IBRA plans to sell more large assets this year

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) will include an oil palm plantation firm previously owned by the Salim Group in its asset disposal plans this year, according to a senior official at the agency.

Dasa Sutantio, the group head of IBRA's asset disposal division, said on Wednesday that a shipping operation previously owned by timber tycoon Mohamad "Bob" Hasan, and a tiremaker previously owned by Sjamsul Nursalim would also be included.

"We'll try to sell these companies this year," he told the media on the sidelines of a seminar.

Dasa said the agency had yet to decide whether to sell the companies through an initial public offering (IPO) or by other methods, including sales to strategic investors.

The companies are part of various assets surrendered by former bank owners to repay their debts to the government.

The Salim Group, which owned Bank Central Asia (BCA), surrendered shares and assets in 107 companies including 24 oil palm plantation companies.

IBRA is currently in the process of selling between 15 percent and 30 percent of BCA, which was nationalized by the government in 1998, through an IPO which is expected to take place next month.

Sjamsul Nursalim, which owned the now defunct Bank BDNI, surrendered shares and assets of its 12 companies, including three companies operating in the automotive and tire industry.

The tire-making firm, PT Gadjah Tunggal, or otherwise known as GT Tire, is one of Asia's major tire exporters.

Bob Hasan, which co-owned the closed Bank Umum Nasional, surrendered shares and assets in 30 companies, including two shipping companies.

The shipping firms are PT Karana Lines and PT Wasesa Lines.

Karana is an international shipping line operation, while Wasesa is a domestic shipping line operation.

IBRA is targeted to raise some Rp 18.9 trillion in cash this year to help finance the state budget. Proceeds from the Bank Central Asia IPO will be included.

IBRA said it had met the target to raise Rp 17 trillion in the 1999/2000 budget year ending in March.

Dasa said some Rp 3.8 trillion came from the asset disposal, including the recent sale of publicly listed automaker PT Astra International.

He said another Rp 7.2 trillion came from the recovery of nonperforming loans managed by the agency, Rp 2.8 trillion from interest and other income and another Rp 5 trillion from the refund of "excess equity injection" by the government for recapitalized banks.

It is not clear whether the Rp 5 trillion was in the form of cash or bonds.

The government recapitalized several publicly listed banks last year. The government financed 80 percent of the recapitalization cost by injecting bonds, while the remaining 20 percent was provided by the bank owners.

But it turned out that the minority shareholders of the listed banks participated in the recapitalization program by purchasing the rights issue amounting to some Rp 5 trillion.

This allowed IBRA to refund the excess equity injection made by the government.(rei)