BRI Readies to Expand Financial Portfolio as Indonesia's Minister of State-Owned Enterprises Promotes Sustainable Financing at AIPF 2023

Rhea-AI Summary

BRI supports sustainable financing and MSMEs at AIPF 2023, with 67.2% of credit portfolio as ESG-based loans. BRI issued IDR 5 trillion Green Bond for renewable energy projects. BRI embraces digital transformation and expands into ultra-micro segment.

Positive

• BRI's commitment to sustainable financing and green infrastructure strengthens its position as Indonesia's foremost sustainable bank.
• ESG-based loans constitute 67.2% of BRI's credit portfolio, amounting to IDR 732.3 trillion.
• BRI issued IDR 5 trillion Green Bond for renewable energy projects, supporting UN's Sustainable Development Goals.

Negative

• None.

JAKARTA, Indonesia, Sept. 6, 2023 /PRNewswire/ -- PT Bank Rakyat Indonesia (BRI) Persero Tbk. (IDX: BBRI) is actively supporting initiatives at the ASEAN Indo-Pacific Forum (AIPF) 2023 by promoting sustainable financing and aiding Micro, Small, and Medium Enterprises (MSMEs). Joko Widodo, President of Indonesia, in his speech at the event held on 5-6 September 2023 in Jakarta, Indonesia, emphasized ASEAN's economic resilience amidst global challenges and highlighted the region's growth that surpasses global and regional rates.

"Through this forum, Indonesia is striving to promote sustainable regional development. Three key issues have been addressed: green infrastructure and supply chains, digital transformation, and the creative economy, as well as sustainable financing," stated Erick Thohir, Indonesia's Minister of State-Owned Enterprises.

BRI's President Director, Sunarso, revealed that BRI has embraced digital transformation as a strategy to create innovative financial products and services. He emphasized, "We are continuously exploring new opportunities, including expanding further into the ultra-micro segment."

In 2021, the creation of the Ultra-Micro (UMi) Holding, in partnership with PT Pegadaian and PT Permodalan Nasional Madani (PNM), substantially broadened financing horizons. Since its establishment, this has provided loans to more than 36.1 million micro and ultra-micro businesses.

BRI's commitment to the AIPF's green infrastructure agenda is evident through its substantial ESG-based loans, which constitute 67.2% of its credit portfolio, amounting to IDR 732.3 trillion as of Q2 2023. This accomplishment solidifies BRI's position as Indonesia's foremost sustainable bank, with the country's largest sustainable finance portfolio. Therefore, highlighting BRI's commitment to enhancing sustainable financial practices as a core strategy for continuous growth, with a notable focus on empowering MSMEs driving its ESG credit expansion.

In 2022, BRI issued a Green Bond worth IDR 5 trillion, with a portion of the funds allocated to renewable energy projects, supporting the United Nations' Sustainable Development Goals number 7 (Affordable and Clean Energy) and number 13 (Climate Action). On the operational front, BRI has incorporated electric vehicles into its operations, including 97 electric cars and 50 electric motorcycles for office use. BRI has also established public electric vehicle charging stations within the BRI Central Office premises. Additionally, 12 BRI branches have adopted solar panels as an alternative power source.

For more information about BRI visit www.bri.co.id.

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SOURCE PT Bank Rakyat Indonesia Tbk (BRI)