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Yudhoyono stands by VP and Mulyani on bailout
President Susilo Bambang Yudhoyono on Thursday defended the decision to bail out Bank Century, calling it a measure that would “save the country’s banking system and the country’s economy”
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resident Susilo Bambang Yudhoyono on Thursday defended the decision to bail out Bank Century, calling it a measure that would “save the country’s banking system and the country’s economy”.
“It would be inappropriate to take legal action against [government] policies,” he said.
Defying a ruling by the House of Representatives that the government should take legal measures against those responsible for the bailout, including Vice President Boediono and Finance Minister Sri
Mulyani Indrawati, Yudhoyono praised the two as the “country’s finest people”, saying both have “clean track records in terms of competence, credibility and integrity”.
“We should show our utmost appreciation to those who, in times of crisis, have shown outstanding service to save our national economy,” Yudhoyono said, adding he would go after corrupt officials who used the political fallout to avoid legal measures.
The president’s televised speech — issued less than 24 hours after the House voted on its stance in the bailout — at the Merdeka Palace was attended by Cabinet ministers and First Lady Ani Yudhoyono.
The President reminded the nation of the global economic crisis at the end of 2008, when the Century case first emerged.
“The decision to save Bank Century was the right one. We had two options: to shut down or to save the bank... The government decided to save it,” he said.
“It doesn’t mean the policy is wrong and the [policy makers] are free of criticism,” he added.
He emphasized that the decision was made with the proper intention after a cautious consideration of all available options.
However, Yudhoyono stressed that he “was on an official visit abroad to attend the G20 and APEC Summit” when the decision was made.
“I was not consulted or asked for advice [on the decision] and I did not give any instructions.
“But I can understand [the decision] and I confirmed the policy to save the bank,” Yudhoyono said.
The President acknowledged that he was angry and upset with the owner and management of Bank Century.
“I felt deceived. Why should we save a bank that was not only run carelessly, but had also been managed by bad people who intended to flee away with the customers’ money,” he said.
Yudhoyono praised law enforcement moves to arrest, try and sentence Bank Century owner Robert Tantular.
“We have also frozen their assets abroad, which is estimated at trillions of rupiah,” he said.
Yudhoyono did not mention the role of then vice president Jusuf Kalla, who, on Aug. 31, 2009, said he had ordered the National Police chief to arrest Robert. Robert is currently serving a three-year prison sentence.
The President compared the government’s move to deal with the 1998 financial crisis through the Bank Indonesia Liquidity Assistance (BLBI) that cost Rp 656 trillion (US$ 70.54 billion) with the Century bailout that cost Rp 6.76 trillion.
“The bailout was an immediate and strategic response to the crisis and followed the issuance of the government regulation in lieu of law on banking and economy,”
he said.
Yudhoyono welcomed the inquiry’s finding that no funds went to his party or to his re-election campaign coffers.
He also praised the House for rejecting any impeachment proposals.
Yudhoyono also called on parties in the ruling coalition to prioritize the people as the coalition was formed with “good intentions”.
“There is nothing more important now than going back to work for the sake of the people.”
