IBRA : Bridging The Future
   Agenda  :
   Agenda  :
         Overview
               Economic Crisis and Banking Sector
               Vision & Mission
               IBRA's Scheme
        Performance to Date
              Macro Economic Indicators
              Indonesian Banking Landscape Pre and Post Crisis
              Bank Restructuring Unit (BRU)
              Asset Management Credit (AMC) 
              Asset Management Investment  (AMI)
              Contribution to Fiscal Support
        Plans for Going Forward
              Economics Policy Package after IMF Termination 
              Recently Closed Transactions 
              Timeline of Remaining Disposal Programs in 2003
              Lippo Bank & BII Disposal Plan
              Investment Asset Disposal Program (PPAI 3)
              Closure of IBRA
                                          
           Badan Penyehatan Perbankan Nasional                                  2
 BPPNThe Indonesian  Bank Restructuring Agency (IBRA)
  IBRA : Bridging The Future
              Overview           Performance            Plans for 
                                    to Date               Going 
                                                        Forward
• Economic Crisis and Banking Sector
• Vision & Mission
• IBRA's Scheme
                                         
          Badan Penyehatan Perbankan Nasional                                 3
 BPPNThe Indonesian  Bank Restructuring Agency (IBRA)
  IBRA : Bridging The Future
  Economic Crisis and Banking 
  Economic Crisis and Banking 
   Economic Crisis and Banking 
   Economic Crisis and Banking 
  Sector 
  Sector 
   Sector 
   Sector 
                                   •
                                   •
                                    In  mid  1997  Rupiah  drastically  depreciated 
    Economic            Crisis:     In  mid  1997  Rupiah  drastically  depreciated 
    Economic            Crisis: 
                                    following the depreciation of regional currencies
    started  with  drastic          following the depreciation of regional currencies
    started  with  drastic 
                                   •
    devaluation of Rupiah,         •Rupiah depreciation led to liquidity crisis and in 
    devaluation of Rupiah,          Rupiah depreciation led to liquidity crisis and in 
                                    turn banking crisis
    followed  by  banking           turn banking crisis
    followed  by  banking 
    and economic crisis
    and economic crisis            •
                                   •
                                    Banking crisis led to Bank Run (Rush) 
                                    Banking crisis led to Bank Run (Rush) 
                                   •
                                   •
                                    In order to install trust in the banking system, 
                                    In order to install trust in the banking system, 
                                    the  government  issued  blanket  guarantee 
                                    the  government  issued  blanket  guarantee 
                                    program
                                    program
                                   •
                                   •
                                    In  order  to  prevent  capital  flight,  very  high 
    Government                      In  order  to  prevent  capital  flight,  very  high 
    Government                      interest policy was put in place that led to the 
                                    interest policy was put in place that led to the 
    Response                        collapsed of the real sector
    Response                        collapsed of the real sector
                                   •
                                   •
                                    Lender of the last resort function of The Central 
                                    Lender of the last resort function of The Central 
                                    Bank was executed
                                    Bank was executed
                                   •
                                   •
                                    IBRA was established in January 1998
                                    IBRA was established in January 1998
                                                 
             Badan Penyehatan Perbankan Nasional                                              4
 BPPNThe Indonesian  Bank Restructuring Agency (IBRA)
   IBRA : Bridging The Future
                                               IBRA Vision
                               To build a strong Government Agency
                             in supporting  the Indonesian economic 
                                                  recovery
                                                   Loan                      Shareholder 
                   Bank                            Loan                       Shareholder 
                   Bank 
             Restructuring                   Restructuring                        Asset
             Restructuring                   Restructuring                         Asset
           and Divestment
           and Divestment                    and Disposal                     Settlement
                                             and Disposal                     Settlement
          •Consolidate,                   •Conduct Loan Assets            •Shareholder settlement 
           restructure, and divest         Sales Program (PPAK).           of frozen banks, closed 
           IBRA administered              •Finalize ATK                    banks and taken over 
           banks.                          administration problem.         banks (BBO, BBKU, 
          •Support Government in          •Accelerate restructuring        BTO).
           preparation for the             and follow up litigation       •Former shareholders 
           establishment of                cases.                          assets possession by 
           Financial Services             •HoldCos establishment           IBRA
           Authority and Deposit           process and/or asset           •Continue asset sales of 
           Insurance Corporation.          securitization process.         former shareholders.
                                               IBRA Mission
      To promote economic recovery through banking sector and corporate debt restructuring 
         and to optimize the recovery of government funds in order to alleviate the burden
                        of the recapitalization bonds on the Government budget
                                                      
              Badan Penyehatan Perbankan Nasional                                                       5
 BPPNThe Indonesian  Bank Restructuring Agency (IBRA)
  IBRA : Bridging The Future
      IBRA's Scheme 
      IBRA's Scheme 
           BI Liquidity      Recap Bonds          Guarantee             MoF 
           Assistance        Rp. 425.5 T          Rp. 73.8 T        Advancement
           Rp. 144.5 T                                                Rp. 4.9 T
                                                                            "Non IBRA 
                                       FAILED BANK
                                       FAILED BANK                            Affairs"
                 Shareholder                                      Non  
                 Shareholder                                      Non  
                 Settlement                                    Performing 
                 Settlement              Bank Shares           Performing 
                                         Bank Shares
                   Program                                        Loan
                   Program                                        Loan
                                         I B R A
                                         I B R A                               "IBRA 
                                                                              Affairs"
    • Shareholder 
      Shareholder     •Bank Shares 
                       Bank Shares                                         Marketable 
                                          •                                Marketable 
                                           NPL 
      Settlement                           NPL 
      Settlement       Divestment
                       Divestment                            •NPL 
                                                             NPL            Securities
                                      •Non Core Asset                       Securities
    • Investment                       Non Core Asset
      Investment       •
                        Interbank
                        Interbank
        AMI               BRU             AMC             Litigation        Treasury
     Rp. 130.72 T     Rp.  123.34 T     Rp. 361.19 T      Rp. 65.81 T      Rp. 13.50 T
    Notes :  as of August 2003 (Finance Accounting)
                                                
            Badan Penyehatan Perbankan Nasional                                              6
 BPPNThe Indonesian  Bank Restructuring Agency (IBRA)