Kaharudin Ongko Debt IDR 8.2 Trillion to the State
Haven't heard of it for a long time, now the name Kaharudin Ongko has come back to the surface. The Task Force for Handling State Collection Rights for Bank Indonesia Liquidity Assistance Funds or the BLBI Task Force summoned one of these BLBI obligors to settle the claim for BLBI funds worth Rp 8.2 trillion.
"If you do not fulfill the obligation to settle state collection rights, then actions will be taken as regulated in the laws and regulations," reads an announcement from the Head of the BLBI Task Force Ronald Silaban on August 31, 2021.
Kaharudin was known as a tycoon in the New Order era. He had been a Deputy Commissioner of PT Bank Umum Nasional (BUN), a bank that received BLBI funds. The summons for Kaharudin was published on August 31, 2021, in Kompas Daily. Through the announcement, the Daily Head of the BLBI Task Force, Ronald Silaban, asked him to pay off debts to the state totaling Rp 8.2 trillion.
Today, Kaharudin has to meet the Chair of the Team C Collection and Litigation Working Group at 10.00 WIB at the Syafrudin Prawiranegara Building, 4th floor North, Ministry of Finance on Jalan Banteng Timur 2-4, Central Jakarta.
The details of the debt that need to be repaid are:
1. Rp 7.8 trillion in the context of the 1998 National Commercial Bank PKPS and
2. Rp 359.43 billion in the framework of Bank Arya Panduarta.
"If you do not fulfill the obligation to settle the state's collection of rights, then actions will be taken as regulated in the laws and regulations," said Ronald Silaban in the announcement.
Just so you know, the Rp 8.2 trillion BLBI fund had problems.
Kaharudin is known to have secretly taken funds and channeled them to several affiliated companies, ranging from a ceramics company, PT KIA Keramik Mas to securities, PT Ongko Sekuritas.
He disbursed the funds when he served as Vice President Commissioner of PT Bank Umum Nasional (BUN).
Because of his actions, Kaharudin was charged with embezzlement of funds in 2003 and sentenced to 16 years in prison. Unfortunately, the charges fell and Kaharudin ended up acquitted.
In the announcement of the summons, the BLBI Task Force listed 3 addresses where Kaharudin lived.
One of the addresses addressed is Paterson Hill, Singapore.
Who is Kaharuddin Ongko?
Kaharudin Ongko is the owner and Vice President Commissioner of BUN. The company was founded by several figures from the Indonesian National Party (PNI) in Jakarta on September 2, 1952.
In 1954, BUN succeeded in upgrading its status from a private non-foreign exchange bank to a foreign exchange bank. In 1967, the number of branches has reached 11 branches in Indonesia.
Over time, the owners were unable to manage the development of the bank following the demands of the times, at the beginning of the New Order era they handed over management and bank shares to a group of private entrepreneurs under the leadership of Kaharudin Ongko. Kaharudin Ongko was a 'king of Indonesian ceramics' because of his KIA, become the majority shareholder of BUN.
Under the new management, the bank began to grow rapidly, both in terms of assets, profits, and business network expansion.
The 1997 monetary crisis hit, banking in Indonesia collapsed, and BUN was no exception.
To prevent bankruptcy in the BUN during the monetary crisis, the government through the BLBI injected a total aid fund of more than Rp 12 trillion.
Of this amount, Rp 8.34 trillion of which went to BUN cash.
However, BUN remained unavoidable, not only because it was massively withdrawn by its customers, but also by the Ongko group itself.
Companies affiliated with Ongko have deposits in BUN, including PT KIA Keramik Mas, PT Ongko Sekuritas, PT Indokisar Djaya, and PT Bunas Finance Indonesia. Funds are transferred using cheques, billets, demand deposits, and transfers. In fact, the provisions for BLBI funds cannot be channeled to bank owners and management, as well as related parties.
Ongko's cunning efforts were caught by law enforcement officials in Indonesia.
In 2003, Kaharudin Ongko was sentenced to 16 years in prison because he was believed to have embezzled Rp 6.7 trillion in BLBI funds.