No preference for U.S. investors: IBRA

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) dismissed on Tuesday allegations that the agency prefers investors from a certain country for buying assets under its management, saying it would always give the first option to local investors.

"We will give top priority to local investors if domestic and foreign bidders offer the same prices," IBRA spokesman Franklin Richard said.

Franklin said the agency would sell assets only to investors who could offer the highest prices and who were committed to helping the country's economic recovery.

IBRA is now managing about Rp 600 trillion (US$85.7 billion) in assets taken over from closed and nationalized banks. The agency was tasked to raise Rp 17 trillion from asset sales for the state budget in the current fiscal year.

"We rejected the opinion that we would sell assets mostly to investors from a particular country such as the United States," he said, adding that asset sales were made through competitive bids.

He said the agency had in the past offered assets to investors from other countries like New Zealand and England.

People's Consultative Assembly Speaker Amien Rais and finance minister Bambang Sudibyo complained recently that the U.S. ambassador allegedly lobbied them not to replace Glenn Jusuf as the head of IBRA.

Commenting on the agency's cooperation with foreign consultants, Franklin said the cooperation was based on sound business principles.

He denied the agency appointed Goldman Sach investment bank as its consultant.

Franklin acknowledged, though, that the agency appointed Lehman Brothers investment bank as its consultants in view of its global network. (06)