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)