This success was realized through the support of a widespread and high quality infrastructure network. During 2023, BRI on a bank only basis operated 7,755 office networks, 686,128 electronic networks, and 740,818 BRILink Agents, and with this infrastructure, BRI has been developing a hybrid bank business model that successfully combines the development of banking digitalization while still providing conventional services to bring financial services closer to all levels of society. This business model is further strengthened by BRI’s ultra micro holding that helps to optimize increased inclusiveness. Overall, the Board of Commissioners would like to express its appreciation to the Board of Directors for the achievements achieved during 2023. Furthermore, the Board of Commissioners would like to advise the Board of Directors to always maintain effective communication and collaboration at all organization levels so that it can maintain the quality of sustainable growth while creating a healthy company culture. Strategy Formulation and Implementation Supervision The Board of Commissioners always carries out an active supervisory function on the Company’s risk-based strategy in accordance with its responsibilities and authority. Throughout 2023, the Board of Commissioners provided advice, direction and recommendations to Management based on the supervisory results in question, including the implementation of strategies, Company policies and also provided approvals in accordance with its provisions and authority. This advice, direction and recommendations provided included: 1. Strategic aspects including supervision of the strategy in each Company business segment, transformation of information technology and work networks, implementation of strengthening secondline and thirdline functions, research into regional economic potential, ultra-micro ecosystem synergy, the human capital strengthening program, product management, and progress of ESG (Environmental, Social and Governance) implementation. 2. Credit aspects, including follow-up on LaR (Loan at Risk) management, reviews of the condition of high risk debtors in each segment and product, supervision of the restructuring debtors portfolio, and reviews of the quality in the productive assets portfolio. 3. Funding aspects including supervision of BRI’s conditions and strategies in dealing with its liquidity position and securities position, supervision of conditions and strategies in raising funds and (FBI) fee-based income. 4. Policy aspects including supervision of the General Credit Policy, and initiated reviews of the Human Capital Policy, General Risk Management Policy, Governance and Compliance Policy, the Risk Appetite Statement (RAS), Recovery Plan and Resolution Plan. 5. Financial conglomerate aspects including supervision of the Holding UMi (Ultra Micro), transformations carried out by subsidiaries in line with the Company’s direction to strengthen the integrated governance framework including aspects of risk management, compliance and integrated internal audit, portfolio reviews of Subsidiaries, and the corporate action to acquire PT. BRI Danareksa Investment Management. Based on the Financial Services Authority (OJK) Regulation No: 5/POJK.03/2016 concerning Bank Business Plans, the Board of Commissioners is obliged to carry out supervision of the implementation of the Bank Business Plan that includes the management policies and strategies. The results of this supervision are stated in the Bank’s Business Plan Monitoring Report that is submitted to the OJK every semester, as follows: 1. PT BRI (Persero) Tbk Board of Commissioners Supervisory Report, Semester II 2022 Number: R.20-KOM/02/2023 Dated February 21, 2023. 2. PT BRI (Persero) Tbk Board of Commissioners Supervisory Report, Semester I 2023 Number: R.79-KOM/08/2023 Dated August 30, 2023. In 2023, the Board of Commissioners submitted the following responses to the Board of Directors on the Company’s quarterly performance achievements, including reviews of the implementation of the Company’s strategy: 1. Letter No. R.19-KOM/02/2023 dated February 21, 2023 concerning Response to the PT BRI (Persero) Tbk Performance in Quarter IV 2022. 2. Letter No. R.45-KOM/05/2023 dated May 05, 2023 concerning Response to the PT BRI (Persero) Tbk Performance in Quarter I 2023. 3. Letter No. R.85-KOM/09/2021 dated September 12, 2022 concerning Response to the PT BRI (Persero) Tbk Performance in Quarter II 2023. 4. Letter No. R.107-KOM/11/2023 dated November 07, 2023 concerning Response to the PT BRI (Persero) Tbk Performance in Quarter III 2023. View on the Business Prospects Prepared by the Board of Directors The rate of global economic growth in 2024 is predicted to continue to slow. Many challenges in the form of rising interest rates, limited space for fiscal stimulus, and limited productivity are still a threat. However, despite the uncertainty of global economic conditions, there are still factors driving the national economy, including the potential for increased Government spending, the continuation of infrastructure projects and the general election in 2024. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 64
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