Big debtors submit guarantee to repay: IBRA
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) has secured personal guarantees from the country's business tycoons in case the assets they pledged to repay loans to the government were not sufficient, said a prominent official at the agency.
IBRA corporate secretary Christovita Wiloto said on Thursday the personal guarantees would commit the indebted businessmen to surrender more assets or additional cash to repay the remaining loans.
Five business tycoons -- Sudono Salim, Usman Admadjaja, Mohamad "Bob" Hasan, Samadikun Hartono and Sjamsul Nursalim -- surrendered some 200 companies to IBRA to repay massive liquidity support injected by the government into their banks last year.
The government nationalized Sudono Salim's Bank Central Asia and Usman Admadjaja's Bank Danamon last August, but decided to close down banks owned by the three other business moguls.
IBRA announced on Thursday the establishment of five holding companies to manage assets pledged by the tycoons.
The five holding companies represent assets of the Salim group, Sjamsul Nursalim's Gajah Tunggal Group, Usman Admadjaja's Danamon Group, Bob Hasan's Kiani Group and Samadikun Hartono's Modern group.
IBRA deputy chairman Farid Harianto said the conglomerates would continue to own these companies, but IBRA would exercise shareholders' rights until debts owed to the government were repaid.
IBRA said the holding companies were set up to improve the performance of the assets, to facilitate the restructuring of these companies and to increase their asset value.
IBRA said it would not be actively involved in the companies' day-to-day operations but would supervise their management.
Farid also said the transfer of the assets would not affect the daily operations of the companies.
The assets under the holding companies include shares in the world's biggest instant noodle maker, the largest tire maker in Southeast Asia, the world's largest integrated shrimp producer and sophisticated pulp and paper companies.
The following are the five holding companies set up by IBRA.
1. PT Holdiko Perkasa, which holds stakes in 78 companies surrendered by the Salim group. These include stakes in publicly listed giant auto company PT Astra International and the major flagships of the Salim Group, such as non-listed car maker PT Indomobil Sukses International, listed cement maker PT Indocement Tunggal Prakasa and the Hong Kong-listed First Pacific Co.
2. PT Bentala Kartika Abadi, which controls assets in 22 companies pledged by Usman Admadjaja.
3. PT Tunas Sepadan Investama, which holds assets in 12 companies pledged by Sjamsul Nursalim to repay liquidity support extended to its bank, the closed Bank Dagang Nasional Indonesia (BDNI). It includes stakes in tire maker PT Gajah Tunggal and PT GT Petrochem Industries.
4. PT Kiani Wirudha, which holds assets in 32 companies pledged by Bob Hasan, a close associate of former president Soeharto, to repay liquidity support extended to the closed Bank Umum Nasional which he partly controlled.
5. PT Cakrawala Gita Pratama, which holds stakes in nine companies pledged by Samadikun Hartono to repay liquidity support to the closed Modern Bank.
Christovita said in the case of the Salim Group, IBRA had received a commitment from the group to provide more assets in case the 78 companies were not sufficient to repay its 46 trillion debt. (rei)