Shiseido has signed a joint venture agreement with PT Sinar Mas Tunggal, a subsidiary of the Indonesian conglomerate Sinar Mas Group. The new company, PT Shiseido Cosmetics Indonesia, will begin operations in July. The joint venture is capitalized at 50 billion rupiah (approximately 450 million yen at last month's exchange rate), with Shiseido holding a 65% stake and the Sinar Mas Group holding a 35% stake. The company aims to expand sales by strengthening its prestige offerings, including global brands like Shiseido and Clé de Peau Beauté, a premium brand launched in Indonesia in 2010, while focusing on the masstige category (which offers a more luxurious feel than mass-market brands but at a more affordable price point). In a country where approximately 60% of the population is under 35, the company will strengthen marketing of its masstige brand, Za, aimed at Asian women in their 20s. Shiseido began selling in the Indonesian market in 1958. Since 1994, Shiseido has been using PT Dian Tarunaguna, a subsidiary of the Sinar Mas Group, as its agent, and has been considering making direct investments in Indonesia, where the cosmetics market is growing at over 10% annually.