Increasing Financial Inclusion and Literacy to support Indonesia’s Financial Inclusion

As the largest commercial bank that focuses on serving micro, ultra micro, and SMEs in Indonesia, BRI plays an important role in increasing Financial Inclusion and Literacy in Indonesia. Financial inclusion and literacy has been becoming increasingly important as as they can deliver advantages, including reducing shadow banking and irresponsible finance, contributing to sustainable local and national economic growth, reducing inequality and low-income trap rigidity, thus ameliorating public prosperity and ultimately alleviating poverty.

Based on Indonesia’s Financial Services Authority (OJK), Indonesia’s Financial Inclusion Index in 2022 reached 85,10, while Financial Literacy Index was only at 49,68%. As part of BRI’s core business and strategy, BRI plays a great role in increasing financial inclusion and literacy through its extensive physical networks and banking agents across Indonesia, a wide range financial products and services offering (saving, lending, insurance, investment products) , reliable digital banking ecosystem, and the role of our Sales Forces as Financial Advisor to our customers to increase financial Literacy.

Our strategies in increasing Financial inclusion and literacy, include:

• BRI’s Hybrid Banking Business Model by combining BRI’s Digital Capabilities and Physical Presence across Indonesia
• Ultra Micro Holding, integration between BRI, Pegadaian, and PNM with aims to:
• Provide access to comprehensive ultra micro and micro financing products (PNM Mekaar Group Lending, Pegadaian Pawn Lending, BRI Micro and Ultra Micro Loan)
• Provide access to comprehensive saving and beyond-banking products (Micro saving, micro insurance, gold saving and investment, mobile banking)
• Provide wider points of access (wider physical outlets, SenyuM co-location)

Strengthening Cybersecurity Management

Technology has become a double-edged sword for banking industry, including in Indonesia. It accelerates the growth of digital banking, yet it also brings new challenges for data security. BRI, as a financial services institution engaged in banking activities, is also supervised by the financial services authority and regulators. As a result, personal data which is a crucial asset for the company, is also one of the aspects that requires monitoring. Personal data also serves as a benchmark for the bank’s ability to manage personal information and data it manages.

BRI is committed to protecting customer privacy from incidents that may occur, such as data breaches. As part of the commitment, BRI implements the following strategies:

• Data and Cybersecurity Management is managed by dedicated Divisions: Enterprise Data Management Division that handles data management and and Information Security Division that handles cybersecurity management.
• Strengthening data and cybersecurity governance through issuing specific policies and procedures such as: Data Governance Framework, Data Secrecy Policy, Information Security Policy, Customer Due Diligence Procedures, and Data Development Life Cycle (DDLC) & Data Sharing Procedure.

DEI-focused Talent Management

A diverse workplace is an important asset, since it acknowledges the individual strengths and the potential they bring. Diversity results in better decision making. Diverse groups consider a broader range of ideas and produce more possible solutions, and ultimately promote productivity. In line with this understanding, in preparing BRI’s future leaders, BRI implements Talent Management program that is focused on Diversity, Equity, and Inclusion (DEI) through the following strategies:

• BRILiaN Young Leader Indonesia Program
• BRILiaN Women Leader Indonesia Program

Community Financial Empowerment and Boosting Economic Development through MSMEs Financing

Micro, Small, and Medium Enterprises (MSMEs) is a sector that is very strategic and has a great potential to be the backbone of Indonesia’s economy. According to the ASEAN Investment Report released in September 2022, Indonesia has the most micro, small and medium enterprises (MSMEs) in the ASEAN region, reaching around 65.46 million MSMEs (64.6 million or around 98.7% of MSMEs are micro and ultra micro entrepreneurs), while other ASEAN countries only have in average around 860,000 MSMEs. In 2021, Indonesia’s MSMEs are recorded to be able to absorb 97% of the workforce, contribute 60.3% to the Gross Domestic Product (GDP), and contribute 14.4% to national exports.

Currently, the government of Indonesia is trying to encourage the improvement of the performance of national MSMEs (increasing their contributions to GDP and national exports). In line with the government's efforts, BRI focuses on providing community financial empowerment to MSMEs in Indonesia through the disbursement of affordable loan products (PNM Mekaar, PNM Ulaam, Pegadaian Pawnshop Loan, KUR, etc) and Non-financial support & empowerment programs (PNM Mekaar Women Empowerment Program, linkumkm, and Desa BRILiaN).

Preserving the environment through BRI Menanam (Tree Planting Program)

As the bank with more than 36 million of micro and ultra-micro customers, BRI has the resource needed to contribute to preserve the environment. Through the BRI Menanam (Tree Planting Program), where BRI distributing tree seedlings to the customers who received loans, BRI is able to collab with village apparatus, local inspiring figures, UMKM clusters, UMi agents, and customers. Thus, this program is not only initiated to help preserve the environment, but also encourage the community to take part in the efforts.

BRI Menanam was started in August 2022, involving several segments of BRI customers: BRILiaN Village, KUR customers, and PNM Mekaar Group. This program is also one of BRI’s contributions in supporting the achievement of sustainable development goals (SDGs) No. 13: Climate Action.