Company Performance In 2023, the Company had aspirations to continue to grow stronger and greater by remaining focused on growing in the MSME segments and continuing transformation on the liability side to encourage increasingly sustainable performance and continue to provide value, both economic and social value to all stakeholders. In responding to global and national economic conditions as well as banking industry conditions, BRI has established strategic strategies and policies. In formulating strategies and strategic policies, the Board of Directors plays a role in reviewing, directing and approving the established strategies. The Board of Directors always ensures strategy implementation through various directions in various meetings, approval of the Company’s operational decisions and review of the Company’s reports. Strengthening Retail Banking Capabilities Carrying the theme of strengthening retail capabilities, the Company had aspirations to transform its liabilities by strengthening its funding base with a focus on low-cost funding from CASA. CASA acquisition was encouraged through transactions so that it could be more sustainable. Apart from that, the Company optimized its pyramid of segments from micro to corporate to become one ecosystem and funding turnover flow through the creation of an integrated value chain. Encouraging Customer Graduation In 2023, the Company succeeded in recording strong growth in commercial loan products in the micro segment, namely Kupedes. The strong growth in Kupedes products was in line with the company’s aspirations to continue to encourage customers to upgrade to higher segments in line with increasing business capabilities. Strengthened Risk Management BRI committed to continuing to maintain asset quality by continuing to perfect the risk management system, including through developing a more comprehensive early warning system, using dynamic Repayment Capacity (RPC), developing loan officer capabilities, as well as improving credit risk scoring and value chain-based pipeline management integrated with BRISPOT to encourage more prudent loan distribution. BRI Group Synergy Strengthening business and non-business synergies among entities under the BRI group, both between BRI Parent and Subsidiary Companies and among Subsidiary Companies to support improving the company’s overall performance. Crossselling, funding synergy and increasing human capital capabilities through career mobility programs were the steps performed by BRI. In the midst of macroeconomic challenges, BRI was able to maintain solid business growth throughout 2023. BRI still provided optimal values, both economic and social values, for all of the Company’s stakeholders, and continued to be on the right track to achieve the Company’s 2025 vision of becoming The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion. The Company’s Financial Performance As of December 31 2023, BRI’s consolidated total assets were able to grow 5.3% to IDR1,965 trillion, driven by loans and financing, which reached IDR1,266 trillion or grew by 11.2% year on year. BRI consistently continued to distribute loans and financing to the Micro, Small and Medium Enterprises (MSMEs) segment which reached 84.39% of BRI’s total loans and financing distribution, or IDR1,069 trillion, in which BRI’s flagship segments, namely Micro and Ultra Micro, contributed 48.26% of total loans and financing. In the long term, BRI will continue to be committed to increasing this composition to 85%. The growth in loans distribution and financing to the MSMEs segment could not be separated from the main contribution of Ultra Micro Holding which consisted of BRI, Pegadaian and PNM formed since September 2021. Pegadaian loans were able to grow 14.43% to IDR67.6 trillion, while PNM loans grew 10.58% or IDR47.1 trillion. On the other hand, BRI’s Micro and Ultra Micro loan segments were able to record solid growth of 10.44%, or to IDR496.6 trillion. The growth in BRI Micro segment loans were supported by the growth of BRI’s commercial micro product, namely Kupedes, which year on year was able to grow aggressively by 64.32% or to IDR212.3 trillion. Kupedes’ strong growth was in line with the company’s aspirations to encourage customer graduation to commercial products in line with increasing business capabilities, as well as making KUR products the spearhead for increasing more inclusive financing by providing access to financing to customers who had never received commercial financing facilities. In 2023, BRI distributed KUR amounting to IDR163.3 trillion, decreasing from the previous year of IDR252.4 trillion, in line with the reduction in the quota provided by the Government in 2023, namely IDR194.4 trillion. However, BRI remained committed to be the Government’s main partner in KUR distribution. Growth in the MSMEs segment was also supported by impressive growth in the Consumer segment which posted an increase of 13.4% year on year to reach IDR190.0 trillion. Growth in the consumer segment was mainly driven by BRIGUNA and Mortgage products, which respectively grew by 10.5% and 17.0% year on year. Development of digital-based products and services was also significant, including the presence of BRIGUNA digital which contributed 62.75% of the total new BRIGUNA customers. Apart from that, BRI also continued to support the government’s program to encourage home ownership rate by distributing 23,241 FLPP Mortgage units in 2023. The SME segment also recorded good momentum with selective growth of 8.6% year-on-year. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 49 Report of The Board of Directors and Board of Commissioners
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