American Express confident with RI's banking system<\/p>\n
JAKARTA (JP): American Express Co. (Amex), a multinational
\ntravel and financial services firm of the United States, has
\nconfidence in the Indonesian government's handling of current
\nproblems in the banking industry, the company's president said.<\/p>\n
\"I'm confident that the banking problems will be solved,\"
\nJeffrey E. Stiefler, Amex's president, told newsmen here
\nyesterday.<\/p>\n
Standard & Poor's, a New York-based credit rating company, had
\nassessed the Indonesian banking sector as \"a high risk
\nenvironment\" and \"undergoing a period of financial stress\"
\nfollowing the government's 1988 policy allowing rapid expansion
\nof the industry.<\/p>\n
Regardless of the ominous report, Stiefler stated that he is
\nconfident with future prospects for Indonesia's banking sector.<\/p>\n
\"We are optimistic about the way your central bank is handling
\nthis matter,\" he said.<\/p>\n
Stiefler acknowledged that the Indonesian banking system may
\nhave some \"credit quality problems\" and an \"overcapacity in the
\nmarket.\"<\/p>\n
The government's deregulation measures of the banking sector
\nin 1988 have led to a rapid expansion of private commercial banks
\nin the country. Indonesia has around 200 commercial banks.<\/p>\n
The American executive reasserted his optimism. \"I'm not
\nterribly disturbed by these problems,\" he said.<\/p>\n
\"It is only a small misstep which will be resolved quickly,\"
\nStiefler added.<\/p>\n
He also stated that his company's business in Indonesia \"is
\nnot affected by the problems described by Standard & Poor's.\"<\/p>\n
Stiefler declined to disclose projections for Amex's banking
\nand travel operations in Indonesia. He also refused to state the
\nfigures on the average annual spending of Indonesian Amex card
\nholders.<\/p>\n
Tourism<\/p>\n
Stiefler said Amex enjoys steady growth in its banking and
\ntravel operations in Indonesia.<\/p>\n
Amex has formed a 10-year strategic alliance with the
\nIndonesian Tourism Promotion Board (BPPI). The company donates
\nUS$500,000 annually to the Board for tourism promotion program.
\nUnder the program the Amex Card which is accepted by 3.6 million
\nmerchants around the world, including 8,000 in Indonesia, is
\nnamed the official travel card during the Visit Indonesia Decade.<\/p>\n
Indonesia's tourism generally lags behind other countries in
\nthe region including Thailand and Singapore.<\/p>\n
G. Bill Pardos, the company's vice president in charge of
\ntravel services in Indonesia, explained that the Indonesian
\ngovernment has been committed to balancing the growth in tourism
\nwith \"ecological and cultural considerations.\"<\/p>\n
The government has said it wants to increase the number of
\ntourists visiting Indonesia to 3.9 million this year from 3.4
\nmillion last year.<\/p>\n
Amex, which registered total assets of $94 billion as of last
\nyear, posted $353 million in net incomes from all of its
\nworldwide operations in the first quarter of this year, compared
\nto $243 million in the same period last year. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/american-express-confident-with-ris-banking-system-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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