HSBC Aggressive in Micro Financing

Becoming foreign bank is not a problem for HSBC to be aggressive in the
competition in micro financing by targeting to have 500,000 customers.

The Chief Executive Officer of HSBC Indonesia Rakesh Bhatia said the bank
is committed to support Indonesia amid the risk of global turbulence that
overshadows the country.

"By having more branch offices we show our long term commitment in
Indonesia," he said while launching four new branch offices of the bank
yesterday.

For micro sector, he said, the bank will focus on individual and
productive sector. The sector, he said, should support the corporate
service provided by the bank.

He said the government also has offered the bank to take part in corporate
and infrastructure financing.

"We always see opportunities. At least we have just take part to become
underwriter for US$2 billion global bonds for the country."

So far the icon in micro financing is PT Bank Rakyat Indonesia Tbk, as it
has thousands of office to the village level.

But presently Bank Danamon also has been in this sector by opening 7,000
units of Danamon Simpan Pinjam.

Some rural bankers have been complaining that their market was seized by
the aggressiveness of big banks. But the big banks have said that the
market is still huge.

Ravi Sreedharan, the Head of Personal Financial Services HSBC, said that
micro financing is one out of its four focuses.

He said the bank has opened 64 offices of micro banking. Today the bank
has had 80 units of office.

"We will open at least 15-20 offices this year plus around 40 offices of
micro banking unit."

Ravi said that the total customers of the micro unit have been 130,000,
and at the end of the year it will be 500,000.

He said that the sharia service of HSBC Amanah is aimed at supporting the
policy of micro financing. He said that the conventional and the sharia
service offer individual banking service such as wealth management.

HSBC Amanah also provide investment base product like mutual fund - in
cooperation with AIA insurance and Fortis Investment. The bank has been
managing IDR150 billion for the service.

On corporate sector HSBC Amanah provide sharia syndication such as US$322
million for Pertamina in 2004, followed with US$200 million in 2006.

In 2007 HSBC Amanah also provide syndication loan of US$50 million for
Krakatau Steel and US$128 million for Berlian Laju Tanker.

--------------------------------------------------------------------
This message contains confidential information and is intended only for the
addressee named. If you are not the named addressee (or authorised to
receive for the addressee), you must not disseminate, distribute or copy
this email.Please notify the sender immediately by e-mail if you have
received this e-mail by mistake and delete this e-mail from your system