“The crisis mood will continue in 2021 but I am optimistic that BRI’s working performance will be better in 2021 than in 2020. This year [2020], we focused on salvaging MSMEs through restructuring and the government stimulus disbursement, and in 2021 we will drive MSMEs to keep the wheel of the national economy moving,” said BRI’s president director Sunarso when giving a direction to BRI employees in Jakarta on Dec. 30, 2020.

According to Sunarso, MSMEs contribute about 60.3 percent to Indonesia’s gross domestic product (GDP). “Empowering and salvaging MSMEs means salvaging BRI, and salvaging BRI means safeguarding the sustainability of the Indonesian economy,” he asserted.

He said BRI was optimistic about welcoming 2021 despite the lingering uncertain global economic condition brought about by the COVID-19 pandemic.

Sunarso expressed his confidence that the company would have a better working performance in 2020, compared to that in 2020.

As of the third quarter of 2020, BRI had booked a consolidated net profit of Rp 14.15 trillion, with corporate asset growth of 10.89 percent to Rp 1.447 quadrillion. On top of that, BRI successfully channeled Rp 935.35 trillion in loans, of which 80.65 percent was channeled to the MSMEs segment.

Throughout 2020, BRI has also been the government’s strategic partner in relation to disbursing stimulus to accelerate the national economic recovery (PEN). BRI has restructured Rp 218.6 trillion worth of loans to 2.8 million borrowers, channeling MSMEs interest subsidies worth Rp 5.5 trillion to more than 6.6 million recipients, disbursing Rp 116.9 trillion in the microcredit program (KUR) to 4.4 million debtors and Rp 8.5 trillion in the Super Micro KUR to 972,000 MSME players.

Aside from that, BRI has also distributed Rp 18.5 trillion in initial working capital aid for SMEs (Banpres) called Produktif Usaha Mikro (BPUM) to 7.7 small businesses and channeled loans with collateral worth Rp 8.34 trillion to 13,800 MSME players.

BRI’s strategy to focus on safeguarding the performance fundamentals along with disbursing various government stimulus programs has turned out to receive appreciation from investors. At the closing of capital market trade by the end of the year (Dec. 30, 2020), the BBRI stock price closed at Rp 4,170. The figure grew nearly twofold compared to the BRI stock value at the lowest level recorded on May 18, at Rp 2,160. The increase in stock price has caused BRI’s market capitalization to once again penetrate Rp 500 trillion, precisely reaching Rp 514 trillion at the closing price at the bourse in 2020. The achievement has, at the same time, placed BRI as the largest state-owned enterprise (SOEs) in Indonesia in terms of market capitalization.

“This [the performance of the BBRI stock price], which has returned to the price recorded prior to the pandemic, has showed that the public and shareholders responded positively to the strategy and steps that we have taken. The prudent principles and good risk management received a positive response from them. They appreciate sustainability more than booking a profit but with poor risk management. What is more, BRI is very careful when it comes to booking an aggressive profit because we view that the situation remains unsafe, which has prompted us to provide a sufficient buffer,” Sunarso added.

Recognition

BRI received both domestic and international recognition, with more than 70 awards earned throughout 2020. They included Best Issuer for Sustainable Finance and Best Sustainability Bond from The Asset, Top 1000 World Banks: BRI Ranked 1^st in Indonesia from The Banker, Best of The Best Companies 2020 and the 1^st Indonesia’s Largest Public Companies from Forbes Indonesia, The Best Retail Banking in Indonesia from The Asian Banker and The Best MSMEs-Supporting Bank (Buku 3 & 4) from Bank Indonesia.

Apart from that, BRI also successfully won 14 awards at the ESG Awards 2020. The achievements have demonstrated BRI’s excellence in regard to implementing the principles of ESG (Environmental, Social and Governance) in its every business activity. This partly explained why ESG-based investors have increased significantly.  

“BRI welcomes 2021 enthusiastically and optimistically. May the crisis occurring in 2020 be a worthwhile lesson that BRI can learn from, which will make BRI more powerful to face the challenges in the coming years,” Sunarso concluded.

Keywords: BBRI, BRI, Performance 2020, National Economic recovery, PEN, MSMEs

Information on BANK BRI can be accessed through www.bri.co.id.

Aestika Oryza Gunarto

Corporate secretary

Telp. : 021-575-1966

Fax. : 021-570-091

e-mail: humas@bri.co.id

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