SAN Finance Develops its Heavy Equipment Financing

In Line with the growth of the heavy equipment market in Indonesia, PT Sedaya Multi Investama (SMI), a subssidiary of Astra International, Marubeni Corporation and PT Surya Artha Nusantara Finance (SAN Finance) have revised their joint venture agreement in order to strengthen its business operation.

SAN Finance is part of Astra's Finacial Services business division. It was established in 1983 and is mainly involved in the heavy equipment financing business for products distributed by United Tranctors. Under the new agreement, Marubeni has increased its shareholding in SAN Finance from 4.91% to 40% through a rights issue, while SMI owns the remaining 60%. In addition, MArubeni is also providing SAN Finance with US Dollar funding support to meet financing demands in the market.

During the first stage of the new operation, SAN Finance plans to open branches in cities where the demand for heavy equipment financing is high. SAN Finance believes that this new arrangement will increase its support to United Tractors sales operation and, indirectly, increase its market share in Indonesia.

(source: Thistle The magazine of Jardine Matheson Vol1 2006 July)