JAKARTA - President Director of PT Bank Rakyat Indonesia Tbk (BBRI) Sunarso is aware of the uncertainty of global economic growth due to the high tariff determination by the President of the United States, Donald Trump, which can have an impact on domestic economic growth.
Sunarso said, the Fed or the US central bank is also tightening policies so banks cannot expect a lower interest rate or Fed fund rate (FFR) this year.
"Then apart from that to grow, banks still have to face liquidity challenges. Why? Because globally there was also we couldn't expect much about the decline in the Fed rate," he said at a press conference, Wednesday, February 12.
This liquidity challenge, he said, also came from the high tariff set by the US to China, Mexico, and Canada. According to Sunarso, Indonesia will be flooded with imported goods that can weaken the domestic industry and have the potential to cause many workers to lose their jobs.
Meanwhile, regarding challenges from within the country, Sunarso said that there were significant challenges in reducing inflation in January 2025 which could have a negative impact on MSMEs.
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"This can reduce people's purchasing power and also public consumption. And this has a negative impact on MSMEs. For what reason? The main drivers for loan demand or loan growth, especially in MSMEs, are these two things. Namely purchasing power or people's purchasing power, and also public consumption. If this decreases, demand for credit will also decrease, especially in MSMEs," explained Sunarso.
To overcome these challenges, Sunarso said BRI was quite careful by targeting credit growth in the range of 7 to 9 percent. BRI will also maintain net interest margins (NIM) in the range of 7.3-7.7 percent.
"Then we have to be on guard with guidance about costs of credit of around 3-3.2 percent. If it could be lower than that, it would be better. But for caution, I think we are still budgeting that our cost of credit will be in the range of 3-3.2 percent," explained Sunarso.
BRI will also maintain the ratio of mass or non-performing loans (NPL), especially MSMEs below 3 percent and the cost to income ratio (CIR) is in the range of 42-44 percent.
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