IBRA plans to sell assets worth Rp 500b next month
IBRA plans to sell assets worth Rp 500b next month
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
said on Friday it would sell assets under its authority worth
between Rp 400 billion (US$50 million) and Rp 500 billion next
month.
IBRA vice chairman Farid Harianto said some of the assets
would be in the form of portfolio assets at companies listed on
the Jakarta Stock Exchange. He declined to disclose the names of
the companies.
"This is the result of our recent road show abroad. We are
currently negotiating with some foreign investors on a number of
assets. We hope we can raise between Rp 400 billion and Rp 500
billion," he said.
Farid would not disclose the assets for sale, but he said they
were among assets pledged by seven large business groups to IBRA
following the failure of their banks.
The seven business groups include the Salim Group (controlled
by Sudono Salim), the Gadjah Tunggal Group (Syamsul Nursalim),
the Danamon Group (Usman Admadjaja), Surya and Subentra
(Sudwikatmono), Ongko (Kaharudin Ongko) and groups linked to
Mohamad "Bob" Hasan.
Assets pledged by the seven groups include cash, and equity in
215 companies. They are worth more than Rp 90 trillion.
Farid said the value of assets under IBRA control would
continue to increase, as it was in the process of recouping
assets from owners of 38 private banks closed down by the
government earlier this year and eight taken over banks.
He said that IBRA had recently sold $21 million worth of
assets under its control, including a private jet belonging to
Bob Hasan and stakes of ceramic tile maker Keramika Indonesia
Assosiasi (KIA), owned by the Ongko Group.
He said the agency would not conduct a fire sale of the
assets, as it had four years to dispose of them.
The majority of the assets are agribusiness firms (35) and
property ventures (24 percent). Other assets are companies
operating in chemicals (14 percent), automobiles (6 percent),
plywood (5 percent), food (4 percent), cement (3 percent) and
others (6 percent).
He said the agency was studying various options on how to
dispose of the assets, including an initial public offering on
the stock market.
Farid said that in addition IBRA would continue to sell non-
core assets, including artwork, office equipment, furniture, real
estate, automobiles and motorcycles.
The sale of 698 automobiles, 303 motorcycles and 867 pieces of
artwork has generated Rp 53.1 billion for IBRA.
The non-core assets were mostly acquired from closed private
banks.
Currently, IBRA has 12 banks under its management, four of
which are on offer to private investors to participate in their
recapitalization. The four banks are Bank Central Asia, Bank
Danamon, Bank PDFCI and Bank Tiara.
IBRA, along with the government, is currently negotiating with
foreign investors who held an interest in Bank Niaga, which was
taken over by the government last month after its owners gave up
on their bank's recapitalization efforts.
Interested foreign investors include ABN Amro Bank, GE
Capital, New Bridge Capital and Global Alliance.
Farid said the auditing of seven other taken over banks should
be completed by next week.
"After the audits are completed, we will determine resolution
strategies for each of the seven taken over banks, hopefully by
mid-June." (rid)