7. Optimizing available cash funds and diversifying funding sources from both the capital market and banking and the government through the Government Investment Center was expected to reduce overall loan interest rates. 8. Increasing productivity and competency of human resources, to support the empowerment of female customers who are ultra-micro business entrepreneurs and micro-small business entrepreneurs, PNM was optimizing education and training programs carried out both offline and online with the aim of increasing competency, especially for millennial and female employees to support increased productivity employees as a whole in achieving PNM targets. PT Permodalan Nasional Madani Competitive Advantage and Innovation PNM was founded in 1999 with the vision of becoming a leading financing institution in increasing added value in a sustainable manner for micro, small, medium and cooperative enterprises (UMKMK) based on the principles of Good Corporate Governance (GCG), the main focus of which is currently the empowerment of women entrepreneurs. ultra micro business. By the end of 2023, through 4,552 service offices spread across 513 districts/municipalities and 34 provinces, PNM empowered more than 15 million female customers who were ultra-micro business entrepreneurs and more than 118 thousand MSE customers. In order to encourage increased business capacity of customers, PNM also emphasized empowerment activities through providing business assistance and training to customers in addition to providing capital. Apart from that, PNM also supported the Sustainable Development Goals program, including financing to improve the quality of sanitation and clean water as well as financing for renovation of customers’ business facilities/ infrastructure, and PNM also played an active role in various social and environmental responsibility activities. The use of technology and information was also carried out to improve services to customers and support business and operational activities towards digitalization so that performance productivity could be increased, apart from that, with the existing Ultra Micro Holding synergy, services to customers could be improved. Business Activity Achievement Strategy In order to achieve performance targets by the end of 2024, PNM plans to expand the Mekaar unit office service network. Management is also trying to improve the quality and competence of human resources, especially account officers, so that they can support the sustainability of PNM. In 2024, the company’s main business will continue to be focused on providing group-based financing to female ultra-micro entrepreneurs through PNM Mekaar, with potential that is still quite large and has not yet been exploited optimally. On the other hand, the existence of an ultra-micro holding provides opportunities for business synergy which leads to improved service to customers through diversification of existing products as well as achieving the company’s overall business targets. Apart from distributing financing, PNM also carries out empowerment activities through business assistance, training for customers, and the formation of customer business clusters to help customers increase their business capacity. This is expected to be able to increase the customer retention rate and the percentage of customers who continue to become bank entrepreneurs. This strategy is expected to be able to increase customer retention thereby supporting an increase in the number of customers and overall growth in both conventional and sharia financing receivable balances. At the end of 2024, it is projected that PNM’s financing will still be able to grow double digits, with an increasing focus on Mekaar group financing, while Ulaam’s individual financing will be aligned with BRI. PT Permodalan Nasional Madani Strategic Initiatives in 2024 In 2024 PT Permodalan Nasional Madani implements several key strategic initiatives as follows: 1. The company will expand product beneficiaries by mapping and accelerating units that have the potential to target potential customers to increase productivity, as well as carry out product innovation by increasing companion products. 2. Strengthening empowerment activities for Mekaar customers by providing digital literacy programs to increase understanding and knowledge of digital technology for customers’ business capabilities with digital marketing, customer business development literacy to accelerate sales and financial literacy for opening savings accounts. 3. Innovate the Mekaar group meeting process (PKM) to increase productivity and efficiency of business processes. 4. Increasing the IT maturity index by building a cloudbased technology architecture, building data lakes and activating use case analytics as well as strengthening the organization and IT management functions. 5. Strengthening Corporate Governance by measuring GCG and CGPI, Measuring Maturity Compliance and Corporate Governance, and Digitizing Compliance and Governance in policy and reporting repositories. 6. Increasing the productivity and competence of human resources, by supporting the role of women and the millennial generation in strategic positions and leadership cadres. 7. Strengthen the end-to-end digitalization process in Mekaar’s operational and business processes to drive efficiency. 8. Strengthen the organization and function of the Internal Audit Unit (SPI) to improve supervisory capabilities. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 257 Management Discussion and Analysis on Bank Performance
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