PT Bank Rakyat Indonesia (Persero) assessed that the main problem in credit distribution is in household consumption capacity, rather than the benchmark interest rate. This is known by the company based on internal research.
“This is based on internal research and econometric model calculations, where the most sensitive variables or those with the highest elasticity that influence credit growth are household consumption and people’s purchasing power,” said BRI Corporate Secretary Agustya Hendy Bernadi to Media Indonesia, Friday (20/9).
The bank whose credit distribution is dominated by the MSME segment is still recording positive performance. Until the end of the second quarter of 2024, BRI noted that the portion of credit distribution to MSMEs still dominated BRI’s credit portfolio, namely 81.96% of the total credit distributed.
The portion of credit to the MSME segment is equivalent to IDR1,095.64 trillion. Overall, BRI has distributed credit of IDR1,336.78 trillion or grew 11.2% annually (year on year/yoy).
“BRI is optimistic that this year’s credit growth can reach 10-12%. The strategy is that BRI will remain focused on MSMEs, with a go smaller strategy, namely entering the ultra micro segment,” said Hendy.
“Therefore, we also make UMi Holding a new source of growth. In addition, BRI will also continue to distribute credit selectively (selective growth) and monitor loans strictly, both online and offline,” he concluded. (Mir/M-4)
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