REPUBLIKA.CO.ID, JAKARTA - Indonesian Islamic banks are expanding portofolio of microfinance as Indonesia has huge potential in the sector. A number sharia banks set target to increase the microfinance up to 20 percent this year.

President Director of Bank Mega Syariah Benny Witjaksono said the share of microfinance only five percent or 3 trillion IDR of total financing. "We plan to increase up to 3.6 trillion IDR," he said on Friday. 

Bank will strive to increase market penetration through the establishment of 40 new offices with great potential to grow. Currently Bank Mega Syariah has about 300 offices. 

Chief Financial Officer of Bank Muamalat, Hendiarto said the company targetted to increase 30 to 50 percent of existing outstanding. He estimated to increase microfinancing portofolio from 32.4 trillion IDR in 2012 to 42 trillion IDR in 2013.

Hendiarto said the potential of micro sector in the country was still very large. Banking penetration in Indonesia is currently only 26 percent of the total Gross Domestic Product (GDP). Meanwhile, it reached 110 percent in Malaysia and 140 percent in Singapore.

Director of Business Bank at BNI Syariah, Imam Teguh Saptono said the company targetted to increase microfinance eight percent of total financing portofolio. It is expected to increase 220 percent, from 265 billion IDR in 2012 to 870 billion IDR this year. 

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