JAKARTA (Indonesia Today) – The House of Representative (DPR) has approved the rights issue proposed by PT Bank Tabungan Negara Tbk (BBTN), Bisnis Indonesia reported this morning.

Agus Martowardojo, finance minister, said BTN plans to issue 1.51 billion new shares with proceeds target of Rp2.3 trillion, assuming exercise price per share of Rp1,260 to Rp1,620.

Along with the rights issue, he said, the government will sell its shares, to raise Rp132.07 billion to Rp175.09 billion.

After rights issue, Agus said, the government’s ownership in BTN will decline to 60% while the rest 40% owned by the public investors.

The rights issue is scheduled for next month. (hans@theindonesiatoday.com)