Brilio.net - PT Bank Rakyat Indonesia (Persero) Tbk has succeeded in maintaining the ratio of non-performing loans (NPL). Especially for the Micro, Small and Medium Enterprises (MSME) segment until the end of Quarter II 2024.
BRI President Director Sunarso revealed that BRI's MSME NPL is in the range of 3%, or below the national banking industry's MSME NPL. Previously, the Financial Services Authority (OJK) recorded that the NPL ratio for MSME credit in the national banking industry as of May 2024 was 4.27%, an increase compared to the position in April 2024 which was at the level of 4.26%.
"Not only the micro segment but MSMEs, especially the micro and small ones, whose NPLs are rising. However, BRI's MSME NPL figure of around 3.05% is still better or below the banking industry average of 4.27%. "BRI also has a strategy for managing credit quality in the MSME segment, especially the micro segment," he said, quoted by brilio.net from various sources, Wednesday (31/7).
photo: doc. BRI
Sunarso said, to improve credit quality, the company implemented a strategy in terms of business process improvement. In the future, BRI will continue to grow in MSMEs in a selective manner, namely by tightening its risk acceptance and loan portfolio guidelines.
"And the MSME portfolio is sorted again, looking for which ones can still continue and which ones are having problems," he added.
Second is restructuring in accordance with the principles of following applicable regulations. Then thirdly, if necessary, you will be forced to write off the books, and finally focus on recovery from credits that have been written off. Meanwhile, BRI has adequate reserves, this is reflected in the NPL coverage of 211.60%.
BRI itself is still the bank with the largest MSME credit portfolio in Indonesia. Until the end of June 2024, the Company succeeded in distributing credit to the MSME segment worth IDR 1,095.64 trillion or the equivalent of 81.69% of BRI's total credit distribution.
photo: doc. BRI
"One form of BRI's commitment to supporting national economic growth is by continuing to encourage job creation, especially in the MSME segment through the distribution of quality credit," said Sunarso.
If detailed, BRI's credit distribution to the MSME segment worth IDR 1,095.64 trillion consists of several segments. The micro segment amounted to IDR 623 trillion, the small segment IDR 232.3 trillion, the consumer segment IDR 198.8 trillion and the medium segment IDR 41.5 trillion.
Empowering MSMEs is crucial, considering that MSMEs are the backbone of the Indonesian economy. In terms of numbers, MSMEs account for 99% of all business units.
"As the bank with the largest portfolio in the MSME segment, the NPL in the range of 3% is clear evidence that BRI is able to maintain good credit quality through the application of prudent risk management principles," added Sunarso.