Malaysian firms team up with Indonesian brokers
Malaysian firms team up with Indonesian brokers
KUALA LUMPUR (AFP): Two Malaysian firms have formed alliances with Indonesian groups to set up stockbrokerages in Indonesia to tap the potential of its securities industry, broking officials said yesterday.
Rashid Hussain Bhd., which owns Malaysia's leading broking house by the same name, is to invest eight million ringgit (US$3.2 million) for a 70 percent stake in the joint venture firm RHB Securities Jakarta, with the Suwoto family owning the remaining stake.
Another Malaysian firm, Waterfront group, headed by Chua Mah Yu, a former partner in Rashid Hussain, had linked up with Indonesia's PT Paramount Securities to form Waterfront Securities Indonesia, company officials said.
Chua is to buy an 85 percent interest for 500 million rupiahs ($240,000) in Waterfront Securities Indonesia.
Jakarta Stock Exchange president Hasan Zein Mahmud, who was in Kuala Lumpur to attend an Asian capital market conference, confirmed Tuesday the tie-ups.
Strategic
Analysts see the links as strategic long-term investments.
"It is a good move for those prepared to take a long-term view of Jakarta's potential. Such deals may be more expensive when the Indonesian securities industry develops further," said Tan Teng Boo, managing director of Capital Dynamics, a local investment consultancy firm.
For Rashid Hussain Bhd., which is listed on the local bourse, officials said the expansion was part of the financial group's plan to enhance its regional presence, having ventured into Singapore and Bangkok.
The linkages were formed as more such cross-border tie-ups emerge following a bilateral pact signed in January this year for more cooperation in the banking and financial services sector, officials said.
On Saturday, Indonesian timber group Barito signed a one- billion-dollar deal with Malaysia's listed Construction and Supplies House Bhd. (CASH) that would result in Barito and its chairman Prajogo Pangestu having a 70 percent control of CASH.