BNI issue burns up Jakarta banking sector

Article Abstract:

Bank Negara Indonesia's (BNI) initial public offering (IPO) was snapped up by investors who were even unable to get the number of shares they want. Although Indonesia's largest bank will be formally listed on Nov. 25, 1996, Indonesians who got shares in the IPO are expected to make sales during the first two days of trading, especially as analysts predict that BNI shares, at 850 rupiah each, will start trading at an estimated 1,050 rupiah. Due to the surge in value caused by BNI's well-received IPO, investors should be more cautious about depositing more funds in Indonesian bank shares.

Capital Management-Stock Sales, Securities, Going public (Securities), Initial public offerings, Jakarta, Indonesia, Stock offerings, Bank Negara Indonesia 1946

Mar'ie faces intense presssure, but remains unfazed

Article Abstract:

Indonesian Finance Minister Mar'ie Muhammad's moves to reform the domestic banking sector has put him in the public spotlight. The Finance Ministry's move of shutting PT Bank Andromeda has made Mar'ie Muhammad along with central bank Gov. Soedradjad Djiwandono the target of a lawsuit filed by associates of Andromeda part-owner and President Suharto's son Bambang Trihatmodjo. Muhammad has stayed firm on the government's move to shut down 16 privately-owned banks as a means to renew confidence in the financial sector.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Financial Regulation NEC, Economic aspects, Financial services, Economic policy, Commercial law, Private banking, Muhammad, Mar'ie

Indonesian state banks get low marks for financial strength from Moody's

Article Abstract:

Moody's Investors Service Inc. (Moody's) has given low ratings of the financial strength of Indonesia's six state-owned banks. Moody's gave a rating of Baa3 to the banks' senior long-term foreign-currency bonds while a rating of Ba1 was assigned to their long-term foreign-currency deposit obligations. Moody's stated that assets were generally weak and that the banks were burdened with significant levels of nonperforming assets.

Evaluation, Reports, Moody's Investor Service, Rating agencies (Securities)