Indonesian clash over bank bailout
(4 March 2010 – Indonesia) Indonesian citizens gathered outside parliament this week to protest the massive bailout received by Bank Century at the end of 2008, as lawmakers met to discuss whether ‘serious violations’ in bailout procedure were made by top parliamentary members.
The bailout of Bank Century was authorised in November 2008 by the country's top reformers, Vice President Boediono and Finance Minister Sri Mulyani Indrawati, however controversy erupted when the bailout ended up being 10 times larger than initially approved.
Lawmakers ordered an inquiry into the bailout after Indonesia's top auditor, Hadi Poernomo, presented a report in November 2009 that found strong indications of ‘violations’ in bailout procedure and recommended a full investigation.
Mr Poernomo also found no evidence that the collapse of Bank Century threatened the economy.
The hearing will continue on Wednesday and if no consensus is reached lawmakers will vote whether to support the bailout or to start criminal investigations against two of the most respected members of President Susilo Bambang Yudhoyono's cabinet.
The pair has said their decision was necessary to save the bank at the height of the global economic crisis.
The heated citizens protesting the bailout clashed with police resulting in the authorities firing tear gas and water cannons.
One protester, said that Indonesian citizens demand that the Bank Century scandal be ended; the scandal has destroyed this country and caused 6.7 trillion rupiah (A$800 million) to vanish.
Lawmakers ordered an inquiry into the bailout after Indonesia's top auditor, Hadi Poernomo, presented a report in November 2009 that found strong indications of ‘violations’ in bailout procedure and recommended a full investigation.
Mr Poernomo also found no evidence that the collapse of Bank Century threatened the economy.
The hearing will continue on Wednesday and if no consensus is reached lawmakers will vote whether to support the bailout or to start criminal investigations against two of the most respected members of President Susilo Bambang Yudhoyono's cabinet.
The pair has said their decision was necessary to save the bank at the height of the global economic crisis.
The heated citizens protesting the bailout clashed with police resulting in the authorities firing tear gas and water cannons.
One protester, said that Indonesian citizens demand that the Bank Century scandal be ended; the scandal has destroyed this country and caused 6.7 trillion rupiah (A$800 million) to vanish.
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