'Bank Papan Sejahtera should retain housing role': Bank Indonesia chief

JAKARTA (JP): Bank Indonesia (central bank) Governor J. Soedradjad Djiwandono wants the new majority shareholder of the publicly listed Bank Papan Sejahtera (BPS) not to change the bank's core business.

He said that BPS, which is partly owned by the central bank, should maintain its operational status as the main provider of loans for the construction of medium-scale housing.

"The central bank will also closely monitor the operation of BPS so that it will not be used only by certain groups of people," Soedradjad said over the weekend. He was referring to the widely reported change in the majority shareholding of the bank, which is listed on the Jakarta and Surabaya stock exchanges.

Jopie Widjaya, the president of PT Steady Safe, a public transportation firm listed on the Jakarta Stock Exchange, was reported to have successfully acquired a 51 percent stake in BPS through transactions on the Jakarta and Surabaya exchanges.

Jopie was not available to confirm the news, but sources said that at least 23 percent of the bank's shares were purchased through the two local markets under Jopie's name and another 28 percent under his affiliated companies.

The sources said that the new majority shareholder was likely to propose a change to the bank's management at the bank's annual shareholders' meeting this week.

Procedures

Soedradjad acknowledged that the sales of BPS's shares to Jopie and his affiliated companies were in accordance with existing procedures.

According to the existing laws, a publicly listed bank should immediately report to the central bank if 35 percent or more of its shares fall into the control of a single individual or institutional investor. The acquisition of over 50 percent of bank's shares by a single individual or institutional investor are also subject to approval from the Minister of Finance.

Commenting on the possible change in the bank's management, Soedradjad said that it would be approved only if it meets existing requirements and procedures.

Before the takeover, 13.11 percent of BPS was owned by Bank Indonesia, 3.49 percent by PT Jasindo, a state-owned insurance firm, 5.69 percent by PT Jiwasraya, a state-owned life insurance firm, 11.13 percent by Bank PDFCI, 6.8 percent by AJB Bumiputra, a mutual life insurer, 12.68 percent by REI Windu, a real estate developer, 8.07 percent by the International Finance Corporation, an affiliate of the World Bank, and 10.66 percent by Friesch Groningsche Hypotheekbank. (hen)