SHAREHOLDERS AGREE TO BTN'S PLAN TO CONDUCT IPO

Jakarta, Sept 10 (ANTARA) - The government as a shareholder of Bank Tabungan Negara (BTN) has given an approval to the bank to conduct an initial public offering (IPO), but on a date yet to be set.'

"The government has given permission for the formation of A team for that purpose. It is now only awaiting approval from the House Commission XI," BTN's president director Iqbal Latanro said after meeting the commission members.

He said the most important thing for BTN now was a support from the House while the date for the IPO could be determined later when the time was right.
All members of the House Commission XI in the meeting that was presided over by Endin Soefihara, deputy chairman of the commission had in principle supported the plan but a decision would only be made formally in the next meeting which would be attended by the finance minister representing the government.
Iqbal said BTN expected to collect Rp2 trillion from the IPO to strengthen its capital now standing at Rp2.9 trillion to be used to finance housing development.
He also hoped through the IPO BTN's capability to finance middle and low housing development projects including the One Million House National Development Movement (GNPSR) program could be increased.
He said it was expected support from the BTN in terms of housing units or credit value to the GNPSR could reach 73 percent of the planned 210,000 units worth Rp12.6 trillion.
In the 1000 subsidized apartment development program, BTN is expected to build 250,000 units with credits which may reach Rp120 million per unit and total credits totaling Rp30 trillion.
"If there are 600 units on a 20-floor apartment, 416 blocks will be built," he said.
He said last year BTN was even able to build 95.2 percent or 102.722 apartment units.