BRI Distributes Rp199.83 Trillion Loans In The Agriculture Sector

Illustration (Photo: Doc Antara)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk (BRI) reported that until the end of September 2024, BRI (bank only) had succeeded in disbursing loans of IDR 199.83 trillion to the agricultural, forestry and agricultural sectors.

BRI President Director Sunarso explained that the agricultural sector plays an important role in maintaining Indonesia's economic stability.

"We understand that the agricultural sector is not only the backbone of the national economy, but also the key in ensuring food security for the community. Therefore, we continue to expand access to financing for actors in this sector, including farmers, MSMEs, and other agribusiness actors," said Sunarso, Thursday, December 5.

Sunarso explained that the loans disbursed by BRI cover various agricultural sub-sectors, ranging from food crops, horticulture, plantations, to livestock and fisheries.

The approach taken by BRI is not only focused on distributing funds, but also includes empowering farmers through mentoring, training, and digitizing programs in the agricultural sector.

Sunarso revealed that BRI will continue to be committed to supporting food security, because through food security Indonesia can escape the middle income trap.

"Based on the Bappenas study, Indonesia is expected to get out of the middle income class trap in 2041 if the average economic growth assumption is at least 6 percent met," said Sunarso.

To get out of the middle income trap, according to Sunarso, Indonesia's per capita income must be above 4,465 US dollars (source: World Bank).

Related to this, Sunarso revealed in BRI's study that the factor that determines economic growth the most is investment in human capital or economic value from the experience and skills of workers.

The formation of human capital also needs to be driven by three factors.

First, Indonesia must focus on maximizing the nutritional and food needs.

"So it is important, we focus on having a special, specific, and visionary strategy for food security issues," said Sunarso.

Second, the state has a duty to prosper the people and this will support economic growth. Sunarso said that the best way to prosper the people is to give them jobs.

"So everyone at productive age really has to work. If so, equalizing job opportunities is important," he explained.

Third, is inclusive economic growth. To get equal work opportunities, inclusive economic growth is needed, in which there are also elements of equitable distribution and community participation to grow and develop.

"An important investment is human capital, and if you want to improve human capital, first fix nutrition and food. And then we wait, for equity, growth inclusiveness is needed," said Sunarso.