Tribun news
23 July 2018

Liabilities Rp 4.8 Trillion From Exchange Rate Increases, Not Received by Nursalim, Farmers & Dipasena

The total liability of Rp 4.8 trillion charged by the KPK Prosecutor to the obligor Sjamsul Nursalim turned out to be the effect of the rupiah exchange rate fluctuation against the US dollar at the time.

The debt position of the farmers was Rp 1.5 trillion. The rest was the result of the rise in the rupiah exchange rate against the US dollar from Rp 2,300 to Rp 11,000.
"Even then due to the floating exchange rate policy, the US dollar broke through to Rp17,000. So there was no difference between Rp 1.5 trillion and Rp 4.8 trillion received by both Mr. (Sjamsul) Nursalim, the farmers and the (company) core (PT Dipasena Citra Darmaja / DCD), " said PT DCD President Director Mulyati Gozali when she was a witness in a trial at the Corruption Court at the Central Jakarta District Court, Monday (23/7).

Mulyati explained, that at that time, the Dipasena shrimp pond company was an asset of Bank Dagang Negara Indonesia (BDNI), which was in the smooth category. She showed evidence of the company's condition when it was about to float on the stock exchange (IPO) in 1997.

"The value of exports in 1996 was US$ 167 million. The export was exports of tiger shrimp," she said.

She also explained about the pattern of cooperation in the core pond model. So, she said, farmers got credit from BDNI through a core company. "The farmers got 7,000 m2 of pond land, facilities and infrastructure, windmills, plastics, houses. The maximum credit was Rp135 million per farmer given in rupiah and based on US dollar exchange rates, " she said.

Therefore, of the total number of farmers of approximately 11,000, the total debt was Rp 1.5 trillion at an exchange rate of Rp 2,300 per USD. "This rose to Rp 4.8 trillion due to exchange difference. Even though there was no more loans taken out by farmers, " she said.

She asserted that the Rp 4.8 trillion obligation was not an obligation of Sjamsul Nursalim, but guaranteed by the Core Company (Dipasena), as regulated in article 5.13 of the MSAA BDNI agreement.

Meanwhile, Rudy Suparman, former Director of Danareksa, who was also presented as a witness, said, when it conducted an assessment of BDNI, it stated that the assets of Dipasena shrimp farm including valuable assets were smooth. He said, the bank assets that could still be recovered, it means they were still smooth.
He explained that the liabilities of plasma farmers of Rp 4.8 trillion were BDNI assets used to reduce BDNIís obligations.

"That's part of the balance sheet. We take the obligations (BDNI) of IDR 47 trillion, minus assets worth IDR 18 trillion including net assets. So net liability were Rp 28 trillion. The IDR 18 trillion worth of assets included the assets of shrimp farmers debts," he said.

Debt Obligations
As a note, the position of the net liabilities is in accordance with what was stated in the BPK Audit in 2002, concerning the position of liabilities as of June 30, 1998.
Regarding the debt of Dipasena fishermen, at the hearing on Thursday, July 19, 2018, the former Finance Minister who was also a member of the Financial Sector Policy Committee (KKSK) at the time, Boediono stated, "In essence the farmers had debt settlement obligations, but then there was a proposal of IBRA for this to be lightened. I forgot what the figures were, but the goal is to help the farmers. Because I remember and convey, if this was according to all the rules of course this is something good. "

Finally, the debt of the farmers was adjusted from initially Rp 135 million/person to Rp100 million/person for 11 thousand farmers, bringing the total debt Rp 1.1 trillion. The KKSK meeting then decided that there was no misrepresentation of the obligations of Sjamsul Nursalim and the farmers.

Meanwhile, former IBRA Chairman Syafruddin Arsyad Tumenggung confirmed that there was a write off of farmers' debts so that the amount would be Rp1.1 trillion. "But he did not remove the debt because of the core guarantee, as Dipasena still existed. Whatever the rest would be paid by the core company. This Dipasena core was taken and controlled by IBRA so the restructuring and revitalization was easy. This is submitted to the Minister of Finance and PPA, " he said.

Therefore, on February 27, 2004, the farmer's debt was Rp 4.8 trillion and the core company Dipasena was valued at Rp 19.9 trillion, which was submitted to the Minister of Finance. Boediono, in his testimony, confirmed that on 27 February 2004 and 30 April 2004 he received a report on assets submitted by IBRA to the Minister of Finance. (*)