HOUSE TO QUIZ GOVT OVER BI LIQUIDITY CREDITS

By Andi Abdussalam

Jakarta, Feb 8 (ANTARA) - The House of Representatives (DPR) has invited President Suailo Bambang Yudhoyono to attend a House plenary session on Tuesday (Feb 12) to answer questions about trillions of rupiahs in Bank Indonesia emergency liquidity credits (BLBI) which had turned bad since the financial crisis in 1997.

        The DPR decided to question the president about the matter after tens of lawmakers submitted a proposal for the House to use its interpellation right on the government's policy to resolve the BLBI issue. Their proposal was approved by acclamation at a recent House plenary meeting.

        In the face of the House interpellation on Tuesday, President Yudhoyono has ordered relevant ministers in his cabinet to prepare the necessary answers.

        "The government will give good answers as the president has ordered the relevant ministers to prepare them," Presidential Spokesman Andi Mallarangeng said in Jakarta on Friday.

        The BLBI refers to emergency liquidity credits extended by BI, the central bank, to commercial banks during the financial crisis which began in mid 1997. The credits were extended under the government's blanket guarantee program. Of the Rp164.5 trillion BLBI extended since 1997, Rp51.7 trillion had turned bad.

        The government had since tried to solve the BLBI problem but has met with still unsurmounted difficulties to fully recover the state assets. Though some of the bad debt cases have been settled, others have remained unresolved. The amounts of the recovered as well as the yet-to-be recovered credits had even remained unclear.

        There are at least three versions on the amounts of credits given to seven debtors that had remained bad. The first version is based on debt-ackowledgement notes (Akta Pengakuan Utang -APU) of seven BLBI obligors, which, including interest and fines, amounted to Rp9.4 trillion.

        The second version put the amounts of the bad credits at RP2.54 trillion. This amount derived from the APU notes but minus interest and fines. The interest and fines were not included based on the assumption the obligors had not failed to pay their debts.

        The third version is based on the result of audits by the State Audit Board (BPK) which put the amount of the bad BLBI debts at Rp2.297 trillion.

        It seems the government has agreed to the third version based on the BPK audits which put the amount of the bad BLBI credits at Rp2.297 trillion.

        Finance Minister Sri Mulyani said the government and the Financial Affairs Commission of the House of Representatives had agreed that the total amount of the seven obligors' debts was Rp2.297 trillion. She said the figure was based on BPK verifications.

        The seven debtors with Rp2.297 trillion consist of James and Adipura who owe the state Rp303 million, Atang Latief Rp155.72 billion, Ullung Bursa Rp424.64 billion, Omar Putihrai Rp159,1 billion, Marimutu Sinivasan Rp790,557 billion, Agus Anwar Rp577,813 billion and Lidya Muchtar Rp189,039 billion.

        It was reported that some of the seven debtors have handed over assets to the state to cover their debts. For example, Omar Putihrai who owed the state Rp159.1 billion had handed over an asset which according to an independent appraisal was worth Rp158 billion.

        Agus Anwar who has debts valued at rp577.813 billion has surrendered a plot of land worth Rp64.3 billion. Lidya Muchtar with debts worth Rp189.039 billion had turned over assets worth Rp561 million.

        Thus, about 9.71 percent of the assets had been recovered. "We have recovered Rp223.01 billion of the 2.297 trillion BLBI credits, or about 9.71 percent," the minister said.

        It is about the yet-to-be recovered amounts that the House has invited President Yudhoyono to come to the parliament to answer questions.

        But it was still unclear whether President Yudhoyono would come to the House in person to answer House members' questions.

        "The President has asked relevant ministers to prepare the best possible answers by studying old documents. Although the case did not happen during the President Yudhoyono administration, the questions must be answered by the present president," Andi said.

        According to political scientist AAGN Ari Dwipayana of the Gajah Mada Univerity, it would be better if President Yudhoyono himself come to the House to answer the interpellation. It would prove his seriousness to fight corruptions.

        "The president's presence at the inquiries will convince the public and the House about the important position the president has on the fight against corruption," he said.

        The DPR's Consultative Body (Bamus) at a meeting last month decided to invite President Yudhoyono to come to the parliament on February 12 to answer questions on the BLBI issue.

        But it seems that the DPR would not object if the president did not come in person to deliver the government's replies.

        "We are not questioning who will attend the inquires, whether the president himself or others such as the attorney general. The important thing is the government demonstrates its seriousness about it and this problem is settled," Ade Daud Nasution, the initiator of the interpellation, said. (T.A014/A/HAJM/B003) 2. 19:35. (T.A014/A/A014/B003) 08-02-2008 20:03:08