We refer to The Jakarta Post article on Aug. 26, on a plan by the Corruption Eradication Commission (KPK) to step up investigation into alleged irregularities surrounding the disbursement of Bank Indonesia liquidity loans.

Building a strong economy and creating jobs calls for respect of contracts and agreements so that businesses can confidently invest in developing Indonesia. It is therefore extremely disappointing to see the return of misleading reports on the BLBI policy that occurred almost 20 years ago.

In 1998, Indonesia led the world by adopting a bailout policy that required former bank owners to reimburse the government for costs associated with resolving their banks. These were legal agreements between the bank owners and the Indonesian government that were prepared using global best practices and under intense international scrutiny.

The bank owners were required to transfer agreed lists of assets to the bank restructuring agency. Those owners that met the terms of these agreements by transferring the assets were given documents by the government stating that all of their obligations had been met.

It is essential for Indonesia’s future prospects that these bank owner agreements are respected. Investment and job creation depend on giving investors certainty that once an agreement is met, it will not be reversed.

M. Taufik
Corporate Communication Department
GT Group