IBRA launches property sale program

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) said on Tuesday that it had started the sale of property assets taken from its debtors.

The debtors are mostly small and medium-sized enterprises (SMEs).

The registration period to participate in the sale program, called the Crash Program Property (CPP), was held from April 21 until April 20, an agency press statement said.

The release did not mention the total book value of the assets, but did say that debtors were allowed to buy back the assets they had surrendered as payments for their debts.

IBRA categorizes debtors with a debt of less than Rp 5 billion as SME debtors. Therefore, CPP is valid only to property assets whose maximum debts amounted to Rp 5 billion, or equivalent.

The release added that assets on offer were all in the form of land plots and buildings, on which IBRA will offer the current physical and document conditions on an "as is" basis.

Excluded from the assets are those obtained from large debtors who have borrowed huge amounts of government bank bailout funds, called liquidity support facilities, in the past.

Meanwhile, IBRA also announced that it had completed its Property Assets Sales Program 2 (PPAP2), in which 720 assets were sold.

From the program, IBRA expects to raise total proceeds of around Rp 647.8 billion.

The complete list of winners are available at IBRA website www.bppn.go.id.