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Supporting AIPF 2023, BRI Boosts MSMEs Financing & Empowerment
The upcoming flagship event, ASEAN Indo Pacific Forum (AIPF), to be held on September 5 – 6, 2023, in Jakarta, will discuss priority issues, one of which is sustainable finance in Indonesia.
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he upcoming flagship event, ASEAN Indo Pacific Forum (AIPF), to be held on September 5 – 6, 2023, in Jakarta, will discuss priority issues, one of which is sustainable finance in Indonesia. PT Bank Rakyat Indonesia (Persero) Tbk is the largest bank in Indonesia, focusing on increasing financing for Micro, Small, and Medium Enterprises (MSMEs), especially in the Micro segment, and building sustainable financing through empowerment and the "MSME Upgrading" method.
This was conveyed by BRI's President Director, Sunarso, who stated that they are continuously promoting the disbursement of credit to MSMEs. By the end of the second quarter of 2023, BRI had successfully disbursed credits and financing worth Rp1.202.13 trillion, with the main driver of growth being the micro segment, which grew by 11.41% year on year. The double-digit growth in microcredit disbursement has led to an increasing proportion of MSME credits within BRI. This marks the first time that MSME credits have surpassed Rp1,000 trillion, and BRI is committed to further increasing the share of MSME credits to 85% by 2024.
"As of June 2023, the proportion of MSME credits within BRI stands at 84.48% of the total BRI credit. In terms of value, the total credit amount to MSMEs reaches Rp1,015.54 trillion, demonstrating our unwavering focus on MSMEs," Sunarso stated.
In addition to providing access to financing for MSMEs, BRI also implements empowerment programs, including the "BRILian Village," "My Cluster, My Life" program, and training programs at the State-Owned Enterprises' Houses, with the aim of helping MSME entrepreneurs elevate their businesses.
Sunarso provided an example of the "BRILian Village" program, where BRI has empowered 2,449 adopted villages across Indonesia. These villages receive various training sessions from BRI, including financial management, digital literacy, entrepreneurship, communication, and more, with the goal of enhancing the capabilities of village officials, Village-Owned Enterprises (BUMDes) executives, and MSME entrepreneurs in the villages.
"Furthermore, they improve their communication skills, product marketing, information access, and receive education and insights on how to manage their businesses sustainably from two aspects. Sustainability means the sustainability of their own business," he continued.
Regarding the "My Cluster, My Life" program, BRI has currently empowered 17,418 business clusters across Indonesia, providing at least 1,155 training and literacy sessions, along with 372 productive infrastructure aids. Additionally, the "State-Owned Enterprises' Houses" program, BRI has established 54 of these houses, sheltering over 400 thousand MSME entrepreneurs and conducting more than 10 thousand training sessions.
"The application of sustainable banking principles by BRI is expected to support sustainable business growth and contribute to realizing the company's vision of becoming The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion by 2025," concluded Sunarso.
