Quarter II 2024, Bank DKI MSME Loans Grow 22.78 Percent

Photo: Doc. Bank DKI

JAKARTA - Bank DKI has again succeeded in recording positive Business Performance as well as showing comprehensive support for sustainable financial action. Through focusing on increasing the MSME portfolio which is also in line with the bank's vision and mission, the Company recorded credit and financing for the MSME segment which grew by 22.78% from IDR 4.41 trillion as of June 2023 to IDR 5.41 trillion as of June 2024.

The credit and financing of the MSME segment, namely Micro credit for the period of June 2024, increased 27.99 percent to Rp3.81 trillion from the previous Rp2.98 trillion in June 2023, and Retail loans for the period of June 2024 increased 11.94 percent to Rp1.60 trillion from the previous Rp1.43 trillion in June 2023.

The growth in credit and financing of the MSME segment has pushed the cumulative increase in the proportion of MSME loans to 10.11% of Bank DKI's total credit and financing for the June 2024 period which was recorded at IDR 53.56 trillion. This was conveyed by the President Director of Bank DKI, Agus H. Widodo in a written statement in Jakarta, Tuesday, July 30.

Agus further conveyed that in the credit expansion strategy, the Company prioritizes lending in quality and prioritizes the principle of prudence. Regulation of credit portfolios oriented to the MSME segment, and strict supervision to ensure optimal asset quality.

"Facing challenging economic conditions, Bank DKI continues to strive to adapt strategies and look for new opportunities, especially in stable and potential sectors to increase value in the long term for all stakeholders," he said.

In addition, Consumer credit and financing for the period of June 2024 grew 9.05 percent to Rp22.83 trillion from the previous Rp20.94 trillion for the period of June 2023. Credit and Secondary financing grew 12.40% to Rp1.89 trillion from the previous Rp1.68 trillion in June 2023.

Meanwhile, Commercial loans and financing (including term loan) for the period of June 2024 grew 1.48 percent to Rp23.41 trillion from the previous Rp23.07 trillion in June 2023, along with a selective commercial loan disbursement strategy to multinational Bonafide companies and Regional Owned Enterprises (BUMD) which is part of the Bank DKI ecosystem, especially companies engaged in the large and retail trade sectors.

These conditions encourage the overall growth in lending and financing of Bank DKI as of June 2024 to reach IDR 53.56 trillion, an increase of 6.88 percent from the previous period which was recorded at IDR 50.11 trillion, as recorded in the Financial Statements of Bank DKI for the period June 2024 (unaudited).

Bank DKI's Director of Finance & Strategy, Romy Wijayanto, explained that Bank DKI's interest income until June 2024 grew by 4.95 percent to Rp2.77 trillion, from Rp2.64 trillion in June 2023. But on the other hand, along with the trend of increasing bank interest rates, Bank DKI's interest expense also increased by 11.53 percent to Rp1.43 trillion in June 2024, from Rp1.29 trillion in June 2023.

"The trend of increasing interest rates is anticipated by Bank DKI with liquidity management strategies, including maintaining quality and credit yields at a healthy level to offset the cost of funds," Romy explained.

Romy also said that in the midst of the high interest rate period (higher for longer), Bank DKI collected Third Party Funds (DPK) for the period of June 2024 reaching Rp65.18 trillion, consisting of Giro of Rp12.48 trillion, Savings of Rp10.99 trillion, and Deposito of Rp41.70 trillion.

For the credit and DPK performance achieved, it made Loan to Deposit Ratio (LDR) increase at 82.16 percent in June 2024, compared to the previous 75.06 percent in June 2023. As for other ratios maintained, ROE at 6.59 percent, ROA to 1.11 percent and Operating Expenses to Operating Revenue (BOPO) stable at 87.02 percent.

For these achievements, until June 2024, Bank DKI's business performance is still in an increasing trend by recording an increase in Bank DKI assets of 0.34% to Rp82.29 trillion in June 2024, from the position of Rp82.00 trillion in June 2023. Consistency in business prospects through business expectations encourages the company to record a positive net profit of Rp338.53 billion.

Bank DKI Corporate Secretary, Arie Rinaldi added that Bank DKI always supports the MSME sector as a form of implementing the Company's Vision and Mission, with the participation of Bank DKI as a People's Business Credit Distribution Bank (KUR). In addition, Bank DKI provides easy access to product and service choices for MSME players in encouraging an increase in business scale through credit and financing of business premises in local government managed markets.

Bank DKI's commitment to supporting the MSME sector is also realized through a joint synergy with Perumda Pasar Jaya, Bank DKI has implemented a market digitization program under the management of Perumda Pasar Jaya, which allows traders and buyers in the market ecosystem, using digital service access through QRIS to pay for buying and selling transactions.

Bank DKI also provides access to payment of contributions and market levies that can be made through JakOne Mobile Bank DKI. The synergy has been realized in a number of markets in Jakarta, such as Santa Market, Grass Market, Kedoya Market, Koja Market, Klender Perumnas, Kebayoran Lama Market, Ciracas Market and Kramat Jati Market.

In addition to efforts to develop a business scale for MSME players through lending and financing, Bank DKI's support for MSMEs has also been realized through a number of CSR programs, including the provision of business support facilities and infrastructure as well as renovations in a number of locations, including under the auspices of the South Jakarta PPKUKM Sub-dept., Rusunawa Nagrak, Pujasera Nyi Ageng Serang, and Mampang Prapatan Hospital.

The Social Responsibility Program (TJSL) of Bank DKI is also distributed to economic empowerment programs for retired Bank DKI families that deserve assistance (PROBOHTERA). So, until June 2024, Bank DKI has distributed the CSR program for MSMEs with a value of IDR 338 million.