No mercy for BLBI debt evaders

Jakarta, CNN Indonesia —

Coordinating Minister for Politics, Law and Human Rights Mahfud MD reveal that there obligor the case of Bank Indonesia Liquidity Assistance (BLBI) which has debt IDR 58 trillion. However, the bill became 17 percent.

There are also obligors who only need to pay 30 percent of the total debt. In other words, obligors can pay debts much less than their total obligations.

The BLBI debt discount is actually based on the issuance of the Clearance Certificate (SKL) issued through Presidential Instruction (Inpres) Number 8 of 2002.

The SKL was issued by the National Bank Restructuring Agency (IBRA) which was signed by former president Megawati Soekarnoputri on December 30, 2002.

Based on the Presidential Instruction, the obligor or debtor receiving the BLBI is considered to have settled its debt even though it has only paid 30 percent of the total shareholder obligations in cash.

Meanwhile, the remaining 70 percent is paid with a certificate of proof of rights to IBRA.

Mahfud said that the reason for the government to collect debt from obligors was cheaper than the total disbursed because it was adjusted to the 1998-1999 monetary crisis situation.

“They are given loans by the state, debts to the state, the state issues bonds, owes to BI, then it is given to them. They pay much cheaper,” he said in a press conference, Tuesday (21/9).

From a layman’s point of view, the government is like giving discounts to BLBI obligors. The number is no joke. Take, for example, an obligor who has a debt of Rp. 58 trillion, only 17 percent has been charged, meaning that only Rp. 9.86 trillion must be returned to the state.

The obligor can save around IDR 48 trillion in funds. On the other hand, the government lost funds that should have returned to the state’s pockets of Rp48 trillion.

However, the government ensures that the amount of funds or assets to be pursued by BLBI obligors remains on target, which is Rp110.45 trillion.

The figure did not decrease even though some of the funds billed to obligors were below the amount disbursed during the 1998 monetary crisis.

In total, the government disbursed funds of Rp147.7 trillion to 48 banks. The funds are liquidity assistance financed through state bonds (SUN).

The debt securities are still in the hands of BI. Assistance was given to reduce the burden on bank owners during the 1997-1998 monetary crisis.

However, only a small number of banks have returned the funds. The remaining funds that must be returned to the state pocket are Rp110.45 trillion plus interest.

Apart from SKL, Director of the Center of Economics and Law Studies Bhima Yudhistira said the process of collecting BLBI obligors still disappoints the people. This is because the funds that can be paid are only part of the total debt of the obligor.

“The task force calling for obligors received a positive response. However, it hurt the sense of justice for the community,” Bhima told CNNIndonesia.com, Wednesday (22/9).

Moreover, the funds used to save bank owners are people’s money. The money comes from tax receipts that are paid by the community every year. “There should be people’s tax money there. The tax money was made to save conglomerates,” said Bhima.

The government should get 100 percent of the funds disbursed to BLBI obligors along with interest for more than 20 years. “It takes decisiveness from the government. No mercy,” said Bhima.

The government should not give discounts to BLBI obligors. Moreover, the government is in need of a lot of money to deal with the COVID-19 pandemic.

According to Bhima, if the target of Rp110.45 trillion can be collected, the government will be able to collect 29.4 percent of the total debt interest payments this year.

“If Rp110 trillion is equivalent to 29.4 percent of the total debt interest payment obligations in 2021 which amounted to Rp373 trillion,” said Bhima.

Moreover, the Rp110 trillion fund is also equivalent to 58.82 percent of the social protection budget in the national economic recovery program (PEN) this year which is Rp187 trillion. “The money can be used to help the state for urgent social spending. It must be billed completely,” said Bhima.

Government Authority Falls


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