Mandiri, Principal to tie up

Mandiri, Principal to tie up

JAKARTA (JP): Principal Financial Group said on Wednesday it
had signed a memorandum of understanding to enter into a joint
venture with Bank Mandiri to provide retirement programs, mutual
funds and investment management services to the bank's customers.

The MOU was subject to the approval of each company's
governing boards, the Indonesian and United States governments as
well as shareholders, the Principal said in a statement.

It said the potential joint venture was very attractive to
both Principal and Mandiri as it would combine the retirement
services and investment expertise of Principal with the strong
brand name, broad distribution capability and large customer base
of Mandiri.

"This transaction shows our confidence in the future of
Indonesia and our desire to grow our business here," said Doug
Rasmussen, president of Principal Indonesia.

Mandiri's president and chief executive officer Robby Djohan
said, "Bank Mandiri and The Principal are both market driven
companies that together will be even more focused on the
retirement savings need of small and medium-sized businesses and
their members." (jsk)