As a government-owned bank, BRI must support the country's mission to accelerate MSME growth. With Indonesia's characteristics, such as rural areas and mountains throughout the archipelago, the bank should cover all the entire country's areas. In addition, the bank needs huge third-party funds (liability side) to distribute MSME loans (asset side). However, the first challenge is that the bank must have sustainable profit growth for investors, and the second is that it must have an independent fund source, excluding government funds.
"BRI has a modern IT strategy toward connected banking (banking as an ecosystem), even though historically the bank used to be for low-income class in rural areas. The bank's embrace of open application programming interface, microservices, cloud, container, big data and analytics, and artificial intelligence technologies proves crucial to its digital strategy," says Handojo Triyanto, a senior research manager at IDC Financial Insights Asia/Pacific.