ORIX Indonesia to increase assets<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
PT ORIX Indonesia Finance (ORIF), a provider of leasing services
\nin Indonesia, hopes to increase its assets from Rp 2.7 trillion
\n(US$282.13 million) to Rp 5 trillion over the next three years.<\/p>\n
President director Yoshinori Matsuoka said one of the ways
\nORIF planned to achieve this goal was by expanding its ship
\nleasing business.<\/p>\n
\"The new cabotage regulations provide a vast opportunity,\" he
\nsaid, adding the company already leased tugboats and barges to
\ncoal transportation firms.<\/p>\n
The government issued a regulation in late March to enforce
\nthe cabotage principle on domestic shipping routes. Cabotage, a
\nterm that originated from Spanish, is the requirement that sea
\ncargo shipped within a country be transported exclusively on
\ndomestic-flagged vessels. Currently, over 47 percent of domestic
\ncargo in Indonesia is shipped by foreign-flagged vessels.<\/p>\n
Matsuoka said ORIF's approach of leasing mostly to
\ncorporations, which account for 80 percent of the company's lease
\nbusiness, was well grounded as the real sector of Indonesia's
\neconomy was continuing to pick up steam.<\/p>\n
He said Indonesia's leasing market -- which grew 38.8 percent
\nlast year from Rp 38.4 trillion to Rp 53.3 trillion -- was far
\nfrom saturated. \"After all, leasing accounts for only 2.3 percent
\nof the gross domestic product here, compared to about 7 percent
\nin Japan.\"<\/p>\n
Last year's growth was fueled by leases on consumer goods,
\nsuch as cars and motorcycles, which accounted for 74.6 percent of
\nall leases in 2004. Corporate leases for heavy equipment and
\nindustrial machinery grew by 24.3 percent from Rp 11.6 trillion
\nin 2003 to Rp 14.5 trillion in 2004.<\/p>\n
To keep up with growing demand for both corporate and consumer
\nleases, ORIF recently increased its paid-up capital from Rp 100
\nbillion to Rp 420 billion.<\/p>\n
This will give ORIF -- which is 85 percent owned by Japan-
\nbased ORIX corporation and 15 percent by the Bank Indonesia
\nEmployees' Welfare Foundation -- more room to expand its leases
\nby borrowing additional funds from banks.<\/p>\n
ORIX CEO Yoshihiko Miyauchi, whose company injected the vast
\nmajority of funds into ORIF, said the added capital indicated
\nORIX's long-term commitment in Indonesia.<\/p>\n
\"We've seen tremendous economic growth over the 30 years we've
\nbeen here,\" said Miyauchi, whose company has total assets of $6.5
\nbillion from operations in 24 countries worldwide. \"We have even
\nstronger confidence that the economy will continue to grow.\"
\n(002)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/orix-indonesia-to-increase-assets-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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