IBRA to launch PPAP II

The Indonesian Bank Restructuring Agency (IBRA) will auction off property worth Rp 2.1 trillion (about US$230 million) starting tomorrow, with the recovery rate expected to reach 120 percent.

Known as PPAP, the program is the second in recent months, after IBRA completed the successful first round of auctions in August last year.

"As the offered prices are mostly below market prices, the auction is expected to draw lots of bidders, as occurred in the first round.

"I predict the recovery rate will be between 110 and 120 percent," Panangian Simanungkalit, a property consultant hired by IBRA, said on Monday.

IBRA booked a 139 percent recovery rate in last year's program. It collected Rp 400 billion from the sales of assets with a book value of Rp 285 million.