A Case for Special Treatment

IBRA has at long last exchanged the Sinar Mas Group's debts at BII with recapitalized bonds. This asset swap, however, does seem to have a lot of anomalies connected to it and many DPR members are not at all happy with the system.

February 6, 2001

SO, HOW'S everything with Eka Tjipta Widjaja and his family? In the midst of being surrounded by debts on all sides, the Indonesian Bank Restructuring Agency (IBRA) has given this businessman a clean bill of health. It is as if IBRA views its main function as saving businessmen rather than restructuring the banking sector.

On behalf of Bank Internasional Indonesia (BII), IBRA has agreed to swap Sinar Mas Group debts totaling US$1.4 billion (Rp13.

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