BRI and Telkom Collaboration Opens Financial Access for 5 million People in Two Years

Bank BRI (IDX: BBRI) has partnered with PT Telkom Indonesia Tbk. (IDX: TLKM) to provide access to financial services for 5 million people in Indonesia over the next two years. They synergize to expand the use of digital technology in the financial sector for reliable telecommunication infrastructures to accelerate digital economy.

According to a report (https://singaporefintech.org/fintech-in-asean-2021/) by UOB, PwC, and Singapore Fintech Association (SFA), 50% of the population in Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, do not have access to financial services or are unbanked. In Indonesia alone, 28 million( https://finansial.bisnis.com/read/20211006/90/1451118/28-juta-penduduk-ri-belum-tersentuh-perbankan-bi-pasar-potensial-bank-digital) people are unbanked.

“The synergy between BRI and Telkom pushes financial inclusion to remote areas in Indonesia. Telkom is here to support BRI’s needs of internet network with their expertise,” said Erick Thohir, Indonesian Minister of State-Owned Enterprises.

One of the priority agendas of Indonesia’s Presidency on this year’s G20 Summit is digital transformation that includes providing financial services to remote areas.

As Indonesia is predicted to become the fourth largest country in the world economy, the Ministry will continue to encourage digital transformation for Indonesia’s economy in 2045. “Digital transformation carried out by the Ministry is very important for state-owned enterprises to continue to grow in the midst of technological developments,” added Eric.

Sunarso, President Director of BRI explained, “BRI’s aspires to efficiently serve as many people as possible. The most effective way to reach 17,000 islands in Indonesia is through digitalization. Thus, we collaborate with Telkom to develop the digital infrastructure.”

The collaboration from 2020 to 2021 has provided banking access to around 5 million people in Indonesia, or 0.1 percent of the world’s population.

Telkom’s infrastructure has reached remote and disadvantaged areas in all regions of Indonesia, through their fiber optics, terrestrial networks, base transceiver station and satellites.

“Digital connectivity encourages access of information across all sectors, including the financial sector. Thus, Telkom supports BRI’s commitment to providing digital-based banking services to remote areas in Indonesia,” said Ririek Adriansyah, President Director of PT Telkom Indonesia.

This is expected to contribute to a larger economy because growth in access to banking finance in Indonesia can contribute to the economic growth Asian region as well.

More information about BRI can be accessed at www.bri.co.id.

Source: PT Bank Rakyat Indonesia Tbk (BRI)