IBRA exceeds 2001 target<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) said on
\nThursday that it had raised a total of Rp 27.98 trillion (about
\nUS$2.7 billion) in cash and Rp 10.6 trillion worth of
\nrecapitalized bonds, slightly exceeding its target for this
\nyear's state budget.<\/p>\n
IBRA chief I Putu Gde Ary Suta told a press conference on
\nThursday that the agency had fulfilled its duty in terms of asset
\nsales, at least for this year.<\/p>\n
\"Up to today, IBRA has delivered 27.98 trillion rupiah in cash
\nto the state,\" Ary Suta said.<\/p>\n
\"Despite the harsh criticisms that we have had to endure,
\nwe're glad that we have finally finished the job for this year,\"
\nhe added.<\/p>\n
The agency has been the target of criticisms for its slow
\nprogress on asset sales, raising concerns that it might be unable
\nto meet the cash target needed to help plug the state budget
\ndeficit.<\/p>\n
Set up in 1998, IBRA controls over Rp 600 trillion worth of
\nassets transferred by indebted bank owners and closed and
\nrecapitalized banks, and is mandated to restructure and sell
\nthose assets.<\/p>\n
Banks handed over their nonperforming loans to IBRA in
\nexchange for recapitalization bonds.<\/p>\n
According to Ary Suta, the proceeds were mostly generated by
\nthe agency's Asset Management Credit (AMC) division, Asset
\nManagement Investment (AMI) division, and the Bank Restructuring
\nUnit (BRU).<\/p>\n
Of the total earnings, Rp 11.67 trillion came from the sale of
\nassets under the supervision of PT Holdiko Perkasa, a holding
\ncompany set up by the agency to oversee the assets formerly
\nbelonging to the Salim Group.<\/p>\n
As for next year, IBRA will be relying on the sale of assets
\nwithin the AMC division, which has been targeted to raise some Rp
\n22.21 trillion from its core assets disposal, or around 52
\npercent of the agency's target of Rp 42.8 trillion in cash and
\nbonds.<\/p>\n
Other major contributors will be the sale of assets within the
\nAMI division, including the sale of several parent companies
\nunder PT Holdiko Perkasa and PT Bentala Kartika Abadi.<\/p>\n
In the banking sector, aside from the long-stalled Bank
\nCentral Asia (BCA) divestment, IBRA will also pin its hopes on
\nthe sales of Bank Niaga, Bank Danamon and Bank Lippo.<\/p>\n
IBRA was supposed to have completed the sale of BCA and Bank
\nNiaga this year, but had to delay the process due to the current
\nweak market conditions and a protracted debate with legislators.<\/p>",
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