Sinar Mas sets up venture

JAKARTA (JP): Publicly-listed PT Sinar Mas Multiartha, the holder of financial firms in the Sinar Mas Group, said over the weekend that it has set up a joint venture with Asian Banking Corporation and Daehan Investment Trust Co. Ltd. of South Korea.

Sinar Mas stated that it holds a 30 percent stake in the venture, called PT AB Sinar Mas Multifinance, while Daehan controls a stake of 30 percent and Asian Banking 40 percent.

The venture is to officially commence operations today.

The president of the venture, Soon Kie Min, said the company will have an authorized capital of Rp 100 billion (US$42 million) and a paid capital of Rp 25 billion.

Sinar Mas Multiartha went public in July last year as a multifinance company. Early this year, it changed its line of business into treasury management and loan arrangement and became the financial holding company of Sinar Mas Group.

The change of the business lines was done to comply with the government's ruling on multifinance companies issued in December last year, which stipulates that a multifinance interest in its subsidiaries must not exceed 25 percent of the subsidiary's paid up capital and 40 percent of its own capital.

Sinar Mas Multiartha currently owns a 51 percent interest in publicly-listed Bank Internasional Indonesia, a 100 percent stake in PT Asuransi Sinar Mas, a 100 percent stake in PT Sinartama, a 100 percent stake in PT Sinar Securitas, and a 30 percent in PT Summit Sinar Mas Finance, a joint venture with Sumitomo Bank of Japan. (alo)