BRI Supports Government Plans To Remove MSME Traffic Credit

JAKARTA PT Bank Rakyat Indonesia Tbk. (BRI) fully supports the government's plan to abolish bad credit from micro, small and medium enterprises (MSMEs). This firmness was conveyed directly by the President Director of BRI Sunarso.

According to him, the MSME segment, especially micro and ultramicro, still has a great opportunity in financing.

"So you need policies like the government's plan, so it will increase the cruising power and consumption of MSME loans in the future. We have been fighting for this (delete books and delete collections) for a long time, so we welcome the plan," he said in a written statement on Wednesday, July 19.

Sunarso explained that currently the contribution of MSMEs to GDP is around 60 percent and absorbs 96 percent of the national workforce. On that basis, support by providing funding to MSMEs will boost the wheels of the Indonesian economy.

This discourse can help the MSME segment more dare to access funding. This will encourage credit growth projected by the government to be able to boost the wheels of the economy at the level of grassroots economic actors," he said.

As is known, President Joko Widodo will write off MSME traffic jams. This has been stated in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK).

It seems that it is necessary to add kelincah to grow credit in MSMEs. It means that historical problems that still have problematic credit in MSMEs, we have to solve them. It may be a policy," continued Sunarso.

For information, BRI until the first quarter of 2023 BRI recorded credit growth in the MSME sector of 9.6 percent year on year (yoy) with a nominal value of IDR 9989.6 trillion. This amount takes a portion of 83.86 percent of the company's total credit.

Meanwhile, the main motorbike for BRI credit growth is the micro segment which reaches 11.18 percent yoy. BRI itself targets the portion of MSME loans to continue to grow to reach around 85 percent of the company's total credit portfolio by 2024.