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Timeline of Century fiasco
Time to pay up: A customer and teller in a Jakarta Century Bank office in this photo taken March 3
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span class="inline inline-right">Time to pay up: A customer and teller in a Jakarta Century Bank office in this photo taken March 3. The burgeoning bailout for this small bank has become a big battleground for political parties seeking revenge after the presidential elections. JP/Berto Wedhatama
2004
Bank CIC merges with Bank Pikko and Bank Danpac to form Bank Century.
2005
Bank Century falls under Bank Indonesia's (BI) intensive supervision program, following the purchase of risky bonds.
2007
October: BI urges Century to seek strategic investors to thoroughly help settle problems at the bank.
2008
Sept. 30: Bank Century's capital adequacy ratio (CAR) plunges to 2.35 percent, far below the 8 percent minimum requirement.
Oct. 15: The government issues a regulation-in-lieu-of-law on the Financial System Safety Net, also known as the crisis bill, as the global financial crisis rages on. The bill is subject to approval by parliament.
Oct. 30: Bank Century defaults on a US$55 million loan payment.
Oct. 31: Bank Century's CAR drops to negative 3.53 percent.
Nov. 3: Bank Century again defaults on the $55 million loan payment.
Nov. 6: Bank Century comes under special supervision due to its deteriorating financial condition.
Nov. 12: Bank Century fails to settle a Rp 5 billion payment with the central bank's clearing system.
Nov. 13:
Finance Minister Sri Mulyani Indrawati reports the Bank Century case to President Susilo Bambang Yudhoyono in Washington DC on the sideline of the G-20 meeting.
09:30
The Indonesia Stock Exchange (IDX) suspends trading in Bank Century shares, pending clarification from the bank over the clearing problem. The shares traded at Rp 50 prior to the suspension.
16:00
BI says that although Bank Century is having problems settling its clearing payments due to a technical problem, the issue will not undermine the country's banking system.
Nov. 17: PT Sinar Mas Multiarta, a unit of the Sinar Mas Group, declares it has agreed to buy 70 percent of Bank Century, with the purchase expected to be completed "immediately".
Nov. 20-21: The Financial Sector Stability Committee, chaired by Finance Minister Sri Mulyani with members including BI Governor Boediono, meet for 12 hours to declare Bank Century's collapse and take it over - the first such move since the 1997-1998 crisis. The decision is based on fears that a collapses may pose a systemic threat to the country's entire banking sector. The Deposit Insurance Agency (LPS) takes over the bank.
Nov. 23: First batch injection by LPS, worth Rp 2.77 trillion (US$277 million), aimed at increasing CAR to 10 percent from negative 35.92 percent. The government appoints Bank Mandiri executive Maryono as president director of the bank.
Nov. 24: Bank Century operates normally.
Nov. 25: Minister Mulyani and BI Governor Boediono report the case to Vice President Jusuf Kalla, who objects to the bailout.
Nov. 26: Police arrest Bank Century owner Robert Tantular for allegedly defrauding investors.
Dec. 5: Second batch injection, worth Rp 2.20 trillion, aimed at healing the bank.
Dec. 24: Legislators reject the crisis bill, forcing the government to propose a revision.
2009
Feb. 3: Third batch injection, worth Rp 1.15 trillion, aimed at maintaining CAR at a healthier level.
May 11: Bank Century exits from BI special supervision.
July 21: Fourth batch injection, worth Rp 630 billion, aimed at maintaining CAR.
July 25: During a deliberation of the crisis bill, the government unintentionally discloses to parliament the swelling of the Bank Century bailout, now totaling Rp 6.76 trillion ($676 million).
Aug. 18: Prosecutors seek an eight-year sentence and Rp 50 billion fine for Bank Century owner Robert Tantular.
Aug. 27: The House of Representatives' Commission XI for financial affairs holds hearings with Minister Mulyani and BI senior deputy governor Darmin Nasution to clarify the swelling of the bailout cost. The House orders the Supreme Audit Agency (BPK) to launch an investigation into the bailout.
Aug. 28: Vice President Jusuf Kalla denies any involvement in the bailout, claiming he was not informed of the whopping bailout cost other than the first batch injection of Rp 2.77 trillion, which was executed without his prior knowledge.
- JP/Rendi A. Witular, Aditya Suharmoko, Andi Haswidi and Andra Wisnu
