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)