Q4 2021 MSME Business Index - MSME Recovery Continues and is Optimistic

Jakarta - BRI's consistency in serving and empowering MSMEs (Micro, Small and Medium Enterprises) has not only succeeded in strengthening the people's economy, but also resulted in stable financial performance. Amidst the challenges of global economic pressures that have impacted domestic economic growth, as well as liquidity challenges for the banking industry, BRI was able to demonstrate performance resilience by recording a consolidated net profit of IDR 60.64 trillion throughout 2024. This was conveyed by BRI President Director Sunarso in a Press Conference Presenting BRI's Financial Performance in 2024 in Jakarta (12/2).

"Until the end of 2024, BRI managed to record a net profit of IDR 60.64 trillion. This achievement demonstrates BRI's performance resilience and ability to consistently create value for shareholders, stakeholders, and the wider community amidst BRI's support for MSMEs," explained Sunarso.

Meanwhile, BRI's total assets reached Rp1,992.98 trillion by the end of December 2024, representing a 1.42% year-on-year (yoy) growth. This growth was driven by selective and high-quality lending while maintaining a focus on MSMEs.

In terms of lending, BRI recorded Rp1,354.64 trillion in loans, representing 6.97% year-on-year growth, with all loan segments recording positive growth. "BRI's lending is dominated by the MSME segment, accounting for 81.97% of BRI's total loans, or Rp1,110.37 trillion," Sunarso added.

This growth in lending was also accompanied by improvements in credit quality. This was demonstrated by the improvement in the Non-Performing Loan (NPL) ratio, from 2.95% at the end of December 2023 to 2.78% at the end of December 2024. Furthermore, BRI also prepared adequate reserves, with NPL coverage of 215.01%.
In terms of deposits or Third Party Funds (TPF), BRI managed to collect Rp1,365.45 trillion in deposits. Low-cost funds (CASA) dominated BRI's deposit collection, accounting for 67.30%, equivalent to Rp918.98 trillion.

"BRI's success in sustainably increasing its CASA portion is inseparable from BRI's strategy to continue focusing on improving quality CASA, one of which is transaction-based CASA," said Sunarso.

BRI's CASA achievement was supported by the growth of digital transactions through the BRImo Super App, further strengthening BRI's position in digital banking services in Indonesia. By the end of December 2024, the number of BRImo Super App users had grown 22.12% year-
on-year to 38.61 million. The volume of transactions processed through BRImo also recorded a 34.57% year-on-year increase to Rp5,596 trillion. Sunarso also explained that BRI's positive performance in 2024 was also supported by adequate liquidity and strong capital. BRI's Loan Deposit Ratio (LDR) stood at 88.85%, with a Capital Adequacy Ratio (CAR) of 26.63%.

Encouraging a People's Economy by Serving and Empowering MSMEs
In addition to its dominance in MSME financing, as an agent of development, BRI is also committed to supporting the Government's Asta Cita, especially in increasing quality employment, encouraging entrepreneurship, developing the creative industry, economic equality and poverty alleviation. Various MSME empowerment programs, as well as initiatives to provide the widest possible access to financial services to the community, include the following:

1) Ultra Micro Holding
Ultra Micro Holding (UMi) is a synergy between BRI as the parent company of Pegadaian and Permodalan Nasional Madani (PNM) to provide access to comprehensive, integrated financial services and meet the needs of business actors, especially in the Ultra Micro (UMi) segment. Since its establishment in 2021, UMi Holding has expanded its services through 1,032 Ultra Micro Service Center (Senyum) outlets spread throughout Indonesia. Currently, Ultra Micro Holding has served more than 180 million deposit customers and 36.9 million loan customers with credit disbursement of IDR 628.67 trillion.

2) People's Business Credit (KUR)
KUR is a government program to increase access to financing for MSMEs. KUR funds are 100% sourced from bank funds, while a portion of the interest paid by customers is subsidized by the government. Throughout 2024, BRI successfully distributed KUR of IDR 184.98 trillion, making it the highest among other national banks. BRI's KUR distribution reached more than 4 million MSMEs throughout Indonesia and had a significant impact on national economic growth.

3) AgenBRILink
AgenBRILink is an expansion of BRI's services, where BRI collaborates with BRI customers as agents/partners who can serve banking transactions for the public in real-time online with a fee-sharing concept. By the end of December 2024, the number of AgenBRILink reached 1.06 million, an increase of 324 thousand agents compared to last year with a transaction volume of IDR 1,583 trillion. Agents are spread across more than 67 thousand villages, reaching more than 80% of the total villages in Indonesia.

4) BRILiaN Villages
BRILian Villages is a village economic development program tailored to specific potentials, such as tourism villages, craft villages, agricultural villages, and so on. By the end of December 2024, BRI had developed 4,327 BRILian Villages across Indonesia.

5) PARI
PARI (Indonesian People's Market) is an integrated platform that provides convenience for MSME ecosystem actors based on commodities, to date it has been recorded as being used by 85 thousand PARI users.

6) My Cluster My Life:
An empowerment program based on similar businesses within clusters/business groups. Currently, BRI has fostered 38,574 business clusters throughout Indonesia.

7) LinkUMKM:
An online platform aimed at tracking and monitoring the advancement of Indonesian MSMEs through a series of integrated empowerment programs. LinkUMKM currently has 8.9 million users.

8) Rumah BUMN (State-Owned Enterprise House)
is a collaborative platform for state-owned enterprises (SOEs) in developing a digital economy ecosystem through fostering MSMEs. BRI currently has 54 SOE houses with 433,000 fostered MSMEs.
Concluding his presentation, Sunarso emphasized that amidst various market challenges, BRI will focus on maintaining performance stability and resilience, and will be committed to supporting the people's economy, primarily through inclusive and sustainable financing, as well as various empowerment initiatives to develop MSMEs as the main pillars of Indonesia's economic growth.