BLBI Case, Attorney Fadel Muhammad: Debt Issues Legally Completed

Deputy Chairman of MPR Fadel Muhammad/Antara

JAKARTA - Deputy Chairman of the MPR Fadel Muhammad said that there were no debts related to Bank Indonesia Liquidity Assistance (BLBI) from Bank Intan. This is stated in the decision of the Supreme Court (MA).

This was conveyed by Fadel Muhammad through his family attorney, Muchtar Luthfi. In fact, he said, the Ministry of Finance and Bank Indonesia were ordered jointly and severally to pay as a collection right to Fadel Muhammad in the amount of Rp. 23,500,000,000.

He said this was stated in the Supreme Court's decision on October 19, 2005 No. 1348 K / Pdt / 2004. Therefore, there is no longer any problem with the BLBI debt from Bank Intan because the problem has been resolved by legal means.

"Our client is taking legal action by filing a civil lawsuit through the South Jakarta District Court, which, as we know, has permanent legal force," said Fadel Muhammad's Family Lawyer, Muchtar Luthfi, Jakarta, Friday, December 24.

Then, he explained, the fact that the takeover of PT Bank Intan by Fadel Muhammad and the Group in 1996 was in the context of 'Rescuing Bank Intan, (resque bank) so different from other bank owners who were frozen or liquidated.

Fadel Muhammad and the Group, initially hoped that there would be an Independent Auditor to calculate the rights and obligations of the conditions for the takeover of Bank Intan, but this never came to fruition.

"So our client was forced to take legal action by filing a civil lawsuit through the South Jakarta District Court, where based on an accountable calculation, the result of the decision, our client has a remaining paid-up capital of 23.5 billion Rupiah and that is not state money," he said. Furthermore, as a brief description of the conditions when PT Bank Intan was taken over by our Client and the Group are as follows. First, the amount of Non-Performing Loans (NPL) has reached a ratio of 69.9% equivalent to 157.1 billion Rupiah of total loans of 209.4 billion Rupiah, while the collateral controlled which is still marketable is only 8.2 billion Rupiah.

The issue of the takeover has also been resolved in accordance with the applicable regulations, based on the Letter of Bank Indonesia to Fadel Muhammad No.28/41 YUPB3/Rahasia dated March 20, 1996 which contains, among others:

- Approved the restructuring program of PT Bank Intan by Fadel Muhammad and the Group. - Approved the provision of a subordinated loan of 100 billion Rupiah plus the conversion of BI gas stations of 21.8 billion Rupiah with a repayment period of 10 years during the bank restructuring period, then extended to 15 years, provided that additional paid-in capital by investors (Fadel Muhammad and the Group) amounted to 60 billion rupiah and escrow account 10 billion rupiah. - Carry out management improvements. - Approved the restructuring of non-performing loans of 172 billion Rupiah to be amortized with escrow account interest for 10 years (then extended for 15 years.