IMF urges IBRA to speed up asset sales<\/p>\n
JAKARTA (JP): International Monetary Fund (IMF) Asia Pacific
\ndeputy director Anoop Singh has once again called on the
\nIndonesian Bank Restructuring Agency (IBRA) to speed up the
\nrestructuring and disposal of its assets.<\/p>\n
Singh said on Friday that the measure was crucial to help
\nrevive market confidence in the economy.<\/p>\n
\"Now the priority is to accelerate the restructuring and
\ndisposal of assets under IBRA to attract foreign investment and
\nimprove market sentiments,\" he said following a meeting with
\nHouse of Representatives Speaker Akbar Tandjung.<\/p>\n
The IMF has repeatedly asked IBRA, which controls banking
\nassets worth US$66 billion, to speed up the disposal of its
\nassets and not to wait too long to get a higher price.<\/p>\n
The asset disposal rate at IBRA is relatively low at 2.5
\npercent compared to similar agencies in the region, including
\nSouth Korea's KAMCO with an asset disposal rate of 38 percent,
\nMalaysia's Danaharta (40 percent), and Thailand's FRA (78
\npercent).<\/p>\n
IBRA has been targeted to raise Rp 18.9 trillion (US$2.18
\nbillion) in cash this year to help finance the current state
\nbudget.<\/p>\n
The agency has so far only managed to raise around Rp 2.8
\ntrillion in cash.<\/p>\n
IBRA has said that it is planning to sell between 14 and 20
\ncompanies this year, some through initial public offerings (IPO).<\/p>\n
The agency sold its shares in the publicly listed auto giant
\nPT Astra International this year and launched an IPO for Bank
\nCentral Asia (BCA) this year.<\/p>\n
IBRA has said that it is planning to make a further divestment
\nin BCA, and to sell its shares in the publicly listed Bank Niaga
\nthis year.<\/p>\n
Elsewhere, Singh said that accelerating the implementation of
\nthe overall economic reform program was crucial to help revive
\ninvestors' confidence in the economy.<\/p>\n
He said that he had received a commitment from the government
\nto accelerate the implementation of key economic programs,
\nincluding bank and corporate restructuring and good corporate
\ngovernance.<\/p>\n
He also said that the current weakening of the rupiah was
\npartly due to the low market confidence in the economy.<\/p>\n
Since last month, the rupiah has been under strong pressure
\ndue to a combination of domestic political problems and the slow
\nprogress of the economic reform program.<\/p>\n
The rupiah is now hovering at around Rp 8,700 per U.S. dollar
\ncompared to the government target of Rp 7,000 for this year.<\/p>\n
The government has been criticized for dragging its feet in
\nthe implementation of the reform programs, agreed to together
\nwith the IMF.<\/p>\n
Singh said that macroeconomic development over the past six
\nmonths had been positive, and that the real challenge now was to
\nmaintain the positive growth.<\/p>\n
\"The key here is to accelerate the implementation of the
\neconomic reform program,\" he said.<\/p>\n
Singh arrived last week for a two-week visit to review the
\ncountry's economic reform program, and to help the government
\ndesign a new letter of intent (LoI).<\/p>\n
He said that the new LoI was expected to be finalized next
\nmonth, paving the way for the third disbursement of IMF money.<\/p>\n
The IMF agreed in January to provide the administration of
\nPresident Abdurrahman Wahid a total of US$5 billion to help
\nfinance the country's three-year economic reform program.<\/p>\n
The fund has so far disbursed $715 million in loans to the
\ncurrent administration.(rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/imf-urges-ibra-to-speed-up-asset-sales-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}