SCANDAL OF BAILOUT

SCANDAL OF BAILOUT

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July 20, 2022

Din Syamsuddin, chairman of Indonesia’s second largest Muslim organisation Muhammadiyah, has asked the public to keep monitoring the controversial Bank Century bailout scandal investigation. He said information about the bailout must be revealed to the public and resolved legally. The bailout scandal came into the public view after the House of Representatives summoned the government over its lack of transparency in bailing out the troubled bank. The government initially said the bailout would only cost Rp 632 billion (US$65 million), but it ballooned to Rp 6.76 trillion. The government argued that the bailout was necessary to prevent a chain reaction. Critics, however, say the bank was bailed out not to protect the economy from the effects of the global financial crisis, but rather to rescue the savings of high-profile and politically connected depositors.