Sharia Bank Indonesia MSME Financing Increases Rp1 Trillion In Three Months

Bank Syariah Indonesia (Photo: Doc. BSI)

JAKARTA - PT Bank Syariah Indonesia Tbk. (BSI) succeeded in increasing the distribution of financing to the micro, small and medium enterprises (UMKM) sector during the first quarter of 2021 to Rp35.91 trillion.

Deputy President Director I of BSI Ngatari said the realization had increased from the end of December 2020 book which amounted to IDR 34.99 trillion.

"So in three months we managed to increase financing to the MSME sector by around Rp1 trillion," he said in an online performance presentation, Thursday, May 6.

Ngatari added, in terms of the portion of all intermediation functions, financing to the medium and small sector also increased from the previous 22.40 percent to 22.63 percent as of March 2021.

"This is in line with the direction from the government which seeks to increase the portion of financing and credit to the MSME sector," he said.

For information, currently the portion of MSMEs in credit or bank financing is only around 18 percent to 20 percent. In the future, the government has set a target for the MSME sector to get priority at least 30 percent of the total credit extended by banking institutions until 2024.

On this occasion, BSI's performance throughout 2020 was also explained. The bank with the ticker code BRIS successfully collected a net profit of Rp. 742 billion in the first quarter of 2021, up 12.85 percent compared to the same period in 2020 of Rp. 657 billion.

From the business side, Bank Syariah Indonesia has distributed financing amounting to Rp. 159 trillion, or an increase of 14.74 percent in the first quarter of last year with Rp. 138.6 trillion.

Furthermore, BSI also announced the results of the 2020 Annual GMS with six final agenda items, including approval of financial statements, approval of the use of 2020 net income, remuneration of directors, commissioners and 2021 Sharia Supervisory Board.

Then, approval of the appointment of a public accounting firm, approval of changes to the composition of the Sharia Supervisory Board, and approval of amendments to the articles of association.