IBRA set to sell Astra, BCA, other liquid assets
IBRA set to sell Astra, BCA, other liquid assets
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) is preparing to sell several of its most liquid assets this fiscal year in a bid to meet the Rp 17 trillion fund target to be raised in the period ending March 2000, the agency's deputy chairman Farid Harianto said on Thursday.
Farid said the asset disposal included plans to sell its stake in publicly listed auto giant PT Astra International, cementmaker PT Indocement Tunggal Prakarsa and Hong Kong listed First Pacific.
He said the agency also planned to sell its stake in nationalized Bank Central Asia, integrated shrimp industry PT Dipasena and a plantation firm through an initial public offering (IPO).
"We will cooperate closely with the management of each company when implementing our plans," Farid told The Jakarta Post and Kompas in an interview.
He said the agency planned to sell about half of its 40 percent stake in Astra.
Asked about the size of the BCA IPO, Farid said: "It will be up to 30 percent."
Farid declined to name the plantation firm.
Farid also said IBRA had identified a recapitalized private bank, in which the government had at least an 80 percent stake, to be included as a backup in the asset disposal plans.
IBRA is in control of various fixed assets and has substantial holdings in companies handed over by former bank owners to repay debts to the government.
The agency is currently the single controlling shareholder in Astra.
Reports earlier said that Astra founder and former owner William Soeryadjaya were teaming up with New-Bridge Capital and Gilbert Global Equity Capital to buy a 19.9 percent stake in Astra.
William was forced to sell his Astra stake in 1993 to help pay the obligations of his eldest son's dissolved Bank Summa.
Farid said he was only made aware of William's plans from newspaper reports.
IBRA earlier said it planned to float BCA either in December or in January.
The agency has appointed Lehman Brothers, Merryl Lynch, PT Bahana Securities and PT Danareksa Securities to lead the BCA IPO.
BCA, the country's largest private bank, was nationalized by the government last year after the bank breached the legal lending limit.
In addition to owning various companies, IBRA also controls bad loans worth some Rp 230 trillion, and holds a minimum 80 percent stake in several major private banks recapitalized by the government.
IBRA, an agency of the Ministry of Finance, has set a target of raising some Rp 17 trillion in the 1999/2000 fiscal year in a bid to help finance the country's bank restructuring costs during the period.
Farid said the agency had so far raised some Rp 8 trillion.
He said the agency needed to sell liquid assets in order to quickly raise essential funds, but added that it would try to maximize the sale proceeds.
"If the domestic political situation improves after the presidential election, we're optimistic we will meet the target," he said.
Indonesia is set to hold a presidential election on October 20. The country has been plagued with rioting and unrest in the lead-up to the election.
"We're now making (asset disposal) preparations, but if the political situation continues to deteriorate in December we might have to call off the plans," Farid said.
He acknowledged that the Bank Bali scandal had "demoralized" IBRA staff, and hampered the agency's programs.
The previous House of Representatives called on President B.J. Habibie to suspend senior IBRA officials including its chairman Glenn S. Yusuf, deputy chairman Pande Lubis and Farid himself for their alleged involvement in the bank scandal.
The Bank Bali scandal centers around the "illegal" transfer of some US$80 million from the bank to a private firm linked to the inner circle of Habibie. (rei)