WOM Finance Genjot Rp5 Trillion Projected Financing

JAKARTA - PT Wahana Ottomitra Multiartha Tbk (WOMF) would boost funding in the second half of this year to achieve financial targets in 2009 which set Rp5 trillion. Until the first half of 2009 WOM new financing channel Rp1, 9 trillion.

"At the beginning of last semester, our financing is a little slow," said Wom Finance Director President Director Kelvin Wiratno, in Jakarta, Thursday (3/9/2009).

He said the global economic crisis that began in the fourth quarter of last year to make the company more selective in distributing motorcycle loans this year. WOM he explained, he prefers the principle of prudence in order to suppress the number of problem loans (non-performing loans / NPL).

Until the first half of 2009, WOM managed to channel financing worth 160 thousand units Rp1, 9 trillion. As of August 2009, WOM managed to increase the financing of 255 thousand units Rp2, 7 trillion. "What is certain at the beginning of our little bit slow because we are more prudent," said Kelvin.

Yet clearly Kelvin, in the second half of this year will boost financing WOM so this year targeted credit of 400 thousand units worth Rp 5 trillion can be achieved. Total funding will be distributed in the motor used for the remaining 35 percent and 65 percent of new motorcycles. "We optmistis be achieved," he said.

Regarding funding largely through joint financing from the national banking system, especially PT Bank International Indonesia Tbk (BNII) as the main effort. The rest of the internal cash and other external funding without mentioning the composition of each of these funds.

This optimism he explained, seiringnya with the increasing demand for motor trend, especially towards the end of the year and Lebaran. According to him, the trend of increasing demand for motorcycles was also triggered by the decline in interest rates by Bank Indonesia (BI rate) to a level of 6.5 percent over inflation melandainya.

This condition is emphasized by the national bank's 14 policy which required lowering the maximum mortgage interest rates 150 basis points (bps) above the BI rate. "While this policy can not directly respond, but the trend will lead to an increase in the automobile industry," said Kelvin.

Kelvin said, to achieve financial targets this year the company sought to provide more benefits to existing customers (existing). One way is to give the program KAWAN (WOM Card Beneficial). This program is intended for WOM customer service by offering discounts and sweepstakes programs. "We see consumers are not only limited to customers within 2-3 years of credit period, but more than that," said Kelvin.

In addition, WOM is also clear that he will add branches in order to boost funding. In this year the company will add 20 branches to 160 branches from the previous 140. Per semester I-2009, WOM add a new branch office in South Sumatra. Until the end of the year the company will add approximately 19 branch offices spread in Sumatra, and Borneo. Investments budgeted each one office is estimated at Rp100-150 million to be funded from internal cash.

WOM-year funding target of Rp 5 trillion is equal to 2008. It's just the volume, has decreased from 487 thousand units in 2008 became only the approximately 400 thousand units this year. This decrease clearly Kelvin, because the decline in the national motor industry.