BRI tops Forbes Global 2000 list for most valuable companies in Indonesia

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JAKARTA, IDFinancials – PT. Bank Rakyat Indonesia (Persero) Tbk has been named a Forbes 2021 Global 2000 world’s largest public company and the most valuable public company in Indonesia.

Better known as BRI, the bank said the prestigious award reflects its substantial achievements and international recognition for its business model which supports micro, small and mid-size enterprises with micro-financing across the country.

Apart from being ranked 362nd among 2,000 world’s best public companies, it also gained a spot in the Forbes list of World Best Banks 2021.

According to Forbes, six Indonesian public companies are in its prestigious list, with BRI leading in top spot for seven consecutive years since 2014.

In a press statement, Sunarso, president director of BRI, said, “The achievement affirms BRI’s commitment to focusing on micro, small, and medium enterprises (MSMEs) sectors. This also strengthens our role and position as a strategic partner for the government helping to recover national economic recovery in Indonesia.”

Despite challenging market conditions brought about by the COVID-19 pandemic, BRI managed to achieve excellent results.

The state-owned bank is now ranked 1,007th in terms of sales and 529th in profitability. As for assets and market value, it is placed at 354th and 505th positions respectively.

The bank recorded a revenue of about $10 billion and a $1.3 billion profit in 2020, with assets reaching $107.6 billion.

After a drastic 45 percent fall in profit because of the pandemic last year, it expects profit to rise again by as high as 18 percent in 2021 as economic recovery is likely to fuel demand for loans.

Despite the crisis, BRI managed to save MSMEs by “turning difficulties into resilience”, it said.

The bank, which has 7,000 branches across Indonesia, implemented strategies such as credit restructuring and a business stimulus program in partnership with the government.

The country’s gross domestic product (GDP) contracted 0.74 percent year-on-year in the first quarter. According to Statistics Indonesia (BPS), the decline was less severe than the 2.19 percent of the last quarter of last year and within the government’s forecast of between 1 and 0.1 percent.

Although the GDP had remained negative, it was a big improvement over previous quarters, indicating that Indonesia is on track to recovery, said BPS.

Meanwhile, the BRI Group has made strategic and innovative moves to create income diversification and integrated financial services to cater to the financial needs of the wider Indonesian community in 2020.

They include a strategic partnership with FWD Financial Services Pte. Ltd to accelerate growth in BRI Life insurance services and expanding consumer financing under BRI Finance. The group also merged BRI Syariah together with Bank Syariah Mandiri and BNI Syariah to become Bank Syariah Indonesia (BSI).

BRI Group now has seven subsidiaries, namely PT Bank Rakyat Indonesia Agroniaga Tbk; BRI Remittance Co. Ltd. Hong Kong; PT Asuransi BRI Life; PT BRI Multifinance Indonesia; PT BRI Danareksa Sekuritas; PT BRI Ventura Investama; and PT BRI Asuransi Indonesia.

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