Merrill Lynch sets up business venture here
Merrill Lynch sets up business venture here
JAKARTA (JP): Merrill Lynch and Co. Inc. of the United States,
one of the world's leading diversified financial service
companies, announced yesterday it has set up a joint venture with
Indonesian company PT Persada Kian Pasti Lestari (PKPL).
The new venture is 80 percent owned by Merrill Lynch and the
remaining 20 percent by PKPL, a company controlled by Hasjim
Djojohadikusumo who is a son of senior economist Sumitro
Djojohadikusumo.
Under the name of PT Merrill Lynch Indonesia, the venture will
deal with the securities business, including corporate finance,
trading, underwriting, asset management and research, according
to a Merrill Lynch report made available yesterday.
The agreement makes Merrill Lynch, which operate offices in 38
countries, to be the first-U.S. based securities firm opening an
office in Indonesia. Its office is located in Jakarta.
"With this new venture, Merrill Lynch is uniquely positioned
to participate in one of the world's most vibrant emerging
markets," said Daniel P. Tully, chairman and chief executive
officer of Merrill Lynch.
"We're excited about the prospects for Indonesia's economy and
believe that, through this joint venture, our clients will be in
a position to realize maximum benefits from the inevitable growth
of one of Asia's most promising marketplaces," he added.
Hasjim, who is the venture's president, said: "Merrill Lynch's
commitment to this venture is further evidence that Indonesia's
future is bright. We look forward to the advice and experience
only the world's most prominent securities firm can bring to
Indonesia."
Advantage
Jerome P. Kennedy, Merrill Lynch's vice president, said that
his company will have a distinct advantage in identifying and
developing Indonesian investment opportunities.
"Further, with the potential we see in Indonesia, we look
forward to providing long-term investment opportunities for both
our institutional and retail clients, as well as assisting
Indonesian enterprises in tapping the international capital
markets," Kennedy said.
Merrill Lynch has served as lead underwriter of US$193 billion
in new securities issues worldwide as of last year.
The company, which posted a net revenue of $10.6 billion and
net income of $1.4 billion last year, has client assets exceeding
$548 billion.
Merrill Lynch early this month acted as global coordinator for
the Indonesian primary provider of international
telecommunications services, PT Indonesian Satellite Corporation
(Indosat), in its largest Asian initial public offering ever to
be listed overseas.
The securities firm also served as global coordinator for the
country's petrochemical producer PT Tri Polyta in July. (fhp)