Bank Mutiara to get more capital injection

JAKARTA. Japanese finance company J Trust Co. Ltd., the major shareholder of PT Bank Mutiara, is injecting the lender with more capital, up to Rp 1.3 trillion within the next four years.

Earlier, the Japanese company had already given the bank Rp 300 billion and the remaining Rp 1 trillion will be provided in phases.

In the first phase Rp 350 billion will be disbursed in the first quarter of 2015. The lender will then receive two payments of Rp 200 billion each in 2016 and in 2017. The last disbursement of Rp 250 billion will be made in 2018.

“J Trust wants to strengthen the lender by injecting capital,” Bank Mutiara president director Ahmad Fajar said as quoted by Antara on Tuesday.

The capital will be used to prepare supporting infrastructure for the expansion of the lender’s business in consumer finance, as well as in small and medium scale financing.

Ahmad said the lender would not be too expansive in disbursing credit to consumers, but rather would be careful.

“Japan is conservative, so we don’t want to be too expansive [in business],” he added.

He said Bank Mutiara would build partnerships with property developers to engage in credit syndication, particularly for mortgages.