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