Jakarta, Indonesia Sentinel — Economic and political analyst Sasmito Hadinagoro has raised serious allegations about the acquisition of Bank Central Asia (BCA) by Djarum Group, owned by Budi Hartono, Indonesia’s wealthiest man. The transaction, which occurred during President Megawati Sukarnoputri’s administration, has been criticized for its suspiciously low valuation, described as “nearly free.”
A Controversial Transaction
BCA, previously owned by the Salim Group, was taken over by the Indonesian government following the Bank Indonesia Liquidity Assistance (BLBI) scandal in the aftermath of Suharto’s resignation. The government aimed to recover state funds by selling BCA shares, but efforts had stalled by 1999.
In 2002, the government decided to sell 51% of BCA’s shares to the public. However, Sasmito alleges that the sale was manipulated, with Farallon Capital, a Singapore-based firm linked to Budi Hartono, acquiring the shares at a fraction of their actual value.
Questionable Valuation of BCA Acquisition
According to Sasmito, BCA was worth over IDR 200 trillion ($13 billion) at the time, given its assets, including restructured bonds valued at IDR 60 trillion and accrued interest of IDR 42 trillion. However, Farallon reportedly paid just IDR 5 trillion ($333 million) for the majority stake.
“This transaction defies logic. It’s as if the bank was given away for free. No wonder Budi Hartono is now Indonesia’s richest person,” Sasmito said to Inilah Monday, 30 December 2024. Today, BCA’s assets exceed IDR 1,400 trillion ($93 billion).
Calls for Accountability
Sasmito has accused key economic officials from Megawati’s administration—former Finance Minister Boediono, State-Owned Enterprises Minister Laksamana Sukardi, and Coordinating Minister for Economic Affairs Dorodjatun Kuntjoro-Jakti—of enabling the undervalued sale and causing significant state losses.
“All these officials must be held accountable. They played a part in this massive financial loss for the nation,” he stated.
Sasmito claims to have reported the case to Indonesia’s Corruption Eradication Commission (KPK) and other law enforcement agencies multiple times, but to no avail.
“I’ve submitted data to the KPK 12 times, but nothing has been done. It’s as if the reports have been discarded,” he lamented.
Lingering BLBI Obligations
Adding to the controversy, the Supreme Audit Agency (BPK) reported in 2024 that BCA still owes IDR 26.5 trillion ($1.76 billion) related to BLBI obligations.
Sasmito argues that addressing this issue could recover significant public funds. He is urging President Prabowo Subianto to take decisive action, emphasizing the president’s commitment to eradicating corruption.
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A Call for Prabowo’s Political Will
Sasmito challenged President Prabowo to demonstrate his resolve in tackling high-profile corruption cases. “If President Prabowo is serious about fighting corruption, he must reopen this case. He once said that corruption starts at the top—like a fish rotting from the head. Let’s see if he’s different from his predecessors or just another leader who talks but doesn’t act.”
The BLBI scandal, one of Indonesia’s most significant financial controversies, continues to cast a shadow over the nation. Many hope Prabowo’s administration will finally deliver justice and restore public trust in the fight against corruption.
(Becky)
