FINANCIAL COMPANY WOM FINANCE : Still losing money due to credit crunch

FINANCIAL COMPANY WOM FINANCE : Still losing money due to credit crunch -

However, a subsidiary of PT Bank International Indonesia Tbk engaged in this multi, optimistic to make a profit in the second half, after the previous two quarters of losses.

Wahana Ottomitra Multiartha Tbk (WOM Finance) posted a net loss of Rp45, 69 billion in the period January to June 2012, and is the opposite of a year ago are still net profit of Rp692 million.

Losses multi-specialist two-wheeler financing, an increase compared to the previous quarter recorded Rp22, 31 billion.

Based on the publication of the company's losses increased driven by higher expenses much higher than revenue.

One is the component of allowance for impairment losses increased from Rp101, 65 billion from 75.13 billion.

Furthermore, general and administrative expenses increased from Rp223, 22 billion to Rp234, 39 billion. Besides salaries and employee benefits expense also increased from Rp 221.77 billion to Rp256, 09 billion

Djaja S. Sutandar, President of Wahana Ottomitra Multiartha Tbk (WOM Finance), explain the increased losses due to the many non-performing loans due to aggressive expansion in 2010 until the third quarter of 2011.

"The quality of the portfolio of booking period is not good, so the provision of [reserves] to be large and the highest peak in the second quarter," he told Business, Tuesday (28/08/2012).

However, he is optimistic that the conditions in the third quarter and the fourth quarter will be much better that the company will begin to record profit.

He said there are four things the company has done in suppressing the financing problems. First remove the financing with small down payment.

Previously, customers with down payment of 12.5% ​​could have a share of 25% of the total. "It's relatively no. Fact, there is no minimum payment before the policy last June," he said.

Second, the company reorganized the structure of the collection and marketing. Third, the use of first installment leading indicator to gauge the health portfolio default for all functions including book dealers.

"Fourth, improve control and monitoring functions to suppress the fraud that hurt the company," he said. (Ra)