OJK Supports Finance Minister's Plan to Transform PNM into SME Bank if Positive Impact Ensues
Jakarta (ANTARA) - The Financial Services Authority (OJK) supports Finance Minister Purbaya Yudhi Sadewa’s plan to transform PT Permodalan Nasional Madani (PNM) into an SME bank, as long as the step has a positive impact on society, particularly for SME actors.
For information, PNM is a subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk (BRI), which is now a member of Danantara Indonesia.
“The gist is that we support it. If it’s felt that it can be more directly beneficial for society, we support it,” said OJK Commissioner Chairman Friderica Widyasari Dewi in response to reporters’ questions after the Indonesia Outlook event in Jakarta on Tuesday.
Friderica, or familiarly known as Kiki, also emphasised that OJK’s role remains in regulation and supervision of financial service institutions, including PNM, which has been under its oversight.
This supervision covers prudential aspects to ensure compliance with applicable provisions, so that the institution’s operations remain healthy and maintained.
In addition, OJK also supervises market conduct aspects, given that PNM deals directly with the public, including consumer protection.
“OJK supports and provides supervision so that financial service institutions, including PNM in this case, can operate in accordance with existing regulations and so on,” said Kiki.
Previously reported, Finance Minister Purbaya Yudhi Sadewa stated that his side is currently proposing to the Nusantara Future Power Investment Management Agency (BPI Danantara Indonesia) to take over the management of PT Permodalan Nasional Madani (PNM).
“I am proposing to Danantara that PNM be given to us (Ministry of Finance). PNM Madani to us, then we will make PNM a distributor of KUR (People’s Business Credit),” said Purbaya after attending the Working Meeting of Commission XI of the Indonesian House of Representatives in Jakarta on Monday (6/4).
Purbaya plans to make PNM a subsidiary of one of the Ministry of Finance’s Special Mission Vehicles (SMVs), such as PT Sarana Multi Infrastruktur (SMI) or the Government Investment Centre (PIP).
The PNM acquisition plan is proposed as one solution to smooth the distribution of KUR.
According to Purbaya, there are many reports from SME actors who have difficulty obtaining the cheap credit service.
In addition, he also highlighted the need for quite high costs in KUR distribution through banking.
“If KUR (distributed) through banks, we pay interest up to 18 percent. The money is lost (used to pay interest), every year around Rp40 trillion,” said Purbaya.
If KUR is distributed through PNM as a subsidiary of one of the Ministry of Finance’s SMVs, the Rp40 trillion funds can be used as capital to transform the SOE into an SME bank.
Purbaya hopes to transform PNM into a large bank with Rp200 trillion in capital within five years.