Stuck in the middle of it: Robert Tantular, the former owner of Bank Century (center, with glasses) is surrounded by journalists following his arrival at the House of Representatives in Senayan, Jakarta, on Monday. Robert was summoned by the House inquiry team to explain the financial state of the bank before the bailout funds were issued. JP/Wendra Ajistyatama
The legislature’s committee investigating the controversial Bank Century bailout failed Monday to establish any special link between its former owner and the central bank.
Robert Tantular, a previous joint owner of Bank Century, instead claimed Monday that he was the victim of banking policies implemented by high-ranking Bank Indonesia (BI) officials.
Robert, serving a four-year term for embezzling Bank Century customers’ deposits, blamed the initiative to propose a short-term loan facility on the BI.
“The initiative came from the [BI] board of directors,” answered Robert to a question from committee member Misbakhun from the Prosperous Justice Party (PKS).
After suggestions from the committee that the convicted former owner was close to BI authorities, Robert denied he was close to BI top officials or the finance minister.
“Of course, I know her as a minister. Nothing more,” said Robert, adding that he knew several BI officers in his capacity as a banker.
Lawmakers are seeking to prove Robert’s close ties with the authorities who made the bailout decision, given earlier revelations of “permissiveness” towards Century on the part of BI.
The committee hopes to learn more from the person many consider most responsible for the bailout, Finance Minister Sri Mulyani Indrawati, who will appear before the committee for the first time Wednesday.
Also scheduled that day is Jusuf Kalla, the former vice president who was in charge of the country at the time of the bailout, while President Susilo Bambang Yudhoyono was in London in November 2008.
Robert told the House of Representatives’ inquiry committee that he was not involved in the merger of Bank CIC, Bank Pikko, and Bank Danpac into Bank Century.
He also said he was forced to sign a letter of commitment on Oct. 15, 2008 by Bank Indonesia former director Zaenal Abidin to ensure that Bank Century would pay its debts to customers by March 31, 2009.
The total bailout amounted to Rp 6.76 trillion (US$ 716 million).
Robert said there had been lobbying for a short-term BI loan since October 2008. The main
rationale given was that the bank had low liquidity, made worse as it faced an $18 million currency market loss.
A month later, the Financial Sector Stability Committee (KSSK), chaired by the finance minister with members including then Bank Indonesia governor Boediono, met to declare Century a failed bank and to arrange to take it over — the first such move since the 1997-1998 crisis.
The decision was based on fears a bank collapse could pose a systemic threat to the country’s banking sector. The Deposit Insurance Agency then took over the bank.
Robert said that he asked for a favor from a big-time depositor, businessman Budi Sampoerna, in an effort to save Bank Century from bankruptcy.
Robert said he obtained a loan from Budi, but failed to show proof.
Robert insisted that on Nov. 13, Bank Century “only” was short of Rp 5 billion in clearance transactions out of a total of Rp 30 billion.
After BI announced the failure of Bank Century, Robert said that depositors rushed to withdraw funds, causing a further liquidity crisis.
He said the rush occurred nationwide, but the House committee found this only happened at the branch office in Bangka Belitung.
The House committee is accusing the government of allowing political interests to become overriding factors in the bailout decision. The President denied his family or political allies had deposits in Century to be used for campaign funds.
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