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Jakarta Post

AGO to target BI officials in Indover mess

  • Dian Kuswandini

    The Jakarta Post

Jakarta   /   Fri, December 26 2008   /  09:39 am

An investigation into a 2001 case at the central bank’s Netherlands-based unit has reached a new point, with the probe now focusing on rooting out Bank Indonesia officials responsible for the channeling of US$1 billion in aid to the unit.
The unit in question is the now-bankrupt Indonesische Overzeese Bank N.V., or Indover.
The Attorney General’s Office has revived the suspended 2001 investigation into the alleged lending scandal following a request from Finance Minister Sri Mulyani Indrawati, as the government seeks a connection to a recent fiasco that resulted in a Dutch court declaring Indover bankrupt.
The AGO alleges Indover’s recent bankruptcy was linked to irregularities in several previous loan agreements. It cited the case of funds distributed from Indonesia to the Netherlands that were disbursed back to Indonesian bad debtors.
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