VP to respond over Bank Century fiasco

Vice President Boediono disclosed Friday he was ready to respond to questions by an inquiry committee to be established by the House of Representatives to probe the Rp 6.7 trillion Bank Century bailout

He said he would not mind answering questions to provide the public with facts about the debacle.

“I will abide by the country’s rule of law,” he told Antara at a press conference in his office in Jakarta.

Boediono, who was the former governor of Bank Indonesia, the central bank, said the bailout had been conducted in line with official procedures.

The central bank has argued that saving Bank Century was vital because its collapse could have adversely affected the banking system.

Analysts, however, suspected the bailout was granted not because of a desire to protect the banking sector, but as part of a scheme to rescue the investments of high-profile and politically connected depositors.

Gayus Lumbuun, a legislator from the Indonesian Democratic Party of Struggle (PDI-P), said the House had only approved a bailout of Rp 1.3 trillion.

Boediono acknowledged the central bank’s weak supervision of the banking system. He said it should be improved to prevent a repeat incident.