BLBI was a 147.7 trillion rupiah emergency loan scheme that exposed major irregularities costing Indonesia an estimated 138 trillion rupiah.
Key Facts
- Total funds disbursed
- 147.7 trillion rupiah (US$17.37 billion)
- Number of banks aided
- 48 banks
- Estimated loss from irregularities
- 138 trillion rupiah (US$8.56 billion)
- Date of disbursement
- December 1998
- Triggering event
- 1997 Asian financial crisis
By the Numbers
Location
Cause → Event → Consequence
The 1997 Asian financial crisis severely destabilized Indonesia's banking sector, causing acute liquidity shortfalls across dozens of banks. The Indonesian government negotiated an agreement with the International Monetary Fund to address the economic emergency, which mandated intervention to prevent a systemic banking collapse.
In December 1998, Bank Indonesia disbursed 147.7 trillion rupiah (approximately US$17.37 billion) to 48 troubled banks under the Bank Indonesia Liquidity Aid (BLBI) scheme. The program was designed as an emergency measure to restore solvency and public confidence in the Indonesian banking system during the height of the financial crisis.
A subsequent audit by Indonesia's Audit Board uncovered significant irregularities in how the loans were processed and used. These irregularities were found to have cost the Indonesian state approximately 138 trillion rupiah, making BLBI one of the largest financial scandals in Indonesian history and prompting prolonged legal and political disputes over accountability.