Ary Suta still IBRA's chief

Ary Suta still IBRA's chief

JAKARTA (JP): I Putu Gede Ary Suta remains chairman of the
Indonesian Bank Restructuring Agency (IBRA) in the new structure
under the management of the state ministry for state enterprises,
the state minister said.

"Right now we have no thoughts of replacing the chairman of
IBRA," Laksamana Sukardi said on Monday.

He was speaking on the sidelines of a ceremony transferring
the responsibility for overseeing IBRA from the Ministry of
Finance to the State Ministry of State Enterprises.

Aside from IBRA, Minister of Finance Boediono also handed over
responsibility for state-owned enterprises to Laksamana. The
ceremony was witnessed by Coordinating Minister for the Economy
Dorodjatun Kuntjoro-Jakti.

"We first want to see how we well we work together in
achieving the government's targets," Laksamana told reporters.

The government expects to receive Rp 6.5 trillion (about
US$714.3 million) and Rp 27 trillion in proceeds respectively
from the privatization of state enterprises and the sale of
assets under IBRA, to cover the 2001 state budget deficit of 3.7
percent of GDP.

Next year, the two sources of funds are expected to raise Rp
6.5 trillion and Rp 35.3 trillion respectively for the 2002 state
budget deficit of 2.5 percent of GDP.

In a separate ceremony held immediately after the first,
Laksamana appointed a secretary for the state minister and one of
the planned five deputies to work under him, including an IBRA
chairman.

Laksamana appointed Bacelius Ruru as the ministry's secretary
and Muwardi P. Simatupang as the ministry's deputy for state
enterprises.

Bacelius, who is also chairman of the Jakarta Initiative Task
Force (JITF), said that not all the officials were appointed at
once, as President Megawati Soekarnoputri needed to assess
carefully the candidates.

He confirmed that Ary Suta would not be replaced.

In light of the recent terrorist attacks on the United States,
the government would need to revise its targets and methodology
for the privatization of state enterprises, Laksamana said.

"The recent drastic developments in external economies has
forced us to reassess the appetites of investors," he said,
explaining that the government would need to reassess its target
investors, whether to go for global "Wall Street" investors or
turn to regional investors.

Laksamana also said that the government should reassess the
methodology for the divestment of shares in state companies,
whether by a placing with strategic investors, or through the
stock market..(tnt)