Jakarta: Special attention
to the agricultural sector
Ëtr
Before the Representative Office was opened in Jakar-
m ta in 1986, Rabobank was already active in indonesia
gg through the Rabobank Foundation by providing techni-
H cal assistance for the development of a cooperative
rural credit system. Aithough there was no relationship with the
commercial activities of Rabobank Nederland, the experience
gained during this period with the Foundation gave Henk Adams
the advantage of a smooth 'take off'.
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Issue 3/April 5, 1989
nominated in Dutch Guilders. Then the
Corporate Advisory Services. The inten-
tion is to stimulate investments by Asians
in Europe especially in the Netherlands
and vice versa. This is in addition to the
normal corporate advisory services such
as management buyouts, capital raising
exercises and others. Last but not least
the Capital Market Activities. In time with
the Institutionai Investment Advisory ser
vices, the need for market making capa-
bility is essential. Rabobank Asia Ltd will
initially focus on marketing Dutch Guilder
papers with the eventual objective of de-
veloping its own Asian Fund. Rabobank
Asia will also contribute to the funding of
the Rabobank Group.
Exit the dragon and enter the golden
snake (as of 6 February 1989). In Chinese
mythology, the golden snake signifies
building and growing and that is preciseiy
what we shall be doing in 1989.
Rabobank Asia Ltd., the merchant bank for the Far East: General Manager Frederik Hoek and his
senior staff.
The objectives for the establishment
of a Representative Office in Indone
sia are in line with Rabobank's gen
era! policy: to support the existing cus-
mers in Indonesia in activating Dutch-ln-
„onesian business relationships, especial
ly in the field of the agro-industry but at
the same time to contribute to the bank's
profitability. The reason why there is a rep-
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resentative office in Indonesia and not in
the other countries in the region, is that In
donesia, with its more than 13,000 is-
lands and a population of over 150 million
people, offers many opportunities for busi
ness development. As a major oil and gas
exporter, it has profited in the past decade
largely from the booming oil prices. The
sharp decline in oil prices during the
The staff of the Jakarta representative office: Henk Adams as representative. Maria Kristanto (m)
as executive secretary and assistant. Elly Lysana (r), secretary and receptionist.
1980s however made it necessary for the
Government to stimulate investments in
other export-oriented industries. Especially
since 1987, a wide range of deregulation
measures have been taken to attract for-
eign investors.
Agriculture Special attention is paid to
the development of the agricultural sector,
whereby investment in processing of agri
cultural products including fishery for ex
port is stimulated, opening opportunities
for our customers to participate in joint-
ventures and/or to sell machineries to In
donesia. The tropical climate of Indonesia
combined with its fertile soil allows the
cultivation of a large variety of products
which could be processed for export such
as: wood products, cane furniture, flowers
and plants, nuts, mushroom, asparagus,
etc. and commodities such as rubber, cof-
fee, tea, tapioca, cocoa and palm oil.
Due to the present regulations in In
donesia operational activity is impossible
for our bank. The office staff is therefore
limited to three people who provide trade
references, assist prospective investors,
prepare loan applications and documenta-
tion and in general promote Rabobank.
Since the start of the operations, hun-
dreds of requests for information have
been received and the resulting business
concluded so far is better than was fore-
seen. To support the activities and also to
be able to offer medium-term financing in
the local currency, a 10% participation in
UPPINDO, an Indonesian private develop
ment bank, was recently concluded.
Looking ahead, Indonesia will become
increasingly industrialized in the years to
come, especially in labour intensive indus
tries due to the still comparatively low
labour costs. The Government has taken
measures to stimulate local processing of
raw materials by prohibiting exports such
as timber and rattan. Notwithstanding the
Indonesian saying 'jam karet' or 'rubber
time' (it can be stretched) the pace of
progress is undoubtedly increasing. Doing
business in Indonesia is based rather on
personal relationships and experience
than on the strength of financial state
ments so important to bankers. However
this makes for an even greater challenge
to lending officers.
