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.