Principal committed to Indonesian market

Principal committed to Indonesian market

JAKARTA (JP): Iowa-based pension fund company Principal
Financial Group says it is committed to Indonesia's long-term
prospects despite the current crisis.

The company's president, J. Barry Griswell, announced here
recently that Indonesia's 207 million population was a vast
market for an insurance company like Principal Financial Group,
which runs a retirement fund scheme.

"Though Indonesia is facing its worst-hit crisis in decades,
it remains an important market for us," he said.

Principal Financial Group has a strong presence here through
PT Asuransi Jiwa Principal Indonesia, which also offers a defined
contribution plan through Dana Pensiun Lembaga Keuangan Principal
Egalita Indonesia.

As of the end of 1997, Principal Indonesia, established in
1994 with a paid-up capital of Rp 28.21 billion (about US$3.1
million at current rate), managed total assets worth Rp 1.24
billion and collected premiums worth Rp 511,940 million.

Principal Indonesia's vice president, Iskandar Sutadisastra,
said the country's retirement funds industry had not been
optimally exploited.

Citing data from the Ministry of Finance, he said that of the
country's total 36 million salaried employees, only one million
employees had joined a pension fund.

"This means that the country's pension fund business remains a
lucrative market to tap," he said. (aly)