IBRA raises Rp 16.5t in first half

The Indonesian Bank Restructuring Agency (IBRA) announced on Friday that it had collected Rp 16.5 trillion in cash during the first half of this year from the sale of assets and loans.

IBRA chairman Syafruddin Temmenggung said the collected amount accounted for almost 40 percent of the Rp 42 trillion full-year target, which is mainly to be used to help plug the gaping 2002 state budget deficit.

Syafruddin was also optimistic that the agency would meet the full-year target.

While planning to sell a majority stake in three more recapitalized banks this year, it is currently also in the process of selling 2,500 credit portfolios worth over Rp 150 trillion.

However, there has been concern that IBRA might not be able to meet the target amid signs that the sale of bank shares could be further delayed due to the current weak market sentiment.

Analysts have said the weak response in the sale of Bank Niaga shares in the stock market this week, could prompt the agency to push back the sale of a majority stake in the bank in mid- September this year.

Aside from banks' divestment, IBRA is now also placing the Rp 150 trillion of non-performing loans for sale. But many doubt whether this loan sale program will attract credible bidders as local banks seem to be uninterested. -- JP