Strengthening MSME Development, BSI Distributes KUR of More Than IDR 1 Trillion in West Java in 2022

Photo: Doc. Antara

JAKARTA - PT Bank Syariah Indonesia Tbk (BSI) continues to optimize KUR distribution to strengthen its role in developing the micro, small and medium business sector in the country, one of which is by distributing People's Business Credit (KUR) of more than IDR 1 trillion in the West Java region in 2022.

Director of Retail Banking BSI, Ngatari, said 62 per cent of KUR distribution in West Java in 2022 will be channelled to the trade sector. Then 10 per cent is distributed to the agriculture, fishery, plantation sectors and 7 per cent to the processing industry, and 1 per cent is distributed to other sectors.

"BSI is committed to continuing to assist the people of West Java in improving and driving the wheels of the economy, especially in the MSME sector to raise their standard of living. One of them is through the distribution of KUR, which thank God continues to increase each year both in terms of distribution and the number of beneficiaries", said Ngatari in a statement in Jakarta, quoted from Antara, Tuesday, March 7.

In addition, continued Ngatari, BSI also provides assistance, financial education and assurance of off-takers to farmers who are partners with the Al-Ittifaq Islamic Boarding School in Rancabali District, Bandung Regency, West Java.

"Hopefully, through the distribution of KUR, the level of economic welfare for farmers will be better in the future", said Ngatari.

Nationally, BSI this year provides KUR of IDR 14 trillion in 38 provinces in Indonesia

BSI posted impressive performance throughout 2022 by posting a net profit of IDR 4.26 trillion. The company's profit growth was accompanied by an increase in BSI's assets, which currently reached IDR 305.73 trillion, growing 15.24 per cent on an annual basis.

In addition, the company's performance was also supported by healthy business growth from the retail and wholesale segments, and supported by an increase in low-cost funds, good quality financing, cost efficiency and effectiveness and fee-based income (FBI).

As of December 2022, BSI's total financing reached IDR 207.7 trillion, with the portion of financing dominated by consumer financing of IDR 106.4 trillion, growing 25.94 per cent (YoY).

In addition, wholesale financing amounted to IDR 57.18 trillion or grew 15.80 per cent (YoY) and microfinancing reached IDR 18.74 trillion, growing 32.71 per cent (YoY).

BSI continues to target customers who have first assets, fixed income, and entrepreneurs. In 2022, BSI noted that the consumer financing segment (Griya, Oto, Multiguna) grew exponentially.

Likewise, the wholesale business focuses on syndicated financing and collaboration with the Government, and microfinance focuses on channelling MSME, KUR financing and collaboration with various government agencies.