AstraWatch News: Week - 7 Aug 06

Astra-Toyota Establish Multifinance Company
from Bisnis Indonesia (www.bisnis.com)

PT Astra International Tbk and Toyota Motor Corporation are in cooperation to establish multifinance company PT Toyota Astra Financial Services (TA Finance) with the total investment of IDR2 trillion.

The financing company is aimed to control the credit on Toyota cars credit worth IDR600 billion - IDR700 billion to finance 6000 units of car financing.

The President Director of TA Finance Buntoro Muljono said that such integration is aimed at boosting the sales of Toyota cars in Indonesia through Toyota business chain.

"Yes, it is aimed at boosting the sales of Toyota. Due to the high application, we are optimistic to meet the target of 6000 units of cars," he said during the launching of the company.

With such service, he said, the buyer could get one stop service.

Buntoro said that to establish the company, Toyota has acquired PT KDLC Bancbali Finance, from Korean company Korea Development Leasing Corp. and Bank Bali [presently Bank Permata].

The company acquired the multifinance company as the government has stopped granting the license to open multifinance company.

"We have acquired a multifinance company, KDLC Bancabali Finance, and then changed it to TA Finance."

The two shareholders have injected IDR500 billion this year, and the rest IDR1.5 trillion will be injected if the company needs additional liquidity.

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Toyota Astra Finance
PT. Toyota Astra Financial Services (TA Finance) is a joint venture between Toyota Financial Services Corporation (TFSC) and PT. Astra International Tbk (AI)., whose relationship has spanned for over 50 years. Memorandum of Understanding was signed in September 2005, an initiative which aims to be the most preferred and ultimately, the only financing solution for Toyota vehicle ownership.