IBRA plans to sell another 26 firms this year
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) plans to sell its ownership of around 26 companies in the remaining period of this year in a bid to raise some Rp 7.2 trillion (US$795.58 million) in cash, according to agency vice chairman Arwin Rasyid.
Arwin said on Wednesday that Rp 3.62 trillion was expected to be raised in the July-September period, while the remaining half in the October-December period.
"We're optimistic we can meet the target. But this will all depend on the market condition," he told reporters at a press conference unveiling the agency's asset disposal plan.
He explained that the companies to be sold were part of the fixed assets transferred by former bank owners to the agency to repay their debt to the government.
In a letter of intent to the International Monetary Fund, the government has promised that IBRA would disclose its quarterly asset disposal time table.
Arwin said that in the third quarter, the companies to be sold included mining firm PT Karimun Granite, Mosquito Coil Group, Wisma BCA office building, and plantation companies.
These companies came from the Salim Group, the former owner of Bank Central Asia (BCA).
Arwin said that the agency would also sell five financial institutions transferred by Usman Admadjaja, the former owner of Bank Danamon.
In addition, IBRA would also sell its share of securities firm PT Ficor Sekuritas, Bank Daiichi Kangyo Indonesia, and Bank Hanvit Indonesia.
Arwin said that the disposal program in the fourth quarter included PT Oleochemical, private TV station PT Indosiar, trading firm PT Indomart, consumer firm PT Indomilk, chemical firm PT Sulfindo, food seasoning maker PT Indomiwon, and mining firm PT Salim Coal.
These companies were transferred from the Salim Group.
The other companies to be sold included those transferred from Usman Admajaja; Bob Hasan, the former owner of the now defunct Bank Umum Nasional; Modern Group, the former owner of the now closed down Bank Modern; and Sjamsul Nursalim, the former owner of the now defunct Bank BDNI.
The complete details of the companies to be sold this year can be assessed from IBRA's website (http://www.bppn.go.id).
Arwin said that the selling of the companies were part of IBRA's asset disposal program in a bid to raise a total of Rp 18.9 trillion to help finance the current 2000 state budget.
He said that so far the agency had raised around Rp 4.42 trillion, which is 27 percent above target.
He said that out of the Rp 4.42 trillion cash raised, Rp 3.27 trillion came from IBRA's asset management credit (AMC) division, which is responsible in restructuring and recovering some Rp 256 trillion in bank non-performing loans (NPLs).
The NPLs have been transferred from the country's recapitalized banks, and closed down banks.
Arwin said that in the third quarter, the AMC division was targeted to recover around Rp 4.05 trillion, and Rp 3.89 trillion in the fourth quarter.
The agency has named three banking agents to handle the restructuring and loan recovery of NPLs with individual size of between Rp 5-50 billion.
IBRA is focusing to restructure and recover the NPLs owed by its top 21 debtors owing more than Rp 85 trillion in bank debt.
The agency has signed a debt restructuring agreement covering 35 percent of the total debts of the 21 debtors.
Once the loans have been restructured, IBRA is planning to sell them back to the banking industry including local and foreign banks.
Arwin also said that IBRA was planning to divest its ownership in the publicly listed Bank BCA and Bank Niaga, pending the approval of the House of Representatives.
The agency has nationalized the two banks.
Arwin declined to say the size of the divestment, but he said that the agency was determined to sell a majority depending on the market condition.
IBRA has recently sold 28.5 percent of Bank BCA through an initial public offering raising around Rp 900 billion.
The bank divestment program is expected to fetch around Rp 3 trillion to contribute to the Rp 18.9 trillion target. (rei)