Bank Indonesia to sell its 13.11% stake in BPS

JAKARTA (JP): The central bank, Bank Indonesia, plans to sell its 13.11 percent stake in publicly listed Bank Papan Sejahtera (BPS).

BPS's president, Al Njoo, said yesterday that the central bank had given BPS' other shareholders the option of buying its stake.

"The existing majority shareholders will proportionally acquire BI's stake in BPS," he said.

"The divestment deal is expected to be made within the next two weeks," he said after BPS's shareholders' meeting.

Njoo said the sale was in line with the central bank's commitment to reducing its shares in commercial banks.

Bank Indonesia has a stake in several commercial banks but has pledged to gradually divest them to avoid a conflict of interest given its supervising role.

Njoo said that Bank of International Settlement (BIS) had suggested that central banks worldwide divest their stakes in other banks.

He said Bank Indonesia's BPS shares were worth about Rp 9 billion (US$3.75 million).

As of May 1997, shareholders that owned more than 5 percent of BPS were PT Tunasmas Paduarta (19.80 percent); Bank Indonesia (13.11 percent); Chase Manhattan of Singapore (9.39 percent); Somers Nominees (Far East) Ltd ( 8.82 percent); SBC Warbung Hongkong (nominees) Ltd (8.44 percent); PT Asuransi Jiwa Bersama Bumiputera 1912 (6.80 percent); PT REI Sewindu (6.48 percent); PT Asuransi Jiwasraya (5.69 percent) and the public (21.47 percent).

Al Njoo also said that BPS, which lends most to the housing and property sectors, planned to launch five-year bonds worth Rp 300 billion in September this year.

He said the bonds would carry a fixed interest rate of about 15 percent.

He said Bahana Securities and Pentasena Securities would be the managing underwriters of the bonds issuance.

"Proceeds from the bonds issuance will finance Bank Papan's housing credit," he said after a shareholders' meeting yesterday.

He also said that BPS would launch Indonesia's first ever mortgage-backed securities worth around $100 million through the Jakarta Stock Exchange in September.

He said the mortgage-backed securities were to help the bank minimize financial risks in the property sector.

He said the bank expected to post net profit of about Rp 10 billion in 1997, up 13 percent from Rp 8.8 billion in 1996.

He said BPS' profit dropped 6 percent to Rp 8.8 billion in 1996, from Rp 9.4 billion in 1995 because housing loan payments were increasingly in arrears.

Al Njoo said BPS expected to book total assets of Rp 2 trillion in 1997, up from Rp 1.3 trillion as of December 1996. (09)