Bank Rakyat Indonesia (Persero) Tbk, also known as BRI, has disbursed credit worth Rp1,038.90 trillion to micro, small, and medium enterprises (MSMEs) in the third quarter of 2023, growing by 11.01 percent year on year (yoy).
“Specifically, the credit disbursement to MSMEs grew by 11.01 percent, compared to Rp935.86 trillion in the third quarter of the previous year,” said BRI President Director Sunarso during a virtual press conference in Jakarta on Wednesday.
Sunarso stated that the credit for MSMEs accounted for 83.06 percent of the total credit provided by BRI, bringing the total credit disbursed by BRI to Rp1,250.72 trillion in the third quarter of 2023.
This credit growth has had a positive impact on the interest income, with BRI’s interest income reaching Rp138.63 trillion, an increase of 13.91 percent.
“The success in disbursing credit is also accompanied by a strengthening of aspects related to the implementation of environmental, social, and governance (ESG) factors in the company’s business activities,” he added.
Until September 2023, ESG-based credits grew by 11.89 percent to Rp750.91 trillion, representing 66.1 percent of the total credit portfolio.
“These figures demonstrate BRI’s increasing strength as the bank with the largest sustainable credit portfolio in Indonesia,” Sunarso noted.
BRI’s success in credit disbursement is also supported by good risk management. This is reflected in BRI’s non-performing loan (NPL) rate, which stood at 3.07 percent, an improvement compared to the 3.09 percent in the third quarter of 2022.
Additionally, the company has been able to reduce the loan at risk (LAR). As of September 2023, BRI’s LAR stood at 13.80 percent, down from 18.68 percent in September 2022.
“We are optimistic that next year, BRI’s loan at risk will return to pre-pandemic levels, between 9 to 11 percent,” Sunarso stated.
He also mentioned that efforts to maintain credit quality have had a positive impact on BRI’s cost of credit, which has improved to 2.44 percent in the third quarter of 2023, compared to 3.02 percent in the third quarter of 2022.
BRI has also maintained sufficient reserves, with the NPL coverage ratio standing at 228.65 percent as of September 2023.
