Driving auto credit

Realising that losses from its auto finance joint venture in Indonesia could amount to 350% of its profits, GE Money took financial control of the unit in late 2005 and sent in three executives, including a new chief risk officer. By Kathleen Kearney

GE Money's Indonesian auto loans joint venture, Astra Credit Companies (ACC), has achieved a healthy turnaround in its loan loss ratios and seen a steady improvement in its net income in the past 18 months, following the introduction of a new risk management model established by chief risk officer Alan Ni.

"We have developed a risk model which gives us an estimate of what our future loan losses will be based on bookings made today with a very high confidence level," says Jakarta-based Ni. "We can