CIMB to engage in RI capital market

The Jakarta Post, Jakarta

Malaysia's leading securities firm Commerce International Merchant Bankers Berhard (CIMB) launched its Indonesian unit PT CIMB Niaga Securities with the aim of becoming a major player in Indonesia's growing capital market.

Chief executive officer (CEO) of CIMB Dato' Nazir Razak said that CIMB Niaga had been set up due to optimism about the future of the Indonesian economy.

"We are here because we are confident in the country, and that there will be more investors coming in," said Razak during a press conference on Monday.

CIMB owns a 51 percent stake in CIMB Niaga, while the remaining 49 percent is owned by Bank Niaga. CIMB is a unit of Malaysian financial group Commerce Asset Holding Berhard.

Commerce Asset purchased a controlling 51 percent stake in Bank Niaga in 2002 from the Indonesian Bank Restructuring Agency.

Razak said that in a bid to become a major player in the country's capital market, CIMB Niaga planned to acquire several local small-scale securities firms.

However, he declined to name the target companies or the funds needed for the acquisition plan.

Razak is optimistic that CIMB Niaga will be among the country's 10 largest securities firms by 2006 as its parent company CIMB will bring Malaysian investors into the country.

Not only Malaysian investors, but also international clients of CIMB would be guided into the country, he said.

"Once we set up operation here, we will invite Malaysian and international customers who use us back in Malaysia to Indonesia," said Razak, who is the son of Tun Abdul Razak, Malaysian prime minister from 1970 to 1976.