REFILE-Indonesia c.bank backs holding co for state banks

(Refiles to add dropped word in para 2)

JAKARTA, Jan 26 (Reuters) - Indonesia's central bank will support a government plan to set up a holding company for state banks in line with efforts to consolidate the country's banking industry, a local newspaper said on Saturday.

Under a new central bank plan, a single interest controlling stakes in more than one bank either has to merge them, set up a holding firm or divest its shares by 2010.

A central bank director, Halim Alamsyah, was quoted by The Jakarta Post as saying both the central bank and the government had appointed teams to further discuss the plan.

"We're studying the ministry of state-owned enterprises' concept to establish a new holding company, and will help them to implement the plan," Alamsyah said.

The government owns controlling stakes in five banks, three of which are among the largest in the country in terms of assets.

The government owns controlling stakes in PT Bank Mandiri Tbk (BMRI.JK: Quote, Profile, Research), PT Bank Rakyat Indonesia Tbk (BRI) (BBRI.JK: Quote, Profile, Research), PT Bank Negara Indonesia Tbk (BNI) (BBNI.JK: Quote, Profile, Research), PT Bank Tabungan Negara and PT Bank Ekspor Indonesia.

The three listed state-controlled banks -- Mandiri, BRI and BNI -- had total combined assets of 623 trillion rupiah ($66.80 billion), or around 34 percent of the total assets of the country's 130 banks, as of September 2007.

Indonesia's central bank expects the single ownership rules to help consolidate the country's 130 banks, which had total assets of 1,850 trillion rupiah ($196.4 billion) as of September 2007. ($1 = 9,325 rupiah) (Reporting by Muhamad Al Azhari; Editing by Sugita Katyal)