LENDING & CREDIT | Cesar Tordesillas, Indonesia

BNI’s Q1 performance ‘on track’

BNI collected up to Rp 1.8 trillion or US$198 million in new mortgages in the first three months of 2012.


“Our outstanding mortgage is now at Rp 19.8 trillion, increasing from Rp 18 trillion as of the end of last year. We are on the right track,” said Bank Negara Indonesia consumer and retail director Darmadi Sutanto.

According to Darmadi, mortgage growth is supported by the bank’s policy of maintaining interest rates at about 9 percent on average. The bank is also giving mortgages with interest rates at 7 percent, which will be applicable for one year.

BNI’s mortgages grew by about 50 percent last year. The mortgage increase contributed to the bank’s 31 percent increase in consumer loans to about Rp 34 trillion in total. BNI is expecting that its mortgages will grow by 27 to 28 percent this year.

Besides the mortgage business, BNI is also boosting credit card business. The bank reported Rp 4 trillion of outstanding credit card loans as of the end of last year.

“The total outstanding credit card asset is currently about Rp 4.3 trillion,” said BNI general manager for its card business division, Dodit Probojakti, adding that the number of BNI credit cards has reached 1.8 million compared to 1.7 million at the end of 2011.

BNI is targeting to report a 35 percent increase in card lending this year to Rp 5.2 trillion.

Dodit said that BNI would target middle-upper income customers to maintain its credit card business as Bank Indonesia, the Indonesian central bank, would restrict credit card usages starting from Jan. 1, 2013. The restriction will also limit credit card ceilings at a maximum of three times people’s monthly income at Rp 3 million to Rp 10 million, and will prohibit the holding of more than two credit cards.

“The key to this industry is winning customers’ hearts. If those with Rp 3 million to Rp 10 million face imposed limitations, we will push for the middle-upper classes,” Dodit said.

BNI is also planning to add up to 2,000 new automatic teller machines this year.

“The new ATMs will replace the old ones. The net addition of ATMs will be about 1,500 units. Currently, we have 6,500 ATMs in total and hope to have 8,000 by the year end,” Darmadi said, declining to reveal the bank’s investment for the ATMs.

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