Indonesia’s micro and small businesses make up an extensive customer base of some 120 million enterprises yet only 27% of such companies currently have access to financing facilities. Microfinance has proved to be highly lucrative in Indonesia and it is estimated that the number of micro and small enterprises taking microloans will double over the next three to five years. Outside of Indonesia’s main cities is where the largest untapped market lays presenting the need for greater presence through dedicated microfinance branches to take advantage of the high equity return rates that Indonesia’s microfinance industry has to offer.

Mutiara Bank has been quick to realise the potential of Indonesia’s microfinance segment and is targeting aggressive growth as part of its comprehensive strategy to increase the net interest income of the bank. Through the employment of the latest mobile technology for the collection of daily repayments and the implementation of expert risk management systems; Mutiara Bank has achieved a below industry average level of NPLs within its microfinance portfolio.

For 2013, the bank has set a lending target of 45 billion RP; to achieve this it is rapidly expanding its microfinance branch and kiosk network through the opening of 62 branches and 50 micro kiosks by 2015. Mutiara Bank is strategically focusing on key growth areas for its upcoming microfinance branches which will be located in Jakarta, Surabaya, Malang, Medan and Makassar. Such a far reaching branch network has also enabled the bank to provide customers with financial planning education to improve financial literacy and to assist them in growing their business further. Through this effective positioning throughout the archipelago, Mutiara Bank is targeting deposit growth of 9.6% and asset growth of 10.3% for 2013.