BLBI Debt Case Reaches IDR 110 Trillion, Sri Mulyani Reveals Due To Financial Crisis In 1998

The Task Force for Handling State Claims for the Bank Indonesia Liquidity Assistance Fund (BLBI) was formed with the aim of handling, resolving, and restoring state rights originating from the management of the former National Bank and Bank Restructuring Agency in Liquidation including Bank Indonesia Liquidity Assistance and property assets effectively and efficiently.

Meanwhile, the BLBI Task Force was formed by President Jokowi through Presidential Decree (Keppres) Number 6 of 2021 jo. Presidential Decree No. 30 of 2023 as a form of effort to ensure the return of state collection rights.

Since its establishment, various efforts to restore state collection rights have been carried out by the BLBI Task Force including summoning obligors/debtors, physical control through installing signs on property assets, as well as confiscation of collateral assets from obligors/debtors.

Finance Minister Sri Mulyani Indrawati said that BLBI was a consequence of the financial crisis that hit Indonesia from 1997 to 1998.

"At that time the state had to bail out the crisis," Sri Mulyani said in a post on her personal Instagram, quoted on Sunday, July 7.

Sri Mulyani conveyed that with various steps that had been taken by the BLBI Task Force, until the first semester of 2024, the BLBI Task Force had recorded an asset acquisition of 44.7 million square meters and non-tax state revenue (PNBP) of Rp38.2 trillion or 34.59 percent of the obligation of Rp110.45 trillion.

"The total number of state collections to obligors from this BLBI assistance reached Rp110.45 trillion. A very large number," he said.

Previously, the Coordinating Minister for Political, Legal and Security Affairs (Menkopolkam) as well as the Chairperson of the Steering Committee of the Task Force for Handling State Collection Rights for the Bank Indonesia Liquidity Assistance Fund (BLBI Task Force), Hadi Tjahjanto said that the government would extend the task period of the BLBI Task Force to regulate the collection process for BLBI obligors and debtors by the relevant ministries/institutions.

"The BLBI Task Force will end on December 31, 2024, while there are still state rights or debtors that have not been completed. To continue the work of the BLBI task force, a draft presidential regulation is currently being prepared, which is a substance of collaboration with various ministries/agencies to complete state collection rights that have not been completed by obligors and debtors," he said at the Press Conference, Friday, July 5.

Hadi said the government was preparing an extension of the BLBI Task Force's tenure in the process through the draft Presidential Regulation (Perpres) and asked the BLBI Task Force to immediately use assets to be of economic value, so that it is beneficial to the state.

"Therefore, I also asked the BLBI Task Force to complete the provisions of Article 26 paragraph 6 of PP Number 28 of 2022 which implements it to immediately utilize and empower assets controlled by BLBI to have economic value, therefore it is necessary to make breakthroughs to utilize and empower BLBI confiscated assets to be economical for the state. At the same time as an effort to reduce the obligations of obligors or debtors," he said.

Hadi conveyed that the BLBI Task Force had signed a report on the handover of assets that had been successfully confiscated from obligors and debtors to ministries/agencies amounting to Rp2.77 trillion or an asset area that was handed over covering an area of 989,168 square meters.

"What was submitted to the Supreme Court, the Ministry of Defense, the Ministry of Finance, the Ministry of Religion, the Ministry of KKP, BIN, Bawaslu, BPS, and the Indonesian Ombudsman. The land carried out by PSP and the grants was, among others, designated as service office buildings, official houses, laboratories, campuses. State Polytechnic to the evidence storage building and these assets must be immediately used by ministries/agencies," he said.

Hadi hopes that the assets that have been handed over to the ministry/institution can be immediately used so that no irresponsible party occupies the assets.

"Hopefully, the handover of assets to 9 ministries/agencies of Indonesian society can see that the assets of the former BLBI are used optimally to support the performance and targets of ministries/agencies in optimal service to the community," he concluded.