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, 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.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE 
UNITED STATES, CANADA OR JAPAN.

SOURCE:  PT Bank Rakyat Indonesia Tbk (BRI)


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   Caption: Chief Financial Officer of BRI, Viviana Dyah Ayu