Despite Marriot bombing, investors still interested in RI banks
Despite Marriot bombing, investors still interested in RI banks
The Jakarta Post, Jakarta
The government should go ahead with its plans to sell more
local banks this year and next year as foreign investors still
have a keen interest in the sell-off program despite the recent
Marriot hotel bombing, analysts say.
They said investors continued to have confidence in the
resilience of the country's economy as they had seen that the
bombing had a limited economic impact.
This was reflected in the quick recovery of local stocks and
the rupiah, they said.
"Based on that, I do not see why foreign investors should be
reluctant to participate in the bank sell-off program," a banking
sector observer at a state-owned bank told The Jakarta Post over
the weekend.
"Aside from the fact that the bombing has caused only a small
impact, the assets offered by the government are competitive in
terms of value compared with those of the same caliber in other
countries," he added.
The government plans to sell more banks in a bid to raise cash
for the budget and to lure credible investors into the sector,
thus, it is hoped, reviving public confidence in the sector.
The banks slated for sale include Bank Rakyat Indonesia in
October or November, Bank Lippo (September 2003), Bank
Internasional Indonesia (September or October 2003), Bank Permata
(2004), Bank Negara Indonesia (2004) and Bank Tabungan Negara
(2004).
In the last two years, the government sold majority stakes in
Bank Danamon, Bank Niaga and Bank Central Asia (BCA). And only
recently, in what is considered as the biggest success of the
program, it sold a 30 percent stake in Bank Mandiri through an
initial public offering (IPO).
The momentum was recently disrupted by the JWC Marriott Hotel
bombing on Aug. 5, which killed 12 people. This has prompted
suggestions that the government should temporarily put on hold
the bank sell-off program.
Key facts about the banks that are up for sale
1. BRI: Now one of the country's largest banks in the area of
micro financing, BRI had total assets of Rp 85.6 trillion as of
March. A 30 percent stake in the state bank will be sold via an
IPO mechanism.
2. LIPPO: This bank is 54 percent owned by the government, with
this entire stake being put up for sale. As of May this year, it
had total asset of Rp 22.5 trillion, 379 branch offices
nationwide and around 6,000 employees.
3. BII: The government holds 93.7 percent stake in this bank,
with at least a 51 percent stake expected to be put on the block.
It has 255 branch offices and employs more than 7,000 staff. Its
assets total Rp 37.9 trillion.
4. PERMATA: Permata is the result of a merger of five banks --
Bank Universal, Bank Bali, Bank Patriot, Bank Artamedia and Bank
Prima Express. It has assets of Rp 29 trillion and is now 97.67
percent owned by the government, while the investing public holds
the remaining 2.33 percent.
5. BNI: Another heavyweight state bank, BNI currently has total
assets of Rp 125.6 trillion, employs around 14,598 people and has
close to 800 branch offices both in Indonesia and overseas.