(Presidential Decree No. 27/1998, dated January 26, 1998) THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering :
that in order to implement the government guarantee for the obligation of repayment by banks as meant in Presidential Decree No.26/1998 and within the framework of banking control, development and restructuring, it is deemed necessary to set up a national bank restructuring agency by issuing a presidential decree to this effect.
in view of :
1. Law No. 13/1968 on the central bank (Statute Book of 1968 No.63, Supplement to Statute Book No.2865);
2. Law No.7/1992 on the banking system (Statute Book of 1992 No.31, Supplement to Statute Book No.3472);
3. Presidential Decree No. 17/1998 on the Economic and Monetary Resilience Council;
4. Presidential Decree No.26/1998 on guaranty for commercial bank repayment obligation.
DECIDES: To stipulate:
THE PRESIDENTIAL DECREE ON THE ESTABLISHMENT OF THE INDONESIAN BANK RESTRUCTURING AGENCY
Article 1
Article 2 IBRA shall have the following tasks:
a. to handle the administration of guaranty granted by the government to commercial banks as meant in Presidential Decree No.26/1998;
b. to conduct control, development, solvency improvement and restructuring of banks which are declared unsound by Bank Indonesia;
c. to undertake other legal actions required within the framework of improving the solvency of unsound banks as meant in point b.
Article 3
IBRA shall be headed by a chairman, who is appointed to and relieved of his post by the President.
Article 4
The other personnel of leadership of IBRA shall be determined by the Minister of Finance after receiving opinion from the Governor of Bank Indonesia.
Article 5
All expenses required for the execution of the tasks of IBRA shall be borne by separated state treasury funds and other legitimate sources.
Article 6
When the tasks of IBRA as meant in this presidential decree have been accomplished, IBRA shall be dissolved and all its assets shall belong to the State.
Stipulated in Jakarta On January 26,1998
THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Sgd
SOEHARTO
In view of:
1. Article 4, clause (1), of the 1945 Constitution;
2. Law No. 13/1968 on the Central Bank (Statute Book No. 63 of 1968; Supplement to Statute Book No. 2865);
3. Law No. 7 of 1992 on the Banking System (Statute Book No. 31 of 1992; Supplement to Statute Book No. 3472);
4. Presidential Decree No. 17/1998 on Economic and Monetary Resilience Council.
DECIDES:
To stipulate :
Article 1
The government shall guarantee that the obligation for repayment by commercial depositors banks to their debtors and creditors will be met.
Article 2
(1) Commercial Banks indicated in Article 1 are the commercial banks established under the laws of Indonesia.
(2) The payment obligation guaranteed by the government shall cover that in the rupiah currency and foreign currencies.
(3) The guaranty for liabilities in foreign currencies is granted in the rupiah currency on the basis of market exchange rates on the date of payment.
Article 3
The conditions. procedure and other provisions required for the implementation of the guaranty granting as meant in this Presidential Decree shall be stipulated by the Minister of Finance after receiving opinion from the Governor of Bank Indonesia.
Article 4
The granting of guaranty as meant in Articles 1 and 2 shall be carried out by a body stipulated by a separate Presidential Decree.
Article 6
This Presidential Decree comes into effect as from the date of stipulation.
For public cognizance, this Presidential Decree shall bepromulgated by publishing it in the Statute Book of the Republic of Indonesia.
Stipulated in Jakarta on January 26, 1998
THE PRESIDENT OF THE REPUBLIC OF INDONESIA Sgd
SOEHARTO
Promulgated in Jakarta on January 26, 1998
THE MINISTER/STATE SECRETARY Sgd
