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Indonesia Attorney General:No Irregularity In Bank Century Bailout

JAKARTA -(Dow Jones)- The decision to bail out struggling Indonesian lender PT Bank Century last year was justified as the move was intended to protect the country's financial system, a top Indonesian law enforcement official said Monday.

Attorney General Hendarman Supandji told a televised parliamentary hearing that he found "no irregularity" in the decision to save Bank Century.

His statement comes amid a controversy over the roles of Finance Minister Sri Mulyani Indrawati and Vice President Boediono in the bailout.

A committee which included Mulyani and Boediono, who was the governor of Bank Indonesia at the time, decided to bail out Bank Century in November last year after its capital adequacy ratio deteriorated sharply.

Some lawmakers have alleged that the bailout could have been politically motivated in order to protect large depositors at the bank, while some have even alleged criminal wrongdoing, after it emerged that the bailout cost several times more than originally planned.

-By Jakarta bureau, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@ dowjones.com

  (END) Dow Jones Newswires
  11-08-092227ET
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