The significant growth in construction credit has led national banks to actively target this sector, including Bank Jabar Banten (BJB). BJB Pekanbaru Branch is focusing on construction credit in several mining districts in Riau Province.
"The growth of construction credit has been quite significant, increasing by around 400% over the past year, with most of the growth occurring outside Pekanbaru," said BJB Branch Manager, Muhammad Ruli Fahmi, in Pekanbaru, Tuesday (18/9).
According to Ruli, marketing construction credit products has become a priority, targeting mining contractors and large-scale mining companies.
Aside from construction credit, one of the key services BJB Pekanbaru offers is bank guarantees for mining contractors.
"The number of bank guarantee clients continues to increase, primarily in districts such as Bengkalis, Tembilahan, Duri, Bangkinang, Rengat, and other areas," Ruli stated.
Although BJB only has one branch in Pekanbaru, the bank has already disbursed Rp30 billion in construction credit within 18 months of operation in Riau.
Additionally, BJB’s total assets have reached Rp60 billion, reflecting 400% growth since the bank first entered Pekanbaru.
"Around 90% of our portfolio is allocated to construction credit, while the rest is distributed to corporate and regional government financing. Recently, BJB Pekanbaru signed an agreement to provide loans for civil servants (PNS) at Pekanbaru's Regional Revenue Office (Dispenda).
We have already established similar collaborations with several other districts," Ruli added.
BJB Pekanbaru has also benefited from its strong relationship with the Mitra Sunda Riau (Misuri) community, which has significantly contributed to the bank’s market expansion in Riau.
"Third-Party Fund (DPK) collection has shown positive growth, reaching Rp50 billion as of September 2012.
Our clients are not only from West Java (Jabar) but also include plantation farmers, business owners, and other entrepreneurs in the region," he explained.
As the market continues to grow, BJB Pekanbaru has submitted a request to open additional branch offices in Bangkinang, Tembilahan, and Dumai to improve service accessibility.
"We hope to establish these new branches by 2013," Ruli concluded.