Bank Rakyat Indonesia is the second largest bank in Indonesia. The bank specializes in small-scale and microfinance style lending with other products including savings accounts, current accounts and fixed deposits. Bank Rakyat Indonesia has approximately 55,000 employees, 4,000 locations and 30 million retail clients.
Bank Rakyat’s micro, small and medium enterprise loans account for approximately 70% of the company’s financing and have been designed to serve individual customer and microbusiness development. The company emphasizes this ‘community banking’ and provides its Rural General Loans and People Business Loans to promote sustainable economic growth throughout Indonesia. Bank Rakyat Indonesia requires that every company applying for credit complies with laws on environmental management such as the Sustainable Plantation Forestry criteria and the Roundtable on Sustainable Palm Oil criteria. Additionally, an assessment of environmental management performance is required before financing, driving companies in Indonesia to continue improving their environmental performance. Bank Rakyat Indonesia invests in an array of clean energy and environmental projects, too. In its operations, the bank has increased the efficiency of its operational vehicles and power consumption and is nearly 90% paperless. Bank Rakyat Indonesia offers performance-based variable pay and substantial training and development opportunities for its employees.
The Indonesian government has a controlling 57% stake in Bank Rakyat Indonesia and holds the right to veto specific resolutions during annual general meetings. Bank Rakyat Indonesia does not report its KPIs or set goals for future sustainability measures.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.