Tutut backs government action on ailing banks

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)