Confide In The Boss Of BRI: Because Of The COVID-19 Pandemic, We Never Got A Full Month Of Profits

JAKARTA - The President Director of PT Bank Rakyat Indonesia Tbk (BRI) Sunarso this morning just conveyed the company's financial performance throughout 2020. In the press conference that was held virtually Sunarso was not as excited as usual.

Understandably, the impact of the pandemic this time has brought a deep enough hole for the business activities of financial institutions which have the status of the largest bank in Indonesia in terms of assets.

In his presentation, he explained that most of the intermediation activities were channeled to the micro, small and medium enterprises (UMKM) sector with a share of 82.13 percent of the total credit. The rest is then distributed to various sectors.

The point is that the economic crisis that occurred as a result of this pandemic has had the most impact on the company's debtors, namely small entrepreneurs.

"What we are experiencing right now is the heaviest crisis when compared to previous crises, such as the 1998 crisis and the 2008 financial crisis," he said Friday, January 29.

It did not stop there, in order to provide an overview of how BRI's business activities were during the past year, Sunarso was then candid about the conditions that had occurred.

"There for one month we did not book a profit at all. At that time, we allocated all available resources to restructure (credit), save and save BRI's main customers, namely MSMEs, "he said.

To note, bank credit distribution with the BBRI stock code in 2020 amounted to IDR938.37 trillion or grew 3.89 percent year on year (yoy)

The strategy of cultivating provision with coverage reaching 237.73 percent has succeeded in keeping the non-performing loan ratio in good condition with a record of 2.99 percent on a consolidated basis.

The application of the precautionary principle has an impact on BBRI's profit. In his report, Sunarso said that the net profit he achieved was 'only' IDR 18.66 billion. This figure has collapsed from the acquisition throughout 2019, which amounted to IDR 34.41 trillion.

Meanwhile for third party funds (DPK), BRI recorded a growth of 9.78 percent to Rp. 1,121.1 trillion with the composition of low-cost funds (CASA) at the level of 59.67 percent.

As for the assets side, this small bank managed to make a record with assets above the psychological level of IDR 1,500 trillion, or to be precise IDR 1,511.8 trillion as of December 2020.

"With a healthy and strong fundamental condition, the BRI Group is increasingly optimistic that it can provide and deliver value to all stakeholders while remaining the government's main partner in an effort to revive the national economy," concluded Sunarso.