IBRA to sell suspended bank's noncore assets

IBRA to sell suspended bank's noncore assets

JAKARTA (JP): Independent appraisers interested in
participating in the assessment of suspended banks' noncore
assets which will be auctioned off should submit their proposals
by Oct. 19, the Indonesian Bank Restructuring Agency (IBRA) said
on Wednesday.

The agency announced that the appointment of appraisers was
part of the process to auction the noncore assets, which includes
cars and motorcycles. The auction process will be implemented at
the end of November.

Based on the existing law, the auction of assets owned and
seized by the state will be organized by the State Auction House,
IBRA said.

It added that the same deadline was given to storage service
providers with facilities in the greater Jakarta area to keep the
assets.

"The storage companies are needed to centralize the upkeep
(storage) and secure and administer the assets," IBRA said.

"The process of appointing independent appraisers and storage
service providers by the Asset Management Unit is made to ensure
a fair and transparent process of handling the assets of
suspended banks, and to protect their value," it said.

The Asset Management Unit is a division of IBRA that has the
responsibility of managing and selling the assets of troubled
banks.

IBRA was established in January as part of the government
program to guarantee bank deposits, recover Bank Indonesia
liquidity support given to distressed banks and restructure the
country's ailing banking sector.

The restructuring program is expected to be completed by the
end of this year.

Since April, the government has suspended 10 banks which had
received massive liquidity support to help meet withdrawals from
panicked depositors. (rei)