DPR Wants Govt to Maintain Minimum 60% Stake in BNI, Bank Mandiri

Indonesia Finance

Monday, 27 September 2010 19:59

Theindonesiatoday.com - The House of Representative's (DPR) Commission VI on Monday approved rights issues of State-majority owned banks, Bank Negara Indonesia Tbk and PT Bank Mandiri Tbk but the House recommended the government to maintain majority stake in these banks at minimum of 60%, detikfinance.com reported.

BNI plans to offer 3.37 billion new shares, or 16% of its total enlarged capital, aiming at raising around Rp10 trillion. While Bank Mandiri has yet to determine the value of the rights issue, however, the news portal reported the combined value of rights issues of two banks would reach Rp22 trillion.

Airlangga Hartanto, the head of Commission VI, said DPR supports the rights issues of BNI and Bank Mandiri but the government's stakes in two banks after rights issues will not be lower than 60%.

He also called on the government to determine the best timing for the rights issues.

The Working Committee of DPR Commission XI on 23 September 2010 had also approved rights issues of BNI and Bank Mandiri. They recommend BNI to go first,
and then followed by Bank Mandiri.

Deputy chairman of the Commission, Achsanul Qosasih said BNI was given chance to launch the rights issue by the end of December 2010.

Achsanul added that the other reason why BNI is prioritized is because BNI urgently needs to strengthen its capital to expand its business, however, its capital adequacy ratio (CAR) is not strong enough at 13 percent, just above minimum level of 8 percent set by the central bank.

Mustafa Abubakar, State-owned enterprises minister, said one bank could launch rights issue in the fourth quarter of this year while one else could launch rights issue in the first quarter of 2011.

"We will consider some factors, the urgency of capital needs, the preparation and the market trend," he said.

(hans@theindonesiatoday.com)

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