Price Still Undervalued, BRI Will Buy Back Shares Of IDR 1.5 Trillion

Illustration-(DOC VOI)

JAKARTA – After the publication of the 2024 first quarter financial report, PT. Bank Rakyat Indonesia (Persero) Tbk (BBRI) will carry out a share buyback with a maximum of IDR 1.5 trillion. As is known, through the Annual General Meeting of Shareholders (AGMS) on March 13, 2023, BRI has obtained shareholder approval to carry out a maximum BBRI share buyback of IDR 1.5 trillion, which is carried out within 18 months of the approval of the buyback through the AGMS. BRI President Director Sunarso said his party was buying back to signal that the Company's condition was much better than what the market perceived. Meanwhile, BRI Finance Director Viviana Dyah Ayu RK, said that the focus of management is to ensure that the Company can grow better and healthier in the long term, although it requires small corrections in short-term travel. "For long-term shareholders, improvements and improvements that we are currently doing should provide higher benefits ”," he said in his statement, Wednesday, May 1. In terms of performance, in the midst of the dynamics of global economic and geopolitical conditions that are full of challenges, BRI was able to record positive profit growth, where until the end of the first quarter of 2024 BRI on a consolidated basis managed to score a profit of IDR 15.98 trillion. Until the end of March 2024, BRI recorded that it had succeeded in disbursing loans amounting to Rp1,308.65 trillion or double-digit growth of 10.89 percent year on year. From the credit distribution, 83.25 percent of them or Rp1,089.41 trillion were credit portfolios for the MSME segment. Meanwhile, the double-digit growth of credit has an impact on the increase in the company's assets, where BRI's assets reached Rp1,989.07 trillion or grew 9.11 percent (yoy). "BRI believes that the company continues to empower the MSME segment to have an impact on national economic resilience, considering that MSMEs play a role in around 97 percent of job creation (work creation) in Indonesia and contribute to GDP around 61 percent,” explained Sunarso.

Sunarso conveyed that with a positive performance foothold in the first three months of 2024, BRI is optimistic that it can continue to grow sustainably by prioritizing the principles of prudential banking, as well as good risk management in the midst of dynamics of global economic and geopolitical conditions that need to be observed. "BRI will focus more on responding to domestic challenges, especially through empowering MSMEs,” concluded Sunarso.