The launch of the Red-and-White Village Cooperative Program (KDMP) by the Indonesian government is expected to deliver a positive impact on the business outlook and stock performance of PT Bank Rakyat Indonesia (BRI). 

In its latest research dated July 11, 2025, Indo Premier Sekuritas reaffirmed its BUY recommendation on BRI shares with a target price of Rp4,700, representing a 21.1 percent upside potential from the July 11 closing price of Rp3,880 per share.

Indo Premier’s analysts believe that the KDMP initiative will expand BRI’s financing potential, especially in the micro and rural segments, which are the bank’s core focus. The program aims to establish up to 80,000 village cooperatives, each requiring around Rp3 billion (US$183,721) in financing. This initiative aligns well with BRI’s strength in distributing People’s Business Credit (KUR) and other financial inclusion products.

“The KDMP’s financing structure, which leverages the KUR scheme, will enhance BRI’s role in the microfinance sector. With sound risk management, profit margins remain attractive, while risk exposure can be minimized through government guarantees,” the Indo Premier report said as quoted on Friday, July 18, 2025.

Analysts noted that the program could open opportunities for cross-selling other banking services such as savings, virtual accounts, and digital solutions, thereby strengthening BRI’s banking ecosystem at the village level. Lending to these cooperatives is expected to support selective loan growth while expanding the customer base sustainably.

From a valuation perspective, BRI shares remain attractive with a projected price-to-book value (P/BV) of 1.8x in 2025, well below the 10-year historical average of 2.4x. The bank is forecast to post a net profit of Rp56.8 trillion (US$3.5 billion) in 2025, with a dividend yield of 8.7 percent, reflecting continued solid financial performance.

With stable credit growth projections, maintained asset quality, and additional lending potential from KDMP, Indo Premier considers BRI a top pick in the banking sector.

In a parallel move to sustain long-term performance, BRI has also launched the BRIvolution Initiatives Phase 1 – Kicking Off a New Horizon, marking an acceleration of its business transformation strategy. BRI President Director Hery Gunardi emphasized that the initiative is a key milestone in guiding BRI toward a more visionary, collaborative, and impactful future.

“The launch of the first phase of BRIvolution serves as the foundation for a series of ongoing transformations that will enable us to meet the dynamic needs of the financial industry and our customers,” he said.

“This is also part of our long-term transformation to enhance competitiveness and deliver added value to all BRI stakeholders,” Hery concluded.