Bankaltimtara Plans to Issue Certificates of Deposit of Rp1 Trillion

The East Kalimantan and North Regional Development Bank plans to issue a negotiable certificate of deposit (NCD) worth Rp1 trillion this year to increase the company's business capital.

Company Secretary of PT East Kalimantan and North Kalimantan Regional Development Bank (Bank Kaltimtara) Abdul Haris Sahilin said that the corporate action was planned to be carried out in the I / 2018 quarter and III / 2018 quarter. "Each [publishing] is planned to be IDR 500 billion," he told Bisnis on Wednesday (2/1/2019).

He said the Financial Services Authority had given the green light regarding this corporate action by giving permission on December 17, 2018. At present, his party is still awaiting approval from Bank Indonesia.

NCD are investment products similar to bonds, but all funds from their issuance can be utilized by banks to become capital. "We are assisted by three securities, namely Indo Premier Securities, Mandiri Sekuritas and BCA Sekuritas," he said.

Haris explained that Kaltimtara Bank received an additional capital deposit from three shareholders, namely the Kaltara Provincial Government, West Kutai Regency Government, and Balikpapan City Government. Meanwhile, each of them sequentially deposited capital worth IDR20 billion, IDR4.1 billion and IDR7.4 billion. This additional capital made Bank Kaltimtara become a regional bank with the third largest capital deposit in Indonesia.

"So among 27 BPD, our position is still the third largest after Bank DKI and Bank Jatim," he said.

Haris added that the additional capital will be used for network expansion and the construction of office buildings and credit. While in the coming year the company will also continue to include plans to increase capital which are currently still being processed.

"Even though we have not had an IPO [initial public offering] and 100% share of regional government capital, but [Bank Kaltimtara] remains committed to developing. "The plan is that this year there will be additional capital participation from several regions, including the City Government of Bontang, worth Rp50 billion," he said.

Bank Kaltimtara once again got the task to channel people's business loans (KUR) as of May 2018. During the period May - December 2018, the company recorded KUR worth Rp184.31 billion.

"Our target for this year is Rp175 billion until December 2018. From the record last September it reached Rp101.69 billion and was boosted in the last three months for KUR distribution in Kaltimtara until the end of this year reached Rp184.31 billion," said Kaltimtara Bank Managing Director Zainuddin Fanani.

The capital distribution loan with a 7% interest rate was welcomed by the community, especially the Samarinda and Balikpapan regions. In detail, KUR distribution for micro reached Rp. 18.59 billion, while for small loans reached 165.72 billion with total debtors reaching 2,109 customers.

"Our commitment to move the people's economy is quite high, as can be seen from the growth of lending in the last three months reaching 81.24%. With the geographical location of East Kalimantan and North Kalimantan, we are trying to reach services to the outermost areas of Kaltimtara, "said Zainuddin.

The various strategies also carried out by Kaltimtara include maintaining credit quality by playing an active role in depositing deposits of customers who are conducting trading center activities.

Likewise, regarding the search for debtors must also be extra hard. Because some have already been registered with the ministry as customers of other KUR channeling banks. As is known, Bank Kaltimtara may not distribute KUR to customers who have received KUR from other banks.

"To maintain the customer's trust system, we also make a gradual approach by participating in opening stalls in the market or cooperating with the market, to help make it easier for them to conduct financial transactions," he said. (*)