---------------------------------------------------------- FREE for JOIN Indonesia Daily News Online via EMAIL: go to: http://www.indo-news.com/subscribe.html - FREE - FREE - FREE - FREE - FREE - FREE - Please Visit Our Sponsor http://www.indo-news.com/cgi-bin/ads1 ---------------------------------------------------------- Dow Jones July 22, 1999 Indonesian Crt Orders Bapindo To Suspend Merger Process JAKARTA -- The merger of four Indonesian state-owned banks faces a stumbling block as one of the four banks, PT Bank Pembangunan Indonesia (P.BPM), or Bapindo, remains entangled in a legal dispute with a local private bank, PT Bank IFI. PT Bank Bumi Daya, PT Bank Dagang Negara (P.DGN) and PT Bank Ekspor Impor Indonesia (P.BEI) are the other three state-owned banks involved in the merger. In an announcement published in several newspapers Friday, Bambang, Muchtar & Wardhana law firm said that the south Jakarta district court Thursday issued an injunction ordering state-owned Bapindo to suspend the merger process with three other banks into PT Bank Mandiri until it completes its obligation to PT Bank IFI. The daily Bisnis Indonesia quoted Bank IFI's lawyer Harsya Wardhana as saying that Bank IFI brought Bapindo to court as the state bank urged Bank IFI to provide 162.55 billion rupiah ($1=IDR6,820) in loans to three companies that already allegedly had outstanding loans to Bapindo. The three companies are PT Vastex Prima Industries, PT Jawa Muna Agro and PT Senang Kharisma Textile. Bapindo originally had provided loans to these companies that allegedly became irrecoverable, the reports quoted Bank IFI's lawyer as saying. No details were provided. He was quoted as saying that Bapindo ordered Bank IFI to make the loans as at the time, Bapindo held 70% of Bank IFI. The report didn't specify when the loan request was made or the extent of Bapindo's current holdings in Bank IFI. Bapindo and Bank IFI officials weren't immediately available to comment. The merger of four state banks into Bank Mandiri is expected to be completed by the end of the month and Bank Mandiri is scheduled to begin commercial operations Aug. 2. -By I Made Sentana (62-21) 3983 1277;[EMAIL PROTECTED] ++++++++++++++++++++++++++++++++++++++++++++++++++++ Didistribusikan tgl. 23 Jul 1999 jam 09:53:38 GMT+1 oleh: Indonesia Daily News Online <[EMAIL PROTECTED]> http://www.Indo-News.com/ ++++++++++++++++++++++++++++++++++++++++++++++++++++
