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)