Annual Report 2020

1032 125 Years BRI Helps To Leverage MSMEs. Changing Adversities to Will-Power Financial Statements 2020 07 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) 85 6. PLACEMENTS WITH BANK INDONESIA AND OTHER FINANCIAL INSTITUTIONS (continued) e) BRI assesses the allowance for impairment losses on placements with Bank Indonesia and other financial institutions individually using objective evidence. The following table presents the changes in the allowance for expected losses by financial instrument category . December 31, 2020 Stage 2- Stage 3- Stage 1- Lifetime Lifetime 12 - months Expected Expected Expected Credit Credit Loss - Credit Loss - Loss Not Impaired Not Impaired Total Placement with Bank Indonesia and other financial institutions Carrying value beginning balance 116,854,727 - - 116,854,727 Transition to : Stage 1 - - - - Stage 2 - - - - Stage 3 - - - - Net remeasurement of allowance for losses - - - - New financial assets issued or purchased 66,539,685 - - 66,539,685 Derecognized financial assets (116,854,727) - - (116,854,727) Written-off financial assets - - - - Recovery from written-off financial assets - - - - Foreign exchange model or parameter changes and other change - - - - Carrying value ending balance 66,539,685 - - 66,539,685 December 31, 2020 Stage 2- Stage 3- Stage 1- Lifetime Lifetime 12 - months Expected Expected Expected Credit Credit Loss - Credit Loss - Loss Not Impaired Not Impaired Total Placement with Bank Indonesia and other financial institutions Balance at the beginning of the year - - - - Impact of initial application of SFAS 71 (Note 52) - - - 668 Allowance for expected credit loss beginning balance 668 - - 668 Transition to : Stage 1 - - - - Stage 2 - - - - Stage 3 - - - - Net remeasurement of allowance for losses - - - - New financial assets issued of purchased 18,070 - - 18,070 Derecognized financial assets (668) - - (668) Written off financial assets - - - - Recovery from written-off financial assets - - - - Foreign exchange model or parameter changes and other change - - - - Allowance for expected credit loss ending balance 18,070 - - 18,070 As of December 31, 2020 and 2019, there were no placements with Bank Indonesia and other financial institutions that were impaired and whose use was restricted. As of December 31, 2020. Placement with Bank Indonesia and other financial institutions are collectively impaired, while as of December 31, 2019 there were no impairment. 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 placement with Bank Indonesia and other financial institutions are collectible.