Aussie firm negotiates tie-ups in Indonesia

Aussie firm negotiates tie-ups in Indonesia

SYDNEY (AFP): Leading insurer Legal and General Australia Ltd. said Tuesday it was negotiating a joint venture with a large Indonesian company and expected to finalize the deal this year.

In its annual report, Legal and General said it was concentrating on expanding in Asian countries where financial- service industries were established, but penetration throughout the community was relatively low.

"Of these countries, Indonesia is the most attractive because of its size, proximity, good relations with Australia and favorable government policy," the report said.

"The middle class of some 20 million is expected to grow rapidly for the rest of the decade to create one of the largest consumer markets in the region," it added.

The company said it expected to finalize the deal and apply for an insurance license in Indonesia this year.

Managing director Trevor Matthews said he could not name the proposed joint venture partner at this stage.

"I can only say that it is a local industrial conglomerate which is interested in expanding in the financial services area and wants to link up with an organization with life-insurance experience," Matthews said.

"(The deal) looks very hopeful but it's not over until it's over so I really cannot say much more," he added.