IBRA to sell more BII shares later this month: Syafruddin<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
An additional 20 percent stake in Bank Internasional Indonesia
\n(BII) will be sold later this month through a block sale,
\nfollowing last month's 51 percent stake sale in the bank, the
\nIndonesian Bank Restructuring Agency (IBRA) said on Wednesday.<\/p>\n
IBRA chairman Syafruddin Temmenggung was quoted by Dow Jones
\nas saying there would be more details on the plan available after
\nthe official signing of a sale and purchase agreement (SPA) with
\nSorak consortium -- the winning bidder of the 51 percent stake.
\nThe signing is expected to take place on Friday.<\/p>\n
Sorak consortium, led by South Korea's Kookmin Bank and
\nSingapore's Temasek Holdings Pte. Ltd, beat Panin consortium in
\nthe auction.<\/p>\n
The sale reduced IBRA's ownership in the bank to 42.7 percent,
\nwith the remainder in the hands of private investors.<\/p>\n
BII's sale program forms part of IBRA's goal to strengthen the
\nbanking sector while also generating proceeds for financing the
\nbudget deficit. BII is one of the country's top-ten banks,
\nboasting assets more than Rp 36 trillion (US$4.26 billion) and a
\ntotal 1.1 million customers.<\/p>\n
In addition to BII, IBRA has also sold three local banks in
\nthe past two years, namely Bank Central Asia, Bank Niaga and Bank
\nDanamon.<\/p>\n
A consortium led by Temasek was the one that bought a 51
\npercent stake in Danamon.<\/p>\n
Syafruddin expected to rake in about Rp 2.5 trillion from the
\nauction of a total 71 percent stake in BII.<\/p>\n
Less than two months away, the agency is now pressing ahead
\nwith its asset-sale programs in a bid to meet a full-year target
\nof Rp 26 trillion.<\/p>\n
As of October, Syafruddin said some Rp 16 trillion in cash had
\nbeen distributed to state coffers, around Rp 10 trillion short of
\nthe target.<\/p>\n
Syafruddin is optimistic the agency can meet the target.<\/p>\n
\"Just relax: We still expect Rp 2.5 trillion from BII, while
\nthere are also other sale programs. Hopefully, we can make it,\"
\nhe said.<\/p>\n
Asked about next year's Rp 5 trillion target, as stated in the
\n2004 state budget, Syafruddin said that, while admitting to never
\nhaving been consulted about the figure, the agency would do its
\nutmost to meet it.<\/p>\n
He said that up to now, IBRA had never missed a target, even
\nonce.<\/p>",
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