Tue, 26 Aug 2003

IBRA achieves highest recovery rate

The Jakarta Post Jakarta

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

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

Panangian said IBRA 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 Rp 715 billion (about US$85 million) in proceeds from 894 winning bidders for individual assets category and 15 winners for assets offered under packages, or bulk assets category.

IBRA's version of a recovery rate is a comparison between achieved sales value 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. IBRA did not reveal the floor price of the total assets offered in the third program.

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

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

The assets were part of the collateral for 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.