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.