Bank Rakyat Indonesia (BRI) was first established in Purwokerto, Central Java, in 1895 by Raden Arya Wirjatmadja. The bank, which was called Hulp-en Spaarbank der Inlandsche Bestuurs Ambtenaren, or Support and Savings Bank of the Indegenous civil servants, is the first state-onwed bank in Indonesia. After undergoing several changes during the post-independence era, Bank Rakyat Indonesia was transformed into PT. Bank Rakyat Indonesia (Persero) on August 1st 1992, in which 100% ownership of the bank was in the government of Indonesia. Later in November 2003, BRI went public by offering its shares to market. The investors’ interest in BRI is so big that by December 2008, 43.21% of the shares was owned by public and 56.79% belonged to the government.

 

The growth of BRI is regarded as the beginning of Indonesian rural banking. After 113 years of operation, BRI still focuses its business on microbanking: making banking products and services accessible for the poor in Indonesia. The vision of BRI is “to become a leading commercial bank in Indonesia which prioritizes customers’ satisfaction,” with the following missions:

• Performing the best banking activities focusing on providing services for Micro, Small, and Medium Enterprises to support Indonesia’s economy.
• Providing excellent services for customers through widespread network, supported by professional HR by implementing GCG.
• Providing optimum added values for all stakeholders

 

In order to achieve those missions, BRI apply such strategies as maintaining focus on the core business, expanding operational coverage, strengthening the Risk Management system, and using proper information technology for operational efficiency. That’s why 80% of its loan portfolio is dedicated to micro, small, and medium enterprises—leaving 20% to corporate.

As a public bank whose performance must satisfy the stakeholders, BRI performs very well. As of December 2008, BRI’s profit was USD 5.25 billion, still the highest of all banks in Indonesia. This profit mostly comes from the Unit.

At present, BRI has roughly 40,000 permanent employees, approximately 30,000 of whom are BRI Unit personnel serving micro customers throughout Indonesia. With 4,417 Unit outlets and 76 Village Service Posts by December 2008, BRI Unit microbanking system has disbursed USD 4.4 billion micro loans to 4.5 million customers. This loan outstanding increased by 131% from December 1997 figure. In terms of deposit mobilization in the same period, BRI Unit total savings was USD 6.71 billion of + 19.6 million savers, increasing by 121% from December 1997 figure. It is really amazing to see the difference between the lending and the savings sides of BRI microbanking.

As banking business develops from time to time, so as the network of BRI. Currently, BRI has 5,168 working units, consisting of 1 Head Quarter, 14 Regional Offices, 3 Overseas Representatives, 12 Inspection Offices, 347 Branches, 253 Sub Branches, 4,417 Units, 45 Syariah Branches, and 76 Village Service Posts. Through this vast network, BRI runs its business—providing banking products and services for micro as well as corporate customers across the country—to create better economy of Indonesia. Qualified human resources, continuous training and development, robust risk management and internal control system, enhanced management information system, quality service, and incentive program for both employees and customers are some other factors contributing significantly to this success.