JAKARTA – In their development of business and enhancement of profile, companies in the corporation segment must be pushed to access fundings through alternative fundings, one of them being the Initial Public Offering (IPO). This method is carried out by PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) or BRI as its consistent effort to raise their corporate users’ levels.

SEVP Treasury and Global Services of BRI, Achmad Royadi, said that BRI aims to upgrade their corporate users to the next level through IPO. “Especially in terms of funding, it improves corporate image and good corporate governance (GCG). BRI is focusing on getting 40 corporate users to access funding through an alternative funding,” he said during ‘Go Public With BRI,’ a part of a go-public seminar themed ‘Optimum Financing Synergy with Initial Public Offering.’ This event is a collaboration between BRI and Indonesia Stock Exchange (IDX) on July 6, 2023.

By releasing their shares to the public via IPO, the company will gain new stakeholders, such as the stock exchange and capital market analysts, thus enhancing the implementation of GCG as they are now forced to comply with an improved information disclosure factor.

“BRI, as a group and corporate client, wishes to grow and move forward together, and this IPO is one of the valid methods,” Royadi explained.

Through this initiative, BRI continues to commit to providing an integrated banking solution for corporate users. Not only offering facilities or loans, BRI also serves all financial transaction needs of a user, such as forex, cash management, trade finance, and others.

“Furthermore, this year, we are currently launching QLola, a single sign-on (SSO) platform that facilitates our clients in conducting transactions, for example, report, cash management, trade finance, and forex transaction. This surely becomes a part of our purpose to continue to provide total solution to our clients, particularly those in corporation segment,” Royadi stated in detail.

At least up to Q1 2023, the company posted consolidated credit growth of 9.7%. In terms of segment, micro and ultra-micro credits grew positively by up to 11%, followed by consumer credits of 13%, and corporate credits of 10.3%. For corporate credits, BRI had channelled credits of IDR 196 trillion.

Despite directing its focus in MSME segment, BRI still maintains its corporate credit quality, targeting the contribution of approximately 15% to BRI’s total portfolio.

BRI Group Synergy

The synergy within BRI Group’s services in promoting companies to go public is carried out by BRI Danareksa Sekuritas. On the same occasion, Director of Investment Banking Capital Market of BRI Danareksa Sekuritas, Kevin Praharyawan, mentioned that his company intends to assist best companies in Indonesia to debut on IDX.

It may begin within the user ecosystem within the BRI Group itself. His company realises that every year, the authority of Indonesian capital market always seeks growth, both in the number of issuers or capital market investors.

As of now, Praharyawan believes that many companies in Indonesia have yet to seize opportunities offered in IPO. IPO, in his opinion, offers endless possibilities for companies to expand into bigger and better entities.

“IPO may attract new investors. Therefore, the future opportunity of said company to grow is bigger,” Praharyawan added. His company always coordinate with BRI’s corporate banking to seek potentials in fit and proper companies, allowing them to debut on IDX.

Through this synergy, BRI Danareksa Sekuritas offers comprehensive and integrated services. They vary from brokerage services, investment banking services from the point of view of the capital market, advisory services, even proper research team to analyse almost 80% of publicly listed companies on IDX.

“We hope this great synergy to be passed along to our parent company, BRI. May this initiative stimulate other companies to gain courage to set their foot on Indonesia Stock Exchange,” concluded Praharyawan. (BRI/ZH)