INDONESIA - BANKING - Sampoerna family moves into banking (Islamic micro finance by July 2012)

www.thejakartapost.com - Open for business: President director of Bank Sahabat Sampoerna Indra W. Supriadi (from left), Michael Sampoerna, the owner of Sampoerna Strategic Group and Bank Indonesia’s director Mulya Siregar during the launch of Bank Sahabat Sampoerna in Jakarta on Wednesday evening. JP/Wendra AjisyatamaWidely diversified business group Sampoerna launched PT Bank Sahabat Sampoerna on Wednesday, aiming for the largely untapped but lucrative small and micro-businesses.

Although the sector has already seen the presence of various big banks, Bank Sahabat Sampoerna president director Indra W. Supriadi said the market was still large enough for a new player.  (source)


“There are as many as 20 million micro-enterprises that still have no access to loans,” Indra told a press conference prior to the launch reception at the Sampoerna Tower, which will headquarter the new bank.

Giving micro-businesses greater access to credit could go a long way in helping some 40 million poor people, he said.

The Sampoerna Strategic Group’s businesses are currently based in the agri-business and telecommunications sectors. The company sold its massive cigarette interests, its original core business, in 2005 to Philip Morris International and has since diversified.

Putra Sampoerna, head of the family that owns the business group, has previously been listed on Forbe’s list of the world’s richest people.

Bank Sahabat Sampoerna is the name given to Bank Dipo Internasional, which Sampoerna acquired in May 2011. The bank will complement PT Sampoerna Investama’s micro-finance program called Sahabat.

“Although our bank is new, I am sure that it will be a bank to be reckoned with in the next two to three years,” Indra said, adding: “Our interest rate is competitive compared to more established banks in micro sectors, such as Danamon and BTPN.”

Sahabat Sampoerna’s assets rose 35 percent in 2011 to Rp 1.1 trillion (US$118.8 million) at December 31 and third party funds soared 31 percent to Rp 811.4 billion. In spite of the growth, profit before tax plunged to Rp 2.3 billion from Rp 22.3 billion due to the consolidation of its bad credit.

The bank’s capital adequacy ratio (CAR) of 36.5 percent at the end of 2011 far exceeded the industry average of 16.05 percent, thanks to a Rp 100 billion injection from Sampoerna Strategic Group following the acquisition. The bank reported a loan-to-deposit ratio of 79.3 percent in 2011.

In spite of the pronouncement to cater to small and micro-businesses, up to 80 percent of the bank’s debtors are currently medium-sized enterprises.

One of the bank’s directors, Agresius Kadiaman, said that this composition would unlikely change by much this year because Sahabat Sampoerna needs to increase its assets first.

Agresius said that the bank is targeting Rp 1 trillion in loans in 2012 from Rp 643.4 billion last year and hopes to see its assets grow to Rp 1.2 trillion.

This is not the first time that Sampoerna has ventured into banking. In 1989, it established PT Bank Sampoerna International, but mismanagement led to soaring bad credit. It was eventually bought out by Bank Danamon in 1992.

Indra said Sahabat Sampoerna also plans to expand their services into shariah banking in July.

“We see shariah banking as having the same philosophy as micro-lending, such as a focus on partnership, justice and transparency,” Indra said. (han)

Source : http://www.thejakartapost.com/news/2012/05/10/sampoerna-family-moves-banking.html  - May 10, 2012