Tempo and NatMut join forces

Tempo and NatMut join forces

JP/afs

Indonesia's Tempo Group and Australia's National Mutual Group
announced yesterday the operation of their joint life insurance
venture, PT Tempo National Mutual Life (TNML), with an authorized
capital of Rp 30 billion (US$12.48 million).

"The joint venture, with a paid up capital Rp 15.7 billion, is
80 percent owned by National Mutual Group and 20 percent by Tempo
Group," TNML's president, Chee Cheong, said yesterday.

The picture shows from left to right, Suyoto, the director for
insurances at the ministry of finance, Dian Tamzil, the
chairwoman of Tempo Group, Murray Cubban, the deputy head of
mission at the Australian embassy, Geoff Webb and Geoff Webb, the
managing director of National Mutual International at a reception
to launch the insurance company's operation.

TNML was established in 1993 as PT Tempo National Life, a
subsidiary of Tempo Group. The Ministry of Finance allowed
National Mutul Group to join in the company last January.

The government allows local insurance companies to set up
joint ventures with foreign partners two years after starting
operation with a minimum capital of Rp 4.5 billion, as compared
to Rp 2 billion required for the establishment of a domestic
insurance company.

TNML's chief commissioner, Gunawan Sudarmadji, said he was
optimistic about the insurance industry in Indonesia because of
its big population, expanding middle class, the sustainability of
its economic growth and an increase in awareness of insurance.

Chee said the current ratio of policy holders to per capita
gross domestic product was still very low at 0.5 percent. The
ratio in ASEAN is 1.3 percent.

The ratio in the Organization for Economics Corporation and
Development is 5 percent.

"We expect to make profit in seven years," he said.

TNML lost Rp 2.12 billion in 1994 and another Rp 2.39 billion
in 1995. (10)