IBRA to sell Salim assets to meet 2001 target<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nsaid on Monday it planned to sell assets of the giant Salim Group
\nto meet the agency's 2001 budget sales target of Rp 27 trillion
\n(US$3.1 billion).<\/p>\n
\"Salim's assets in various businesses like plantations,
\nproperties, and hotels remain our mainstay for IBRA's revenue,\"
\nIBRA chairman Cacuk Sudarijanto was quoted as saying by news
\nagency Antara after attending the presentation of the 2001 state
\nbudget draft at the House of Representatives.<\/p>\n
In the 2001 draft the government stipulated a sales target of
\nRp 27 trillion for IBRA, higher than the agency's sales target of
\nRp 18.9 trillion this year.<\/p>\n
The current budget year, however, only runs from April to
\nDecember 2000, as the government adjusted from a March-April
\nbudget year to a calender based budget year.<\/p>\n
Cacuk expressed his optimism that IBRA would meet its next
\nsales target, estimating that the biggest contribution would come
\nfrom the agency's Asset Management Credit (AMC) division.<\/p>\n
The AMC division is in charge of restructuring non-performing
\nloans of banks IBRA has taken over.<\/p>\n
The Salim Group has handed over to IBRA majority interest in
\n107 companies as part of the debt settlement of its affiliated
\nBank Central Asia (BCA). IBRA maintains the companies under the
\nholding company PT Holdiko Perkasa.<\/p>\n
Holdiko comprises, among others, 25 property firms, 24 palm
\nplantations, 10 food & consumer product firms, nine oleochemical
\nfirms, five coal & granite firms, four plywood firms, four sugar
\nfirms, and one communication company.<\/p>\n
Salim and IBRA initially valued Holdiko assets at Rp 50
\ntrillion, but former Coordinating Minister for the Economy
\nFinance and Industry, Kwik Kian Gie, argued they were only worth
\nRp 20 trillion.<\/p>\n
The agency expects to sell the assets over the next four years
\nthrough initial public offerings, direct placements and auctions.<\/p>\n
To meet IBRA's 2001 sales target, Cacuk said, the agency also
\nwould rely on its Asset Management Investment (AMI) division and
\nsales of nationalized banks.<\/p>\n
IBRA's assets, he said, would be sold retail instead of in
\npackages, because companies sold individually might yield higher
\nproceeds.<\/p>\n
According to him, the agency had already achieved Rp 12
\ntrillion in revenues through September.<\/p>\n
He said that out of IBRA's 21 largest debtors, 71.5 percent of
\ntheir total outstanding debts had been restructured.<\/p>\n
\"We've signed a memorandum of understanding with these
\ndebtors, and it (the debt restructuring) has now reached 71.5
\npercent, so we have already met our target as set out in the
\nLetter of Intent (LoI),\" Cacuk said of the LoI signed between the
\ngovernment and the International Monetary Fund (IMF).<\/p>\n
Under the agreement with the IMF, 70 percent of the debtors'
\noutstanding debts under IBRA must be restructured by
\nOctober.(bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ibra-to-sell-salim-assets-to-meet-2001-target-1447893297",
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