BRI Responds Positively To The 2022 KUR Ceiling Increase: This Is Our Growth Engine

JAKARTA - PT Bank Rakyat Indonesia Tbk. (BRI) welcomes the government's decision to increase the ceiling for People's Business Credit (KUR) for the 2022 period to Rp373.17 trillion with a fixed interest rate of 6 percent.

BRI Deputy President Director Catur Budi Harto admitted that he had prepared infrastructure in terms of developing MSMEs including KUR for next year.

"As the largest KUR distributor in the country, BRI responds to this policy as something positive because KUR is one of the pillars of the growth of MSMEs in Indonesia," he said in an official statement, Thursday, December 30.

According to Catur, his party will expand the reach for MSME players, especially BRI micro customers who are struggling to recover their business.

"It should be noted that KUR is one of the growth engines for BRI in the midst of the current challenging economic conditions," he said.

On the same occasion, Director of Micro Business BRI Supari said that the company has sufficient capacity to meet the target of KUR distribution from the government.

"This is reflected in the realization of BRI's KUR until the end of November 2021, which amounted to Rp. 181.39 trillion to more than 6 million customers. This figure is equivalent to 93.02 percent of the overall target for the year of IDR 195 trillion," he said.

In terms of distribution, in 2019 the reach of KUR reached 5.4 people out of 100 people. Meanwhile, for this year, it increased significantly to an average of 8.7 out of 100 people.

"We estimate that the micro segment will drive the company's loan growth in 2022," he said.

For information, the disbursement of the bank's consolidated credit, codenamed BBRI, until the third quarter of 2021 was IDR 1,026.42 trillion or grew 9.74 percent compared to the same period the previous year (year-on-year / yoy).

BBRI confirmed that the main factor supporting the intermediation function was microcredit, which contributed 45.27 percent of the company's total credit. In nominal terms, the amount of micro credit reached Rp.464.66 trillion or increased by 41.32 percent yoy.

"BRI will continue to optimize digital channels to increase efficiency and maintain a solid bottom line and optimal returns," concluded Supari.