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Wed, 14 Mar 2001

JP/IBRA expects to raise Rp 9.9t from asset sales

IBRA expects to raise Rp 9.9t from asset sales

JAKARTA (JP): The Asset Management Investment (AMI) division of the Indonesian Bank Restructuring Agency (IBRA) announced on Tuesday its target to obtain Rp 9.9 trillion (about $900 million) for IBRA's 2001 target earnings.

IBRA's head of asset disposal division Phoa Bing Han said that AMI's target would be achieved through the sale of assets under holding companies, and from the interest and installment payments made by the owners of liquidated banks.

The assets to be sold during the year would total more than 76 companies, of which 48 are under four holding companies, he said in a statement.

The other 27 companies are from non-holding companies, or assets from equity participation of liquidated banks' subsidiaries which are mostly finance companies, Han said.

PT Holdiko Perkasa, which holds assets of the Salim Group, will sell more than 28 assets or companies this year, including flour mill PT Berdikari Flour Mills and property company PT Bumi Serpong Damai.

PT Kiani Wirudha will sell five companies formerly owned by Bob Hasan, including pulp and paper firm PT Kiani Kertas and glue and chemical manufacturer PT Lakosta Indah.

Holding company PT Bentala Kartika Abadi will sell nine assets or companies formerly owned by Usman Admadjaja, including apartment and landbank company Kuningan Persada/Puri Imperium, while PT Cakrawala Gita Pratama will sell seven assets or companies formerly owned by the Modern Group, including the residential estate Modern Putratama.

Other companies sold include Dharmala International Finance, DBS Securities, Hotel Sasando Timor, and BDNI Reksadana, Han said.

The government has assigned IBRA to raise at least Rp 27 trillion ($2.7 billion) in cash to help finance this year's state budget.

Besides the Rp 9.9 trillion expected from AMI, IBRA also expects Rp 12.2 trillion from its Asset Management Credit (AMC) division and Rp 3.6 trillion from the Bank Restructuring Unit (BRU) division, and another Rp 1.3 trillion from other income, Han said. (tnt)