IBRA holds furniture auction

JAKARTA (JP): Some 16,000 pieces of office furniture worth Rp 800 million (US$119,400) will be auctioned at the Jakarta Fair grounds in Kemayoran, Central Jakarta, beginning on Monday, the organizers said on Sunday.

Organized jointly by the Indonesia Bank Restructuring Agency (IBRA) and PT Balindo, the auction is only offering 15 percent of the total amount of furniture confiscated by IBRA from 21 private banks liquidated by the government.

IBRA has held 19 auctions, including cars, paintings and furniture with a total value of Rp 138 billion and is planning a properties auction for September.

In line with a government regulation, IBRA must finish liquidating all assets of the closed banks, which are worth Rp 300 trillion, within five years.

Earlier auctions by IBRA have shown that many prospective buyers come to the event as prices of goods offered are competitive, most of which are 70 percent lower than market prices.

Buyers who come to the event comprise both consumers and furniture retailers. Many retailers are even willing to buy items that are already damaged or partly broken, mending them before reselling to consumers at a good profit.

All the goods at the auction were appraised by PT Seruling Bambu Kuning, which was appointed through fair bidding.

Although the closure of many banks has caused lay-offs of thousands of employees, it has opened up new business opportunities.

PT Balindo, for example, has enjoyed a major windfall in the auction business, although its was set up only last year.

IBRA has cooperated with four of 13 auction companies in the country, all of which were done through bidding.(04)