Annual Report 2020

1023 PT Bank Rakyat Indonesia (Persero) Tbk. Performance Highlights Management Reports Company Profile Management Discussion & Analysis Corporate Governance Corporate Social Responsibility Annual Report 2020 These consolidated financial statements are originally issued in the Indonesian language. PT BANK RAKYAT INDONESIA (PERSERO) Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2020 and for the Year Then Ended (Expressed in millions of Rupiah, unless otherwise stated) 76 4. CURRENT ACCOUNTS WITH BANK INDONESIA (continued) As of December 31, 2020 and 2019 current accounts with Bank Indonesia include current accounts based on sharia banking principles amounting to Rp1,084,299 and Rp1,327,895, respectively. Current accounts with Bank Indonesia are maintained to comply with Bank Indonesia’s Minimum Legal Reserve Requirements (GWM). As of December 31, 2020 and 2019, the GWM ratios are calculated based on Bank Indonesia Regulation (PBI) No. 15/15/PBI/2013 dated December 24, 2013 regarding GWM of Commercial Bank in Rupiah and Foreign Currency for Conventional Commercial Bank, as amended several times with PBI No. 18/3/PBI/2016 dated March 10, 2016, PBI No. 18/14/PBI/2016 dated August 18, 2016, PBI No. 19/6/PBI/2017 dated April 17, 2017, PBI No. 20/3/PBI/2018 dated March 29, 2018, and PBI No. 22/3/PBI/2020 dated March 24, 2020. The PBI is explained by the Regulation of the Members of the Board of Governors (PADG) No. 20/30/PADG/2018 dated May 31, 2018 on Minimum Mandatory Current Account in Rupiah and Foreign Currencies for Conventional Commercial Banks, Sharia Commercial Bank and Sharia Business Unit as amended five times through PADG No. 20/10/PADG/2018 dated May 31, 2018, PADG No. 20/30/PADG/2018 dated November 30, 2018, PADG No. 21/14/PADG/2019 dated June 26, 2019, PADG No. 22/2/PADG/2020 dated March 10, 2020, PADG No. 22/10/PADG/2020 dated April 29, 2020 and PADG No. 22/19/PADG/2020 dated July 29, 2020. Macroprudential Liquidity Buffer Ratio (PLM) is calculated based on PBI No. 21/12/PBI/2019 dated November 25, 2019 regarding changes to PBI No. 20/4/PBI/2018 on Macroprudential Intermediation Ratio and Macroprudential Liquidity Buffer for Conventional Commercial Banks, Sharia Commercial Bank and Sharia Business Unit which is explained through PADG No. 21/22/PADG/2019 dated November 28, 2019 as amended to The Member Regulation of the Board of Governors (PADG) No. 22/19/PADG/2020 dated July 29, 2020. The calculation of GWM ratio is determined as follows: December 31, 2020 December 31, 2019 Rupiah - Primary GWM 3.00% 6.00% (i) GWM daily *) 0.00 3.00 % (ii) GWM average 3.00 3.00 % - PLM (d/h Secondary GWM) 6.00 4.00 % Foreign Currency 4.00% 8.00% (i) GWM daily 2.00 6.00 % (ii) GWM average 2.00 2.00 % *) For banks that provide funds for economic activities get incentives in the form of leeway on the obligation to fulfill the GWM in rupiah which must be fulfilled on a daily basis as referred to in PAD No. 22/04/PADG/2020 article two paragraph three amounting to 0.5% (zero point five percent). Primary GWM is the minimum deposits that must be maintained by the Bank in the form of Current Account balance at Bank Indonesia. PLM is minimum liquidity reserve that must be maintained by the Bank in the form of Bank Indonesia Certificates (SBI), Bank Indonesia Deposit Certificates (SDBI), Government Securities (SBN), which the amount is determined by Bank Indonesia at certain percentage of Bank’s Third Parties Funds (DPK). Based on PBI No. 20/4/PBI/2018 dated March 29, 2018, Loan to Funding Ratio (LFR) changed to Macroprudential Intermediation Ratio (RIM), and RIM fulfillment obligations apply on July 16, 2018. RIM is the minimum deposit the Bank is obliged to maintain in the form of Current Account balance at Bank Indonesia at a certain percentage of the DPK which calculation is based on the difference between the RIM held by the Bank and the Targeted RIM. RIM is charged if the Bank’s RIM is below Bank Indonesia’s minimum targeted RIM (84%) or above Bank Indonesia’s maximum targeted RIM (94%) with Bank's Minimum Capital Adequacy Ratio (KPMM) smaller than Bank Indonesia's Incentive KPMM of 14%.