Aiming For 10 Percent Credit Growth, BRI Optimizing The MSME Sector

Illustration (Photo: Doc. Antara)

JAKARTA – PT Bank Rakyat Indonesia Tbk. (BRI) is said to have set a credit growth rate of 8 percent to 10 percent year-on-year (yoy) throughout 2022.

BRI's President Director Sunarso said that the people's purchasing power which was starting to recover was a positive catalyst for the company's business.

"Credit growth was supported by growth in the micro, small and medium enterprise (MSME) segment, which has been known as BRI's main backbone. This strategy is in line with BRI's efforts in accelerating the national economic recovery," he said in a written statement as received by VOI on Sunday, January 9.

According to Sunarso, the company's ability to expand is reflected in the Loan to Deposit ratio (LDR) which is still at 83% percent (as of September 2021). This expansion capability is supported by strong capital with a Capital Adequacy Ratio (CAR) of 24 percent or three times above the threshold set by Bank Indonesia (BI).

“How do we see the opportunities ahead? Our LDR is in the range of 83 percent while the optimal one, even the regulator has set an upper limit of 92 percent. This means that BRI still has sufficient room in terms of liquidity to grow credit. So BRI still has the opportunity to grow aggressively in the future, of course aggressively accompanied by caution," he explained.

Furthermore, Sunarso explained that his party had anticipated a number of major business challenges this year. First, the condition of controlling COVID-19. Second, mitigating the effects of global and domestic monetary policy directions.

"Although still covered by the COVID-19 pandemic, BRI has managed to get through the 2021 period with excellent performance. BRI sparked economic recovery in the ultra micro segment by carrying out the process of forming the Ultra Micro BUMN Holding last year," he said.

For information, BRI has taken corporate actions to increase capital through Pre-emptive Rights (PMHMETD) or Rights Issues in the context of establishing an ultra-micro ecosystem with a total of IDR 95.9 trillion.

"The establishment of the Ultra Micro holding further strengthens BRI's synergy with its subsidiaries, so that it will create optimal spreading risk and diversify the BRI Group's income. The corporate actions and BRI's financial performance last year also received appreciation from various stakeholders," concluded Sunarso.