The Board of Commissioners view is that in general the business prospects presented by the Board of Directors in the Bank’s Business Plan 2024 - 2026 were quite relevant. In order to strengthen BRI Group’s internal capabilities, the business prospects are also good, appropriate and in line with the journey that the Company has prepared through Brivolution 2.0. 2023-2024 is the “Scale Up and Sope Up” stage with the aspiration to “Scale Up New Growth Engine and Beyond Banking”. In 2023, BRI’s efforts included realizing the aspirations to prioritize “Strengthening Retail Banking Capabilities”. In 2024, BRI targets increasing contributions from subsidiaries and becoming a bank that leads in banking financial transactions through digital products and services. With good fundamental support and a strong commitment to provide financial services with superior capabilities so they become a one-stop digital platform solution for customers, the Board of Commissioners believes that BRI will take advantage of the opportunities in the banking industry well. In line with these aspirations, the Board of Commissioners always calls for sharpening the focus of transformation in the main areas, namely digital and human capital. In an effort to develop these fundamentals, the Board of Commissioners has conveyed to the Board of Directors that all BRI personnel, especially those who deal directly with customers, receive adequate provision and training so that they can provide optimal services in accordance with the standards set by BRI. In the human capital aspect, the Board of Commissioners encourages strengthening the quality of human capital down to subsidiaries so they have the competitiveness and become major players in each industry, including optimizing talent mobility as a form of knowledge transfer. Then, a strong commitment to digital transformation is also carried out through adaptation of innovations and technologies such as artificial intelligence (AI), big data analysis and digital banking services. The Board of Commissioners urges BRI to always be customer centric, so that all innovations and improvement efforts undertaken can answer customer needs. Regarding the business prospects that have been prepared by the Board of Directors, the Board of Commissioners approved the 2023 Budget and Company Work Plan prepared by the Board of Directors taking into account the global and domestic economic conditions, as well as relevant macroeconomic assumptions. The Board of Commissioners approved and provided direction and recommendations through Board of Commissioners Letter R. 111-KOM/11/2023 dated November 28, 2022 concerning Approval of the Proposed Bank Business Plan (RBB) for 20242026, and BRI’s Corporate Budget Work Plan (RKAP) for 2024. View on the Bank’s Governance Implementation BRI is committed to always implementing good corporate governance (GCG) at all levels of the organization that refers to regulations and best practices for implementing the relevant corporate governance in the financial industry, so that it can support the achievement of sustainable performance. In carrying out its supervisory function, the Board of Commissioners strives to ensure that the Board of Directors’ management is in accordance with applicable laws and regulations and provides the necessary advice on every strategic action in order to achieve the Company’s objectives. BRI has improved the governance aspects by improving policies, improving management processes and optimizing results that has had an impact on increasing BRI’s value in the eyes of stakeholders. The improvement of these aspects can be seen in the recognitions received from independent parties regarding the governance implementation at BRI. Supervision of governance is reflected through input on policies and processes including the anti-bribery management, WBS management and the effectiveness of compliance culture systems. BRI also intensively monitors the recommendations given by the Board of Commissioners to the Board of Directors through digital dashboards and effective communication with each person responsible for following up on recommendations. As a step to evaluating and assessing GCG internally, BRI is guided by POJK Number 17 of 2023 concerning the Governance Implementation in Commercial Banks, SEOJK No. 17 of 2017 and other applicable regulations. Evaluation and assessment by internal parties is carried out through self-assessments each semester. The self-assessment results then become part of the Bank’s health level assessment, which is submitted to the regulator. BRI also pays attention to independent governance evaluations and assessments from external parties. The Bank Health Level consists of four assessment factors, Risk Profile, GCG, Profitability and Capital. BRI Bank’s Health Level Rating in semester II/2023 received a composite rating of 2 (healthy), meaning that the Bank’s condition is generally healthy, so it is considered capable of facing significant negative influences from changes in business conditions and other external factors. The Composite Ranking has not changed compared to Semester I/2023. The Bank Health Level Assessments are reported to the regulator (OJK) every semester covering the June and December periods. PT Bank Rakyat Indonesia (Persero) Tbk. 2023 Annual Report 65 Report of The Board of Directors and Board of Commissioners
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