Frozen banks' vehicles go for Rp 6b

Frozen banks' vehicles go for Rp 6b

JAKARTA (JP): A two-day auction of cars and motorcycles seized
by the government from suspended banks raised Rp 6 billion
(US$800,000), far exceeding the Rp 5 billion target.

Managing director of privately owned auction firm PT Balai
Lelang (Balindo), G. Gunawan, said the proceeds included Rp 2.1
billion on the auction's final day on Wednesday.

Twenty-eight cars and 41 motorcycles were auctioned on
Wednesday, and 55 cars went on the block on Tuesday at the firm's
warehouse on Jl. Rawa Gelam in the Pulogadung industrial estate
in East Jakarta.

"I'm pleased that the proceeds of the auction exceeded our
target," Gunawan said.

Balindo receives 3 percent of the proceeds, he added. An
estimated 1,200 people attended Wednesday's auction.

About 500 of the participants were interested in bidding on
cars, and the remainder in the auction of the motorcycles.

Fourteen Suzuki Baleno sedans, 12 Great Corolla sedans, Suzuki
Escudo jeeps and a Toyota Starlet sedan were among the vehicles
sold in the first session beginning at 10 a.m.

Bidding on a Suzuki Baleno sedan opened at Rp 40 million and
it sold for Rp 70 million.

Motorcycles sold for between Rp 4 million and Rp 7 million,
with bidding opening at Rp 2 million.

The lots were among 83 vehicles belonging to Hokindo Bank,
Centris International Bank and publicly listed Bank Surya which
were suspended by the government in April.

Meanwhile, housewives predominated among the dozens of people
who crammed the auditorium of state-owned pawnbroker Perum
Pegadaian on Jl. Kramat Raya, Central Jakarta, to participate in
the second day of an auction of 115 items of gold jewelry.

A member of the auction committee, Deddy Kusdedi, said about
90 percent of the items -- totaling 3.2 kilograms -- had sold for
Rp 180 million by 5 p.m. on Wednesday.

The auction continued into the evening because many people
were still interested in participating, said Deddy who is also
the pawnbroker's operation director.

Tentative proceeds exceeded the sales target of Rp 172.5
million for all the jewelry, which was offered at Rp 70,000 per
gram.

On Tuesday, 96.75 kilograms of gold bars and scraps were sold
in the auction to a gold trader named Ho Budi. The auction
required a guarantee bond of Rp 3 billion from each of the six
participants.

The gold was collected from public during the "I Love Rupiah"
campaign earlier this year. (jun)