Malaysian-Indonesian joint venture bank starts operation
Malaysian-Indonesian joint venture bank starts operation
JAKARTA (JP): PT May Bank Nusa International, a Malaysian- Indonesian joint venture bank, yesterday marked the start of its operation to spur businesses between the two countries.
The president of the bank, M. Haslah M. Amin, told newsmen here yesterday that his bank will allocate at least 50 percent of its loans to export activities and emphasize supporting economic relations between Indonesia and Malaysia.
With its capital of Rp 100 billion (US$46 million), the bank is focusing on corporate business, loan syndication, project financing, trade finance and infrastructure financing.
"We are prepared to do all activities of commercial banking, except retail banking as we do not yet know the market," Haslah said.
He added that as of yesterday his bank had approved two projects, one for the establishment of a plantation and the other a toll road, both valued at $50 million. The bank is still processing proposals for four more projects worth $30 million.
When asked, Haslah declined to mention the lending rates of his bank, saying that it will offer competitive rates. "For sure, we'll not be the highest," he said.
The joint venture bank, established on the basis of a memorandum of understanding signed in January last year, was inaugurated by Malaysian Prime Minister Mahathir Mohamad and Indonesian Coordinating Minister for Economy and Finance Saleh Afiff last November, to coincide with the second summit of the Asia Pacific Economic Cooperation (APEC) forum in Bogor, south of here.
The joint venture bank is 79 percent owned by Malayan Banking Berhad (Maybank) and 21 percent by PT Bank Nusa International, an affiliate of the Bakrie Group.
Maybank is the largest bank in Malaysia with a basic capital totaling two billion ringgit (US$784.3 million), including a 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 a paid-up capital of Rp 65 billion, and operates 10 branches. It plans to open a new branch in Bandung, West Java, later this month.(rid)