BBNI - Optimistic to boost KUR distribution up to IDR3 tn

BBNI - Optimistic to boost KUR distribution up to IDR3 tn Bank Negara Indonesia (BBNI) is optimistic that during the Ramadan and Eid moments, or until March 31, 2025, it can disburse microcredit (KUR) totaling up to IDR3 tn. "In relation to the government's target regarding the absorption of KUR by March 2025, BNI remains optimistic about contributing to that expectation," said the General Manager of the Small Business Division of Bank BNI, Sunarna Eka Nugraha, to kontan.co.id. As for the realization of KUR distribution by BNI until February 28, 2025, it amounted to IDR1.69 tn, with a total of 7,500 MSME recipients. Sunarna explained that the priority sectors in the distribution of BNI's KUR are still dominated by the trade sector. In addition, BNI is also focused on increasing the absorption of KUR in productive sectors such as agriculture, processing industry, and services. In order to increase the absorption of KUR, BNI implements various strategies, one of the main strategies undertaken by BNI is through the optimization of the business value chain, selected target market of superior MSMEs in each region, and MSME customers who make BNI their main operational partner. (Source : Kontan) Comment : BBNI's optimistic target demonstrates its commitment to supporting the government's KUR program. This is crucial for boosting the MSME sector, which is a significant driver of the Indonesian economy. The bank strategies are well-defined and targeted. Optimizing the business value chain and focusing on superior MSMEs can improve the efficiency and effectiveness of KUR distribution. Using the existing customer base of MSME's that already use BNI as their main bank, allows for a more streamlined process. Despite the risk and drawbacks, we still like the overall continuous effort from the bank to capture the growth opportunities which could underpinned future growth in the segment. Maintain BUY, GGM-based TP of IDR6,300 (1.3x '25F P/B).