IBRA to divest 30% stake in PT Astra in January

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) said on Monday it would sell 30 percent of its stake in auto giant PT Astra International in January in a bid to raise between Rp 2 trillion and Rp 3 trillion (about US$428.5 million).

IBRA chairman Glenn Yusuf said the divestment in the country's largest automotive producer would be done through a private placement.

"We'll tender it in January... we'll first sell 30 percent," said on the sidelines of the congress of the Indonesian Property Developers Association.

IBRA currently controls a 40 percent stake in Astra.

Glenn said New-Bridge Capital and Gilbert Global Equity Capital expressed interest in buying the Astra shares.

Astra International shares lost Rp 100 to close at Rp 3,325 in active trading on Monday.

IBRA has targeted raising Rp 17 trillion in the current fiscal year ending March 2000 to help finance the country's bank recapitalization program.

The agency has so far raised Rp 10.3 trillion and is confident it will meet the target.

IBRA controls some Rp 600 trillion worth of various bank assets, including more than Rp 230 trillion worth of nonperforming loans.

The agency also plans to sell its stake in Hong Kong-based First Pacific to raise Rp 1.5 trillion, and to float a 30 percent stake in Bank Central Asia (BCA) through an initial public offering in the near future to raise Rp 3 trillion.

Coordinating Minister for the Economy, Finance and Industry Kwik Kian Gie said on Monday that the government would disclose the names and status of the 80 largest indebted business groups in IBRA to expedite the debt restructuring process.

"This is aimed at expediting the debt restructuring process," he said on the sidelines of a seminar.

Kwik said the government was undecided on when it would disclose the information, pending input from the business sector.

He said that if the business community opposed the plan, the government would seek the opinion of the public and the legislature.

"Let's see whose opinion is stronger. If it's the public's, then we'll have to disclose it," Kwik said.

IBRA recently said that it planned to disclose the restructuring status of its 20 largest indebted business groups on Wednesday to provide transparency.

IBRA has been criticized for not being fully transparent in handling the bad debtors, which are mostly companies belonging to influential businesspeople. (rei)