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ublicly listed Bank Rakyat Indonesia (BRI) is eyeing net-profit growth of up to 12 percent this year to Rp 23.7 trillion (US$1.95 billion) on the back of a growing micro-loan sector, it announced in Jakarta on Wednesday.

Achmad Baiquni, BRI finance director said that the bank, which specializes in micro and retail lending, expected between 15 to 17 percent growth in total lending this year in excess of Rp 400 trillion.

'€œThe expected growth in lending is in line with Bank Indonesia'€™s [BI] indicative target,'€ Achmad told reporters at a press conference. '€œTo maintain our profit growth, we will focus on high-yield lending, such as to small and medium enterprises and micro businesses,'€ he said.

To maintain its business growth, BRI, which is majority-owned by the government, is planning to acquire other lenders as well as insurance and securities firms with an estimate total investment of
Rp 3 trillion.

BRI president director Sofyan Basyir said that the bank would also buy a satellite worth $250 million this year, using its internal reserves.

'€œThe only problem is that we haven'€™t received permission from the Communication and Information Ministry,'€ Sofyan.

'€œHowever, even if we received the permit now, it couldn'€™t be operated for another two years,'€ he continued. According to Sofyan, the satellite would be used to support BRI'€™s operational activities and to decrease costs.

Meanwhile, BRI reported shining 2013 results as its net profits surged 14.2 percent year-on-year to Rp 21.16 trillion, thanks to higher interest income and fee-based income. The growth in net profits in 2013 was lower than the 22.79 percent booked in 2012.

BRI director for small and medium enterprises (SMEs) Djarot Kusumayakti said that thriving SME business and e-banking services led to the positive growth in the bank'€™s bottom line.

BRI'€™s lending to the micro-sector totaled Rp 132.1 trillion last year, increasing by 23.7 percent year-on-year from Rp 106.8 trillion in 2012. As of December 2013, the number of BRI'€™s micro debtors reached 6.5 million.

According to BRI'€™s latest financial results, its total loans stood at Rp 430.62 trillion, surging by 23.7 percent compared to Rp 348.23 trillion year-on-year. Its third-party funds, increased 11.5 percent year-on-year to Rp 486.4 trillion, supported by higher low-cost funds (CASA).

Total third-party funds rose by 11.5 percent to Rp 486.4 trillion. Its savings accounts grew 15 percent to Rp 210 trillion. Meanwhile, its time deposits jumped 13.5 percent to Rp 198.35 trillion. However, its demand deposit decreased 0.9 percent to Rp 78.02 trillion.

Its interest income rose 61.5 percent to Rp 57.3 trillion last year, while its fee-based income was down 0.8 percent to Rp 8.1 trillion.

BI previously said that the growth target of between 5.8 percent and 6.2 percent and the current benchmark interest rate, which rose by 175 basis points to 7.5 percent since June had led to credit expansion of around 15 to 17 percent in 2014, down from the previous range of 19 to 20 percent.

As of 2013, BRI had total assets of Rp 606.37 trillion. Its liabilities amounted to Rp 527.5 trillion and its equities reached Rp 78.87 trillion.

On Wednesday, BRI'€™s shares ended at Rp 8,400 on the Indonesian Stock Exchange, up 0.9 percent on the previous day.