Foreigners encouraged to buy IBRA assets
Foreigners encouraged to buy IBRA assets
NEW YORK (Dow Jones): The Indonesian Bank Restructuring Agency (IBRA) encourages foreigners to invest in its nonperforming assets, a senior government official said Friday.
Speaking on the sidelines of an Asia Society conference here, Mar'ie Muhammad, a former minister of finance and head of the country's Independent Review Committee, said IBRA "welcomes any type of foreign investment."
Mar'ie added he did not know about the veracity of reports that a U.S. consortium is expressing interest in acquiring automaker Astra International's 19.5 percent stake, which is now controlled by IBRA.
On concerns about the potential impact of a recent bank scandal involving Bank Bali and the country's ruling Golkar Party, Mar'ie conceded that the scandal "deteriorates foreign investor confidence."
He said he would "plead" with the new House of Representatives for full disclosure of the investigation report on the scandal, which is being undertaken by PricewaterhouseCoopers.
The International Monetary Fund has voiced concern over the scandal, calling for all details to be revealed and calling for prosecution of those implicated.
Presidential elections are slated for November, and the new government is expected to take over around the end of they year.
Mar'ie added that once the Bank Bali report is publicized, impartial courts will be key to resolving the scandal.
Separately, Mar'ie cautiously dismissed concerns over IBRA's ability to sell off the Rp 17 trillion in bad assets that it has taken over from closed down banks by the end of March 2000.
"It all depends on the next government's support of IBRA and I am quite optimistic," he said. He added that IBRA has asked multilateral agencies for technical assistance in minimizing the impact of the recent scandal and political uncertainty.
IBRA has sold off a Rp 1 trillion in assets so far this year.
Indonesia's severe financial crisis last year has led IBRA to amass Rp 600 trillion in bad assets from local banks closed and taken over the agency.