BRI Performance Outlook 2022: Loans Increase 10 Percent, Third Digit Growth In Single Digits, Loose Liquidity

BRI President Director Sunarso (Photo: Doc. Antara)

JAKARTA - PT Bank Rakyat Indonesia Tbk (BRI) targets credit growth of 8 percent to 10 percent year-on-year (yoy) throughout 2022.

BRI Chief Economist Anton Hendranata said that this credit expansion was in line with BRI's efforts to encourage economic recovery, especially the micro, small and medium enterprises (MSME) sector.

"Macroeconomic conditions that are predicted to show improvement will further support BRI's efforts in disbursing capital for MSMEs," he said in an official statement, Monday, December 27.

According to Anton, the issuer with the stock code BBRI assesses that the MSME sector has been encouraged to recover thanks to the people's purchasing power which has improved since this year.

"This condition opens up opportunities for BRI to increase the distribution of capital for MSME actors," he said.

In his explanation, it was stated that the growth of Gross Domestic Product (GDP) will accelerate in the range of 4.8 percent to 5.3 percent yoy in 2022 if the MSME sector rises and the COVID-19 pandemic remains under control.

“Increasing demand and increasingly consumptive consumers strongly support credit growth. Moreover, MSMEs have unique characteristics where the sector is quickly affected if mobility is limited, but also quickly rebounds when mobility increases," he said.

Anton, who also serves as Research Director of the BRI Research Institute, said that the company's projected growth in third party funds (DPK) next year is in the range of 5.14 percent to 6.84 percent yoy.

"Nevertheless, BRI liquidity still has room for credit expansion because the loan to deposit ratio (LDR) is still at the level of 83 percent or below the regulator's lower limit of 92 percent," he said.

Meanwhile, regarding the potential increase in Bank Indonesia's benchmark interest rate, BRI estimates that the BI-7DRR will increase to 4.25 percent to 4.50 percent or higher than the current position of 3.50 percent.

"We support MSME players to increase their class more massively during this pandemic. BRI is trusted to raise the potential of the ultra micro segment by becoming the holding company for Ultra Micro SOEs with PNM and Pegadaian," he continued.

On the other hand, the expectation of the MSME business index is that it will jump from 88.1 in the second quarter of 2021 to 132.0 in the third quarter of 2021.

“The rising consumer confidence index has stimulated household consumption activity, which has slowed growth in deposits. People have started to dare to spend so that GDP can grow higher than in 2021," concluded Anton.