Indonesia eyes selling a 20 percent stake in BNI

Jakarta (ANTARA News) - Indonesia is considering selling a 20 percent stake this year in the country's fourth-largest lender, PT Bank Negara Indonesia Tbk (BNI), state enterprises minister Sofyan Djalil said on Thursday.

The stake is worth around $527.8 million at current market prices.

Djalil said the government is seeking to sell the BNI stake to strategic investors as parts of efforts to help finance the state-budget and strengthen the firm's corporate governance.

Jakarta is considering selling stakes in 37 state firms including BNI this year, as parts of its effort to boost the performance of state enterprises.

The government currently owns about 76.4 percent of BNI, after selling a 23 percent stake in the bank in August. "We will sell a 20 percent stake in BNI through private placement.

We want to make BNI a model state-owned bank, which is managed with a standard good corporate governance," Djalil was quoted by Reuters as saying.

"We will choose strategic investors who have a good reputation, and a good track record with good corporate governance, not just a money."

BNI shares closed 4.2 percent higher at 1,720 rupiah, while the broader market ended 1.63 percent higher.

Indonesia's privatisation drive gained momentum after the 1997-98 Asian financial crisis but has moved in fits and starts.

Many politicians see privatisation as "selling the family silver" and there is opposition from labour unions and others who feel their interests would be better served under state ownership.