The role of the banking sector in driving Indonesia’s economic growth is increasingly significant, primarily through providing credit to various sectors. However, credit can become a legal problem if not managed properly.
“Credit can be problematic if there is a party questioning it,” said Erna Sari, Vice President of PT Bank Mandiri Tbk, while presenting a guest lecture for the Master of Business Administration (MBA) at the SBM ITB on Saturday (27/7).
In the class, Erna shared insights on the importance of credit regulation and policies in the banking sector. She emphasized the importance of accurate analysis in the credit-granting process. She also highlighted the importance of prudence and risk diversification to prevent banks from being dependent on one particular high-risk sector.
Bank Mandiri, said Erna, has been conducting a comprehensive financial analysis to determine customer credibility. This process involves assessing financial statements, financial ratios, business prospects, business performance, and the debtor’s ability to pay.
“This analysis is important to ensure that the credit provided can be returned on time,” explained Erna.
Risk analysis is also applied in the People’s Business Credit (KUR) program, which is designed to facilitate credit access for MSMEs with interest subsidized by the government. Banks continue to carry out strict risk assessments, including assessing business experience and financial reports.
“This program helps MSMEs obtain financing with a lower interest burden,” she said.
Now, said Erna, banking is also facing challenges, such as the potential misuse of credit funds for online gambling. Banks carry out micro-credit supervision to anticipate this risk, which involves close monitoring by local employees.
Micro-credit is often subject to higher interest rates than other credits as compensation for the greater risk associated with uncertainty in the repayment of funds. This risk is exacerbated by factors such as misuse of funds for online gambling, which can affect the customer’s ability to repay the loan.
Erna invited students to continue to innovate and conduct research in the banking sector. She encouraged the younger generation to actively contribute to developing this sector, which is the backbone of the national economy.
“The banking sector is always interesting because the exact and accurate data, uploaded by OJK periodically, makes it easy to analyze,” he said.
