PPA plans to sell Bank Permata in October<\/p>\n
Rendi A. Witular
\nThe Jakarta Post
\nJakarta<\/p>\n
PT Perusahaan Pengelola Aset (PPA), a new entity that has
\nbeen established under the auspices of the Ministry of Finance
\nfor the purpose of administering banking assets transferred from
\nthe now-defunct Indonesian Bank Restructuring Agency (IBRA),
\nplans to resume the sale of the government's 71 percent stake in
\nBank Permata in October.<\/p>\n
PPA president Muhammad Syahrial said the PPA was expected to
\ncomplete the review of its overall business plan in September, to
\nbe followed by the sale of various assets under its management.<\/p>\n
"We plan to start executing our programs starting in September
\nor October, including the sale of the government's stake in Bank
\nPermata," said Syahrial during a press conference on Thursday.<\/p>\n
The government plans to off-load a 51 percent stake in Bank
\nPermata through a strategic sale, with an additional 20 percent
\nto be sold via block sale and drip sale mechanisms on the stock
\nmarket.<\/p>\n
Bank Permata resulted from the merger of five troubled banks
\nrescued by the government in the wake of the late 1990s financial
\ncrisis.<\/p>\n
The government, which currently holds a 97.2 percent stake in
\nthe bank, has been trying to sell the bank over the past year but
\nfaced obstacles in completing the program.<\/p>\n
The main problem is an ongoing legal dispute over a huge
\namount of funds held by the bank.<\/p>\n
Syahrial said that PPA would wait for the legal dispute to be
\nresolved first before selling the stake.<\/p>\n
He also said that the company would seek renewed approval from
\nthe House of Representatives for the plan.<\/p>\n
IBRA transferred various forms of assets valued at Rp 11.68
\ntrillion (US$1.37 billion) to PPA after the former was wound up
\nin February. Some Rp 5.13 trillion of the assets are in the form
\nof shares in various entities; Rp 3.69 trillion in the form of
\nclaims; Rp 2.16 trillion in the form of property assets; Rp 674
\nbillion the form of loans; and Rp 17 billion in the form of
\ncommercial paper.<\/p>\n
The assets it manages are categorized as "free and clear" in
\nterms of legality.<\/p>\n
IBRA's assets that are not free and clear will be managed
\nfirst by the government's clearance team before being transferred
\nto PPA. The market value of these assets stands at around Rp 4.3
\ntrillion.<\/p>\n
PPA vice president Raden Pardede said that as agreed by the
\ngovernment, PPA would obtain 30 percent of the profits produced
\nby the sale of the assets.<\/p>\n
"PPA will take 30 percent of the margin, while the remaining
\n70 percent will be transferred to the government," said Raden.<\/p>\n
The company, which will have a lifespan of five years, would
\ntransfer the proceeds from the asset sales to the government
\nevery six months, said Raden.<\/p>\n
The government has allocated Rp 300 billion from the state
\nbudget to finance the operations of PPA.<\/p>\n
Syahrial said the company would return the funds to the state
\nbefore the end of the year, with these being taken from part of
\nthe proceeds raised by asset sales.<\/p>",
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