Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Investment  >> BNI Syariah to invest Rp 5 trillion in capex
NEW UPDATES Asean Affairs    14 January 2015  

BNI Syariah to invest Rp 5 trillion in capex

Bank BNI Syariah, a subsidiary of state-owned lender PT Bank Negara Indonesia (BNI), has prepared Rp 5 trillion (US$395.4 million) for capital expenditure (capex) to support its business expansion this year.

Bank BNI Syariah president director Dinno Indiano said part of the capex would be used for establishing 15 new outlets in the micro-financing segment. The firm expects lending in the segment to grow by 25 percent this year, higher than last year’s 20 percent.

Dinno said the bank would expand its micro-business network as it was expecting to increase the segment’s contribution from the current 8 percent of the total portfolio to 10 percent by the end of this year.

“We will invest around Rp 1 billion in each outlet, some of which will be established in the eastern part of Indonesia,” Dinno said.

Dinno said the lender would acquire the buildings for the outlets rather than rent office space in order to improve cost efficiency.

The rising price of property in the country had prompted many banks, including BNI Syariah, to purchase their own offices as the most efficient way to manage operating costs, he said.

Dinno said the bank, which currently has 85 micro outlets, decided to add new ones as a result of its internal policy of limiting maximum financing to Rp 15 billion per year for each outlet, as many of them had almost reached full capacity in the past two years.

According to Dinno, the policy aims to create strong internal control and business fundamentals as well as maintaining the quality of its human resources.

“From that point of view, we expect that our non-performing financing [NPF] will be maintained in a stable condition. Currently, we post 2.5 percent in micro-segment NPF, without a haircut,” he said.

Overall, Dinno said the bank aimed for 25 percent growth in total financing as well as third-party funding this year, down from last year’s level amid the economic slowdown,

He expected that the 25 percent financing and funding growth would be sufficient to generate a total income of Rp 160 billion by the end of the year, an increase from Rp 130 billion at the end of last year.

Dinno said the bank had booked around Rp 15 trillion in financing as of December last year, a 30 percent rise from the previous year. The bank had also posted Rp 19.5 trillion in total assets last year, up by 30 percent year-on-year, he said.

Dinno said that around 60 percent of the bank’s financing would remain in the consumer sector, including mortgages as well as a sharia-credit card, named the Hasanah Card.

The Hasanah Card — currently the country’s only credit card based on sharia principles — has been issued to around 220,000 cardholders, although it is struggling to survive due to Bank Indonesia’s strict regulation of credit cards.

In 2012, the central bank issued a regulation that prohibited people with monthly incomes of between Rp 3 million and Rp 10 million from having more than two credit cards from the same issuer, in an effort to reduce the rising number of non-performing loans.

“We estimate that there are 25,000 of our card [accounts] that should be closed due to the regulation. The reduction will not affect our margins significantly, but we are trying our best to make this card survive,” he concluded. - See more at:

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           January 14, 2015 Subsribe Now !
• Airport passenger movements up 4.7 pct in 2014, says MAHB Subcribe: Asean Affairs Global Magazine
• BNI Syariah to invest Rp 5 trillion in capex
• Trade association aims to get sites that promote online piracy blocked
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• VN aims to increase rice exports
• More trade opportunities to be offered at home, abroad
Asean Analysis                    January 14, 2015

• Asean Analysis January 14, 2015
Cambodia: 30 Years of Hun Sen Violence, Repression
Advertise Your Brand

Asean Stock Watch    January  13,  2015
• Asean Stock Watch-January 13 , 2015
The Biweekly Update
• The Biweekly Update  January 9, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand