Mahfud: Sanctions For BLBI Debtors Will Take Effect Soon If They Don't Pay Off Debts

Coordinating Minister For Political, Legal And Security Affairs Mahfud MD/DOK Kemenko Polhukam

Coordinating Minister for Political, Legal and Security Affairs Mahfud MD reminded obligors/debtors of Bank Indonesia Liquidity Assistance (BLBI) to be subject to sanctions in the form of restrictions on banking services to decomposition if they do not immediately pay their debts to the state.

Mahfud MD, who is currently also the Chair of the Steering Committee of the Task Force for Handling State Collection Rights for the Bank Indonesia Liquidity Assistance Fund (BLBI Task Force), explained that the legal umbrella governing the sanctions had been issued by the government, one of which was Government Regulation Number 28 of 2022 concerning Management of State Receivables by the State Receivables Affairs Committee.

"We have prepared administrative fines, from the start it has been discussed. For example, to be careful with this, maybe (they) will close their rights to take credit from the bank. So, this person is told, this person, cannot, then the passport is revoked, cannot travel for several days until it is clear when you want to settle and how much debt is recognized," Mahfud MD said as quoted by ANTARA, Tuesday, June 6.

He conveyed that the sanctions, which limit civil service and public services for BLBI obligors/debtors, were the government's efforts to force them to immediately return state money. The reason is that the money is intended for the benefit of the community and supports the work of ministries/agencies and local governments.

"We already have a legal umbrella for us to do that. The legal umbrella has been issued. So, please cooperate, which has been counting not meeting (the value of the debt, ed.), let's meet (and discuss) how it will be resolved," said the Chairman of the Steering Committee of the BLBI Task Force.

Mahfud said that PP No. 28/2012, which helped the BLBI Task Force in collecting state money from obligors/debtors, needed to be assessed for their effectiveness by the Ministry of Finance.

"(The goal) is that the mechanism for returning state collection rights by the State Receivables Affairs Committee in the future will be better, one of which is to apply the authority to limit civil rights, public services, to uncooperative obligors/debtors," said Mahfud.

The BLBI Task Force, which consists of several ministries/agencies, has started working since Indonesian President Joko Widodo signed Presidential Decree Number 6 of 2021 concerning the Task Force for Handling State Collection Rights for Bank Indonesia Liquidity Assistance (BLBI) funds.

In the Presidential Decree, the BLBI Task Force ended on December 31, 2023.

Since starting duty from June 2021 to May 2023 or in the span of almost two years, the BLBI Task Force managed to return funds of around Rp. 30.66 trillion from BLBI obligors/debtors.

In detail, Rp1.1 trillion in the form of money (PNBP to the state treasury), confiscation and delivery of other collateral and handover of asset guarantees of 1,784.34 hectares with an estimated value of Rp14.77 trillion, physical control of property assets covering an area of 1,862.91 hectares whose estimated value is equivalent to Rp9.278 trillion.

Then, the handover of assets to ministries/agencies (K/L) and regional governments covering an area of 278.6 hectares with an estimated value of IDR 3.07 trillion, and non-cash state capital participation (PMN) of 54 hectares with an estimated value of IDR 2.49 trillion.

Mahfud and Finance Minister Sri Mulyani are optimistic that by the end of 2023, the BLBI Task Force can collect at least 50 percent of the total Rp110.45 trillion in state money borrowed by BLBI obligors/debtors.