IBRA completes property sale

JAKARTA: The Indonesian Bank Restructuring Agency (IBRA) completed on Thursday its third batch property asset sale program this year, selling around 17.95 percent of the assets on offer, with a recovery rate of 114.87 percent, the agency said in a statement.

The agency said that it sold some 256 assets out of 1,429 assets offered. In the second batch, the agency sold 161 assets out of 1247, and in the first batch it sold 383 assets out of 1568.

In previous years, IBRA has also sold various property assets.

The agency has taken over the property assets from indebted bank owners and troubled banks. IBRA is mandated to sell the assets to raise cash to help finance the state budget deficit.

Last year, IBRA managed around 6,000 property assets including parcels of land, rice fields, houses, villas, shops, hotels, buildings, warehouses, apartments and factories throughout the country, valued at about Rp 9.8 trillion.

From 1999 to July 2003, the agency contributed around Rp 149.49 trillion (about US$17.69 billion) in cash to state coffers from the sale of various assets including property, bad loans, shares in a number of companies, and other forms of fixed assets. -- JP