OCBC NISP, whose roots in Indonesia date back to 1941, has a proven ability to expand its business in the most volatile of times.
Nowhere is this more evident than in the small and medium-sized enterprise sector, particularly micro-SME clients. When Indonesia’s economy grows 5.3%, as it did in 2022, it is largely thanks to MSMEs, which contribute roughly 61% of the nation’s gross domestic product.
Hence OCBC NISP’s decision to prioritize this segment. If Indonesia is to be among the top seven economies by 2030 – president Joko Widodo’s ambition – it will be largely thanks to SMEs driving the creation of new jobs and wealth.
During Covid-19, OCBC NISP provided credit to MSMEs but has still maintained a non-performing loan ratio of 2.4%, which is less than half of what Jakarta’s regulators set as the limit.
The bank, led by chief executive Parwati Surjaudaja, has also judiciously lent to the next generation of young entrepreneurs who have the potential to build Indonesia’s next tech unicorn startup.
In 2022 alone, the bank’s total loan disbursements increased 13.9% year on year to Rp137 trillion ($9 billion). Total assets grew 1.2%, while third-party funds increased 4.7%.