Japanese leasing firm expands in Indonesia
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Mitsubishi UFJ Lease & Finance Company Limited (MUL) has announced its subsidiary in Indonesia, MULI, has opened a branch in Bandung, in a bid to capture new business as the country’s economy improves.
The Bandung Branch is MULI’s second branch in Indonesia following the opening of its Surabaya Branch in October 2014. Since establishing a subsidiary in Jakarta in 1995, MUL has provided financing services focusing on mechanical equipment leasing and other activities for over 20 years.
MUL says it aims to tap into growing demand in Indonesia, which is experiencing high economic growth in the ASEAN region, and expand the business opportunities. To this end, MUL is actively working to develop its business through such measures as acquiring an auto lease company, diversifying funding sources with the issuance of Indonesian rupiah-denominated notes, and providing asset management services that attract strong demand in Indonesia.
Located about 150 km southeast of the capital Jakarta, Bandung, site of the latest branch, is the third largest city in Indonesia where the manufacturing and fiber/sewing industries are thriving. As a growing number of domestic and foreign companies are setting up their business there, growth is expected in the region. Through the establishment of the Bandung Branch, MULI will expand business bases in the West Java area and provide tailor-made services to meet the diverse needs of companies in Bandung and the surrounding areas.
Questions & Answers
Q.What is the primary reason MUL is expanding its operations in Indonesia?
What is the primary reason MUL is expanding its operations in Indonesia?
MUL aims to capitalise on the high economic growth in Indonesia, seeing it as an opportunity to capture new business and expand its financing and leasing activities in the ASEAN region.
Q.Besides opening new branches, what other strategies is MUL employing to grow its business in Indonesia?
Besides opening new branches, what other strategies is MUL employing to grow its business in Indonesia?
MUL is diversifying its business by acquiring an auto lease company, issuing Indonesian rupiah-denominated notes to broaden funding sources, and offering asset management services which are in high demand locally.
Q.Why was Bandung chosen as the location for MULI's newest branch?
Why was Bandung chosen as the location for MULI's newest branch?
Bandung is Indonesia's third largest city, with thriving manufacturing and fiber/sewing industries. Its growing number of domestic and foreign companies presents significant business growth potential for MULI.