JAKARTA – Thanks to dedication and commitment in promoting financial inclusion and literacy in Indonesia, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) managed to win three awards at Bank Indonesia (BI) Award in Jakarta last week (29/11). Those three awards include Best Inclusive Financing Support Bank, Best Green Financing Support Bank, and Best Forex Monetary Management Support Bank.

The award that was held in Jakarta last November is a part of Bank Indonesia Annual Meeting 2023 titled “Synergy Strengthening National Economic Resilience and Revival”. This meeting is a high-level event held by Bank Indonesia annually since 1969. The BI Award was witnessed by President Joko Widodo in person.

In this event, President Joko Widodo asks all business sectors, particularly banking industry, to promote credit absorption, especially for micro, small, and medium enterprises (MSMEs) so that the real sector could improve from last year.

“I ask all banks—they indeed must be prudent and cautious, but I ask them to promote their credits more, especially for MSMEs. Don’t go for investment in Government Securities. Although they may, but it is to make real sector improves from last year,” Widodo added.

In relation to this award, Sunarso, President Director of BRI, mentioned that his company is grateful and appreciates the award given by Bank Indonesia. BRI is considered supportive of BI in carrying out duty and authority in monetary, payment system, macroprudential, and MSMEs development

Sunarso further explained that regarding the credit distribution towards MSME players, his company prioritises improvement of empowerment capability, in which it consists of at least three phases of empowerment. The first one is basic literacy, in which includes financial inclusion and basic financial management.

The second one is designing business literacy, through enhancement of managerial capacity, building legality or compliance, developing innovation culture, shaping industrial and market understanding, and forming leadership and long-term mindset to upscale the business.

The third is digital literacy for MSMEs aiming to go digital, go modern, and go global. Then, in relation to improvement of empowerment capability, there must be an established financing capability, meaning that BRI places financing as a part of empowerment.

“The next one is channel capability. MSME players, whose numbers are heavily dominating, requires highly varied channels. BRI Group possesses various empowerment channels that could enter different business categories, namely Rumah BUMN, Inkubasi Universitas, Desa Brilian, LinkUMKM, and PNM Mekaar. The next is the capability of IT that integrates all services, and the last one is collaboration capability,” added Sunarso.

According to Sunarso, efforts of empowerment capability enhancement cannot be separated from one of the biggest aspirations to be achieved by BBRI by 2025, which is to become Champion of Financial Inclusion. Financial inclusion must be high in quality as it is closely linked to welfare. As is known, the government aims to reach financial inclusion rate of 90% by 2024.

“When financial inclusion reaches 90%, 70% of which is contributed by BRI, or equal to 121.6 million users. Meanwhile, for 2023, the contribution target is 65.4% with 107.5 million users,” Sunarso added.

“Then, in supporting green economy, BRI has become the leader in sustainable finance market in the country by recording consistent sustainable credit distribution,” Sunarso claimed. BRI’s success in disbursing credit is accompanied with comprehensive improvement of environmental, social, and governance (ESG) in business activities of the company.

Until the end of Q3 2023, BRI’s sustainable credit managed to grow 11.89% year-on-year (yoy) to IDR 750.91 trillion, making its portion to reach 66.1% of total BRI’s credit portfolio. Said number further strengthens BRI’s position as the bank with the biggest sustainable credit portfolio in Indonesia.

For the record, BI Award is a form of appreciation by Bank Indonesia to all strategic partners who possess high dedication and generate meanings towards development of Indonesia. This award is given to companies that also contribute in advancing national economic growth through various services. (*/ZH)