BNI TO RAISE RP6.6 TRILLION THROUGH RIGHTS ISSUE

Jakarta, March 22 (ANTARA) - State-owned Bank Negara Indonesia (BNI) is expected to raise up to Rp6.6 trillion through a rights issue of 16.36 percent of its shares, a minister said.

"It (the rights issue) is expected to yield Rp6 trillion to Rp6.6 trillion," State Enterprises Minister Mustafa Abubakar said after attending a coordination meeting at the Coordinating Ministry for Economic Affairs here on Monday.

Mustafa said the government now controlled 76.36 percent of BNI shares. Many had suggested that the government reduce its stake in the bank to 60 percent and sell the remaining 16.36 percent to the public.

Asked about preparations for the rights issue, he said the bank still had to obtain prior approval to do it.
"We will try to ensure that it will take place this year. About whether or not it can materialize in the first quarter of 2010 we must look at the process," he said.

To conduct the rights issue a number of government regulations including those on negative investment list and restriction on government shareholdings still had to be revised, he said.

He said state-owned Bank Mandiri which is 66.76 percent owned by the government also had proposed a rights issue. "Bank Mandiri has proposed that 40 percent of its shares be sold to the public."
The coordination meeting was held among others to discuss Indonesia's preparations for an ASEAN Summit in Hanoi.