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