Forming Synergy, BRI's Businesses Driven From, By And For The Indonesia Micro Segments

JAKARTA,Indonesia,Sept. 23,2021 -- Following the creation of Ultra-Micro (UMi) Holding company,PT Bank Rakyat Indonesia (Persero) Tbk (IDX:BBRI) ("BRI")is strengthening its efforts in the ultra-micro sector. With PT Pegadaian (Persero) and PT Permodalan Nasional Madani (Persero) or PNM,the synergy has reinforced BRI's sustainable growth,particularly among stakeholders to emphasise value creation specifically for grass root economy.

SENYUM,Ultra Micro Service Center - BRI,Pegadaian,and PNM Co-location

The synergy formation in the ultra-micro ecosystem will strengthen BRI's sources of sustainable growth providing greater value to stakeholders,especially to BRI shareholders. Future BRI shareholders will be encouraged by retail shareholders,especially those from MSMEs,and BRI employees to strengthen business growth originating and managed by the ecosystem in the micro segment providing added value.

The increase in BBRI's share ownership by all employees is vital to increase employee engagement to advance the company. Meanwhile,ownership (shares) by MSME actors create customer loyalty through consistent empowerment of Indonesian businesses. BRI's focus and strength in the Micro segment is backed by capital market observer and Founder of Indonesia Superstocks Community Edhi Pranasidhi and Senior Faculty of the Indonesian Banking Development Institute (LPPI) Trioksa Siahaan.

"Given the promising potential of this segment,the synergy will add more value to the investors as micro sectors proved to be highly resilient during the pandemic," Edhi Pranasidhi said.

Following the establishment of UMi Holding,BRI,PNM,and Pegadaian will provide comprehensive financing services,particularly to ultra-micro customers without access to formal financing. Highlighting the strength of each entity,UMi Holding will create an equal access to savings,payments,and investments for micro and ultra-micro businesses.

"The synergy will potentially increase our economic growth by 0.2%-0.3%,while improving financial inclusion and literacy in Indonesia," added Pranasadhi.

In June 2021,the total amount of BRI's microloans was 39.44 percent of all loans. As a result of the synergy from the establishment of the Umi Holding,BRI is anticipating that the total amount of its micro loans will reach at least 45% of its total loan portfolio by 2025.

Trioksa Siahaan,said,"With the wider market base and potentials in micro-business sector,BRI is putting more emphasis on cross-selling and potential uses of database approaches."

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