to channel financing and business expansion selectively, as well as exploring new growth engines through optimizing single gateway auto loans. The company will maintain a funding diversification strategy to reduce the cost of funds and provide a competitive offering rate for its debtors. From the service side, BRI Finance will maximize the business value chain through strategic partnerships and developing various platforms to encourage digital channel transactions such as the myBRIf application, new mobile orders and others. Apart from that, it is a form of strengthening other excellence enablers, especially human capital, culture, distribution channels and risk management. As one of the maximum Good Corporate Governance (GCG) measures, BRI Finance strengthens risk management and compliance to ensure that the distribution of financing provided by the Company remains prudent and well monitored. The synergy carried out by BRI Finance together with business groups continues to be maximized both on the business and non-business side through sharing resources, data integration and exploring new ecosystem segments. To achieve BRI Finance’s aspiration, namely to be included in the category of finance companies with total assets above IDR10 trillion in 2024, the development of business operational support systems in terms of information technology that BRI Finance will carry out is as follows: a. Decision Engine Development BRI Finance’s commitment to maintaining asset quality is developed through a digital platform to simplify and speed up the process of distributing financing to debtors, especially in terms of checking debtor profiles. Some of the developments carried out are in the form of automation of several categories of decision making, including the Financial Information Services System (SLIK), Optical Character Recognition (OCR) and identity verification, Electronic Know Your Customer (e-KYC) and the List of Suspected Terrorists and Terrorist Organizations, calculation of Debt Service Coverage Ratio (DSCR), credit scoring and digital survey. b. Company Application Enhancement (myBRIf) On an ongoing basis, BRI Finance is developing the BRI Finance digital application which can be accessed directly via each user’s device. Apart from that, BRI Finance will make myBRIf a digital lead system/digital lead engine. In 2024, developments that will be carried out include: remapping roles (guest, registered public debtor, dealer/showroom, agent and marketer), simplifying dealer and showroom registration, as well as integrating myBRIf and NEMO. c. High Yield Segment Credit Scoring Development BRI Finance continues to strive to maintain asset quality by focusing on controlling the non-performing financing ratio and strengthening risk management enablers and infrastructure. In line with the strategy of recomposing consumer financing to the high yield segment, BRI Finance is developing credit scoring for the used car and refinancing segments as an effort to strengthen risk management enablers. d. Automatic Write Off Implementation As a form of controlling the non-performing financing ratio, in 2024, BRI Finance will implement automatic write off for consumer portfolios with overdue > 180 days. As BRI Finance’s full support for the national green economy policy, BRI Finance also directs its business focus to sustainable finance through the implementation of environment, social and governance (ESG), so that the Company not only grows but also cares about business sustainability and the environment. Until September 2023, BRI Finance has distributed financing for more than 250 units of electric and hybrid vehicles. In 2024, BRI Finance will present superior programs specifically for electric and/or hybrid vehicles to tap into the environmentally friendly vehicle sales market. Repeating the success of the previous product marketing strategy, the joint marketing campaign will continue to be used by the Company to increase its financing portfolio, especially multipurpose financing. Promotional activities for financing products carried out in 2024 will be expanded to conventional networks and digital platforms through collaboration with several media in addition to offline promotional collaboration with dealers and suppliers. Through the network and ecosystem owned by the business group, BRI Finance will more easily reach debtors more widely and maintain engagement with debtors. The composition of BRI Finance’s portfolio in 2024 will continue to be dominated by multipurpose financing. On the other hand, BRI Finance’s distribution of investment financing and working capital will continue to grow prudently and healthily by paying attention to the principles of healthy financing distribution and in accordance with regulations. This aims to strengthen risk management and maintain the quality of BRI Finance assets. Furthermore, with the more challenging economic situation and conditions in 2024, investment financing and working capital will continue to contribute to healthy, quality and sustainable growth through initiative and innovation strategies both with new sources of growth and existing and value chains customers. PT BRI VENTURA INVESTAMA (BRI VENTURES) PT BRI Ventura Investama (BRI Ventures or the Company) is a subsidiary of PT Bank Rakyat Indonesia (Persero) Tbk engaged in venture capital. BRI’s share ownership in BRI Ventures reaches 99.97% of the total shares issued by the company, while 0.03% is owned by the BRI Workers Welfare Foundation. BRI Ventures has aspirations to become a leading Corporate Venture Capital achieved through investing in companies that have high growth potential (startups), with broad market potential, solid risk management and founders who have sufficient experience in running their business. This is aligned with helping the BRI Group develop products and services that make it easy for users (customer-centric). BRI Ventures will invest in technology companies both within the scope of financial services (Fintech) and other business sectors (Non-Fintech). PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 251 Management Discussion and Analysis on Bank Performance
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