Spot and Derivative Transactions Spot transactions and derivative transactions refer to a risk management system that complies with provisions and best practices. All derivative transactions carried out are intended for the interests of BRI and customers. Most of the spot and derivative transactions carried out by BRI are hedging activities for customer positions which aim to protect the value of asset portfolios denominated in foreign currencies and also hedge against interest rates. In this case, BRI’s focus in derivative transactions is not for trading purposes. Throughout 2023, BRI conducted spot transactions and derivative transactions in the form of currency and interest rate swaps, interest rate swaps, options, buying and selling of foreign currency forwards, foreign currency swaps, buying and selling of foreign currency spots. In detail, spot and derivative transactions conducted by BRI (Consolidated) can be explained in the following table. Table of Spot and Derivative Transaction (in IDR million) Transaction Derivative Bills Derivative Liabilities 2023 2022 2023 2022 Foreign currency swaps 223,308 194,939 403,003 118,076 Forward buying and selling of foreign currency 284,050 153,074 108,496 134,666 Interest rate swaps 381,607 548,024 369,374 510,221 Currency swaps and interest rates 18,045 - 37,444 - Spot buying and selling of foreign currency 4,673 15,368 6,893 20,958 Total 911,683 911,405 925,210 783,921 Report on Additional Use of State Capital Inclusion (PMN) Based on the Regulation of the Minister of State-Owned Enterprises of the Republic of Indonesia Number PER-2/ MBU/03/2023 concerning Guidelines for Governance and Significant Corporate Activities of State-Owned Enterprises Additional State Capital Participation (PMN) is the separation of state assets from the state revenue and expenditure budget which is used as capital of SOEs and/or Limited Liability Company and managed corporately. In accordance with the provisions in Article 110 PER-2/MBU/03/2023: (1) Additional PMN is carried out with the aim of: a. Improving the capital structure of SOEs or Limited Liability Company; and/or b. Increasing the business capacity of SOEs or Limited Liability Companies (2) Additional PMN to SOEs as intended in paragraph (1) is used in the context of: a. Carrying out Government assignments to SOEs; b. Carry out restructuring and/or rescue of SOEs; and/or c. Carry out SOEs business development In 2023, BRI did not receive additional State Capital Participation (PMN), so there is no information on the Report on the Use of Additional State Capital Participation. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 397 Management Discussion and Analysis on Bank Performance
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