JAKARTA, Feb. 19 (Xinhua) -- Indonesian largest bank by asset, PT Bank Rakyat Indonesia, expects to log a higher loan growth this year which will be supported by the government's rules and accommodating fiscal policies.
President Director of PT Bank Rakyat Indonesia Sunarso insisted that the loan expands by 10 to 12 percent this year, higher than 8.44 percent last year, media reported on Wednesday.
So that the net profit is estimated to grow by 11 percent in 2020, compared with 6.15 percent in 2019, the director noted.
The government's plan to apply omnibus laws to replace overlapping regulations in a bid to lure investment, and accommodating fiscal policies to help boost business activities which will accelerate loan growth, Sunarso said.
Besides, the stimulus on economy and banks' liquidity from the country's central bank, Bank Indonesia, would also factor, he said.
"The omnibus laws and accommodating fiscal policies as well as pro-growth policies from the central bank will most likely help boost the performance of the state-owned PT Bank Rakyat Indonesia, Sunarso said.
Responding to the recurrent global economic uncertainty, the director said that the management of the firm has been tough in facing such situation and has prepared various strategies.
"We have frequently faced the volatile conditions, making our risk management became strong in facing such a problem," he said.
PT Bank Rakyat Indonesia logged a net profit of 34.41 trillion rupiahs (some 2.53 billion U.S. dollars) last year with an asset valued at 1,418.95 trillion rupiahs (some 104.14 billion U.S. dollars), it said.
Bank Indonesia had aggressively ratcheted down its benchmark interest rate by 100 basis points last year and cut reserve requirement for banks in a bid to help shore up loan disbursement.
Indonesia is home to about 267 million people, and most of them belong to the growing small and medium income groups.
