The Supreme Audit Agency (BPK) revealed its audit result for Bank Century at the House of Representatives on Monday, stating that errors had been made by Indonesia's central bank in the handling of the failing financial institution.

The audit result was delivered by BPK chairman Hadi Poernomo. According to the report, Bank Indonesia's first mistake in regards to the case was conducting a weak audit in the acquisition and merger deal involving Bank Danpac, Bank Pikko and Bank CIC, which came together to create Bank Century in 2004. The audit report alleged that the central bank had inconsistantly applied rules during the merger process.

The audit also alleged that the central bank was inconsistent in policing violations committed by Bank Century during 2005 to 2008. The Capital Adequacy Ratio (CAR) requirements in Bank Indonesia regulations were allegedly changed so that Century could access the short term funding facility (FPJB).

Following international standards, BI requires banks to have a minimum 8 percent capital adequacy ratio, which determines a bank's ability to endure risk. CAR is defined as the amount of money a bank has in the form of stockholders' capital, shown as a percentage of its assets.

BI issued the funding even though Century's CAR was negative 3.53 percent and Century could only promise 83 percent of collateral to the funding facility.

Hadi Purnomo said BI did not give complete and updated information when identifying Century as a failing bank. The incomplete information was related to Bank Century's statement of loss on foreign exchange, which decreased the bank's CAR and increased the maintenance cost from Rp 634 billion to Rp 6.7 trillion.

BI and the Financial System Stability Committee (KSSK) did not have measured criteria to establish the systemic results of Bank Century's problems and they only used judgement instead, he said.

Maruarar Sirait, a lawmaker from Indonesian Democratic Party of Struggle (PDI-P), said he was disappointed in the BPK's audit result. Maruarar said the audit was not perfect because it did not mention data from the Financial Transaction and Analysis Center (PPATK) as to where the bailout money went.