Indonesia: Crony Bank, Anyone?

What happens when a government puts its biggest bank up for sale and no one's much interested? Cacuk Sudarijanto doesn't even want to think about it. As head of Indonesia's vast debt cleanup operation, he's responsible for unloading Bank of Central Asia later this month. The initial public offering will be Sudarijanto's first and the government's largest so far. It's supposed to be a symbol of Indonesia's imminent recovery. Instead, it could be a sign of the country's continuing troubles.

Two months ago, underwriters were hoping to raise $2 billion. But with many foreign investors shunning the issue, they're now talking about as little as $200 million. Even BCA's former owner isn't bothering to try to regain control. Anthony Salim, one of Indonesia's biggest tycoons and now its biggest debtor, is only promising to hold onto his remaining 7% stake for six months after the launch at Sudarijanto's request.