Jamsostek earmarks Rp 800b for Permata Bank shares

Ridwan Max Sijabat, The Jakarta Post/Jakarta

State pension fund Jamsostek has set aside Rp 800 billion (US$88.8 million) to buy the government's 71 percent share in Permata Bank but it is still selecting suitable partners for the bid.

Jamsostek president Achmad Junaidi said here on Friday the company management decided to acquire a stake in the bank in the expectation of using Permata's networks to improve Jamsostek's services to its clients.

"Permata is the seventh major private bank in Indonesia, it has a wide network across the country and it has booked a solid performance," he said.

He envisaged integrating the services of both companies, with Jamsostek's members being able to check their pension funds using Permata cards.

Besides Jamsostek, several local banks such as Bank Rakyat Indonesia (BRI), Bank Mandiri, Panin Bank, Bank Artha Graha and Bank Buana and foreign banks, including the Bank of the Philippines, Standard Chartered Bank and Singapore-based Temasek, which controls 51 percent of Bank Danamon, have expressed interest in the divestment.

All must submit their bids to the Asset Management Company by next Friday. The government's shares at Permata are worth more than Rp 1.8 trillion.

Djunaidi confirmed Jamsostek had received an official offer from BRI to form a consortium to acquire the Permata shares, but no decision had yet been made.

"It's not wrong for Jamsostek to consider an alliance with BRI and other state-owned banks, as aside from giving an investment certainty and strengthening the state-owned banks' networks, it would improve Permata's performance in the future," he said.

Jamsostek director of investment Samuel Tobing said the firm would hold final negotiations with local banks and foreign investors early next week to form a consortium for the bid.

When asked to confirm rumors Jamsostek might join with Artha Graha to acquire Permata, Djunaidi said such an alliance was unlikely because the bank did not meet the criteria set by Jamsostek's management.

Bank Artha Graha is partly owned by businessman Tommy Winata.