... but He Wants the Truth to Come Out

Back in 1998, the Asian financial crisis hit Indonesia hard. What began as a crisis in neighboring Asian countries in 1997 ended up having a systemic impact on Indonesia. Ten years later, another monetary crisis took place, this time on a global scale and posing an even greater threat to Indonesia. Learning from the 1998 experience, those responsible for the nation’s financial sector acted and coordinated promptly to avert disaster. They did a good job. Indonesia didn’t have to fall as hard as it did in 1998.

Out of this background emerged the Bank Century case. Suspicions surrounding the bank’s bailout prompted public scrutiny after the government takeover, which was mandated by the Financial System Stability Committee (KSSK) and Bank Indonesia through a 2008 government regulation in lieu of law (Perpu) on safety nets for the financial sector.

According to the much-awaited report by the Supreme Audit Agency (BPK), there were indeed violations related to the bank. These were found in the bank’s merger. The report also blamed Bank Indonesia for its poor supervision, calling the central bank indecisive and imprudent in its handling of the Bank Century merger. However, the BPK has yet to confirm any criminal allegations in the bailout of the bank. And one thing is certain: The BPK didn’t detect corruption, nor did it suggest there were efforts by anyone or any party to steal once the money had been dispersed.

Also mentioned in the BPK report is the fact that money was injected into Bank Century after it was declared nonperforming and was taken over by the State Deposit Insurance Corp (LPS). Questions then arose. Where exactly did the money come from? Was any taken from the annual state budget?

The LPS, which has always held a favorable “unqualified opinion” in BPK audits, ensured that no state funds were allocated to the Bank Century bailout. Instead, the money came from LPS members. This is why, when it came to making decisions, the monetary authority didn’t find it imperative to ask for the blessing of the House of Representatives: Not a single cent came from the state budget.

On to the next questions. Where did all the money go? Can it be returned?

The latest data shows that total assets of Bank Century owner Robert Tantular reach about Rp 12 trillion ($1.3 billion), most of which is in Hong Kong. Efforts are being made to retrieve the money. In the case of state funds held abroad, the process usually involves the freezing of assets before they can be returned. This may take a long time but the government is showing strong political will to resolve the problem.

The same political will is shown by the government of President Susilo Bambang Yudhoyono in making sure the public knows the truth in this case. As a citizen, I truly believe that we haven’t lost our common sense and conscience in trying to see this case through in a clear and proportional way.

That includes giving credit to monetary authorities such as Vice President Boediono and Finance Minister Sri Mulyani, who have maintained a consistent and impeccable track record in protecting the nation’s financial sector. Indonesia’s resilience in the latest financial crisis is just one example.

Looking back to 2008, the House also proposed an inquiry committee into the Bank Indonesia Liquidity Assistance funds (BLBI) distributed by the central bank worth Rp 600 trillion ($63 billion). This probe never materialized and questions still linger as to where the state funds went. In the case of Bank Century, which is worth about one-tenth of that amount, hope still prevails that the money might be salvaged. Regardless of the fact that no state funds were involved, the government fully supports efforts by the House to uncover the truth and serve justice in the Bank Century case.

The president is working hard to honor the people’s right to truth and justice. It is his commitment to run a people-centered democracy — not state-centered and certainly not quasi-democracy. We must believe that the truth will make its way to the fore, even if it’s sometimes late in getting there.

Dr Julian Aldrin Pasha is spokesman for the president of Indonesia.