Far East Economic Review 10 January 2004 Letter to Far East Economic Review Editor submitted 11 December 2003 Sir, We refer to your article headlined “Indonesia – Talk is Cheap But Bailouts are Costly” (FEER Dec 11, 2003) and are dismayed by the misleading representation of the Gadjah Tunggal Group and its founder, Sjamsul Nursalim. Whilst Mr. Nursalim was called upon, as have many businessmen and bankers, by Indonesian authorities for questioning about emergency state loans extended to Indonesia's beleaguered banks during the Asian crisis, he was however NEVER charged by the Indonesian authorities of any misappropriation. Your writer himself quotes an IBRA official that the group has been “pretty cooperative”. He also acknowledges from the Attorney General office that there are no legal charges against him. In fact Mr. Nursalim has been extremely cooperative with IBRA, even after the government of the previous administration reneged on the release and discharge provided to Nursalim under a landmark master settlement agreement. Cannot a civilian also deserve a right to legal certainty? An examination of official documents including the release and discharge from the government will clearly show that there could be no legal grounds for a corruption case involving the liquidity support funds. Emergency liquidity support funds were given to Bank Dagang Nasional Indonesia to help cope with the systemic banking crisis. None of the funds was extended to Nursalim's business group. All transactions were transparently documented, counter-signed and were all used to pay the bank's third-party obligations of depositors and financial institutions. The amount escalated due to the rupiah's plunge and the interest rate, which went as high as 80 percent, and heavy penalties imposed. The details and breakdown of the funds usage were published in several major local newspapers. None of the funds from the government was ever misappropriated. Even though BDNI was a publicly listed entity, Mr. Nursalim had to personally repay BDNI’s full obligation under a master settlement agreement signed by the Indonesian government, IBRA and with the blessing of the World Bank and IMF. Gadjah Tunggal sponsorship along with many others of an education Forum co-founded by leading international academic and Indonesian institutions to promote transparent engagement across diverse sectors is a positive development toward an open learning process. We regret that you smear an education initiative so important for Indonesia’s rebuilding of confidence, tourism, legal certainty without sending your journalist to attend the gathering. All over Asia, people have looked up to your publication as a champion for fairness, due process of law and the principle of innocence until proven guilty. Yet you have tried by headline and insinuation and we really regret this. Sincerely,