Bank Papan plans rights issue

JAKARTA (JP): Publicly listed Bank Papan Sejahtera plans to issue rights shares soon to increase its capital so it can remove itself from the Indonesian Bank Restructuring Agency's (IBRA) supervision.

Bank Papan president Al Njoo said in a statement yesterday the bank would also develop new saving schemes to attract more public funds to fuel the bank's operations.

The bank additionally plans to merge with other institutions to strengthen its capital and operations.

"I'm confident that with these efforts, Bank Papan will soon be able to remove itself from the IBRA list," Al Njoo said.

Bank Papan, controlled by Hashim Djojohadikusumo's Tirtamas Group, is among 32 private commercial and provincial development banks currently under IBRA supervision.

These banks, according to IBRA, have liquidity credits from Bank Indonesia equivalent to more than 200 percent of their capital and have a capital adequacy ratio of below 5 percent. (rid)