PT Bank Rakyat Indonesia Persero Tbk : Analyst Gathering - BRI Micro Business Update

MICRO

BUSINESS

UPDATE

Januar y 2022

P T. B A N K R A K YAT I N D O N E S I A ( P E R S E R O ) T b k .

Investor Relations Division

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KUR JOURNEY BACKGROUND

Disbursement Target - National vs BRI	December 2021
•	Borrowers 6%
•	Int. Subsidy Super
	Mikro 12%, Mikro
	10%

Research on Micro Segment Resiliency

During Covid-19 Pandemic

Conducted by BRI Micro Institute in cooperation with LPEM FEB UI to Micro borrowers through desk study, in-depth interviews and FGD

January 2016

•	Borrowers 9%
•	Int. Subsidy Micro

	February 2018		September 2020	373
	•	Borrowers 6%
•	Borrowers 7%
•	Int. Subsidy Super
•	Int. Subsidy Micro
	Mikro 13%
	10.5%, Small 5.5%

				285	113
			December 2019
	December 2017
	•	Borrowers 6%
•
Borrowers 7%	•	Int. Subsidy Micro	90
•	Int. Subsidy Micro		10.5%, Small 5.5%
	9.5%, Small 4.5%			190

Average

Monthly

Earning Saved

2019 2020 2021

16.08% 5.87% 6.36%

In 2020, the pandemic caused the monthly saving to fall to 5.87% of total earnings. However, in 2021 there is a slight improvement to 6.3%

9.5%, Small 4.5%

	August 2015
•	Borrowers 12%	100
•	Int. Subsidy Micro
	7%, Small 3%	28

110	124
39	44

140	50
53	260
195
	140

	86%		87%
74%		87%	90%
50%	69%
			89%

30

13

18

72

71 80 87

Estimated Time		45%	86%
	68%
For Business To	44%		13%
Recover Post			11%10%

2015	2016	2017	2018	2019	2020	2021	2022
	BRI		Other Banks		National	Pandemic Covid-19

"Business Follow Stimulus"

Aspiration to reach financial inclusion

Pandemic	<= 3months <= 6 months <= 12 months > 12 months Don't know
			Micro	Small	Medium

Despite the continuing economic recovery, the majority of

the MSME require more or less 12 months of recovery time

to return to their pre-pandemic condition

Investor Relations Division

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KUR SCHEME

	KUR Super Micro	KUR Micro	KUR Small
	2021	2022	2021	2022	2021	2022
Size (IDR)	Up to 10 mio	Up to 10 mio	>10 - 50 mio	>10 - 100 mio	>50 - 500 mio	>100 - 500 mio
Total Lending Rate	19.0%	18.0%	16.5%	16.0%	11.5%	11.5%
Interest paid by borrowers	6.0%	6.0%	6.0%	6.0%	6.0%	6.0%
Govt' Subsidy to BRI	13.0%	12.0%	10.5%	10.0%	5.5%	5.5%
Insurance Premium	2.0%	2.0%	1.75%	1.75%	1.5%	1.5%
					> 50 - 100 Mio
					No Collateral	Based on
					> 100 - 500
Collateral	NA	NA	NA	NA	bank's
Mio Based on

bank's	discretion
discretion

• In 2022, KUR still becomes the growth driver since borrowers are still in recovery phase …

Investor Relations Division

KUR RELAXATION

• Government increased the upper limit for KUR Micro from up >Rp10-50 million to >Rp10-100 million
• Changes in the lower interest subsidy for KUR Super Micro by 100 bps and KUR Micro by 50 bps
• The changes in KUR scheme is expected to have minimum impact on margin considering higher micro loan composition due to significant increase in KUR quota, improved efficiency and productivity.

"BRI's strategy to support the economic recovery and drive the loan growth is by actively improve the effectiveness and efficiency of stimulus disbursement, especially that can increase the purchasing power. Therefore our business

strategy is business follow stimulus"

Press Release

30 December 2021

3

CHANGING INTEREST RATE ENVIRONMENT - PRODUCTIVITY & EFFICIENCY

	Interest Rate Environment			… Anticipating low interest rate environment, BRI actively improving
	(as of December 2021)		productivity and efficiency to maintain its profitability…
	Indonesia 10Yr Govt Yield		# Borrower per Loan Officer

9.7			473
			432
			376
			356
	6.4	319	334
	297

Jan-14

Jul-14

Jan-15

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Jan-21

Jul-21

2015

2016

2017

2018

2019

2020

Loan Outstanding per Loan Officer

SEA 10Yr Govt Yield

(Rp bio)

12,9

Singapore

11,0

…Indonesia is entering

Vietnam

9,8

low interest rate

6,8

7,6

8,5

environment, yet still

Thailand

offer attractive yield

Phillipine

compared to other SEA

2015

2016

2017

2018

2019

2020

Malaysia

country…

Indonesia

Cost Of Fund

Pre-pandemic (2019) 3.58%

Pandemic (Sep'21)

2.14%

Investor Relations Division

Sep-21

14,0

Sep-21

-144 bps

4

MICRO LOAN PERFORMANCE

Micro & KUR Loan Outstanding	(in Rp Tn)		Comp. to Total Micro
	Pandemic

• Micro business consistently grew in double digits, even during the pandemic
• In line with the economic recovery efforts and pressure on borrowers' capacity, KUR become the growth driver of Micro segment, hence KUR composition increases significantly during the pandemic

Growth YoY

	2016	2017	2018	2019	2020	Sep-21
KUR	182.4%	14.9%	8.5%	7.9%	82.8%	74.8%
Kupedes	-6.0%	14.5%	20.6%	18.1%	-6.7%	-12.3%
Briguna	8.9%	10.0%	10.4%	5.8%	-4.0%	-5.7%
Total	18.2%	13.2%	14.5%	12.2%	14.2%	15.5%

Loan Quality

NPL%

	2015	2016	2017	2018	2019	2020	Sep-21
KUR	1.1%	0.6%	1.0%	1.1%	1.1%	0.5%	1.1%
Kupedes	1.6%	1.7%	1.6%	1.4%	1.6%	1.3%	2.9%
Briguna	0.4%	0.3%	0.3%	0.3%	0.4%	0.5%	0.6%
Total	1.1%	1.0%	1.1%	1.0%	1.2%	0.8%	1.6%

• Before the pandemic, Kupedes was able to grow by double digits, which shows large Micro business potential
• Historically, Micro segment's
  NPL remains manageable at ~1%, even during the pandemic

Investor Relations Division

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