The Economist, a UK-based weekly news publication, recently commented on the growth of the microfinance activities of Bank Tabungan Pensiunan Nasional (BTPN), an Indonesian commercial bank. According to The Economist, BTPN’s microfinance portfolio growth is fueled by the informal economy on the populous island of Java including market traders, repair shops and household producers. BTPN equips staff with portable devices to scan fingerprints and bank cards to serve illiterate customers and also facilitate real-time information exchange between its branches and head office. BTPN also offers free financial skills training courses to its microborrowers.
Jerry Ng, CEO of BTPN, reportedly predicts that the bank’s overall loan-growth rate in 2011 will be around the 20 percent mark, compared with 48 percent in 2010 [1]. Mr Ng is also working on a strategy for the “productive poor,” who are currently served by nonprofits and have lower incomes than household producers currently served by BTPN.
In 2010, BTPN reported a 4 percent return on assets and a microloan portfolio of IDR 4.6 trillion (USD 500 million), representing approximately 20 percent of the bank’s total loan portfolio [1]. BTPN does not report to the US nonprofit Microfinance Information Exchange (MIX).
By Medha Ravi, Research Associate
About Bank Tabungan Pensiunan Nasional (BTPN):
Established in 1958 in Indonesia, Bank Tabungan Pensiunan Nasional (BTPN) was first established under the name Bank Pegawai Pensiunan Militer (BAPEMIL) to accept deposits and provide loans to its members, which consisted of pensioners, civil servants and military personnel. BTPN obtained its commercial bank license in 1993 and started serving micro- and small enterprises (MSEs) in 2008. In 2010, BTPN reported a 4 percent return on assets and a microloan portfolio of IDR 4.6 trillion (USD 500 million), representing approximately 20 percent of the bank’s total loan portfolio. BTPN does not report to the US-based nonprofit Microfinance Information Exchange (MIX).
Source and Resources:
The Economist news article, “Microlending has helped make BTPN one of Asia’s most profitable banks”, http://www.economist.com/node/18587177?story_id=18587177&fsrc=rss
MicroCapital.org story, December 23, 2010, “MICROCAPITAL BRIEF: Indonesia Launches Microfinance Loans to Help Citizens Arrange to Work Abroad As Migrants”, https://www.microcapital.org/microcapital-brief-indonesia-launches-microfinance-loans-to-help-citizens-arrange-to-work-abroad-as-migrants/
MicroCapital.org story, November 29, 2010, “MICROCAPITAL BRIEF: Microfinance Dominates Shariah Lending in Indonesia, Commercial Banks Take Notice”, https://www.microcapital.org/microcapital-brief-shariah-microfinance-invokes-expansion-of-indonesian-banks/
MicroCapital’s Microfinance Universe profile: Bank Tabungan Pensiunan Nasional (BTPN), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+Tabungan+Pensiunan+Nasional+%28BTPN%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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