BTN Overhauls Collections with New Monoline Model

Focus on Efficiency Aims to Slash Problem Loans

PT Bank Tabungan Negara (Persero) Tbk, widely known as BTN, has launched a revamped debtor development strategy, the Monoline Collection Business Improvement (BPI), to streamline loan recovery and boost efficiency. This initiative directly headquartered aims to improve the handling of problematic loans.

Pilot Program Targets Key Regions

The BPI is being rolled out as a pilot program across Java, Bali, and Nusa Tenggara, collectively referred to as the Jabalnusra Regional Office. This move is also positioned as a stride towards enhanced corporate governance and sustainable business practices.

Strategic Push to Meet NPL Targets

Nixon LP Napitupulu, BTN’s President Director, highlighted the BPI’s critical role in the company’s 2025 strategy, specifically focusing on optimizing collection and recovery. He expressed confidence that this initiative will help achieve the company’s Gross Non-Performing Loan (NPL) target ratio of 3.04% by year-end.

“There is still five months left, so after this initiative roll out en masse, the hope is to encourage the achievement of the target,”

—Nixon LP Napitupulu, President Director, BTN

Navigating Economic Headwinds

Nixon acknowledged the current challenges in managing problem loans, citing global and domestic macroeconomic factors. He pointed to the post-COVID-19 economic shifts, geopolitical tensions, and global uncertainties that have contributed to increased layoffs, rising living costs, and inflation, all of which can deepen the risk of problematic loans.

BTN recognizes the necessity of a comprehensive business process transformation to counter these risks and prevent an escalation in their problem loan ratios. The bank aims to strengthen its risk underwriting and maintain a cost of credit below 1.2%.

Holistic Banking Vision

The BPI initiative aligns with BTN’s broader ambition to offer comprehensive banking services and expand its operational scale. The bank is evolving beyond its traditional role as a mortgage provider to offer integrated product packages.

This transformation extends to branch office operations, encompassing both financing and transactional services. As Nixon stated, “Before reaching there, we first finish the collection.”

Timely Transformation in Favorable Conditions

Setiyo Wibowo, BTN’s Risk Management Director, views the current credit collection overhaul as timely, occurring amidst relatively stable macroeconomic conditions and solid business performance. He noted that interest rate pressures have eased this year, leading to a decline in the cost of funds.

The ultimate objective for BTN is to reduce its cost for impairment provisions (CKPN). Setiyo elaborated, “Because every year we pay a large enough cost for that. If it can be improved, we can use the cost to generate revenue and increase profitability.”

Leveraging Technology and Staff

BTN boasts 2,000 collection staff nationwide and is committed to enhancing its collection processes by adopting international best practices. A key element of this strategy involves the implementation of automation technologies, including the use of chatbots for debtor communication.

Setiyo observed that leading banks increasingly rely on automated collection systems and data analytics. BTN plans to transition from a decentralized system to a regionalized or cluster-based approach. For instance, in Indonesia, the adoption of digital payment systems has surged; by the end of 2023, over 80% of transactions were conducted digitally, indicating a societal shift towards technology adoption that BTN can leverage (Bank Indonesia, 2024).