Bank Rama finds new partner

Bank Rama finds new partner

JAKARTA (JP): Publicly listed Bank Rama has received a strong
commitment from Golden Harvest Developments Ltd. to form a
strategic alliance with the bank.

In a statement released on Friday, the bank said that Golden
Harvest is committed to taking part in its recapitalization
efforts. It did not specify the amount of funds the company would
inject into the bank.

"Golden is confident in Indonesia's future growth prospect and
believes that Bank Rama is in a good condition to take advantage
of such growth opportunities," the bank said.

Bank Rama is geared to be a trade finance bank for small and
medium sized businesses in the country.

"A strategy is in place to further strengthen and position
Bank Rama as a trade finance bank, so that it may contribute to
future developments, particularly by catering to the needs of
small and middle sized businesses."

Banks which have a capital adequacy ratio (CAR) of between
less than 4 percent and minus 25 percent are allowed to join the
government-sponsored recapitalization program in order to raise
their CARs to the 4 percent minimum level.

CAR is the ratio between capital and risk-weighted assets.

Banks wishing to join the government bank recapitalization
program are obliged to provide at least 20 percent of the funding
requirement, while up to 80 percent will be provided by the
government.

Banks which are eligible to join the recapitalization program
but are unable to come up with the 20 percent funding will be
closed down.

Bank Rama, established in 1967, is jointly owned by PT Pendawa
Intipratama (19.57 percent stake), Joseph Gondobintoro (17.56
percent), PT Dwi Kresna (13.58 percent), PT Gondobintoro
Mitragraha (13.33 percent) and the public (35.96 percent). (02)