IBRA sells assets to Singapore fund

IBRA sells assets to Singapore fund

JAKARTA: The Indonesian Bank Restructuring Agency (IBRA) said on Tuesday it has sold tyremaker Gajah Tunggal and Gajah Tunggal Petrochem Industries to Singapore-based Garibaldi Venture Fund for Rp 1.83 trillion (US$214 million).

"The package was won for Rp1.83 trillion, above the floor price of Rp 1.7 trillion," said Syafruddin Temenggung, chairman of the state agency.

Garibaldi was one of five investors bidding for the two companies, he told a press conference.

The proceeds from the sale will help meet the state budget deficit.

IBRA took over Gajah Tunggal from tycoon Sjamsul Nursalim as a form of debt settlement after his Bank Dagang Negara Indonesia received an emergency loan from the central bank during a huge bank bailout in the late 1990s.

Indonesia is targeting a budget deficit of Rp 24.9 trillion or 1.2 percent of gross domestic product next year, compared with 1.8 percent estimated for this year. --AFP