Wong Cilik's Bank BRI Record Microcredit Growth Of 15 Percent At The End Of First Half 2022

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JAKARTA – PT Bank Rakyat Indonesia Tbk. (BRI) is said to have succeeded in achieving microcredit growth of 15 percent year on year (yoy) at the end of the second quarter of 2022.

Director of Micro Business BRI Supari said the company as a group recorded credit disbursement of Rp1,104.79 trillion, or grew 8.75 percent. The largest bank in Indonesia is also known to continue to focus on empowering the ultra-micro and MSME segments, as reflected in the increase in the MSME loan portfolio.

Meanwhile, the proportion of BRI's MSME loans in the second quarter of 2022 has grown 9.81 percent from IDR 837.82 trillion at the end of June 2021 to IDR 920 trillion at the end of June 2022.

"This makes the proportion of MSME loans compared to BRI's total loans continues to climb, to 83.27 percent," he said in a press statement quoted by the editorial team on Sunday, July 31.

According to Supari, BRI's ability to disburse loans to the micro segment is projected to continue to grow positively. Ultra Micro Holding (UMi), which was formed since September 13, 2021, is said to be the spearhead of the BRI Group in reaching ultra micro customers.

The holding, which consists of three entities, namely BRI, PT Pegadaian, and PT Permodalan Nasional Madani (PNM), is targeted to be able to empower 55 million customers by 2024.

“Various programs are carried out by BRI as a large framework for empowerment in accordance with the Ultra Micro Ecosystem Synergy corridor. We encourage Pegadaian and PNM entities to ensure that ultra-micro business actors have the knowledge, capabilities and opportunities to access fair and inclusive financial services in order to avoid vulnerabilities," he said.

Furthermore, the wong cilik bank targets overall financing growth this year to grow in the range of 9-11 percent yoy.

The credit expansion carried out by BRI is claimed to prioritize the precautionary principle as an effort to maintain the ratio of non-performing loans (NPL) which is targeted to be maintained at the level of 2.8-3 percent in 2022.

Nevertheless, BRI stated that it is still preparing anticipatory steps against the potential for credit deterioration. BRI's NPL coverage has increased from 252.59 percent in the second quarter of 2021 to 266.26 percent in the second quarter of 2022.

In terms of profitability, this stock-coded bank on a consolidated basis managed to record a net profit of Rp24.88 trillion or grew 98.38 percent yoy with total assets increasing 6.37 percent to Rp1,652.84 trillion.