Government to replace IBRA chief this week: Prijadi<\/p>\n
JAKARTA (JP): Finance minister Prijadi Praptosuhardjo said on
\nMonday that chairman of the Indonesian Bank Restructuring Agency
\n(IBRA) Cacuk Sudarijanto would be replaced this week.<\/p>\n
Prijadi said there were five candidates for the post but he
\ndeclined to name them.<\/p>\n
"Cacuk will be replaced this week... There are five
\ncandidates," he told the House of Representatives Commission IX
\nfor state budget and banking during a meeting.<\/p>\n
Asked if former president of Bank Negara Indonesia (BNI)
\nWidigdo Sukarman would be Cacuk's successor, he said: "It is not
\ncertain yet."<\/p>\n
News reports have said earlier that Widigdo would replace
\nCacuk.<\/p>\n
IBRA is a crucial agency managing around Rp 600 trillion
\n(US$64 billion) worth of assets surrendered by closed or
\nnationalized banks.<\/p>\n
The agency is mandated to restructure and sell the assets to
\nhelp finance the country's bank restructuring and
\nrecapitalization program.<\/p>\n
The President has the authority to pick the chairman of IBRA.<\/p>\n
Cacuk was appointed as the agency's chairman earlier this year
\nbut he was also recently inducted into the Cabinet holding the
\nnewly created post of the Junior Minister for the Restructuring
\nof the National Economy.<\/p>\n
The International Monetary Fund has been disappointed over the
\nslow pace of the sale of IBRA's assets, including the recent
\ndelay in the government's divestment of Bank Central Asia (BCA).<\/p>\n
IBRA has also been criticized for the debt restructuring
\nmechanism for certain indebted conglomerates as it was seen as a
\ngovernment bailout.<\/p>\n
The agency aims to raise around Rp 18.9 trillion in cash this
\nyear to help finance the state budget which is heavily burdened
\nby the bank restructuring cost. IBRA has so far raised around Rp
\n12 trillion.<\/p>\n
The government has issued more than Rp 400 trillion worth of
\nbonds to help finance the country's bank recapitalization cost.
\nThe state budget covers the interest rate of the bonds. IBRA will
\ncontribute through the proceeds from the sale of its assets.<\/p>\n
IBRA is targeted to raise around Rp 27 trillion for the
\nupcoming 2001 state budget.<\/p>\n
Meanwhile, Prijadi told legislators the government was
\nplanning to reduce the amount of outstanding recapitalization
\nbonds to ease the burden of the state budget.<\/p>\n
He did not elaborate but a senior official at the finance
\nministry later told The Jakarta Post the cash would come from the
\nproceeds of the sale of IBRA assets.<\/p>\n
The official said the IBRA proceeds could either be used to
\nservice the interest rate of the bonds or to repurchase the
\nbonds.<\/p>\n
He said another option for reducing the government bonds was
\nswapping the bonds with bank loans under the management of IBRA.<\/p>\n
Prijadi also said he would announce this week the new director
\ngeneral of state-owned enterprises.<\/p>\n
He said since Oct. 10, the authority over the country's more
\nthan 150 state enterprises had been returned to the finance
\nministry.<\/p>\n
Former president Soeharto created in 1997 a new ministry
\nresponsible for the state enterprises. During former president
\nHabibie, state enterprises was put under the office of the state
\nminister for investment and state enterprises development.<\/p>\n
Prijadi said the government remained committed in continuing
\nthe privatization of state enterprises and expressed confidence
\nthat the government would meet the target of raising around Rp 5
\ntrillion in privatization proceeds next year.<\/p>\n
But he said the target to raise Rp 6.5 trillion this year
\ncould not be met due to various reasons including weak market
\nsentiments and unresolved regulatory issues.<\/p>\n
The government has initially planned to privatize 10 state
\nfirms this year but none has been finalized.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-to-replace-ibra-chief-this-week-prijadi-1447893297",
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