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)