Some crook obligors repaid debts with assets with value declared much higher than the real value."
Jakarta (ANTARA News) - The Corruption Eradication Commission (KPK) said it is digging up information about how a document has been issued saying that a debt of Rp4.8 trillion owed by business tycoon Sjamsul Nursalim had been fully repaid causing a loss of Rp3.7 trillion to the state.

Syafruddin Arsyad Tumenggung former chief of the Indonesian Bank Restructuring Agency (IBRA) has been named a suspect in the case. IBRA was formed to seek settlements of big debts in Bank Indonesia Liquidity Assistance (BLBI) through restructuring by a number of private banks, which faced liquidity problem following the monetary crisis in 1997-1998.

On Tuesday, KPK questioned Rizal Ramli, former finance minister and coordinating minister for economy in 2000-2001 as a witness.

After the questioning Rizal Ramli recalled a long story about how the central bank had issued BLBI. Rizal Ramli blamed the BLBI case largely on the role of the International Monetary Fund (IMF) under Michael Camdessus. He said interference by IMF contributed to worsening the impact of the regional monetary crisis on Indonesian economy similar to the one experienced by Latin American countries when asked IMF for remedy.

"Before Managing Director of IMF Michael Camdessus met with President Suharto in October, 1997, I together with a number of other economists were invited. I was the only one against inviting IMF to Indonesia after learning from Latin American experience," he said.

"IMF asked for the dissolution of 16 small banks in 1998 triggering big run on banks resulting in near bankruptcy of big banks like Bank Danamon and Bank Central Asia. The government, therefore, was forced to provide the BLBI reaching US$80 billion," he said.

Worse still, the IMF forced the government to raise the oil fuel price by 74 percent on May 1, 1998 resulting widespread demonstrations in all big cities and rupiah shrinking in value from Rp2,500 to Rp15,000 per dollar, he recalled.

"Cash loan should be repaid with cash but the government of President B.J. Habibie allowed repayment with assets in shares, land and buildings. Some crook obligors repaid debts with assets with value declared much higher than the real value," he said.

Rizal said he was summoned by KPK in his capacity as former coordinating minister for economy and chairman of the Financial Sector Policy Committee (KKSK) at that time.

"But KPK is investigating what happened after I was no longer chairman of KKSK and no longer a minister. KPK asked for information about procedure of decision making related to IBRA," he said.

KPK already questioned Kwik Kian Gie, who was chief economic minister before Rizal Ramli for the same reason.

Syafruddin Arsyad Tumenggung as IBRA chairman was charged with corruption abusing its authority by issuing a document saying the debt of Sjamsul Nursalim as the owner of Bank Dagang Nasional Indonesia (BDNI) was already settled in 2004 causing a loss of at least Rp3.7 trillion to the state.

Bank Indonesia extended more than Rp144.5 trillion to 48 banks facing liquidity problem in 1998 hoping that they could operate normally and recover from the crisis. However, many of the receivers of the loans had misused the funds causing a total loss of Rp138.4 trillion to the state for failure to recover the fund.

Investigations by the Attorney General of a number of the obligors were stopped on documents issued by IBRA saying that their debts had been settled based on a presidential instruction on legal certainty for debtors who had fully repaid their debts.

KPK already questioned a number of former senior officials including former minister for state enterprises Laksamana Sukardi, former chairman of IBRA I Putu Gede Ary Suta, former chief economics minister Dorodjatun Kuntjoro-Jakti, former finance minister Bambang Subiyanto and Kwik Kian Gie.

KPK spokesman Febri Diansyah said KPK investigations would not stop at Syamsul Nursalims Bank Dagang Nasional Indonesia. Other BLBI obligors woulod also have their turn of investigation, he said.
(Uu.H-ASG/A014)

Editor: Priyambodo RH
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