JAKARTA – PT Bank Tabungan Negara (Persero) Tbk (BTN) has launched Business Process Improvement (BPI) Monoline Collection, a new operating model for collection that changes debtor supervision from being managed by individual branch offices to a regional cluster-based system under the direct command of the Head Office. This transformation is expected to make the collection process more productive, efficient, and effective, particularly in accelerating the recovery and execution of non-performing loans.
In the initial pilot phase, BTN implemented the BPI Monoline Collection initiative in the Java, Bali, and Nusa Tenggara Regional Office (Kanwil Jabalnusra). The event was conducted in a hybrid format at BTN’s head office and virtually with leaders of regional and branch offices, particularly those in the Jabalnusra region.
BTN President Director Nixon LP Napitupulu explained that the initiative is part of the company’s mission to implement good corporate governance and sustainable business innovation to support public welfare and environmental sustainability.
“One of the key points in BTN’s 2025 Corporate Plan is optimizing the collection and recovery strategy. Through this improvement, we hope to achieve a gross non-performing loan (NPL) ratio target of 3.04% by the end of this year. With five months remaining, once this initiative is rolled out more broadly, we expect it will help us achieve that target,” Nixon said during the Kick-Off Implementation of the BPI Monoline Collection Pilot for Kanwil Jabalnusra at Menara 1 BTN Harmoni, Jakarta, on Friday, August 1, 2025.
Nixon explained that BTN’s collection operations currently face several challenges arising from global and domestic macroeconomic conditions, including post-COVID economic dynamics, geopolitical tensions, rising living costs and inflation, layoffs, and trade tensions triggered by United States import tariff policies.
These challenges must be anticipated so they do not negatively impact the bank’s business, particularly the potential increase in non-performing loans. Therefore, BTN sees the need to transform its business processes comprehensively, including the collection function. Through these improvements, BTN aims to increase efficiency and productivity in the collection process.
“Currently, collection and recovery costs remain high due to transportation expenses and overlapping collection processes at branch offices. By improving the collection system and recovery strategy, we expect to strengthen risk underwriting and maintain the cost of credit below 1.2%,” Nixon said.
He added that improving the collection system is also part of BTN’s strategic initiative as a modern bank, particularly in strengthening holistic banking propositions and enhancing the capability to deliver services at scale. This aligns with BTN’s long-term vision for 2029 to become “The Main Partner in Financial Empowerment for Indonesian Families.”
“We are no longer just a bank that sells mortgages (KPR). We offer a holistic package of products. Branch operations are being transformed to focus more clearly on portfolios and transactions. But before reaching that stage, we must first improve our collection system,” Nixon added.
On the same occasion, BTN Director of Risk Management Setiyo Wibowo stated that now is the right time for the company to improve its collection process, as macroeconomic conditions and business performance remain relatively stable.
“This is a good time to repair our ‘house’ or infrastructure—fixing leaks when the storm has started to ease. Interest rate pressures have declined this year and the cost of funds has stabilized. Our ultimate goal is to reduce allowance for impairment losses (CKPN) because every year we incur significant costs for it. If we can improve this, we can redirect those funds to generate revenue and increase profitability,” Setiyo explained.
Setiyo also noted that with around 2,000 collection staff across Indonesia, BTN is committed to improving its collection processes by benchmarking against top international banks. One of the key global best practices is the use of automation technologies, including chatbots and automated communication systems for debt collection.
“Most advanced banks have already automated much of their collection processes and use analytics extensively. We will also shift from a distributed system to regional or cluster-based operations. We often hear about decision engines replacing manual processes, and BTN’s collection system will move in that direction as well, making it more personalized and efficient,” Setiyo concluded.
