The Jakarta Post
Jerry Ng has officially stepped down from his role as president director of Bank Tabungan Pensiunan Nasional (BTPN), after making significant improvements to the lender’s overall business and serving as the driving force behind a merger between BTPN and PT Bank Sumitomo Mitsui Indonesia (SMBCI).
Jerry, who was born in Kalimantan in 1965, brought significant changes to BTPN’s business. He expanded the bank’s focus from merely focusing on pension funds to tapping into micro, small, medium enterprises (MSMEs) and mass-market segments.
From 2007 to 2018, BTPN’s asset grew from Rp 10.6 trillion (US$759.21 million) to Rp 101.9 trillion while loan disbursement rose to Rp 68.1 trillion in December 2018 from Rp 7.85 trillion in 2007. The bank’s third-party funds (DPK) also increased to Rp 80.5 trillion from Rp 8.08 trillion.
Amid an era of digital disruption, BTPN has continued to innovate by adapting to customers’ needs. So far, the lender has created two digital banking platforms, namely BTPN Wow! and Jenius.
BTPN Wow! provides branchless banking aimed to reach the unbanked population, while Jenius is a digital banking platform that focuses on targeting the consuming class.
Through huge investments in digital banking services, BTPN claimed it had been able to cut operational costs to Rp 3.48 trillion in the January to December 2018 period, down 12 percent from Rp 3.93 trillion in the same months the previous year.
The decline led to a higher net operating income of Rp 5.2 trillion, although its operating income only grew 2 percent to Rp 10.2 trillion.
Meanwhile, the bank’s capital adequacy ratio stood at 25 percent, non-performing loans ratio at 1.24 percent and loan to deposit ratio at 96 percent.
Partly due to a decreasing operational income, BTPN was able to post Rp 1.97 trillion in net profit in 2016, up by 61 percent from Rp 1.22 trillion in the same period last year of
“Since the beginning of this year, we have focused on our consolidation process in order to complete the merger with SMBCI. We are grateful we are able to accomplish all of this while posting a positive performance,” Jerry said.
After Jerry stepped down from his position, Ongki Wanadjati Dana was named the new president director for BTPN. Ongki will lead a new entity following the merger with SMBCI, which will bring together almost 20,000 employees and a total of 796 branches.
On an official statement dated Jan. 30, the Sumitomo Mitsui Banking Corporation (SMBC) announced that the merger between BTPN and SMBCI would be effective on Friday.
The merger would allow SMBC Group to focus on capturing the growth of key emerging markets, including Indonesia, in the medium and long term.
“By integrating the franchises of BTPN [in which SMBC has invested in since 2013] and SMBCI, we will operate a full-fledged commercial banking business in Indonesia that serves both the wholesale and retail segments,” according to the statement.
BTPN will be the surviving company after the merger and SMBCI will automatically cease to exist by operation of law and without any liquidation.
The legal name of BTPN will be changed from the current PT Bank Tabungan Pensiunan Nasional to become PT Bank BTPN Tbk starting on Friday. SMBC’s logo will be added to the new logo of the merged bank.