Corporate Social Responsibility Through business unit spread throughout Indonesia, BRI committed to community development and environmental preservation activities in order to achieve the Sustainable Development Goals through implementing the Social & Environmental Responsibility Program under the BRI Peduli brand. The implementation of BRI Cares in Social Environmental Responsibility was guided by the Triple Bottom Line concept, namely Pro People, Pro Planet and Pro Profit in line with the company’s social values and business values and in line with BRI’s Environmental, Social & Governance (ESG) strategy. BRI Peduli prioritized focusing on the fields of Education, Environment and Micro and Small Business Development. The activities carried out included building schools in disadvantaged, frontier and outermost areas, scholarships for the children of Micro and Small Business actors in BRILiaN Village, urban farming in densely populated areas (BRInita), waste management in leading markets and community waste bank (Yok Kita GAS- AntiWaste Movement), planting mangroves, productive trees and coral reefs (BRI Menanam) as well as increasing the capacity of women’s business groups (Women Empowerment). Through BRI Peduli, BRI strived to implement programs that were integrated, targeted and had measurable impacts so that they could provide wider benefits for society and the environment. Obstacles Faced by The Company This solid performance could not be separated from the various challenges faced during 2023. The unfavorable geopolitical conditions, the reference interest rates at most central banks, which were still stuck at high levels, also affected the financing market, which ultimately contributed to suppressing the rate of global economic growth. Apart from that, the competitive map changed along with the massive development of financial technology and competitor innovation. Internally, BRI still faced the challenge of optimizing performance related to the company’s capabilities in accelerating retail and consumer businesses, Subsidiary Company businesses, as well as controlling costs. BRI’s performance in general was still supported by loan activities, so the ability to generate non-interest income still needed to continue to be improved. Based on these things, during 2023 BRI took several strategic steps, namely as follows: 1. CASA Sustainability Increasing CASA market share, by developing the ecosystem through territorial control & referrals relying on transaction tools & cash in/cashout capability; 2. Focus on Quality of Growth Productive assets grew with maintained quality focusing on assets with high returns and acceleration of new sources of growth; 3. Optimizing Subsidiary Company Synergies Acceleration of increasing the business scale of Subsidiary Companies either through synergy or independently and expanding the scope of the Parent Entity’s business, completing the Post Implementation Plan for UMI as a source of new growth in line with the implementation of BRI one culture; 4. ESG Principle Implementation Committed to implementing business management principles that follow the values of good business governance to have a positive impact on the environment (deliver value beyond profit); 5. Excellence Enablers Continuing to strengthen worker capabilities, system reliability, services and networks, as well as analytical data to provide superior quality banking services Important Things Expected to Occur in the Future and Business Prospects Global economic developments were still shrouded in uncertainty and tend to experience pressure. Projections from the International Monetary Fund/IMF (October 2023) and the Organization for Economic Cooperation and Development/OECD (September 2023) showed that global economic growth in 2023 was lower than the previous year. Furthermore, global economic growth in 2024 was also expected to slow further. The estimated slowing economic pace actually started to be reflected in a decline of several global macroeconomic indicators. Until September 2023, there were at least four indicators that reflected the rate of global economic slowdown, namely: (1) The movement of the Purchasing Manager Index (PMI) which had slowed down since May 2023, especially the manufacturing PMI which was in the contractionary zone, (2) A decline in the rate of exports in various major countries such as China and the US, which implied a decline in world demand, (3) A decrease in active job vacancies in various countries, which implied a decrease in production activity, and (4) The rate of decline in the Leading Economic Indicator (LEI) in various major countries in the world. Of these four factors, the decline in the LEI became one of the main indicators indicating that the pace of the global economy might slow down further in the future. Indonesia’s economic growth in 2024 was predicted to remain strong, but it would slow down slightly compared to 2023. This was shown by the movement of Indonesia’s LEI which decreased and grew contractively. Some of the challenges that will be faced during 2024 include global economic growth to continue PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 53 Report of The Board of Directors and Board of Commissioners
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