FSPC won't delay Bank Niaga sale

The Jakarta Post, Jakarta

The Financial Sector Policy Committee (FSPC) said in a statement on Tuesday that the planned sale of the government's 51 percent stake in medium-sized Bank Niaga would not be delayed.

It said that the final bid deadline would remain May 27.

"In a meeting on Friday, the Indonesian Bank Restructuring Agency (IBRA) reported the progress of the Bank Niaga divestment and it stated that bidders will submit their final bids according to schedule," the FSPC was quoted by Reuters as saying.

The FSPC groups several senior economic ministers and has the final say on the country's major bank restructuring program.

The statement followed remarks made by the deputy chairman of the Indonesian Bank Restructuring Agency (IBRA), I Nyoman Sender, on Monday that the agency would not proceed with the sale plan if the bids were much lower than the market price.

Nyoman said preliminary bids from the four short-listed bidders were in the range of Rp 15 to Rp 25. The bank's shares were quoted at Rp 80 on Monday.

The government, through IBRA, holds 97.15 percent in publicly listed Bank Niaga.

The divestment of government shares in the bank is part of the country's economic reform program agreed with the International Monetary Fund and is seen as a key asset sale this year that has been long awaited by investors.

The four bidders eying Bank Niaga include consortia, each led by Australia's ANZ Banking Group Ltd., Malaysian financial group Commerce Asset Holdings Berhad, and two local bidders, Bank Victoria International and Batavia Investment Fund.

The sale of the Bank Niaga stake would also raise cash to help finance the 2002 state budget deficit.