Mar'ie asked to clarify bank takeover

JAKARTA (JP): House members demanded an explanation from Minister of Finance Mar'ie Muhammad yesterday regarding the controversial takeover of the publicly-listed Bank Papan Sejahtera by businessman Joppie Wijaya.

Tadjuddin Noer Said, a Golkar member on the House Budgetary Commission, expressed yesterday his concern with a number of aspects of the takeover.

"Why, for example, do the new shareholders of Bank Papan have the same address," he asked the Minister of Finance in a House hearing to discuss the realization of the 1992-93 state budget.

Mar'ie and Chairman of the Capital Market Supervisory Agency (Bapepam) Bacelius Ruru, however, refused to comment on the takeover. "The minister will answer all the questions tomorrow," Ruru said during the hearing, which will proceed until Friday.

Tadjuddin charged Joppie with using different names to avoid the proper legal procedure, under which the transfer of 50 percent of bank shares to a single shareholder must be approved by the Minister of Finance.

PT Infiniti Wahana, a company owned by Joppie, purchased 22.52 percent of the bank's 74.5 million shares last month through the Surabaya Stock Exchange. The shares were priced at Rp 3,000 (around US$1.36) each, slightly lower than the current price level of Rp 3,300 per share.

Infiniti's seven affiliated companies also bought another 29 percent in the same month, making Joppie the majority shareholder with a 52 percent controlling stake.

The stock transaction has since raised public concern. Most business analysts doubt the financial capability of Joppie, founder and a majority shareholder of Steady Safe, a publicly- listed transportation company.

The bank's assets nearly doubled as of the end of last year to Rp 928.82 billion from Rp 457.55 billion at the end of 1993, while its net profits booked significant growth, increasing to Rp 16.90 billion last year from Rp 9.51 billion in 1993. (hen)