Govt keeps Sigit as BNI president

Govt keeps Sigit as BNI president

Rendi A. Witular, The Jakarta Post, Jakarta

Shareholders of state-owned Bank Negara Indonesia (BNI) retained
Sigit Pramono as the president of the nation's third largest bank
by assets so as to ensure the continuation of his restructuring
programs.

The shareholders during the bank's annual meeting on Thursday
also named Gatot M. Suwondo, the brother-in-law of First Lady Ani
Yudhoyono, as the bank's new deputy president, replacing Arwin
Rasyid, who was honorarily discharged.

Gatot was formerly a director of the syariah-banking division at
publicly listed Bank Danamon, the country's fifth largest lender
by assets, which is controlled by a consortium made up of
Singapore-based Temasek Holdings and Deutsche Bank.

Sigit said in a press briefing after the meeting that the
shareholders wanted him to continue with the restructuring
process at BNI, after a high-profile lending scam worth Rp 1.7
trillion (US$180.18 million) nearly downed the bank in 2003.

"BNI is still undergoing a restructuring process and the
shareholders want to see it proceed smoothly and successfully,"
said the former president of publicly listed Bank Internasional
Indonesia (BII).

Sigit has been considered successful by analysts in restoring
BNI's performance since taking over the bank's top post in
December 2003, replacing Syaefuddin Hasan, after the revelation
of the massive lending scandal.

The government controls 99 percent of BNI, with the remaining
shares held by retail investors.

Shareholders also agreed to allocate 50 percent of the bank's
net profit in 2004 for the payment of a dividend worth Rp 1.56
trillion, or Rp 118.7 per share. BNI recorded a profit of Rp 3.13
trillion last year, up from Rp 829 billion in 2003.

The bank's loan book as of last year stood at Rp 57.9
trillion, an increase of 24.7 percent, or 11.46 trillion. About
41 percent of the lending was to the corporate sector, 40 percent
to the commercial sector and 18 percent to the consumer sector.

Sigit had said earlier that BNI planned to increase its net
profit by at least 15 percent, or Rp 3.6 trillion, this year,
with new lending being targeted at Rp 14 trillion.

BNI board of directors

President director : Sigit Pramono

Deputy president director : Gatot M Suwondo

Directors : Fero Poerbonegoro

Kemal Ranadireksa

Achmad Baiquni

I. Supomo

Suroto Moehadji

Bien Subiantoro

Achil Ridwan Djayadiningrat

Tjahjana Tjakrawinata

BNI board of commissioners

Chief commissioner : Zaki Baridwan

Deputy chief commissioner : Suwarsono

Commissioners : JB Kristiadi

Effendi

HMS Lutfi

Felia Salim

Achjar Iljas