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ultifinance company Mandiri Utama Finance (MUF), a subsidiary of state lender Bank Mandiri, aims to become a major financing player within the next five years amid the automotive sales slump.

Established early last year, the company opened its new head office in Jakarta on Monday, expecting to be among the top five multifinance companies by 2021.

MUF president director Stanley Setia Atmadja said the company'€™s market share was expected to reach 7 percent and 3 percent in new motorcycle and car markets, respectively.

Stanley said the company was convinced that it could achieve the target as its expectations had heightened amid improvements in the country'€™s economy and people'€™s income.

To grab the market share, Stanley said the company aimed to disburse financing worth at least Rp 3.2 trillion (US$240 million) this year.

Of the total, he said Rp 1 trillion and Rp 700 billion would be allocated for secondhand and new motorcycle financing, respectively.

'€œMeanwhile, the remaining Rp 800 billion and Rp 700 billion will be disbursed for the financing of secondhand and new cars,'€ he said in a statement on Monday, adding that the company'€™s financing was expected to reach between Rp 30 trillion and Rp 40 trillion in the next five years.

For that purpose, he said the company would focus on expanding its network by opening at least 35 branches during the first year and would reach more than 200 in the next five years.

Aside from that, Stanley said the company would improve its IT system and capacity and quality of its sales network, supported by strong risk management and standardized services.

He said MUF would also seek synergy with its parent company, which owned a large business scale and customer base nationwide.

Bank Mandiri president director Budi Gunadi Sadikin said the lender would fully support the multifinance company as part of its efforts to develop and integrate all businesses owned by its subsidiaries under the Mandiri Group brand.

Budi said part of the efforts would be building synergy between MUF and Mandiri Tunas Finance, another subsidiary that also operates a multifinance business and joint venture with Tunas Group.

Mandiri Utama Finance, which obtained its approval from the Financial Services Authority (OJK) in July last year, is a joint venture formed by Mandiri and automotive distribution companies ASCO Automotive and Tunas Group.

The state bank holds a majority stake of 51 percent, while ASCO and Tunas hold 37 percent and 12 percent, respectively.

MUF became the latest addition to Mandiri'€™s list of subsidiaries following its establishment in January last year.

As of September last year, Mandiri has 10 subsidiaries, including sharia lender Bank Syariah Mandiri, securities firm Mandiri Sekuritas and life insurer AXA Mandiri Financial Services.

Mandiri finance and strategy director Kartika '€œTiko'€ Wirjoatmodjo said the bank planned that it would increase revenue contribution from its subsidiaries to 20 percent to its total profit in the long run, from 9.8 percent as of September last year.