Danamon, Permata sale completed<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
PT Perusahaan Pengelola Aset (PPA), an asset management firm
\nunder the Ministry of Finance in charge of the divestment of
\nstate assets, said it had officially completed, and therefore
\nclosed, the sales of a 10 percent stake in Bank Danamon and a 51
\npercent stake in Bank Permata.<\/p>\n
The company said in a statement that the sale of 490 million
\nshares in Danamon was completed on Nov. 10, while Permata's sale
\n-- in which a consortium led by a UK-based Standard Chartered
\nBank and Astra International had been declared the winner -- was
\nconcluded, including the payment, on Nov. 11.<\/p>\n
Proceeds from the two sales total Rp 4.51 trillion (about
\nUS$495 million), all to be used by the government to help cover
\nthe 2004 state budget deficit estimated at Rp 26.3 trillion, or
\n1.3 percent of the gross domestic product (GDP).<\/p>\n
The amount was still well below the Rp 12.5 trillion the
\ngovernment had budgeted to collect this year.<\/p>\n
To make up for that shortfall, the government has said it was
\nplanning to sell minority stakes in four more banks later this
\nyear through PPA, most likely its shares in Bank Central Asia
\n(BCA), Bank Internasional Indonesia (BII), Bank Niaga and Bank
\nPermata.<\/p>\n
PPA still controls a 5 percent stake in BCA, 20.8 percent in
\nNiaga, 21.5 percent in Niaga and 20 percent in Permata.<\/p>\n
The banks were all recapitalized by the government as a bail-
\nout program to help rescue the banking sector crippled by the
\n1997-1998 financial crisis.<\/p>\n
With the soaring oil price boosting the government's spending
\nfor the fuel subsidy -- coupled with slow progress in a number of
\nrevenue targets, including tax collection -- the government is
\nleft under pressure to maintain the budget deficit target.<\/p>\n
As of Oct. 31, the deficit has reached Rp 27.4 trillion, which
\naccounted for 1.4 percent of GDP, according to the ministry of
\nfinance data.<\/p>\n
As of Oct. 31, the tax office -- which makes up the lion's
\nshare of the budget's source of funding -- has collected some 75
\npercent of the full-year tax revenue target.<\/p>\n
It had raked in Rp 178 trillion in the January-October period,
\nfrom the total target of Rp 238.5 trillion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/danamon-permata-sale-completed-1447893297",
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"sponsor": "Okusi Associates",
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