Start with Asian economic crisis in 1997, the domestic exchange rate in Asian countries was depreciated, its

include the value of rupiah. In order to cover the depreciation of rupiah, Indonesian Bank expand the interval of exchange rate from Rp. 192 (8%) to Rp.304 (12%). Then Indonesian Bank increase the liquidity of money by increasing interest rate of SBI (Sertifikat Bank Indonesia) from 6% to 14%. As a consequences, the convensional bank suffer the banking crisis. They need an aid from The Bank of Indonesia as a Lender of Last Resort. Then, we know the bailout fund from Indonesian Bank as BLBI (Bantuan Likuiditas Bank Indonesia). Actually, BLBI is a kind of facility that the Bank of Indonesia gave in order to stabilize the payment system of banking sector due to mismatch between debit and credit in short term and long term. However, Bank of Indonesia do dispensation without doing pre-audit which one the bank that need to liquidate or not. As a result, many bank do not able to payback BLBI funds. BLBI case is not only include the usual banking crime but also a corruption, fraud and nepotism. There are a substanse of corruption in BLBI, that is bribery and conflict of interest within the authority. Indonesia is a developing country which is in transition from economic crisis era become a developed country. Unfortunately, some people who has a greater authority exploit this condition to fulfil their own interest. Start with the conflict of interest and following by bribery for the solutions. The corruption exist from the top authority , The power tends to corrupt, absolute powers corrupts absolutely.

Century Case BLBI as the policy of Bank of Indonesia lead some banking case, due to the bribery and conflict of interest of some authority. The hot case in BLBI is the case of Century Bank which is not clear until now. The issue of this case developed into a political issue, it is because the case of Century Bank policy-making involves many state officials, including the number one authority in Indonesia, that would led to the unstable economy and political condition. By considering the systemic effect, Century Bank received bailout funds as much Rp.6.7 Trillion, larger than the initial agreement in the Parliament which only amounted to Rp. 1.3 Trillion. There was three reasons why Century Bank should be bailout :
1.

The fluctuation in the market situation, crisis in Century Bank can infuences the capital market.

2.

There was 18 bank who suffer banking crisis and 5 of that bank similar with Century case. According to financial minister, if Century Bank closed at the time, it would affect another banks. Dominos affect, when one bank suffer a crisis, it would affect another banks balance sheet.

3.

However, there are some allegations of corruption in Century Case. There was several contradiction of bailout fund in Century case: 1. BI should be re-audit the bailout policy for Century. Because the costumers of Century Bank only around 65 thousand peoples, it means only 0.1% from a whole costumers of banking in Indonesia. Moreover, Century only have 7 branches in Indonesia. CAR (Capital Adequacy Ratio) of the Banking sector in Indonesia still during 17%, it means Century case would not cause the systemic affect for another banks. 2. The bailout policy was not transparent and ignored some procedures, such as examine the characters of bailout fund (honesty bank owner), collateral (the guarantee of the debt), capacity (ability to manage the bak), and considering the economic conditions before the bailout. There was unjustly policy, the Century assets is not more than Rp. 2 Trillion then recovered by the government as much Rp. 6.7 Trillion.

3. The bailout fund for Century is too large, 30% of overall savings in the Saving Guarantee Institutional (LPS) which only has Rp. 18 Trillion. It means that there was an element of abuse of power commited by the authority of Finance Minister and the authority of BI which potentially broke the country and its costumers. Corruption cases of the bailout funds for Rp. 6.7 Trillion Bank Century was an impact on various sector, particularly the political and economic stability in Indonesia.
Thontowi Ahmad Suhada. (2009). Ada Aapa Sebenarnya dengan Century. (online). http://mahasiswaekonomiindonesia.blogspot.com/2009/10/ada-apa-sebenarnya-dengan-century.html

OLITTT. REFERENSI YG BLBI DI LEPI UCII. JD CM 1 ITU CI BIKIN REF NYA. OLIT TAMBAHANIN AJA YAAA . HEHE