IBRA expects Rp 4t in Salim asset sales<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
Sales of assets formerly owned by the Salim Group may generate
\nbetween Rp 3 trillion (about US$288 million) and Rp 4 trillion
\nfor the Indonesian Bank Restructuring Agency (IBRA), as the
\nagency hopes to sell off the remaining jewels among Salim's
\nassets.<\/p>\n
IBRA deputy chairman for Asset Management Investment (AMI),
\nDasa Sutantio said however, it was difficult to expect more out
\nof the Salim assets.<\/p>\n
\"It's unlikely that we will be able to get half of our (asset
\nsales) target from Salim,\" Dasa told reporters after a briefing
\non the sale of Salim's PT Indomobil Sukses Makmur.<\/p>\n
AMI aims to sell Rp 8.4 trillion in assets this year to
\ncontribute to the financing of the 2002 state budget deficit.<\/p>\n
It has thus far been relying heavily on the sale of the former
\nassets of Salim Group, which rank among the most valuable under
\nIBRA.<\/p>\n
Among them, have been Salim's large plantations in Sumatra,
\ntelevision broadcasting company PT Indosiar Visual Mandiri and
\nIndomobil.<\/p>\n
Salim surrendered its assets to IBRA in exchange for the
\nagency's bail out of its ailing Bank Central Asia (BCA) at the
\nheight of the economic crisis in 1998.<\/p>\n
Thereafter, some Rp 52 trillion worth of Salim assets switched
\nownership.<\/p>\n
Handling the sale of Salim assets is PT Holdiko Perkasa, which
\nis Salim Group company managed in conjunction with IBRA.<\/p>\n
Holdiko has earmarked Salim property assets for sale this
\nyear. Among them are the real estates Bumi Serpong Damai, Kota
\nBukit Indah, Cibinong Center Industrial Estate, and several
\nresorts in Riau, Sumatra.<\/p>\n
According to Holdiko finance director Scott Coffey, the top
\nrating assets include Bumi Serpong Damai, Metropolitan Kencana, a
\ntextile company, and several Salim resorts in Bintan.<\/p>\n
But with most of the more valuable Salim assets already sold,
\nthere has been concern IBRA may not be able to sustain large cash
\ninflows from its asset sales.<\/p>\n
Dasa said his AMI division was hoping to see some IBRA debtors
\nstart settling their debts with cash instead of asset transfers.<\/p>\n
Debtors paying in cash, would reduce the need for AMI to sell
\nassets in order to generate cash revenue for its target.<\/p>\n
Under the shareholders settlement program, former bank owners
\nwho became IBRA debtors are to surrender their assets or pay in
\ncash, to settle their debts.<\/p>\n
But asset transfers from the former bankers have been
\nproceeding slowly, and most had yet to start their cash
\nsettlements.<\/p>\n
According to Dasa, debtors demanded more flexible terms such
\nas an extension to the debt payment period from the current four
\nyears to 10 years.<\/p>\n
Several of IBRA's largest debtors should be settling their
\ndebts this year, according to the original shareholder settlement
\nprogram.<\/p>\n
In response to debtors requests, the government granted the
\nformer bankers more flexible debt payment terms, including
\ntolerating a payment period of up to 10 years.<\/p>\n
Dasa explained that the actual payment period depended on
\nnegotiations with each of the debtors.<\/p>\n
But he admitted that getting them to settle their debts before
\nthe 10 year limit was difficult, as everyone now knew about
\nIBRA's time limit.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-expects-rp-4t-in-salim-asset-sales-1447893297",
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"sponsor": "Okusi Associates",
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