Indosuez Bank to raise capital

Indosuez Bank to raise capital

JAKARTA (JP): Indosuez Indonesia Bank (IIB), an Indonesian-
French banking venture, will more than double its paid-up capital
from Rp 20 billion (US$9 million) at present to Rp 50 billion by
the end of this year, an executive says.

IIB's president, Patrice Meda, told The Jakarta Post this week
that the bank, which was established last May through the
acquisition of a majority stake of the Mutual International Bank
by Banque Indosuez of France, has relocated, changed its
electronic data processing system and restructured its
organization to prepare for full operation.

After the stake acquisition, IIB is now 70 percent owned by
Banque Indosuez and 30 percent by PT Mutual Promotion
Corporation.

Meda acknowledged that because IIB was busy with its
restructuring program during 1994, the level of its business had
been low in that year.

Last year the bank recorded an after-tax profit of Rp 1.67
billion, while its total assets were Rp 216.17 billion (US$98
million) as of last December, he said.

He said that the bank, which emphasizes its operations in
commercial and private banking for large-scale clients as well as
money market products, expected steady expansion in the coming
years, in line with the rapid growth of Indonesia's economy.

According to the Central Bureau of Statistics, Indonesia's
gross domestic product grew by 7.34 percent in 1994.

"We will see the emergence of new Indonesian groups active in
manufacturing and infrastructure, while the sharp increase in
foreign investments will boost the level of activity of
multinational companies and joint ventures," Meda said. (riz)