Sinar Mas sets up venture

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)