NISP to establish venture with OCBC

NISP to establish venture with OCBC

JAKARTA (JP): Publicly-listed Bank NISP announced yesterday
that it will set up a joint venture bank with Overseas Chinese
Banking Corporation (OCBC) of Singapore with a paid-up capital of
Rp 150 billion (US$64 million).

NISP has said it will take a 15 percent stake in the joint
venture, to be called PT Bank OCBC-NISP, while OCBC will hold the
other 85 percent.

"The joint venture bank has received approval from the
Ministry of Finance and is expected to begin operation late this
year," said a director of NISP, Pramukti Surjaudaja.

Pramukti said that the partnership will create a synergy
because OCBC has a strong middle class customer base. On the
other side, NISP is well-positioned in retail banking.

He said that the new bank, which will open its headquarters in
Jakarta, would not affect the operation of another NISP venture,
Bank Daiwa Perdania, because the two banks will target at
different customers.

Bank OCBC-NISP, according to Pramukti, will provide a full
range of commercial banking services, with a particular emphasis
on the wholesale and middle markets.

Meanwhile, OCBC said in statement as quoted by Reuters from
Singapore yesterday, that it would have management control of the
bank, which would seek to facilitate trade and investment between
Singapore and Indonesia, and serve as an important link in OCBC's
network of branches. (alo)