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)