IBRA achieves highest recovery

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) achieved the highest recovery rate so far, of 152 percent -- compared to previous programs -- in the third property assets sale program, an observer said over the weekend.

"I think the PPAP-3 (the third property assets sale program) is the most successful program," Panangian Simanungkalit, property consultant, told newswireAntara.

Panangian said IBRA had achieved the recovery rate of 139 percent in the first sale program and 136 percent in the second program.

Last week, IBRA announced that it had raked in some Rp715 billion (about US$85 million) in proceeds from 894 winning bidders in the individual assets category and 15 winners for assets offered under packages, or the bulk assets category.

IBRA's version of a recovery rate is the comparison between the value of achieved sales and the floor price of the assets sold. The floor price of the assets in the third program was Rp 469 billion, for 1,346 assets sold.

Actually, IBRA tried to sell a total of 2,647 assets during the third program. But IBRA did not reveal the floor price of the total assets offered.

Panangian added that the property IBRA offered "sold out" with its marketability rate reaching 51 percent.

Previously IBRA reported that, during the third program, 4,771 bidders were interested in the individual assets and 65 bidders in the bulk asset categories.

The assets were part of the collateral of bad loans, transferred by local banks to the agency after the banking crisis in late 1990s.

IBRA raised Rp 650 billion from the previous sale of property assets.