House alerts IBRA over revenue target<\/p>\n
JAKARTA (JP): The House of Representatives budget committee
\ncalled on the Indonesian Bank Restructuring Agency (IBRA) on
\nWednesday to speed up its asset disposal program to raise some Rp
\n11.4 trillion (US$1.37 billion) in cash over the next three
\nmonths.<\/p>\n
Head of the committee Abdullah Zaini said on Wednesday that
\nout of the Rp 18.9 trillion targeted by IBRA this year, only some
\nRp 7.5 trillion had been collected.<\/p>\n
"We have warned IBRA to work harder to meet the target because
\nit only has until November," Abdullah said following a closed-
\ndoor meeting between House senior legislators and IBRA top
\nofficials.<\/p>\n
The meeting was held to seek a resolution to the controversial
\nMaster of Settlement and Acquisition Agreements (MSAA) signed by
\nthe previous administration with several bank owners to repay
\ntheir debts to the government.<\/p>\n
Abdullah said that if IBRA failed to meet its revenue targets,
\nthere would be consequences for the current 2000 state budget,
\nincluding delays to certain government projects.<\/p>\n
He said that the government would meet with the House to
\ndiscuss any possible changes to the current state budget before
\nthe budget year ends at the end of December.<\/p>\n
IBRA is mandated to raise the Rp 18.9 trillion target to help
\nfinance the state budget, which is been heavily burdened by huge
\nbank recapitalization costs.<\/p>\n
IBRA chairman Cacuk Sudarijanto confirmed that the agency had
\nso far only raised Rp 7.5 trillion since the budget year started
\nin April.<\/p>\n
He expressed confidence that the agency would be able to meet
\nits target.<\/p>\n
He said that IBRA and the finance ministry would meet with the
\nHouse late this month to seek approval for plans to sell its
\nownership in the publicly listed Bank Central Asia (BCA) and Bank
\nNiaga this year.<\/p>\n
Cacuk said the agency would propose to sell more than a 50
\npercent stake in the two banks.<\/p>\n
"We have to sell a majority stake in order to get a premium
\nprice," he said.<\/p>\n
IBRA earlier said it intended to raise some Rp 1.9 trillion
\nfrom the sale of the two banks.<\/p>\n
The agency has also said that it plans to sell its ownership
\nin dozen of companies in the remaining period of this year.<\/p>\n
The companies were part of various assets surrendered by
\nformer bank owners to repay their debts to the government.<\/p>\n
The previous administration of president B.J. Habibie signed
\nMSAA agreements with former owners of five banks in 1998 and
\n1999. Under the agreement, the bank owners surrender their
\nassets to repay their debts.<\/p>\n
But the current government has said it wants to revise the
\nMSAA agreement because it only benefited the former bank owners
\nat the expense of the state.<\/p>\n
The House has formed a team to study the MSAA agreements. The
\nteam will decide on whether to support the government plans or
\nnot.<\/p>\n
Asked if the controversy surrounding the MSAA agreement would
\ninhibit IBRA's asset disposal program, Cacuk said: "God willing,
\nthe MSAA case will not affect IBRA's target."<\/p>\n
He said that the MSAA agreement was signed with the former
\nowners of Bank BCA, Bank BDNI, Bank Umum Nasional, Bank Risjad
\nSalim and Bank Surya.<\/p>\n
He said that only the former owner of BCA, the Salim Group,
\nhad completed the terms of the MSAA deal by surrendering the
\nassets. (rei)<\/p>",
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