<article>Indonesian Government is encouraging the state-owned banks to raise funds, to support the country’s infrastructure expansion plan.</article>

Indonesian Government is encouraging the state-owned banks to raise funds, to support the country’s infrastructure expansion plan.
State Enterprises Minister Rini Soemarno said on Monday that the state-owned <a href="http://www.bankmandiri.co.id/english/" target="_blank">PT Bank Mandiri Tbk</a> will increase its capital by nine trillion rupiah ($714.6 million), of which 5.6 trillion rupiah will be raised through a rights issue and the rest 3.4 trillion rupiah will come from the government’s injection by assets.
This will be subject to the parliament’s approval, but she refused to disclose the timeframe.
Meanwhile, after the announcement on Monday, PT Bank Mandiri Tbk’s chief executive Budi Gunadi Sadikin also told <a href="http://www.reuters.com" target="_blank">Reuters</a> that it may raise up to 5.9 trillion rupiah (US$467.81 million) through a rights issue in the next six months. However, no further details were revealed.
Soemarno said that it would be difficult for all the state-owned banks to tap the capital market at the same time, so Bank Mandiri is being prioritised, plus its dividend payout is ‘quite large’.
According to Thomson Reuters data as of September 2014, the government owned 60.6 per cent of Bank Mandiri.

Indonesia's Bank Mandiri plan to raise $714m

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Indonesia's Bank Mandiri plan to raise $714m

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