Sinar Mas revamps its multifinance company
Sinar Mas revamps its multifinance company
JAKARTA (JP): PT Sinar Mas Multiartha, a publicly-listed
multifinance arm of the Sinar Mas Group, said yesterday it will
change its line of business because, under its current standing,
it does not comply with government rulings on multifinance firms.
Last December, the Ministry of Finance issued a regulation
stipulating that a multifinance company's interest in its
subsidiary must not exceed 25 percent of the latter's paid-up
capital and 40 percent of the former's own capital.
Sinar Mas Multiartha currently has a 51 percent stake in
publicly-listed Bank Internasional Indonesia, 100 percent in PT
Asuransi Sinar Mas, 100 percent in PT Sinartama, 100 percent in
PT Sinar Sekuritas and 30 percent in PT Summit Sinar Mas Finance,
a joint venture with Sumitomo bank of Japan.
Fransisca Iskandar, a director of Sinar Mas Multiartha, said
after an extraordinary meeting of the company's shareholders
yesterday that the firm will become the Sinar Mas group's
financial holding company, focusing its services on treasury
management and loan arrangements.
"In line with the change of our core business, we will hand
over our assets to PT Sinar Mas Multifinance, formerly known as
PT Sinar Supra Finance," Fransisca said.
"The change, however, will not affect our performance because
Sinar Mas Multifinance is 100 percent owned by Sinar Mas
Multiartha," she added.
She said that to support the operation of Sinar Mas
Multifinance, Sinar Mas Multiartha will increase its capital from
Rp 5 billion (US$2.1 million) to Rp 100 billion.
Fransisca also said that as of last December, the total
consolidated net assets of Sinar Mas Multiartha exceeded Rp 13.7
trillion, of which Rp 498 billion was in equity.
"We booked total revenues of Rp 1.9 trillion and net profits
of Rp 142 billion last year," she added.
She said that starting from June 1, Sinar Mas Multifinance
would be able to take over the factoring and leasing activities
of Sinar Mas Multiartha. (alo)