Jakarta – A fire badly damaged the Audit and Development Supervisory Agency (BPKP) building in Central Jakarta yesterday, destroying documents on the huge liquidity loans given by the central bank to ailing banks.

There were no reports of injuries in the blaze that started on the third floor of the building, where important records of debts owed by private and state banks were kept. Although several fire engines were deployed to the blaze on Jalan Hayam Wuruk, they were unable to save most of the third floor records.

Also severely damaged was the office of BPKP Chairman Arie Sulendro, and an office where investigations into bad loans were conducted. Police were late yesterday still investigating the cause of the fire, which started at about 2.15pm and was extinguished four hours later.

BPKP Administration Chief Chatim Baidaie said arson was the most likely cause of the blaze. I suspect sabotage because the third floor was full of documents and it housed the office of a special deputy who deals with bad loans, Baidaie said. He said the arsonist aimed to disrupt investigations into insolvent banks that have failed to repay liquidity assistance loans from Bank Indonesia, the central bank.

BPKP is involved in inquiries being conducted by the National Audit Agency (BPK). Auditors have been investigating the loss of billions of dollars that were lent to prop up troubled banks in the dying months of the reign of former president Soeharto, who quit power in May 1998. Economists and other critics claim much of the money was misused by the banks owners to save the rest of their struggling business empires.