IBRA holds furniture auction

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)