So far this year, the Indonesian Bank Restructuring Agency (IBRA) has restructured the debts of a number of major obligors under the Asset Management Credit (AMC) division. This is a praiseworthy quantitative achievement. Any bad debt issue left pending can hamper economic recovery. Still, some circles question the quality of this debt restructuring.

Several cases are cited as examples, including the restructuring of US$2.7 billion in debts of