Decision on Bank Niaga divestment postponed

Dadan Wijaksana, The Jakarta Post, Jakarta

The Financial Sector Policy Committee (FSPC) postponed until next Monday a meeting to decide on the sale of the government's 51 percent stake in medium-sized Bank Niaga.

FSPC secretary Lukita Dinarsyah Tuwo said the meeting could not be held as scheduled on Thursday because not all of its members could participate.

"The meeting will be held Monday, so there won't be any decision on Bank Niaga until then," Lukita told The Jakarta Post.

FSPC groups senior economic ministers and has the final say on the country's major asset sale program.

Earlier on Wednesday, State Minister of State Enterprises Laksamana Sukardi suggested that the sale of the publicly-listed Bank Niaga stake to strategic investors be canceled because of the low bidding prices.

Rumor has it that the highest bidding price was only around Rp 30 per share, compared to the market closing price of around Rp 80 on Monday, the deadline for the bidders to submit the price offer.

The bidders are consortia each lead by ANZ Banking Group Ltd., and Malaysian Commerce Assets-Holdings Bhd.

Laksamana has said that the sale of the Bank Niaga shares could be switched to a private placement mechanism or through a secondary offering in the stock market to gain optimum price level.

The government, which through the Indonesian Bank Restructuring Agency (IBRA) controls 97.15 percent of Bank Niaga, is planning to sell its majority stake in a bid to raise cash to help finance the state budget deficit and push the country's crucial bank restructuring program.

The sale process is being closely watched by investors and the International Monetary Fund, which has warned against any delay.