Salim agrees to pledge more assets to IBRA<\/p>\n
Dow Jones, Jakarta<\/p>\n
The Salim Group, formerly Indonesia's richest business
\nconglomerate, agreed to pledge more assets to the Indonesian Bank
\nRestructuring Agency if the proceeds from sales of the assets
\nthat it has already pledged to the agency fall short of its debts
\nto the government, IBRA Chairman Syafruddin Temenggung said
\nThursday.<\/p>\n
The Salim group owes 53.2 trillion rupiah (US$5.8 billion) to
\nthe government after the government bailed out PT Bank Central
\nAsia, which was ravaged by the 1997 Asian financial crisis. BCA
\nwas Salim's financial crown jewel before the government took over
\nthe bank in 1998.<\/p>\n
Salim has pledged over 100 companies to IBRA to repay the
\ndebts. However, there are concerns among legislators that the
\nsales of those assets won't generate the required Rp 53.2
\ntrillion because the value of the assets has been declining
\nsharply since Salim pledged them in 1998.<\/p>\n
The Indonesian parliament has pushed IBRA to seek more assets
\nfrom Salim to meet the shortfall.<\/p>\n
IBRA has also found out that the value of the companies that
\nSalim had pledged to it was lower than the value it had
\nrepresented to the agency. IBRA calculated the difference was Rp
\n960 billion, which Salim must pay in cash. Salim has paid Rp 230
\nbillion of this so far.<\/p>\n
Syafruddin said the Salim group has agreed to complete the
\nrepayment of the remaining Rp 730 billion by the middle of
\nOctober.<\/p>\n
IBRA was established in January 1998 to restructure ailing
\ndomestic banks and recover around Rp 600 trillion of funds the
\ngovernment has spent to bailout local banks.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/salim-agrees-to-pledge-more-assets-to-ibra-1447893297",
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"sponsor": "Okusi Associates",
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