Bambang to take over Summa's assets

Bambang to take over Summa's assets

JAKARTA (JP): Bank Indonesia, the central bank, confirmed
yesterday that President Soeharto's son Bambang Trihatmodjo and
Johannes Kotjo have formally proposed to take over the remaining
assets of the dissolved Bank Summa.

The central bank said that negotiations on the proposed
purchase of the assets by Bambang and his partner are still
underway.

Bank Indonesia and the liquidation team of Bank Summa are
still assessing the proposal, the central bank said in statement.
It did not disclose details of the takeover plan, however.

A thorough assessment on the takeover proposal is needed so
that the offer will not create new problems, the statement said.

Bank Summa, formerly owned by William Soerjadjaja, was
suspended in 1992 for its failure to meet financial obligations.
Large parts of the bank's assets had been sold to repay
depositors' money. But the bank's debts to the central bank and
other local financial institutions, amounting to around Rp 605
billion (US$275 million) remain unpaid.

The central bank did not explain the latest value of Bank
Summa's remaining assets but analysts put it at around Rp 950
billion, mostly in the form of loans.

A number of local businessmen earlier proposed to buy the
bank's remaining assets, including a large housing complex in
Surabaya, East Java, and a number of properties as well as a
modern hospital in Jakarta.

One of the takeover bids was made by Bambang's sister Siti
Hardiyanti Rukmana in 1994 but she later withdrew her offer for
undisclosed reasons.

Bambang said on Wednesday that he and his partner are ready to
take over both the assets and liabilities of Bank Summa, which is
now in the process of liquidation.

"We are only waiting for the central bank's approval," he was
quoted by Merdeka daily as saying. He added that all matters
regarding the valuation of the bank's assets and liability had
been settled. (hen)