BRI Microfinance Outlook 2022: BRI Continues Supporting Ultra-Micro Sector for Economic Recovery

Rhea-AI Summary

Bank BRI has reiterated its commitment to the ultra-micro sector in Indonesia during the BRI Microfinance Outlook 2022 event. With 45 million ultra-micro businesses, only 15 million currently access formal financial services. BRI aims to enhance this sector's potential, contributing significantly to the national economy. The Ultra Micro Holding, recently formed, could yield Rp95.9 trillion, strengthening BRI's liquidity. The initiative aligns with G20 2022 themes and aims to integrate data management to improve service delivery, with a target to reach 45 million ultra-micro businesses by 2024.

Positive

• Establishment of the Ultra Micro Holding with a potential of Rp95.9 trillion increases BRI's liquidity.
• Significant contribution of micro-enterprises to Indonesia's workforce (89.04%) and GDP (37.35%).
• Targeting to expand service to 45 million ultra-micro businesses by 2024, enhancing market reach.

Negative

• 30 million ultra-micro businesses currently lack access to formal financial services.

JAKARTA, Indonesia, Feb. 10, 2022 /PRNewswire/ -- Bank BRI (IDX: BBRI), has announced its commitment to support the MSME sector in Indonesia to empower the ultra-micro sector at the BRI Microfinance Outlook 2022 on February 10, 2022. The event was attended by Sri Mulyani, Minister of Finance; Airlangga Hartarto, Coordinating Minister for Economic Affairs; Kartika Wirjoatmodjo, Deputy Minister of State-Owned Enterprises; and Sunarso, President Director of BRI.

Strengthening the MSME, especially the ultra-micro sector, has marked the main discussion at the BRI Microfinance Outlook 2022. There are 45 million ultra-micro businesses in Indonesia, of which 30 million of them still do not receive formal financial services.

The number of micro-enterprises, which account for 98.7% of MSMEs in Indonesia, is the backbone of the national economy as it contributes to the absorption of 89.04% of the workforce and 37.35% of the 2019 GDP.

Therefore, the potential of the ultra-micro sector must be increased. The strong efforts will also reflect the G20 2022 theme, Recover Together, Stronger Together.

"We formed the Ultra Micro Holding with a rights issue process that can be absorbed by Rp95.9 trillion, providing BRI strong liquidity and capital that can grow in an integrated ecosystem," said Sunarso.

Airlangga Hartarto also added that lending to the ultra-micro sector accelerates businesses to 'grade up' and support the stimulus provided by the government.

Meanwhile, Sri Mulyani explained there needs to be an integrated data management. "So good intentions and noble goals must be prepared with a reliable integrated data system that can be accounted for. With better integration, unbankable ultra-micro sector will be reached," said Mulyani.

Kartika Wirjoatmodjo emphasized the importance of data integration as a key factor for targeting accuracy. Not only credit, BRI Group also ensures sustainability for businesses.

Sunarso has confirmed the readiness of the data integration and the Ultra Micro Holding system with strong liquidity and capital to expand into the ultra-micro sector. This is evidenced by the number of Ultra Micro Holding customers as of December 2021 amounting to 25.2 million and is targeting 45 million ultra-micro businesses in 2024.

For information about Bank BRI, visit www.bri.co.id.

 

 

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)

FAQ

What is Bank BRI's commitment to the ultra-micro sector?

Bank BRI is committed to enhancing the ultra-micro sector through initiatives like the Ultra Micro Holding, aiming to support 45 million ultra-micro businesses by 2024.

How does the ultra-micro sector contribute to Indonesia's economy?

The ultra-micro sector contributes to 89.04% of the workforce and 37.35% of Indonesia's GDP, highlighting its economic importance.

What is the potential financial impact of the Ultra Micro Holding for BRI?

The Ultra Micro Holding is projected to provide BRI with Rp95.9 trillion, bolstering its liquidity and capital.

What issues exist in accessing financial services for ultra-micro businesses?

Approximately 30 million out of 45 million ultra-micro businesses in Indonesia do not receive formal financial services.