BRI's Income From Troubled Assets Soars Two Digits

Screenshot of the Director of Risk Management of PT Bank Rakyat Indonesia Tbk (BRI) Agus Sudiarto at a press conference in Jakarta, Thursday (30/11/2023). (DOC. ANTARA)

JAKARTA - Revenue recorded from recovery or sales of problematic assets, both auction and non-auction, PT Bank Rakyat Indonesia (Persero) Tbk or BRI until April 2024 achieved double-digit growth.

"It is hoped that the various efforts to recover problematic assets that we have taken will also have an impact on maintaining BRI's NPL which is targeted to be around 3 percent," said BRI Risk Management Director Agus Sudiarto in a written statement in Jakarta, reported ANTARA, Saturday, June 1.

The company emphasized that BRI continues to strive to maintain the quality of the credit disbursed. Therefore, the sale of collateral for loans that are already problematic is one of the company's strategies to maintain the ratio of non-performing loans (NPL).

Agus said that sales of collateral were part of the recovery of problematic assets other than other settlement efforts.

According to him, the majority of problematic assets sold are the retail segment of 83.85 percent of all sales through auctions and impacts.

The company said that BRI is optimistic that the revenue recovery target from sales of problematic assets and other settlements can be achieved this year. This target is in line with the stable economic conditions.

In addition, BRI also continues to improve its problematic asset marketing strategy through digital marketing platforms through infolelang.bri.co.id. BRI also conducts other marketing efforts such as cooperation with property brokers and other third parties, following and organizing auction expos, core customer gatherings, and so on.

For information, BRI has disbursed loans totaling Rp1,308.65 trillion until March 2024. This number grew 10.89 percent year-on-year (YoY).

Of the total credit, 83.25 percent of which or Rp1,089.41 trillion was distributed to the MSME segment. Credit distribution in the micro segment also grew by 10.51 percent yoy to Rp622.61 trillion.

Meanwhile, lending in the consumer segment rose 11.62 percent yoy to Rp193.96 trillion, small and medium segments increased 8.06 percent yoy to Rp272.85 trillion, while the corporate segment grew 15.10 percent yoy to Rp219.24 trillion. BRI was able to maintain the quality of loans disbursed with controlled NPL at 3.11 percent. Meanwhile, loan at risk (LAR) also improved from 16.39 percent at the end of the first quarter of 2023 to 12.7 percent at the end of the first quarter of 2024.