BI Raises Reference Interest Rates, BRI Pede Can Maintain Double Digit Loans

JAKARTA - President Director of PT Bank Rakyat Indonesia Tbk (BBRI) Sunarso said he was optimistic that he could distribute credit amid the onslaught of high interest rates.

Just so you know, Bank Indonesia raised the benchmark interest rate to 6.25 percent on Wednesday, April 24.

Responding to this, said Sunarso, BI's decision to raise interest rates was a rational and logical decision in the midst of Indonesia's efforts to control inflation and weaken the exchange rate.

Sunarso said that this interest rate increase certainly had an impact on banks, which of course took the burden of maintaining banking liquidity in order to maintain exchange rates and inflation.

However, Sunarso said that this interest rate increase did not have a significant impact on the company because it had a strong capital condition.

"In the midst of the strict liquidity of national banking as a result of the era of high interest rates, BRI managed to maintain its liquidity ratio at an adequate level, where it was recorded that the Loan to Deposit Ratio (LDR) of banks at the end of March 2024 was recorded at 83.28 percent," he said at a press conference in Jakarta, Thursday 24 April.

According to him, with LDR in kisara 83.38 percent, BRI has no problems with liquidity and is still printing credit disbursement growth of 10.89 percent year on year in the first quarter of 2024 or reaching Rp1,308.65 trillion.

"This means that credit is still growing while liquidity is still loose in terms of LDR at 83.38 percent," he said.

Furthermore, Sunarso said, actually the ideal LDR is in the range of 90 to 92 percent.

With BRI LDR at 83.38 percent, he believes the company still has room for growth for credit.

"What are the high interest rates for challenges? It will definitely cause challenges in liquidity, but for BRI, with an LDR of 83.38 percent I think we're normal," he continued.

Sunarso ensured that BRI maintains the liquidity ratio in a healthy manner but will not put the brakes on lending.

"We can still grow credit because our credit grew 10.9 percent. This means maintaining credit in double digits. We still have to be able to maintain credit growth at double digits even though the BI interest rate rose 25 basis points," concluded Sunarso.