Bank Mandiri's plan illogical

Bank Mandiri's plan illogical

From Rakyat Merdeka

The President Director of Bank Mandiri has been quoted by the mass media as saying that Bank Mandiri will join the tender for the divestment of the shares of BCA and Bank Niaga, which is said to expand the banks' capability of funding base retailing and expanding the consumer sector.

As an ordinary citizen, this plan has puzzled me as it seems to defy logic. As is known, BCA and Bank Niaga are better than Bank Mandiri in practically all areas, including management and human resources. It is public knowledge what a government bank is like in terms of capability and performance.

What is logical is that BCA/Bank Niaga should acquire Bank Mandiri so that Bank Mandiri can learn from these two banks. At present it is better for Bank Mandiri to concentrate on its planned initial public offering (IPO), which is scheduled to be held in October. It is advisable that Mr. Nelloe should set things right before facing competition.

HARRY SAPUTRA

Jakarta