Merger another remake for state banks

By Devi M. Asmarani

JAKARTA (JP): This year's merger of four of the seven state banks into one is yet another makeover in their long history.

Since their establishment as Dutch banks, they have metamorphosed several times, taking on roles as specially assigned national banking institutions, and in their current identity as commercial banks.

Those to be merged are Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia and Bank Pembangunan Indonesia.

They will combine as a new, healthier institution, with combined total assets of almost Rp 100 trillion (US$16.6 billion) and clean of all non-performing loans.

After their conversion to government-owned entities, the banks were delegated tasks in financing particular sectors.

This ended in 1992, in conjunction with the implementation of the banking law, when prescribed roles were removed and they were allowed to operate in commercial banking.

BBD

Bank Bumi Daya (BBD) was originally the Dutch institution De Nederlands-Indische Handelsbank NV.

In 1959, the government nationalized the company and changed its name into Bank Umum Negara.

At the outset, Bank Umum Negara had 15 branches and 1,168 staff. Total assets were about Rp 1.56 million.

In 1965, the government decided to integrate all the state banks into a single bank called Bank Negara Indonesia (BNI). Bank Umum Negara became Bank Negara Indonesia unit four on Aug. 17, 1965.

Three years later, after the integration had proved a failure, the government changed BNI unit four into Bank Bumi Daya, effective Dec. 18, 1968.

Bank Bumi Daya was assigned to operate as a public bank, with priority to finance plantation and forestry sectors.

In 1987, the bank's assets had reached Rp 9.19 billion, and its branches had grown to 89 offices across the country and five abroad. Its staff roll also rose to 7,807.

Most recent data published in the December 1997 edition of the monthly Infobank showed BBD's assets in June last year had reached Rp 25.57 trillion, and its third party fund was Rp 21.46 trillion.

Paid-up capital was Rp 1.42 trillion and equity Rp 2.76 trillion. It has 218 branches.

BDN

Like BBD, Bank Dagang Negara (BDN) was also an incarnation of a Dutch bank, Escompto Bank N.V., which the government forced into liquidation in April 1960.

The finance minister's measure named BDN to take over the assets and debts of Escompto.

BDN was assigned prioritization of the development of the country's mining sector. It was also given the duty of financing other sectors such as agriculture, forestry, plantation, industry, construction, and trade and services.

According to Infobank, the bank's total assets in June 1997 were Rp 32.60 trillion and third party funds were Rp 26.48 trillion.

Paid-up capital was Rp 1 trillion and equity totaled Rp 3.32 trillion.

BDN has 190 offices nationwide, four offshore branches in New York, Los Angeles, Hong Kong and the Cayman Islands, and it operates a representative office in Singapore.

Bank Exim

Bank Ekspor Impor Indonesia (Exim) was established in 1968 by the government to finance production and marketing of export commodities.

After two decades, Bank Exim had developed and expanded its portfolio to retail banking, corporate lending, investment banking and international banking.

It also provided service products to finance small, medium and large businesses, especially export-oriented firms.

Exim has 75 branches, 78 subbranches and 55 offices. Apart from its domestic branches in 63 cities, six branches are located in New York, the Cayman Islands, Paris, Hong Kong, London and Singapore.

The current employee total is 6,260.

Infobank reported Exim's assets reached Rp 25.76 trillion, and third party funds were Rp 21.04 trillion in June last year. Paid-up capital was Rp 1 trillion and equity totaled Rp 2.42 trillion.

Bapindo

Bank Pembangunan Indonesia (Bapindo) was established on Aug. 16, 1960 from the former Bank Industry Negara (BIN).

BIN was created from the Dutch financing company, Bureau Herstel Financiering, when the government nationalized the bureau.

It had provided rehabilitating credit to private and state companies, especially plantation and sugar enterprises.

The government aimed at expanding BIN's operation to finance industry in general.

Bapindo was assigned to provide investment loans for industry, tourism, transportation and maritime sectors.

As of June 1994, the last time financial data on the bank was released, Bapindo's total assets reached Rp 13.99 trillion, and third party funds were Rp 10.32 trillion. Paid-up capital was Rp 612.40 billion and equity was calculated at Rp 1.47 trillion, according to Infobank. The bank had 85 branches.