THERE were charges that the Indonesian banking system worsened the monetary crisis in mid-July 1997. Since the October Packet (Pakto) was launched on October 27, 1988, banking in Indonesia grew to surprising heights. In less than 10 years after Pakto was launched, the number of banks quadrupled, from 60 in 1988. Interestingly, at least one bank was linked to the tycoons.

Later on, it was discovered that the banks were hollow. Short-term funds we