Bakrie gets approval to merge its 4 banks

Bakrie gets approval to merge its 4 banks

JAKARTA (JP): The Bakrie Group has received government
approval to merge its four banks into a single institution with
combined assets of Rp 6 trillion (US$666 million).

The group said yesterday the Ministry of Finance has approved
its planned merger of Bank Nusa Internasional, Bank Nasional,
Bank Nasional Komersil and Bank Angkasa.

"The director general for financial institutions on behalf of
the minister of finance has issued a provisional approval for the
merger plan," said Arga Bharata, the spokesman for Bank Nusa
Internasional.

He said the merged bank, to be named Bank Nusa Nasional, would
have a paid-up capital of Rp 1 trillion and total assets worth Rp
6 trillion.

He said Bank Tabungan Pensiunan Nasional, another bank under
the Bakrie group, would operate as a subsidiary of the merged
bank.

Other private banks have informally disclosed plans to
consolidate.

Four private banks under the Nusamba Group -- Bank Duta, Bank
Umum Nasional, Bank Bukopin and Bank Tugu -- have recently agreed
to merge to create a new bank with combined assets worth Rp 21.2
trillion.

Bank International Indonesia and Bank Dagang Nasional
Indonesia, two of the country's largest private banks, have also
agreed to merge with Bank Tiara Asia, Bank Sahid Gajah Perkasa
and Bank Dewa Rutji, creating a bank with Rp 50 trillion in
assets.

A strengthened banking sector is one of the primary goals of
the International Monetary Fund-sponsored reform plan agreed to
by Indonesia to combat the economic crisis. (hen)