PT Bank Rakyat Indonesia (Persero) Tbk is confident that it can achieve credit growth of 12% annually or year on year (yoy) this year, even though Bank Indonesia (BI) decided to raise the benchmark interest rate or BI Rate to 6.25% in April 2024.
“BRI is optimistic that credit growth can be achieved according to the target, namely in the range of 10-12% yoy,” said BRI President Director Sunarso in an official statement quoted on Saturday (27/4).
Sunarso assessed that the increase in the BI Rate would not have a significant impact on BRI’s liquidity in general. As is known, until the end of the first quarter of 2024, the bank’s loan to deposit ratio (LDR) at the end of March 2024 was 83.28%. Then in terms of capital, BRI is able to maintain a strong capital ratio with a Capital Adequacy Ratio (CAR) of 23.97%.
“Currently we don’t have any liquidity issues because it’s still loose. “We will continue to maintain healthy liquidity and maintain double-digit credit growth,” he stressed.
Apart from that, BRI’s confidence in targeting credit growth of 12% throughout this year is also based on credit distribution which has grown by double digits in the first quarter of 2024, reaching 10.89% yoy.
From this credit distribution, BRI is able to maintain the quality of the credit it distributes. Until the end of the first quarter of 2024, the state-owned company’s non-performing loan (NPL) ratio was recorded at around 3.11% with the loan at risk (LAR) ratio improving, from 16.39% in the first quarter of 2023 to 12. 70% at the end of the first quarter of 2024.
Also read: BRI Predicts an Era of Low Interest Rates After Semester I 2024
Sunarso added that BI’s increase in interest rates was a logical and rational decision amidst global economic challenges.
“We will follow BI policy. “The challenging global and domestic situation ultimately forces industry players to respond well and wisely,” he concluded.
(Z-9)
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