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)