Bambang to buy Bank Summa

JAKARTA (JP): President Soeharto's son Bambang Trihatmodjo and businessman Johannes Kotjo are set to buy most of dissolved Bank Summa's assets through their consortium, PT Bhakti Karya Indah Permai (BKIP).

BKIP said it signed an agreement Tuesday to take over the bank's assets through the bank's appointed liquidation team. The agreement ends a five-year dispute over the bank's assets.

Assets to be bought include Darmo Satellite Town, a 53-hectare housing and commercial development in Surabaya in East Java, the Jakarta International Trade Center on 44 hectares in Kemayoran, East Jakarta, and Jakarta's Peranusa Sari-Garden Hotel.

"Bank Indonesia has approved the acquisition," the company said.

The company said it would cooperate with other investors to operate the properties.

PT Bhuwantala Indah Permai Tbk, a commercial property operator, has agreed to buy 36 percent of PT Darmo Satellite Town which operates a 45-hectare housing complex in Darmo and owns an eight-hectare plot in Surabaya.

Bhuwantala, also controlled by Bambang and Kotjo, will turn the eight-hectare site into a commercial area.

Bank Summa, formerly owned by William Soeryadjaya, was suspended in 1992 for failing to meet financial obligations.

Much of the bank's assets were sold to repay depositors' funds, but the bank's debts to the central bank and other local financial institutions are unpaid .

The company did not say how much Bank Summa's remaining assets were worth but analysts put it at about Rp 950 billion (around US$395 million), mostly in the form of loans.

Many local businessmen had earlier proposed buying the bank's remaining assets, including the Darmo housing complex and other properties.

One takeover bid was made by Bambang's sister, Siti Hardiyanti Rukmana in 1994, but she withdrew her offer for undisclosed reasons. (02)