BRI revises down lending target

JAKARTA: State-run Bank Rakyat Indonesia (BRI), the country's fourth-largest bank, plans to expand loan growth by 20 percent next year, lower than this year's target of 25 percent.

BRI Director Gayatri Rawit Anggraeni said on Monday that the target was set due to higher inflation and interest rates that would slow down the country's economic growth until next year's third quarter.

"Tight competition with other banks, which have started to lend more to micro-, small- and medium-scale enterprises (MSMEs), has impacted on BRI's market share," Gayatri said.

However, she was optimistic the bank's scale and experience would allow it stay competitive next year.

She said the bank would continue to focus on giving 80 percent of its loans to MSMEs, while the rest would be allocated to the corporate and consumer sectors. -- Antara