IBRA to issue bonds to bail out ailing companies<\/p>\n
SINGAPORE (Agencies): The chief of the Indonesian Bank
\nRestructuring Agency (IBRA) said Tuesday top Indonesian ministers
\nhave given \"verbal\" approval to issue bonds to bail out 48
\ncompanies indebted to IBRA.<\/p>\n
\"About the 48 enterprises under IBRA, we got verbal or basic
\napproval from Finance Minister Bambang Sudibyo and Coordinating
\nMinister for Economy, Finance and Industry Kwik Kian Gie (for)
\nstate enterprise recapitalization,\" IBRA chairman Cacuk
\nSudarijanto said at a news briefing here.<\/p>\n
He was here to attend a forum of the Singapore Chinese Chamber
\nof Commerce and Industry.<\/p>\n
The 48 companies owed IBRA some Rp 15 trillion (US$2 billion),
\nhe said.<\/p>\n
To speed up debt restructuring, the government will issue
\nbonds through state enterprises, with the companies using the
\nproceeds to repay their debts to the banks, he said.<\/p>\n
The restructuring of 48 state companies together with around
\n160,000 small and medium companies must be completed in the next
\ntwo quarters.<\/p>\n
Once the restructuring is completed, he said IBRA will end up
\nhandling about 1,000 large debtors.<\/p>\n
The IBRA chief also defended a decision to replace a key
\nofficial, saying the move was aimed at speeding up Indonesia's
\nasset disposal program.<\/p>\n
This week, IBRA had to complete its bank recapitalization
\nplans, and ensure the successful initial public offering next
\nmonth of one of the Indonesian banks, PT Bank Central Asia, he
\nsaid.<\/p>\n
IBRA has announced plans to sell within the year equity in at
\nleast 20 companies, and a good portion of 1,105 properties or
\nbank offices, in a bid to raise $5.1 billion by December for the
\nIndonesian budget. However, he said it will only sell 10 to 15
\npercent of Bank Central Asia instead of its initial target of
\nmore than 30 percent if the price is not high enough, Cacuk said.<\/p>\n
He added IBRA will hold an international roadshow visiting
\nSingapore, London, New York and four other cities in April.<\/p>\n
Cacuk earlier said in a bid to ease its hefty workload, IBRA
\nplans to farm out the job of restructuring loans valued at
\nbetween Rp 5 billion (about $667,000) and Rp 50 billion to
\nprivate banks, freeing up IBRA officials to concentrate on
\nrestructuring larger loans.<\/p>\n
Agency officials say the IBRA will seek to outsource some
\nrestructuring work to several banks and pay them a fee for
\nmanaging the loans as well as a percentage of loans restructured.<\/p>\n
Cacuk said IBRA would seek to sell stakes in companies in the
\nagribusiness, consumer goods, trading and property sectors. IBRA
\nplans to sell the stakes through a mixture of initial public
\nofferings and private placements.<\/p>\n
IBRA has previously said that around nine of the 20 companies
\nwill be from the Salim Group.<\/p>\n
IBRA's efforts to sell assets got a boost last week when it
\nsold 39.5 percent of its stake in auto maker PT Astra
\nInternational to a consortium led by Singapore's Cycle & Carriage
\nLtd. The sale is expected to spark other sales to foreign
\ninvestors.<\/p>\n
In addition, Cacuk said IBRA's short-term priorities include
\nselling off stakes in state-owned companies and initiating
\ngovernment-wide restructuring of state companies.<\/p>",
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