President Director of publicly-listed PT Bank Rakyat Indonesia (BRI) Sunarso will sign the government’s share certificate involving PT Pegadaian, a state pawnshop chain, and microlending firm PT Permodalan Nasional Madani (PNM) on September 13, 2021.

After the signing, an Ultra Micro Holding (UMi), with BRI as the holding company, will officially be formed.

“One other step will be taken on September 13, 2021. I will sign a government share certificate involving Pegadaian and PNM. They both will be included in BRI’s state capital,” Sunarso noted during a virtual press conference here on Friday.

Sunarso remarked that the BRI planned to sell 28 billion shares in the rights sale at the Indonesia Stock Exchange (IDX) on July 26, 2021. This registration was conducted after BRI secured the shareholders’ approval at the Extraordinary General Meeting of Shareholders (EGMS) on July 22, 2021.

Sunarso explained that the rights issue aimed at increasing BRI’s capital in the framework of the establishment of UMi. The move was approved by the Privatization Committee and the House of Representatives.        Moreover, he pointed out that the government had also approved BRI’s move with the issuance of Government Regulation Number 73 of 2021 on the increase of state capital investment for BRI.

Sunarso stated that the establishment of Umi, through the integration of BRI, Pegadaian, and PNM, could potentially drive up the company’s assets, from Rp1,411 trillion to Rp1,515 trillion. BRI’s total liabilities could also likely increase, from Rp1,216 trillion to Rp1,289 trillion.

As such, revenue is projected to increase, from Rp40 trillion to Rp47 trillion, and BRI’s net profit, from Rp7 trillion to Rp8 trillion, he noted.

The establishment of Umi is also believed to expedite the realization of BRI’s targets related to micro customers, which reach 45 percent of the total customer base by 2025, according to Sunarso.

Source: Antara News