Creating tailored products for small and medium enterprises has been a determining aspect of the bank’s strategy to stay competitive among Indonesia’s more than 120 banks. Starting in 2010, the SME banking division was separated from consumer banking and called Small Business Banking Unit (SBB) and Medium Business Banking Unit (MBB) in order to concentrate on what the country’s businesses need in terms of financing their growth strategies. The SBB unit offers a loan limit of up to 2 billion RP alongside business guidance and access to franchise financing through rural, regional and cooperative banks. The MBB caters to businesses requiring loans from 2 billion RP and upwards with greater focus on providing commercial and corporate lending facilities to aid in the streamlining of different business units through strategic partnerships.

For Rural Trade clients, the bank offers a Working Capital Loan which is available as a revolving or a non-revolving credit facility. Within the product set, clients can tailor their loan payment terms according to their working capital needs.

Increasing loan facilities to the SME sector mainly in the form of working capital loans has boosted the bank’s earnings performance and broadened its investment portfolio. Through careful risk management procedures, lending performance has continued to rise and the bank is well positioned to take advantage of the expansive opportunities in SME loans in Indonesia. For 2013 the bank is targeting a 16.3% increase in loan disbursements to 12.97 trillion RP and will place particular focus on the highly promising areas of trading and light industries segment for further SME lending.