PT Bank Rakyat Indonesia (Persero) Tbk--hereinafter referred to as “the Company or BRI”—displayed a solid ability to navigate the global elevated rate environment, industry and internal challenges and asset quality adjustments and managed to record strong performance with consolidated net profit of Rp60.4 trillion, representing an increase of 17.5% YoY, while maintaining a strong capital position, sufficient liquidity and adequate loan quality. The Board of Commissioners considers that BRI’s achievements result from BRI’s success in building conservativel managing its business while enhancing valueto shareholders. For 128 years, BRI has developed as a leading bank that works as an agent of development in creating social and economic value for Indonesia. These achievements are due to BRI’s ability to maintain customer trust, even through its efforts to strengthen services and products that respond to market needs and developments in the digital era, including digital transformation, along with cultural evolution as stated in the BRIVolution roadmap. Throughout 2023, the Board of Commissioners supervised and provided feedback to the Board of Directors. In this Board of Commissioners’ Report, we have included our performance assessment of the Board of Directors, our views on the business prospects prepared by the Board of Directors, our views on the Corporate Governance implementation, as well as the structure and changes in the Board of Commissioners composition. Economic and Banking Review The global turmoil, disruption and dynamics that occurred in recent years became serious challenges for the entire world. The Covid-19 pandemic caused a multidimensional crisis that has now subsided, but still leaves a scarring effect that has been exacerbated by geopolitical tensions. Overall, world economic activity continues to experience a slowdown with high uncertainty as global economic growth in 2022 grew by 3.5%, and was predicted to continue to slow down in 2023. This can be seen in the economic conditions of a developed country such as the United States, which still grows strongly, driven by household consumption and domestic services. On the other side though, China’s economic conditions are still experiencing challenges, and returning to pre-pandemic times. The inflation rate in developed countries still experienced an upward trend during 2023, despite the potential for stagflation, but with pressure starting to subside. In response to this, monetary interest rates policies from the Fed and Central Banks of other developed countries maintained high interest rates which appear to be remaining elevated over a longer period of time (higher for longer). This was in line with the increase in government bond yields, especially US Treasuries, as a result of an increase in longterm risk premiums to meet fiscal financing needs. This financial market uncertainty led to tightening external financing, as reflected in the continued capital outflows in emerging markets, which placed financial and economic pressure on emerging markets. Despite experiencing a slight slowdown compared to the previous year, Indonesia’s economic growth through 2023 reached 5.05% YoY, showing strong growth despite the elevated global rate environment. The growth was supported domestic demand originating from household consumption and increased investment as Government spending and export declined. Sectorally, the Finance, Construction and Mining sectors recorded increased growth in 2023. However, several sectors experienced slowing growth, such as Agriculture and Fisheries, Trade and Repairs, and Transportation and Warehouse. Spatially, the region experiencing the highest growth was the Sulawesi-Maluku-Papua region. In 2024, thanks to fiscal stimulus in the form of social assistance, the continuation of infrastructure projects, and the holding of democratic elections, it is anticipated that positive sentiment will support economic growth. Board of Commissioners’ Report During the 2023 financial year, BRI recorded credit disbursement of IDR1,266 trillion, growing 11.2% compared to the previous year which amounted to IDR1,139 trillion. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 61 Report of The Board of Directors and Board of Commissioners
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