ID :
27893
Sat, 11/01/2008 - 07:37
Auther :
Shortlink :
http://m.oananews.org//node/27893
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BANK INDONESIA NOT TO BAILOUT INDOVER BANK
Jakarta, Oct 31 (ANTARA) - Bank Indonesia (BI) finally decided not to inject funds into its subsidiary Bank Indover to bail it out from bankruptcy following its freezing by the Dutch central bank.
The Indonesian central bank's senior deputy governor, Miranda S Goeltom, said in a press conference here on Friday that BI could not inject funds into the bank because no official approval was received from the House of Representatives (DPR) until the October 31 deadline set by the Dutch central bank.
"Bank Indonesia could not put additional capital into Indover Bank because it had received no approval from the DPR until the end of the trial process of the case on October 30," she said.
She said the House Commission XI had so far only stated that it had no objection to BI bailing out Indover but no decision was made in a plenary meeting of the DPR with regard to it.
She said for the settlement of the bank, BI was now cooperating with a curator appointed by the Dutch central bank.
She said BI was ready to be audited in connection with the case. "We are ready to be audited, be it an ordinary audit or an investigation by independent auditors including BPK," she said.
Meanwhile about the funds of some Indonesian banks that had been put in Indover Bank she said that it would be settled. It is predicted the amount of the funds reached millions of US dollars.
BI deputy governor Mulyaman D Hadad meanwhile said on the occasion he would set up a team to study the impact of Indover's bankruptcy both financially or on banks.
Another BI deputy governor Hartadi A Sarwono said that he would minimize the impact on the country's risk before the international world by spreading correct information about it.
"This is a corporate problem between BI and its subsidiary and not a state problem. It is an ordinary corporate problem," he said.
Indover's operations were frozen by a Dutch court of law after defaulting with US$92 millions.
BI, the government and the DPR have earlier discussed the case and produced a bailout plan by injecting up to 546 million euro.
Also attending the press conference were other BI officials such as Budi Mulia, Siti Fadjriah, Budi Rochadi and Ardhayadi. BI governor Boediono did not attend the conference.
The Indonesian central bank's senior deputy governor, Miranda S Goeltom, said in a press conference here on Friday that BI could not inject funds into the bank because no official approval was received from the House of Representatives (DPR) until the October 31 deadline set by the Dutch central bank.
"Bank Indonesia could not put additional capital into Indover Bank because it had received no approval from the DPR until the end of the trial process of the case on October 30," she said.
She said the House Commission XI had so far only stated that it had no objection to BI bailing out Indover but no decision was made in a plenary meeting of the DPR with regard to it.
She said for the settlement of the bank, BI was now cooperating with a curator appointed by the Dutch central bank.
She said BI was ready to be audited in connection with the case. "We are ready to be audited, be it an ordinary audit or an investigation by independent auditors including BPK," she said.
Meanwhile about the funds of some Indonesian banks that had been put in Indover Bank she said that it would be settled. It is predicted the amount of the funds reached millions of US dollars.
BI deputy governor Mulyaman D Hadad meanwhile said on the occasion he would set up a team to study the impact of Indover's bankruptcy both financially or on banks.
Another BI deputy governor Hartadi A Sarwono said that he would minimize the impact on the country's risk before the international world by spreading correct information about it.
"This is a corporate problem between BI and its subsidiary and not a state problem. It is an ordinary corporate problem," he said.
Indover's operations were frozen by a Dutch court of law after defaulting with US$92 millions.
BI, the government and the DPR have earlier discussed the case and produced a bailout plan by injecting up to 546 million euro.
Also attending the press conference were other BI officials such as Budi Mulia, Siti Fadjriah, Budi Rochadi and Ardhayadi. BI governor Boediono did not attend the conference.
