The lender’s business director, Andreas Wiryanto, said the bank planned to achieve double-digit growth in its lending to the MSMEs so that the bank could gradually fulfill the requirement to allocate at least 20 percent of loans to MSMEs.

The trade sector currently dominates its loan disbursement, as those provided to MSMEs remain below 5 percent, he said following the bank’s annual shareholders meeting.

“We will use our bank networks across Indonesia and use the references in their retail funding to boost the sector […] We will then ask them to refer us to their trusted suppliers, helping them grow at the same time” said Andreas, who said Mayapada had 216 branches across Indonesia.

However, Andreas has yet to assert an exact time limit to reach their 20 percent long-term objective. Coupled with the economic trade war between China and the United States, the anticipation of election results has pushed creditors to set a wait-and-see stance, making it difficult for him to guarantee a precise time frame.

Still, he said the bank would continue to target double-digit growth by the end of the year as loan growth continued to rise. Last year, the lender enjoyed 16.39 percent growth in its total lending to Rp 65.66 trillion (US$4.53 billion) year-on-year (yoy).

Its initiative is in line with the national increase of MSME loans. According to Bank Indonesia data, total loan distributed to MSMEs had risen 9.9 percent yoy to Rp 970 trillion. Micro industries enjoyed the highest increase with 14 percent growth yoy to Rp 236.9 trillion.

Meanwhile, during the meeting, shareholders agreed to use 2.5 percent or Rp 11 billion from net profit of Rp 437.41 billion for the bank’s reserve. The remaining will be used to strengthen the bank’s capital structure, according to a press release.

As such, Mayapada finance director Hariati Tupang said shareholders also agreed to the lender’s proposal in the meeting to temporarily suspend their dividends.

Moreover, the shareholders approved the appointment of Freddy Soejandy as a new director to replace Hariati. The other commissioners and directors will remain in place as Hariyono Tjahjarijadi still serves as the bank’s president director.

In the long run, Bank Mayapada will maintain its growth by boosting fee-based income from its e-channel and bancassurance products, its commissioners said.

Mayapada compliance director Rudi Mulyono explained that the current figures were still “insignificant” for fee-based income but expressed hope that it would grow exponentially by 2020.

“We are pushing products like mobile and internet banking to boost fee-based income, among other sources of revenue […] Of course, we will continue to maintain our net margin,” Rudy said.

Its net profit rose 28.07 percent yoy in 2018 compared to a decrease of 19.64 yoy in the previous year. Among other reasons, the increase of 8.28 percent yoy in net interest income had contributed to the company’s net profit increase.

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