Govt auction off donated gold and closed banks' cars

JAKARTA (JP): Separate auctions of 96.75 kilograms of gold and 55 cars on Tuesday proved that the prolonged monetary crisis means nothing at all to certain people.

All lots were sold within hours of the start of bidding in the first day of the two-day auction. The gold went for Rp 5.51 billion (US$7.35 million), while the cars raised a total of Rp 3.9 billion.

The successful bidder in the gold auction was named as gold trader Ho Budi. The auction was held at the head office of state- owned pawnbroker Perum Pegadaian on Jl. Kramat Raya in Central Jakarta.

According to auction committee member Deddy Kusdedi, Ho outbid five other interested parties identified as Herman Tambayong, Iskandar Husin, Yap Alex, Herwanto and PT Tirta Mas.

"The gold was first offered for Rp 4.6 billion. The price was raised in steps of Rp 5 million before closing at Rp 5.51 billion," Deddy, who is the operational director of Perum Pegadaian, said.

The price was above Perum Pagadaian's target of Rp 5 billion.

The gold was among 100.79 kilograms collected from the public during the "I Love the Rupiah" campaign earlier this year.

The remaining four kilograms of gold, which includes jewelry and precious stones, will be auctioned at the same venue on Wednesday.

Participants in Wednesday's auction are not required to post a guarantee bond, unlike on Tuesday, when each bidder had to provide a guarantee bond of Rp 3 billion.

Deddy said he expected the auction room to be crowded on Wednesday.

The vehicle auction was held at the warehouse of privately- owned PT Balai Lelang Indonesia (Balindo). At least 1,000 people bid for 55 cars which were among 83 cars and 41 motorcycles seized by the government from suspended banks.

Representatives from international organizations, including four International Monetary Fund (IMF) officials were present to witness the sale.

Balindo managing director G. Gunawan said participants had traveled to the auction from as far afield as Lampung and Medan in North Sumatra.

Given the enthusiasm of participants today, we hope we will be able to auction the remaining 28 cars and 41 motorcycles tomorrow (Wednesday)," Gunawan said.

The two-day auction is expected to raise a total of Rp 5 billion, 3 percent of which will go to Balindo.

On Tuesday, many participants grumbled that cars were selling for above the market price.

For example, a 1997 Kijang LSX minivan opened at Rp 53 million but eventually sold for Rp 84 million.

Rudi, who bid in the auction, said the price was Rp 10 million above the market price.

But others said that six luxury cars auctioned on Tuesday went for well below their market value.

Agus, who was representing his boss, bought a 1997 BMW-528i for Rp 351 million after bidding opened at Rp 280 million.

"The car could fetch between Rp 400 million and Rp 500 million," Agus said, refusing to identify his boss.

Balindo installed a large video screen in the warehouse to display each vehicle being auctioned.

Eko S. Budianto, the head of the Indonesian Bank Restructuring Agency's Asset Management Unit (AMU-IBRA), said he was pleased by the large turnout for the auction.

"The money we have raised is not the main pointer for success. The important point is that the auction has been conducted fairly and openly," Eko said, adding that the money would be kept in the State Treasury.

All the vehicles auctioned belonged to Hokindo Bank, Centris International Bank and publicly listed Bank Surya, which were closed by the government in April.

Eko said the agency holds a further 1,000 vehicles confiscated from 10 other banks closed by the government in April and August.

Dates for the auction of the remaining vehicles will be announced shortly after organizers have been selected through an open bidding process. The vehicles will be auctioned off gradually, 100 at time, Eko said.

He said the agency also plans to auction computers, automatic teller machines and buildings which belonged to the closed banks. (jun)