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rivate lender Bank Mayora will this year invest Rp 9 billion (US$695,279) for the opening of five main branch offices in Jakarta, one in Surabaya, East Java, and another in Bogor, West Java.

The plan to open the branch offices is expected to help the lender become a Tier II bank, or a bank with core capital of between Rp 1 trillion and Rp 5 trillion.

Bank Mayora president director Irfanto Oeij said recently the lender would build a hundred new offices around Indonesia in the next five years to support its operations.

Currently, Bank Mayora still belongs to the Tier I group with core capital of up to Rp 1 trillion. Being in Tier I, the bank must channel at least 55 percent of its total loans to the productive sector.

According to Irfanto, by moving up to Tier II, Bank Mayora could provide more banking products and especially increase its loans disbursement.

Based on Bank Indonesia regulation no. 14/26/PBI/2012, Tier II banks must channel at least 60 percent of their total loans to productive sector.

In 2014, Bank Mayora disbursed Rp 2.9 trillion of loans especially to small and medium enterprises (UMKM).