BRI Boss Happy Rp29 Trillion Rights Issue Purchased By Foreigners: The Fund Strengthens Our Foreign Exchange

JAKARTA - PT Bank Rakyat Indonesia Tbk. (BRI) reported that around US$2 billion or equivalent to Rp29 trillion of the company's rights issue has been absorbed by foreign investors. This amount is part of the total value of BRI's rights issue which reached Rp95.9 trillion.

President Director of BRI Sunarso said this achievement is a separate achievement for the company and also helps the government in strengthening the state's financial structure.

"Funds from foreign investors will strengthen our foreign exchange," he said in a press statement on Wednesday, October 6.

In his explanation, Sunarso revealed that BRI's rights issue experienced an excess of orders or oversubscribed up to 1.53 percent of the total 28.2 billion shares issued.

"This is also driven by the clarity of BRI's vision and strategy going forward with the value proposition of the rights issue, namely strengthening the national ultra-micro business ecosystem with Pegadaian and PNM (National Madani Capital)," he said.

According to him, this reflects BRI's commitment to strengthening core competencies in the micro and SME segments in general.

"Through the ultra micro segment, we are ready to enter a business segment that is smaller than micro or go smaller but with huge economic potential," he said.

Meanwhile, the Ultra Micro BUMN Holding funded by the rights issue, called Sunarso, will contribute to development based on Environmental, Social, and Governance (ESG). It is also claimed that the strategy implemented is increasingly empowering ultra-micro business actors in increasing capabilities, as well as increasing financial literacy and inclusion.

In addition, Sunarso continued, the success of the corporate action could not be separated from the high commitment of stakeholders, especially the Indonesian government and regulators to support the formation of Ultra Micro BUMN Holding.

“I think this is well appreciated by public investors. We carry the spirit that in fact the structure or pillars of the Indonesian economy are still mostly supported by small segments, especially in MSMEs, and especially in the ultra-micro, which we still have a lot to serve," he explained.

Citing data released by the Ministry of Cooperatives, the number of micro-enterprises in Indonesia reached 58 million out of a total of 65 million businesses. Of that figure, only about 20 million businesses have obtained access to funding from formal sources such as banks, rural banks, pawnshops, cooperatives, and other financial institutions.

"We want BRI to return to its core to dominate the micro segment while strengthening financial inclusion in the community," Sunarso concluded.