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Overview of Bank Rakyat Indonesia (BKRKY)
Bank Rakyat Indonesia (BRI), trading under the symbol BKRKY, is a leading financial institution headquartered in Indonesia. Established with a mission to foster financial inclusion, BRI has become a cornerstone of the Indonesian banking industry, particularly through its unwavering focus on serving the Micro, Small, and Medium Enterprise (MSME) sector. With a robust portfolio that spans retail banking, corporate banking, and digital financial services, BRI plays a critical role in empowering Indonesia's economy while addressing the diverse needs of its customers.
Core Business and Revenue Streams
BRI's primary revenue streams are rooted in its extensive credit disbursement to the MSME sector, which constitutes over 80% of its total loan portfolio. This focus on MSMEs is complemented by its fee-based income derived from innovative digital platforms such as BRImo, a mobile banking application that integrates seamless financial services with advanced security features. The bank also generates revenue through its subsidiaries, including Pegadaian and Permodalan Nasional Madani (PNM), which further strengthen its presence in the ultra-micro segment.
Digital Transformation and Innovation
BRI has been at the forefront of digital transformation in Indonesia's banking sector. Its flagship super-app, BRImo, exemplifies its commitment to enhancing customer experience and financial accessibility. With features like multi-currency savings, international remittance management, and cross-border QR payments, BRImo has become a vital tool for both individual customers and MSMEs. The app's integration of advanced technologies, such as biometric security and real-time transaction monitoring, underscores BRI's focus on reliability and innovation.
Sustainability and Social Impact
Aligned with its role as an agent of development, BRI prioritizes sustainability and social responsibility. Its initiatives, such as paperless transactions and hybrid banking through AgenBRILink, contribute to reducing carbon footprints and expanding financial services to underserved rural areas. The bank's Ultra Micro Holding, comprising Pegadaian and PNM, has significantly advanced financial inclusion by serving millions of depositors and borrowers in Indonesia.
Market Position and Competitive Landscape
BRI is recognized as a market leader in MSME financing, with a consistently high net interest margin (NIM) and return on equity (ROE). Its extensive branch network, coupled with a growing digital presence, provides a competitive edge in reaching diverse customer segments. Despite challenges such as asset quality management, BRI's proactive risk mitigation strategies and robust capital reserves position it as a resilient player in the banking industry.
Commitment to Growth and Innovation
BRI's strategic initiatives, including its hybrid banking model and digital transformation efforts, reflect its long-term commitment to sustainable growth. By leveraging its expertise in MSME financing and embracing technological advancements, BRI continues to strengthen its role as a driver of economic empowerment in Indonesia.
With a unique blend of traditional banking expertise and forward-thinking innovation, Bank Rakyat Indonesia (BKRKY) remains a pivotal institution in shaping Indonesia's financial landscape.
PT Bank Rakyat Indonesia (Persero) Tbk reports a significant contribution to financial inclusion in Indonesia through its BRILink service. The number of BRILink Agents exceeded 503,000, facilitating 929 million transactions in 2021. This initiative has generated IDR 1.35 trillion in fee-based income. Additionally, 65.5% of the bank's loan portfolio, totaling IDR 617.8 trillion, now adheres to Environment, Social, Governance (ESG) principles, demonstrating a 12.2% year-over-year increase. The program supports local economies and promotes digital banking access.
PT Bank Rakyat Indonesia (Persero) Tbk. held its Annual General Meeting of Shareholders on March 1, 2022, where it announced a dividend distribution of 85%, equating to IDR 26.40 trillion. This results in a per-share dividend of approximately IDR 174.23, a significant increase of 76.17% from 2020. The bank retains 15% of net income as retained earnings, maintaining a capital adequacy ratio of a minimum of 20%. Additionally, the bank approved a IDR 3 trillion share buyback aimed at boosting employee share ownership and enhancing company performance.
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.
PT. Bank Rakyat Indonesia (Persero) Tbk reported a significant profit of Rp.32.22 trillion for Q4 2021, marking a 75.53% year-on-year growth. This success is attributed to strong credit performance, improved collection of Third Party Funds, and reduced interest costs. Lending for 2021 grew 7.16% YoY, especially in the micro segment at 12.98%. BRI maintains a low Non-Performing Loan ratio at 3.08% with robust coverage. The bank also emphasizes sustainable finance, with 65.5% of total credit directed towards sustainable activities.
Bank Rakyat Indonesia (BRI) is hosting the UMKM EXPO(RT) BRILIANPRENEUR from December 9-16, 2021, in a fully digital format. The event will showcase 500 curated MSMEs and aims for a transaction target of US$65M. BRI's initiatives include workshops and online training to support MSMEs in digital expansion. The expo features awards for businesses demonstrating potential in digital readiness, and showcases Indonesian tourism through thematic areas. Visitors can engage with experts via live-streamed talks.
PT Bank Rakyat Indonesia (BRI) hosted the UMKM EXPO(RT) BRILIANPRENEUR 2021 from December 1-16, showcasing over 500 Micro, Small, and Medium Enterprises (MSMEs) in a virtual 3D exhibition aimed at reviving Indonesia's economy post-pandemic. The event included training sessions, business matching with 105 buyers from 30 countries, and opportunities for MSMEs to enhance their global competitiveness. BRI promotes local products through discussions on global marketing and legal export issues. BRI customers can access discounts on purchases made through associated platforms until December 31, 2021.
PT Bank Rakyat Indonesia (Persero) Tbk has successfully raised IDR 95.9 trillion from a rights issue of IDR 28.2 billion for the establishment of an Ultra Micro Holding, achieving the largest rights issue in Southeast Asia and ranked third in Asia. The rights issue was oversubscribed, reflecting strong investor confidence. BRI aims to support ultra-micro enterprises, contributing positively to Indonesia's economy, which heavily relies on micro, small, and medium enterprises (MSMEs). Stakeholders maintain over 40% ownership, affirming their trust in BRI's vision for financial inclusion and growth.
On July 10, 2021, PT Bank Rakyat Indonesia (BRI) launched its floating bank, the Teras BRI Bahtera Seva III, to assist in the COVID-19 vaccination efforts in the South Halmahera Regency, North Maluku. This initiative aims to enhance vaccination access in remote areas, supporting Indonesia's goal of achieving herd immunity. BRI's Vice President Director emphasized the importance of vaccinations in overcoming the pandemic, while the Minister of State-Owned Enterprises lauded state-owned companies for their role in pandemic response. BRI plans to extend vaccination services to other islands, showcasing its commitment to community welfare.
PT Bank Rakyat Indonesia (BRI) has been recognized in the Forbes 2021 Global 2000 as the most valuable public company in Indonesia, ranking 362nd overall. This marks BRI's seventh consecutive year on the list, highlighting its significant focus on micro, small, and medium enterprises (MSMEs). Despite the adverse effects of the COVID-19 pandemic, BRI reported revenues of USD 10 billion, assets of USD 107.6 billion, and profits of USD 1.3 billion. This achievement reflects BRI's robust business model and commitment to supporting the national economy.
On April 28, 2021, BRI Research Institute, in collaboration with Indonesia's largest MSMEs bank, Bank BRI, hosted the BRI Microfinance Outlook 2021 event. The initiative aims to bolster micro, small, and medium enterprises (MSMEs) amid economic challenges, highlighting their significant contribution of over 62% to Indonesia's GDP, approximately IDR 8,000 trillion. Key officials emphasized the necessity of collaboration and innovation in empowering MSMEs, alongside the introduction of digital platforms to enhance access to funding and services. BRI aims to continue leading MSME support, enabling sustainable economic growth.
FAQ
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