to slow, the potential for increased inflation from supply chain disruption due to global economic uncertainty and the El-Nino phenomenon to continue until mid-2024, and monetary policy to remain tight in line with high central bank interest rates in developed countries. On the other hand, in the short term there were several driving factors supporting national economic growth, including the potential for increased government spending to support slowing public consumption, the continuation of various infrastructure projects which were delayed due to the pandemic, the potential for domestic and foreign investment in the energy and commodity sectors, as well as the general election in 2024. With these various conditions, Indonesia’s economic growth was estimated to grow by 4.89-5.18% in 2023 and 4.81-5.10% in 2024. By considering various economic conditions, BRI continues to strive to respond with various policies that will be implemented by the company to support the achievement of a sustainable business. BRI Group continues to strengthen its internal capabilities by carrying out continuous transformation in the pillars of its business growth strategy, especially the Micro, SME, Consumer and Subsidiary Company segments, while still paying attention to Good Corporate Governance and risk control. BRI’s future business performance will still be supported by credit activities so the ability to generate non-interest income still needs to be improved. BRI’s innovation and exploration of new sources of growth have implications for the company’s increasingly complex business. Internal dynamics and the business environment require BRI to be agile in responding to challenges so as to be careful in optimizing business opportunities both now and in the future. So, oriented towards the Company’s longterm aspirations, BRI will continue to focus on strengthening retail banking capabilities as a strategic priority in 2024 with the following: 1. More productive management of assets & liabilities Continuing stable and sustainable CASA accumulation, selective expansion in assets with high yields, as well as improving asset quality in the Micro and Small segments. 2. Diversify sources of growth Encouraging stronger revenue generation through strengthening the capabilities of the Retail segment (Consumer, SME), focusing on integrating the UMI holding, as well as strengthening the business of Subsidiaries as a source of consolidated growth. 3. Reliability of operational support Focus on strengthening Human Capital competencies and digital capabilities, improving customer experience, risk management and data analytics, as well as operational excellence. 4. Implementation of ESG principles Committed to managing business in line with the principles of good business governance in order to provide positive value for the environment (deliver value beyond profit). These strategic responses will encourage BRI to continue to grow sustainably to realize BRI’s vision as ”Most Valuable Banking Group in South East Asia & Champion of Financial Inclusion”. Corporate Governance The Company’s performance achievements showed the result of implementing good corporate governance effectively and efficiently. BRI ensured that the five GCG principles, namely transparency, accountability, responsibility, independence and fairness, had become the basis for implementing the Company’s business. These five principles were implemented through fulfilling the interests and fair treatment of the Company’s stakeholders; disclosure and transparency of Company information; as well as the function of monitoring and providing advice to the Board of Directors as a part of the duties and responsibilities of the Board of Commissioners. BRI continues to be committed to improving and perfecting the implementation of good corporate governance on an ongoing basis. Active participation from the company’s Top Management and all Insan BRILian is a driver in realizing good corporate governance in the Company. BRI’s commitment to governance is proven through internal evaluations or recognition from independent third parties. The results of this evaluation are positive input for the company in improving the implementation of sustainable governance. Fulfillment of Shareholders’ Rights The Company always dedicates to providing protection, transparency and added value to shareholders, as owners of the Company. For this reason, the Company continued to be committed to providing fair and equal access to information to all shareholders, formulating a fair and consistent dividend policy, paying special attention to the rights of minority shareholders, complying with applicable regulations and obligations, and continuing to strive to increase shareholder value by implementing sustainable growth strategies, product and service innovation, and operational efficiency to achieve optimal financial results. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 54
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