Keep Asset Quality Healthy, This Is BRI's Risk Management Strategy Amid Global Economic Dynamics

JAKARTA - Currently, global economic conditions are full of pressure due to the impact of geopolitical tension and tariff wars. Facing these conditions, PT Bank Rakyat Indonesia (Persero) Tbk. (BRI) has prepared a number of strategies to maintain the quality of assets and financing to stay healthy, especially in the MSME segment which is the main business focus of the Company.

BRI Risk Management Director Mucharom said that amid the domestic consumption pressure that occurred, BRI continued to prioritize selective growth principles in order to maintain credit quality in a sustainable manner. As a bank with the largest portion of MSME financing in the country, BRI recorded MSME credit disbursement until March 2025 of IDR 1,126.02 trillion or equivalent to 81.97% of the total credit portfolio.

This step is also important so that financing growth remains in line with market conditions, without sacrificing the aspect of prudence in risk management. This is reflected in the improvement in BRI's Non-Performing Loan (NPL) ratio from 3.11% at the end of the first quarter of 2024 to 2.97% at the end of the first quarter of 2025. Similar improvements were also seen in the improved Loan at Risk (LAR) ratio or decreased from 12.68% at the end of the first quarter of 2024 to 11.12% at the end of the first quarter of 2025.

"Of course we strengthen the monitoring function and also the early warning system, so that we can find out the condition of customers and also anticipate if there is a potential for worsening," Mucharom said in the Press Conference for Financial Performance Exposure in the First Quarter of 2025, Wednesday (30/4/2025).

Furthermore, said Mucharom in strengthening the MSME segment, the readiness of human resources and supporting infrastructure is also a concern of the Company. An assessment is carried out on the competence and capacity of the existing team, especially in the main business lines.

At the same time, in addition to the early warning system, BRI is also improving the fraud deflecting system in order to be able to identify potential risks and proactive activities and activities in the business process are also being reviewed as part of strengthening the overall risk management foundation.

We also look back at the existing systems and tools, we try to see and review again, we already have credit scoring, credit rating. Then, we will see again, of course, our credit rating will be more granular and maybe more able to distinguish each sector of the economy, per each region, so that we can see more detailed risks," he said.

Meanwhile, during the first quarter of 2025, the global economy itself is still overshadowed by uncertainty due to increasing geopolitical tension and the continued impact of tariff wars, which suppress international trade activities and supply chains. However, amid these challenges, BRI Group was able to record a net profit of IDR 13.80 trillion and recorded total assets of IDR 2,098.23 trillion, growing 5.49% year-on-year.

For information, BRI's Director of Risk Management, Mucharom was appointed at the BRI Annual General Meeting of Shareholders (AGMS) on March 24, 2025 and began carrying out duties after obtaining approval of the Assessment of Ability and Property from the OJK. (ADV)