Salim won't bid BCA: Laksamana

Salim won't bid BCA: Laksamana

Berni K. Moestafa, The Jakarta Post, Jakarta

Business tycoon Anthony Salim told the government that the
Salim Group would not attempt to regain control of the bank it
once owned, Bank Central Asia (BCA), giving his word to State
Minister of State Enterprises Laksamana Sukardi.

Laksamana said on Tuesday that he told Salim right from the
onset of launching BCA's sale not to join the bidding process.

"I called up Salim and told him not to join. He answered he
would comply with the government," Laksamana told reporters after
a coordinating meeting between economic ministers.

When asked whether Salim had given any assurance to convince
the government, Laksamana said that Salim had given only his
word.

"As a minister, I guarantee that Salim will not buy back BCA,"
he added.

Suspicion has surfaced that the giant Salim business group was
among the bidders vying for a 51 percent stake in BCA.

Once the largest private bank, BCA is currently on sale by the
Indonesian Bank Restructuring Agency (IBRA), which took over the
bank after bailing it out from the 1997 financial crisis.

Until Salim repays its debts to the government, the group may
not regain control over BCA.

Founded by Soedono Salim, the father of Anthony Salim, BCA is
one of IBRA's most precious assets. BCA ranks first among the
local retail banks, partly thanks to its wide network of branch
offices and ATMs across the country.

The government has made it clear numerous times that it wanted
only reputable buyers gaining management control over the bank.

But since first launched in 2000, BCA's sale has been delayed
three times in part due to political interference.

On the last attempt, only two final bidders emerged, one of
which was rumored to be acting on behalf of Salim. IBRA called
off the bidding process, citing low bids.

Now BCA's sale has become a test case for the government to
push ahead with key asset disposals despite local complications.

But, six out of the eight bidders for BCA, have to prove that
they had no links to the Salim Group.

Given that the government has apparently failed in another
litmus test to sell cement maker PT Semen Gresik to Mexico's
Cemex SA de CV, its credibility in selling other state assets
hinges much on the success of BCA's sale.

The government is expecting to secure Rp 6.5 trillion from the
sales of state companies this year. It will target another Rp 8.4
trillion from IBRA asset sales. The proceeds are necessary to
help cover this year's state budget deficit.