Ford Credit forms Indonesian joint venture

Ford Credit forms Indonesian joint venture

DEARBORN, Michigan, USA (Reuter): Ford Credit International
Inc said it and PT Indomobil Investment Corp. have formed a joint
venture company in Indonesia to provide automotive financing to
Ford and Indomobil dealers and customers.

PT Primus Financial Services is 55 percent owned by Ford
Credit, a unit of Ford Motor Co., and 45 percent by Indomobil,
the second largest vehicle assembler and distributor in
Indonesia.

Based in Jakarta, Primus Financial Services initially will
provide retail financing to Indomobil and Ford customers, the
companies said.

As part of the joint venture agreement, Primus Financial has
purchased Indomobil's ownership in Indoarta, an automotive
financing joint venture with dealers in Surabaya, Indonesia's
second largest city.

Primus Financial plans to establish additional finance company
joint ventures with dealers in other major metropolitan areas
throughout Indonesia.

The new joint venture will be managed by president director
John Kring and finance director Barry Satz comes to the company
from Ford Credit. Its operations director, Hosea Sanjaya is a
former director of Indoarta.

Indomobil has annual sales of 79,000 vehicles and 200,000
motorcycles, with revenues totaling US$1.7 billion, Ford Credit
said.

Ford sold about 3,000 vehicles in Indonesia in 1995. The
automaker said it plans to introduce a new entry in the market
during 1996 and is investigating manufacturing and assembly
opportunities in Indonesia.