NPL Decreases, BRI President Director Reveals Strategy To Improve Asset Quality

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) has succeeded in reducing its non-performing loan (NPL) ratio to 2.90 percent as of September 2024. This figure is better than the same period the previous year, NPL BRI was at 3.07 percent.

BRI President Director Sunarso revealed that the level of smoothness of downgraded or downgraded debtors has also decreased. On a quarterly basis or quarter on quarter (qoq), the amount of downgraded credit to "less smooth" and "acet" has decreased by around IDR 750 billion.

Sunarso said, there are several ways BRI has taken in reducing the NPL level and downgrading its credit portfolio.

"First, in front end, we emphasize the marketing department to continue to grow credit but be selective and tighten risk acceptance criteria and also the underwriting process with the application of stricter corporate governance principles," said Sunarso, Wednesday, November 13.

Then in the mid-end section, Sunarso explained that the credit portfolio, which is already on the BRI balance sheet, must be prepared so that the quality of credit is maintained. You do this by strengthening monitoring, increasing risk awareness.

In addition, he said, periodically the bank, which focuses on financing MSMEs, is doing stress testing to find out the direction of the turmoil from its credit portfolio.

He continued on the back end, namely at a bad credit portfolio that could not be saved, a restructuring would be carried out.

"If it can't be guarded, it keeps falling, what do you do? It's in back end that's working. Then we do reconstruction, even if necessary we do early restructuring," explained Sunarso.

If the restructuring credit has not been fulfilled, he said BRI will accelerate the recovery process.

"This has become a business model in the micro segment. So in front end, you have to be aggressive in looking for cargo and then the cargo is sorted, there are those who can be held in good health, and that's the task of mid-end. But then if those who are not healthy are thrown back, in the back end, and back end it is normal to restructure, if you can still have hope, and if you can't do it again, it's written off," he explained.

Write off or delete bad credit books will be carried out, but collections will still be made. Sunarso said the results of the collection were income from recovery.

"Because actually, it's our money that we have donated and withdrawn. That's why it's in the form of income from recovery. So this business model needs to be understood by all stakeholders," he said.