Full House
    Category: Companies & People By : Ardian Wibisono Read : 1217 Date : Monday, November 04, 2013 - 08:30:51

    Roy Rubianto for Forbes Indonesia

    PT Bank Tabungan Negara (BTN) is already the dominant player in the country's mortgage sector. With over Rp 91 trillion in loans and 85% allocated to housing, BTN controls over 25% of the country's mortgage market. With a huge housing backlog—the Ministry of Public Housing said there are more than 13.6 million houses to be built—and almost 80% of buyers using bank financing to buy houses, BTN has a promising outlook.

    However, the lender's new president director, Maryono, wants to push it further. “We want to be number seven in terms of assets in the next four years and it would be good to reach 30% market share,” he says. BTN is currently the ninth largest lender between Bank Danamon and Bank Internasional Indonesia. Its average mortgage is about Rp 150 million. 

    Maryono became president director last December replacing Iqbal Latanro. He is a senior banker with 30 years of experience, and his name became prominent when he was appointed to lead the ailing Bank Century—now called Bank Mutiara—after the government bailed out the bank for Rp 6.7 trillion in 2008. He managed to restore trust by meeting the bank's biggest customers, asking them to keep their funds in the bank. When Maryono left in December 2012, Bank Mutiara had Rp 1.3 trillion of equity from a negative position in November 2008 when he started. Before joining Bank Mutiara, Maryono also played a significant role in restoring Bank Mandiri's network in Aceh after it was struck by the tsunami in 2004.

    With strong demand for mortgages, competition is fierce. Other banks have entered the business and are grabbing market share, such as Bank Central Asia with a 20% share and which offers relatively cheap lending and up to five years of fixed rates. “We're going to create some new growth engines,” Maryono says about his strategy.

    First, BTN will optimize its state-owned enterprise (SOE) network. Maryono says the bank is cooperating with state firms to offer their employees mortgages. This market has potential because state firm employees tend to have secure incomes. This campaign started with fertilizer producer PT Pupuk Indonesia.

    It will also provide funding for SOEs to optimize their property assets. “Some SOEs have underutilized property assets that we could, for example, provide financing so it can be turned into a hotel or restaurant,” says Maryono. Next, Maryono is expanding its business to the middle to upper segments. It already raised its loan limit to Rp 500 million for each mortgage and hopes to increase its average housing loan to double from what it is today.

    Growth plans in loans are balanced with funding. BTN plans to open 200 new branches and work with PT Pos Indonesia to allow its nearly 3,000 offices to serve as deposit outlets. The bank is also known to be the first in the country that securitizes its mortgages, and has so far securitized Rp 1 trillion.