Aberdeen Asset Management has received the green light from Indonesia’s financial regulator to acquire 80% of the share capital of PT NISP Asset Management (NISPAM) from NISP Sekuritas.
The go-ahead from securities regulator Otoritas Jasa Keuangan (OJK) followed similar approval by the Monetary Authority of Singapore (MAS), where Aberdeen’s Asian arm is headquartered.
Aberdeen said that the change in control of NISPAM was expected to take place in November, and would be followed by a rebranding of the Indonesian outfit to PT Aberdeen Asset Management. The deal was originally announced in February this year, although financial terms were not disclosed.
Hugh Young, managing director, Aberdeen Asset Management Asia, told Asia Asset Management that it sought to make its new acquisition the leading asset manager in Indonesia. “Our progress will depend in part on expanding our distribution among local consumer banks, insurers and other intermediaries. There is the potential to introduce our expertise in global asset classes, particularly if the regulators loosen the current cap of 15% exposure to non-domestic assets in any fund,” he said.
The attraction of the deal stemmed from the access it provides to a relatively young, but potentially high growth market, Mr. Young added.
Sigit Wiryadi, head of NISPAM, who will remain in charge of the business, added: “The integration of the company onto Aberdeen’s global operating platform has started. The OJK’s approval now puts this into motion formally. As part of the integration, we plan to add to the existing team, move to new offices and rebrand in the coming months.”
Aberdeen will work with NISPAM to introduce its global fund management processes, dealing, operations, compliance and risk management systems.
NISPAM has been operating in Indonesia since 2001. It manages mutual funds, protected funds and discretionary accounts on behalf of institutional, corporate and retail clients in the country.
Aberdeen’s Asian subsidiary has been investing in Indonesia since the 1980s, including more than US$2.8 billion in local equities on behalf of its global clients. It was the first foreign asset manager to launch a dedicated Indonesian equity fund in Singapore in 1997. In Asia, Aberdeen manages $109.9 billion in assets.
