Jamsostek earmarks Rp 800b for Permata Bank shares

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.