SOE Banks Committed to Tripling Gov’t Liquidity Through Credit Expansion

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 25 Juni 2020
Category: News
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State-owned bank BRI President Director Sunarso delivers his statement to the press at the Presidential Office, Jakarta, Wednesday (24/6). (Photo by: PR/Agung)

Strengthening liquidity facilities at the State-owned Banks Association (Himbara) owns the consequence of having to leverage in the form of credit expansion, especially to drive the real sector, and more specifically the grassroots economy or MSMEs, State-owned bank BRI President Director Sunarso has said to the press at the Presidential Office, Jakarta, Wednesday (24/6).

For this reason, the President Director said that Himbara has committed to growing the government fund threefold within 3 months and specifically in BRI’s expansion plans, it plans to grow, for example, Rp10 trillion into Rp30 trillion.

“We are committed to achieving more than that because we have set our targets. For example, in the MSMEs segment, we have selected the sector, we preferred sector that supports the food sector,” he said.

In addition, Sunarso also explained other focus such as health facilities, medicines, and food. He also added that in terms of regional targets, the majority of BRI aimed at rural areas

“Hopefully this plan can be truly implemented and boost our economic growth again,” he said.

On the occasion, Bank Mandiri President Director Royke Tumilaar expressed his appreciation for the opportunity given by the Government on the placement of relatively inexpensive funds.

“So we have already prepared it after we restructured. The restructuring period started from the end of March to June, we are also ready, Mandiri is ready to expand,” he said.

According to Royke, the expansion will be carried out mainly in areas that have the opportunity to grow, especially in tourism, trade, and other sectors that could become the foundation for MSMEs sector to quickly recover.

BTN President Director Pahala N Mansury also expressed his highest appreciation to the Government. The Bank will focus on the housing sector and also committed to expanding up to 3 times the amount given to it.

“We will hand 40% of the fund on subsidized mortgages, at the same time a second stimulus package is currently underway,” the President Director stated.

On that occasion, Pahala also stated that the Bank was able to distribute approximately 146,000 subsidized houses. He also said that the total estimation of the distributed amounts to Rp18 trillion – Rp20 trillion.

“Furthermore, we will also focus on construction loans that are related to subsidized mortgages as well as non-subsidized mortgages,” he stated, while expressing his confidence in the plan. (TGH/EN)

 

 

Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy

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