BRI's Performance Is Considered Unique, It Can 'make' The Backbone Of The Micro Business To Become A Jumbo Market Cap

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JAKARTA - As a financial institution entity, PT Bank Rakyat Indonesia Tbk (BRI) is believed to have its own uniqueness and attractiveness in the eyes of market players and global investors.

One of them is related to BRI's business strategy, which makes the Micro, Small and Medium Enterprises (MSME) segment the backbone of its business, even to the ultra micro business (UMi) level.

However, BRI has proven to have contributed greatly to the application of the principles of Environmental, Social, and Governance (Corporate Governance) aka ESG, as an effort to continue to grow in a sustainable manner.

With this business strategy, BRI is considered to be able to boost its market capitalization to reach Rp1,000 trillion by 2025.

"The large MSME market share in Indonesia has been successful and continues to be optimized by BRI. In addition, the implementation of BRI's ESG is also in line with the sustainable finance and inclusiveness ecosystem promoted in the G20 Indonesia Presidency in 2022," said Deputy Minister of SOEs II, Kartika Wirjoatmodjo, in a discussion on Microfinance Outlook 2022, in Jakarta, Wednesday, March 2.

For information, data from the Indonesian Ministry of Cooperatives and SMEs in 2019 stated that at least 65.46 million, or 99.99 percent of the total number of business actors in Indonesia, were MSMEs.

The large portion of this sector has also succeeded in absorbing more than 119.5 million workers, or around 96.92 percent of the total workforce in Indonesia.

"At the global level today, many investors are looking at and considering the implementation of ESG aspects when investing. So I make sure that all programs (BRI work) will always place ESG as one of the key selling factors and key operational factors," said Kartika, who also serves as the President Commissioner of BRI.

He stated that currently BRI's market capitalization position is at Rp670 trillion. With the comprehensive implementation of ESG, in terms of credit, operations and corporate social, Kartika is optimistic that in the next few years a market capitalization figure of up to Rp1,000 trillion is still very realistic for BRI to realize.

"BRI's ability to empower the MSME and Ultra Micro sectors will also be a new nuance for global investors. Moreover, BRI's position as the leader of Holding Ultra Micro with PT Permodalan Nasional Madani (PNM) and PT Pegadaian, I believe will have major implications for social empowerment in the sector. ultra micro," said Kartika.