Paribas to boost investment in Indonesia

Paribas to boost investment in Indonesia

PARIS (JP): One of France's major financial groups, Groupe
Paribas, will expand its banking and equity investment in
Indonesia's rapidly developing financial sector.

The chairman of Paribas's management board, Andre Levy-Lang,
said here Thursday that Indonesia was a potential site for
Paribas' Asian headquarters.

Paribas also was looking at expanding its retail, agro-food,
communications, constructions materials and pharmaceutical
operations in Indonesia, he said.

Paribas has been present in Indonesia for 22 years through a
representative office and Paribas-BBD Indonesia, a joint venture
bank with state-owned Bank Bumi Daya.

He said Indonesia, along with Hong Kong, China, Taiwan and the
Philippines would be one of Paribas' focuses in Asia.

Levy-Lang said his company led the first French export credit
deal with Indonesia in May 1975.

Last year Paribas was chosen as financial advisor for the
privatization of state-owned tin company PT Tambang Timah.

"This year we are bidding for work in with (the state-owned)
PT Aneka Tambang and PT Bukit Asam privatization," he said after
the signing of a loan facility to Indonesian telecommunications
operator PT Satelindo.

Last year Paribas bought 8 percent of plastics maker PT
Dynaplast, he said.

Levy-Lang said Paribas also indirectly controlled Irian Jaya
oil explorer PT Coparex, Jakarta building firm PT SAE, and
Surabaya food mill operator PT Wirifa Sakti.

Under the agreement with Satelindo, Paribas will extend a
US$135 million loan which Satelindo will use to expand its mobile
cellular phone project based on a contract with French
telecommunications equipment maker Alcatel.

The loan is the biggest export credit ever signed by France
with a private Indonesian firm.

Levy-Lang said the loan was supported by the French
authorities and COFACE.

"Asia is a region considered by Paribas as a priority
development zone. Paribas's emphasis will include banking
activities and shareholdings," he said.

He said Paribas had branches and representatives in Tokyo,
Hong Kong, Singapore, Vietnam, India, Malaysia, Thailand,
Indonesia and China.

Paribas has four major units. They are international wholesale
bank Banque Paribas which was set up in 1872, finance firm
Compagnie Bancaire, retail bank Credit du Nord and Paribas
Affaires Industrielles which manages several industrial and
commercial equity holdings. (icn)