Bank Rakyat Indonesia CFO on Rights Issue

The transcript discusses the strategic use of capital for micro lending, focusing on growth in the micro segment and maintaining a healthy capital adequacy ratio. It addresses the risks associated with lending to smaller businesses and the importance of data analytics in underwriting. The discussion also covers strategic purchases, dividend policy, and financial projections, highlighting the impact of the pandemic on business growth and asset quality.

What is the primary focus of the capital raised from the rights issue?

• Expanding into international markets

• Investing in technology infrastructure

• Reducing operational costs

• Developing the Ultra Micro ecosystem

How does the company plan to mitigate risks when lending to smaller businesses?

• Through data analytics and loan officer expertise

• By offering larger loans

• By increasing interest rates

• By reducing the number of loans

Why is the current time considered the right moment for strategic acquisitions?

• Due to a decline in competition

• To diversify into new industries

• Because of favorable economic conditions

• To consolidate the Ultra Micro ecosystem during the pandemic

What is one of the key considerations in the company's capital management strategy?

• Focusing solely on international expansion

• Reducing employee numbers

• Ensuring sufficient capital to mitigate future risks

• Maximizing short-term profits

What is the expected loan growth for the next year?

• 12% to 13%

• 9% to 10%

• 6% to 7%

• 3% to 4%

How does the company plan to handle unfavorable situations affecting growth targets?

• By pursuing aggressive growth strategies

• By reducing dividend payouts

• By cutting down on operational expenses

• By considering a higher dividend payout

What is the projected return on equity within five years?

• 18% to 19%

• 15% to 16%

• 12% to 13%

• 10% to 11%