Bakrie to form consortium to buy Bank Pacific<\/p>\n
JAKARTA (JP): Bakrie Group chairman Aburizal Bakrie said he
\nwould form a consortium with several local businesspeople to take
\nover the ailing Bank Pacific.<\/p>\n
Aburizal said after attending a House Budget Commission
\nhearing that Bank Pacific, after being acquired, would be managed
\nby Bakrie Group affiliate Bank Nusa International.<\/p>\n
Aburizal refused to identify the consortium's potential
\nmembers.<\/p>\n
He said earlier he had received a commitment from several
\ninvestors, including President Soeharto's daughter Siti Hediati,
\nto provide financial support for Bank Pacific.<\/p>\n
But Bank Indonesia (the central bank), which is Bank Pacific's
\nmajority shareholder, has not made any decision on Aburizal's
\noffer to help salvage Bank Pacific.<\/p>\n
The central bank controls 51 percent of Bank Pacific. The
\nremaining 49 percent is held by the bank's founder, Ibnu Sutowo,
\nformer president of state-owned oil firm Pertamina, and his
\nfamily.<\/p>\n
Bank Pacific was on the brink of collapse in late 1995 because
\nof bad loans but the central bank bailed it out.<\/p>\n
The bank's bad loans are estimated at Rp 2.1 trillion (US$876
\nmillion). At the end of 1995 its total assets were estimated at
\nRp 2.2 trillion.<\/p>\n
Most of the bad debts were incurred by PT Pacific
\nInternational Finance, a company owned by Endang Utari Mokodompit
\n-- the bank's former president and Ibnu Sutowo's daughter.<\/p>\n
Pacific International reportedly used most of its Bank Pacific
\nearnings in the property sector, including the Lido resort in
\nWest Java which was a disaster.<\/p>\n
Bank Indonesia assigned state-owned Bank Negara Indonesia
\n(BNI) 1946 to manage the bank. BNI injected Rp 500 billion into
\nthe bank and issued money market securities worth Rp 500 billion
\nwhich were bought by the central bank.<\/p>\n
The central bank has offered the ailing bank to several
\ninvestors, including Bank Danamon, which has experience in
\nacquiring ailing banks.<\/p>\n
Bank Danamon, which entered into negotiations with Bank
\nIndonesia about a possible takeover but is reportedly withdrawing
\nfrom the takeover battle.<\/p>\n
But a Bank Danamon executive said his bank was never
\ninterested in acquiring Bank Pacific.<\/p>\n
Several parties, including a senior minister, have frowned
\nupon the possibility of Bank Danamon buying Bank Pacific because
\nit would further strengthen certain groups' dominance of the
\nfinancial sector.<\/p>\n
Moreover, banking sources said Bank Danamon would not finance
\nits acquisition entirely with fresh funds. It had asked for
\nsubsidized liquidity credits of up to Rp 1.8 trillion from Bank
\nIndonesia.<\/p>\n
Bank Indonesia director Heru Soepraptomo said last week new
\ninvestors interested in acquiring Bank Pacific should not ask for
\nliquidity credits from the central bank.<\/p>\n
\"If we are compelled to give liquidity credits, we will
\nprovide a small amount only,\" Heru said.<\/p>\n
Aburizal said the new consortium would finance the takeover
\nitself. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-to-form-consortium-to-buy-bank-pacific-1447893297",
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