Jakarta October 18, 2013 – With its commitment to serve and empower lower income groups, as well as micro & small enterprise entrepreneurs, including members of the pre-prosperous productive community (mass market), PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) has extended its positive performance.
This performance growth is part and parcel of the BTPN strategy of integrating its business and social missions. “BTPN believes that mass market customers not only require financial access, but also training and guidance to help them enhance their business capacities,” said Jerry Ng, President Director of BTPN.
Buoyed by this belief, BTPN organizes, on a regular basis at all its branches, the Daya program which provides training and information to enhance the capacities of its customers, who include retirees, micro & small enterprise entrepreneurs, as well other members of the mass market.
Furthermore, Jerry declared that the Daya program has been proven to have a positive impact on the enhancement of customer capacities. The results of research carried out by IPB Management and Business (MB IPB) and BTPN in February of this year showed a positive correlation between the frequency of training program attendance and the turnover and operational costs of a customer’s business. “A customer who is disciplined puts the Daya program financial training into practice in running his or her business, and consequently experiences direct benefits from this training,” added Jerry.
One example is that of Suno, aged 58 and a resident of Karang Kedawang, Mojokerto, who was a regular sandal maker to begin with. However, thanks to hard work and persistence, he has now ‘risen up the ranks” to become a successful sandal craftsman. Suno began his business in 2008, with a small amount of capital and management ability. This gentleman, who had only completed Grade 3 of Primary School, became a BTPN customer and received a loan for use as capital in 2010.
Thereafter, Suno began to gain an understanding of business management. Through training and guidance provided by BTPN, Suno became increasingly confident in managing his business, both on the product side as well as in terms of marketing and financial management. To begin with, he had credit of Rp 30 million, but after three top-ups this has now reached almost Rp 100 million. Suno now employs six permanent workers and, on average, is able to produce 800 pairs of sandals a day.
“We are optimistic that the Daya program will continue to enhance the capacities of our customers, just as experienced by Mr Suno,” Jerry continued.
From January to the end of September 2013, 1,040,815 people have benefited from the Daya Program. This total represents an increase of 25% from that of the same period in 2012, during which there were 832,986 beneficiaries. The number of activities held during the first nine months of this year has also risen by 69%, from 35,105 activities during the first nine months of 2012 to 59,273 activities so far this year.
Supported by the Daya Program, by the end of September 2013, credit disbursement had grown by 22% (year-on-year/yoy) from Rp 37,08 trillion on September 30, 2012 to Rp 45,3 trillion on September 30, 2013. This rise in intermediation remained offset by the application of prudent banking principles as reflected by a net non-performing loan/NPL ratio of 0,37% at the end of September 2013, lower than the net NPL ratio at the end of September 2012 which stood at 0,39%.
BTPN’s focus on serving the mass market segment is gaining it increasing public attention and trust, as reflected by an increase in third party funds (TPF). Through BTPN Sinaya, the total value of public deposits grew by 15% (yoy) from Rp 42,6 trillion as of September 30, 2012 to Rp 49,03 trillion as of September 30, 2013.
“The public believes that, by saving funds in BTPN Sinaya, besides getting an optimal rate of return, they will also have the opportunity to contribute to the empowerment of lower income groups and micro & small enterprises. Through BTPN Sinaya, BTPN offers the opportunity to all savers and depositors to participate in our mission of empowering the millions of Indonesians who make up the mass market,” said Jerry.
In line with the growth of credit and TPF, BTPN’s total assets rose by 17% (yoy) from Rp 56,5 trillion on September 30, 2012 to Rp 66,2 trillion on September 30, 2013. Likewise, net profit after tax (NPAT) grew by 24% (yoy) from Rp 1,4 trillion on September 30, 2012 to Rp 1,8 trillion on September 30, 2013. Meanwhile, as of September 30, 2013 BTPN recorded a capital adequacy ratio (CAR) of 23%, up from the CAR level of September 2012 which stood at 21,6%.
“With CAR of 23%, going into the future we are sure that we have ample room for further growth, while continuing to support inclusive financial initiatives through the application of sustainable innovations that allow us to reach sectors of society in remote places that are yet to have access to banking services,” said Jerry.
This commitment is manifested in the development of branchless banking in the form of BTPN WOW! This is a banking service for the mass market which utilizes mobile phone technology and is supported by the services of an agent. This agent acts as an extension of BTPN in expanding the reach of services to customers in all corners of Indonesia. The presence of agents provides added points of sales for customers, while reducing the operational burden on the bank, as there is no need to build infrastructure in the form of branch offices.
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