Rumours cause bank panic in Indonesia

Will there be enough money for everyone?

Indonesia's largest private bank, BCA (Bank Central Asia), has been besieged by thousands of investors during the past few days following rumours that the company is about to collapse.

Large queues formed outside BCA branches in the capital Jakarta and many large towns across the country. In Surabaya the queues were so long that they caused a traffic jam in the main street.

The bank is owned by the Indonesian business tycoon Liem Sioe Liong and two children of former President Suharto, Sigit Hardjojudanto and Siti 'Tutut' Hardiyanti Hastuti.

A BCA spokesman declined to comment on the bank's financial situation, saying only that all deposits were "guaranteed by the government."

On Sunday the bank issued a statement insisting that BCA was still "healthy" and denied rumours that the majority share holder, Liem Sioe Liong, had sold his 70% stake in the bank.

Meanwhile, Bank Indonesia, the country's central bank, has promised to provide temporary funds to BCA if necessary.

One European banker in Jakarta said the BCA rush could be "the last nail in the coffin" for the battered Indonesian economy.

Since the resignation of President Suharto, several companies associated with his family and his friends and political allies have been hit by financial trouble.