BNI, Permata should learn from past merger mistakes<\/p>\n
Rendi A. Witular and Dadan Wijaksana, Jakarta<\/p>\n
Bank Indonesia (BI) is urging state-owned Bank Negara
\nIndonesia (BNI) to set up a comprehensive feasibility study for
\nits plan to merge with Bank Permata to avoid similar \"mistakes\"
\nin the merger made by Bank Mandiri and Bank Danamon.<\/p>\n
\"The central bank supports the merger plan, but the process
\nshould be clear. The banks must ensure that the merger will
\nresult in a healthier bank in terms of financial ability,
\nperformance, human resources and service,\" BI's Senior Deputy
\nGovernor Anwar Nasution said on Tuesday after attending a meeting
\nwith the House of Representatives's budget committee.<\/p>\n
\"The merger is not about moving someone's money from the right
\npocket to the left. If that's the case it will be useless,\" he
\nsaid.<\/p>\n
Anwar explained that BNI and Permata should learn from the
\nmistakes made during the merger of Bank Mandiri and Bank Danamon,
\nwhich, he said, are still undergoing a long consolidation process
\ndespite the fact that they had spent a lot of money and laid off
\nhundreds of employees for the mergers.<\/p>\n
Bank Mandiri was formed in late 1998 out of the merger of four
\nstate banks: Bank Export Import Indonesia, Bank Pembangunan
\nIndonesia, Bank Bumi Daya and Bank Dagang Negara. Bank Danamon
\nwas enlarged in 2000 when it was merged with Bank Jaya, Bank
\nTiara, Bank Pos, Bank Rama, Bank Nusa Nasional and Bank Duta, and
\nBank Risjad Salim Internasional.<\/p>\n
BNI, which focuses on the corporate sector, proposed the
\nmerger to the government a month ago in order to strengthen its
\nfinancial ability and to expand its business to the retail and
\nconsumer sector, the main businesses of Permata.<\/p>\n
Separately, Deputy State Minister of State Enterprises for
\nbanking and finance Suad Husnan said that his office was still
\nevaluating the proposal and expected to come up with a result in
\nthe second semester.<\/p>\n
BNI and Permata are the country's second and seventh largest
\nbanks respectively in terms of assets. BNI has assets worth Rp
\n131 trillion (US$19 billion) and Permata about Rp 30 trillion.<\/p>",
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