BRI New Financing Finance Will Grow 20 Percent In 2024

BRI Syariah board of directors. (Photo: Doc. Antara)

JAKARTA - PT BRI Multifinance Indonesia (BRI Finance) is optimistic that new financing will grow to reach 20 percent year on year (yoy) in 2024 amid the dynamics of domestic politics.

BRI Finance Operations Director Willy Halim Sugiardi in Jakarta, Wednesday, January 17, said that his party will maintain the focus of strategy on the consumer segment as the main catalyst to achieve this target.

In addition, the company will also direct its focus on two potential segments, namely used car financing and fund facilities, which are expected to make a significant contribution to revenue.

His party remains optimistic about sustainable growth in the midst of holding the General Election (Pemilu) in 2024.

"In dealing with election dynamics, we remain optimistic that our business growth will continue, driven by a strategy to focus on consumer financing, optimizing resources, and utilizing opportunities in the electric car and high yield segments. We remain committed," said Willy, quoted from Antara.

Regarding funding in 2024, the company plans to obtain the largest source of funds from banks, as well as consider funding from the capital market by monitoring market conditions and the movement of interest rates.

This year, the company targets assets to reach IDR 10 trillion, or grow 23.5 percent (yoy), an increase from the previous IDR 9 trillion, which is the highest achievement in history.

Throughout 2023, BRI Finance recorded a total disbursement of IDR 6 trillion or grew 8 percent (yoy) compared to the previous year, where the distribution of financing was dominated by consumer financing which was more than 60 percent of the total disbursement of financing.

"New car financing still occupies the largest portion with a total of IDR 2.2 trillion or about 65 percent of the financing portfolio," said Willy.

The Company managed to maintain the Non-Performing Financing Ratio (NPF) at the level of 1.7 percent in 2023, which shows a commitment to continue to maintain the quality of financing assets.

Meanwhile, the Non-Performing Financing Ratio (NPF) as of December 2023 is also good, which is below 2 percent, which shows the company's seriousness in maintaining asset quality.

In addition to elections, this year the company is also faced with a new regulation by the Financial Services Authority (OJK), namely POJK 22 of 2023 which focuses on consumer protection which will affect changes in customer behavior, cyber risk and the implementation of ESG.