Birth of BRI
Bank Rakyat Indonesia (BRI) is one of the largest state-owned banks in Indonesia. BRI was established in Purwokerto, Central Java, by Raden Bei Aria Wirjaatmadja as De Poerwokertosche Hulp en Spaarbank der Inlandsche Hoofden or "Help and Savings Bank of the Aristocrats of Purwokerto", a financial institution that served people of Indonesian nationality (native Indonesians). The institution was incorporated on December 16, 1895, and the date is now commemorated as the anniversary of BRI.
BRI Post-Independence of the Republic of Indonesia
Following the independence of the Republic of Indonesia, Government Regulation No. 1/1946 Article 1 acknowledged in writing that BRI was the first state-owned bank in the Republic of Indonesia. During a period of war to defend independence in 1948, BRI temporarily ceased its activities. The Bank resumed its operations after the Renville Agreement was reached in 1949 and changed its name to Bank Rakyat Indonesia Serikat.
Merger BRI, BKTN, & NHM
At that time, through Government Regulation in Lieu of Law No. 41 /1960, Bank Koperasi Tani and Nelayan (BKTN) was established as a result of the merger between BRI, Bank Tani Nelayan and Nederlandsche Maatschappij (NHM). Later, based on Presidential Stipulation No. 9/1965, BKTN was integrated into Bank Indonesia as Bank Indonesia Urusan Koperasi Tani and Nelayan. After one month, Presidential Stipulation No. 17 of 1965 concerning the establishment of a single bank as Bank Negara Indonesia was issued. Under this new provision, Bank Indonesia Urusan Koperasi, Tani and Nelayan (formerly BKTN) was merged as Bank Negara Indonesia unit II for the rural sector, while NHM became Bank Negara Indonesia unit II for the export-import (Exim) sector.
Since August 1, 1992, under Banking Law No. 7/1992 and Regulation of the Government of the Republic of Indonesia No. 21/ 1992, BRI’s status has been as a limited liabilities company. At that time, BRI was still fully owned by the government of the Republic of Indonesia. In 2003, the Indonesian government decided to sell 30% of the Bank’s shares, a decision that transformed the Bank into a public company as PT Bank Rakyat Indonesia (Persero) Tbk., as it remains today.