Give investors equal chance of acquiring Permata: Anwar
Give investors equal chance of acquiring Permata: Anwar
Dadan Wijaksana, The Jakarta Post, Jakarta
Amid intensified talks of a merger between two of the country's
top-ten banks, the central bank has suggested the government give
any interested parties, including foreign investors, equal
chances of acquiring Bank Permata.
Bank Indonesia senior deputy governor Anwar Nasution said all
options -- including open bidding, which allowed the
participation of every interested investor -- should be taken
into consideration to produce the best possible solution.
"We condone any merger move, as suggested by API (Indonesian
Banking Landscape)," Anwar said, referring to a concept recently
launched by the central bank which, among others measures,
encouraged national banks to merge to strengthen their capital.
"But, should it be dominated by BNI? Why not hold a sort of
open bidding in which anybody, including foreigners, could
participate?" explained Anwar, adding that open bidding would not
only ensure fairness, but also the best results for the banking
sector as a whole.
Anwar was replying to questions on the possibility of a merger
between BNI (Bank Negara Indonesia) and Permata, both of which
are owned by the government via the Office of the State Minister
of State Enterprises.
State Minister of State Enterprises Laksamana Sukardi said the
office would decide upon the possible merger sometime in
September.
The plan first emerged around a month ago when BNI, a leading
player in the corporate sector, proposed to the government that
it would merge with Permata to help strengthen its financial
balance and expand its business to the retail and consumer
sector, which is Permata's core strength.
BNI and Permata are the country's second and seventh largest
banks respectively in terms of assets. BNI has assets worth Rp
131 trillion (US$19 billion) and Permata, about Rp 30 trillion.
As the merger talks continue, Anwar's remarks should provide a
respite for other banks -- both domestic and foreign -- which
also have an interest in Permata.
It has been no secret that Permata's solid footing in the
retail and consumer sector has drawn much interest from
investors, in line with the recent boom in the sector. Permata
was formed two years ago from a merger of five ailing banks; Bank
Bali, Bank Universal, Bank Arthamedia, Bank Prima Express and
Bank Patriot.
Elsewhere, should the merger plan proceed, Anwar suggested the
government learn a lesson from previous mergers, which had taken
a long time to consolidate.
He cited Bank Mandiri and Bank Danamon, as examples .