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Indonesian Legal News

BTN-Mandiri Acquisition Plan is Questioned

Wednesday, April 23, 2014  Quick View

There has been no discussion on this acquisition plan

Acquisition of BTN, House Awaits Decision from Privatization Committee

Wednesday, April 23, 2014  Quick View

The House currently has the perception that the BTN-Mandiri acquisition is currently no more than a notion


KPK Investigate Two of Nine Criminal Indications on Bank Century Case

Monday, November 29, 2010  
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As there are nine criminal indications found by the Supreme Audit Agency (“BPK”) on the Bank Century scandal, only two indication that will be examined by the Corruption Eradication Commission (“KPK”), respectively, the Short-term Financing Facility (“Fasilitas Pendanaan Jangka Pendek /FPJP”) and the Temporal Investment participation (“Penyertaan Modal Sementara / PMS”).

While attending a seminar in Jakarta on (27/11), M Jasin, the Deputy Chairman of KPK, explained that they will be raised in a coordination meeting next week with the BPK and other law enforcement institutions.

However, Mr. Jasin did not elaborate why KPK is only pursuing investigations on FPJP and PMS when BPK’s findings revealed that the Bank Century bailout cost the state to suffer a financial lost amounting to IDR 6,7 trillions.

It should be noted that a FPJP is given by the Bank of Indonesia to troubled banks, which serve the function of Bank of Indonesia as Lender of Last Resort, regulated under Article 11 (1) Law 6 of 2009 on the Second Amendment of Law No.23 of 1999 regarding Bank of Indonesia.

Article 11 (1)

Bank of Indonesia may provide credit or financing, based on Sharia Principles for a maximum period of 90 (ninety) days for Banks to overcome their short-term financial difficulties.

Where in order to acquire an FPJP, a bank must comply with Bank of Indonesia Regulation (“PBI”) No. 10/26/PBI/2008 on Short-term Financing Facility for Commercial Banks.

On a different occasion on Wednesday (24/11), Mr. Yasin explained to the Bank Century Case Team Inspector that KPK had not found any indication of corruption in the Bank Century scandal.

KPK’s investigations cite there were no criminal intentions on the part of BI officials on deciding for the bailout as Bank Century was considered a failed bank posing a massive systemic risk for the banking industry.

Unsatisfied members of the Bank Century Case Team Inspectors will further decide and examine the issue in more detail with the KPK at a meeting to be held next Wednesday 1 December 2010.

Leo Wisnu Susapto/Pirhot Nababan  

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