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ajor financing firm PT Adira Dinamika Multi Finance, the automotive financing arm of private lender Bank Danamon, is considering taking over sister company Adira Quantum Multifinance to boost efficiency, an executive with the firm said on Monday.

Hafid Hadeli, director and chief of sales and distribution at Adira Finance, said the takeover would help the company begin financing other types of products beside vehicles as Adira Quantum mainly provided loans for electronic appliances through Adira Kredit.

Hafid said the corporate action could take place before the end of the first half. However, he said the plan was still under review and subject to the approval of shareholders in a general shareholders meeting scheduled for May.

'€œWe have not decided whether the mechanism will be to merge Adira Quantum into our business or through other options,'€ Hafid said after a press conference, adding that Adira Finance would not involve any strategic investors in the plan.

Hafid said the idea was suggested based on efficiency in terms of networks and operations as Adira Finance was a large business, while Adira Quantum was smaller with total assets amounting Rp 2 trillion (US$154.3 million).

According to its financial report, Adira Finance had Rp 29.93 trillion worth of assets and Rp 34.1 trillion in financing by the end of 2014.

Hafid said Adira Finance had envisioned offering financing for electronic appliances and gadgets to its existing customers, specifically those who took out motorcycle loans.

'€œWe plan to offer the financing to our existing customers who have good-performing motorcycle loans. We acknowledge that financing for electronic appliances tends to have higher non-performing loans [NPL], but it also has higher interest rates,'€ he said.

Hafid further said that the company was also considering financing multi-purpose loans.

In November last year, the Financial Services Authority (OJK) issued Regulation No. 29/2014 on business operations for multi-financing companies, which allowed multi-financing firms to extend their business scopes to provide greater financing access. Starting in 2015, multi-financing firms will be able to provide financing to the productive segment, including infrastructure, and venture into other financing forms with approval from the OJK. Moreover, multi-financing firms are also allowed to offer insurance and mutual funds to their customers at their branch offices or outlets.

Previously, Adira Finance finance director I Dewa Made Susila said the company was eager to expand as it had recorded a total of 10 million customers since it began operations 25 years ago.