Hancock to start retail

Hancock to start retail

JAKARTA (JP): PT Asuransi Jiwa Bumiputera John Hancock, a
provider of employee benefits, announced yesterday that it will
enter the retail life insurance market.

The insurance company, 80 percent owned by John Hancock
Holdings, a subsidiary of the U.S.-based John Hancock Mutual Life
Insurance Co., and 20 percent owned by PT Asuransi Jiwa Bersama
Bumiputera 1912, will initially offer term life insurance and
endowment programs to meet the needs of Jakarta's growing sector
of affluent, young professionals and parents.

The Boston-based John Hancock first invested in Bumiputera
John Hancock in 1987. It was Hancock's first direct investment in
Asia.

Hancock, which also operates branches in Singapore, Malaysia
and Thailand, is currently exploring opportunities and
considering future expansion in China, Vietnam and the
Philippines. (hen)

;JP;HEN;
ANPAf..r..
Bizbrief-Hotel-shares
Grahamas sells shares
JP/9/COLBOX2

Grahamas sells shares

JAKARTA (JP): PT Grahamas Citrawisata, a subsidiary of the
Medco group, will sell 8.75 million ordinary shares, around a
half of its equity capital, to the public next month to raise
funds for the construction of a hotel in Bukittinggi, West
Sumatra.

Dedi Panigoro, the president of the company, told investors
and securities analysts here Thursday that the shares would be
listed on the over-the-counter (OTC) market.

The new shares, with a face value of Rp 800 each, will be sold
to the public at around Rp 1,000 (46 U.S. cents), he said.

The fund of around Rp 87.75 billion ($40.8 million) to be
generated from the initial public offering (IPO) will be used to
partly finance the construction of the hotel, which will cost
around Rp 25.07 billion ($11.66 million).

Dedi said the planned hotel, to be named Novotel Bukittinggi,
will be equipped with facilities of international standards,
including international direct dialing (IDD) telephones, air
conditioners and television sets.

The grand opening of Novotel, which will have 100 rooms, is
scheduled for July of next year.(hen)

;AFP;
ANPAf..r..
Bizbrief-EU-summit-Asia
Asia asked to cut barriers
JP/9/COLBOX3

Asia asked to cut barriers

ESSEN, Germany (AFP): British Prime Minister John Major
yesterday called on his European Union partners to reduce
restrictions on imports from the booming economies of Southeast
Asia.

Speaking in a discussion on improving the competitiveness of
European economies at a summit of EU leaders, Major warned that,
"ultimately protectionism only protects our own inefficiency."

Major said the EU should reject any attempt to insert social
clauses into world trade agreements, arguing that such a move
would be "immoral and contrary to logic.

"It is by buying their goods that we will raise their living
standards," he argued.

Major added: "Rapid economic growth in Asia does not represent
a threat to Europe. In fact the opposite is the case. As
purchasing power in Asia grows so does the market for our goods."

Major's remarks came as he endorsed an action plan for growth
and job creation drawn up by EU finance ministers which stresses
the need for extensive deregulation in the labor market if Europe
was to maintain its competitiveness against the U.S., Japan and
the developing world.

;REUTER;
ANPAf..r..
Bizbrief-Thailand-GATT
Thai House ratifies GATT
JP/9/COLBOX4

Thai House ratifies GATT

BANGKOK (Reuter): Thailand's Upper House of parliament
yesterday ratified by a wide majority the GATT world trade pact
that aims to remove trade barriers and cut tariffs.

Thailand had been a major champion of the accord, which
slashes tariffs worldwide by more than a third and liberalizes
markets for goods, services, farm produce and textiles.

The pact, under the auspices of the General Agreement on
Tariffs and Trade, creates the World Trade Organization which
supersedes GATT on Jan. 1.
The Upper House passed the measure yesterday following Lower
House approval on Wednesday. It now needs only the king's
signature.

;REUTER;
ANPAf..r..
Bizbrief-Vietnam-oil
Vietnam develops oil rules
JP/9/COLBOX5
Vietnam develops oil rules

HANOI (Reuter): The United Nations Development Program (UNDP)
said yesterday it would help the government work out a new set of
regulations for the booming oil industry.

Despite a Petroleum Law passed last year, "this sector is
still operating under the barest of regulatory arrangements," the
UNDP said in a statement.

A new $200,000 project will focus on regulatory procedures for
the oil industry and train government officials in international
standards and practices to help them revise and implement the
regulatory framework later, it said.

;REUTER;
ANPAf..r..
Bizbrief-Canada-aid
Canada told to chop aid
JP/9/COLBOX6

Canada told to chop aid

OTTAWA (Reuter): Canada should chop its foreign aid by 10
percent a year to help reduce the government's budget deficit, an
influential committee of Parliament urged on Thursday.

Canada has been gradually reducing its spending on
international assistance over the past few years and the finance
committee of the House of Commons, the lower house of Parliament,
recommended a further 10 percent cut.

The committee said the cuts would bring Canada's spending on
international aid more into line with those of other donor
countries.

Canada now spends about $2.6 billion (US$1.8 billion) a year
on international aid. A 10 percent cut would reduce this by $260
million Canadian.

;AFP;
ANPAf..r..
Bizbrief-Japan-lending
Japanese lending falls
JP/9/COLBOX7

Japanese lending falls

TOKYO (AFP): Japanese bank lending in November shrank 0.1
percent from a year earlier, down from 0.2 percent in October and
extending the decline to an unprecedented six months in a row,
the Bank of Japan said yesterday.

A central bank official said corporate demand for funds was
fluctuating at depressed levels. Most companies want to repay
existing borrowings to restructure their balance sheets rather
than borrow fresh funds, he added.

While some construction companies borrowed heavily, other
sectors are unlikely to follow suit, the official said.

The smaller decline in November partly reflected banks asking
companies to bring forward their funding plans for salary bonuses
and year-end settlements.

The central bank said lending by city banks contracted 0.5
percent, down from the previous month's decline of 0.6 percent.
Trust bank lending dropped 3.6 percent, down from 3.8 percent,
and advances by long-term credit banks was down 0.7 percent
compared with a decline of 0.9 percent in October.

;AFP;
ANPAf..r..
Bizbrief-Singapore-bank
Loan for Australian bank
JP/9/COLBOX8

Loan for Australian bank

SINGAPORE (AFP): A leading Singapore bank has raised funds
totaling US$175 million for Australia's Bank of Queensland,
breaking western banks' monopoly on Australian borrowers in the
Asian capital market, officials said yesterday.

The money was raised by the Overseas Union Bank (OUB),
Singapore's fourth largest bank, through a multiple option
facility with the participation of 27 other international
financial institutions, they said.

"This is the first time an Australian borrower has awarded
such a responsibility to a Southeast Asian bank," said Peter Seah
Lim Huat, OUB's president.

Australian borrowers usually seek funds through European and
American arrangers who source capital from the Hong Kong market.