Vice chairman of IBRA is replaced

Vice chairman of IBRA is replaced

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
deputy chairman Sumantri Slamet will be appointed as the agency's
second top man to replace outgoing vice chairman Arwin Rasyid,
Finance Minister Prijadi Praptosuhardjo said here on Thursday.

The statement came amid rumors that there would be a major
reshuffle in the agency, which manages over Rp 600 trillion worth
of assets surrendered by former owners of closed and nationalized
banks.

But Prijadi dismissed the shake-up plan and he also denied
news reports that the agency's chairman Cacuk Sudarijanto would
soon be replaced.

"Arwin will be replaced by Sumantri Slamet," he told reporters
prior to a meeting with members of the House of Representatives
(DPR).

Sumantri is currently the agency's deputy chairman for
administration and support.

Cacuk also dismissed claims on Thursday that he would soon be
replaced by former president of state-owned Bank Negara Indonesia
(BNI) Widigdo Sukarman.

"Until now, I'm still the chairman of IBRA," Cacuk told
reporters.

Earlier this week, Arwin was appointed as the new president of
the publicly-listed Bank Danamon, replacing Milan Shuster.

Bank Danamon was nationalized by IBRA, a unit under the
finance ministry, in 1998 to save the bank from bankruptcy as the
country's financial crisis deepened.

Arwin's replacement and rumors that Cacuk would also be
dismissed had been swirling of late amid concerns over the slow
progress IBRA made in its corporate debt restructuring and asset
sale programs, including the recent delay in the sale of Bank
Central Asia (BCA) and Bank Niaga.

The power to replace the IBRA chairman is in the hands of the
President, while replacing the agency's deputies or vice chairman
is under the authority of the finance minister.

Cacuk is also the Junior Minister for the Reconstruction of
the National Economy.

Separately, assistant to the coordinating ministry for
economic affairs Dipo Alam said on Thursday that the
International Monetary Fund could understand Indonesia's decision
to delay the divestment of government ownership in BCA and Bank
Niaga.

Dipo said that the government had explained to the IMF that
the delay was made at the request of the House of Representatives
in a bid to obtain optimum proceeds.

"The IMF is willing to listen to the reason for the delay, and
we have clarified it with them and they seemed to understand,"
Dipo told reporters following a meeting the IMF and World Bank
executives.

Those attending the meeting included IMF Jakarta
representatives John Dodsworth, World Bank country director for
Indonesia Mark Baird, BCA president Djohan Emir Setijoso, and
Bank Mandiri president E.C. Neloe.

The BCA and Bank Niaga sale was initially expected to
contribute to IBRA's target this year to raise around Rp 18.9
trillion (US$2.2 billion) in cash to help plug the current budget
deficit. (rei)