GUARANTY FOR COMMERCIAL BANK REPAYMENT OBLIGATION (Presidential Decree No. 26 of 1998, dated January 26, 1998)
THE PRESIDENT OF THE REPUBLIC OF INDONESIA Considering :
a. that at present the national economy is undergoing a very serious monetary crisis;
b. hat the monetary crisis is reflected in the decline of public confidence, both domestic and overseas, in the towards rupiah currency and national banks; c. that it is therefore deemed necessary to restore public confidence in the
national currency and banks as soon as possible;
d. that in relation therote, it is deemed necessary to provide guaranty by the indonesia government for the obligation of repayment by commercial banks established under the law of Indonesia;
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 the Banking System (Statute Bok 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 goverment 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 bank 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 of 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 Minister of Finance shall report from time to time the development of the implementation of this Presidential Decree to the Chairman of the Economic and Monetary Resilience Council.
Article 5
Article 6
This Presidential Decree comes into effect as from the date of stipulation.
For public cognizance, this Presidential Decree shall be promulgated 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
