Increase in the benchmark interest rate and protracted global economic slowdown had no significant impact on its business performance, the publicly listed state lender said.
"Amid rising benchmark interest rates and global economic turbulence, we remain optimistic to post credit expansion above the national average with our strong funding," a director of the bank Iman Nugroho Soeko said here on Monday.
Iman said in July, 2018, BTN recorded secondary reserve valued at Rp14.02 trillion, adding BTN also had long term supporting funds in the form of bonds and Negotiable Certificate of Deposit (NCD) with outstanding amount at Rp20.95 trillion by June, 2018.
He said the government and regulator also had helped stimulate the property sector with a series of policies that added to the confidence of the bank.
He went on to say the optimism to reach the target of the bank is strengthened with the opportunity of an increase in credit with the relaxation of Loan-to-Value (LTV) and Risk weighted assets (ATMR) and decrease in cost of funds and operational cost from the inflow of Housing Financing Liquidity Facility (FLPP) fund.
Bank Indonesia, for example, had begun LTV relaxation since August 1 , 2018, he said, adding the Financial Service Authority (OJK) also plans to relaxation of a number of regulations such as by revising the method of ATMR calculation, encouraging funding of House Ownership Credit (KPR) through securitization, expanding funding ceiling with collateral and increase coordination with other agencies.
In the second half of this year, BTN will reenter the list of banks of FLPP distributors which will help reduce the burden of both the operational cost and cost of fund, he said.
"With the various types of stimulus and the readiness of the bank to grab the various business opportunities, we are confident we would reach the business target set since early this year," he said.
He said the optimism is also strengthened by the backlog which is still high in Indonesia, adding KPR is still the main option for the Indonesian people to have house.
Data from the Central Bank showed that most or 75.21 percent of consumers use KPR facility to buy residential property, and 16.13 percent chose to buy houses with cash by phases and 8.68 percent with cash scheme.
"We , therefore, continue to carry on with various innovation and transformation initiatives to grab any business opportunities open. BTN also will continue to launch promotional campaigns to increase corporate credit expansion mainly KPR," Iman said.
BTN is the smallest state banks offering credits mainly for housing and small and medium enterprises.
Reporting by Zubi Mahrofi
Editing by A Saragih, Eliswan A