Charges for VP, OJK chief loom

Rendi A. Witular and Haeril Halim, The Jakarta Post, Jakarta | Headlines | Wed, March 05 2014, 8:16 AM

The Corruption Eradication Commission (KPK) has concluded that malfeasance allegedly committed by former Bank Indonesia (BI) deputy governor Budi Mulya in the decision to bail out ailing Bank Century in 2008 also seemingly involved the then BI board of governors.

A KPK document on Budi’s indictment, a copy of which was recently obtained by The Jakarta Post, reveals that Budi and his “colleagues” allegedly misused their authority and caused state losses.

According to the indictment, slated to be read out at Budi’s first court hearing on Thursday, the alleged crime was committed “collectively” by then BI governor Boediono, now the vice president, BI senior deputy governor Miranda Goeltom and BI deputy governors Siti C. Fadjrijah, Budi Rochadi, Muliaman Hadad, Hartadi Sarwono and Ardhayadi Mitroatmodjo.

Muliaman is currently the chairman of the powerful Financial Service Authority (OJK). Miranda, Hartadi and Ardhayadi retired from their posts several years ago, while Budi Rochadi died on duty while visiting New York in July 2011. Siti had a stroke and is incapacitated.

“That is not the case. We should just hear [court proceedings],” said Muliaman on Tuesday when asked for his comment by the Post.

Other alleged accomplices in the case, according to the document, included former Bank Century shareholder Robert Tantular and president director Hermanus Muslim, and economist Raden Pardede, who was the then secretary of the Financial System Stability Committee (KSSK).

Apart from Budi Mulya, none have been declared suspects by the KPK. However, the agency usually defers prosecuting others until the court hands down a verdict on the first suspect.

KPK spokesman Johan Budi refused to comment on the matter.

However, he confirmed that the KPK had slapped “collective” charges on Budi and others, such as Siti Fadjrijah. “Until now, Budi is the only suspect. Siti will also be prosecuted, but her health has prevented us from questioning her,” Johan told the Post.

The KPK, according to the document, has charged Budi and “colleagues” with abusing their authority in channeling short-term financial assistance (FPJP) to keep Bank Century, now Bank Mutiara, afloat.

They are also charged with abuse of authority in categorizing Bank Century as a potentially failed bank that posed a systemic threat to the banking sector.

The indictment also alleges that Budi accepted Rp 1 billion (US$87,000) from Robert Tantular in August 2008, around four months before the bailout decision.

Budi’s prosecution and court hearing, less than 35 days prior to the legislative election, is the first in the attempt to uncover allegations that President Susilo Bambang Yudhoyono’s inner-circle profited from the bank’s bailout.

Politicians have accused the administration of misusing the bailout, worth a whopping Rp 6.7 trillion ($582 million), to finance Yudhoyono’s 2009 re-election bid.

The issue has since created a firestorm of political controversy, dogging the Yudhoyono administration with threats of impeachment by members of his ruling coalition.

In response to the document on the indictment, Budi’s lawyer, Luhut Pangaribuan, denied that there would be a stipulation on a “collective decision”.

“Pak Budi is not in a position to talk about it. He will explain to the court the decision behind the FPJP channeling and in determining the bank worthy to be categorized as a failed bank with a systemic risk.”

Under Law No. 3/2004 on the central bank, decisions made by the board of governors are made collectively, meaning that all members are required to bear the same responsibility for any decision made.

A case against Boediono and others for the alleged “collective” crime is not without precedent.

In 2009, the Supreme Court found former BI governor Burhanuddin Abdullah guilty and sentenced him to three years in prison for the misuse of Rp 100 billion in BI funds in 2004.

Burhanuddin had not been proven to have personally benefited from the misappropriation but was found guilty because he, along with the BI deputy governors, had approved the illegal fund disbursement.

Gadjah Mada University’s Corruption Study Center (PUKAT) director Zainal Arifin Mochtar said the decision by the KPK to charge Budi with “collective” crimes would paved the way to charge other individuals.

“There’s already a construction that this case will involve many more. Budi is just the entry point.”

Interest at play in the bailout decision (based on indictment document)

1. BI foundation YKK had Rp 83 billion deposited in Bank Century. If the bank collapsed, YKK would have lost all its money as the government’s guarantee program only covered deposits of less than Rp 2 billion.

2. Interests of the board of governors in YKK was evident as they received mortgages under the Baperum Multi Guna scheme.

3. The need to rescue Rp 2 trillion deposited by businessman Boedi Sampoerna.

Tassia Sipahutar and Hans David Tampubolon also contribute to the story


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