IBRA looks to S'pore for asset sales

IBRA looks to S'pore for asset sales

SINGAPORE (DPA): Indonesia is negotiating with Singapore's government-linked companies to buy all of the former Salim Group's stakes in assets in Batam, Bintan and Karimun islands, a published report said Friday.

Sources involved in the negotiations between the Indonesian Bank Restructuring Agency (IBRA) and city-state executives told The Business Times an initial agreement could be reached next month.

The assets, estimated to be worth up to S$500 million (US$277 million), are in 11 companies engaged in businesses ranging from industrial estates to integrated resorts and transportation.

"We hope to have some kind of an initial agreement with Singapore in May," a well-placed source was quoted as saying.

The two sides have reportedly met several times.

"If we succeed, we can go ahead with negotiations in June and hope to complete them before the end of the year," he said.

Selling the assets as a single package is one option for IBRA, Indonesia's most powerful economic agency.

If Singapore is not interested, sources said the package would most likely be broken into individual parcels for the industrial estates, hotels and resorts, shipyard and land bank.

The projects were transferred by the once-powerful Salim Group to IBRA in 1999 as part of an agreement to settle its debts to the Indonesian government. Under the agreement, the conglomerate handed over control in 108 companies.