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Jakarta Post

BRI to revise up loan growth target

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, May 21, 2018   /   06:57 am
BRI to revise up loan growth target BRI president director Suprajarto (center) speaks at a press conference at BRI headquarters in Jakarta on April 20, along with director Haru Koesmahargyo (right) and former vice president director Sunarso, who is now the president director of state-owned pawn operator Pegadaian. (JP/Anton Hermansyah)

State-owned lender Bank Rakyat Indonesia (BRI) plans to revise up its loan growth target to between 12 percent and 14 percent this year, even though the domestic banking industry has yet to show a significant recovery.

The publicly listed bank projected earlier this year that its loan growth would reach around 9 percent to 12 percent.

“We want to increase our loans by 12 percent to 14 percent this year,” said BRI president director Suprajarto as quoted by at the State-Owned Enterprises Ministry’s headquarter in Jakarta on Friday. 

BRI, the country’s largest micro lender, saw its core business in the micro, small and medium enterprises (MSME) segment improve its loan growth in the first three months of the year.

As of the first quarter, MSME loans grew by 15.4 percent to Rp 584.6 trillion (US$41.36 billion), equal to 77.1 percent of BRI’s total lending portfolio. 

Meanwhile, loans in Indonesia’s banking industry experienced single-digit growth at 8.5 percent year-on-year (yoy) in March, Bank Indonesia (BI) data shows.

Suprajarto said the bank would submit the revision to the Financial Services Authority (OJK) either in June or July, the window set for lenders to recalculate their businesses. (gda)