HSBC Indonesia plans to increase its loans to small- and medium-sized enterprises (SMEs) to as much as Rp 450 billion (some US$49m) this year.
Seeing prospects in the sector in line with its core business of trade banking, the London-based lender will also increase the portion of SME loans in its credit portfolio to 40 per cent within the next five years, from the current 20 per cent.
HSBC vice president for business banking Christophorus A. Kowik, said that the management was optimistic over the target as the bank had long been providing loans to SMEs.
“Our loans to SMEs as of February amounted to some Rp 300 billion, with almost no nonperforming loans (NPLs), showing that SMEs are more resilient to economic downturns,” he said.
“We hope to be able to increase this figure by 50 per cent to reach Rp 450 billion by the year's end.”
