Use of BNI proceeds undecided

BALI (JP): Coordinating Minister for Economic and Financial Affairs Saleh Afiff says the government has not decided how the proceeds from the listing of Bank BNI later this year will be used.

Saleh said state-owned BNI, the largest bank in the country, would be partly listed on the domestic stock exchanges and the issue will therefore not bring in foreign exchange.

"So the proceeds from the listing cannot be used for foreign debt repayments. Maybe they will just be used to consolidate BNI's own financial structure," he told reporters here yesterday.

"I am not sure yet what the minister of finance, as the government nominee shareholder in the bank, has in mind," he said.

Saleh said that several other state-owned enterprises are also being prepared for public listing, including the electricity company PT Perusahaan Listrik Negara and road developer PT Jasa Marga, but he added that the government will take it slowly.

"We can't list them all at once, because it may ruin the market. We'll do things gradually," he said.

Saleh dismissed concerns that the recent riots in Jakarta would hold up BNI's plans to go public.

Saleh said the riots, which left at least three people dead and dozens injured, only had a "temporary impact" on the stock and money markets, as the rupiah rebounded only days after a severe drop against the dollar.

"There is nothing to worry about, even in the run-up to the 1997 general elections," he said.

But Saleh acknowledged that before BNI makes its initial public offering, the government would "consider the current situation".

He cited the success of Bank Indonesia's issuance of Yankee Bonds in New York as evidence that investors still have confidence in Indonesia.

"So we will continue with our plans to list BNI, which, hopefully, will happen later this year," Saleh said. (pwn)