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)