BI reduces its stake in bank PDFCI to 5.9%

JAKARTA (JP): Bank Indonesia, the central bank, has reduced its stake in Bank PDFCI from 11.62 percent to 5.9 percent.

PDFCI's president, Eddie Tong, said after the company's shareholder meeting yesterday that the central bank's stake was cut when it chose not to buy any of the new shares issued last January.

"Bank Indonesia has been directed toward its original function as the monetary authority. So, I think it is correct for the central bank not to exercise its rights," Eddie said.

Late last January, Bank PDFCI held a rights issue for existing shareholders because it wanted to increase its paid-up capital to Rp 187.5 billion (US$77.4 million).

The central bank let PDFCI's founding shareholders take up the new shares it was entitled to.

State-owned securities firm Bahana Investa Argha now owns 27.09 percent of Bank PDFCI, up from 19.8 percent. Nippon Credit Bank has 7.33 percent, down from 9.77 percent, while Bank Indonesia's pension fund holds 5.8 percent, up from 2.93 percent.

Other shareholders include Deutsche Investitions (4.96 percent), PT Meta Epsi Duta Corp (4.13 percent), Treasury Spring Co (3.35 percent), Billion Venture International Inc (2.65 percent), Tri Usaha Bakti (2.64 percent) and Bank Indonesia's employee welfare foundation (1.29 percent).

The central bank has been criticized for having stakes in several banks, including the problem-ridden Bank Pacific and Bank Uppindo. The central bank wants to divest from these investments.

Bank PDFCI's shareholders approved a Rp 75 dividend.

Net profit for last year was Rp 31.8 billion last year, up from Rp 23.2 billion in 1995.

The company's financial ratios also improved.

Net earnings per share rose 8 percent from Rp 247 in 1995 to Rp 340 last year.

Eddie said he was optimistic the bank, which lends mostly to corporate clients, would become Indonesia's fifth biggest syndicated loan arranger.

One of PDFCI's directors, Eko S. Budianto, said the bank expected syndicated loans to rise from US$1.8 billion last year to $2 billion this year.

Earlier this year, Bank PDFCI underwrote two big projects -- the Rp 2.2 trillion Kali Malang-Bekasi toll road project in East Jakarta and a US$381 million power plant project in North Sumatra.

"We have five more big projects in the pipeline, two clean water projects and three toll road projects," Eko said.

One of the two clean water projects will cost Rp 120 billion and the others Rp 60 billion. One of the three toll road projects will cost Rp 1.7 trillion while the costs of the other two are still being evaluated. (rid)