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)