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.