IBRA completes property sale

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