Govt to replace BRI, BTN management<\/p>\n
Rendi A. Witular, The Jakarta Post\/Jakarta<\/p>\n
The government plans to reshuffle the top management of state-
\nowned Bank Rakyat Indonesia (BRI) and Bank Tabungan Negara (BTN)
\nin the very near future to help improve the banks' performance, a
\nsenior government official said.<\/p>\n
Suad Husnan, deputy for the banking and finance industry at
\nthe Office of the State Minister of State Enterprises, said
\nmanagement changes at state enterprises under his supervision
\nwould be conducted immediately for BRI and BTN.<\/p>\n
\"The tenure of the management of BRI and BTN will expire next
\nyear, as they have served for four years. We need to rejuvenate
\nthe banks by putting in new people,\" said Suad at his office on
\nThursday.<\/p>\n
Suad said the reshuffle would be conducted during the annual
\nshareholders meeting and after the two banks completed their 2004
\naudited financial reports The meeting is scheduled for February
\nor March next year.<\/p>\n
State Minister of State Enterprises Sugiharto has previously
\nsaid the ministry would not immediately change the management of
\nstate enterprises prior to the scheduled shareholders meeting.<\/p>\n
Suad, however, refused to name the candidates.<\/p>\n
At present, the post of BRI president director is held by
\nRudjito, who took over the helm in July 2000. Rudjito, 58, has
\nbeen successful in launching the bank's initial public offering
\n(IPO) last year and helping the bank form its corporate culture.<\/p>\n
However, several financial leakages at the bank and fraud
\nconducted by bank officials due to the weak internal supervision
\nhave blurred his success.<\/p>\n
Meanwhile, the current president director post at BTN is held
\nby Kodradi, who assumed the post in May 2000. Kodradi have been
\nstruggling to make BTN an efficient bank that mainly focuses on
\nhousing loans.<\/p>\n
Interest rates offered by BTN for housing loans are currently
\nstill significantly higher compared to those offered by private
\nbanks, discouraging the public from taking the mortgage facility
\noffered by the banks.<\/p>\n
Regarding a possible reshuffle in other state banks, such as
\nBank Negara Indonesia and Bank Mandiri, Suad said there were no
\nplans for that yet, since the management of the two banks had
\nbeen recently appointed.<\/p>",
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