Bank Indonesia revokes the business license of PT. Bank IFI

Based on Governor Decree No. 11/ 19 /KEP.GBI/2009 dated 17th April 2009, Bank Indonesia has decided to revoke the business license of PT. Bank IFI. The revocation was taken pursuant to the mechanism and procedure detailed in Bank Indonesia Regulation (PBI) No.6/9/PBI/2004 dated 26th March 2004 regarding Follow-up Supervision and Inspection of Bank Status superseded by PBI No.10/27/PBI/2008 dated 30th October 2008.

Bank Indonesia took a number of recovery steps in accordance with prevailing supervisory procedure, including appeals to the majority shareholder to add supplementary capital as well as maintain bank liquidity. However, the bank was unsuccessful in its recovery program. Therefore, the business license was subsequently revoked in the consumers’ best interest and in order to avoid incurring any further losses.

Meanwhile, based on Act No. 7, 1992, amended by Act No. 10, 1998, regarding Banks and Act No. 24, 2004 concerning the Deposit Insurance Corporation (DIC), the settlement of PT. Bank IFI’s outstanding liabilities to their depositors/creditors will be handled by DIC in line with prevailing regulations. As a result, the bank’s customers are requested to remain calm and contact their nearest PT. Bank IFI branch office for further information.

In terms of settling customer deposits, DIC will reconcile and verify deposits to ensure which should and should not be honored. The reconciliation and verification process will take no longer than 90 working days from the date of the bank’s license revocation. The payment of deposits by DIC will be conducted under the following mechanism:

1. Payments will be made via banks specifically designated by DIC through their nearest branch office in order to simplify the receipt of deposited funds by the depositor/creditor.
2. To simplify the payment process, other depositors and creditors are instructed to present their documents or other evidence of fund ownership as well as an official form of identification such as KTP, driving license or other type of identification.
3. DIC will announce shortly the timeframe for payments.

Employees of PT. Bank IFI are expected to assist with the handling process undertaken by DIC.