BRI Targets 9 Percent Credit Growth In 2025

President Director of BRI Sunarso (Photo: BRI)

JAKARTA - PT Bank Rakyat Indonesia (Persero) Tbk or BBRI targets credit growth of 7 to 9 percent by 2025.

BRI President Director, Sunarso said, this target is quite prudent considering the challenges that come from within the country in the form of a decrease in inflation in January which can reduce purchasing power so that it has an impact on MSMEs.

"We are quite prudent if we target credit growth in the range of 7-9 percent," he said, Wednesday, February 12.

Sunarso also said that BRI will maintain a net interest margin (NIM) in the range of 7.3-7.7 percent.

"And then we are still especially in MSMEs still facing issues related to credit quality. So then we have to be on guard with guidance about costs of credit of around 3-3.2 percent," explained Sunarso.

He added that banks will also maintain the ratio of non-performing loans, especially in MSMEs, below 3 percent. No less important, he said, BRI also maintains the cost to income ratio (CIR) in order to achieve optimal profitability in the range of 41 percent to 43 percent this year.

"So we have worked more productively using digital instruments and others. We suppress our operational costs, then we increase our productivity. So we hope that our cost to income ratio is in the range of 42-44 percent," he said.

Just so you know, throughout 2024 BRI recorded credit disbursement of Rp1,354.64 trillion or grew 6.97 percent yoy and all loan segments recorded positive growth.

BRI's credit distribution is dominated by the MSME segment with a portion reaching 81.97 percent compared to BRI's total credit, or with a nominal value of Rp1,110.37 trillion," added Sunarso.

The growth in lending was also followed by improvements in credit quality with a decrease in NPL from 2.95 percent at the end of December 2023 to 2.78 percent at the end of December 2024. In addition, BRI is also preparing sufficient reserves with NPL Coverage of 215.01 percent.