IBRA sells ownership in 61 companies

IBRA sells ownership in 61 companies

Agence France-Presse, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) on Wednesday
launched the sale of its ownership in 61 companies as part of
efforts to meet its targeted full-year contribution to the state
budget.

IBRA deputy chairman Taufik Mappaenre said the assets offered
in this sale program are companies mainly operating in property,
edible oil and fats, textiles, pulp and paper, plywood,
contracting, ceramics and other industries.

He said IBRA will offer equities and loans from companies
grouped under four holding companies -- Holdiko Perkasa, Kiani
Wirudha, Cakrawal Gita Pratama and Hoswarya Persada.

The sales process is expected to be closed on June 25 at the
latest.

IBRA was set up in early 1998 to restructure the foundering
local banking system after the regional financial criss. It is
disposing of assets which were pledged to settle debts owed to
the government following a massive bank bailout.

The government's asset sales program is expected to raise some
Rp 34 trillion (US$3.7 billion) this year to help plug the budget
deficit and retire domestic debt.

The government is aiming to raise Rp 26 trillion of this from
sales of assets controlled by IBRA and a further Rp 8 trillion
from privatizing state-owned firms.