Press release
17 June 2019

BLBI SETTLEMENT, Otto Hasibuan: Release and Discharge is the Government’s Legal Certainty Guarantee

JAKARTA – The Release and Discharge given to shareholders of BLBI recipient banks is a guarantee from the government for legal certainty.
Legal practitioner Otto Hasibuan highlighted that the case of the issuance of the Certificate of Settlement (BLBI) which ensnared the former Head of the Indonesian Banking Restructuring Agency (IBRA) Syafruddin Arsyad Temenggung was very different and could not be linked to Sjamsul Nursalim (SN).

According to Otto, SN has been bound by the government's promise in the Release and Discharge (R & D) Letter signed by the government represented by the Minister of Finance and Glenn Yusuf, the Chair of the Indonesian Bank Restructuring Agency (IBRA) on May 25, 1999.

Meanwhile, the case against Temenggung, according to Otto, was related to the elimination of farmer's debt and the Certificate of Settlement (SKL) which had no effect at all on SN, because he had received the R & D from the government in 1999.

The government, said Otto, freed and released SN from any further obligations on the settlement of BLBI payments.

The government, he said, also acknowledged and agreed that it will not initiate or carry out any lawsuits or exercise any legal rights, if any, against SN for all matters relating to BLBI.

"All BLBI settlements for the Indonesian National Trade Bank have been fulfilled by the SN based on MSAA in 1999. The way is through cash payments and the surrender of assets in the form of company shares to the Government through IBRA, so that what follows is completely unrelated and no longer SN’s affair," Otto said on Saturday (6/15/2019).

BDNI, he said, had been taken over by IBRA from April 4, 1998. Receivables from farmers were assets inherent to BDNI. Since the bank was taken over, SN was considered not to have any power or control over BDNI or its assets. BDNI, said Otto, was entirely in the control and management of IBRA.

"Therefore, if it is subsequently abolished or sold (the debt), is no longer possible for the government to link it to SN," said the Gajah Mada University alumni.
Otto further stated that the terms and conditions of the MSAA were fully prepared by IBRA and its consultants including all calculations of BDNI assets and the liabilities when the bank suspended its operations on August 21, 1998.

"SN only accepted all the conditions stipulated in the MSAA. So connecting the Temenggung case to SN is very unreasonable and irrelevant," he concluded.
As is known, the KPK has determined Sjamsul Nursalim and his wife, Itjih as suspects in the case of the issuance of the SKL BLBI. Previously, the anti-corruption commission had investigated Syafruddin Temenggung who was finally sentenced to 15 years in prison.