Credit Restructuring Will Be Extended, BRI Says Ready To Implement Policy

JAKARTA - PT Bank Rakyat Indonesia Tbk (BBRI) has opened its voice regarding the discourse on extending the restructuring of COVID-19 credit until 2025, his party is ready to implement the policy when it is outlined in the regulations.

BRI Micro Business Director Supari conveyed that regarding the plan to extend the relaxation of credit restructuring affected by Covid by the Government, BRI is ready to carry out the plan to extend the restructuring in question if a policy has been issued by the government and the Financial Services Authority (OJK), BRI will obey and implement it.

"In the framework of the MSME rescue program from the impact of the COVID-19 pandemic, BRI has implemented a COVID-19 restructuring program since the issuance of POJK No. 11/POJK.03/2020 in March 2020 and has ended it on March 31, 2024, as stated in the Decree of the OJK Board of Commissioners No. 34/KDK.03/2022," he said, Friday, June 28.

Supari conveyed that in carrying out credit restructuring for MSMEs affected by COVID-19, BRI focused on restoring customers and as a form of caution during the BRI pandemic, it has prepared more conservative reserves according to PSAK 71 to anticipate future risks.

For information, until the end of March 2024, BRI's credit quality was maintained with a non-performing loan (NPL) of 3.11 percent and as an NPL coverage of 214.26 percent.

Supari said that in the future, BRI also hopes for a strengthening policy that can strengthen people's purchasing power and increase household consumption.

"These two factors are the main drivers of MSME credit growth, which is the main contributor and the backbone of the Indonesian economy in the midst of challenging macroeconomic conditions," he said.

Previously, Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar said his party would conduct an in-depth investigation regarding the plan to extend the Covid-19 credit restructuring.

"I heard that, we want to explore what is meant by matters related to (the extension of bank credit restructuring)," he said after the Bundaku Financial Education Talkshow on Tuesday, June 25.

Mahendra conveyed that his party in making decisions to end the restructuring of Covid-19 credit had calculated in terms of its impact by taking into account the adequacy of capital, backup or reserve losses of decreased value (CKPN), liquidity, and capacity for credit growth.

"Yesterday in the decision making for the termination of the pandemic credit restructuring, it has been calculated in terms of capital adequacy, CKPN reserves, nor does it interfere with liquidity and capacity for credit growth have been seen, observed, and guarded," he said.

According to Mahendra, with the end of the Covid-19 credit restructuring policy, credit growth in 2024 was higher than the previous year.

"So, from that point of view [the end of the stimulus] is actually what happened or at the end of March the tempo of the day, or after that, nothing is an anomaly," he said.

Mahendra said that his party would conduct an evaluation of proposals from the government regarding the extension of the Covid-19 credit restructuring.

"So we conducted an evaluation, both related to what was completed last March, which restructured the pandemic credit, as well as the issues raised (extended the restructuring of Covid-19 credit)," he explained.

Even so, Mahendra conveyed that he understood and understood the direction of the government's proposal for the restructuring of Covid-19 credit to be extended because there were several potential credit growth in certain segments. "There is a special concern for the potential for credit growth in certain segments," he said.