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Jakarta Post

BRI haunted by bad debt

  • Riska Rahman

    The Jakarta Post

Jakarta   /   Thu, September 17, 2020   /  05:03 pm
The Jakarta Post Image
A customer makes a transaction at a Bank Rakyat Indonesia (BRI) ATM in Jakarta.( Siswono Toyudho )

State-owned Bank Rakyat Indonesia (BRI) expects only about 85 percent of its restructured loans to be repaid according to their terms once the COVID-19 pandemic has subsided. The country’s largest bank by asset value has predicted that the recipients of about 7 to 15 percent of its restructured loans will struggle to repay their obligations as a result of the pandemic’s widespread effect on cash flow and revenue. The situation could lead to a decrease in the bank’s loan quality. As of August, the bank had restructured Rp 189 trillion (US$12.69 trillion) in loans to 2.9 million borrowers through deferred principal repayment or interest rate discounts, finance director Haru Koesmahargyo said on Tuesday. “We also expect that about 1 percent of our restructured loans will turn into non-performing loans [NPL] given the current situation,” he said during ...