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our article '€œKPK targets more tycoons in BLBI scandal'€ on page 4 of the Dec. 24 edition of The Jakarta Post suggests that Mr. Sjamsul Nursalim has not repaid the liquidity support and had colluded with public officials. These allegations have no basis.

Together with many other Indonesian banks that were affected by massive runs caused by events beyond their control during the Asian financial crisis, the highly reputable bank BDNI received emergency liquidity support.

The support and use of the funds were properly documented and checked and approved by public officials.

Mr. Nursalim personally repaid the government of Indonesia. He transferred his major personal assets under a master settlement agreement.

The entire settlement process was conducted pursuant to a presidential decree. Everything was transparent and fully audited. Many parties and firms of international renown were involved in ensuring that settlement was legal and proper.

Mr. Nursalim received a legally binding release and discharge letter from the minister of finance in 1999 in respect of any matter relating to the liquidity support after the master settlement agreement with the government was signed. The master agreement process was undertaken with the acknowledgement of the World Bank and International Monetary Fund. Furthermore, separate due diligence was conducted by Ernst & Young and the Supreme Audit Agency (BPK) to verify that repayment had been fully made.

The Indonesian Bank Restructuring Agency (IBRA) made a public notarized legal statement stating that all of Mr. Nursalim'€™s obligations had been fully and properly settled.

In the circumstances, it is surprising that these properly and independently verified acts are now being queried, more than 10 years after the settlement.

M. Taufiq
Corporate Communication Department
Gajah Tunggal Group
Jakarta