BRI: Ultramicro Financing has Become a New Source of Growth

REPUBLIKA.CO.ID, JAKARTA -- Holding Ultra Mikro (UMi) or ultramicro finance SOE holding has proven to be able to expand access to financial services to micro and ultramicro communities in Indonesia. In addition, the presence of UMi Holding which is an integration of PT Bank Rakyat Indonesia (Persero) Tbk or BRI, Pegadaian, and Permodalan Nasional Madani (PNM) has had a positive impact and become a source of new sustainable growth for BRI Group.

BRI President Director Sunarso revealed that Holding UMi has become a new source of growth because BRI has a strategy of encouraging customers to move up the class, enlarge the customer base, and serve the community at the most cost efficient possible.

“We have a journey of empowerment and increased capabilities of UMi customers, namely with three stages of empower, integrate and upgrade,” Sunarso said in a statement quoted Thursday (18/1/2024).

It is known that Holding UMi aims to serve people who do not have access to formal financial services (unbankable) up to 45 million by 2024. The number of debtors of Holding UMi also continues to increase.

As of September 2023, the number of debtors has reached 36.6 million or grew by 22 percent from the September 2021 position. This means that BRI, Pegadaian and PNM will still net 8.4 million new ultra micro debtors until 2024.

Total oustanding of ultra micro holding loans reached Rp 590.7 trillion as of the end of September 2023 or grew 11.6 percent on an annual basis. This figure has increased by 27.38 percent compared to the initial period of the holding formation.

“BRI's microcredit contribution as a holding parent reached Rp 479.9 trillion, or up 10.9 percent on an annual basis with 14.2 million debtors. Of these, Pegadaian's loan portion reached Rp 65.6 trillion, or increased by 17.3 percent with 7.4 million borrowers, PNM financing reached Rp 45.3 trillion, or grew 14.3 percent with 15 million debtors,” he said.

Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo said that today a big challenge is in sight as Indonesia's target of gold 2045 is to increase the number of new workers amid a population surge. Therefore, Kartika considers it necessary to strengthen these three aspects by reaching out to much smaller business operators, even those who have not yet been in the category of credit worthy.

“In the next 10 years, this may still be another 35 to 45 million to go to entrepreneurs who start at the pre Prosperous or pre creditworthy level. It is necessary to provide access to financials, provide striving capabilities, and access to government guarantees. Well, after a few years we got into a lower layer, more less bankable again and small size. So it requires a deeper reach, cheaper costs, and a broader guarantee,” Kartika said.

Ikuti Whatsapp Channel Republika