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.