IBRA raises more than Rp 12t from asset sales

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) has raised more than Rp 12 trillion (US$1.64 billion) in cash from asset sales and loan recoveries, according to the agency's deputy chairman Arwin Rasyid.

"The total proceeds raised by IBRA as of January is between Rp 12 trillion-Rp 13 trillion. We're optimistic that we can reach the government target," he told the House of Representatives commission IX on state budget and banking on Wednesday during a hearing session with the minister of finance.

IBRA is expected to raise some Rp 17 trillion in cash this fiscal year ending on March 31 to help finance the budgetary cost of the government's bank restructuring and recapitalization program.

Arwin said the remainder was expected to come from the sale of its 40 percent stake in the publicly listed auto giant PT Astra International, and a 30 percent initial public offering (IPO) of the nationalized Bank Central Asia (BCA).

He also said the agency could recover an average of Rp 700 billion in bank nonperforming loans under its management.

IBRA has said that it plans to raise some Rp 3 trillion from the offering of BCA. The agency was supposed to complete the BCA IPO next month, but because the agency has been slow in registering the plans at the country's Capital Market Supervisory Agency (Bapepam), the offering has been delayed until March.

IBRA plans to make the registration this week.

The agency has also said that it plans to raise around Rp 1 trillion in cash from the sale of its Astra investment, and it expects to complete the sale next month.

"We can surpass the Rp 17 trillion target with the sale of Astra and BCA," Arwin said.

The agency controls some Rp 600 trillion worth of assets transferred from ailing banks and former bank owners.

IBRA is targeted to raise around Rp 16 trillion in cash in the upcoming April 2000-December 2000 state budget.

The cost of the government's bank restructuring and recapitalization program is estimated to reach some Rp 650 trillion. The government has issued bonds to finance the program, in which the interest rates on the bonds will be covered by the state budget.

Arwin said the agency was also optimistic that it could meet the target.

IBRA had been under strong criticism for its slow rate of progress in the sale of its banking assets. The government installed earlier this year a new chairman at IBRA, Cacuk Sudarijanto, in a bid to accelerate the asset sales and loan recovery. (rei)