of the
country's top officials, including Attorney General M.A. Rachman.
As reported by Tempo weekly magazine in its Nov. 17 edition,
Sjamsul is believed to have bribed Rachman in order to prevent
his being pursued for corruption by prosecutors.
In April 2001, Sjamsul was declared the suspect in a
corruption case involving BLBI funds.
However, he managed to flee the country and is currently
taking shelter in Singapore to avoid arrest.
Quite apart from the absence of an extradition agreement
between Indonesia and Singapore, the government has made no
serious attempt to bring Sjamsul back to the country to face the
music.