Buana Finance boosts SMEs amid global downturns
Since the aftermath of the global financial crisis, banks and financial institutions have begun recognising the key role played by small and medium enterprises (SMEs) in sustaining local economies. Home-grown Buana Finance attests to the resilience of SMEs amid downturns, and their part in the recovery.
The financial services company benefits from the solid reputation built by its parent, Sari Dasa Karsa (SDK), the founding shareholders of Bank Buana Indonesia. The bank served Indonesia's SMEs for more than 40 years, and this dedicated commitment was rewarded by faithful customers when it emerged unscathed from the Asian financial crisis in the late 1990s.
Antony Muljanto, director of operations, says Buana Finance's customer-focused approach has helped the firm maintain an edge in the competitive financing segment. "The key is to be able to respond quickly, while being able to understand the client's business and requirements," Muljanto says. "Buana Finance fills the gap between SMEs and the financing sector through established relationships with customers."
More than 70 per cent of Buana Finance's facility caters to financial leases, assisting SMEs to meet their working capital requirements. Half of the leasing business is invested in heavy equipment and machinery for the mining, plantation, forestry, transport and construction industries. The firm also finances cargo vessels, tugboats and barges, trucks and buses.
The SDK group owns roughly 68 per cent of Buana Finance, while public shareholders own the remaining 32 per cent. The company's reputation and independent status have attracted support from major multinational banks including Standard Chartered, Industrial and Commercial Bank of China, Bank of China and Qatar National Bank. Guiding companies through the Indonesian market, Buana Finance is on the lookout for more partners.
"Indonesia is always rich in potential," Muljanto says. "The big question is, how do we unlock these potentials?" As for Buana Finance, the next step would be tapping the bond market and exploring the largely underserved eastern region.
www.buanafinance.co.id
