IBRA to sell more BII shares later this month: Syafruddin

IBRA to sell more BII shares later this month: Syafruddin

The Jakarta Post, Jakarta

An additional 20 percent stake in Bank Internasional Indonesia
(BII) will be sold later this month through a block sale,
following last month's 51 percent stake sale in the bank, the
Indonesian Bank Restructuring Agency (IBRA) said on Wednesday.

IBRA chairman Syafruddin Temmenggung was quoted by Dow Jones
as saying there would be more details on the plan available after
the official signing of a sale and purchase agreement (SPA) with
Sorak consortium -- the winning bidder of the 51 percent stake.
The signing is expected to take place on Friday.

Sorak consortium, led by South Korea's Kookmin Bank and
Singapore's Temasek Holdings Pte. Ltd, beat Panin consortium in
the auction.

The sale reduced IBRA's ownership in the bank to 42.7 percent,
with the remainder in the hands of private investors.

BII's sale program forms part of IBRA's goal to strengthen the
banking sector while also generating proceeds for financing the
budget deficit. BII is one of the country's top-ten banks,
boasting assets more than Rp 36 trillion (US$4.26 billion) and a
total 1.1 million customers.

In addition to BII, IBRA has also sold three local banks in
the past two years, namely Bank Central Asia, Bank Niaga and Bank
Danamon.

A consortium led by Temasek was the one that bought a 51
percent stake in Danamon.

Syafruddin expected to rake in about Rp 2.5 trillion from the
auction of a total 71 percent stake in BII.

Less than two months away, the agency is now pressing ahead
with its asset-sale programs in a bid to meet a full-year target
of Rp 26 trillion.

As of October, Syafruddin said some Rp 16 trillion in cash had
been distributed to state coffers, around Rp 10 trillion short of
the target.

Syafruddin is optimistic the agency can meet the target.

"Just relax: We still expect Rp 2.5 trillion from BII, while
there are also other sale programs. Hopefully, we can make it,"
he said.

Asked about next year's Rp 5 trillion target, as stated in the
2004 state budget, Syafruddin said that, while admitting to never
having been consulted about the figure, the agency would do its
utmost to meet it.

He said that up to now, IBRA had never missed a target, even
once.