Government Rejects BTN Acquisition Plan
24 April 2014 13:22 WIB
TEMPO.CO, Jakarta - Bank Tabungan Negara (BTN) acquisition by Bank Mandiri has been canceled as the plan was rejected by the government as it could potentially prompt concern among public and BTN employees, said the Secretary to the Second United Indonesia Cabinet, Dipo Alam, yesterday.
"The acquisition is postponed until the plan is comprehensively clarified," Dipo said.
The acquisition is likely to become a burden for the next government due to its lengthy process, Dipo added. It is considered to contravene President Bambang Susilo Yudhoyono’s instruction, given to ministers and state officials, saying that they should not make a policy that would trigger public concerns.
Based on the president’s instruction, Dipo has sent letters to a number of ministers and president directors of BTN and Bank Mandiri, requiring the acquisition to be postponed.
According to Dipo, the acquisition plan also contravenes the Government Regulation number 41/2003 regarding Finance Minister’s task and authority delegation to nonprofit state companies at the State-owned Enterprises Minstry.
"The acquisition plan should be preceded with the required procedure compliance," Dipo added.
The required procedure is also set forth in the Government Regulation Number 28/1999 regarding the consolidation and acquisition of Banks.
ALI HIDAYAT