IBRA says it has recovered Rp 2.7t in loans

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) announced on Wednesday that it had recovered some Rp 2.7 trillion in loans including bad debts owed by debtors of banks which have been closed down, nationalized banks, and privatized banks.

"By the end of September 1999, IBRA had recovered some Rp 2.7 trillion from a loan collection effort," agency deputy chairman Eko S. Budianto said in a press release.

The agency controls an estimated of Rp 220 trillion worth of bad loans handed over by closed banks, nationalized banks and state banks.

The agency also said that it had struck a Rp 750 billion debt restructuring deal with several corporate debtors including Citra Marga Finance BV, PT Daya Manunggal, PT IRC Inoac Indonesia, PT Jakarta Setiabudi Properti, PT Mega Rubber, Mulia Garment Group, and PT Puri Bunga Beach Hotel.

"We have also reached a significant development in the restructuring of PT Chandra Asri. In the near future, we expect the audit on Chandra Asri could provide a description of its debt capacity so that we could have a starting point to decide on the best restructuring alternative," IBRA said.

IBRA also announced that it has managed to sell PT Standard Toyo Polimer for US$15.1 million.

The agency had previously sold PT Pacific Indomas Plastic Indonesia for $4.2 million to Dow Chemical, PT Indo Amerika Keramik for $5.8 million to American Ceramics, shares in PT Indofood worth Rp 365 billion through the Jakarta Stock Exchange and a private jet plane owned by former bank owner Mohamad Bob Hasan for $3.1 million.

The various fixed assets were handed over to IBRA by former bank owners to repay their debts to the government.

The agency is in control some Rp 600 trillion worth of assets including bad debts, investment in privatized banks and fixed assets.

The agency has a mission to raise funds from the selling and divestment of the assets along with loan recovery to help finance the country's Rp 550 trillion bank restructuring cost.

The agency's target is to raise Rp 17 trillion in the current 1999/2000 fiscal year.

IBRA reiterated that the target could be achieved only if the domestic political situation improves after the presidential election on October 20. (rei)