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)