BI to Sell 3 Units

Bank Indonesia has planned to sell three commercial units to the
government, but it will sell IndoverBank to one of the state banks.

Bank Indonesia Deputy Governor Budi Mulya said BI and the government have
agreed that BI will sell NV De Indonesische Overzeese Bank (Indover Bank),
PT Asuransi Kredit Indonesia (Askrindo) and PT Bahana Pembinaan Usaha
Indonesia (BPUI) this year.

"The point is that we will sell the three units to the government. We will
discuss how to transfer it later. But it will be in 2008," he said
yesterday.

BI controls 100% shares of Indover or at IDR53.9 billion. BI also owns 55%
shares of Askrindo and 82.2% shares of BPUI.

Budi said that a state bank will take over Indover as the bank is
strategic to drive Indonesian export to Asia and Europe.

Actually Bank Ekspor Indonesia (BEI) has proposed to take over the bank
but BI and the government did not respond. Rumor said BEI will take over
Indover at US$40 million, but they have the problem on legal lending
limit.

Rumor said that Bank Mandiri is serious to acquire Indover. "We will see
on whether there will be other bidder," Budi said.

He said Indover has been dealing with its losses and the unperformed loan
so that it will meet the target on recovery rate. Last year, the bank has
cut the loss from EUR10 million to EUR4.9 million.

The bank has targeted to post the net profit of EUR120 thousand last year
from the disbursed loan of EUR211.5 million.

While the loss is lower, the assets also have been lower. In 2006 the
asset was EUR743 million compared with EUR781.8 million in 2005 and
EUR787.3 million in 2004.

Regarding with the sale of BPUI shares, Budi said BI will discuss the
Investment Account Fund (RDI) with the SOE Minister and Finance Minister.
The government has asked that IDR1.2 trillion of RDI should be accounted
as the government's shares.

The total RDI of BPUI that are used to stabilize the money market and
capital market have been increasing from the initial figure of IDR250
billion.

It did not include RDI of 2006 as much as IDR163 billion and it will
increase to IDR170 billion if there is no restructuring.

The debt of BPUI to non-governmental-debtors has declined from US$300
million to US$30 million.

Budi said that BI stocks at Askrindo have been diluted as the government
has injected IDR850 billion last year so that BI's stocks at the company
has declined to 17.6%.

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