Annual Report 2020

1027 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) 80 5. CURRENT ACCOUNTS WITH OTHER BANKS (continued) e) BRI assesses the allowance for impairment losses on current accounts with other banks individually using objective evidence. The following table presents the changes in the allowance for expected losses by financial instrument category. December 31, 2020 Stage 1- Stage 2- Stage 3- 12- months Lifetime Lifetime Expected Expected Expected Credit Credit Loss - Credit Loss - Loss Not Impaired Impaired Total Current accounts with others bank Carrying value beginning balance 10,237,736 - - 10,237,736 Transition to : Stage 1 - - - - Stage 2 - - - - Stage 3 - - - - Net remeasurement of allowance for losses (1,083,358) - - (1,083,358) New financial assets issued or purchased - - - - Derecognized financial assets - - - - Written-off financial assets - - - - Recovery from written-off financial assets - - - - Foreign exchange model or parameter changes and other changes - - - - Carrying value ending balance 9,154,378 - - 9,154,378 December 31, 2020 Stage 1- Stage 2- Stage 3- 12- months Lifetime Lifetime Expected Expected Expected Credit Credit Loss - Credit Loss - Loss Not Impaired Impaired Total Current accounts with others bank Balance at the beginning of the year - - - - Impact of initial application of SFAS 71 (Note 52) - - - 24 Allowance for expected credit loss beginning balance 24 - - 24 Transition to : Stage 1 - - - - Stage 2 - - - - Stage 3 - - - - Net remeasurement of allowance for losses 93,819 - - 93,819 New financial assets issued or purchased - - - - Derecognized financial assets - - - - Written-off financial assets - - - - Recovery from written-off financial assets - - - - Foreign exchange model or parameter changes and other changes - - - - Allowance for expected credit loss ending balance 93,843 - - 93,843 As of December 31, 2020 and 2019, there were no current accounts with other banks that were impaired and which were restricted in use. Management believes that the allowance for impairment losses is adequate as of December 31, 2020, and is not necessary as of December 31, 2019, because management believes that current accounts with other banks are collectible.