BANK INDONESIA BELIEVES BANK CENTURY'S SELLING PRICE TO RISE

Jakarta, Sept 2 (ANTARA) - Bank Indonesia Senior Deputy Governor Darmin Nasution said he believed the share price of Bank Century would rise if it could book profit.

"If the bank's conditions are good, meaning booking profit, the price will certainly rise," he said here on Wednesday.

He said how well the bank would develop would depend upon the national economic conditions. The bank would be sold quicker if its condition improved quickly, he said.

He said the Deposit Insurance Agency (LPS) which was now tackling the bank had been given initially three years but later being extended to five years to sell the bank.

Darmin was optimistic the price of the bank's shares would rise because the bank had already booked a profit.

Regarding the investigative auditing now being carried out on the bank following a bailout of the bank worth Rp6.7 trillion he said "let us just wait for the result of the Supreme Audit Board's auditing."
Regarding the bank's assets abroad he said if the process for their return was done through a court the proceeds would enter into the state's coffers as a non-tax income.

A House Commission XI member, Dradjad Wibowo, said it was possible for the LPS to lose up to Rp5 trillion when it divested the bank later.

"My prediction is its shares will sell between Rp1.5 trillion to Rp2 trillion. With its equity now standing at Rp500 billion three years later when it is sold at between Rp1.5 trillion to Rp2 trillion the LPS would suffer a loss of between Rp4.5 trillion to Rp5 trillion," he said.

He said with the bank's capital now totalling Rp500 billion the sale value of between Rp1.5 trillion or Rp2 trillion at the deadline three years later would be inequal compared to the bailout.

He said initially the government and Bank Indonesia had also asked for an agreement to inject Rp1.3 trillion into the bank through the LPS but later the injection rose to Rp6.7 trillion. ***2***