BCA Uninterested to Fund Freeport Divestment

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  • CEO BCA Jahja Setiaatmadja di sela kegiatan Leadership Sharing Session 100 Bankir di Hotel J.W. Marriot Mega Kuningan, Jakarta Pusat, 28 November 2017. TEMPO/Yohanes Paskalis Pae Dale

    CEO BCA Jahja Setiaatmadja di sela kegiatan Leadership Sharing Session 100 Bankir di Hotel J.W. Marriot Mega Kuningan, Jakarta Pusat, 28 November 2017. TEMPO/Yohanes Paskalis Pae Dale

    TEMPO.CO, Jakarta - Private lender Bank Central Asia (BCA) said it was uninterested to help the Indonesia Asahan Aluminium (Inalum) taking over the 51 percent shares of Freeport Indonesia (PTFI). One of the reasons was due to competitive interests.

    “Not, we don’t mean to [fund it]. Seen from the comments of SOE banks, the interest is highly competitive,” said BCA Chief Jahja Setiaatmadja in Indonesia Kempinski Hotel, Thursday, July 26.

    Aside from that, Jahja said, BCA could not compete with foreign banks in disbursing foreign exchange considering the transaction would be in US dollars worth US$3.85 billion.

    BCA would mull over to fund the divestment should the purchase using rupiah, he added. “But it’s burdensome if it requires dollar. We’re not interested,” Jahja explained.

    Read: State-run Banks Will Not Fund Freeport Divestment 

    Inalum Corporate Communications Head Rendi Ahmad Witular earlier said the divestment would be funded by foreign banks so that it would not disrupt the rupiah exchange rate.

    “We do not want to affect the rupiah’s conversion because the transaction will be conducted overseas utilizing US dollars. INALUM and Freeport Indonesia’s income are in dollars, which is why it will not disrupt the exchange rate of the rupiah,” said Rendi in the Informatics and Communication Ministry building, Monday, July 23. 

    However, Rendi reluctant to further mention which foreign banks would be involved in the funding.

    Earlier, the head of the Association of State-Owned Banks (Himbara), Maryono, said four state-owned banks would not participate in helping Inalum funding the 51 percent of Freeport Indonesia’s shares. He added that the funding would possibly be done by privately-owned or foreign banks. 

    MUHAMMAD HENDARTYO | KARTIKA ANGGRAENI