A Democrat Party representative said here on Friday the Bank Century problem was not a bail-out case.


Achsanul Qosasi made the statement when explaining the party's reasons for not joining in the call for the exercise of the House of Representatives's (DPR) right of inquiry on the case in a press conference at the DPR building.

He said the funds that were put into former Bank Century were temporary participating capital (PMS) from the Deposit Insurance Agency (LPS). The LPS funds are collected from premium paid by LPS bank members.

"So PMS is not bail-out funds and they do not come from the national budget," he said.

Achsanul, who is also the chairman of House Commission XI that deals with banking, financial and national development planning affairs, said that in line with PMS procedures Bank Century would be temporarily managed for three years by the LPS and after three years it would be sold to the public.

He said if no party would not as yet want to buy it the LPS would continue managing it for another two years.

"Until now Bank Century has been sound and no loss had been inflicted on the state because the funds did not come from the national budget," he said.

Achsanul also said that LPS was also an independent institution so that it needed no permit from the DPR if it wanted to disburse its funds.

He admitted that Robert Tantular (one of the former Bank Century's owners) had committed a crime by deceiving customers through Antaboga Securities.

Regarding the polemics on alleged involvement of the party and the President in the case, Achsanul said that the party and the President were not involved in it.

"The media and the people must be able to think clearly in the case. The government right now needs support from the public to make its first 100 days in office program successful," he said.