Bank Century Case in Indonesia

The Bank Century situation in Indonesia has been a hot subject in Indonesia for numerous months.My heart goes out to all the victims who lost their savings in the bank.But speaking from my heart,I seriously hope that the victims and the goverment can also realize what it is all about in a logical point of view.

I had buddies who had deposited in a fixed bank deposits with Bank Century about 3 many years back.At that time, I was shocked to hear about the higher returns that they were offering which was a handful of % above the bank interest rates.And they had been competing with the returns that had been achievable if they were managed by asset management businesses. I told my pals that it is not possible for banks to do so, and on further queries produced by my close friends, the advertising from the bank replied that it is achievable as the funds will be managed by an asset management organization owned by the owner of the bank.A loophole in the financial program.

I advised my close friends to refrain from it, but they insisted as the returns is very very good.They deposited in a 3-six months system.I asked to see what variety of documentation or paperwork the bank officers gave them as proof of funds deposited there.It ws a shock to me to study the piece of certificate that they received.On the back of it,was the fine prints of an agreement that the clients have been mainly not mindful of.And I told my pals that it is a risky investment, bearing in thoughts the Bank Global situation that occurred in 2003/2004.

I told them that the risk that their funds of being not deposited in the custodian account of the asset management organization is quite high as there is no hyperlink to that.My business had banking accounts with the bank Century later the following year or so but i manufactured certain to retain tracks that it is managed under the banking regulations. It was also a surprise for me to discover out after that to make transfers from our banking account to other banks, we need to fill n sign two forms whereas in other banks, it is normally 1 form whereby we credit our account to transfer to yet another account.In Bank Century,the process was to fill in a withdrawal form and to fill one more fund transfer form.Withdrawal forms are dangerous as it can be a cash withdrawal and there is no proof that the funds will be debited to the designated account.It really reminds me so a lot of the Bank Global case.I asked the advertising officers and the head of advertising and marketing in the Bank Head Branch relating to that, and the answer was, it is the SOP of the bank and they reasssured me that it will be processed as instructed.

I made the decision to take safety precautions from then on.We still deal with Bank Century as their charges for interbank transfers are very competitive but i constantly make sure not to have much funds in the accounts, to transfer in when we have to do interbank tranfers,and to transfer out to yet another bank when we have incoming funds. And I get the finance staff to contact and chase the bank officers every single time to get the BOR quantity for every transfer completed.

It was a shock to me when it lastly occurred though.With the exceptional services and the bank’s business plan that the head of advertising and his officers had been selling to me, I believed that possibly i was incorrect in my judgement three many years back.The first signs of difficulty came, when at that time, my company have about a couple of hundred USD in the bank Century bank savings accounts that was prepared to be transferred out and they didn’t do it.they kept saying that it was becoming accomplished, but there was a extended waiting list of outgoing transfers to be carried out by the dept and we have to wait for our turn.We chased them evening n day till we receive the funds in our other bank’s account a week later.It was a relief as the fiscal crisis had begun not prolonged prior to and we could not afford to have to deal with that if it is lost.From then on, I instructed my staff to defer all banking matters with Bank Century for the time getting and stick to major national or foreign banks in Indonesia.

A week or two later, news of difficulty in bank Century were all over the place in the media.Then the public bailout by the goverment came into the news.My personal viewpoint at that time was, it was needed.If not, then all other banks who are not significant banks wil be rushed by their customers as they lost confidence with the banking system in Indonesia.But what i did not anticipate was that the buyers did not get their income back till now,and the taxpayers cash paid out to save the bank was so enormous.My personal question is ‘So where did the taxpayers funds go to?’ That is the query the public ought to chase the goverment for.The Indonesian Goverment have to be accountable for that and also for failing to make sure that banking regulations are implemented by Bank Century.

My peronal opinion is also : People who worked in the bank are not at fault here.They had been just undertaking their jobs. They do not know anything as they cannot go against the owners wishes who how they want the bank to be run.Please keep in mind the old saying “THE BOSS IS Always Proper.” Their fault was they chose the wrong firm to function for but then yet again, they did not know and they did not anticipate this to occur.I am really confident that they are also extremely upset and as upset as the customers too as they are also victims of the company’s policies set by the owners. On top rated of that, they have to accept being shouted,scolded,ranted,mentally abused by the buyers. But they have to bear it all in the name of a work that offers for their households.A low paying job for the bank tellers, consumer service officers, security officers and other admininstrative jobs just to guarantee that the data of the bank consumers are still secure and hopes that some wrongs can be righted for the bank’s consumers.

I pray for strength and faith for all the customers who are victims. Trust in God and your life, health and emotional wellbeing is most crucial compared  to monetary losses. Believe of all the victims in Padang, these people who died in organic disasters in tsunamis, earthquakes,floods,victims of wars etc.They don’t even have the appropriate to pick to hold on for their lives. Don’t throw away your lives in commiting suicide as some who have been reported by the media.Be Robust. My prayers and spirit are with you, rooting for you all. God Bless You and your Households.

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