FORD: How did you get involved with the brokerage firm that channeled payments from Bank Bali to the Habibie campaign? RAMLI: When the Indonesian government shut down several banks early last year, about $160 million of Bank Bali’s money got caught in the system at the central bank. We wrote letters, held meetings, pleaded with officials, but they wouldn’t release the money. If I’d had the money, I might have been able to save my bank. As it was, I was forced to accept deposits from customers at high interest rates. The bank was bleeding money; I was desperate. It seemed that only these particular brokers could actually get the money.
Was there a conspiracy to steal the money? It seems so. At the very least there was collusion and possibly a cover-up. It’s hard not to be suspicious. Foreign banks got their money out of the system, but not local banks. Why?
Is corruption endemic in Indonesia? No. It is a question of personnel. Now we have a new government with honest leaders, and there are an adequate number of clean financial professionals who can serve.
Many people think that as an ethnic Chinese businessman you have been very brave. I didn’t feel brave at the time [I came forward]. It was like being constantly shot at. I had to duck some questions because [they]… could have affected my court case. Other questions, it could have been dangerous for me to reveal the answer. People could have gotten angry. When I could answer, I just told the truth. When the parliamentarians cheered me, it was really crazy. I felt my feet weren’t on the ground.
Soon after your revelations, the government turned over management to Standard Chartered Bank. You were arrested. How could this happen? It was a terrible shock. We had been working with Standard Chartered for several months, as they were planning to buy a stake in Bank Bali. The night before, they hosted a large party at a big hotel, flying in their chief executives. It was like a wedding party to celebrate their entry as a partner. The following day we were kicked out and the government took over. To us it seemed the marriage had become a rape. I feel I was deceived.
Your staff has forced Standard Chartered executives out of the bank. Will this have a bad effect on foreign investment? I didn’t agree with the staff’s action. Bank Bali needs a foreign partner. But they have become very emotional about the injustice done to me and the management. Bank Bali was always regarded as well run; that’s why many large banks negotiated with us in the first place. I think that like me, foreign investors want to see fair treatment and the rule of law in Indonesia.
Are you confident that you can regain control of your bank? More confident than before. We have a new government, and it seems the wind is blowing from a different direction. Now the court case has been dismissed, I can concentrate on my lawsuit against the central bank. I’m trying to find out who wrote the letter authorizing the takeover of the bank. That was a wrongful decision. Already the court is receiving threats, so it seems there will be a long struggle ahead.
How has this case affected you? It has been very difficult. I have sent my wife to Singapore and my daughter to Australia, so they are safe. In March the stress was so serious that I had a stroke. I’ve now recovered, but when I was put in jail the symptoms returned. It was very scary–there were more than 20 murderers in cells nearby. I was well treated by the police and the warders, who seemed to realize I was a scapegoat. But even now I don’t feel safe to go out or to live at my own home.
