5 Million Micro Businesses Trapped by Moneylenders, BRI Through Holding UMi Offers Ease of Access to Finance

Photo: Doc. Antara/BRI

JAKARTA - Director of Micro Business BRI Supari conveyed the Holding Ultra Micro (UMi) initiative is the company's innovation to target business actors to be free from moneylenders, especially among the unbanked community. This step can at the same time increase financial inclusion.

Holding Ultra Micro is a synergy between BRI as the holding company with PT Pegadaian and PT Permodalan Nasional Madani (PNM) to realize complete, integrated financial services that meet the needs of business actors.

“Holding UMi targets those who are now on loan sharks because it is inefficient for them to pay interest of up to 500 percent a year. What if we make it easier for them to access formal financial institutions, then they will increase their margins", said Supari in a statement quoted by Antara, Monday, October 24.

Based on research conducted by BRI, there are still 5 million micro-enterprises served by moneylenders with high-interest rates, 7 million micro-enterprises borrowing from family and relatives, and 18 million micro-enterprises that have not been touched by formal finance.

Thus, a total of 30 million business actors will become the target customers of Holding UMi. In the next stage, Holding UMi is projected to be able to serve a total of 45 million customers.

Supari added, there are three quick wins strategies to make the target of Holding UMi customers a success. First, service integration between BRI, Pegadaian, and PNM through the co-location of the Ultra Micro Service Center (SENYUM).

Until August 2022, the integration of the services of the three entities or co-locations through Smile Outlets has reached 1,003 locations or is already greater than the initial target of 978 Smile Outlets locations. Not only that, Mekaar PNM customers who have now joined as BRILink Agents have reached more than 44 thousand.

The second strategy, he continued, is marketers who actively assist and encourage ultra-micro business actors to increase their business scale. Meanwhile, there are 66,000 marketers owned by Holding UMi.

"We are equipped with a digital process business. They are always in their work area, not going to the office, integrated with the business processes of three entities, the name is Smile Mobile", he said.

Smile Mobile is a platform that contains products and services from the three UMi Holding entities and can be sold by 66 thousand of marketers.

Supari continued, the third strategy is that BRI has very large data from three entities, amounting to 25 million, which can be used to increase literacy needs to empower these business actors.

With the solid empowerment of BRI in the ultra-micro, it is also hoped that it will also encourage the acceleration of business actors to advance to class.