Transparency for BI

Transparency for BI

From Neraca

Bank Indonesia (BI) is now free from the government's interference. It is now time for BI, as an independent monetary authority, to account to the House of Representatives and the public for the funds allocated for its liquidity credits (KLBI), totaling more than Rp 100 trillion.

The funds, as once pointed out by our former national leader, were not meant as subsidies but as loans. The people now wait if the loans can be restituted in their totality plus interest. When will they get them back?

It is no longer the time for BI to give assistance to a certain group of businesspeople, especially those owning several banks, by sacrificing the rights and interests of the general public. It should also no longer give guarantees using the public's funds at its disposal for the benefit of ailing banks.

The funds can be made better use of by providing assistance to small-scale businesses directly supervised by Bank Indonesia. That way, there will be no more parvenu businesspeople who enjoy privileges for being the cronies of bank owners.

It seems there may be truth in the rumors and a statement by Probosutedjo that there are banks which enjoy big amounts of Bank Indonesia liquidity loans, thereby practicing double bookkeeping. Now Bank Indonesia should no longer cover up and encourage such practices.

Whatever size a bank and whoever owns its, if its condition requires liquidation, BI should take the necessary steps. It should no longer take the side of certain people's interests.

It is much better that Indonesia has just a few banks which are really healthy and which do not tap into state funds, which are, in fact, the people's money. The people have been deceived too long already.

In this era of total reform, the liquidity loans by Bank Indonesia would help in raising the people's economy.

TAUFIK KARMADI

Jakarta