INDONESIAN GOVT OKAYS BRI'S PLAN TO ACQUIRE BUKOPIN

The Indonesian government has given the green light to Bank Rakyat Indonesia (BRI, JSX:BBRI), the country`s second largest state lender, to acquire state-owned Bank Bukopin (JSX:BBKP).

Both BRI and Bukopin had the same core businesses, State Enterprises Minister Mustafa Abubakar said on Friday commenting on state labor insurance company PT Jamsostek`s wish to get a stake in Bukopin.

Jamsostek`s business was totally different from that of Bukopin, he said.

"I have given the green light to BRI to acquire Bukopin because they have the same core businesses," he said.

The minister said Jamsostek`s wish to get a stake in Bukopin was merely a means of investment.

"Admittedly, we have encouraged Jamsostek to make investment but not in Bukopin. I myself have banned them (the management of Jamsostek) from running a bank. Jamsostek must focus on its business," he said.

Both BRI and Jamsostek have competed with one another to get a stake in Bukopin since it intended to release 51 per cent of its shares.

BRI said it was ready to control a 51 per cent stake in Bukopin as part of its long-term investment.

Jamsostek meanwhile said it wanted to acquire Bukopin in order to develop the bank.

Bukopin is currently 42.71 per cent owned by All-Indonesia National Logistics Board (Bulog) Workers Cooperative (Kopelindo), 17.32 per cent by the government, 12.19 per cent by Bina Kesejahteraan Warga Bulog (Yanatera Bulog) foundation, 6.7 per cent by Koperasi Perkayuan Apkindo 6,7 persen, and 20.99 per cent by the public.