Legislators propose house inquiry into govt`s handling of BLBI debtors

The document containing the proposal was signed by 55 legislators and presented to House Deputy Speaker Muhaimin Iskandar by among others Suripto of the Prosperous Justice Party (PKS) faction, Abdullah Azawar Anas of the National Awakening Party (PKB) faction, Drajad Wibowo of the National Mandate Party (PAN) faction and Ade Daud Nasution of the Reform Star Party (PBR) faction.

Suripto said the proposal had nothing to do with the House interpellation on the BLBI issue which was still on-going.

"The idea of the proposal came up spontaneously and individually among legislators after they had gained the impression that something was being concealed by the government with regard to the BLBI case," he said.

In the meantime, Drajat Wibowo explained the difference between the House`s right of interpellation and its right of inquiry.

He said in an interpellation the House could only put questions to the president on his policies over a case while in an inquiry legislators had the right to investigate a case, including asking for undisclosed documents.

BLBI refers to emergency liquidity credits extended by BI, the central bank, to commercial banks during the financial crisis which began in mid 1997. The credits were extended under the government`s blanket guarantee program. Of the Rp144.5 trillion of BLBI loans issued since 1997, Rp51.7 trillion had turned bad.

The government had since tried to solve the BLBI problem but has met with still unsurmounted difficulties to fully recover the state assets. Though some of the bad debt cases have been settled, others remained unresolved. The amounts of the recovered as well as the ...