Jakarta. Indonesia's largest banks posted positive results as the country's economy continued its recovery in the post-pandemic era.

State-owned Bank Rakyat Indonesia (BRI) has once again secured its position as the top bank in terms of net profit. BRI recorded a net profit of Rp 60.4 trillion ($3.83 billion) throughout 2023, surging by 17.5 percent on a year-on-year basis. 

BRI distributed loans totaling Rp 1,266.4 trillion last year, reflecting an 11.2 percent year-on-year increase.

BRI's loans were primarily driven by the disbursement of loans to micro, small, and medium enterprises (MSMEs), reaching Rp 1,068.7 trillion, accounting for 84.4 percent of the company's total credit disbursed.

Bank Mandiri, Indonesia's biggest bank by asset, booked a record-high net profit of Rp 55.1 trillion in 2023, reflecting robust growth of 33.7 percent year-on-year, driven by the positive outcomes of its digitalization initiatives.

The state-owned bank disbursed Rp 1,398.1 trillion in credit last year, marking a notable 16.3 percent increase compared to the credit disbursement in the previous year.

"Our financial performance has gained momentum and remained on track, supported by strict adherence to prudential banking regulations, resulting in an improvement in the quality of our assets. We are confident that 2024 has room for growth," Bank Mandiri CEO Darmawan Junaidi said in a news conference in Jakarta on Jan. 31.

Meanwhile, Bank Central Asia (BCA), the largest private bank, announced a net profit of Rp 48.6 trillion for the fiscal year 2023, an increase of 19.4 percent compared to the previous year. The total revenue for the year just fell short of Rp 100 trillion. 

Jahja Setiaatmadja, BCA's President Director, said the bank successfully disbursed Rp 810.4 trillion in credit throughout the year, demonstrating a substantial 13.9 percent year-on-year growth in credit disbursement compared to 2022.

"Supported by robust liquidity, BCA maintains optimism in driving national economic growth through credits in various sectors while adopting prudent measures for 2024," Jahja said in Jakarta.

Meanwhile, state-owned Bank Negara Indonesia (BNI) and its subsidiaries managed to achieve a net profit of Rp 20.9 trillion in 2023, a 14.2 percent increase compared to the same period last year.

BNI's Finance Director, Novita Widya Anggraini, said the growth in net profit was supported by a 6.6 percent year-on-year increase in non-interest income, reaching Rp 21.47 trillion.

Looking ahead, the Financial Services Authority (OJK) has identified three industrial sectors expected to be the driving force behind credit growth in 2024. 

"For 2024, the financial intermediaries, transportation, and services sectors are expected to remain growth drivers in line with the increasing socio-economic activities of the community," Dian Ediana Rae, Executive Director of Banking Supervision at OJK, said recently.

Additionally, two crucial catalysts are expected to significantly boost banking credit growth in 2024. First, housing loans are anticipated to grow due to the government providing value-added tax (PPN) incentives.

Second, credits to micro, small, and medium-sized enterprises (MSMEs), including ultra-micro segments in the garment and food sectors, will play a pivotal role. 

According to OJK's latest data, as of October 2023, banking credit experienced year-on-year growth of 8.99 percent, reaching Rp 6,903 trillion. While this growth is slightly higher than the previous month's 8.96 percent, it signifies a significant decrease compared to the 11.35 percent year-on-year growth recorded at the end of 2022.