Bank DKI MSME Credit Ratio Increases 2 Percent Compared To Last Year

Regional development banks (BPD) of Bank DKI recorded an increase in the ratio of lending for micro, small and medium enterprises (MSMEs) by 2 percent as of September 2023 from last year.

"The MSME credit ratio of Bank DKI in the third quarter of 2023 has reached 9.87 percent from the previous recorded 7.00 percent in September 2022," said Bank DKI Finance and Strategy Director Romy Wijayanto in his statement, Thursday, October 26.

In addition, consumer credit recorded positive growth or 13.64 percent to IDR 21.58 trillion in September 2023, from IDR 18.99 trillion in September 2022.

Then, the larger-scale lending strategy was carried out selectively by Bank DKI, such as syndicated loans which grew 10.91 percent to Rp6.53 trillion in September 2023, from the position of Rp5.89 trillion in September 2022.

The distribution of the commercial credit segment, including the term loan in September 2023, reached IDR 15.54 trillion, while medium credit was reached at IDR 1.37 trillion in September 2023.

"Specifically, financing for the sharia segment also grew 6.22% to IDR 7.70 trillion in September 2023, from the previous IDR 7.24 trillion in September 2022," he said.

In the credit expansion strategy, this bank owned by the DKI Provincial Government continues to prioritize effective risk management and strict supervision to ensure optimal asset quality.

The gross non-performing loan (NPL) ratio is maintained at a low level of 1.83 percent with a net NPL of 0.64 percent in September 2023. Bank DKI also formed adequate reserves with the Coverage Ratio at a conservative level reaching 219.96 percent in September 2023.

"Efforts to control credit quality are also carried out through collection, restructuring, as well as efforts to save credit, in accordance with applicable regulations," said Romy.

Furthermore, micro credit also showed good performance with a growth of 42.86 percent to Rp3.27 trillion in September 2023, from the position of Rp2.29 trillion in September 2022.

The main credit growth was driven by the retail segment which grew by 68.66% to Rp1.66 trillion in September 2023, from the position of Rp986.30 billion in September 2022.