The Indonesian Bank Restructuring Agency (Ibra) has announced the launch of Credit Asset Sales Program (PPAK) Phase 3. This programme represents the implementation of state revenue acceleration from disposal of credit assets and treasury assets, as prescribed in the Financial Sector Policy Committee (FSPC) Decree No KEP 01/K.KKSK/05/2002 dated
In this PPAK 3 Ibra is offering credit assets (both the restructured and unrestructured) and treasury assets worth Rp76tn (based on asset transfer values to Ibra) which represents 135,424 debtors. Most of the debtors offered in this programme are SME debtors at the total of 134,196 debtors.
The assets are grouped into:
- Corporate credit asset category
- Commercial asset credit category
- SME credit asset category
- Ex group loan credit asset category
- Treasury asset category
Same as the previous credit asset sales programmes, PPAK 3 is offered only to investors both domestic and foreign who can meet the requirements preset by Ibra. Debtors or certain parties with either direct or indirect affiliation to the debtors are not allowed to participate in this programme.
PPAK 3 is conducted in an auction or open tender process. Bidding can be on by debtor in a single obligor basis or overall obligors in a single credit asset category. Concerning the SME credit asset category, the bidding must be proposed for a whole lot unit, while for the marketable securities asset category, the bidding must be proposed on unit basis of securities.
To prevent from fire sale, in the PPAK 3 Ibra will also set the floor price. Investors with the highest bids above the Floor Price will be nominated as the winner. In addition, to maximise the recovery, a re-bid process or repeat invitation may be taken for the investors who proposed bids below the floor price to submit a revised bid.
Should the first winner withdraw, the second bidder will be given an opportunity to propose a re-bid at the value equal to the withdrawing winner. The announcement on the winners will be published in April 2003.
With PPAK 3 on the run, Ibra has conducted three times of credit asset sales in massive scales. From the PPAK 1 and P3AK, Ibra has succeeded to bring 975 obligors at the total loan value of Rp90.98tn to the banking system and financial institutions as well as rendering contribution to the state revenue.