Anwar OKs Temasek to bid for Permata

Tony Hotland, Jakarta

Bank Indonesia deputy senior governor Anwar Nasution has said that he sees no reason why Temasek Holdings should not be allowed to bid for a majority stake in Bank Permata.

"Why not (let Temasek acquire the bank) if they make a better bid than the other investors. What's important is how to fix our banking situation," he told reporters after a meeting with lawmakers on the 2005 draft state budget on Tuesday.

He said there were no reason to discriminate against Temasek over its foreign status and the fact that it already owned majority stakes in two of the country's large banks.

"For me, it can be anyone who's able improve Bank Permata, who has the money and the expertise to fix the bank's performance. You can see how Temasek fixed Danamon and BII. Those banks are performing better now," Anwar said.

He added that local investors might lack funds and expertise, and therefore the government should not be depending on them if it wanted to reform the corporate culture of the country's banks.

The government plans to sell 71 percent of its total 91.3 percent stake in Permata. This stake is now currently managed by PT Perusahaan Pengelolaan Aset (PPA) under the auspices of the Ministry of Finance.

Anwar's statement contradicts earlier statements by several members of the House finance commission, who had said they would prefer a local investor to buy Permata.

The legislators have suggested that the government prioritize local banks rather than giving foreign banks the opportunity to bid, arguing that this would encourage local banks to become global banking players.

Temasek, an investment arm of the Singapore government, is among the 19 investors bidding for Permata via Bank Danamon and Bank Internasional Indonesia (BII).

The company bought 62 percent of the government's stake in Danamon through the Asia Financial Holdings consortium, and 51 percent in BII via Sorak Financial Holdings consortium.

A number of local banks, such as BNI, Bank Central Asia, Bank Panin and Bank Artha Graha may join in the bidding for Permata.