Indonesia Continues BLBI Debt Collection Amid Task Force Dissolution

Ministry Takes Over Debt Collection Process

Finance Minister Purbaya Yudhi Sadewa has confirmed that Indonesia will maintain its efforts to collect debts from the Bank Indonesia Liquidity Assistance (BLBI) program, despite the planned dissolution of the special task force established to handle these claims. The Ministry of Finance will assume direct responsibility for pursuing outstanding debts from obligors who received BLBI funds during the 1998 financial crisis.

Key Points from Minister's Statement

• The debt collection process will continue without interruption
• The Ministry of Finance will directly manage the recovery efforts
• Obligors remain fully liable for their outstanding debts
• The decision to dissolve the task force is still under consideration

Background on BLBI Debt

The BLBI program was established during the 1998 Asian financial crisis to provide emergency liquidity to banks. The program resulted in significant claims against various debtors, with many cases becoming complex legal and financial matters. As of now, there are outstanding claims exceeding Rp100 trillion that remain unresolved.

Implications of Task Force Dissolution

While the task force is being considered for dissolution, the Ministry of Finance has assured that this will not affect the government's commitment to recovering these significant state funds. The ministry's direct involvement is seen as a strategic move to maintain continuity in the debt recovery process and ensure that the state's financial interests are protected.

Next Steps

The Ministry of Finance is preparing to implement an enhanced debt collection strategy that will include more aggressive pursuit of outstanding claims. This approach is expected to involve various legal and financial measures to maximize recovery rates while dealing with complex cases that have been ongoing for decades.