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IBRA to sell Salim assets to meet 2001 target
JAKARTA (JP): The
Indonesian Bank Restructuring Agency (IBRA) said on Monday it planned to
sell assets of the giant Salim Group to meet the agency's 2001 budget
sales target of Rp 27 trillion (US$3.1 billion).
in various businesses like plantations, properties, and hotels remain our
mainstay for IBRA's revenue," IBRA chairman Cacuk Sudarijanto was
quoted as saying by news agency Antara after attending the
presentation of the 2001 state budget draft at the House of
In the 2001 draft
the government stipulated a sales target of Rp 27 trillion for IBRA,
higher than the agency's sales target of Rp 18.9 trillion this year.
The current budget
year, however, only runs from April to December 2000, as the government
adjusted from a March-April budget year to a calender based budget year.
Cacuk expressed his
optimism that IBRA would meet its next sales target, estimating that the
biggest contribution would come from the agency's Asset Management Credit
The AMC division is
in charge of restructuring non-performing loans of banks IBRA has taken
The Salim Group has
handed over to IBRA majority interest in 107 companies as part of the
debt settlement of its affiliated Bank Central Asia (BCA). IBRA maintains
the companies under the holding company PT Holdiko Perkasa.
among others, 25 property firms, 24 palm plantations, 10 food &
consumer product firms, nine oleochemical firms, five coal & granite
firms, four plywood firms, four sugar firms, and one communication
Salim and IBRA
initially valued Holdiko assets at Rp 50 trillion, but former
Coordinating Minister for the Economy Finance and Industry, Kwik Kian Gie,
argued they were only worth Rp 20 trillion.
The agency expects
to sell the assets over the next four years through initial public
offerings, direct placements and auctions.
To meet IBRA's 2001
sales target, Cacuk said, the agency also would rely on its Asset
Management Investment (AMI) division and sales of nationalized banks.
IBRA's assets, he
said, would be sold retail instead of in packages, because companies sold
individually might yield higher proceeds.
According to him,
the agency had already achieved Rp 12 trillion in revenues through
"We've signed a
memorandum of understanding with these debtors, and it (the debt
restructuring) has now reached 71.5 percent, so we have already met our
target as set out in the Letter of Intent (LoI)," Cacuk said of the
LoI signed between the government and the International Monetary Fund (IMF).
Under the agreement with the IMF, 70 percent of the debtors' outstanding debts under IBRA must be restructured by October.(bkm)