Bank Nasional to merge with Perniagaan

JAKARTA (JP): Bank Nasional, a banking unit under the Bakrie group, will merge with Bank Perniagaan, a 100 percent owned subsidiary of the former PT Elang Realty, by the end of this year.

Chief commissioner of PT Bakrie Land Development who is also president PT Bakrie Capital Indonesia, Bambang Irawan Massi'e, said yesterday the central bank had approved the merger.

"Now we are waiting for approval from the ministry of finance," he said.

In March this year, PT Bakrie Capital bought 70 percent of property developer PT Elang Realty for Rp 150 billion (US$62.50 million) and renamed it PT Bakrie Land Development.

Bambang said Bakrie Capital Indonesia also bought Bank Perniagaan, for Rp 200 billion.

"The total value of the acquisition is Rp 350 billion," he said.

"The name of the merged bank will be Bank Nasional," he said yesterday.

He said the merge was expected to increase Bank Nasional's assets to about Rp 3.5 trillion.

As of March 1997, Bank Nasional's total assets were Rp 1.2 trillion and Bank Perniagaan's Rp 1 trillion.

Bakrie Capital is a majority shareholder in Bank Nusa. (09)