BPS committed to middle-class housing<\/p>\n
JAKARTA (JP): The publicly-listed Bank Papan Sejahtera (BPS)
\nwill continue to maintain its core business of financing housing
\ndevelopments for the middle class, the bank's new president, Al
\nNjoo, said yesterday.<\/p>\n
\"There's no significant change. We are still committed to
\nproviding housing credits. But we'll expand our sources of cheap
\nfunds,\" Al Njoo said after being elected the bank's president at
\na shareholder's meeting here.<\/p>\n
Al Njoo said that major efforts are being undertaken by both
\nthe government and the private sector, including Bank Papan, to
\ndevelop a secondary mortgage market where mortgages are converted
\ninto long-term securities.<\/p>\n
\"Mortgage securities are rated, marketable, and carry special
\nprotection against losses. As a result, such securities can be
\nsold to investors at interest rates much lower than that on the
\nmarket,\" he said, adding that it will benefit consumers through
\nthe lowering of the cost of borrowing.<\/p>\n
Asked when it will be realized, he said \"as soon as possible.\"<\/p>\n
He cited Malaysia as an example. \"That country, with only a
\ntenth of Indonesia' population, already has a secondary mortgage
\ninstitution, Cagamas,\" he said.<\/p>\n
The institution, he said, has successfully tapped funds from
\nthe long-term fixed rate bond market.<\/p>\n
The long term funding base has supported the development of a
\nfixed-rate mortgage, a facility not yet available in Indonesia,
\nhe added.<\/p>\n
According to Al Njoo, Bank Papan will also intensify its
\nefforts of tapping funds from the public through deposits and
\ncredit cards.<\/p>\n
\"We aim to double the funds generated from the public this
\nyear,\" he noted.<\/p>\n
Al Njoo pointed out that Bank Papan, which last year posted a
\n44 percent drop in net profits to Rp 9.4 billion (US$4.02
\nmillion) due to higher provisions for bad loans and narrowing
\ninterest margins, will slow the growth rate of its credits this
\nyear to 30 percent from 51 percent last year.<\/p>\n
\"This is due to the tight money policy imposed by Bank
\nIndonesia, the central bank,\" he said. But he expressed the hope
\nthat this year's profits will be higher.<\/p>\n
At yesterday's meeting, the shareholders approved the new
\nline-up of Bank Papan's board of directors, comprising president
\nAl Njoo, vice president Enny Angreni Hardjanto and directors
\nErica S. Fachry, M. Kemal Karyadana, Mohammad Afdal R.P. Pamilih
\nand Roekman Prawirasasra.<\/p>\n
There is no change in its board of commissioners, which is
\nchaired by Haryono.<\/p>\n
Bank Papan, which is listed on the Jakarta Stock Exchange, is
\n19.8 percent owned by PT Tunasmas Paduarta -- controlled by
\nbusinessman Hashim Djojohadikusumo -- 13.1 percent by Bank
\nIndonesia, 6.8 percent by Asuransi Jiwa Bersama Bumiputra 1912,
\n6.5 percent by PT REI Sewindu, 5.7 percent by PT Asuransi
\nJiwasraya and 34 percent by foreign and local shareholders
\nthrough the capital market.<\/p>\n
Hashim bought Bank Papan shares last year from Jopie Wijaya,
\nchairman of the Steady Safe Group, who had previously bought the
\nmajority of Bank Indonesia's shares through the Jakarta Stock
\nExchange. (13)<\/p>",
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