Edwin named new IBRA chief

Edwin named new IBRA chief

JAKARTA (JP): President Abdurrahman Wahid said on Friday that
he had appointed Edwin Gerungan, a career banker, as the new head
of the Indonesian Bank Restructuring Agency (IBRA).

Speaking after Friday prayers in Ciganjur, South Jakarta,
Abdurrahman said that his move was aimed at accelerating the
country's bank restructuring process.

"IBRA should be agile and brave enough to take action ...
that's why I have named Edwin Gerungan (as new IBRA chief),"
Abdurrahman said.

"I hope that there will be a positive reaction to this
decision from the market, particularly as regards the rupiah and
the (share) index," he added.

The President's decision to name Edwin as new IBRA chief was
first relayed to the media by Agus Kartasasmita, chairman of the
Indonesian Contractors Association (Gapensi), on Friday morning.

He said Abdurrahman had told his association during a meeting
at the Merdeka Palace that he had named Edwin, formerly a senior
executive of Citibank Indonesia and currently the vice president
of the state-owned Bank Mandiri, as IBRA's new chief.

Agus also said that Abdurrahman had appointed I Nyoman Tjager
as director general for state enterprises.

I Nyoman Tjager is a former deputy of the now defunct ministry
of state enterprises and investment and a senior official with
the Capital Market Supervisory Board (Bapepam).

Gus Dur, as the President is widely known, said that his
decision to name Edwin as IBRA chief was based on the advice of
his "most trusted advisors".

"I fully trust these people and they spoke of Edwin as being
the right candidate, so I accepted him," the President said
without elaborating.

Edwin, a career banker who has also worked for the U.S-based
ARCO (Atlantic Richfield Co) will take over from Cacuk
Sudarijanto, who is now Junior Minister for the Restructuring of
the National Economy.

Abdurrahman said Cacuk was replaced because he could not hold
two positions at the same time.

IBRA is a keystone of the International Monetary Fund-backed
program to dig Indonesia out of the shambles left of the economy
and banking system after the 1997 regional financial crisis.

Both Edwin and Nyoman are expected to be installed on Monday.

Cacuk entered IBRA in late 1999 and became its chairman last
February. Known for his close relations with Abdurrahman's
younger brother Hasyim Wahid, he was appointed to the Cabinet in
August.

There had earlier been speculation that former president of
state-owned Bank Negara Indonesia (BNI) Widigdo Sukarman would
replace Cacuk.

But the market responded negatively to the news, particularly
due to Widigdo's poor performance in leading BNI, which had to be
recapitalized by the government at a huge cost.

Analysts welcomed the appointment of Edwin as IBRA chairman.

"It's positive. He's professional and has integrity," said a
senior economist at state-owned PT Danareksa Securities Raden
Pardede.

"He also understands how the market works," he added.

Raden, however, said that Edwin must have a deputy who has a
strong capability in corporate restructuring.

"The market now wants to see IBRA take some action," he said.

Equity analyst Dandosi Matram also said that the appointment
of Edwin was positive because he had few political ties, which
would make it easier for him to deal with politically well-
connected debtors and former bank owners.

"His moves will be better accepted by the market," Dandosi
said.

Meanwhile, Edwin described his new post as a "tough job."

Asked about his strategy, he said: "I can't speak now. I'm new
here so I have to study (the new post) first."

"I can tell you on Monday at my installation," he told
reporters after meeting with finance minister Prijadi
Praptosuhardjo.

IBRA controls assets worth more than Rp 600 trillion (US$66
billion). The agency is mandated to sell the assets to raise cash
to help finance the state budget which is heavily burdened by the
massive cost of the country's bank restructuring program.

The agency is targeted to raise Rp 18.9 trillion in cash in
the current 2000 state budget. It has so far raised only around
Rp 14 trillion. IBRA, a unit under the finance ministry, is also
required to raise around Rp 27 trillion for the state budget in
2001.

IBRA has been strongly criticized by most analysts and the IMF
and World Bank for the slow pace of its asset disposal program.
(rei/byg/bkm)