Global Business Guide Indonesia

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Bima Multi Finance | Ms Wina Ratnawati
Wina Ratnawati

Neighbouring markets within the ASEAN are similar to Indonesia in the sense that motorcycles are a popular method of transport. Because of this, it is our long-term vision to open branches in countries such as Vietnam, Myanmar, Brunei and Thailand

Ms Wina Ratnawati, President Director

Bima Multi Finance has a long history in Indonesia as a provider of multi finance products encompassing consumer financing, leasing and factoring. What more can you tell us about your company’s background and its main strategies going forward?

This company was founded in 1990 and was initially named PT Lautan Berlian Pacific Finance. Following a take-over carried out by the current shareholders and management in 2006, it was later renamed Bima Multi Finance. We are presently focused on providing consumer financing for second-hand cars and motorcycles, which has huge potential in the Indonesian market. With regards to automobiles, we divide our operations between passenger cars and commercial vehicles. Our strategy going forward is centred on diversification from conventional products via the introduction of shariah products.

The multi finance industry in Indonesia looks set to benefit from several positive trends such as growing purchasing power and an emerging middle class, but also must contend with new challenges such as the hike to minimum down-payments. Given this context, what is your outlook for the development of Indonesia’s multi finance industry over the medium and long-term?

For our company, the latest change to regulations that will lead to an increase in minimum down-payments is not something that we are overly concerned about, because most of our business is in second hand cars and motorbikes where down-payments already range between 25-40%. Our outlook for the future is therefore positive, especially when you take into consideration that our target market is comprised of the middle-lower income segment and there are thus huge opportunities to be taken advantage of related to second hand vehicles. The lack of transportation infrastructure in Indonesia means that cars and motorcycles are an essential part of daily life.

How does Bima Multi Finance differentiate itself from its competitors within Indonesia’s multi finance industry?

Our main selling point is our speed when delivering our services to customers, thereby boosting their ability to make purchases in retail credit. Our company is well-known for its skill in quickly approving consumer financing to those who qualify.

Bima Multi Finance has an extensive network in Indonesia spanning more than 200 branches across the country. Today, where do you see the most potential for your continued expansion in Indonesia?

Java continues to be the area of Indonesia with the most potential for our type of business, due to the sheer size of its population. Sumatra also presents interesting opportunities, due to its ongoing development into a commercial hub as well. With that said, because we already have an established presence on these islands, we see the next stage of our expansion taking place in Indonesia’s outer-lying regions such as Kalimantan and Sulawesi. We plan to open 5 to 10 branches per year.

What opportunities and challenges does Bima Multi Finance see on a regional level, given the upcoming realisation of the ASEAN One Market?

Neighbouring markets within the ASEAN are similar to Indonesia in the sense that motorcycles are a popular method of transport.

Because of this, it is our long-term vision to open branches in countries such as Vietnam, Myanmar, Brunei and Thailand over the course of the next twenty years. In the meantime, we are fully focused on the local market to provide us with the strong foundation to later pursue expansion.

A lot is expected of the new government to improve upon the business climate in Indonesia. In your view, what should the new administration prioritize in spurring the development of Indonesia’s multi finance industry?

Indonesia’s new president, Joko Widodo, is very much focused on the middle-lower income segment through proposed efforts to improve upon education and healthcare. Following through on these plans will contribute to the development of niche multi finance products. As an example, in keeping with this vision for our country, our company has sought to provide financing to individuals who need support to be able to get a good quality education.

Bima Multi Finance also offers working capital to entrepreneurs. What more can you tell us about industries of most interest to you and future plans for expansion?

We are committed to supporting the development of young businesses in Indonesia, and are most interested in working with fledgling companies in lesser-served parts of the country such as towns and villages beyond the more commercially developed cities. In this regard, we want to take a leading role in helping newcomers thrive and grow into successful businesses that drive Indonesia’s economic development.

How is your company positioned towards working with international investors and foreign companies looking for a local partner in Indonesia?

It is our plan to carry out an initial public offering in 2017 and list on the Indonesian Stock Exchange. We expect that this step in our evolution will help us further position ourselves as a trusted and reputable company. In the immediate future, having recently invested in technology for a new computerized system, we are most interested in capital cooperation when it comes to synergizing with prospective foreign partners. New investors would speed up our development in terms of expanding our existing operations as well as entering new markets. Given the rise of opportunities available to multi finance firms with regards to infrastructure and maritime projects in Indonesia, it is our priority to identify a continuous source of funds and make the most of these opportunities.

As a final message, what would you like Global Business Guide’s readers to remember about Indonesia?

Indonesia as an emerging market has huge potential for growth and should be on investors’ radars as a country of 250 million people, with 60% of productive age.

Global Business Guide Indonesia - 2015

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