Bank Mandiri Targets Agricultural Sector In Bali For Credit Distribution

Bank Mandiri (Photo: Doc. Antara)

JAKARTA - PT Bank Mandiri (Persero) Tbk (BMRI) targets the distribution of credt in the agricultural sector in Bali Province as a form of diversification of the financing market other than the tourism sector.

"We are targeting agricultural credit realization to increase to around 30 percent," said Assistant Vice President of Bank Mandiri Bali and Nusa Tenggara Sony Ardo quoting Antara.

He revealed that the micro credit portfolio in Bali from 2014 to July 2024 reached IDR 2.5 trillion, as much as 20 percent of which was absorbed by the agricultural sector or around IDR 500 billion.

There is also a financing scheme, he continued, namely people's business credit (KUR) with an interest rate of six percent per year.

"So we direct it to productive credit, it can be to industry, trade and agriculture," he added.

Credit to the agricultural sector, he said, is expected to support the composition of credit in Bali so that distribution becomes more evenly distributed.

Banking is currently learning a lot after the COVID-19 pandemic hit Bali and has caused almost all of its economic sectors to die because it relies more on the accommodation, eating and drinking or tourism sector.

Meanwhile, based on data from the Bali Financial Services Authority (OJK) for credit realization, including from BPR in Bali and Nusa Tenggara during the January-May 2024 period, it reached IDR 219.54 trillion or grew 10.69 percent compared to the same period in 2023 which reached IDR 198 trillion.

In terms of its use, 57.90 percent of loans in Bali and Nusa Tenggara are channeled into productive loans, namely 37 percent in the form of working capital loans and 20.2 percent of other investment loans.

Meanwhile, third party funds (DPK) or customer funds collected in that period reached Rp263.38 trillion, an increase of 16.29 percent compared to the same period in 2023 which reached Rp226 trillion.

Troubled credit in Bali and Nusa Tenggara is maintained with a non-performing loan (NPL) ratio of 2.83 percent.