IBRA to complete Niaga's stake sale in two weeks

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency expects to complete the sale of a 20 percent stake in Bank Niaga within two weeks, after missing the initial end-of-August target.

IBRA deputy chairman I Nyoman Sender told reporters on Monday that the agency had so far sold just 2.7 percent of the shares on the Jakarta Stock Exchange.

Sender said the agency had sold the stake for between Rp 30 and Rp 35 per share to mainly local investors.

"We will find more investors and a better price in the next two weeks."

Previously, the agency has set Aug. 31 as the deadline to complete the sale of the shares in the bank, which is included in the country's top-ten in term of assets.

Sender added that Malaysia's Commerce-Assets Holding Bhd., the bank's 51 percent shareholder, was allowed to increase its stake to a maximum holding of 56 percent.

Commerce took the majority shares last year, slashing IBRA's ownership in the bank to 45.1 percent. The remainder is in private hands.

IBRA has sold several local banks in the past two years in an effort to raise cash for the state budget as well as to lure credible investors to the banking sector. The entry of new investors is expected to revive public confidence in the sector, which was shattered by the banking crisis in the late 1990s.

It has sold the majority stake in Bank Danamon, Bank Niaga, Bank Central Asia (BCA). And only recently, in probably the most successful sale of local banks, sold a 30 percent stake in Bank Mandiri through an initial public offering (IPO).

More banks have been slated for sale later this year and next year, namely Bank Rakyat Indonesia in October or November, Bank Lippo (September 2003), Bank Internasional Indonesia (September or October 2003), Bank Permata (2004), Bank Negara Indonesia (2004) and Bank Tabungan Negara (2004).