Holdiko secures Rp 11.67 trilion in proceeds this year

Holdiko secures Rp 11.67 trilion in proceeds this year

Dadan Wijaksana, The Jakarta Post, Jakarta

PT Holdiko Perkasa, a holding company set up by the Indonesian
Bank Restructuring Agency (IBRA) in 1998 to oversee the sale of
the Salim Group assets, has finalized 19 transactions during this
year, raising total gross proceeds of Rp 11.67 trillion (around
US$1.1 billion).

Holdiko said in a press statement on Tuesday the result had
exceeded the target of Rp 7.2 trillion. To date, the company had
raised a total of Rp 16.25 trillion from 32 asset sales.

Holdiko said that the average recovery rate of the assets
stood at 48.6 percent.

The Salim Group transferred the assets to IBRA to repay debt
to the government.

The government injected billions of dollars worth of emergency
liquidity support into the group's Bank Central Asia amid massive
runs on the bank at the peak of the 1997 financial crisis.

IBRA, which received some Rp 600 trillion worth of assets from
indebted bank owners, is mandated to restructure and sell the
assets to raise cash for the government. This year the agency is
targeted to raise Rp 27 trillion, and its top management has
claimed that IBRA is on track to meet the target. Most of the
proceeds have come from the sale of Salim Group assets.

Salim Group companies are considered to be the most valuable
assets under IBRA's control.

Holdiko said the 2001 proceeds included those coming from the
sale of Salim Palm Plantation and Mosquito Coil Group, which were
signed in 2000 but not closed until this year.

During this year Holdiko completed the sale of its ownership
in First Pacific (batch 3), Indocoal, Indosiar, Indopoly
Swakarsa, Kerismas, Yunnan Kunlene, Salim Ringo Containers,
Indomarco Prismatama, Gumindo Perkasa, Poli Contindo, Guangdong
Jiangmen, Sugar Group, Riau Industrial Estates, Berdikari Sari
Utama, Yakult Indonesia, Indomobil and Sulfindo.

Of the 19 sealed transactions, the greatest proceeds came from
the sale of Sugar Group, with revenue amounting to Rp 1.2
trillion.