Fri, 15 Dec 2000

Bank Danamon, PNM sign deal

JAKARTA (JP): Publicly listed Bank Danamon signed an agreement on Thursday with PT Permodalan Nasional Madani (PNM) to assist the latter to provide loans to small and medium-sized companies (SMEs).

Bank Danamon president Arwin Rasyid said that out of the bank's projected Rp 5 trillion to 7 trillion (US$736.84 billion) in new lending next year, 20 percent to 25 percent would be allocated for SMEs.

PNM is a government sponsored company with a main mission to develop SMEs and cooperatives.

Bank Danamon also signed an agreement with Principal Indonesia, which will manage the pension fund of the bank's 9,000 employees. The initial size of the fund to be managed by Principal would be around Rp 40 billion.

Principal Indonesia president Jeffrey Newnam said that the company currently has around 200 customers in Indonesia with total assets of around Rp 230 billion.

Newnam said assets was expected to double next year.(rei)