Tutut backs government action on ailing banks

JAKARTA (JP): Businesswoman Siti Hardiyanti Rukmana, who is the eldest daughter of President Soeharto, supported yesterday the government's weekend closure of 16 banks, including those partly owned by other family members.

Hardiyanti, better known as Tutut, told the press at a meeting of the People's Consultative Assembly here yesterday the government policy -- part of an International Monetary Fund reform package -- was to improve the health of the Indonesian banking sector.

"I support the step taken by the government to withdraw the business licenses of the banks which are indeed unhealthy," said Hardiyanti, who is also one of seven chairpersons of the powerful Golkar political grouping.

"The finance minister's (Mar'ie Muhammad's) action is the government's action and of course it is based upon regulations," she said.

She said she was sure the decision of the finance minister and the central bank to liquidate the banks was supported by "good data".

At the same venue Tuesday, her brother Bambang Trihatmodjo expressed anger over the government's closure of Bank Andromeda in which he has a 25 percent stake.

Businessman Probosutedjo, who is President Soeharto's half- brother and owner of the liquidated Bank Jakarta, called the decision "outrageous".

Bambang has filed a lawsuit against the government for the closure. He said Wednesday, however, that he believed there was no political agenda behind the closures.

Hardiyanti said she also supported Bank Andromeda's legal action to reverse its closure. The court has scheduled a mediation hearing before a judge next Wednesday.

"I support the steps taken to look for legal certainty. As a nation based on laws, to seek a legal route is the right of every citizen," she said.

"He (Bambang) is only a citizen asking for justice and about the result. Let's wait and see. If later he loses, it doesn't matter" she said.

Soeharto's second daughter Titiek Prabowo, who owned a stake in Bank Industri which was also banned, has not commented on the issue.

Separately, Megawati Soekarnoputri called on the government yesterday to prosecute the owners and directors of the 16 liquidated banks.

In a written statement, the toppled leader of the Indonesian Democratic Party (PDI) said the government should not stop at liquidating the ailing banks, but should take the opportunity to completely settle the economic crisis.

"All owners and directors of the ailing banks should be brought to court for their actions that have destabilized the nation's economy," Megawati said.

She said government officials who failed to effectively monitor the troubled banks should also be sanctioned.

The government announced the liquidation of the 16 ailing private banks last Saturday, the day after the International Monetary Fund announced a US$23 billion bailout package to help stabilize Indonesia's economy.

Megawati, the eldest daughter of the late president Sukarno, said she saluted the government's measures to handle the crisis, but wanted it to be more comprehensive. (imn/amd/har)