COVID-19 Credit Restructuring Will End Soon, BRI Coverage NPL Reaches 215 Percent

Bank BRI (Photo: dock. Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk or BRI has prepared a number of strategies in the face of the COVID-19 credit restructuring which will end in March 2024.

BRI President Director Sunarso said that the company had recorded a restructuring of credit value affected by COVID-19. As of December 2023, the outstanding COVID-19 restructuring credit at BRI reached IDR 54.5 trillion, shrinking from the previous year which reached IDR 107.2 trillion.

"If it is calculated from its peak, Rp210 trillion has been released from the status of restructuring, so now the outstanding is only Rp54 trillion," he said.

Before the end of the restructuring policy, BRI has prepared sufficient and adequate reserves.

"Now BRI's NPL coverage as of December 2023 is 215.27 percent, we have provided more than twice from NPL. I think that's more than enough. And then the credit quality or BRI NPL is controlled at the level of 2.95 percent," he added.

In addition, Soenarso continued, another strategy was carried out, namely by selective growth and maintaining risk management. BRI has formed a regional risk management in each region to oversee credit quality and actively monitor credit portfolios.

As for this year, BRI will also focus on strengthening retail banking capabilities and having additional aspirations, namely optimizing the contribution of subsidiaries. Then will remain focused on MSMEs, especially in ultra micro. Therefore, continuing the performance and strategy of Holding UMi will remain a top priority as a source of new growth.

"BRI will continue to ensure the availability of new sources of growth, especially coming from the ultra micro segment, the second is to ensure sufficient capital to cover sustainable business growth in 2024," he added.

As is known, in terms of the intermediation function until the end of December 2023, BRI succeeded in encouraging lending to grow 11.2 percent yoy to Rp1,266.4 trillion. This achievement was recorded to be higher than the lending of the national banking industry which was 10.4 percent yoy throughout 2023.

Meanwhile, BRI's performance throughout 2023 on a consolidated basis recorded that the company's assets grew 5.3 percent yoy to Rp1,965 trillion, and posted a profit of Rp60.4 trillion or grew 17.5 percent year on year (yoy).