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)