Watch Out! Mahfud MD Threatens To Criminalize BLBI Evasion If Proven Embezzlement Of Collateral Assets

Coordinating Minister for Political, Legal and Security Affairs Mahfud MD. (Photo: Doc. Antara)

JAKARTA - The government continues to show its seriousness in efforts to resolve the Bank Indonesia Liquidity Assistance (BLBI) case which has been stalled for decades.

Most recently, the Coordinating Minister for Political, Legal and Security Affairs (Menko Polhukam) Mahfud MD stated that the state would not hesitate to take further legal action if the obligor or debtor were deemed uncooperative or even rebellious.

"There is a possibility of punishment (for obligors and debtors) if they commit embezzlement, counterfeiting, and diversion of goods that have been handed over to the state," he said at a press conference on the development of the BLBI case which was broadcast virtually, Thursday, December 23.

According to Mahfud, this strategy is a firm step by the government in providing a deterrent effect to the perpetrators so that the debt problem since 1998 can be resolved immediately.

"We will also stipulate administrative and civil sanctions at a later time when it is already in a certain process," he continued.

On this occasion, Mahfud revealed that the first stage of collection to the obligor/debtor had successfully recorded state revenues of Rp. 313.94 billion or rounded up to Rp. 314 billion.

Meanwhile, in the form of physical control, the former BLBI property assets that were successfully controlled by the Task Force reached 8.32 million square meters.

Then, for the second stage, eight further obligors have been called. Meanwhile, one obligor with the initials SS with confiscated assets of 100,848 square meters. Then, another obligor is the Texmaco Group whose assets were confiscated covering an area of 4.79 million square meters from 587 plots of land in five different locations.