CARDS & PAYMENTS | Cesar Tordesillas, Indonesia

Mutiara expects improved value as part of BCA's ATM network

Bank Mutiara is expecting its value to increase by joining the ATM network of BCA.


The bank hopes to attract investors to make bids to take the bank over from the Deposit Insurance Agency, LPS.

Mutiara signed an agreement with PT Rintis Sejahtera, which manages the Prima ATM network, in which BCA has been linking its ATMs with other lenders. The agreement will allow Mutiara’s customers to use banking services at 34,600 ATMs in the Prima ATM network, which includes more than 8,500 BCA ATMs nationwide.

“This is a strategic agreement, which will allow the holders of Mutiara’s 193,000 accounts to use the network. This is also one of our efforts to increase the value of Mutiara, as the network will benefit our customers,” Mutiara president director Maryono said.

Currently, Mutiara has 244,000 customers in total. The bank has 61 ATM machines with transactions reaching 45,000 per month.

“In the near future, Mutiara’s customers will also be able to use their ATM cards as a debit card. Many of our customers are also BCA customers,” Maryono said.

According to Maryono, Mutiara reported significant improvements in the last three years, after the bank was taken over by LPS in 2008 following a government bailout of Rp 6.76 trillion.

Maryono added that the agreement would help his company to increase its low-cost fund and fee-based income. He said Mutiara was targeting a 50 percent increase in deposits transactions and a 24 percent increase in fee-based income to Rp 120 billion this year from Rp 97 billion in 2011.

LPS has to repair and sell Mutiara within three to five years of the acquisition for at least the price the agency paid in 2008.

“The acquisition, which cost Rp 6.7 trillion, was about 35 percent of LPS’ assets at that time. We’ve been working to increase the bank’s value so that we can sell it. We have until 2013 to sell the bank for at least the price we paid for it and in line with market prices thereafter,” LPS board of commissioners’ chairman, Heru Budiargo, said.

Heru said that about 10 investors have submitted applications to take over Mutiara. LPS opened an offer period for Mutiara’s sale in February 2011 and will close the period by the end of April 2012.

“We hope the chance of selling Mutiara will be better than last year, as the bank has improved in both financial and nonfinancial sectors,” Heru said.

Last year, nine investors expressed an interest in buying Mutiara but all of them failed.

BCA president director Jahja Setiaatmadja said his bank would not be making a bid for Mutiara as it focused on organic growth.

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