Exclusive: M. Stanley trumps Goldman in Indonesia brokerage deal

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Morgan's move to expand in Indonesia, recently lifted to a sovereign investment grade status, follows Nomura Holdings <8604.T> and Citigroup who last year ramped up equity teams in Jakarta to challenge leaders Credit Suisse and Deutsche Bank .

A full broking licence from the deal, which still requires regulatory approval, would allow Morgan Stanley to cover the secondary side of sales and trading as well as research, in a country that saw a record high stock market <.JKSE> last year and which is expected to see new fund inflows after the rating upgrade.

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Graphic on top deal underwriters in Indonesia: http://link.reuters.com/qyz36s

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The Tiga Pilar deal size is likely to be small as Morgan is only seeking to buy the brokerage licence that the deal will provide. It will need to at least inject the 50 billion rupiah ($6 million) in licence costs and required brokerage capital.

Tiga Pilar, partly owned by the family of Tan Pia Sioe, traded 178 billion rupiah by stock value in the first nine months of 2011, ranking it 114 out of 117 active brokerages, according to stock exchange data.

NEW HIRES

Morgan Stanley has hired James Brewis, former head of sales at UBS's Indonesia unit, as the head of its Indonesian equities and plans to hire more salesmen, traders and research staff in coming months, three sources said.