Astra sale puts IBRA under spotlight: Sri

JAKARTA (JP): The performance of the Indonesian Bank Restructuring Agency (IBRA) is in question amid market disappointment over the sale of its share in auto giant PT Astra International, economist Sri Mulyani said on Monday.

Sri said public expectations were for IBRA to raise Rp 17 trillion (US$2.27 billion) for the current 1999/2000 budget year ending March 31, but the Astra sale sparked doubts about whether the target would be met.

"The performance of IBRA is now in question," Sri said following a meeting with Minister of Finance Bambang Sudibyo and other senior government officials on the 1999/2000 state budget.

But she added that the results of the deal were not a surprise because an open bid usually resulted in a lower price than a transaction through a preferred bidder mechanism.

Sri is the secretary-general of the National Economic Council, which advises President Abdurrahman Wahid on economic issues.

IBRA sold its entire 39.5 percent stake in publicly listed Astra International last week to a consortium led by Singaporean auto distributor firm Cycle & Carriage Ltd. (CCL). With terms of Rp 3,700 per share, the deal raised about US$500 million.

But it was much lower than market expectations of about Rp 4,000 per share.

Equity analysts have said that CCL, which will be the largest individual shareholder with about 23 percent, should have paid a 25 percent premium for its controlling share of Astra.

The price was also lower than what the agency would have earned from Newbridge Capital and Gilbert Global Equity Partners, which was appointed as the preferred bidder last December. The U.S. consortium agreed to pay Rp 3,750.

The deal fell through following widespread protests, including from then Astra president Rini Soewandi.

IBRA chairman Cacuk Sudarijanto said last week the deal with CCL was the "best price" IBRA could obtain.

Separately, Bambang Sudibyo said on Monday the state budget would not be affected if IBRA failed to meet its target because the budget was already running at a surplus, particularly due to higher than expected international oil prices.

"There's no problem if IBRA could not meet its target," Bambang said following a meeting at the House of Representatives.

Bambang earlier said that the higher oil price caused the 1999/2000 state budget revenue to increase 11.7 percent versus a spending increase of 11.6 percent, resulting in an expected budget surplus of about Rp 133.4 billion.

Sri agreed the Astra transaction would not affect the state budget because of the surplus from oil revenue.

The government assumed an oil price of about $10.50 per barrel, but the price has hovered around $20 per barrel during most of the period.

Meanwhile, chairman of the Capital Market Supervisory Agency (Bapepam) Herwidiyatmo said on Monday that CCL was not obliged to carry out a tender offer following its acquisition of shares in Astra.

He said the newly issued ruling on tender offers did not apply to IBRA's shares in Indonesian companies.

He said IBRA received Astra's share "by default" as payment from bank owners for their debts to the government.

Bapepam issued the ruling in the middle of this month to supersede a previous ruling.

Herwidiyatmo said the new ruling stipulated that a new majority shareholder with more than a 20 percent stake in a listed company must announce a tender offer. It obliges the new majority owner to purchase any remaining shares offered by the public, at the latest two days after the acquisition transaction is completed.(rei)