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