Europe investors cool to IBRA presentation

Europe investors cool to IBRA presentation

LONDON (Dow Jones): The Indonesian Bank Restructuring Agency
painted an optimistic picture of progress in the reform of the
country's banking system Friday, but investors were thin on the
ground.

After presentations in Singapore and Hong Kong that drew more
than 250 European, Asian and U.S. bankers and investors, the
turnout in London, which saw a re-run of the earlier
presentations, was more modest, at around 40.

IBRA Chairman Glenn Yusuf downplayed the seeming lack of
interest, saying after the presentation that he "didn't expect"
attendance to be as high in Europe or in the U.S., where the
roadshow heads next.

In an interview with Dow Jones Newswires, Glenn said he had
spent time in London meeting "one-to-one" with top corporate and
banking officials to discuss investment possibilities. He
declined, however, to give details of those talks.

IBRA plans to sell assets worth Rp 17 trillion (US$2.1
billion) in the financial year to March 31, 2000. But during the
presentation, Glenn said that sales would "not proceed in the
face of massive investor indifference.... This isn't a fire
sale."

Glenn said European investors are more interested in taking
stakes in Indonesian corporates. The majority of bank creditors
are based in Asia and had attended the earlier presentations, he
said.

Investors at the Friday presentation said they were concerned
about how IBRA would reconcile its principles of protecting
Indonesian interests and meeting the needs of creditors.

One participant said he would like to see IBRA taking a lead
in foreclosing on non-viable Indonesian banks and enterprises.