Felia installed as new IBRA deputy chairwoman

Felia installed as new IBRA deputy chairwoman

JAKARTA (JP): Minister of Finance Prijadi Praptosuhardjo
installed on Tuesday Felia Salim as the new deputy chairwoman of
the Indonesian Bank Restructuring Agency (IBRA) in charge of the
restructuring and sale of banks controlled by the agency.

Felia replaces Jerry Ng, who tendered his resignation earlier
this year.

Felia was previously the executive secretary of the powerful
Financial Sector Policy Committee (FSPC), which groups several
senior economics ministers and has the right of final approval on
major bank and corporate restructuring deals made by IBRA.

Felia, who graduated from a university in Canada and has lived
overseas for many years, is also a former director of the Jakarta
Stock Exchange.

One of IBRA's major programs this year is to complete the sale
of the government's majority shares in publicly listed Bank
Central Asia (BCA) and Bank Niaga, which were nationalized in
1999.

The House of Representatives recently approved the sale of the
government's majority shares in these banks. The plan calls for
the government to sell up to 40 percent of its equity in BCA and
51 percent in Bank Niaga.

The divestment program was to have been completed late last
year, but was delayed due to poor market conditions. The delay
disappointed the International Monetary Fund and was one of the
main reasons for the delay in the disbursement of the Fund's next
loan tranche to the country.

Felia also will be responsible for monitoring the performances
of the 11 banks under IBRA's control that are expected to play
major roles in the country's revamped banking industry.

The government plans to restructure the banking industry by
merging banks to form a few "core banks". It hopes to realize
this plan by 2003.

The government has injected bonds valued at hundreds of
trillions of rupiah to recapitalize the banks controlled by IBRA.
But high domestic interest rates and the plunging rupiah have
made the banks vulnerable to further financial bleeding.

There have been rumors that the resignation of Jerry, who took
up his post with IBRA in February last year, was the result of
political intervention by FSPC, which is led by Coordinating
Minister for the Economy Rizal Ramli.

IBRA deputy chairman Mahmuddin Jassin tendered his resignation
at the same time as Jerry, but the finance minister insisted he
remain in his post. Mahmuddin is an official at the Ministry of
Finance.

Both Jerry and Rizal have denied these rumors. Jerry said he
left IBRA because he wanted to return to the private sector
after completing the major tasks of restructuring the country's
ailing banking sector and arranging the sale of BCA and Bank
Niaga.

According to sources, Jerry has been offered key positions at
BCA and the Singapore office of Standard Chartered Bank.

Prijadi also installed on Tuesday Hendy Herijanto as IBRA
deputy chairman for risk management. He replaces Chandra Purnama,
who has been appointed deputy chairman for support and
administration at IBRA.

Hendy has been in IBRA's risk management department since
1998. (rei)