ANZ, Commerce still interested in Niaga stake

Dadan Wijaksana, The Jakarta Post, Jakarta

Australia's ANZ Banking Group Ltd. and Malaysian financial group Commerce Asset-Holding Group Bhd. are still interested in bidding for the government's controlling stake in medium-sized Bank Niaga, according to Chairman of the Indonesian Bank Restructuring Agency (IBRA) Syafruddin Temenggung.

Syafruddin said on Wednesday he had received letters from the two potential investors stating their interest in the publicly listed bank.

"Bidders involved in the previous tender are still allowed to participate (in the new bidding process). In fact, I have received letters from ANZ and Commerce expressing their interest," he told reporters.

The government canceled the strategic sale of its 51 percent stake in Bank Niaga earlier this month because the bids submitted by two final bidders -- consortia each led by ANZ and Commerce Asset-Holding -- were considered very low, at Rp 20 to Rp 30 per share, compared with a market price of about Rp 70 at the time.

The Financial Sector Policy Committee (FSPC), which groups several senior economic ministers and has the final say on the government asset sale program, then asked IBRA to come up with a new sale strategy to obtain more in proceeds.

IBRA, which holds the Bank Niaga stake and other assets taken over by the government from the banking sector in the late 1990s, then came up with a new scheme by increasing the stake to be sold to up to 71 percent, with the first 20 percent to be sold via the stock market.

The government controls a 97.15 percent stake in Bank Niaga, while the remaining shares are held by the public.

The agency, which has yet to decide on the sale mechanism for the remaining 51 percent stake, is determined to complete the whole sale process by mid-September.

The proceeds from the sale will help finance the 2002 state budget deficit.

The sale program is also seen as an acid test of the government's commitment to implementing the reform program, particularly bank restructuring initiatives.

Elsewhere, Syafruddin said that the agency was scheduled to meet with House of Representatives Commission IX on financial affairs at a hearing to seek approval for the new Bank Niaga sale plan.

Apart from Niaga, the government also plans to sell three other banks this year, including Bank Danamon, Bank Lippo and Bank Mandiri.

Any delay in the sales program of these assets would hamper IBRA's efforts to raise more than Rp 35 trillion in cash this year, the proceeds of which will be used partly to help plug the state budget deficit, projected at some Rp 42 trillion.