Permata sale likely to take more than a month

Permata sale likely to take more than a month

The Jakarta Post, Jakarta

The Indonesian Bank Restructuring Agency (IBRA) admitted on
Thursday that it might not be able to conclude the sale of a
controlling stake in Bank Permata by the time its term expires
next month.

If that is the case, the sale of Bank Permata would then be
carried out by the succeeding institution, which is to be set up
at a later date, IBRA deputy chairman I Nyoman Sender said.

"We (IBRA) will definitely run the divestment process. But, if
the current one-month period proves to be insufficient, then the
process will be continued by the new agency," said Sender,
indicating the institution, as yet unestablished, which is to
take over from IBRA and manage the unsold assets.

IBRA is scheduled to be closed down on Feb. 27. The new
institution will be under the supervision of the office of the
State Minister for State Enterprises.

IBRA planned to complete the sale of a 71 percent stake in
Permata before Feb. 27, but as of now -- with less than a month
left to its term -- the sale process has not begun, as the agency
is yet to secure approval from the House of Representatives.

IBRA is also now finalizing the sale of a majority stake in
Bank Lippo.

Over the past two years, it has already sold majority stakes
in other banks under its supervision: Bank Central Asia (BCA),
Bank Niaga, Bank Danamon and Bank Internasional Indonesia (BII).

Permata was formed two years ago from a merger of five ailing
banks controlled by IBRA: Bank Bali, Bank Universal, Bank
Arthamedia, Bank Prima Express and Bank Patriot. It is the 10th
largest lender in the country and currently boasts assets of
around Rp 30 trillion (US$3.5 billion).

Meanwhile, Sender detailed the agency's sale plan of selling a
51 percent stake in Bank Permata through a strategic sale, with
the remaining 20 percent stake to be sold via block sale and drip
sale.

IBRA holds a 91.3 percent stake in the bank.

Sender said the agency was hopeful that a hearing with the
House could be held soon to help kick off the sale process.

IBRA was set up in 1998 to manage assets from indebted former
bankers and to sell them to cover the budget deficit. For 2004,
the government has targeted proceeds from the assets sales at Rp
5 trillion, which the agency must meet before its closure.