Aulia admits to approving disbursement of YPPI fund

Irawaty Wardany ,  The Jakarta Post ,  Jakarta   |  Wed, 09/24/2008 10:42 AM  |  Headlines

Former Bank Indonesia deputy governor Aulia Tantowi Pohan on Tuesday admitted to approving the disbursement of Rp 100 billion (US$10.7 million) from the Indonesian Banking Development Foundation (YPPI), following a BI board of governors meeting.

"The BI board of governors thought we would need incidental funds for legal aid for several former BI senior officials, and the board decided on June 3, 2003, to ask YPPI to set aside some Rp 100 billion for that," Aulia told the Corruption Court during the trial of legislators Hamka Yandhu and Anthony Zeidra Abidin.

Asked if he approved the decision, Aulia said as the chairman of the foundation's board of patrons, he had to obey the board of governors' decision.

"I had no choice but to comply with the board of governors' decision," said the father-in-law of President Susilo Bambang Yudhoyono's first son Agus Harimurti.

Aulia added Rp 68.5 billion was used for legal aid for former BI senior officials, while the remainder was used to curry favor for the central bank with House of Representatives' members.

He acknowledged the money was handed out to legislators to expedite the settlement of the BI liquidity support (BLBI) case and to pass the amendment of the BI law.

He added the idea to disburse the money to legislators came from Rusli Simanjuntak, the suspended chief of BI's Surabaya office, who headed a special team established by the BI board of governors to settle the BLBI cases and amendment of the BI law.

Aulia said the money was disbursed in three phases; Rp 7.5 billion in June 2003, Rp 7.5 billion on July 15, 2003, and Rp 16.5 billion on Sept. 15, 2003.

"To whom was the money handed over?" asked one of judges on the panel presided over by Masrurdin Chaniago.

"I don't know. I only approved the decision at the policy level. Those in charge of the distribution were Rusli and Asnar (Ashar)," Aulia said.

Asnar was a member of Rusli's staff. The latter is now standing trial in the same case, as is former BI legal bureau head Oey Hoey Tiong.

"Rusli later told me he gave the money to Anthony and Hamka as representatives of the House's then Commission IX (overseeing financial and banking issues)," Aulia said.

He added Rusli only reported to him verbally at that time.

"He said the receipt and its accountability would be reported later, after the (disbursement) program was finished," he said, but added he had yet to receive any report on the money.

When asked by the judges about the outcome of the disbursement, Aulia said the House ended up approving the BLBI fund be charged to the state.

Between 1997 and 1998, at the peak of the Asian economic crisis, the government disbursed some Rp 144.5 trillion to ailing major banks. But it failed to dun the debts, and instead, during the administration of Megawati Soekarnoputri, it granted debtors large discounts and acquitted several of them of criminal charges.

Former BI governor Burhanuddin Abdullah said in his testimony the outcome of the BI board of governors' decision proved to be effective.

"The fact is, the money was disbursed, and the dissemination was carried out, and now Indonesia's economy has improved," he said.

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