Why these banks? Depositors explain

JAKARTA (JP): Trust and reputation are the two factors most often cited by people in deciding where to put their money. Also high among considerations are convenience of location and high interest rates.

Members of the general public revealed how they choose where to put their funds.

Iskandar Lim, manager of PT Multiprima Indosejahtera, sole distributor of German-made Bechem lubricant.

I put all my savings in Bank Central Asia (BCA) because it is a safe place. I thought of switching to a state bank when I heard bad rumors about private banks.

But then I thought that I didn't actually have all that much money to worry about. So I just stayed calm.

I didn't think it possible, anyway, that something bad could hit BCA. The logic just did not fit.

F. Djunaedi, owner of Karya Agung, a construction material store, on Jl. Raya Bekasi Timur, East Jakarta, who has accounts in Bank NISP and Bank Buana Indonesia:

I contacted my banks the Monday after I heard the government announcement of the liquidation of 16 banks.

I was just checking, looking for assurances. I had no plan to withdraw my money.

As a longtime customer, I have developed a close relationship with the two banks. I can get reliable information from them. They tell me any information, including the latest gossip.

I have no intention of switching banks.

Jenny Jethnani, senior vice president of marketing, Bona Vista Apartments:

I withdrew my savings from BCA when I heard the rumors. I just didn't want to take chances. So I put half my money in HongkongBank and the rest in Standard Chartered Bank.

I still feel that BCA is an excellent bank. I remember when I went to withdraw my money, they received me very well and the staff gave me a full explanation of the situation. They did not try to dissuade me from closing my accounts.

I think I might transfer my savings back to BCA once this crisis is over.

I put 80 percent of my savings in rupiah accounts and 20 percent in dollar accounts. Standard Chartered Bank has a much lower interest rate than HongkongBank.

My friends have put their savings in Singaporean banks and they suggested that I do the same. But I don't think I need to go to such extremes.

Anti Soeroso, first secretary of the National Foster Parenting Movement (GNOTA) and RCTI promotions manager:

I have 40 percent of my savings in Bank Bumi Daya and the remainder in Bank Niaga. I am quite happy with this arrangement. I like the services at Bank Niaga. Both banks have a good reputation as they have been around for several decades.

In compliance with company policy, I had an account with Bank Andromeda through which RCTI paid salaries of its employees.

I think both government and commercial banks are at risk in this time of crisis. But I feel government banks are more reliable because they have stronger support.

GNOTA has always banked with BRI.

Harris Effendi, 29, international label manager of PT Polygram Indonesia:

I have 80 percent of my savings in BCA. The remainder is in Bank Internasional Indonesia and Bank Danamon.

I was not concerned about the rumors hitting BCA because I know it is a sound bank.

It is one the biggest banks in the country and I trust its management completely. They've gone all out to convince their customers that their bank is sound. This is important to gain our trust.

When the rumors spread, BCA stayed calm as though it were business as usual.

Their service and management are their winning points.

Mitra Alamsyah, 40, RCTI sports news coordinator:

I had my savings at Bank Andromeda because that was the bank used by RCTI to pay my salary.

On that Friday (Oct. 31), I had heard rumors from colleagues that the government would close the bank the next morning. I didn't really want to believe it then, because Andromeda belonged to the son of the President (Soeharto).

But I transferred Rp 1.3 million to an account at Bank BNI and left Rp 700,000 with Andromeda. The transfer was made too late, so I still had Rp 2 million at Andromeda when it was closed the following day.

It was fortunate that I had withdrawn Rp 25 million from my savings the previous month to buy a new car. I had also transferred a Rp 4 million bonus that I received to Bank BNI.

Now I bank with Bank BNI, BTN, BDN and BCA.

Nunung, a 27-year-old baby-sitter in Rawamangun, East Jakarta:

My employer suggested in 1995 that I open a bank savings account.

I didn't know which bank to choose, but my employer recommended BCA because it provides an ATM card.

I was told that I could take my money anytime and anywhere I needed through the ATM.

My employer instructed me to take all my money out when he heard rumors about BCA.

I was told that the bank would be closed and I would lose the money if I did not withdraw it quickly.

Now I keep my money in a drawer, until my employer says it is safe for me to put my money in a bank again.

Timothy Julius Andriyanto, a 42-year-old architect:

I had savings, totaling Rp 4 million, at Bank Andromeda and Bank Harapan Sentosa, both of which were closed down. But most of my savings were deposited at Bank Bali and Bank Danamon.

After the liquidation of the 16 banks, I've transferred some of the money to state banks and a foreign bank.

Ali Wongso Sinaga, member of the Jakarta city council: I've always put my money in a state bank, going back to my school days.

I am not interested in high interest rates or prize incentives offered by the private banks. I just want stability.

But I would go to a private bank to obtain credit, because it is easier to secure loans from them than asking a state bank. (team)