Merger of Bakrie banks to be finalized in 6 months<\/p>\n
JAKARTA (JP): The planned merger of Bakrie Group's three banks
\nwill occur in the next six months, according to Aburizal Bakrie,
\nthe chairman of the group.<\/p>\n
Aburizal said the merger of Bank Nasional, Bank Perniagaan and
\nBank Tabungan Pensiun Nasional (BTPN) would be part of
\nconsolidation measures to cope with the impact of the monetary
\nturmoil.<\/p>\n
\"We are still evaluating the merger process and hopefully it
\nwill be finalized within six months,\" he said here yesterday.<\/p>\n
Aburizal said the group had not yet determined which bank
\nwould survive the merger.<\/p>\n
The Bakrie Group operates five banks: Bank Nusa, Bank
\nNasional, Bank Perniagaan, BTPN and Maybank Nusa, a joint venture
\nbetween Bank Nusa and Malaysian Maybank.<\/p>\n
Bank Nasional announced in March this year that it would
\nmerge with Bank Perniagaan by the end of the year. Bank
\nPerniagaan was previously owned by PT Elang Realty.<\/p>\n
\"The name of the merged bank will be Bank Nasional,\" an
\nexecutive of the Bakrie Group said.<\/p>\n
After the merger, assets of Bank Nasional will increase to
\nabout Rp 3.5 trillion.<\/p>\n
PT Bakrie Capital Indonesia, a subsidiary of the Bakrie Group,
\nbought 70 percent of debt-ridden property developer PT Elang
\nRealty for Rp 150 billion (US$62.5 million) in March this year
\nand renamed it PT Bakrie Land Development.<\/p>\n
Following the acquisition, Bakrie Capital Indonesia also
\nbought Bank Perniagaan for Rp 200 billion.<\/p>\n
Aburizal, also chairman of the Indonesian Chamber of Commerce
\nand Industry, said yesterday that the central bank should
\npublicly announce soon which banks should merge as part of the
\nrescue plan to solve their financial difficulties.<\/p>\n
\"I believe there won't be any more closures by the
\ngovernment,\" he said.<\/p>\n
The government closed 16 banks early this month as part of
\nfinancial reforms in a IMF-led bailout package to restore the
\ncountry's economy. The liquidations included Bank Andromeda,
\nwhich is 25 percent owned by President Soeharto's second son
\nBambang Trihatmojo.<\/p>\n
\"The important thing now is that weak banks and strong ones
\nmerge in order to improve their capital structure,\" Aburizal
\nsaid.<\/p>\n
Analysts and economists said mergers in the banking system
\nwere necessary to improve their performance in the face of fierce
\ncompetition in the globalization era.<\/p>\n
In a related development, reports said banks under the
\nTirtamas Group, the Risjad Salim Group and the Ramako Group would
\nmerge in an effort to improve their performance.<\/p>\n
\"Bank Risjad Salim will merge with Bank Utama,\" Benny Santoso,
\na director of the Salim Group, said after signing the purchase of
\n19 percent of PT Bank Danamon International on Monday.<\/p>\n
\"The merger will be finalized by the end of the year,\" he
\nsaid.<\/p>\n
Three banks under the Tirtamas Group -- Bank Papan Sejahtera,
\nBank Pelita and Bank Kredit Asia -- are expected to merge by the
\nend of the year. The Tirtamas Group is controlled by Hashim S.
\nDjojohadikusumo.<\/p>\n
The Ramako Group, which owns Bank IFI and Bank Asta, are set
\nto merge later this year as part of the group's move to
\nstrengthen its banking business. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/merger-of-bakrie-banks-to-be-finalized-in-6-months-1447893297",
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