Bhakti's shares in Ficorinvest to rise

Bhakti's shares in Ficorinvest to rise

JAKARTA (JP): PT Bhakti Investama, a local securities company,
will increase its share ownership in Ficorinvest Bank (First
Indonesian Finance and Investment Corporation bank) to 26
percent.

Company president Hary Tanoesoedibyo said his firm, which at
present owns 19.41 percent stake in the bank, would buy another
10.54 million shares or 6.59 percent to increase its share
ownership to 26 percent.

He said the 10.54 million shares would be acquired through a
tender offer, adding that the proposed price would be Rp 2,050
each.

The increase in the stake would prop up Bhakti Investama's
profits, he said.

"Twenty-six percent of Ficorinvest Bank's profit will be
included in the income statement of Bhakti Investama this year,"
Bisnis Indonesia quoted him as saying.

Hary said Bhakti Investama expected to post net profit of Rp
34 billion and revenue of Rp 50 billion this year.

Ficorinvest president's Supari Dhirdjoprawiro said that as of
July 1997, the bank was 35.42 percent owned by Bank Indonesia, 19
percent by Bank Indonesia Pension Fund, 16.42 percent by Bank
Indonesia Employees Cooperatives, 4.16 percent by PT Bina Usaha
Indonesia and the remaining 25 percent by the investing public.

Ficorinvest Bank was founded in 1974 as a nonbanking financial
institution by PT Bina Usaha Indonesia and nine domestic and
foreign financial institutions.

In 1993, Ficorinvest changed its status as a commercial bank
with a license to operate as a foreign exchange bank.

But prior to the change, Ficorinvest suffered from losses due
to huge nonperforming loans.

Bank Indonesia, the central bank, then appointed Supari
Dhirdjoprawiro as president to improve the bank's performance.

Since then, the bank has increased its net profit. In 1995,
the bank recorded total net profit of Rp 11.98 billion. It rose
to Rp 17.2 billion in 1996.

The bank expected to record net profit of about Rp 25 billion
this year. (aly)