JAKARTA (Yosefardi) – The Supreme Audit Agency (BPK) revealed that the capital injection for PT Bank Mutiara Tbk (BCIC), formerly Bank Century, by The Indonesian Depositors Insurance Agency (LPS), was illegal as it violated the laws.
LPS in December 2013 injected Rp1.5 trillion to support BCIC, who was bailed out with Rp6.7 trillion five years ago.
BPK has yet to investigate Bank Indonesia for this case as BPK is not yet granted with the permit or authority from the House of Representatives (DPR).
BPK found the problem in loan management by BCIC and BCIC also did not disclose the precise level of its capital adequacy ratio (CAR).
BPK said LPS’ treatment on BCIC is considered not effective as its practices against the banking laws.