IBRA raises more than Rp 12t from asset sales

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)