BRI Performance Highlights and Green Initiatives

CEO MESSAGE Targeting Sustainable Growth in a Higher Rate Environment Sunarso, CEO BRI The Indonesian government has done excellent work through its measures to safeguard and stabilize the domestic economy from the lingering effects of the pandemic and the pressure of surging global inflation. The improving trend continues to receive support from strong domestic demand as GDP Growth in 2022 already surpassed the pre pandemic 2019 level. Moreover, inflation has gradually begun to decline after a modest increase due to pressure from the fuel price increase, while leading macro indicators such as CCI and PMI persistently remained in optimistic territory. Furthermore, the BRI MSME Business Index remains in optimistic territory as the government has announced the discontinuation of Covid-related movement restrictions. The improved condition has enabled Indonesian banks to perform positively and deliver strong results. Correspondingly, BRI has reported stellar performance. Micro lending's composition increased to 48% from 40% of our total loans with the integration and ongoing synergies of the Ultra Micro (UMI) Holding. Throughout the year, our loan quality improved, and our balance sheet, shown by provisioning level remained conservatively positioned. Moreover, liquidity remains ample as our LDR stands at 78.82%, with well- controlled OPEX and positive subsidiaries contribution producing solid double-digit net profit growth of 67.1%, reaching an all-time high of Rp51.4 trillion. While conditions continue to improve, we remain cautious on upcoming challenges. From a macro standpoint, there remain uncertainties due to inflation, higher interest rates globally, geopolitical tension, and supply chain disruptions that could potentially lead prognosticators to forecast a global economic slowdown in 2023. Nevertheless, we maintain our optimism for 2023. In our view, the Indonesian economy will remain resilient, supported by strong domestic consumption from recovering economic activities and the optimism of MSME's to support economic expansion. We continue to strive towards sustainable growth. First, we have secured a new source of growth through the UMi Holding Company that provides growth opportunities on assets, liabilities, and revenues. This will further strengthen our core capabilities in micro as we rebalance the growth of Kupedes as a commercialization strategy for KUR. This is in line with the government's aspiration to migrate KUR borrowers to Kupedes. Second, we maintain a strong capital position that will support our business' growth and deliver optimum returns to shareholders, including through an elevated dividend payout ratio in the near term. Third, we have ample liquidity and continue to progressively transforming our funding structure to increase our CASA Ratio and lower our COF. In 2023 we will focus on shifting Micro growth to Kupedes, strengthening our retail banking capabilities, which are highly important to connecting all segments as an integrated ecosystem. Fourth, we maintained our asset quality through a proper risk management strategy as our LAR declined, with coverage already returning to pre-pandemic levels. Lastly, we continue to improve our ESG implementation with the aspiration to become a World Class Sustainable Banking Group focusing to become a leader on Environmental, Social, and Governance issues. 3

View entire presentation