JAKARTA, Indonesia, Sept. 21, 2021 /PRNewswire/ -- PT Bank Rakyat Indonesia (Persero) Tbk (IDX:BBRI) ("BRI") has recently launched a rights issue with a transaction target of up to IDR 96 trillion in connection with the establishment of BRI as an ultra-micro holding company and the acquisition of PT Pegadaian (Persero) and PT Permodalan Nasional Madani (Persero).
Chief Financial Officer of BRI, Viviana Dyah Ayu
Chief Financial Officer of BRI, Viviana Dyah Ayu, said "We have long believed that our shareholders will benefit from the economic and social value represented by this corporate action. We have created an ecosystem to support the enormous growth of Indonesia's digital economy, providing equitable access to finance in the ultra-micro sector. This also helps to create new jobs, preserving the ultra-micro sector as the backbone of national economic growth."
According to a data by the Ministry of Cooperative and SMEs, the ultra-micro segment comprised approximately 65 million micro business units in 2019, representing 99% of total businesses in Indonesia.
BRI estimates that out of 45 million ultra-micro businesses across Indonesia in 2019, there were only around 20 million businesses that have had access to funding from formal sources such as financial institutions. Around 12 million ultra-micro businesses get access to funding from informal sources such as family, relatives and other informal institutions. Meanwhile, around 14 million ultra-micro businesses do not have access to funding at all.
The limited access to funding for ultra-micro businesses is caused by, among other things, the unequal service coverage from the formal financial institutions' work units. The role of financial agents is not yet optimized to provide financial services to this segment due to the low financial literacy in the ultra-micro segment to access financial services digitally.
"As we see a huge potential in the ultra-micro segment, BRI is optimistic that the new business model created by the establishment of an ultra-micro holding company will lead to a long-term and sustainable business growth. Moreover, operating in the ultra-micro segment reinforces our company's core competence in the micro and small business sectors. The establishment of BRI as an ultra-micro holding company is expected to contribute to BRI's vision of becoming "The Most Valuable Banking Group in Southeast Asia" and "Champion of Financial Inclusion" by 2025," concluded Vivi.
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