House again delays decision over BCA

House again delays decision over BCA

JAKARTA (JP): The House of Representatives (DPR) deferred
again making a decision on whether to approve the government plan
to divest a 51 percent stake in the publicly listed Bank Central
Asia (BCA).

"We cannot discuss BCA's divestment plan now since we want to
focus on the issue of hedge funds for Bank Internasional
Indonesia (BII)," legislator Aberson Marle Sihaholo of the
Indonesian Democratic Party of Struggle (PDI Perjuangan) said on
Wednesday on the sidelines of a meeting with Finance Minister
Boediono and State Minister for State-Owned Enterprises Laksamana
Sukardi.

The legislators are expected to convene again on Thursday to
decide the fate of BCA.

BCA shares increased by 1.6 percent to Rp 1,300 on the Jakarta
Stock Exchange on Wednesday as investors were upbeat that the
House would approve the BCA sale plan later in the day.

The BCA divestment plan is part of the latest agreement
between the government and the International Monetary Fund (IMF).
The government plans to sell a 51 percent stake in BCA, the
country's largest retail bank, to a strategic investor.

Last year, the House blocked the plan causing the IMF to
suspend its US$5 billion loan program.

The government initially expected the House to give its
approval earlier this week.

Meanwhile, legislator Habil Marati of the United Development
Party (PPP) reiterated on Wednesday his faction's rejection of
the plan to sell 51 percent of government shares in BCA.

"We will not allow the sale of 51 percent of government shares
in BCA. We will stand by the previous agreement to sell 30
percent only," Habil told journalists on Wednesday.

Earlier, legislators from the Golkar faction expressed similar
objections, saying the move was not beneficial under current
conditions. (03)