Mandiri set for 2nd BOD reshuffle in 7 months<\/p>\n
Soraya Permatasari, Bloomberg\/Jakarta<\/p>\n
PT Bank Mandiri, Indonesia's largest lender, may have its board
\nof directors shuffled at a shareholders' meeting on Dec. 21,
\nseven months after the government replaced its management
\nfollowing a lending probe.<\/p>\n
The government, which owns 69 percent of the lender, proposed
\nthe plan for a change in management on Nov. 30, Mandiri spokesman
\nEkoputro Adijayanto said in a telephone interview in Jakarta on
\nWednesday.<\/p>\n
\"They didn't say why they want the management change to be
\nincluded in the agenda for the shareholders' meeting,\" he said.<\/p>\n
The replacement plan comes at a time when the lender is
\nplanning to set up a company to manage and sell bad loans, which
\nrose to 25 percent of its total lending in the third quarter from
\n7.5 percent a year earlier. The government overhauled management
\nat the bank in May after the attorney-general started a probe
\ninto Rp 1 trillion (US$101 million) of loans at Mandiri.<\/p>\n
The government replaced Bank Mandiri's President Director
\nE.C.W. Neloe with Agus Martowardojo, who was moved from PT Bank
\nPermata, Indonesia's seventh-largest lender.<\/p>\n
Non-performing loans at Jakarta-based Bank Mandiri rose after
\nthe central bank, Bank Indonesia, tightened rules on loan
\nclassification this year. Indonesia is cleaning up its banking
\nindustry as it tries to recoup Rp 450 trillion it spent to rescue
\nbanks after the 1997 Asian financial crisis.<\/p>\n
Mandiri, which means self-reliance in the Indonesian language,
\nwas formed by merging four state banks -- PT Bank Bumi Daya, PT
\nBank Dagang Negara, PT Bank Ekspor Impor Indonesia and PT Bank
\nPembangunan Indonesia -- in July 1999.<\/p>",
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