Soemitro named commissioner of Bank Niaga

JAKARTA (JP): Bank Niaga shareholders appointed yesterday Indonesia's most senior economist Soemitro Djojohadikusumo as chief commissioner in a shake-up following the acquisition of the bank's majority shares by Tirtamas Group.

The extraordinary shareholders' meeting, however, decided to retain Gunarni Soeworo as president.

Soemitro, a former economic minister, is the father of Hashim Djojohadikusumo, Tirtamas's chairman. He replaced Julius Tahija, the previous owner.

"The new management will continue the successful business strategy and rapid development of Bank Niaga," Hashim said.

The meeting installed new commissioners, replacing all but three members from the previous board.

Besides Soemitro, other new commissioners include Hashim S. Djojohadikusumo, Moeljoto Djojomartono, Honggo Wendratno, Al Njoo and Siswanto Sudomo. The three commissioners retained are George S. Tahija, Suratno Hadisuwito and Haroen Al Rasjid.

There is only one new face on the board of directors: Priaswijanto Sabrawi, a director of PT Tunasmas Panduarta, Tirtamas Group's financial holding company, who replaces Peter B. Stok as vice president.

The other directors -- Gunarni, Zulkifli Djaelani, Arwin Rasyid, Paulus Wiranata and Andi Mohammad Hatta -- are from the old board.

Gunarni said the new management has wide expertise in banking and finance. "The new board is committed to strengthening Bank Niaga's performance," she said.

The widely diversified Tirtamas Group bought 50 percent shares in publicly listed Bank Niaga for about Rp 756.24 billion ($291 million) in July.

Established in 1985, Bank Niaga is the seventh largest private bank in Indonesia with Rp 7.9 trillion total assets and Rp 1.3 trillion market capitalization as of December 1996.

Its net income jumped by 46.1 percent to Rp 63.53 billion in the first semester from Rp 43.48 billion a year earlier. Its total assets for this year's first half soared 26.67 percent to Rp 8.6 trillion.

Bank Niaga listed its shares on the Jakarta and Surabaya stock exchanges in 1989. It has 63 branches in Indonesia and offices in Los Angeles, the Cayman Islands and Hong Kong.

Tirtamas bought 40 percent of Tahija family's stake in Bank Niaga and another 10 percent through a public tender offer in July.

Tahija's wholly owned companies, PT Austindo Teguhjaya and Austindo Nusantara Jaya, sold 75.63 million shares in Bank Niaga, or about 40 percent of the bank's 189.08 million shares, at Rp 8,000 per share.

Julius Tahija said his family sold their shares because they wanted to focus on mining and power generation business.

Tirtamas holds equity stakes in Bank Papan Sejahtera 19.8 percent, Bank Pelita 100 percent, Bank Kredit Asia 100 percent, Merril Lynch Indonesia securities company 20 percent and MetLife Sejahtera Insurance 34 percent.

Tirtamas, the majority shareholder in publicly listed PT Semen Cibinong, has five core businesses: cement, financial services, oil and petrochemicals, international trading and agribusiness.

The shareholders' meeting yesterday also approved the proposed acquisition of a 100 percent share in Hong Kong's Indover Asia Limited for $47 million, a holder of a restricted banking license with $403 million total assets.

Bank Niaga hopes to expand business throughout the Asia- Pacific region, including the enhancement of financial services for its Indonesian customer base.

Gunarni called the acquisition a "close fit" for the bank's business.

Bank Niaga's existing business in Hong Kong is currently conducted through its subsidiary, Niaga Finance Ltd, a depositor company, she said.

Bank Niaga will merge with Niaga Finance and Indover Asia. "The new company will focus on international merchant banking and international trade finance," she said. (08)