Mahathir to inaugurate joint venture bank

JAKARTA (JP): Malaysian Prime Minister Mahathir Mohamad is scheduled to inaugurate PT May Bank Nusa International, a Malaysian-Indonesian joint venture bank established with a capital of Rp 100 billion (US$46 million), at a ceremony here today.

Coordinating Minister for Economy and Finance Saleh Afiff is expected to attend the ceremony at the Shangri-La hotel, Bangun Sarwito Kusmuljono, a commissioner of the joint venture, revealed over the weekend.

He said the joint venture bank, established on the basis of a memorandum of understanding signed in January, is 79 percent owned by Malayan Banking Berhad (Maybank) and 21 percent by PT Bank Nusa International in Indonesia.

The new bank will allocate at least 50 percent of its loans to export activities and emphasize supporting economic relations between Indonesia and Malaysia, he said.

Bangun, who is also president of Nusa Bank, said that the joint venture bank's management will be led by M. Haslah M. Amin and Budi Permana and Abdul Rahman M. Khalid will be directors. Its board of commissioners will be chaired by Sujitno Siswowidagdo.

Maybank is the largest bank in Malaysia with basic capital totaling two billion ringgit (US$784.3 million), including paid- up capital of 1.14 billion ringgit. It operates 226 branches in Malaysia and 28 others outside the country, with two overseas representative offices. It also has a subsidiary in Papua New Guinea.

Nusa Bank, established by the Bakrie Group in November 1989, currently has an authorized capital of Rp 300 billion ($137 million), including paid-up capital of Rp 65 billion, and operates 10 branches. It plans to sell some of its shares to the public next year. (riz)