JAKARTA (TheInsiderStories) – Four state-owned lenders revised down this year target’ loan growth to single digit growth caused the impact of COVID-19. PT Bank Mandiri Tbk (IDX: BMRI), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), and PT Bank Negara Indonesia Tbk (IDX: BBNI) lowering the loans growth to around 5 percent in this year.
While, PT Bank Tabungan Negara Tbk (IDX: BBTN) 2-4 percent. Recently, the Financial Services Authority has revised the 2020′ national banking lending rate a maximum of 4 percent.
CEO of Bank Rakyat Indonesia, Sunarso, said in the virtual conference on Wednesday (08/19), total outstanding loans of the lender worth of Rp886.91 trillion (US$60.33 billion) in the first half (1H) of 2020 or down 1.07 percent from the same period of last year Rp877.44 trillion.
The consolidated net profit also dropped 36.88 percent to Rp10.18 trillion from 1H of 2019 of Rp16.16 trillion. In the same day, CEO of Bank Mandiri, Royke Tumilaar, estimates that credit growth will only be around 1 -2 percent in this year amid the projections of negative economic growth.
In the 1H of this year, total credit of the largest bank in term assets, grew 4.38 percent from Rp835.1 trillion to Rp871.7 trillion. Total consolidated net profit worth of Rp10.29 trillion, or a 23.95 percent dropped from the first semester of 2019, which was recorded Rp13.53 trillion.
Other state lender, Bank Negara Indonesia also estimated the loans growth only rises around 4 percent in this year, said the CEO, Herry Sidharta. While, CEO of Bank Tabungan Negara, Pahala Mansury, said he would change the bank’ credit growth target between 2 – 3 from the previous target of 9.5 percent.
Currently, Indonesian government as the major shareholders has injected Rp30 trillion in funds in the state banks to support the loans growth and recover the domestic economy. The lenders has an obligation to distributes the fresh funding to various sectors to drive the economy was harmed by the virus outbreak.
According to Law Number 2 of 2020 concerning on State Financial Policy and Financial System Stability for Handling the COVID-19 and finance ministerial decree Number 70 of 2020 regarding the placement of state money in commercial banks, minister of finance will forge the government fund to the state-owned banks in the context of accelerating economic recovery.
Commenting on the policy, chairman of HIMBARA, Sunarso asserted, will triple the funds in the next three months. His offie will distributes the funds for micro, small and medium enterprises (MSMEs) also for health facility distribution.
While, Tumilaar stated, one of the largest bank in the country will lend to tourism and trade sectors. Then, Sidharta said his bank will distributes the funds for labor intensive and the economic sector that can provide stimulants for economic growth.
And, Mansury added, will focus on subsidized Housing Credit with potential worth up to Rp20 trillion and construction sectors. Indrawati concluded, the government will continue to see all the policies instruments to recover the health sector and community activities back to business.
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