IBRA to launch PPAP II

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.