Jakarta, CNBC Indonesia – PT Bank Rakyat Indonesia (Persero) Tbk held an Extraordinary General Meeting of Shareholders (EGMS) online in Jakarta (22/07) in order to obtain approval for the right issue corporate action to be carried out by BRI with the mechanism of Capital Increase by Giving Pre-emptive Rights Previously (PMHMETD) related to the plan to form Ultra Micro Holding.
This Right Issue has the potential to become the largest rights issue in Indonesia, and can even become one of the largest rights issues in Asia.
At the online presentation of the BRI EGMS press conference, BRI President Director Sunarso revealed that the company continues to explore new sources of growth in line with the Company’s aspiration to become the Champion of Financial Inclusion.
The ultra micro segment has been identified as a new source of growth through the establishment of the Ultra Micro ecosystem. This ecosystem will provide integrated financial services for entrepreneurs of the ultra-micro segment, thus enabling the mechanism for upgrading to micro-customers to be more well-organized.
This plan is also in line with the Government’s vision in the 2020-2024 National Medium-Term Development Plan, which is to encourage financial inclusion. Therefore, the Government intends to establish an Ultra Micro Holding consisting of BRI, Pegadaian and PNM. In this case, BRI will be appointed as holding parent.
“Based on data from the Indonesian Ministry of Cooperatives & SMEs, the Asian Development Bank and the results of the BRI analysis, in 2018, there were around 45 million Ultra Micro businesses that needed additional funding. So far, only around 15 million Ultra Micro businesses have been touched by funding from formal financial institutions. By reaching the potential of Ultra Micro, the accessibility of financial services in this segment can be optimized,” explained Sunarso.
In this PMHMETD, the Government will deposit all of its Series B shares in Pegadaian and PNM to BRI or Inbreng. After the transaction, BRI will own 99.99% shares of Pegadaian and PNM. In addition, the Government will continue to own 1 Dwiwarna Series A share in Pegadaian and PNM.
“The company plans to issue a maximum of 28,677,086,000 Series B shares with a nominal value of Rp50. The number of shares and the exercise price will be announced later,” added Sunarso.
The proceeds from this corporate action will be used by BRI for the establishment of the Ultra Micro Holding which is carried out through BRI’s investment in Pegadaian and PNM, as a result of the Government’s involvement. The rest will be used as BRI’s working capital for the development of the Ultra Micro ecosystem, as well as Micro and Small businesses.
This corporate action will have an impact on BRI’s consolidated financial statements as of March 31, 2021, including increasing BRI’s total assets from Rp1,411 trillion to Rp1,515 trillion, BRI’s total liabilities increasing from Rp1,216 trillion to Rp1,289 trillion; and BRI’s net profit increased from Rp7 trillion to Rp8 trillion.
Sunarso added that Ultra Micro Holding will not only provide benefits for BRI, Pegadaian and PNM but also for Ultra Micro businesses and the national economy.
“PNM will play a role in the Empowerment phase. The group loans distributed by PNM are not only valuable as financing, but also function in providing assistance and increasing capabilities. Then, in the Integration phase, BRI and Pegadaian can help business actors in this segment with various pawn and KUR products, ” he explained.
“Furthermore, in the last stage, which is the Upgrade phase, Ultra Micro Holding allows Ultra Micro business actors to upgrade to commercial-based BRI Micro customers. The process will occur in one ecosystem so that it is more effective and efficient,” added Sunarso.
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