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)