BZW to expands securities service in Indonesia

BZW to expands securities service in Indonesia

JAKARTA (JP): Barclay de Zoete Wedd Ltd. (BZW) of Britain, which acquired a stake in PT Niaga Securities yesterday, wants to expand its services to Indonesian companies by bringing in more international investors.

Under an agreement signed here yesterday, BZW, a subsidiary of Barclays Bank Plc., will hold a 60-percent stake in Niaga Securities, which will be renamed PT BZW Niaga Securities. The other 40 percent will be held by Bank Niaga.

Chairman of Barclay Bank Andrew Buxton said before the signing of the agreement that BZW believes in the potential growth of Indonesian equity market, where many companies are trying to tap funds.

"Taking the majority position in Niaga Securities will allow us to expand our services to Indonesian companies by bringing more international investors," he said. "It also demonstrates our commitment to the Indonesian stock market's growth."

He said Barclays Group and BZW have been able to secure significant role in a number of transactions in Indonesia, including the US$1.9 billion financing of Indonesia's first private power project PT Paiton Energy and Indonesia's first London listing of PT Tambang Timah.

"We are very positive in the long term future development of the equity market here," he said, adding that over the last five years the capitalization on the Jakarta Stock Exchange has grown by a multiple of almost nine to over US$60 billion.

Based on such a figure, it is likely that there will be 500 listed companies and a market capitalization in excess of $200 billion by the year 2000, said Buxton.(08)