BRI Boss Supports OJK's Decision On Continuation Of COVID-19 Credit Restructuring

JAKARTA - BRI President Director Sunarso opened his voice regarding the government's discourse to extend the restructuring of COVID-19 credit.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the government would extend the policy of extending credit restructuring specifically for the People's Business Credit (KUR) segment and the Financial Services Authority (OJK).

Responding to this, Sunarso emphasized that he openly supports the government's plan and complies with OJK regulations.

"BRI is in principle as long as it is in accordance with the provisions in the sense of the rules, which in this case we comply with the OJK rules, because that is the domain of the OJK. If that is terminated, we will end it. If it is extended, as long as it is clear there are rules, we will follow it," said Sunarso in an online press conference, Thursday, July 25.

Furthermore, Sunarso said, even if the government did not continue the policy, his party would be quick to prepare reserves in the event of worsening credit quality, especially in the MSME segment.

For this reason, he emphasized, if later the regulation has been rolled out and contained in the OJK Regulation (POJK) then BRI will comply with regulatory regulations.

"But if there are no rules governing that, then BRI will remain focused on how to deal with the problem credit through two things. The first is through backup, the second is through commercial restructuring," explained Sunarso.

Just so you know, until the end of the second quarter of 2024, BRI was recorded to have succeeded in disbursing loans amounting to Rp1,336.78 trillion or grew by 11.20 percent year on year (yoy).

From the credit distribution, the MSME segment still dominates BRI's lending, with a portion reaching 81.96 percent of BRI's total credit disbursement, or around Rp1,095.64 trillion.

The Loan at Risk (LAR) ratio was recorded to improve or decrease, from 14.94 percent at the end of the second quarter of 2023 to 12.00 percent at the end of the second quarter of 2024. Meanwhile, the ratio of non-performing loans (NPL) was maintained in the range of 3.05 percent with the NPL coverage ratio at an adequate level of 211.60 percent.