BRI Disburses MSME Loans of IDR 920 Trillion until the end of June 2022

BRI Disburses MSME Loans of IDR 920 Trillion until the end of June 2022

PT Bank Rakyat Indonesia Tbk (BRI) recorded positive growth in the second quarter of 2022. In the MSME lending sector, BRI’s credit portion has now reached 83.27%. This was stated by the President Director of BRI Sunarso in the Press Conference of Financial Performance Presentation for the Second Quarter of 2022. On this occasion, Sunarso explained that BRI managed to record significant growth in the lending segment for MSMEs.

“In particular, BRI’s MSME loan portfolio grew 9.81 percent annually. From last year’s Rp 837.82 trillion, and by the end of June this year it had become Rp 920 trillion. This makes the portion of MSME loans compared to BRI’s total credit continues has increased, so that now the portion of MSME loans has reached 83.27%,” he explained at a press conference held virtually.

Sunarso said this was in line with BRI’s strategy to refocus its portfolio on the MSME segment. However, Sunarso assesses this achievement is still lacking. “Because we want that in the end the portion of credit to MSMEs at BRI must reach 85%. We are targeting that in 2024-2025,” he added.

This, Sunarso continued, is a strong signal that MSME actors in Indonesia have risen and returned to their normal activities. “We are optimistic that this will encourage BRI credit growth and credit growth nationally,” he said. In addition, he explained that BRI’s lending to all loan segments experienced significant growth.

“The main support is in the micro segment. Loans to the micro segment grew 15.07 percent, while loans to the consumer segment grew 5.27 percent and loans to corporations grew 3.76%,” he explained. Meanwhile, loans to the small and medium (SME) segment recorded a growth of 2.71%. Overall, the total credit and financing of the BRI Group until the end of June 2022 was recorded at Rp. 1,104.79 trillion or grew by 8.75% year on year (yoy).

On the other hand, Sunarso said BRI succeeded in achieving a consolidated net profit of Rp 24.88 trillion, or grew 98% compared to the same period in the previous year. This profit was offset by the total assets of the BRI Group in the first semester which reached Rp 1,652.84 trillion or grew 6.37%.

“This achievement cannot be separated from BRI’s ability to carry out appropriate strategic responses to policy responses made by the government and regulators in response to challenges that come from the economic situation, both domestically and globally,” he said.

In terms of risk management, Sunarso said BRI’s NPL ratio on a consolidated basis was still under control at the level of 3.26% and NPL Coverage 266.26%. In order to maintain this number, BRI will be selective and focus on sectors that have strong potential, such as agriculture, chemical industry and food and beverage.