CENTURY BANK SCANDAL: Quick Start Guide in 5 Minutes
CENTURY BANK SCANDAL CASE, Quick Start Guide
By Eko Laksono
Actually I lazy to think of a case of this Century Bank scandal.
I think it is a lot of fuss without any further need one more person. But the fact that many people come and make complicated mikirin minds of many people, I try to simplify it as much as me.
What was the fuss of this Century Bank? Enjoy.
Simple principle:
1. Century Bank is a small bank that was run by the not bener. November 13, 2008, Century Bank collapsed because of losing clearing.
2. The government and BI in a critical moment for fear of widespread problems and encourage Indonesia to the brink of economic crisis decided to bail out Bank Century.
3. Many who do not agree bail-out for Century Bank rate is too small, not significant, and there is the possibility of irregularities.
PROBLEM:
The problem is, and this is what makes all the confusion, there is no definition or clear benchmarks and measurable, mathematically, both in Indonesia and the world, to measure the strategic impact damage to a financial institution in the general economy. When one of the main determining factor is the psychological factor (irrationality) market and society, how to measure it?
Easy right? Now in short detail.
1. The chaos at the beginning of Century Bank.
a. Management weaknesses, evasion of foreign exchange funds, credit granting arbitrary, and placement of investment funds that can not be accounted for.
b. After the chaos began bustling mutual funds issued Antaboga Deltasekuritas Century Bank. Demo frequent customers who were deceived because the appearance of television coverage of Sri Gayatri who always appear attractive.
c. Century Bank funds were also burglarized owner, Robert Tantular.
Dated June 1, 2009, Abdul Hakim Ritonga Jampidum indicate Tantular Robert assets worth Rp 10 trillion in Hong Kong.
(Kwik Kian Gie said, initially Century Bank is a combination of smaller banks are also considered to be problematic as the Bank CIC, Danpac, and the Bank Piko).
2. Earlier, November 2008, the Government, Bank Indonesia, KKSK, and the House for fear of Century Bank case was systemic and shook the Indonesian economy at the beginning of the global crisis, had agreed to bail-out. Bail out approved, Rp 1.3 trillion. (KKSK: Financial System Stability Committee).
Note 1:
1997 economic crisis that started from the crisis small banks and the Bank led the Government needs to raise the total value of BLBI which reached Rp 600 trillion.
3. In order to maintain economic stability, criminal or not, dilapidated dilapidated guns, Century Bank is to be saved at all costs.
4. Bailout government disbursed and BI, Sri Mulyani and Boediono keep rising to reach USD 6.3 trillion. Digelontorkan since November 23, 2008.
Basically because the problem is growing and the government should increase the injection of funds (Perppu No. 4 of 2008 on the Financial System Safety Net). If this is not done, the losses inflicted by the economic crisis will be much more massive.
5. The main reason bank bailouts Century, Government and BI versions:
Bail out should be done because it can spread systemically and shake the national economy, through:
a. disruption of the national payment system,
b. shocks to the stability of financial markets, exchange rate, and declining foreign exchange reserves,
c. spread to other banks -> Rush,
d. massive flight of capital abroad,
e. entered into the real sector,
f. and finally, psychological factors and the market society is not rational, especially when the global crisis, making it able to shake Indonesia’s economy in general.
g. Indonesia can enter the abyss of economic crisis, volume II (see Note 1).
Note 2:
Indonesia and especially Finance Minister Sri Mulyani recognized as one of the main world’s best countries in handling the economic crisis (see also January 2009 Newsweek report, “Indonesia: As Good As it Gets”). In the world, there are only 3 countries that are still growing above 4%, China, India, and Indonesia. Almost all countries, even developed countries like America and Japan, its economy collapsed.
6. To save the Bank Century, BI also changed the rules of capital adequacy requirements (CAR), from 8% to 0%. Change the rules, including allowing big depositors, depositors above USD 2 billion of previously guaranteed, can get his money back.
Reason:
Bank Indonesia is concerned, if this is not done, it is able to trigger a large flight of capital owners massively abroad, such as Singapore and Hong Kong.
7. Counter opinion Bail-out:
a. Century Bank is too small to affect the financial system and the Indonesian economy in general. Century assets just 0.05 percent of total Indonesian banking assets.
b. Century Bank was saved not because of systemic factors, but the conspiracy while BI officials to save the big depositors, such as savings Budi Sampoerna with USD 2 trillion (including opinions ICW).
c. This large depositors of them is a campaign contributor SBY (status: rumors, no evidence, and the book “Cikeas Octopus”).
d. Century Bank’s initial chaos is the weakness of Bank Indonesia in the bank watching naughty. BI must be responsible.
Contra leaders bail out: Kwik Kian Gie, Anwar Nasution (Chairman of CPC), former Vice President Jusuf Kalla, Amien Rais, an economist Imam Sugema, etc..
8. Vice President Jusuf Kalla
Then Vice President, Jusuf Kalla consider the case of Century Bank is a criminal act. Jusuf Kalla was not invited to meetings about Century Bank. He had ordered the National Police so that all Century Bank leaders were arrested. Vice President Jusuf Kalla of Indonesia also assume no significant crisis (excuse me sir, but I certainly do not agree).
9. Commission and the CPC
Commission requested the CPC led by Anwar Nasution, Bank audit Century. KPK and Anwar Nasution believe there are indications of corruption in Bank rescue Century. KPK also one of the main intercepting police officers.
10. Police
There is no person who guessed the Police (crocodile) involved “keep” rogue elements related to Century Bank for being “big fish class project”. Some parties are also linked with the KPK officials seized 2, Seeds and Chandra some time ago without any clear evidence, for blocking the investigation Century case.
11. Many who now have placed Sri Mulyani and Boediono as a suspect. But actually there’s 2 possibilities:
a. Sri Mulyani and Boediono is part of a big conspiracy solely in order to save money the Century and the people associated Century.
b. Sri Mulyani and Boediono who saved the economy so that the current Indonesia Indonesia does not fall even greater crisis. Who committed acts of fraud are just a few people, Robert Tantular, owner of Century Bank of steal Century Bank funds, and some elements in the BI (whether criminal or careless).
12. The two opposite logic that can happen.
a. Century Bank does not need to be saved, because Indonesia is not a crisis.
b. Indonesia had not entered a crisis, precisely because Century saved.
The fact is when it is the beginning of the global crisis in developed countries that could spread to Indonesia, and many rich people in Indonesia are clearly nervous about security money in Indonesia.
13. The real reason Questionnaire Century Bank by the Parliament could no 3:
a. House wants to fight for the people .. hmmm …
b. The parties in the House of Representatives wants to play politics, whether it is to overthrow the government, seized victory in the next election, or to simply increase the political bargaining power.
c. Forget there are many other things more critical, such as unemployment rates and increasing national competitiveness diminishing Indonesia.
Now that think about this one?
