Robert Go, Tabanan (Bali) – Some of Indonesia's top businessmen are thumbing their noses at the nation's latest bid to collect outstanding debts worth more than US$13 billion, leaving officials frustrated over their blatant attempt to use the legal system to their advantage.
The government's game plan, top officials said, was to use an investment forum held in Bali earlier this week to convince debtors to settle their debts – after numerous collection efforts by Jakarta since 1999 had not made significant headway.
Indonesian Bank Restructuring Agency (Ibra) chief Syafruddin Temenggung was to have pressed his case and threatened legal action against those who remained uncooperative.
But now he and other senior representatives are mulling over their plans – for the debtors have put them in legal dilemmas.
Take Salim group's Anthony Salim, said to be perhaps the most outwardly cooperative of all big debtors. He showed up personally for the meeting but argued that he had transferred more than 100 assets to cover debts worth around US$5.3 billion.
The government, however, pointed out that it had recovered less than US$2 billion after selling 80 per cent of those assets and asked him to compensate for at least a fraction of the difference. Mr Salim, however, maintained his stance that he did not owe Ibra any money.
According to Ibra's communication division chief Raymond van Beekum, government lawyers are now going through legal documents with a fine toothcomb to see how Jakarta can claim more money from them.
A similar position was taken by representatives of businessman Samadikun Hartono, who once controlled defunct Bank Modern. Ibra officials say he needs to settle around two trillion rupiah (S$400 million).
Officials could not make too much of a headway in the case of Mohammad 'Bob' Hasan – former owner of defunct Bunk Umum Nasional – either, who owes 5.5 trillion rupiah.
At the meeting, his representatives offered 31 assets to Ibra but the biggest pulp and paper company, Kiani Kertas, is mired in its own legal struggles with creditors, including foreign lenders.
The results, said one top adviser to Mr Syafruddin, showed all too clearly how the legal system, instead of serving as a tool that Jakarta could wield to force debtors to cough up cash, was actually making collection difficult.
Ibra did have some limited success though – as in the case of tycoon Ibrahim Risjad who agreed to repay part of his 636 billion rupiah obligations – but officials said 'bigger fish' were no closer to any kind of settlement.
All this is happening even though Mr Syafruddin has promised that Ibra would initiate tough legal action against debtors who still refuse to pay by certain deadlines.
The next such target date is November 15 but even the agency's officials are not sure of the possible repercussions that face bad debtors.
"This is the reality that we are dealing with. Even bringing them to court is no guarantee of results," said the Ibra adviser.