Bambang's consortium to pay Summa's debts

JAKARTA (JP): President Soeharto's son, Bambang Trihatmodjo and Johannes B. Kotjo the likely new owners of the assets of the defunct Bank Summa issued a joint statement that they would repay the Bank's outstanding debts within two months.

The two intend to purchase the assets of the dissolved Bank Summa through their consortium PT Bhakti Karya Indah Permai (BKIP).

Johannes B. Kotjo said in Jakarta yesterday that the company would pay off the bank's debts of around Rp 600 billion (US$247.62 million) to the central bank and other financial institutions before the due date in two months.

"We were given two months to pay off the debts, but we will probably pay the debts before the two months is up," Johannes said.

He said that his company would not sell it's assets to repay the debts, but instead would make major efforts to induce the consolidated bank's debtors to repay their debts which amount to some Rp 250 billion.

The company will develop the other productive assets of the bank to improve it's liquidity, he said.

BKIP has recently been approved to take over the remaining assets of Bank Summa, which was suspended in 1992 for its failure to meet financial obligations.

Although many of the bank's assets have been sold to repay the depositors' money, it's debts to the central bank and other local financial institutions remain outstanding, amounting to a total of Rp 600 billion.

Johannes has set a target for his company to be able to recover at least 50 percent of outstanding debts paid by the bank's debtors, with the help of the related government agencies.

Some of the most valuable assets of Bank Summa are the 45- hectare Darmo Satellite Town housing complex in Surabaya (East Java), and the Jakarta International Trade Center and Paranusa Sari Garden Hotel, both in Jakarta.

BKIP has approved its subsidiary commercial property operator Bhuwanatala Indah Permai, to buy 36 percent of PT Darmo Satellite Town shares. (02)