ARNHEM, The Netherlands - Akzo Nobel announced the launch of a decorative-coatings joint venture in Indonesia with PT Bina Propertindo Edikarya that will produce paints for the Indonesian market. Akzo Nobel will hold a 65% stake in the business, the company said.

Production for the new company will be based in Cikarang, where Akzo Nobel's Marine and Protective Coatings business unit operates manufacturing facilities.

Rudy van der Meer, the member of the Akzo Nobel board responsible for coatings, said the venture "leaves us ideally placed to play a major role in future growth in this area," with the company benefiting from local production capabilities. Jan Andersson, general manager of Akzo Nobel Decorative Coatings International, called the launch of the venture "an important step in increasing our market share in the Asia Pacific region, where we already have operations in China and Vietnam." Indonesia "is a big market with great potential," he said.