Jakarta. China-based Shandong Heavy Industry Group has inked a joint venture deal with media magnate Hary Tanoesoedibjo's leasing company, MNC Leasing.

Under the agreement, Shandong’s subsidiary, Sinotruk, will acquire a 40 percent stake in MNC Leasing, a heavyweight in the heavy equipment leasing business, for Rp 274 billion ($17.5 million).

"We are confident that MNC Leasing and its strategic partner, Sinotruk, have the strong potential to become a market leader in this business," Hary, the executive chairman of MNC Group, said in a statement on Tuesday.

The funding generated from the new stock issuance will be directed towards expanding MNC Leasing’s network, with a focus on locations in close proximity to mining areas, strategically placing heavy equipment closer to potential customers.

The collaboration is expected to propel sales of Sinotruk’s heavy equipment and vehicles, with MNC Leasing serving as the financing service provider, according to Hary.

Furthermore, MNC Leasing foresees additional investments from its international partners following the new agreement with Shandong Heavy Industry Group.

The deal requires approval from the Financial Services Authority before coming into effect, a process expected to take up to six months.

The arrival of Sinotruk as a new investor will also usher in changes to MNC Leasing's management, including the introduction of two directors and a commissioner representing the Chinese firm.

Hary said MNC Leasing will concentrate on marketing Sinotruk heavy equipment and vehicles, particularly targeting the country’s mining sector.