PT ORIX Indonesia Finance: Customer Satisfaction - Number One

PT ORIX Indonesia Finance: Customer Satisfaction - Number One
Priority

Customer satisfaction! This is one of the keys to success for
PT ORIX Indonesia Finance (ORIF), a company providing leasing
services. It has enjoyed a remarkable achievement in its business
in Indonesia in the past three decades, and owes much to customer
satisfaction.

President Director of ORIF, Yoshinori Matsuoka, is convinced
of the truth of the age-old, but still relevant, adage in the
business world that the customer is king. "My mission is to meet
our clients every day," he said.

ORIF is a joint venture undertaking between Japan's ORIX
Corporation (85%) and the Bank Indonesia Welfare Foundation
(15%). Established in April 1975, the company has shown a dynamic
growth and is a leader in the financing service in Indonesia.
"Not many Japanese companies in this business, and who have
partnered with Indonesian companies, have been able to survive.

There are only a few such companies that have survived the
'1997 monetary crisis," Matsuoka said.

ORIF has managed to survive, Matsuoka said, because it can
provide funds at a lower cost. The company has gone through a
long process to reach this stage. At first, the company, which
was called PT Orient Bina Usaha Leasing (OBUL), was a joint
venture undertaking between Orient Leasing Co. Ltd. (OLC) and PT
Bina Usaha Indonesia. OBUL, the pioneer in the leasing industry
in Indonesia, has developed various leasing products.

In 1982, it opened its first branch office in Surabaya and now
it has a total of nine branch offices, spread throughout Bandung,
Semarang, Solo, Medan, Palembang, Central Jakarta, South Jakarta
and North Jakarta

In 1989, Orient Leasing Co. Ltd. changed its name to ORIX
Corporation while OBUL became PT ORIX Bina Usaha Leasing (also
OBUL in short). Three years later, after obtaining a license to
deal in the multi-financing business in November 1991 and
increasing its capital to Rp 30 billion, OBUL became
ORIX Indonesia Finance (ORIF)

In August 1997, ORIF raised its equity to Rp 100 billion. With
greater capital, the company can develop its business in various
areas such as consumer financing, corporate financing and
operating leases, aside from providing financial leasing
services.

"In the future, through the global network of the ORIX
Corporation, we are determined to facilitate entrepreneurs' needs
for capital, particularly in other Asian countries," said Kenro
Seishima, Director Executive Officer of ORIF.

It was not just a dream, because ORIX Group, a giant
multinational company now controls a network of 202 consolidated
companies and 74 affiliated companies in 24 countries, is now
operating as a dynamic and coordinated entity in an attempt to
make ORIX a leading company in providing innovative services.

ORIX Corporation, set up in 1964 and listed on the New
York Stock Exchange (NYSE) in 1998, is Japan's 12th company and
2nd financial institution listed in NYSE.

Generally, ORIF's business areas go into four divisions: (i)
Financial Lease; (ii) Consumer Finance; (iii) Corporate Finance
and (iv) Operating Lease.

Finance Leasing, which is ORIF's main business, provides
financing for heavy-duty equipment, industrial machinery and
motorized vehicles. The company's consumer financing division
provides consumer financing for products like automobiles and
computers.

Meanwhile, the Corporate Finance Division, which was
established in 1991, will fulfill the demand of large companies
for capital goods.

The Operating Lease Division, which was set up in 1996,
provides leasing of vehicles and IT sets with various added
values for the clients. This division, for example, leases new
automobiles of famous makes from Europe, the United States and
Japan. During the leasing period, a client only has to pay for
gasoline, toll road charges, parking fees and the cost of car
wash. All costs related to maintenance (damage and routine
service), insurance, towing, the renewal of the license plate,
substitute automobiles and 24-hour services in Indonesian,
English or Japanese, will be borne by ORIF through its branch
offices in Java and Sumatra. When a contract terminates, the
client can renew the contract or return the automobile to ORIF.

If a company makes use of a business leasing service, it will
avoid such problems as depreciation and inflation. More
importantly, a leasing system of this type will not trouble the
company's cash flow because the goods obtained on lease will not
be considered as assets in the company's accounting records.

"In short, a business leasing service will maximize a
company's profit," said Seishima.

Now employing around 300 people and securing total assets of
some Rp 2.5 trillion, ORIF, which enjoyed a before-tax profit of
Rp 135 billion as per March 2004, is Indonesia's largest joint-
venture leasing company today.

ORIF is optimistic that it will continue to show great
progress in the coming years. Its business plan for the next
three years is as follows:
- To raise its assets threefold to Rp 5 trillion
- To strengthen its corporate financing division by providing
various products that companies or employees of the companies
need
- To start with ship financing;
- To facilitate the capital needs of entrepreneurs,
particularly in Asian countries, through the global network of
ORIX Corporation

ORIF has remained true to its commitment to increase its
business volume by raising its equity to Rp 420 billion in March
2005.