The merged bank has a new board of directors and new commissioners with Ongky Wanadjati Dana being appointed as the bank’s president director, and former trade minister Mari Elka Pangestu as the chief commissioner.

Ongky said the merged bank would expand its business into corporate banking services, not only to small and medium sized companies, but also to large corporations. BTPN previously focused on disbursing loans to pensioners and micro entrepreneurs, while SMBCI’s main business was to provide corporate banking services.

“The two banks previously had different segments and business models. After the merger, Bank BTPN will operate as a universal bank with diversified businesses serving broader segments, from the mass market to corporations,” said Ongki, who was previously the vice president of BTPN.

Before the merger, both BTPN and SMBCI were owned by Japan’s second-biggest bank Sumitomo Mitsui Banking Corporation (SMBC). After the merger, SMBC owns 97.34 percent of Bank BTPN shares, with the rest held by the public.

Ongky ensured the new bank would maintain BTPN’s current businesses, which cover loans for pensioners and small and medium enterprises (SMEs), funding, as well as two flagship digital banking products, Jenius and BTPN Wow!.

“After the merger, the business composition will be 50 percent in the corporate segment and 50 percent in the micro enterprises and pension segment. Out of the 50 percent, 15 percent of the total assets will be directed for SMEs,” he said. SMBC Group senior managing executive officer Masahiko Oshima said the country’s growing middle class offered a new potential market for the bank.

The group, which previously focused on serving Japanese large corporations in the country through SMBCI, was looking to expand its market by targeting Indonesian large corporations, retail, as well as small and medium enterprises following the merger, Oshima said.

He mentioned the group’s intention to continue its contribution in the country’s economy by supporting financial inclusion after it managed to maintain its place in the Indonesian market following the 1998 financial crisis.

“We are keen to contribute to infrastructure finance and to support both domestic and cross-border supply chain business,” Oshima said.

Bank BTPN’s capital jumped to Rp 27.81 trillion (US$1.99 billion) following the merger. With the capital, by 2021 the bank is expected to enter the BUKU IV category, which comprises banks with core capital above Rp 30 trillion, Ongky said.

With the accumulated capital and cross selling, Ongky hoped the bank would be able to fulfil the needs of its corporate clients, even those out of Jakarta.

Following the merge, total assets reached Rp 189.92 trillion as of December 2018, meaning the bank became one of the country’s 10 biggest banks by assets.

In the board of directors, Ongky is assisted by Kazuhiya Miyagawa, previously SMBCI’s president director. Other members of the board of directors include Dini Herdini, Yasuhiro Daikoku, Henoch Munandar, Adrianus Dani Prabawa, Hiromichi Kubo and Merisa Darwis.

In addition to Mari Pangestu, the shareholders have also appointed three members of the board of commissioners including Chow Yin Hoong, Takeshi Kimoto and Ninik Herlani Masli Ridhwan.

“The new board members come from the BTPN and SMBCI boards. Ten years is a long time and now is the time for regeneration,” Ongky said. (ars)

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