The case focuses on Bank Rakyat Indonesia (BRI), a state-owned enterprise (SOE), and its decision to enter the ultra-microfinance segment. It starts with a brief history of the bank and the government’s involvement, before discussing BRI’s current position and how it engages with micro, small, and medium-sized enterprises (MSMEs). After a brief overview of the microfinance sector in Indonesia and the opportunities this presents, it discusses possible ways for BRI to enter, and alternative strategies it could pursue.

This versatile case can be used for courses on Corporate Strategy, Competitive Strategy, and/or Social Impact/ ESG/ Sustainability/ Business and Society. It enables students to understand: -how a firm formulates its corporate strategy, growth strategy and market entry strategy in a context of complex (and possibly conflicting) social and commercial objectives and aspirations; -the determinants of the mode of market entry (acquisition, alliance/JV, or internal development) in a new sector -the strategy of state-owned enterprises, specifically those in Indonesia.