REPUBLIKA.CO.ID, DEMAK -- The state-owned lender Bank Mandiri said it had disbursed Rp5.8 trillion in people's credit facility called KUR until April 2016.
"We are optimistic we could meet the target of disbursing Rp13 trillion in KUR this year as we already reached 44.61 percent of the target by April, Tardi, the Micro and Business Banking Director of the country's largest bank, said here on Friday.
The target set for this year is more than quadrupling the target of only Rp3.2 trillion in 2015.
Realization in 2015 exceeded the target with disbursement reaching Rp3.5 trillion, Tardi said.
The bank has established more small branch offices in the regions to facilitate disbursement of KURs for micro, small and medium enterprises.
The small branch office would bring the bank closer to small depositors.
In 2016, Bank Mandiri hopes to increase the number of its small branch offices to around 400 units all over the country.
Auxiliary branches will make up 300 units of the small branches and micro branches will account for 100 units.
By April 2016, at least 26 new units have been in operation and by September the remaining 374 units are expected to be ready for operation.
With the additional branch offices, the bank hopes to expand its market among the small and medium enterprises, which have proved more resistant to economic crisis.
The small and medium enterprises provide a potential market for banking business in the country, banking observers have said.
Currently, Bank Mandiri has 3,021 outlets including 600 units of kiosk all over the country.
Bank Mandiri also has 17,000 agents for financial services without office for inclusive finance in various areas in the country.
They include 8,759 individual agents and the rest institutional agents.
In 2015, the bank reported a better-than-expected net profit but its bad loans crept up partly due to its exposure to the commodities sector.
The bank posted a net profit of Rp20.3 trillion in 2015, or about 2 percent higher than in 2014.
Its outstanding credits surged 12.4 percent to Rp595.5 trillion.
Growth in net profit was the smallest in a decade, as the bank stepped up provisions. But the lender's 2015 profit was still higher than the average forecast of Rp19.59 trillion.
Its gross non-performing loans (NPL) rose to 2.60 percent of total loans by the end of 2015, from 2.15 percent in the previous year.
Gross NPL is predicted to be around 2.5 percent to 3 percent in 2016, Mandiri Chief Financial Officer Kartika Wirjoatmodjo has said.
The bank was avoiding exposure to the oil and gas and mining sectors as the slowdown in China's economy has reduced the demand for commodities, said Ahmad Siddik Badruddin, director of risk management and compliance.
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