Indonesian Bank Restructuring Agency

In addition, the Government instituted a blanket guarantee program for all bank liabilities, to arrest further erosion of confidence towards the system.

This process left the Indonesian banking system holding a large number of bad loans at the end of 1997.

27 Year 1998), IBRA's objectives were to administer the government's blanket guarantee program, and to supervise, manage and restructure distress banks.

A Financial Sector Policy Committee (FSPC/Komite Kebijakan Sektor Keuangan) was formed on 21 August 1998 whose members included the main economic ministers of Indonesia, and the Independent Review Committee (IRC), which includes representatives from International Monetary Funds (IMF), the World Bank and Asian Development Bank (ADB).

One main problem for the Agency was that, partly because of period of political instability that Indonesia passed through after the fall of President Suharto in May 1998, there were numerous changes in leadership (of the Ketua or the chair) of IBRA.