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                                                                    Annual Report 2023




PT Bank Tabungan Negara (Persero) Tbk (hereinafter    Hero Campaign, namely Life is Not Only About
referred to as the Company or Bank BTN) is            Today. Bank BTN invites millennials to develop
implementing a breakthrough product development       their businesses bigger and realize that now is the
strategy to capture opportunities arising from the    time to own a house while still living their lifestyle
demographics of the Indonesian population which       without having to worry about the mortgage they
is dominated by Gen Z and millennials. This is        have. The development of the housing business in
realized by developing Bank BTN features and          the first home buyer segment as Bank BTN’s captive
services in owning a house, investing and preparing   market is expected to be able to encourage business
digitally integrated retirement funds through its     growth for the next 10 (ten) years.




                                             KARENA HIDUP
                                             GAK CUMA
                                             TENTANG HARI INI




                                                         PT Bank Tabungan Negara (Persero) Tbk            1
Page 4
Theme
Continuity




                                 2022                                                                2021
                                ANNUAL REPORT                                                        ANNUAL REPORT




Development of Housing                                               Transformation
Ecosystembased Business                                              Towards The Best Mortgage Bank
Transformation and Digitalization

PT Bank Tabungan Negara (Persero) Tbk (hereinafter referred to       Bearing the spirit of transformation in a sustainable business
as “the Bank”, “the Company”, or “BTN”) has been developing          growth, PT Bank Tabungan Negara (Persero) Tbk has confidently
business transformation that involves transforming branch offices’   passed through 2021 while executing its vision and mission. With
operating models, developing Strategic Business Unit (SBU)           robust fundamentals built throughout 2021, Bank BTN’s journey
structures, transforming human capital to support business plans     going forward has been strengthened towards the transformation
and improving capabilities of the employees to achieve the           “To Be The Best Mortgage Bank in Southeast Asia by 2025”.
2025 Visions, as well as developing housing loans (hereinafter
referred to as KPR) for the millennials through Transit Oriented     This year, the Company will continue improving the existing
Development (TOD) concept.                                           banking services. Disruptions by the COVID-19 pandemic has
                                                                     given the Company opportunities to enhance digital service
In line with business transformation, the Company has been           performance such as banking from home and mobile banking
enhancing its digitalization capability in developing housing        applications, in addition to creating variations of housing loan,
ecosystem-based business by expanding the value chain of the         cash management and savings products to increase customers’
housing business. This expansion is conducted by establishing        loyalty.
a one-stop shop financial solution, a comprehensive banking
service for commercial SMEs, corporates and institutional            since its founding, the Company has also been serving as the
customers. In the end, business transformation and housing           Government’s partner in supporting the economy, particularly
ecosystem-based digitalization has been able to improve the          as the agent of development by distributing over IDR640 trillion
Company’s performance as expected by the stakeholders.               loans to more than five million Indonesian people of all segments
                                                                     while continuously make the endeavor to become a leader and
                                                                     innovator amidst the national banking competition.




2           PT Bank Tabungan Negara (Persero) Tbk
Page 5
                                                                                            2023 Annual Report




                                 2020                                                                  2019
                                ANNUAL REPORT                                                         ANNUAL REPORT




Growing Sustainably                                                  Home for
During The Pandemic                                                  Indonesian Millennials


2020 became a year full of challenges and struggles that has         The large population of Indonesia, reaching 270 million people,
forced us to adapt to the “New Normal”. PT Bank Tabungan             is a huge asset for the Indonesian economy. Even more, with
Negara (Persero) Tbk. Was determined to strengthen our               a demographic bonus that predicts approximately 20% of them
innovations/integrity to build an excellent business by              are aged 20-44 years old, Indonesia is a country with a very
establishing focus and strategic initiatives that became reference   potential asset: a population with high number of productive age
in restoring and spur the Company’s business going forward. For      people.
the Company, the COVID-19 pandemic became a motivation to
spur its performance, improve business processes and develop a       As a banking institution that focuses on the housing finance sector,
number of strategies. Company. also strengthened collaboration       Bank BTN tries to be part of the solution to address challenges
and synergy with business partners. This has helped boosting         related to providing housing for Indonesian people. This includes
the distribution of lending, increasing third party funds and        housing needs for the “Millennials”, a term for Indonesia’s
noninterest income and improving banking services to the             productive generation.
customers through various digital innovations such as BTN
Mobile Banking, BTN Properti Portal, Rumah Murah BTN Portal,         Bank BTN’s focus to become a savings bank in the housing
BTN Solusi and Batara Spekta Program.                                finance sector is the agenda that will be prioritized going
                                                                     forward. With the huge market potential of millennials, Bank BTN
In the midst of COVID-19 pandemic business process,                  hopes to become a partner in the housing and property industry
improvement at the Company was capable to gain great                 ecosystem, while simultaneously providing added value to the
results. The Company’s profit exceed the target set with growth      shareholders and all stakeholders.
reaching 655.71% compared to last year’s position. Third party
funds also increased over 23.78% compared to last year. The
financial performance became an evidence that in the midst of
pandemic, the employees kept giving their best performance to
the Company.




                                                                         PT Bank Tabungan Negara (Persero) Tbk                        3
Page 6
Table of
Contents
Themes and Themes Explanation             1    Table of Contents                   4    Milestones                               8
Theme Continuity                          2    Company at a Glance                 7    Our Best Contributions                  10




Performance Highlights
Important Performance Achievements                Corporate Action                27    Company Rating 2023                     32
                                         16
in 2023
                                                 Temporary Termination of Stock         Corporate Analyst Report                34
Key Financial Highlights                 18      Trading (Suspension) and/or      29
                                                 Stock Registration Delisting           Important Events in 2023                35
    Financial Highlights and Financial
                                         18
    Ratios                                     Bond, Sukuk and/or Convertible
                                                                                  28
                                               Bond Information
    Operational Overview                 24
                                               Other Funding Source Information   30
Stock Price Information                  25


Report of Directors, Board of Commissioners
and Board af Sharia Supervisory
Board of Directors Report                44    Board Of Sharia Supervisory’s            Accountability of Annual Report
                                                                                  72                                            76
                                               Report                                   2023
Board of Commissioners Report            62



Company Profile

Company Identity                         80    Organizational Structure           118     Composition of Community
                                                                                                                                172
                                                                                          Shareholders Less Than 5%
Names And Addresses of Regional                Board of Directors Profile         120
Offices, Conventional Branch             82                                               Shareholding by The Directors
                                               Board of Commissioners Profile     134                                           173
Offices and Sharia Branch Offices                                                         and Commissioners

Business Partner Networks                88    Sharia Supervisory Board Profile   145     Shareholding by Senior
                                                                                                                                174
                                                                                          Management
Company Brand                            91    Executive Officers Profile         150
                                                                                          Shareholders Classification           175
Company at A Glance                      92    Employee Profile                   168
                                                                                        Major and Controlling Shareholders      175
    Description of Name Change           93      Employee Composition by
                                                                                  168
                                                 Gender                                 List of Subsidiaries, Associated
Company Vision, Mission and                                                                                                     175
                                                                                        Entities and Joint Venture Companies
                                         94      Employee Composition by
Corporate Culture                                                                 168
                                                 Organizational Level                   Bank Business Group Information         175
    Vision                               94
                                                 Number of Employees Based by           Corporate Group Structure               176
                                                                                  169
    Mission                              95      Age Range
                                                                                        Stock Listing Chronology                176
    Review of Vision and Missions by             Employee Composition by
                                                                                  169   Chronology of Issuance and/or
    the Board of Commissioners and       95      Education Level
                                                                                                                                178
    Directors                                                                           Listing of Bonds and Other Securities
                                                 Number of Employees by
                                                                                  169   Information on The Use of Public
    Corporate Culture                    96      Employment Status
                                                                                        Accounting and Public Accounting        188
Business Activities                      100     Employee Composition by Years          Office Services
                                                                                  169
                                                 of Service
    Business Activities According to                                                    Name and Address of Supporting
                                               Shareholder’s Composition          170                                           188
    the Articles of Association and      100                                            Institution and/or Professional
    Business Activities Conducted
                                                 Composition of the 20 Biggest          Awards and Certifications               193
                                                                                  171
    Products and Services                101     Shareholders
                                                                                        Information Available on the
                                                 Shareholders Composition 5%                                                    203
Association Membership                   115                                      172   Website
                                                 or More
Operational Area                         116




4             PT Bank Tabungan Negara (Persero) Tbk
Page 7
                                                                                         2023 Annual Report




Management Discussion and Analysis on Bank Performance

Economic Overview                      206     Ability to Pay Debts               280         Achievement of Targets 2023        298
  Global Economic Analysis             206     Collectability of Receivables      283         Future Targets                     301
  Indonesian Economic Analysis         206   Fund Interest Rate                   284       Evaluation of Long Term Plan (RJP)   304
  Banking Industry Analysis            207   Prime Lending Rate                   287       Dividend Policy, Announcement
                                                                                                                                 305
                                                                                            and Payment
  Housing Industry Analysis            208   Productive Assets Quality Analysis   287
                                                                                            Realization of Use of Proceeds
  Analysis of the Bank’s Position in         Fee-Based Income Growth                                                             306
                                       209                                        290       from Public Offering
  Banking Industry                           Acceleration
                                                                                            Material Information Regarding
Operational Overview                   212   Growth in Digital Transaction                  Investment, Expansion,
                                                                                  290                                            307
                                             Volume                                         Divestment, Acquisition, or Debt
  Bank Strategy Plan                   212
                                                                                            and Capital Restructuring
                                             Bank Capital Structure               290
  Marketing Aspects                    219                                                  Information on Material
                                               Management Policy on
     Marketing Strategy                219                                                  Transaction Containing Conflict of
                                               Capital Structure and Basis for    290                                            308
                                                                                            Interest and/or Transaction with
                                               Determining Policy
     Market Share                      231                                                  Related Parties
                                               Capital Structure Details          291
  Operational Overview per                                                                  Changes in Legal Regulations and
                                       232                                                                                       315
  Business Segment                           Material Commitments for Capital               its Impact on Company
                                                                                  292
                                             Investment
     Conventional Segment              232                                                  Changes in Accounting Policies       320
                                             Capital Goods Investment             293
     Sharia Segment                    251                                                  Bank Soundness Level                 321
                                             Commitments and Contingencies        293
  National Strategic Project (PSN)
                                       264
                                                                                            Information on Business Continuity   321
  or Other Assignments                       Significant Agreement                294
                                                                                            Disclosure of Governance
Financial Review                       266   Material Information and Facts                 Framework, Management and            323
                                                                                  295       Control of Tax Aspects
                                             After Accounting Report Date
  Financial Performance                266
                                             Details of problems that arose                 Response to Changes in
     Statement of Financial Position   266                                                                                       324
                                             during the financial year that       295       Monetary Policy Direction
     Statement of Income and Loss            affected BUMN business activities
                                                                                            Spot Transactions and Derivative
     and other Comprehensive           274                                                                                       325
                                             Business Outlook and Future                    Transactions
     Income                                                                       296
                                             Strategies
                                                                                            Report on Additional Use of State
     Statement of Cash Flows           277                                                                                       326
                                             Achievement of Targets and                     Capital Participation (PMN)
                                                                                  298
  Ability to Pay Debts and                   Future Targets
                                       280
  Collectability of Receivables




Risk Exposure and Capital Information

  Credit Risk                          330   Market Risk                          359       Operational Risk                     361




Human Capital
Human Capital Development Work               Career Development                   378    Human Capital Information System        383
                                       372
Program
                                             Performance Assessment               380    Cultural Internalization                384
Human Capital Management Policy
                                       373   Remuneration                         381    Human Capital Management
and Implementation                                                                                                               388
                                                                                         Structure
  Recruitment                          373   Pension Program                      382
                                                                                         Human Capital Work Plans 2024           390
  Competency Development               375




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   5
Page 8
Information Technology

Information Technology Strategy       394   Information Technology Management             Information Technology Competency
                                                                                    401                                          402
                                            Structure                                     Development in 2023
Information Technology Innovations    395
                                            Evaluation Results on the                     Information Technology Work Plan
Information Technology                                                                                                           403
                                      396   Effectiveness of Information            402   2024
Infrastructures                             Technology Implementation in 2023
Information Technology Governance     397

Corporate Governance

Achievements in the Implementation               Organs and Committees under                   Number of Deviations (Internal
                                      406                                           547                                          669
of Good Corporate Governance                     the Board of Directors                        Fraud) and Resolutions

Fundamentals of Implementation of                Implementation of Governance                  Provision of Funding for Social
                                      407                                                                                        669
Good Corporate Governance                        in the Provision of                           and/or Political Activities
                                                                                    597
                                                 Remuneration for Commercial
Governance Implementation                                                                      Provision of Funds to Relevant
                                      408        Banks
Objectives and Principles                                                                      Parties and Provision of Large    669
                                                 Public Accountants                 604        Exposure
Commitment to Implementing
                                      409
Corporate Governance                             Internal Control Systems           605        Share and Bond Buybacks           670
Company’s Governance                             Risk Management Report             610        Bank Strategic Plan               670
                                      410
Implementation
                                                 Compliance Function                627        Transactions Containing
Corporate Governance Structure                                                                                                   670
                                      416                                                      Conflict of Interest
and Mechanism                                    Anti Money Laundering (AML)
                                                 Program, Counter-Terrorism                    Internal Dispute                  670
    Company Organ Structure           416        Financing (CTF) and Prevention
                                                                                    636        Prevention of Insider Trading     670
                                                 of Financing of Proliferation of
    Governance Soft Stucture          417
                                                 Weapons of Mass Destruction                   Transparency of Financial and
    Good Corporate Governance                    (PFWMD)                                                                         670
                                      417                                                      Non-Financial Conditions
    Mechanism
                                                 Lawsuits                           637        Implementation of Sustainable
      Shareholders                    417                                                      Finance, Including
                                                 Administrative Sanctions                                                        670
                                                                                               Implementation of Social and
      General Meeting of                         Imposed on the Company
                                      419                                                      Environmental Responsibility
      Shareholders                               and/or Members of the Board
                                                                                    638
                                                 of Commissioners and Board               Sharia Business Unit Governance
      Board of Directors              434        of Directors by Capital Market                                                  671
                                                                                          Report
      Board of Commissioners          465        Authority and Other Authorities
                                                                                          Public Company Governance
                                                 Access to Company                                                               684
      Procedures and Implementation                                                       Implementation Guidelines
                                                                                    638
                                                 Information and Data
      of Remuneration for Directors   497                                                 Governance Principles for Banks
      and Board of Commissioners                 Code of Conduct                    648   Issued by Basel Committee in           693
      Diversity Policy for the                                                            Banking Supervision
                                                 Policy of Long-Term
      Board of Directors and          502        Performance-based                  652   Good Corporate Governance
      Commissioners                                                                                                              694
                                                 Compensation to Management               Assessment
      Transparency of Share                      Whistleblowing System              653
      Ownership by the Board of       504
      Directors and Commissioners                Anti Corruption Program            662
      Organs and Committees under                Management of State Official
                                      508                                           668
      the Board of Commissioners                 Wealth Report (LHKPN)



Social and Environmental Responsibility Program

OJK Reference Index

Financial Report

PUMK Report

Company Soundness Level Report


6            PT Bank Tabungan Negara (Persero) Tbk
Page 9
                                                                   2023 Annual Report




Company
at a Glance


OWNERSHIP                           TOTAL ASSET
                                            of
 9.65%
                                          438.75
            Foreign Public
                                    IDR
30.35 %     Domestic Public               trillion

            Goverment of
60.00%
            Republic of Indonesia




                                                               BUSINESS SEGMENT
                                                               Commercial Bank




NUMBER OF OFFICES



631     Conventional
        Office Networks


109     Sharia Office
        Networks




                              PRODUCTS AND SERVICES

               Conventional                                       Sharia
               Banking                                            Banking




                                                     PT Bank Tabungan Negara (Persero) Tbk   7
Page 10
Milestones


                                                                   The Government of Indonesia
The Company was first            The Government of the             reopened Postal Savings
established under the name of    Republic of Indonesia seized      Office (Kantor Taboengan         It was inaugurated as a legal
“Postspaarbank” during the       Tyokin Kyoku and Kantor           Pos) with the name of Bank       entity under the Ministry of
rule of the Dutch East Indies    Taboengan Pos (Postal             Tabungan Pos RI (Postal          Transportation and allowed to
Government.                      Savings Office) was formed.       Savings Bank of RI).             open a Branch Office.

1897                             1945                              1949                             1953


                1942                              1946                              1950
                The Company was taken over        All Postal Savings Offices        The name was changed
                by the Government of Japan        (Kantor Taboengan Pos)            to “Bank Tabungan Pos”
                and renamed Tyokin Kyoku or       were occupied by the Dutch        (Postal Savings Bank) by the
                the Savings Office.               and temporarily ceased to         Government of the Republic of
                                                  operate.                          Indonesia.




                                                                   Recapitalized by the             Established Sharia Business
                                                                   Government of the Republic       Unit and opened the first
                                 Functionally became a limited     of Indonesia with a value of     Sharia Branch Office at
                                 liability company (PT Persero).   IDR13.6 trillion.                Harmoni, Jakarta.

                                 1992                              2001                             2005


                1989                              1994                              2002
                Issued bonds for the first time   Obtained permission to            With an IBM-AS400-based
                and the first commencement of     operate as a Foreign              online real-time system,
                commercial bank operations.       Exchange Bank.                    information technology was
                                                                                    implemented in all Branch
                                                                                    Offices.




               Developing various           Developing digital
               digital-based products       ecosystem to support
               and services; one of         sustainable business       Became Housing Market        Upgraded its vision
               which was the opening        as a leading housing       Maker and strengthened       and mission as Best
               of Smart Branch in           financing bank in          its position as the 5th      Mortgage Bank in
               Harmoni, Jakarta.            Indonesia.                 Largest Bank.                Southeast Asia in 2025.

               2017                         2018                       2019                         2020




8          PT Bank Tabungan Negara (Persero) Tbk
Page 11
                                                                                          2023 Annual Report




                  The integration of State-owned
                  Banks and Bank Tabungan
                  Negara into the Central
                  Bank. A Single Bank under
                  the name of Bank Negara
                  Indonesia, consisting of Bank    Bank BTN cooperated
                  Tabungan Negara, Bank            with Perum Pos dan Giro
                  Indonesia, Bank Koperasi Tani    to implement Tabungan            Realization of BTN mortgage
                  dan Nelayan, Bank Umum           Pembangunan Nasional             (KPR BTN) for the first time
                  Negara, BNI 1946 and Bank        (Tabanas) and Term-Insurance     was in Tanah Mas Housing,
                  Dagang Negara.                   Savings (Taska).                 Semarang.

                  1965                             1971                             1976


1963                              1968                             1974                              1986
The name was changed to           The single bank was              Assigned to finance public        Obtained credit from
Bank Tabungan Negara and          separated and reopened           housing by the Ministry of        IBRD/ World Bank in
moved under the Ministry of       as Bank Tabungan Negara,         Finance.                          the amount of USD
Central Bank Affairs.             abbreviated to BTN.                                                266,550,000, signed
                                                                                                     by the Government of the
                                                                                                     Republic of Indonesia.



                  Mortgage Securitization
                  via the first Assets Backed
                  Securities Collective
                  Investment Contract (KIK-
                  EBA) was in Indonesia. The
                  Company conducted an Initial     The Company transformed
                  Public Offering (IPO) and was    into a leading housing           The Company participated in
                  listed on the Indonesia Stock    financing bank and world-        the success of “One Million
                  Exchange (Go Public).            class banking.                   Houses for Indonesian”.

                  2009                             2013                             2015


2008                              2012                             2014                              2016
Obtained ISO 9001-2000            The Company executed Right       The Company and SMF               The Company continued
Certification for mid-term        Issue.                           signed Indonesia’s biggest        its transformation
credit services with a service                                     securitization.                   agenda, such as “Digital
pattern of 1-5-1.                                                                                    Banking Periods”.




                                  The Company carries out corporate actions in the form
                                  of Additional Capital by Providing Preemptive Rights II
Transformation to achieve         (PMHMETD II) in the issuance of Preemptive Rights (HMETD)
sustainable growth.               or Rights Issue.

2021                              2022




                                                                        PT Bank Tabungan Negara (Persero) Tbk                   9
Page 12
               Our Best
             Contribution




BANK BTN IN THE
NATIONAL HOUSING
ECOSYSTEM



In line with Bank BTN’s Vision and Mission in 2025, namely to become “The Best Mortgage Bank in Southeast Asia“, in 2023 14
Corporate Plan Strategic Initiative Themes have been established as the implementation of Transformation; they are divided into 4 (four)
Main Areas, namely Funding, Lending, Digital and Enablers. To support the implementation of this transformation, in 2023 business
process improvements in the enabler area have been carried out. One of them is the adjustment and change in organizational structure
in the Head Office, Regional Offices and Branch Offices.


Optimizing organizational design has objectives in streamlining business activities, building operational capabilities and Information
Technology (IT), increasing capabilities and fulfilling human capital for growth, aligning the roles of the Head Office, Regional Offices
and Branch Offices as well as supporting the integration and consolidation of the Governance Risk Compliance (GRC) system.




10          PT Bank Tabungan Negara (Persero) Tbk
Page 13
                                                                          2023 Annual Report




As a company that continues to grow, sustainability is      Not only supporting improvements in improving business
a goal that has to be achieved in managing business         processes, changes to the organizational structure are
continuity. By considering the balance among profit,        also carried out to strengthen the check and balance
planet and people, the Company considers it necessary       function in operations at Bank BTN›s business centers,
to develop Environment, Social and Governance (ESG)         namely in Regional Offices, Branch Offices, consumer
in line with regulations and business strategy. This is     loan centers (RLPC) and commercial loan centers (CBC
in line with the Sustainable Finance Roadmap Phase          ). One implementation of strengthening this function
II (2021-2025) from the OJK, where the Company              is the formation of Regional Business Control (RBC),
is expected to develop innovative and sustainable           Branch Business Control (BBC) and Commercial
financing initiatives.                                      Banking Center-Business Control (CBC-BC) units. These
                                                            units are the transition of similar units and functions that
To implement this goal, in 2023 an ESG Committee            previously existed in Internal Audit Division.
was formed as a committee under the Board of Directors
and the ESG Department in the Enterprise and ESG            Specifically, the Regional Loan Processing Center-
Risk Management Division. With the formation of an          Business Control (RLPC-BC) unit is a transition from the
ESG-related organizational structure, it is expected that   Quality Assurance and Process Compliance (QAPC)
the unit can encourage strategy and implementation          unit which previously existed in the Loan Operation
of ESG initiatives, increase accountability for             Division. This unit is tasked with ensuring the validity of
ESG performance, engage and coordinate with                 data quality checking in the consumer loans application
stakeholders, ensure compliance with ESG regulations,       system as well as monitoring end-to-end KPR Processing
and encourage innovation by identifying sustainable         performance.
business opportunities.
                                                            In line with the formation of the RBC, BBC, RLPC-
In the business area, especially in the lending sector,     BC and CBC-BC units, an Operation Risk Controller
there has been a change in organizational structure         Department was also formed in the Enterprise Risk
with the formation of the Personal Banking Division. The    Management Division which functions as a control
formation of this new division was motivated by seeing      tower, partner and is tasked with reviewing policies,
high yield loan business opportunities, especially in       standards and strategies as well as activities carried
the increasingly growing consumer segment. With the         out by RBC, BBC, RLPC-BC and CBC-BC.
existence of the Personal Banking Division to develop
other business potential outside of housing finance, it     The Operational Risk Control Unit also plays a role
is expected that the Company›s position as a market         in providing input regarding risk aspects of fraud
leader in the consumer lending segment can be               originating from audit results to improve internal control
strengthened.                                               in Branch Offices as well as conducting risk analysis on
                                                            internal control reports submitted by RBC, BBC, RLPC-
In the support area, especially in the collection sector,   BC and CBC-BC.
there is a separation of consumer collection, recovery
& asset sales functions at the Head Office into 2 (two)     With RBC, BBC, RLPC-BC and CBCBC personnel
divisions. Consumer Collection, Recovery & Asset Sales      stationed in BTN business centers plus the Operational
Division 1 is responsible for front end and early bucket    Risk Control unit as a partner and control tower, it
management, while Consumer Collection, Recovery             is expected that the 1.5 line of defense function and
& Asset Sales Division 2 manages middle to end              operational risk mitigation in the Company can be
bucket collection. This separation is carried out so that   implemented better and more intensively.
the management of the consumer collection portfolio
becomes more focused so that the Company›s Non-             As a holistic entity, organizational transformation has
Performing Loan (NPL) and Loan at Risk (LAR) levels         also been carried out in the field of human resources
can be maintained.                                          with the formation of the Human Capital Business
                                                            Partner Division. The purpose of establishing this
In line with the transformation in the collection sector,   Division is to ensure that Human Resources management
for the efficiency of the asset management and sales        is carried out more focused in developing Bank BTN’s
process, 2 (two) Commercial Asset Management                best talents and supporting the aspirations of business
Divisions were merged into 1 (one). This merger was         units, especially in managing the personnel; this is in
also carried out in order to revitalize the portfolio and   line with the objectives of implementing Bank BTN’s
maintain the quality of commercial loans.                   Employee Value Proposition (EVP), namely Learn,
                                                            Grow, Contribute and Engagement.




                                                        PT Bank Tabungan Negara (Persero) Tbk                        11
Page 14
BANK BTN IN THE NATIONAL HOUSING ECOSYSTEM



As a bank that focuses on housing, Bank BTN has a strategic
position in the national housing ecosystem, especially in the Low
Income Communities (MBR) segment. BTN KPR distribution really
helps Indonesian people to have decent and affordable housing.
Apart from that, KPR BTN is also able to support the realization
of a good and stable Indonesian housing ecosystem so that it is
able to maintain national economic stability and support housing
programs.


Bank BTN is a reliable government partner in the housing
program. This is not only in the subsidized housing program
but also plays a role in distributing Self-Help Housing Stimulant
Assistance (BSPS) funds so that the Bank can reach more people,
especially low-income people (MBR).




DISCLOSURE                                      The Company as a Public Firm carries out public information disclosure in accordance
                                                with the following provisions:
OF PUBLIC                                       1. Law Number 14 of 2008 concerning Openness of Public Information.
INFORMATION                                     2. Government Regulation Number 61 of 2010 concerning Implementation of Law
                                                     Number 14 of 2008 concerning Openness of Public Information.
                                                3. Information Commission Regulation Number 1 of 2021 concerning Public Information
                                                     Service Standards.
                                                4. Information Commission Regulation Number 1 of 2022 concerning Monitoring and
                                                     Evaluation of Public Information Openness.


                                                The Company as a Public Firm has a vision of “Being the Best Bank in Providing Public
                                                Information Services” with a mission of “Providing Public Information and Services
                                                Through Digital Innovation”. Based on Directors’ Decree No. 182/DIR/2016 dated
                                                May 10, 2016 Concerning the Structure of Information and Documentation Management
                                                Officers at PT Bank Tabungan Negara (Persero) Tbk, the Head of the Corporate Secretary
                                                Division is appointed as the Information & Documentation Management Officer (PPID).
                                                Information & Documentation Management Officer has the following duties, functions
                                                and authorities:


                                                1. Duties and Functions
                                                    a. Coordinate the collection and documentation of all Public Information from work
                                                        units in the Company which includes information that must be provided and
                                                        announced periodically; information that must be available at all times; as well as
                                                        other open information requested by the Public Information Applicant.
                                                    b. Coordinate data collection on Public Information controlled by work units in the
                                                        Company in order to create and update the Public Information List.




12          PT Bank Tabungan Negara (Persero) Tbk
Page 15
                                                                                                 2023 Annual Report




                          Total KPR                                                       Total Subsidized KPR




61%                                                   39%                   83%                                                    17%
Other Banks                                           Bank BTN              Bank BTN                                             Other Banks




                                                                   Source: Financial Services Authority (OJK) and the Company, September 2023




   c. Providing and announcing public information through                2. Authority
       media that can effectively reach all stakeholders.                   a. Coordinating each work unit and information service
   d. Coordinating the provision and service of Public                          unit in implementing Public Information services.
       Information in the information service unit to fulfill Public        b. Deciding if Public Information can be accessed by the
       Information requests.                                                    public or not based on testing the consequences.
   e. Carrying out tests regarding the consequences that                    c. Rejecting a request for Public Information if the Public
       arise as regulated in Article 19 of the Law on Openness                  Information requested includes excluded information.
       of Public Information before declaring certain Public
       Information to be exempt.                                         Based on the results of Monitoring and Evaluation of Public
   f. Including written reasons for the exclusion of Public              Information Openness in 2023, at the 2023 Public Agency
       Information clearly and unequivocally, in the event that          Information Openness Award, the Company succeeded in
       the Public Information request is rejected, as well as            qualifying as an “Informative” Public Body in the State-Owned
       black out or obscure the excluded Public Information              Enterprise Category. This is a very good achievement considering
       along with the reasons.                                           that there is an increase in qualifications from the previous
   g. Developing the capacity of functional officials and/or             financial year.
       information officers in order to improve the quality of
       Public Information services.
   h Coordinating and ensuring that objection submissions
       are processed based on the objection resolution
       procedure if the Public Information request is rejected.
   i. Developing and implementing Standard Operating
       Procedures and Public Information service policies.
   j. Preparing and announcing Public Information service
       reports and submit them to the Information Commission.




                                                                             PT Bank Tabungan Negara (Persero) Tbk                        13
Page 16
PERFORMANCE
HIGHLIGHTS



14   PT Bank Tabungan Negara (Persero) Tbk
Page 17
In 2023, Bank BTN showed significant performance growth in
both operational and financial terms. Bank BTN’s performance
also received recognition from external parties by receiving
awards on a national and international scale.




                     PT Bank Tabungan Negara (Persero) Tbk   15
Page 18
Important Performance
Achievements in 2023




       Total Assets                        Total Equity          Income for the Year


       in 2023 reached                     in 2023 reached          in 2023 reached



       438.75
     IDR                                 IDR
                                               30.48               IDR
                                                                       3.50
            trillion                            trillion                 trillion




       an increase of                      an increase of           an increase of


           9.10%                           17.64%                   14.97%
           from 2022                           from 2022              from 2022




           Sharia Financing
                                                an increase of


                                                17.36%
           in 2023 reached


           IDR
                 37.11                             from 2022
                              trillion



16     PT Bank Tabungan Negara (Persero) Tbk
Page 19
                                                     2023 Annual Report




Consumer Loan       Commercial Loan                        Commercial Savings


  in 2023 reached     in 2023 reached                            in 2023 reached


IDR
      42.45         IDR
                        42.96                              IDR
                                                                 243.69
       trillion            trillion                                   trillion




  an increase of      an increase of                             an increase of


   1.57%              14.10%                                     8.84%
      from 2022           from 2022                                 from 2022




                          Sharia Savings Funds
                                                                      an increase of


                                                                     20.68%
                          in 2023 reached


                          IDR
                                41.80                                     from 2022
                                                trillion



                                      PT Bank Tabungan Negara (Persero) Tbk            17
Page 20
          Performance
          Highlights




Key Financial
Highlights

Financial Highlights and Financial Ratios

Table of Financial Highlights                                                                         (in Millions of Rupiah)


                       Description          2023          2022           2021           2020                 2019
 STATEMENT OF FINANCIAL POSITION
 ASSETS
 CASH                                       2,127,489      1,661,533      1,539,577      1,429,426           1,369,167
 CURRENT ACCOUNTS WITH INDONESIAN
                                           18,145,761     25,416,941     10,692,484     11,107,672         15,512,329
 BANK
 CURRENT ACCOUNTS WITH OTHER BANK
     Third parties                          1,153,949        963,935      1,000,338      2,995,233              391,877
     Related parties                        1,049,449        508,322         96,460        221,896              357,624
 Allowance for impairment losses               (1,804)        (1,747)        (1,698)        (1,808)               (1,632)
                                            2,201,594      1,470,510      1,095,100      3,215,321              747,869
 PLACEMENTS WITH BANK INDONESIA AND
 OTHER BANKS
     Third parties                         30,561,061     12,975,894     27,900,711     19,830,096          10,996,115
     Related parties                               61             61            337            337              101,078
 SECURITIES
     Third parties                          1,454,768        873,109        891,173      1,123,406           5,985,588
     Related parties                        3,851,105        850,059      1,341,732      2,082,560           2,126,461
 Allowance for impairment losses              (22,903)        (2,399)        (2,000)        (2,000)             (27,378)
                                            5,282,970      1,720,769      2,230,905      3,203,966           8,084,671
 GOVERNMENT BONDS
     Related parties                       35,893,929     51,964,973     46,080,298     56,287,751          11,053,601

 SECURITIES PURCHASED UNDER AGREEMENT
 TO RESSEL

     Third parties                                   -     1,434,190      1,598,325        954,955           1,675,221
     Related parties                                 -              -              -              -             200,000

 LOANS AND SHARIA FINANCING/
 RECEIVABLES

 Loans
     Third parties                        268,898,377    247,217,823    229,174,514    217,711,277        214,807,263
     Related parties                       27.685.483     19,439,742     18,110,919     17,340,839          17,405,276
 Allowance for impairment losses          (14,191,536)   (14,104,914)   (13,165,897)   (12,151,936)         (5,425,908)
                                          282,392,324    252,552,651    234,119,536    222,900,180        226,786,631
 Sharia financing/receivables
  Third parties                            37,027,078     31,367,082     27,102,484     25,059,007          23,609,204
  Related parties                              87,203        257,057        447,374          3,040                 3,416

 Allowance for impairment losses           (1,400,428)    (1,570,009)    (1,269,863)      (909,007)           (690,258)
                                           35,713,853     30,054,130     26,279,995     24,153,040          22,922,362
 DERIVATIVE RECEIVABLES
  Third parties                                32,176        103,939         31,017         70,386                         -
 ACCEPTANCES RECEIVABLES
  Third parties                               475,821        289,206               -              -                        -




18             PT Bank Tabungan Negara (Persero) Tbk
Page 21
                                                                                      2023 Annual Report




                    Description                   2023         2022            2021               2020           2019

 Related parties                                    68,746       131,356         454,140            196,071        487,052
Allowance for impairment losses                    (23,876)           (136)           (623)           (1,393)               -

                                                   520,691       420,426         453,517            194,678        487,052
SHARE INVESTMENT
  Third parties                                           -               -               -                 -            270
Allowance for impairment losses                           -               -               -                 -           (270)
FIXED ASSETS
 Cost/revaluation value                       12,953,746       10,599,848       9,468,655          9,053,182      8,108,086
 Accumulated depreciation                     (4,835,934)      (4,246,045)     (3,731,864)       (3,234,737)     (2,707,428)
INTEREST RECEIVABLES                          11,526,687       10,750,302       9,173,536          6,285,574      3,210,772
DEFERRED TAX AAETS - NET                          2,998,282     2,915,428       2,430,660          1,972,393       629,105
OTHER ASSETS                                      3,235,046     2,352,762       2,505,522          3,784,186      2,600,197
TOTAL ASSETS                                 438,749,736      402,148,312     371,868,311        361,208,406    311,776,828
LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY
LIABILITIES
LIABILITIES DUE IMMEDIATELY                       3,277,514     3,205,358       3,654,236          4,765,276      1,999,183
DEPOSITS FROM CUSTOMERS
Demand deposit
  Third parties                               20,957,283       17,636,481      12,806,732        16,546,465       9,583,560
  Related parties                            108,412,008       87,264,437      60,556,142        52,054,300      38,524,556
Wadiah demand deposit
  Third parties                                   2,402,428     1,783,134       1,176,350           946,930         917,455
  Related parties                             11,037,037        6,841,675       4,179,603          2,138,165      1,675,555
                                             142,808,756      113,525,727      78,718,827        71,685,860      50,701,126
Saving deposits
  Third parties                               37,029,999       35,656,990      46,363,367        38,279,792      41,212,905
  Related parties                                  692,162        525,339         436,034            420,345        272,004
Wadiah saving deposits
  Third parties                                   1,274,456     1,192,775       1,149,143            903,998        789,042
  Related parties                                    2,136             943          1,096              1,211             847
                                              38,998,753       37,376,047      47,949,640        39,605,346      42,274,798
Time deposits
  Third parties                               63,976,056       66,808,185      53,067,211        60,918,288      61,281,176
  Related parties                             76,717,583       79,389,842      93,453,378        86,940,320      52,648,592
                                             140,693,639      146,198,027     146,520,589       147,858,608     113,929,768
Total deposits from customers                322,501,148      297,099,801     273,189,056       259,149,814     206,905,692
DEPOSITS FROM OTHER BANKS
  Third parties                                     91,312        136,408          66,007             29,880      4,509,238

SECURITIES PURCHASED UNDER AGREEMENT
TORESELL

  Third parties                                           -               -               -                 -       935,000
ACCEPTANCES PAYABLE
  Third parties                                    320,522        302,037         292,220            196,071                -

  Related parties                                  224,045        118,525         161,920                   -       487,052
DERIVATIVE PAYABLE
   Third parties                                          -               -        17,741             22,787                -

SECURITIES ISSUED
   Third parties                                  2,403,573     4,297,252       8,094,441        10,835,733      14,405,980




                                                                    PT Bank Tabungan Negara (Persero) Tbk                 19
Page 22
         Performance
         Highlights




                    Description                      2023         2022          2021          2020          2019

 Related parties                                     5,868,525    4,355,008     4,277,267     4,974,733     5,377,572
FUND BORROWINGS
  Third parties                                     11,308,799    7,365,320     6,499,997     6,798,082     8,681,368
  Related parties                                   22,453,290   17,455,685    15,562,294    17,009,056    13,784,289
INTEREST PAYABLE                                      647,496       629,366       496,725       726,914       630,002
ESTIMED LOSSES ON COMMITMENTS AND
                                                         3,580        4,719         3,644         6,489              -
CONTINGENCIES
EMPLOYEE BENEFITS AND OTHER LIABILITIES              2,951,848    7,248,985     6,618,300     6,666,875     5,736,637
SUBORDINATED LOAN AND SECURITIES
  Third parties                                      4,612,840    4,658,242     4,259,776     4,194,554              -
  Related parties                                    4,499,997    4,499,977     4,499,968     5,999,878     5,999,669
TOTAL LIABILITIES                                  381,164,489   351,376,683   327,693,592   321,376,142   269,451,682
TEMPORARY SYIRKAH FUNDS
DEPOSITS FROM CUSTOMER
Mudharabah Current Accounts
  Third parties                                       712,587       468,889       467,333       341,653       826,682
  Related parties                                      13,474        11,897        12,281        17,033       588,030
Mudharabah saving deposits
  Third parties                                      5,331,249    4,730,686     3,466,529     2,683,283     3,226,349
  Related parties                                     141,993        88,427       505,563       430,860       136,577
Mudharabah time deposits
  Third parties                                     11,975,188   11,886,366     8,887,336    11,022,780    11,661,400
  Related parties                                    8,908,369    7,637,191     9,424,102     5,345,495     2,038,501
Total deposits from customer                        27,082,860   24,823,456    22,763,144    19,841,104    18,477,539
DEPOSITS FROM OTHER BANKS
Mudharabah Current Accounts
  Third parties                                          4,154           56            46            176           243
Mudharabah savings deposits
  Third parties                                        14,781        19,674         1,882         2,139         3,299
Mudharabah time deposits
  Third parties                                          4,300       19,089         3,000         1,000         7,870
Total deposits from other banks                        23,235        38,819         4,928         3,315        11,412
TOTAL TEMPORARY SYIRKAH FUNDS                       27,106,095    24,862,275    22,768,072    19,844,419    18,488,951
EQUITY
Capital stock - IDR500 par value per share (full
amount) as of December 31, 2023 and 2022,
respectively
Authorized capital 20,478,432,000 shares
(full amount) (consisting of 1 series A Dwiwarna
share and 20,478,431,999 series B shares) on
December 31, 2023 and 2022 respectively
Issued and fully paid-up capital 14,034,444,413
shares (full amount) (consisting of 1 share of
series A Dwiwarna and 14,034,444,412
series B shares) as of December 31, 2023
                                                     7,017,222    5,295,000     5,295,000     5,295,000     5,295,000
and 10,590,000,000 shares (full amount)
(consisting of 1 share of series A Dwiwarna
and 10,589,999,999 Series B shares) as of
December 31, 2022,
Additional paid-in capital                           4,418,900    2,054,454     2,054,454     2,054,454     2,054,454

Capital deposit fund                                         -    2,756,575              -             -             -
Net unrealized loss allowance for and
impairment losses on securities and government
                                                     (769,001)   (1,193,252)       87,817     1,100,019
at fair value through other comprehensive income                                                               11,460
net of deferred tax




20          PT Bank Tabungan Negara (Persero) Tbk
Page 23
                                                                                         2023 Annual Report




                   Description                       2023          2022           2021               2020           2019

Remeasurement
Remeasurement of defined Benefit Plan - net of
                                                      (560,339)      (409,657)      (458,153)         (531,674)       (194,707)
deferred tax
Effective portion of Cash Flow Hedge                   (32,346)       (49,301)       (19,983)            (1,239)              -
Revaluation Surplus of Premises                      3,565,773      3,508,565      3,307,991          3,307,991      3,307,991
Retained earning*
   Appropriated                                     13,181,214     10,745,157      8,606,555          7,004,198     12,995,995
   Unappropriated                                    3,657,729      3,201,813      2,532,966          1,759,096        366,002
TOTAL EQUITY                                        30,479,152     25,909,354     21,406,647         19,987,845     23,836,195
TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS
                                                   438,749,736    402,148,312    371,868,311        361,208,406    311,776,828
AND EQUITY
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
INCOME AND EXPENSES FROM OPERATIONS
Interest Income and Income from Profit Sharing
Interest                                            24,722,529     23,233,200     23,413,857        22,947,252      23,271,432
Profit sharing and margin from sharia unit           3,558,723      2,674,168      2,381,101          2,169,236      2,448,442
Total Interest Income and Income from Profit
                                                    28,281,252     25,907,368     25,794,958        25,116,488      25,719,874
Sharing
Interest, Profit Sharing and Bonuses Expenses
Interest                                           (13,203,108)    (9,866,919)   (11,670,728)      (14,687,492)    (15,167,294)
Other financing expenses                              (203,317)      (169,804)      (177,585)         (147,146)       (157,708)
Wadiah Bonus                                           (71,621)       (57,558)       (32,175)           (21,782)       (15,641)
Third Parties’ Rights on Return of Mudharabah       (1,372,916)      (815,803)      (923,167)       (1,335,517)     (1,417,430)
Total Interest, Profit Sharing and Bonus Expense   (14,850,962)   (10,910,084)   (12,803,655)      (16,191,937)    (16,758,073)
Interest Income and Income from Profit Sharing
                                                    13,430,290     14,997,284     12,991,303          8,924,551      8,961,801
- Net
Other Operating Income
Administrative fees and penalties for deposits
                                                     1,096,346        965,441        852,953           760,751         832,556
and credit given
Income from recovery of loan written-off               934,191        431,591        304,810           275,538         113,399
Gain on sale of securities - net                         6,669       (234,089)        76,734           356,168         478,339
Gain on sale of government bonds - net                 541,392       (266,235)       818,679           308,351         144,553
Unrealized gain on changes in fair value of
                                                         1,802        (64,931)      (135,338)            18,493         20,894
securities - net
Unrealized gain on changes in fair value of
                                                        (5,780)        55,045        (18,778)            87,011          1,745
bonds - net
Others                                               1,310,747        822,775        463,507           708,295         518,366
Total Other Operating Income                         3,885,367      1,709,597      2,362,567          2,514,607      2,109,852
Provision for impairment losses on financial and
                                                    (3,765,397)    (4,017,378)    (3,627,477)       (2,258,479)     (3,486,665)
nonfinancial assets
(Provision for) Reversal of Estimated Impairment
                                                         1,139         (1,075)         2,845             (3,784)              -
Losses on Commitments and Contingencies
Other Operating Expenses
General and administrative                          (3,884,779)    (3,754,028)    (3,358,846)       (3,114,260)     (3,425,022)
Salaries and employee benefits                      (3,982,503)    (4,190,298)    (3,782,925)       (2,977,208)     (2,863,955)
Premiums on on Government’s guarantee program         (656,774)      (599,991)      (619,667)         (469,360)       (467,791)
Others                                                (487,614)      (329,308)      (930,968)         (285,782)       (306,447)
Total Other Operating Expenses                      (9,011,670)    (8,873,625)    (8,692,406)       (6,846,610)     (7,063,215)

INCOME FROM OPERATIONS                                              3,814,803      3,036,832          2,330,285        521,773
                                                     4,539,729
NON-OPERATING EXPENSES - NET                          (159,519)        60,887        (43,512)           (59,428)      (110,711)

INCOME BEFORE TAX EXPENSES                                          3,875,690      2,993,320          2,270,857        411,062
                                                     4,380,210
TAX EXPENSES                                          (879,222)      (830,617)      (617,093)          (668,499)      (201,799)

INCOME FOR THE YEAR                                  3,500,988      3,045,073      2,376,227          1,602,358        209,263


                                                                         PT Bank Tabungan Negara (Persero) Tbk               21
Page 24
        Performance
        Highlights




                    Description                           2023          2022           2021           2020           2019

Other Comprehensive Income:

Items that will not be reclassified to profit or loss

Unrealized gain on changes in fair value of
                                                             57,208        200,574               -              -       341,000
securities - net

Remeasurement of defined benefit plans                     (186,027)        59,872         75,005       (397,512)      (132,869)

Income tax related to items that will not be
                                                             35,345        (11,376)        (1,484)        60,545         21,048
reclassified to profit or loss

Items that will be reclassified to profit or loss

Effective Part of Hedging – Cash Flows                       20,932        (40,883)       (18,744)        (1,239)              -

Net unrealized gain (loss) on changes in value of
fair value through other comprehensive income               517,528     (1,576,967)    (1,259,616)     1,342,481        148,613
securities and government bonds

Income tax related to items that will be reclassified
                                                            (97,254)       307,463        247,414       (253,922)        (9,723)
to profit or loss

Total comprehensive income for the year                   3,848,720      1,983,756      1,418,802      2,352,711        557,332

Basic Earnings Per Share (full amount)                           249           288            224            151             20

STATEMENT OF CASH FLOW
CASH FLOWS FROM OPERATING ACTIVITIES
Interest, profit sharing and margins                     27,618,186     24,331,326     22,427,061     22,025,695     25,453,902

Recoveries from loan debts written off                    1,011,258        503,307        362,436        331,915        153,997

Interest and bonuses, fees and commissions paid         (14,892,249)   (10,775,222)   (13,027,787)   (16,095,612)   (16,646,046)

Recoveries from income tax paid                          (1,020,952)    (1,001,324)      (820,461)      (341,466)      (590,027)

Receipt of tax assessment letters                                  -       402,428               -              -         6,710

Other operating expenses - net                           (5,790,828)    (6,896,183)    (5,927,136)    (3,986,344)    (4,845,107)

Other non-operating (expenses) income - net                 (54,382)        13,828        (27,932)       (59,428)      (110,711)

Cash receipts before changes in operating assets
                                                          6,871,033      6,578,160      2,986,181      1,874,760      3,422,718
and liabilities

Changes in operating assets and liabilities:

Decrease (increase) in operating assets:

Placements on other banks                                          -              -       947,105       (595,305)      (351,800)

Fair value through profit or loss Securities               (246,380)      (104,885)       849,641        172,622      2,452,777

Fair value through profit or loss government bonds       15,788,979     (4,955,939)     4,842,769    (18,122,548)     1,547,115

Acceptance receivable                                      (124,005)        33,578       (258,069)              -              -

Loans and sharia financing/receivables                  (38,484,306)   (26,318,471)   (16,988,247)    (7,255,860)   (18,229,537)

Other assets                                               (785,307)      (196,503)     1,241,584     (1,285,447)       300,335

Increase (decrease) in operating liabilities:

Liabilities due immediately                                  74,415       (466,852)    (1,120,009)     2,446,942       (301,002)

Deposits from customers

Demand deposits                                          24,468,372     31,538,044      4,762,109     20,492,649     (5,565,072)

Wadiah demand deposits                                    4,814,656      3,268,857      2,270,858        492,085       (188,844)

Savings deposits                                          1,539,832    (10,617,072)     8,099,264     (2,784,772)     3,134,070

Savings deposits wadiah                                      82,875         43,479        245,030        115,320         23,565

Time deposits                                            (5,504,388)      (322,562)    (1,338,019)    33,928,841     (1,532,515)

Deposits from other banks                                   (45,095)        70,400         36,127     (4,479,357)     1,516,659

Acceptances payable                                         124,005        (33,578)       258,069               -              -

Other liabilities                                        (4,184,154)       654,214       (206,114)       303,204       (734,052)

Temporary syirkah funds                                   2,243,821      2,094,203      2,923,653      1,355,469       (322,778)

Net Cash Provided by Operating Activities                 6,634,353      1,265,073      9,551,932     26,658,603    (14,828,361)




22             PT Bank Tabungan Negara (Persero) Tbk
Page 25
                                                                                           2023 Annual Report




                   Description                           2023         2022          2021               2020           2019

CASH FLOWS FROM INVESTING ACTIVITIES

(Purchase) receipt from matured amortized cost
                                                        (2,868,515)     199,964                -        1,061,584               -
securities

Proceeds at maturity of held-to-maturity securities               -             -              -                 -              -

Acquisition of Fixed Assets                             (2,313,490)   (1,042,464)    (415,473)          (798,086)      (366,561)

(Purchase) receipt in fair value through other
                                                        (1,247,159)     381,580       330,249           1,082,203               -
comprehensive income

Decrease (increase) in securities & government bonds
                                                         2,211,325     5,714,402    10,722,233       (25,844,225)    (2,085,930)
fair value through other comprehensive income

Purchase of amortized cost government bonds             (1,655,566)   (7,816,426)   (5,922,417)         (148,619)               -

Purchase of amortized cost securities                             -             -    (236,767)                   -              -

Proceed from securities         purchased    under
                                                        45,031,457      163,410                -         920,267                -
agreement to resell

Placement of securities         purchased    under
                                                       (43,597,267)             -    (643,370)                   -   (1,875,221)
agreement to resell

(Increase) Decrease securities available for sale                 -             -              -                 -     (718,350)

Purchase of held-to-maturity government bonds                     -             -              -                 -     (947,963)

Purchasing held-to-maturity securities                            -             -              -                 -   (1,083,081)

Net Cash Provided by (Used in) Investing Activities     (4,439,215)   (2,399,534)    3,834,455        (23,726,876)    (7,077,106)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds of securities issued                            2,449,019     1,541,330        10,186          1,493,811     4,144,000

Payments of matired securities issued                   (2,769,764)   (5,263,000)   (3,455,000)       (5,322,500)    (5,122,930)

Proceeds from securities sold under repurchase
                                                        67,691,353      592,326      1,716,191                   -              -
agreements

Payments of matured securities sold under
                                                       (67,691,353)    (592,326)    (1,716,191)         (935,000)               -
agreements to repurchase

The exercise of employee stock options                            -             -                                -              -

Dividend payment                                          (609,015)    (237,624)               -          (20,927)     (561,585)

Proceeds from fund borrowings                           11,185,162    11,814,826     6,455,429          9,141,448    11,001,654

Payment of loans received                               (2,187,576)   (9,095,884)   (8,204,691)       (7,823,008)    (4,020,720)

Proceeds from subordinated securities                             -             -    1,500,000          4,047,884     2,999,950

Payment of Lease Liabilities                               (81,973)      (84,983)      (99,959)         (125,788)               -

Payments of matured subordinated loans and
                                                                  -             -   (3,000,000)                  -              -
securities

Capital deposit fund                                     1,330,093     2,756,575               -                 -              -

Net Cash Provide by (used in) Financing Activities       9,315,946     1,431,240    (6,794,035)           455,920      8,440,369

Net Increase in Cash and Cash Equivalents               11,511,084       296,779     6,592,352          3,387,647    (13,465,098)

CASH AND CASH EQUIVALENTS AT BEGINNING
                                                        41,526,686    41,229,907    34,637,555         31,249,908     44,715,006
OF THE YEAR

CASH AND CASH EQUIVALENTS AT END OF THE
                                                        53,037,770    41,526,686    41,229,907         34,637,555     31,249,908
YEAR

Details of cash and cash equivalents at the end of
the year are as follows

Cash                                                     2,127,489     1,661,533     1,539,577          1,429,426     1,369,167

Current accounts with Bank Indonesia                    18,145,761    25,416,941    10,692,484        11,107,672     15,512,329

Current accounts with other banks                        2,203,398     1,472,257     1,096,798          3,217,129       749,501

Placements with Bank Indonesia and other banks
- with original maturities of three months or less      30,561,122
                                                                      12,975,955    27,901,048        18,883,328     10,745,393
from the date of acquisition

Bank Indonesia Certificates - maturity period of
                                                                  -             -              -                 -    2,873,518
three months or less from the date of acquisition

Total                                                   53,037,770    41,526,686    41,229,907         34,637,555     31,249,908



                                                                           PT Bank Tabungan Negara (Persero) Tbk              23
Page 26
          Performance
          Highlights




                    Description                               2023                    2022                   2021              2020             2019
FINANCIAL RATIO (%)
Liquidity
Loan to Deposit Ratio (LDR)                                        95.36                    92.65                  92.86             93.19         113.50
Profitability
Ratio of Liabilities to Total Assets                               86.88                    87,37                  88,12             88,97           86,42
Ratio of Liabilities to Total Equity                           1.250,57                 1,356,18              1,530,80           1,607,86         1,130,43
Return On Asset (ROA)                                               1.07                      1.02                  0.81              0.69             0.13
Return On Equity (ROE)                                             13.86                    16.42                  13.64             10.02             1.00
Net Interest Margin (NIM)                                           3.75                      4.40                  3.99              3.06             3.32
Operating Expenses to Operating Revenues (BOPO)                    86.10                    86.00                  89.28             91.61           98.12
Credit Quality
Non Performing Loan (NPL) Gross                                     3.01                      3.38                  3.70              4.37             4.78
Non Performing Loan (NPL) Netto                                     1.32                      1.32                  1.20              2.06             2.96
Productive Assets
Non Performing Productive Assets to Total
                                                                    1.85                      2.58                     -                 -                 -
Productive Assets
Allowance for Impairment on Productive Assets
                                                                    2.92                      3.88                     -                 -                 -
to Total Productive Assets
Capital
Minimum Capital Adequacy Ratio                                     20.16                    20.17                  19.14             19.34           17.32
Compliance
BMPK Violation Percentage
  Related Parties                                                   0.00                      0.00                  0.00              0.00             0.00
  Non Related Parties                                               0.00                      0.00                  0.00              0.00             0.00
BMPK Exceedance Percentage
  Related Parties                                                   0.00                      0.00                  0.00              0.00             0.00
  Non Related Parties                                               0.00                      0.00                  0.00              0.00             0.00
Minimum Statutory Reserve (GWM)
  Primary Statutory Reserve IDR
     Conventional                                                   6.04                      8.28                  3.55              3.16             6.19
     Sharia                                                         6.10                      7.76                  3.70              3.15             4.64
  Statutory Reserve (Foreign Currency)                              4.40                      4.13                  6.24              4.63             8.28

Net Open Position (PDN)                                             1.73                      4.17                  2.63              3.17             4.14

Other Ratio
Cost to Income Ratio (CIR)                                         45.26                    46.66                  48.18             53.85           58.08

*The deficit balance of IDR14,226,290 was eliminated as a result of quasi-reorganization on May 31, 2007.




Operational Overview

                  Description                             2023                    2022                      2021              2020              2019
CONSUMER BANKING
Consumer Loan Disbursement                              42,450,499             41,795,595              32,948,775           24,812,869        33,439,158
Consumer Deposits                                       63,770,218             68,190,039              68,770,476           65,777,811        65,600,784
COMMERCIAL BANKING
Commercial Loan Disbursement                            42,963,396             37,654,912              19,923,399           15,416,031        25,962,288
Commercial Deposits                                   243,694,432            223,893,013             197,961,260           189,525,768       137,939,293
SHARIA BUSINESS UNIT
Sharia Financing Disbursement                           10,615,071              8,213,567               6,232,013            4,658,912         5,302,395
Sharia Deposits                                         41,802,885             34,640,775              29,269,336           23,831,409        21,861,284




24              PT Bank Tabungan Negara (Persero) Tbk
Page 27
                                                                                                                                2023 Annual Report




STOCK
INFORMATION

Bank BTN Stock Price, Volume and Capitalization Information 2022-2023
                                                                 Price per Share (IDR)                                Total
                                                                                                                                                               Market
                                                                                                                  Outstanding           Trading Volume
                               Year                                                                                                                        Capitalization
                                              Opening           Highest          Lowest          Closing          Stock (Million        (Million Shares)
                                                                                                                                                            (IDR Trillion)
                                               (IDR)             (IDR)            (IDR)           (IDR)              Shares)

                                                                                              2023
 Quarter I                                       1,335           1,400            1,175             1,225               14,03                2,265             17.19

 Quarter II                                      1,225           1,340            1,215             1,320               14,03                1,770             18.53

 Quarter III                                     1,315           1,370            1,220             1,220               14,03                1,304             17.12

 Quarter IV                                      1,240           1,295            1,190             1,250               14,03                  790             17.54

                                                                                              2022
 Quarter I                                       1,668           1,750            1,499             1,654               10,59                1,645             18.16

 Quarter II                                      1,654           1,798            1,403             1,403               10,59                1,861             15.41

 Quarter III                                     1,403           1,567            1,340             1,432               10,59                1,121             15.73

 Quarter IV                                      1,432           1,494            1,311             1,350               14,03                  937             17.46




                                                         BANK BTN Share Transaction Volume Graph for 2022 – 2023


                                  1,800
                                             1,654
                                  1,600
                                                                            1,432
   Closing Share Price (IDR)




                                                             1,403
                                  1,400                                                     1,350                               1,320
                                                                                                              1,225                             1,220         1,250
                                  1,200

                                  1,000

                                      800

                                      600

                                      400

                                      200

                                       0


                                            Quarter I      Quarter II     Quarter III     Quarter IV        Quarter I      Quarter II        Quarter III   Quarter IV

                                                                     2022                                                               2023




                                                                                                            PT Bank Tabungan Negara (Persero) Tbk                       25
Page 28
                                         Performance
                                         Highlights




                                                                        BANK BTN Share Trading Volume Chart for 2022-2023



                                          2,500
                                                                                                                      2,265
 Stock trading volume (Million Shares)




                                          2,000                          1,861
                                                                                                                                  1,770
                                                   1,645

                                          1,500
                                                                                                                                                     1,304
                                                                                         1,121

                                           1000                                                           937
                                                                                                                                                                     790


                                            500



                                              0

                                                  Quarter I            Quarter II      Quarter III     Quarter IV   Quarter I   Quarter II        Quarter III    Quarter IV

                                                                                 2022                                                      2023




                                                           BANK BTN Share Price and Volume Movement Chart for 2022 – 2023



                                          4,000    3,783

                                          3,500
 Stock trading volume (Million Shares)




                                          3,000
                                                                         2,638
                                                                                                         2,501
                                          2,500

                                                                                         1,937                                    1,861
                                          2,000
                                                                                                                      1,645
                                                                                                          1,730                                       1,121         1,350
                                          1,500        1,720                                                          1,654
                                                                                                                                   1,403             1,432
                                                                         1,370            1,420
                                                                                                                                                                     937
                                           1000


                                            500


                                              0

                                                  Quarter I            Quarter II      Quarter III     Quarter IV   Quarter I   Quarter II        Quarter III    Quarter IV

                                                                                 2022                                                      2023

                                                               Stock Trading Volume (Million Shares)                                         Stock Price (IDR)




26                                          PT Bank Tabungan Negara (Persero) Tbk
Page 29
                                                                                                                 2023 Annual Report




BBTN Stock Information Summary 2019-2023
                           Indicator                                 BBTN 2023            BBTN 2022         BBTN 2021        BBTN 2020          BBTN 2019

 Opening Price (IDR/ per share)                                             1,335               1,668           1,735              2.15             2.56

 Highest Price (IDR/ per share)                                             1,400               1,798            2,15              2.16             2.79

 Lowest Price (IDR/ per share)                                              1,175               1,311            1,23               745            1,795

 Closing Price (IDR/ per share)                                             1,250               1,350            1,73             1,725             2.12

 Trading Volume (million shares)                                            5,416               5,563         10,502             16,981            6,076

 Book Value Per Share (IDR)                                                 2,071               2,131           1,988             1,887            2,251

 Price to Book Value (times)                                                   0.60               0.63           0.89              0.91             0.94

 Price to Earning Ratio (times)                                                5.53               4.73           9.28             11.40           107.29

 Total Outstanding Stock (million shares)                                   14.03               12.87           10.59             10.59            10.59

 Market Capitalization (IDR-trillion)                                       17.54               17.46           18.32             18.27            22.45


Throughout 2023, Bank BTN succeeded to be listed as one of the constituents in several leading Stock Market Indices as follows:


                                        Indeks                                                                          Period

 LQ45                                                                                    January 2023 – January 2024

 IDX BUMN20                                                                              January 2023 – February 2024

 IDX80                                                                                   January 2023 – January 2024

 IDX Small-Mid Cap (IDX SMC) Composite                                                   January 2023 – February 2024

 IDX Small-Mid Cap (IDX SMC) Liquid                                                      January 2023 – February 2024

 Kompas100                                                                               January 2023 – January 2024

 Infobank15                                                                              January 2023 – January 2024

 MSCI Indonesia Small Cap                                                                January 2023 – December 2023

 ESG Sector Leaders IDX Kehati                                                           January 2023 – May 2024

 ESG Quality 45 IDX Kehati                                                               January 2023 – May 2024

 IDX Value30                                                                             February 2023 – February 2024

 Investor33                                                                              January 2023 – May 2024

 IDXFINANCE                                                                              October 2022 – June 2023

 SRI-KEHATI                                                                              June 2023 – May 2024

 IDX LQ45 Low Carbon Leaders                                                             February 2023 – February 2024

 TEMPO-IDNFINANCIALS 52                                                                  June 2023 – December 2023




Corporate Action

As part of the Company’s series of corporate actions carried out in 2022, the Company implemented a Rights Issue with an implementation
date of December 28, 2022 to January 5, 2023 in order to increase the Company’s business capacity, especially in housing loans
distribution. The implementation of this rights issue strengthens the Company’s capital, especially Tier-1 capital so that it will maintain a
capital ratio above the minimum regulatory limit. The details of the implementation of the Company’s Rights Issue are as follows:


                                                             Shareholders (Number of Shares Outstanding)
                                                                                                                                                    Stock
 Implementation                                                                                                                   Outstanding
                           Information               Government                        Public                 Nominal                               price
      date                                                                                                                           Stock
                                                                                                                                                    (IDR)
                                                  Total (sheets)       %         Total (sheets)     %           IDR

 December 28,           Before Rights Issue      6,354,000,000         60       4,236,000,000       40   5,295,000,000,000       10,590,000,000     1,470
 2022 - January
 5, 2023                After Rights Issue       8,420,666,648         60       5,613,777,765       40   7,017,222,206,500       14,034,444,413     1,340

Note: Nominal value of Stock before and after the rights issue: IDR500/share




                                                                                                PT Bank Tabungan Negara (Persero) Tbk                      27
Page 30
          Performance
          Highlights




From the results of the implementation of the Rights Issue from 28 December 2022 – 5 January 2023, the number of stock executed by
Rights was oversubscribed 1.63 times the public portion and if added to the portion of State Equity Participation (PMN), the number of
stock executed by Rights was oversubscribed 1.25 times.




Bonds, Sukuk and/or
Convertible Bonds Information


Bonds Information
Table of Bank BTN Outstanding Bonds

                                                                                 Electronic Issue                                           Number of Bonds
                               Description                                                                Tenor (Month)        Curency
                                                                                       Date                                                   (Million IDR)

 Shelf Registration Bonds I Phase II Bank BTN 2013                               March 27, 2013                  10               IDR          2,000,000

 Shelf Registration Bonds II Phase I Bank BTN 2015 D Series                        July 8, 2015                  10               IDR             800,000

 Shelf Registration Bonds III Phase I Bank BTN 2017 C Series                       July 13, 2017                  7               IDR             853,000

 Shelf Registration Bonds III Phase I Bank BTN 2017 D Series                       July 13, 2017                 10               IDR          1,386,000

 Shelf Registration Bonds III Phase II Bank BTN 2019 C Series                     June 28, 2019                   5               IDR          1,219,500

 Junior Global Bond Bank BTN                                                    January 23, 2020                  5              USD                   300

 Shelf Registration Bonds IV Phase I Bank BTN 2020 B Series                      August 19, 2020                  3               IDR             727,000

 Shelf Registration Bonds IV Phase I Bank BTN 2020 C Series                      August 19, 2020                  5               IDR             196,000

 Shelf Registration Bonds IV Phase II Bank BTN 2022 A Series                      May 24, 2022                    3               IDR             600,000

 Shelf Registration Bonds IV Phase II Bank BTN 2022 B Series                      May 24, 2022                    5               IDR             400,000

Notes:
- The Rating for domestic securities that are outstanding in 2021 uses the rating from Pefindo.
- The Rating for domestic securities issued and outstanding in 2022 uses the rating from Fitch.
- The rating of Bank BTN’s Junior Global Bond (USD) issued in 2020 uses a rating from Moody’s.
- The Rating for domestic securities that are outstanding in 2023 uses the rating from Pefindo.




Sukuk Information
BTN Bank Sukuk Table
                    Electronic                                    Amount
                      Sukuk           Tenor                       of Sukuk                                                      Payment
 Description                                       Currency                       Due date               Ratio Rate                            Information
                   Distribution      (Month)                       (Million                                                      Status
                       Date                                          IDR)

                                                                                                  11.00% of the revenue
                                                                                                                                             These Securities
 BTN Sukuk                                                                                        shared with an indication
                  July 28,                                                      October 28,                                                  are not rated and
 I Year 2023                            159            IDR         92,553                         of profit sharing           Not yet due
                  2023                                                          2036                                                         there is no public
 Phase I                                                                                          equivalent to 0.55% per
                                                                                                                                             offering.
                                                                                                  year.

                                                                                                  27.40% of the revenue
                                                                                                                                             These Securities
 BTN Sukuk                                                                                        generated with an
                  December                                                      December                                                     are not rated and
 I Year 2023                            156            IDR        175,039                         indication of profit        Not yet due
                  27, 2023                                                      27, 2036                                                     there is no public
 Phase II                                                                                         sharing equivalent to
                                                                                                                                             offering.
                                                                                                  1.37% per year.




28             PT Bank Tabungan Negara (Persero) Tbk
Page 31
                                                                                           2023 Annual Report




                                                                     Information on Temporary Termination of
                                                                     Stock Trading (Suspension) and/or Stock
                                                                     Registration Delisting

                                                                     As of December 31, 2023, Company has never been subject to
                                                                     sanctions for stock trading suspension or stock delisting.




                                                                                                      Rating
                                                                Interest        Payment                                  Stock
                 Bid Price                      Due Date
                                                                 Rates           Status                                Exchange
                                                                                              2023             2022

 100% of the principal amount of the Bonds   March 27, 2023       7.9%       Paid off      AA+(idn)       AA(idn)     Bank Mega

 100% of the principal amount of the Bonds     July 8, 2025     10.5%        Not yet due   AA+(idn)       AA(idn)     Bank BJB

 100% of the principal amount of the Bonds    July 13, 2024     8.70%        Not yet due   AA+(idn)       AA(idn)     Bank Mega

 100% of the principal amount of the Bonds    July 13, 2027     8.90%        Not yet due   AA+(idn)       AA(idn)     Bank Mega

 100% of the principal amount of the Bonds    June 28, 2024     9.00%        Not yet due   AA+(idn)       AA(idn)     Bank Mega

 100% of the principal amount of the Bonds   January 23, 2025   4.20%        Not yet due   Ba3            AA(idn)     Bank BJB

 100% of the principal amount of the Bonds   August 19, 2023    7.80%        Paid off      AA+(idn)       AA(idn)     Bank BJB

 100% of the principal amount of the Bonds   August 19, 2025    8.40%        Not yet due   AA+(idn)       AA(idn)     Bank BJB

 100% of the principal amount of the Bonds    May 24, 2025      5.50%        Not yet due   AA+(idn)       AA(idn)     Bank BJB

 100% of the principal amount of the Bonds    May 24, 2027        6.0%       Not yet due   AA+(idn)       AA(idn)     Bank BJB




Convertible Bonds Informations

As of December 31, 2023, the Company did not issue any
convertible bonds, thus the Company has no information
regarding convertible bonds.




                                                                           PT Bank Tabungan Negara (Persero) Tbk                 29
Page 32
        Performance
        Highlights




Other Funding
Sources Information

KPR Securitization
Table of Housing Loan (KPR) Bank BTN Securitization
  No.      Securitization Transactions           Total Amount (IDR)              Class                   Nominal (IDR)

                                                                                  A1                    400,000,000,000

  1.     EBA-SP SMF-BTN 02                       1,000,000,000,000                A2                    513,000,000,000

                                                                                  B                      87,000,000,000

                                                                                  A1                    200,000,000,000

  2.     EBA-SP SMF-BTN 03                       1,000,000,000,000                A2                    713,000,000,000

                                                                                  B                      87,000,000,000

                                                                                  A1                    700,000,000,000

  3.     EBA-SP SMF-BTN 04                       2,000,000,000,000                A2                   1,124,000,000,000

                                                                                  B                     176,000,000,000

                                                                                  A1                    574,000,000,000

                                                                                  A2                   1,142,000,000,000
  4.     EBA-SP SMF-BTN 05                       2,000,000,000,000
                                                                                  M                      24,000,000,000

                                                                                  B                     260,000,000,000

                                                                                  A                     576,734,000,000
  5.     EBA-SP SMF-BTN 06                         631,000,543,015
                                                                                  B                      54,266,543,015

         EBA-SP SMF-BTN 07                                                        A                     452,500,000,000
  6.                                               500,000,001,416
                                                                                  B                      47,500,001,416

                                                                                  A                     544,800,000,000
  7.     EBA-SP SMF-BTN 08                         600,000,020,055
                                                                                  B                      55,200,020,055




Negotiable Certificate of Deposit
Tabel Negotiable Certificate of Deposit Bank BTN
                      Issuance Nominal        Date of                                                             Nominal Per
     Type NCD                                                Series      Tenor         Maturity Date    Rate
                            (IDR)           Transaction                                                             Series

                                                             A        6 Month      April 17, 2024       6.40%   500,000,000,000

 NCD Phase I 2023     1,500,000,000,000   October 20, 2023   B        9 Month      July 16, 2024        6.45%   70,000,000,000

                                                                      12 Month     October 21, 2024     6.53%   930,000,000,000




30         PT Bank Tabungan Negara (Persero) Tbk
Page 33
                                                                        2023 Annual Report




    Transaction Date           Due Date   Average Life (Year)      Class A Coupon            Class A Rating

                                                                     A1 = 8,15%

October 31, 2016       June 27, 2027              7.05                                           id
                                                                                                      AAA
                                                                     A2 = 8,75%


                                                                     A1 = 8,00%

April 28, 2017         January 07, 2028           7.78                                           id
                                                                                                      AAA
                                                                     A2 = 8,40%


                                                                     A1 = 7,00%

February 28, 2018      May 07, 2029               7.03                                           id
                                                                                                      AAA
                                                                     A2 = 7,50%


                                                                     A1 = 8,50%
                                                                                                 id
                                                                                                      AAA
                                                                     A2 = 8,75%
November 27, 2019      May 07, 2032               9.09

                                                                    M = 10,40%                         A
                                                                                                      id




December 30, 2020      July 07, 2032              6.08                   6,50%                   id
                                                                                                      AAA



December 23, 2022      January 07, 2034           5.66                   7,70%                   id
                                                                                                      AAA



September 26, 2023     August 07, 2035            7.44                   6,65%                   id
                                                                                                      AAA




                                                          PT Bank Tabungan Negara (Persero) Tbk               31
Page 34
          Performance
          Highlights




Long Term Notes (LTN)
Table of Long Term Notes (LTN) Bank BTN
                                                                      Electronic Distribution Date
                           Description                                                               Tenor (Month)          Total LTN (IDR hundreds)
                                                                                 of LTN
 LTN BTN Phase I Year 2021                                            December 17, 2021                  186                         10,185,851
 LTN BTN II Year 2022 A Series                                        July 12, 2022                      171                         47,740,325
 LTN BTN II Year 2022 B Series                                        July 12, 2022                      177                         79,378,706
 LTN BTN III THP I Year 2022                                          December 14, 2022                  177                        210,866,282
 LTN BTN III THP II Year 2022                                         December 28, 2022                  171                        131,184,885
 LTN BTN IV Phase I Year 2023                                         July 28, 2023                      165                         35,898,139
 LTN BTN IV Phase II Year 2023                                        September 15, 2023                 168                        404,745,014
 LTN BTN IV Phase III Year 2023 – Series A                            December 27, 2023                  180                          6,241,671
 LTN BTN IV Phase III Year 2023 – Series B                            December 27, 2023                  168                        234,541,750

Note: LTN BTN Securities are not rated and issued through limited offering to BP Tapera.




Company Rating
2023

Fitch ratings as of November 6, 2023


                                    Information                                                                  Rating

 Outlook                                                                                                          Stable

 Long-Term National Ratings                                                                                     AA+(idn)

 Short-Term National Ratings                                                                                     F1+(idn)



Pefindo ranking as of June 8, 2023


                                    Information                                                                  Rating

 Outlook                                                                                                          Stable

 National Rankings                                                                                               idAAA




Sustainalytics ESG Rating As of December 5, 2023


                                    Information                                                                  Rating

 ESG Risk Rating                                                                                                     22,9

 Category                                                                                                      Medium Risk




32              PT Bank Tabungan Negara (Persero) Tbk
Page 35
                                                             2023 Annual Report




                   Due date   Interest Rates                             Payment Status

June 17, 2037                 1.37% tetap                  Not yet due
October 12, 2036              1.37% tetap                  Not yet due
April 12, 2037                0.55% tetap                  Not yet due
June 14, 2037                 0.55% tetap                  Not yet due
March 28, 2037                0.55% tetap                  Not yet due
April 28, 2037                0.55% tetap                  Not yet due
September 15, 2037            1.37% tetap                  Not yet due
December 27, 2038             0.55% tetap                  Not yet due
December 27, 2037             1.37% tetap                  Not yet due




                                               PT Bank Tabungan Negara (Persero) Tbk      33
Page 36
        Performance
        Highlights




Corporate
Analyst Report

Table of Bank BTN Corporate Analyst Report
  No                  Company        Broker Code                   Analyst   Recommendation   Target Price

   1.    UBS Sekuritas                   AK        Joshua Tanja              buy                2,175

   2.    Ciptadana Sekuritas             KI        Erni M Siahaan            buy                2,125

   3.    Bahana Sekuritas                DX        Yusuf Winoto              buy                2,100

   4.    Yuanta Investment               FS        Yap Swie Cu               buy                1,980

   5.    Kiwoom Securities               AG        Team Coverage             ovrwght            1,957

   6.    MNC Sekuritas                   EP        Tirta Citradi             buy                1,900

   7.    Macquarie Sekuritas             RX        Jayden Vantrakis          buy                1,840

   8.    Aldiracita Sekuritas            PP        Agus Pramono              buy                1,800

   9.    Mandiri Sekuritas               CC        Kresna Hutabarat          buy                1,800

  10.    Valbury Sekuritas               CP        Akhmad Nurcahyadi         buy                1,770

  11.    CLSA Securities                 KZ        Sarina Lesmina            buy                1,750

  12.    UOB Kayhian                     AI        Posmarito Pakpahan        buy                1,700

  13.    BNI Sekuritas                   NI        Yulinda Hartanto          buy                1,700

  14.    RHB Research                    DR        Andrey Wijaya             buy                1,650

  15.    Sucorinvest Central             AZ        Edward Lowis              buy                1,640

  16.    Korea Invest & Sekuritas        YJ        Edward Ariadi T.          hold               1,639

  17.    Trimegah Sekuritas              LG        Adi Prabowo               buy                1,600

  18.    CGS CIMB                        YU        Handy Noverdanius         add                1,600

  19.    Panin Sekuritas                 GR        Nico Laurens              buy                1,600

  20.    DBS Bank                        DP        Rui Wen Lim               hold               1,550

  21.    BCA Sekuritas                   SQ        Cristopher Andre B.       buy                1,550

  22.    Astronacci International                  Gema Merdeka              buy                1,515

  23.    Morgan Stanley                  YB        Selvie Jusman             Equalwt            1,505

  24.    Sinarmas Sekuritas              DH        Arief Machrus             buy                1,480

  25.    OCBC Sekuritas                  TP        Budi Rustanto             buy                1,450

  26.    Indopremier Sekuritas           PD        Anthony                   buy                1,440

  27.    Verdhana Sekuritas              BB        Erwin Wijaya              neut               1,400

  28.    Samuel Sekuritas                    IF    Prasetya Gunadi           hold               1,300

  29.    BRI Danareksa                   OD        Victor Stefano            u. review                -




34         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




Important
Events 2023




                                               January 18                                                               January 25

 BTN Syariah Office Expansion in Bandar Lampung                           Bank BTN Officially Became a Member of the
 Starting in 2023, BTN Syariah increasingly expanded its                  Housing Financing Ecosystem
 business to exploit the potential of the sharia financing business       The signing of the MoU on the Housing Financing Ecosystem
 and support the government in improving the sharia ecosystem             marked the formation of the Housing Financing Ecosystem
 which was now increasingly in demand by the public. The                  Secretariat. This secretariat supported government programs to
 expansion of the sharia office network was also to make it easier        maximize the provision of public housing financing, especially
 for Lampung people to own houses with sharia financing.                  for low-income communities, in order to achieve zero backlog
                                                                          by 2045.




                                                                      Bank BTN Won Top PLCs and Asean Asset Class PLCs
                                                                      Bank BTN won two awards, namely Indonesia Top 3 Public Listed
                                                                      Companies (PLCs) in 2021 and ASEAN Asset Class PLCs. ACGS
                                                                      became a prestigious event that handed awards to companies with
                                                                      the highest assessment in implementing GCG in ASEAN.




                                                                                                                     February 12

                                                                      Bank BTN Officially Launched SuperApp BTN Mobile
                                                                      SuperApp BTN Mobile was officially launched to provide convenience
                                                                      and comfort for customers in banking transactions by combining the
                                                                      power of technology and the housing ecosystem. One of its superior
                                                                      features included online open account, split bill, autodebit, and cash
                                                                      flow tracker.




                                                                          PT Bank Tabungan Negara (Persero) Tbk                            35
Page 38
     Performance
     Highlights




                                                                                                              February 14

                                                                   Bank BTN Syariah Pontianak Officially Operated
                                                                   Sharia Branch Unit Pontianak became the 105th outlet of BTN Syariah
                                                                   to serve the people of Pontianak. In the next 5 years, it is expected
                                                                   that Sharia Branch Unit Pontianak will be able to collect Third Party
                                                                   Funds of more than IDR 38 billion every year and the financing was
                                                                   targeted to grow to around IDR 60 billion every year.




                                                                                                         February 16-19

                                                                   MSMEs Bazaar in Sarinah
                                                                   In support of participation in MSMEs Bazaar activities for Indonesia,
                                                                   Bank BTN with Angkasa Pura 1 was appointed by the Ministry of
                                                                   SOEs as the organizer of the MSMEs Bazaar at the Sarinah Building
                                                                   and there were 81 participants who took part in the MSMEs Bazaar.




                                                 March 20                                                               March 7
 Bank BTN Encouraged Traditional Market Digitization Ecosystem         Bank BTN Provided Banking Services to Indonesian Cement
 Bank BTN expanded into traditional markets, one of which was          Distributors
 Tagog Market, Padalarang by implementing market digitalization        Bank BTN provided banking services to Semen Indonesia
 through BTN Mobile. Bank BTN opened and got closer to the             Group distributors. This became a follow-up to the Cooperation
 market as a housing ecosystem to strengthen the payment system        Agreement for Providing Distributor Financing Facilities between
 and financial inclusion through BTN Mobile so that transactions       Bank BTN and PT Semen Indonesia (Persero) Tbk.
 from traders were faster, cheaper and easier.




36        PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




                                                                                                                        April 8

                                                                    BTN Business Savings Road Show at Tanah Abang Market, Jakarta
                                                                    The BTN Business Savings Road Show was expected to make
                                                                    transactions easier for entrepreneurs at Tanah Abang Market in
                                                                    running their business. This year, Bank BTN targeted to obtain BTN
                                                                    Bisnis Savings funds of IDR 7 trillion, an increase of 40% compared
                                                                    to last year.




                                                                                                                       April 12
                                                                    BTN Held Beneficial Ramadan Events
                                                                    In this year’s Ramadan, Bank BTN took the theme “Fruitful Ramadan”
                                                                    to convey the message that Ramadan should be a starting point for
                                                                    companies to transform to be better and oriented to always provide
                                                                    benefits. To provide benefits to customers and the community, Bank
                                                                    BTN also continued to strive to improve services, including updating
                                                                    BTN Mobile with more features that could facilitate various customer
                                                                    transactions during the month of Ramadan.




                                                 April 16                                                               April 17
Bank BTN Supported Millennial Residential Financing                      BTN Srikandi Charity and Creation Movement
Bank BTN supported millennial residential financing by launching         In the event, which was named the Srikandi Charity and Creation
affordable products for young people, including KPR BTN Gaess            Movement, more than 6,000 packages were distributed to the
For Millennials, KPR BTN HITS (Hijrah to Syariah) For Millennials        community around the BTN work area and employees of the
and KPR Rent to Own. Bank BTN targeted around 5.8 million                Power Experts (TAD).
millennials who currently did not own a house.




                                                                         PT Bank Tabungan Negara (Persero) Tbk                             37
Page 40
     Performance
     Highlights




                                                                                                                       May 3

                                                                 BTN Bank Released BTN Call 150286
                                                                 Bank BTN added the BTN Call number 150286 to improve service to
                                                                 customers while increasing BTN Call’s operational efficiency so that it
                                                                 can serve and handle customer questions and complaints quickly and
                                                                 effectively and support business through telesales.




                                                                                                                       May 24

                                                                 Bank BTN Collaborates with Alibaba Cloud to Take Advantage of
                                                                 Cloud Computing Services
                                                                 Collaboration with Alibaba Cloud became one of Bank BTN’s steps
                                                                 to become an innovator in realizing faster and more efficient digital
                                                                 transformation to support BTN Mobile as a Super App.




                                               June 16                                                                  Juni 26
 Increasing KPR Market Share, Bank BTN launched Sales Center         Achieving the highest ranking from Pefindo, Bank BTN was
 The BTN KPR Sales Center was launched in the context of             considered to have superior capabilities
 managing Non-Subsidized KPR specifically for the Emerging           Bank BTN successfully achieved the highest rating of idAAA/
 Affluent Segment originating from selected Developers and           Stable from PT Pemeringkat Efek Indonesia (Pefindo). Bank BTN
 Housing Projects. With the inauguration of this Sales Center,       was also assessed by Pefindo as a company that had superior
 it was hoped that it could increase the market share of Non-        ability to fulfill its long-term financial commitments compared to
 Subsidized KPR, increase the Bank’s income and improve              other Indonesian obligors. Meanwhile, Bank BTN this year also
 services to the community.                                          recorded an increase in its Fitch rating from AA to AA+ and was
                                                                     given a stable outlook.




38        PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




                                                                                                                       July 25

                                                                  BTN Syariah Supports Home Financing for Muhammadiyah Residents
                                                                  Bank BTN’s Sharia Business Unit committed to providing support
                                                                  for home financing facilities to Muhammadiyah residents, including
                                                                  Independent Worker Participants through the Saving Plan scheme.
                                                                  “Sharia Business Unit BTN targeted the distribution of subsidized
                                                                  housing financing (KPR Sejahtera) of around IDR 500 billion.”




                                                                                                                   August 8
                                                                  Bank BTN Reviewed Subsidized Housing
                                                                  The inspection of subsidized houses was carried out at the Bank BTN
                                                                  Mass KPR Akad event simultaneously throughout Indonesia for 10,000
                                                                  housing units. The implementation of the Mass KPR Agreement was
                                                                  Bank BTN’s commitment to the success of the One Million Houses
                                                                  Program to fulfill people’s dreams of having a habitable house.




                                            August 11                                                                August 25
Synergy between Bank BTN and UGM Invited Students to Become           Bank BTN Launched BTN KPR Propritas
Entrepreneurs                                                         KPR BTN Prioritas is Bank BTN’s new program provide more
Bank BTN collaborated with UGM in financing the education of          services to priority customers both in terms of funding and
all undergraduate students through all Bank BTN channels. In          lending. With attractive interest rates starting from 2.99%, free
the education sector, Bank BTN expected that this collaboration       processing fees, free appraisal fees and additional discounts
could produce young developers to participate in building             on provisions and administration fees, Bank BTN was optimistic
housing in Indonesia.                                                 that KPR BTN Prioritas could meet the housing needs of priority
                                                                      customers.




                                                                      PT Bank Tabungan Negara (Persero) Tbk                           39
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     Performance
     Highlights




                                                                                                                  September 8

                                                                     Focusing on MSMEs, Bank BTN Inaugurated MSME Processing Center
                                                                     The inauguration of the MSME Center became a manifestation of
                                                                     Bank BTN’s commitment to accelerating and simplifying processes so
                                                                     that it could help improve the MSME economy by providing cheap
                                                                     financing in the form of MSME Loans and People’s Business Loans.
                                                                     Loans distribution to MSMEs was also believed to have a positive
                                                                     impact on Bank BTN’s performance.




                                                                                                                    September 9

                                                                     Bank BTN and PSSI Collaborate to Provide Decent Housing for Football
                                                                     Players
                                                                     The collaboration between Bank BTN and PSSI made it easier for
                                                                     football players to have a dream home that was affordable and
                                                                     livable. On the same occasion, Bank BTN gave KPR approval to Indra
                                                                     Sjafrie as the Technical Director of PSSI.




                                   September 16-19                                                                   October 13
 China ASEAN Expo                                                        Bank BTN Syariah Held Mass Contract in Aceh
 Bank BTN facilitated the Company’s Micro, Small and Medium              Bank BTN’s Sharia Business Unit was ready to become the largest
 Enterprises (MSME) partners to sell local products to the Chinese       bank in Aceh Province. One of them was by increasing housing
 market. This step was part of BTN’s strategy to support the             financing in provinces applying Islamic sharia or Qanun rules.
 Government, including the Ministry of SOEs, to bring MSMEs into         The number of Bank BTN Syariah Sharia KPR Mass Contracts in
 the global market. The MSMEs that BTN sent to China were assisted       Aceh was 2,187 housing units consisting of 1,779 subsidized
 by Rumah BUMN (SOEs House) BTN Yogyakarta Branch Office.                houses and 364 non-subsidized houses, followed by 33 Sharia
 Rumah BUMN became a forum for supporting the development                Branch Offices throughout Indonesia.
 of MSMEs in Indonesia through various initiatives and synergies
 with other agencies or institutions. These MSMEs showcased their
 superior products through the China ASEAN EXPO 2023 which
 was held at the Nanning International Conference and Exhibition.




40        PT Bank Tabungan Negara (Persero) Tbk
Page 43
                                                                                                2023 Annual Report




                                                                                                                    October 28

                                                                      Bank BTN Held BTN Santri Developer Training
                                                                      The aim of BTN Santri Developer was to provide education about
                                                                      the world of property business to Islamic boarding school students
                                                                      who were alumni of Islamic boarding schools under the guidance of
                                                                      Nahdlatul Ulama.




                                                                                                               November 12
                                                                      Bank BTN Jakarta Run Successfully Held
                                                                      Bank BTN Jakarta Run 2023 became the new face of running activities
                                                                      in Jakarta and was a gathering place for the Jakarta community and
                                                                      runner community to encourage the spirit of exercise and togetherness
                                                                      for better health. The running categories at BTN Jakarta Run 2023 were
                                                                      divided into 4 categories, namely Marathon (42K), Half Marathon
                                                                      (21K), 10K and 5K.




                                            December 6                                                             December 28
Forming BTN Fund, Bank BTN Collaborated with Mandiri Capital              Bank BTN Highest FLPP Distributor in 2023
Indonesia                                                                 Bank BTN committed to being a partner with the Government
Bank BTN continued to innovate to encourage the housing sector            and BP Tapera to continue to contribute in 2024 to realizing the
in the country. Bank BTN officially collaborated with PT Mandiri          dream of Low-Income Communities (MBR) having decent housing.
Capital Indonesia (MCI) to form the BTN Fund, a funding program           BP Tapera gave appreciation to Bank BTN and BTN Syariah as
for potential start-up companies in the property sector. Apart from       the highest FLPP distributing banks and recorded the highest
the property sector, BTN Fund also invested in related industries         growth throughout 2023.
such as Iproptech, Mortgage Tech, Fintech, Construction Tech,
SaaS and other strategic sectors, to support the housing sector
in Indonesia.




                                                                          PT Bank Tabungan Negara (Persero) Tbk                                41
Page 44
REPORT OF THE BOARD OF
DIRECTORS, BOARD OF
COMMISSIONERS AND SHARIA
SUPERVISORY BOARD

42   PT Bank Tabungan Negara (Persero) Tbk
Page 45
Total assets in 2023 were recorded at IDR438.75 trillion, an
increase of 9.10% compared to 2022 which was amounting to
IDR402.15 trillion. Bank equity reached IDR30.47 trillion, an
increase of 17.64% from 2022 of IDR13.95 trillion.




                     PT Bank Tabungan Negara (Persero) Tbk   43
Page 46
          Report of The Board of Directors, Board of
          Commissioners and Sharia Supervisory Board




BOARD OF DIRECTORS’
REPORT




                                                       Nixon L. P. Napitupulu
                                                            President Director




With the praise and blessing the presence of God Almighty, the Company has been able
to show good performance in the midst of uncertain economic challenges. In the midst
of these challenges, the Company remains consistent in supporting the Government to
encourage economic growth, through the housing sector.




44     PT Bank Tabungan Negara (Persero) Tbk
Page 47
                                                                                              2023 Annual Report




To our respected Shareholders and Stakeholders,



On this occasion, please allow us to present the report of              Cash Management, BTN Smart Residence, Virtual Account,
Company’s management and performance for the 2023                       Online Onboarding Open Account, Visa/GPN Debit Card &
financial year. In this report we will present the Company’s            Online Debit, SMS Notification, Internet Banking, CRM, BTN
performance, analysis of the company’s prospects, developments          Properti Portal, Mobile Banking, SKBDN, BTN Bank Guarantee
in implementing the Company’s governance, assessment of the             and Other Banking Services.
performance of the Committees under the Board of Directors and
changes in the composition of the Board of Directors.                   SHARIA SERVICES
                                                                        On Sharia services, the Company provides various services such
                                                                        as BTN iB Safe Deposit Box, BTN iB Bank Guarantee, BTN iB
Analysis of The Company’s Performance                                   Operational Development Program, BTN iB Online SPP, Hajj
                                                                        Payment, Mobile Banking, Sharia Visa/GPN Debit Card and
As a company operating in the banking sector, the Company               Online Debit, BTN iB Payroll, as well as Money Transfers.
is always committed to being a bank focusing on serving and
supporting housing sector financing through various products            To optimize products and services to customers, the Company
and services, both conventional and sharia. The Company’s               establishes a network spreading throughout Indonesia, including
various products and services are as follows:                           Sumatra, Java, Kalimantan, Sulawesi, Bali, Nusa Tenggara,
                                                                        Maluku and Papua. As of December 31, 2023, the Company
CONVENTIONAL PRODUCTS                                                   has a Conventional Banking network of 6 (six) Regional Offices,
Conventional products consist of Consumer Products and                  81 Branch Offices, 541 Sub-Branch Offices and 3 (three)
Commercial Products. Consumer products are divided into                 Functional Offices. Meanwhile, for the Sharia Banking network,
Consumer Loan Products, Consumer Savings Products and                   the Company has 34 Sharia Branch Offices and 75 Sharia Sub-
Wealth Management Products. Consumer Loan Products include              Branch Offices.
Housing Loans and Non-Housing Loans. Consumer Savings
Products include Consumer Savings, BTN Retail Deposits and              In line with Bank BTN’s Vision and Mission in 2025, namely to
Individual Current Accounts. Meanwhile, BTN offers Wealth               “To Become The Best Mortgage Bank in Southeast Asia by 2025”,
Management products including Bancassurance, Mutual Funds,              in 2023 14 Corporate Planning Strategic Initiative Themes have
Primary Market Retail Government Securities, Secondary Market           been established as the implementation of Transformation,
Government Securities and Foreign Exchange.                             and they are divided into 4 (four) Main Areas, namely
                                                                        Funding, Lending, Digital and Enabler. In order to support the
Commercial Products are divided into Commercial Loan Products,          implementation of this transformation, in 2023 business process
Commercial Savings Products and Corporate Products. BTN                 improvements have been made in the enabler area, one of which
Offers Commercial Loan Products in the form of Working Capital          is the adjustments and changes to the organizational structure at
Loans, Contractor Working Capital Loans, Construction Working           the Head Office, Regional Offices and Branch Offices.
Capital Loans, Land Ownership Loans, Linkage Loans, Savings
Backed Loans and Investment Loans. Commercial Savings                   As a company that continues to grow, sustainability is a goal
Products include Institutional Time Deposits and Institutional          that must be achieved in managing business continuity. By
Current Accounts. Meanwhile, Corporate Products include                 considering the balance among profit, planet and people, Bank
Working Capital Loans, Investment Loans, Refinancing, Domestic          BTN considers it necessary to develop Environment, Social and
Loans (PDN), Term Loan Facility, Corporate Line Facility, Treasury      Governance (ESG) in line with regulations and business strategy.
Line Facility, Supply Chain Financing (SCF), Trust Receipt, Letter of   To implement this goal, in 2023 an ESG Committee was formed
Credit (L/C ) or Domestic Letter of Credit, BTN Bank Guarantee,         as a committee under the Board of Directors and the ESG
and Documentary Collection.                                             Department in the Enterprise Risk Management Division.


SHARIA PRODUCTS                                                         In the business area, especially in the lending sector, there has
BTN also offers Sharia Financing Products and Sharia Savings            been a change in organizational structure with the formation of
Products. Sharia Financing Products include Consumer Financing          the Personal Banking Division. The formation of this new division
and Commercial Financing. Meanwhile, Sharia Savings Products            was motivated by seeing high yield loan business opportunities,
include Sharia Current Accounts, Sharia Savings and Sharia              especially in the increasingly growing consumer segment. In
Deposits.                                                               the support area, especially in the collection sector, there is a
                                                                        separation of consumer collection and recovery functions at
CONVENTIONAL SERVICES                                                   the Head Office into 2 (two) divisions. Consumer Collection &
On the conventional side, the Company provides various services         Recovery Division 1 is responsible for front end and early bucket
such as Electronic Data Capture (EDC), Branchless Banking, BTN          management, while Consumer Collection & Recovery Division



                                                                            PT Bank Tabungan Negara (Persero) Tbk                   45
Page 48
                 Report of The Board of Directors, Board of
                 Commissioners and Sharia Supervisory Board




2 manages middle to end bucket collection. In line with the            industry economic conditions in developing business strategies
transformation in the collection sector, for the efficiency of the     to overcome obstacles, especially those related to the impact
asset management and sales process, 2 (two) Commercial Assets          of economic conditions on the Company’s business. Therefore,
Management Divisions were merged into 1 (one).                         in providing an analysis of the Company’s performance, allow
                                                                       us to provide an economic analysis at the global, national and
In carrying out its operational activities, the Company owns           banking industry levels.
12,045 employees. As of 31 December 2022, 535 employees
had postgraduate education; 9,881 employees hold bachelor’s            Macroeconomic Review
degrees; 734 employees hold Diploma degrees, and 228
employees had high school education. The Company always                In 2023, global economic conditions were slightly hampered as
carries out HR development programs to meet the competencies           a result of political tensions between Russia and Ukraine. This
and skills required by employees on an ongoing basis using             causes commodity and energy prices to rise, and it also causes
education, training, special assignments as well as transfer           inflation which encourages Central Banks from many countries
and promotion programs. Employee competency development                to increase their benchmark interest rates to control inflation in
is carried out through systematic learning and development             each country. In the end of 2023, global economic conditions
programs to improve knowledge, skills and attitudes.                   improved; inflation and benchmark interest rates in several
                                                                       countries were slowly being lowered. On the other hand, in
The Company also regularly innovates information technology to         2024, the economies of developing countries such as Indonesia
support the Company’s business. The demand for technology and          and India are expected to continue to grow beyond the levels
the increase in the Company’s digital transactions and services        achieved in 2023. The economies of developed countries such
means that organizations must quickly respond to changes that          as the United States and Japan are expected to grow more slowly
occur. The rapid development of information technology means           than in 2023. China’s economy in 2024 is also expected to slow
that organizations must adapt quickly. One of them is related to       down.
infrastructure as the foundation of an organization and covers all
services, therefore a reliable information technology infrastructure   From a national perspective, Indonesia’s economic growth in the
is needed.                                                             third quarter of 2023 again recorded positive results of 4.94%
                                                                       yoy, slightly lower than the previous quarter. Indonesia’s economic
During 2023, the Company has several focuses on improving IT           growth is below 5%, after seven consecutive quarters of above
service excellence, this is done to maintain business continuity       5%. This indicates that the Indonesian economy is increasingly
and the security of the Company’s information on an ongoing            recovering and solid. Sectorally, the highest growth occurred
basis. One of the strategies carried out by the Company is to          in the Transportation and Warehousing sectors, followed by
continuously improve and strengthen the infrastructure from            other services sectors. Meanwhile, in terms of expenditure,
year to year through strengthening IT monitoring, implementing         the Consumption component of Non-Profit Institutions Serving
standardization, backup management systems and infrastructure          Households (LNPRT) experienced the highest growth, followed
modernization.                                                         by the Investment/PMTB component and household consumption.


In 2023, the Company also focused on efforts to improve its            Improvements in the national economy were expected to continue
elastic and resilient infrastructure to increase resilience and the    until the fourth quarter of 2023. The development of leading
ability to recover if disruption or disaster occurs, the implemented   indicators until December 2023 showed positive results, such as
initiatives include:                                                   the Consumer Confidence Index (IKK) which was high at 123.8.
1. Cloud journey, carrying out cloud readiness assessment,             The Manufacturing PMI was at an expansion level of 52.3 and
     cloud strategy and architecture to be implemented, platform       the Real Sales Index which reached 217.9. In January 2024, the
     and security and operational integration.                         World Bank maintained its projection for Indonesia’s economic
2. Implementing cloud computing technology.                            growth in 2023 at 5.0% and the projection for 2024 at 4.9%.
3. Routinely conducting data center readiness trials for critical      This was triggered by continuing global inflationary pressures and
     and non-critical applications on a regular basis.                 global financial market uncertainty which caused a slowdown in
4. Conducting a DC assessment to comprehensively examine               the national economy. Meanwhile on the monetary side, after BI
     the condition of the IT architecture and obtain a road map        maintained the interest rate at 5.75% for 8 (eight) consecutive
     strategy to obtain an elastic and resilient IT infrastructure.    months, BI increased its benchmark interest rate by 25 bps to
                                                                       6.00% in October 2023 to strengthen the Rupiah exchange rate
With the various resources owned by the Company, the Board             stabilization policy. Apart from that, this increase is also a pre-
of Directors has managed these resources effectively. The              emptive step to mitigate its impact on imported goods inflation,
Company has produced good performance in 2023 amidst                   so that general and core inflation remains under control within
economic conditions that have not yet fully recovered. The Board       Bank Indonesia’s targets.
of Directors always considers global, national and banking




46          PT Bank Tabungan Negara (Persero) Tbk
Page 49
                                                                                                     2023 Annual Report




In line with the national economy, banking industry liquidity in             Based on economic and industrial analysis and considering
November 2023 showed an adequate level with maintained                       the existing challenges, the Company has set a target market
liquidity ratios. The Liquid Assets/Non-Core Deposit (AL/NCD)                for loans and financing provided at IDR329.83 trillion and
ratio was 115.73%, an increase compared to October 2023                      IDR347.13 trillion for third party funds. Based on this market
which was 117.29% or far above the regulatory threshold of                   target, the Company is targeting interest income of IDR27.73
50%. Meanwhile, Liquid Assets/TPF (AL/TPF) was 26.04%,                       trillion in 2023.
an increase compared to the achievement in October 2023
which was 26.36%, above the regulatory threshold of 10%.                     To achieve this market target, the basic loan interest rates for
Meanwhile, the Net Open Position (PDN) in November 2023                      2023 have been determined as follows:
was recorded at 1.58%, also far below the threshold of 20%.
Meanwhile, in terms of capital, the Banking industry’s Capital
Adequacy Ratio (CAR) in November 2023 was recorded to have
increased to 27.89% from the position in October 2023 which
was 27.44%.




Table of Basic Loan Interest Rates
                                                                                         SDBK Based on Business Segment

                             Description                                                                                   Consumer Loans
                                                                       Corporate                         Micro
                                                                                     Retail Loans
                                                                         Loans                           Loans
                                                                                                                          KPR          Non KPR

 Basic Loan Interest Rate (SBDK) in 2023                                     8.05%        8.30%           n/a              7.30%          8.80%

 Basic Loan Interest Rate (SBDK) in 2022                                     8.00%        8.25%           n/a              7.25%          8.75%

 Basic Loan Interest Rate (SBDK) in 2021                                     8.00%        8.25%           n/a              7.25%          8.75%

 Basic Loan Interest Rate (SBDK) in 2020                                     9.90%        9.90%           n/a              9.95%        11.25%

 Basic Loan Interest Rate (SBDK) in 2019                                    11.00%      11.25%            n/a             10.75%        11.50%



Apart from that, Bank BTN has also set competitive interest rates for savings deposits and current accounts presented as follows:

Table of Rupiah Savings Interest Rate
                                                                                                                            Institutional Interest
             Types of products                                Balance Strata                      Retail Interest Rates
                                                                                                                                     Rates

                                            Up to IDR1 million                                            0.00%                     0.00%

                                            > IDR1 million - IDR100 million                               1.00%                     1.00%

                                            > IDR100 million - IDR1 billion                               2.40%                     2.25%

 Investment Savings                         > IDR1 billion - IDR2 billion                                 3.15%                     3.05%

                                            > IDR2 billion - IDR5 billion                                 3.40%                     3.20%

                                            > IDR5 billion - IDR10 billion                                4.15%                     3.45%

                                            > IDR10 billion                                               4.15%                     3.90%


Table of Rupiah Savings Interest Rate
               Types of products                                 Balance Strata                                    Interest rate

                                              < IDR1 million                                                              0.00%

                                              ≥ IDR1 million - ≤ IDR50 million                                            0.10%

                                              > IDR50 million - ≤ IDR500 million                                          0.10%
 BTN Batara Savings
                                              > IDR500 million - ≤ IDR1 billion                                           0.50%

                                              > IDR1 billion - ≤ IDR2 billion                                             1.00%

                                              > IDR2 billion                                                              1.00%




                                                                                  PT Bank Tabungan Negara (Persero) Tbk                        47
Page 50
                Report of The Board of Directors, Board of
                Commissioners and Sharia Supervisory Board




              Types of products                               Balance Strata      Interest rate

                                             < IDR1 million                            0.00%

                                             ≥ IDR1 million - ≤ IDR50 million          0.50%

BTN Bisnis Savings                           > IDR50 million - ≤ IDR500 million        1.00%

                                             > IDR500 million - ≤ IDR1 billion         1.25%

                                             ≥ IDR1 billion                            1.75%


                                             ≤ IDR5 million                            0.00%

                                             > IDR5 million - IDR10 million            0.00%

                                             > IDR10 million - IDR100 million          0.25%

BTN Prima Savings                            > IDR100 million - IDR500 million         0.50%

                                             > IDR500 million - IDR2 billion           0.75%

                                             > IDR2 billion - IDR5 billion             1.00%

                                             > IDR5 billion                            1.25%


                                             ≤ IDR50 thousand                          0.00%
BTN Junior Savings
                                             > IDR50 thousand                          0.50%


                                             IDR0 - IDR500 thousand                    0.00%

My Savings                                   > IDR500 thousand - IDR1 million          0.10%

                                             > IDR1 million                            0.25%


                                             Up to IDR10 million                       1.00%

                                             > IDR10 million - IDR25 million           1.15%

                                             > IDR25 million - IDR50 million           1.25%
SiMuda RumahKu Savings
                                             > IDR50 million - IDR100 million          1.35%

                                             > IDR100 million - IDR250 million         1.50%

                                             > IDR250 million                          2.00%


                                             < IDR1 million - IDR10 million            1.00%

                                             > IDR10 million - IDR25 million           1.15%

                                             > IDR25 million - IDR50 million           1.25%
BTN Siap!Savings
                                             > IDR50 million - IDR100 million          1.35%

                                             > IDR100 million - IDR250 million         1.50%

                                             > IDR250 million                          2.00%


                                             < IDR1 million                            0.00%

                                             ≥ IDR1 million - IDR50 million            0.10%

BTN e'BataraPos Savings                      > IDR50 million - IDR500 million          0.10%

                                             > IDR500 million - IDR1 billion           0.50%

                                             > IDR1 billion                            1.00%


Tabanas Batara Post Office                                                             0.00%




48           PT Bank Tabungan Negara (Persero) Tbk
Page 51
                                                                                                                        2023 Annual Report




Table of Rupiah Current Account Interest Rate
                Types of products                                        Balance Strata                                               Interest rate

                                                       ≤ IDR10 million                                                                     0.00%

                                                       > IDR10 million - IDR100 million                                                    0.25%

 Rupiah Current Account                                > IDR100 million - IDR500 million                                                   0.75%

                                                       > IDR500 million - IDR1 billion                                                     1.00%

                                                       > IDR1 billion                                                                      1.25%



Table of Rupiah Deposit Interest Rates
                                                                                                             Time Period (months)
    Types of
                                Balance Strata
    products
                                                                         1                 2                3            4           6            12               24

                     < IDR1 million                                     0.00%          0.00%           0.00%           0.00%      0.00%          0.00%            0.00%

                     IDR1 million - < IDR10 million                     1.00%          1.00%           1.00%           1.00%      1.00%          1.00%            1.00%

                     IDR10 million - < IDR100 million                   2.25%          2.40%           2.65%           2.65%      2.90%          2.90%            2.90%
 Rupiah Deposits
                     ≥ IDR100 million - < IDR500 million                2.40%          2.40%           2.90%           2.90%      3.05%          3.05%            3.05%

                     ≥ IDR500 million - ≤ IDR2 billion                  2.40%          2.40%           2.90%           2.90%      3.05%          3.05%            3.05%

                     > IDR2 billion                                     2.40%          2.40%           2.90%           2.90%      3.05%          3.05%            3.05%



Table of Rupiah e-Deposit Interest Rate
                                                                                                             Time Period (months)
    Types of
                                Balance Strata
    products
                                                                         1                 2             3               4           6             12              24

                    < IDR100 million                                    2.60%         2.75%           3.00%            3.00%       3.25%         3.25%            3.25%

                    ≥ IDR100 million - < IDR500 million                 2.65%         2.75%           3.25%            3.25%       3.40%         3.40%            3.40%

 Rupiah             ≥ IDR500 million - < IDR2 billion                   4.25%         4.25%           4.40%            4.50%       4.65%         3.40%            3.40%
 e-Deposits         ≥ IDR2 billion - < IDR5 billion                     4.50%         4.50%           4.65%            4.80%       4.90%         3.40%            3.40%

                    ≥ IDR5 billion - < IDR10 billion                    4.60%         4.60%           4.80%            4.90%       5.00%         3.50%            3.50%

                    ≥ IDR10 billion                                     4.70%         4.70%           5.00%            5.00%       5.00%         3.60%            3.60%



Table of Foreign Currency Savings Interest Rates
                                          USD                                              SGD                        AUD / CNY                            JPY
     Types of
     products                                                Interest         Balance            Interest        Balance        Interest      Balance            Interest
                             Balance Strata
                                                               rate            Strata              rate           Strata          rate         Strata              rate

                     < USD 1,000                              0.00%

 BTN Felas           USD 1,000 - < USD 10,000                 0.15%
                                                                             All tiering         0.10%          All tiering     0.05%        All tiering         0.00%
 Savings             USD 10,000 - < USD 100,000               0.35%

                     ≥ USD 100,000                            0.50%



Table of Foreign Currency Savings Interest Rates
                                                                                                                          USD
                       Types of products
                                                                                           Balance Strata                                  Interest rate

                                                                          < USD 1,000                                                         0.00%

                                                                         USD 1,000 - < USD 10,000                                             0.15%
 BTN Felas USD Savings via Mobile Banking
                                                                         USD 10,000 - < USD 100,000                                           0.35%

                                                                         ≥ USD 100,000                                                        0.50%




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                                    49
Page 52
                   Report of The Board of Directors, Board of
                   Commissioners and Sharia Supervisory Board




Table of Foreign Currency Deposit Interest Rates
                                                                                                 Time Period (months)
       Types of products                Balance Strata
                                                                    1             3                 4            6             12         24
 USD Deposits                     All strata                                                             0.20%

 SGD deposits                     All strata                                                             0.10%

 AUD/CNY Deposits                 All strata                                                             0.10%

 JPY Deposits                     All strata                                                             0.00%


Table of Foreign Currency e-Deposit Interest Rates
                                                                                              Time Period (months)
     Types of
                               Balance Strata
     products
                                                                1            2            3              4           6           12       24

                      < USD100.000                          1.00%         1.00%          1.00%          1.00%    1.00%         1.00%     1.00%

                      USD100.000 - < USD500.000             2.50%         2.50%          1.50%          1.50%    1.50%         2.50%     2.50%
 USD e-Deposits
                      USD500.000 - < USD1.000.000           2.50%         2.50%          2.00%          2.00%    2.00%         2.50%     2.50%

                      ≥ USD1.000.000                        2.50%         2.50%          2.25%          2.25%    2.25%         2.50%     2.50%


Table of Foreign Currency Giro Interest Rates
                   Types of products                                    Balance Strata                                   Interest rate

                                                         Up to USD100.000                                                   0.00%
 Currency Current Account (USD)
                                                         > USD100.000                                                       0.10%




Strategy and Strategic Policies

The Board of Directors directly leads the formulation of the                 3. In the funding sector, strategic initiatives in the short
Company’s strategy through various meetings between the Board                   and medium term include developing capabilities as a
of Directors and key management. The strategy is contained in the               transactional bank and transaction channel, as well as
2021-2025 Corporate Plan; the implementation is continuously                    becoming an operational bank for managing institutional
evaluated to ensure the effectiveness of implementing the                       funds.
strategy that has been determined through various internal report            4. In the field of other operational income, to increase
evaluations and meetings with heads of Division.                                profitability, Bank BTN’s business plan for the next three
                                                                                years is also focused on increasing Other Operational
In facing various challenges and seizing opportunities, the                     income (POL), which mostly comes from fee based income,
Company strives to increase its contribution to the housing sector              especially new sources based on transactions and services. To
and supports the transformation roadmap of the Ministry of SOEs                 strengthen the bank’s core business and initiatives to support
by establishing a vision to become the Best Mortgage Bank in                    SOEs synergy, in the medium term business development will
Southeast Asia by 2025 with the Company’s business aspirations                  also be carried out with plans to establish subsidiaries or
to be achieved in 2025. In 2023, the following strategy has                     inorganic strategies through capital investment plans in the
been formulated:                                                                fields of investment management, venture capital companies,
1. In the loan sector, a strategy has been developed to achieve                 insurance, the establishment of multi-finance subsidiaries
    an affordable housing ownership program to support the                      and cooperation for developing the Sharia Business Unit’s
    national housing program, develop the KPR market share in                   business. The plan to establish an Investment Management
    the emerging affluent and affluent segments and expand the                  (MI) subsidiary is planned to be carried out with a direct
    real estate value chain targeting MSMEs and Contractors.                    control capital participation scheme, in this case the planned
2. In the field of loan quality and financing, strategic initiatives            candidate company is an investment management company
    carried out in the short and medium term include improving                  as one of the SOEs’ subsidiaries.
    loan business processes, increasing the quality and                      5. In the field of sharia business, based on the Royal Islamic
    effectiveness of collections and accelerating the resolution of             Strategic Studies Center (RISSC) report entitled The Muslim
    bad loans in bulk (Asset Sales Strategy).                                   500: The World’s 500 Most Influential Muslims 2024,
                                                                                Indonesia is the country with the largest Muslim population




50              PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




    in the world. RISSC noted that the Muslim population in           Achievement of Performance Target
    Indonesia will reach 240.62 million people in 2023. As
    the country with the largest Muslim population, Indonesia’s       Based on the strategy that has been implemented, in 2023 the
    sharia financial industry has enormous potential. The concept     Company has produced good performance in accordance with
    of sharia banking is currently relevant to retail banking         its target. The Company’s performance analysis is presented as
    businesses such as mortgage financing and MSMEs, one              follows.
    of the arteries of the Indonesian economy. In line with the
    potential of national sharia banking, Bank BTN’s Sharia           Operational and Financial Performance
    Business Unit experiences unidirectional business growth.
    This is demonstrated by the performance that continues to         From an operational perspective, the Company’s business segments
    grow and the ability of Bank BTN’s Sharia Business Unit to        based on business type include 2 (two) main segments, namely the
    grow amidst the challenges of the pandemic.                       Conventional segment and the Sharia segment. The conventional
6. In the capital sector, to support healthy and sustainable          segment consists of consumer products and commercial products.
    business growth, strong capital support is needed by              Distribution of Consumer Loan products in 2023 was IDR 42.45
    considering the fulfillment of the bank’s minimum capital         trillion, an increase of 1.57% compared to 2022 which was IDR
    obligations in accordance with Basel III. In accordance with      41.79 trillion. This increase was mainly due to an increase in
    OJK Regulation No. 11/POJK.03/2016 dated January                  housing credit distribution from non-subsidized mortgages and
    29, 2016 concerning Minimum Capital Requirements for              other housing loans. The total value of Commercial Products in
    Commercial Banks, banks must provide capital in the form of       2023 was IDR 286.66 trillion, an increase of 9.60% compared to
    minimum capital based on risk rating and additional capital       2022 which was IDR 261.55 trillion. This increase was mainly due
    as a buffer based on Basel III (there are 3 (three) types,        to an increase in distribution of Commercial Credit products by
    namely capital conservation buffer, countercyclical buffer,       21.02% and Commercial Savings products by 7.68%. The value
    and capital surcharge).                                           of Commercial Credit distribution in 2023 was IDR 42.96 trillion,
7. In the field of human capital, in order to realize “One of         an increase of 14.10% compared to 2022 which was IDR 37.65
    Homes of Indonesia’s Best Talent”, the development of Human       trillion.The total funds for Commercial Savings products in 2023
    Resources (HR) in the short and medium term is aligned with       grew 8.84% reaching IDR243.69 trillion; it increased compared
    the Corporate Plan for 2021-2025. The medium-term plan in         to 2022 which reached IDR223.89 trillion. This increase was
    the HR sector aims to attract and retain the best talents who     mainly due to growth in Commercial Current Accounts of 23.33%.
    have superior capabilities and high productivity. As an effort
    to realize these aspirations, dimensions and parameters           From the sharia side, the total position value of Sharia Financing
    were formulated, namely, Ability to Attract Top Talent, Ability   distribution in 2023 grew to IDR37.11 trillion. This figure is an
    to Retain Top Talents, Talent’s Capability Readiness and          increase of 17.36% compared to financing distribution in 2022.
    Employee Productivity.                                            This increase is due to an increase in the growth contribution from
8. In the field of IT infrastructure, to support corporate plans,     consumer financing of IDR5.59 trillion, which is an increase of
    business aspirations and Bank BTN’s vision “To be the Best        19.16% compared to 2022. The total position of Sharia Savings
    Mortgage Bank in Southeast Asia by 2025”, Bank BTN has            funds in 2023 increased to IDR41, 80 trillion, an increase of
    prepared six themes in the IT strategic plan for 2021-2025.       20.68% compared to 2022 which reached IDR34.64 trillion. This
    In 2023, Bank BTN carried the main theme, namely Expand           increase was largely influenced by an increase in the nominal
    the Transformation, which will continue the implementation of     Sharia Giro by 55.59%. Sharia Savings and Sharia Deposits also
    upgrade/replace and/or enhancement of identifiedc ritical         experienced an increase of 12.26% and 6.99% respectively.
    systems. On this theme, Bank BTN continues to develop agile
    based systems (such as digital channels).                         From a financial perspective, total profit for the current year in
9. In the areas of good corporate governance (GCG), risk              2023 is IDR3.50 trillion, an increase of IDR455.92 billion or
    management and compliance, the Company continues                  14.97% compared to 2022 of IDR3.04 trillion. Total Interest
    to consistently strengthen its organizational structure and       Income and Profit Sharing in 2023 is IDR28.27 trillion, an
    business processes based on GCG principles through                increase of 9.21% from the total Interest Income and Profit
    strengthening the four main pillars of GCG implementation,        Sharing in 2022 of IDR25.89 trillion. Along with the increase in
    namely: (i) Commitment on Governance; (ii) Governance             interest income and profit sharing as well as the increase in profit
    Structure; (iii) Governance Process, and (iv) Governance          for the year, Bank BTN’s total assets also increased. Total assets
    Outcome.                                                          in 2023 are IDR438.75 trillion, an increase of 9.10% compared
10. In the field of network development (delivery channels), this     to 2022 which was IDR402.15 trillion. Bank equity reached IDR
    is carried out through developing the quantity and variety of     30.48 trillion, an increase of 17.64% from 2022 of IDR25.91
    channels with a network expansion strategy focused on four        trillion.
    main initiatives, namely regionalization strategies, branch
    expansion, agent banking and digital channels.




                                                                          PT Bank Tabungan Negara (Persero) Tbk                       51
Page 54
                Report of The Board of Directors, Board of
                Commissioners and Sharia Supervisory Board




Comparison Between Achieved and Targeted                             Obstacles Faced by The Company
Results
                                                                     Bank BTN’s business continues to focus on the housing sector and
In general, Bank BTN has met the expectations of Stakeholders.       related to housing, because the housing sector remains a sector
Various targets that have been set have been realized in 2023.       with high growth potential in line with increasing demand and the
Assets in 2023 will amount to IDR 441.79 trillion, with an           number of national backlogs. Bank BTN also remains optimistic
achievement of 101.81% above the target. This achievement            that it will continue to record good financial performance in line
was due to securities owned, credit/receivables/financing            with several new regulations issued in 2023. From the housing
provided and DPK successfully exceeding the set targets. Equity      sector, the Government has just made the latest adjustments to
achievement in 2023 is 103.16% with a realization of IDR             the subsidized housing price limits for 2023 and 2024 with an
30.48 trillion. Stronger equity in 2023 is supported by better       average increase of 7% from the end of June 2023 and 3% as of
profitability, thereby increasing retained earnings for that year.   1 January 2024. In addition, the Government has just issued the
                                                                     latest DTP VAT policy in the property sector for home purchases
Realization of interest income in 2023 amounted to IDR 28.28         with prices up to IDR5 billion with incentives of 100% for a
trillion with an achievement of 101.99% above the target.            maximum DTP VAT imposition of IDR2 billion of the house price
This achievement was due to improvements in credit quality           until June 2024 and 50% for the period July - December 2024.
and the Company’s strategy in expanding high yield credit.
Likewise, operational profit in 2023 managed to exceed the           There is also Administration Cost Assistance worth IDR4 million
target of 113.09% with a realization of IDR 4.54 trillion. This      for subsidized housing with a maximum price of IDR350 million
achievement was due to the success of the Company’s strategy         from November 2023 – December 2024. This housing-related
in improving credit quality, expanding high yield credit and         policy can certainly stimulate demand in the property sector and
optimizing operational income other than interest. In line with      encourage BTN’s loan growth as a bank that focuses on this
the achievement of operational profit, net profit in 2023 was        sector. Apart from that, the GWM incentives and PLM ratio are
realized at IDR 3.50 trillion with an achievement of 114.65%         expected to provide additional liquidity for BTN, which can later
which succeeded in exceeding the set target. This achievement        be used for lending, especially in the housing sector. Apart from
was due to the success of the Company’s strategy in improving        that, with the latest OJK Regulation (OJK Regulation 12/2023)
credit quality, expanding high yield credit and optimizing           regarding the spin off of Sharia Business Unit, BTN will follow
operational income. besides flowers. The profit in 2023 will be      these regulations and is in the process of reviewing various
the largest profit in the history of the Company’s existence.        existing options.


In terms of financial ratios, CAR in 2023 will be 20.07% with        Responding to global uncertainty and the era of high interest rates
an achievement of 103.24% above the target. This achievement         throughout 2023, BTN faces several challenges and opportunities
was contributed by increased profits, additional core capital        that can enable BTN to continue to perform positively.
obtained from the rights issue and the Company’s ability to          a. Until September 2023, there has been an increase in
manage its securities portfolio so that has no significant month          BI7DRRR of 225 bps since the first increase in August 2022,
to month downsides. NPL in 2023 will be 3.01%, better than the            which has put pressure on BTN’s interest expenses. As of
target of 3.45%. This is driven by business process improvement           September 2023, interest expenses grew 44% yoy, but it
initiatives such as the implementation of the Commercial Banking          is under control because the growth in interest expenses is
Center (CBC), Regional Loan Processing Center (RLPC) so that              lower than the increase in BI7DRRR which is 64%.
the credit process becomes more prudent and also asset sales         b. Apart from the increase in the reference interest rate,
are carried out periodically. ROA, ROE and NIM in 2023 will               banking liquidity throughout 2023 was also quite tight,
be 1.07%, 13.86% and 3.75% respectively. This achievement is              especially with the launch of new BI Open Market Operation
supported by an increase in the Company’s profit in 2023, an              instruments, namely Bank Indonesia Rupiah Securities (SRBI),
increase in operational income other than interest and efficiency         SVBI, and SUVBI. Due to tight liquidity, there is an increase
in overhead costs.                                                        in CoF which caused a decrease in NIM.


                                                                     On the other hand, BTN continues to strive to answer these
                                                                     challenges by continuing to maintain strong performance and
                                                                     developing other business lines:
                                                                     a. In September 2023, loans and refinancing grew solidly by
                                                                         9.9% yoy, in line with guidance for 2023, and continued to
                                                                         be increased by encouraging high yield loan distribution.




52          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




b. In September 2023, fee based income grew 67.3% yoy                 will provide incentives for Government Borne Value Added Tax
   with FBI’s portion of total income reaching 10.2%. FBI is an       (VAT DTP) for the purchase of new houses with prices up to
   additional source of income for BTN to reduce dependence           IDR5 billion and exempt VAT 100% for houses with a maximum
   on assets that are sensitive to interest rates.                    tax object sales value of IDR2 billion, which is valid until June
c. Efficiency on the operational side has also improved,              2024. Meanwhile, for the period July to December 2024, the
   reflected in a decrease in operational costs of 5.6% yoy until     Government will provide a VAT discount of 50%. The DTP VAT
   September 2023.                                                    incentive is expected to be the main driver of housing demand
d. BTN also actively manages the cost of funds by recomposing         throughout 2024. Apart from that, Bank Indonesia also provides
   funding which previously relied heavily on commercial              stimulus, namely easing the LTV/FTV ratio for Property Loans/
   deposits and shifting it to retail funds and operational current   Financing to a maximum of 100% for all types of property valid
   accounts.                                                          until December 2024.


                                                                      Various estimates of global and national economic conditions as
Important Things Expected to Occur in The                             well as the banking industry mean that the Company has the
Future and Business Prospects                                         opportunity to grow. Opportunities that the Company has include
                                                                      the following:
In January 2024, the World Bank lowered its projection for world      1. The Housing sector has good potential next year. In 2024,
economic growth to decline to 2.4% for 2024. Meanwhile, Bank               KPR is predicted to grow 9.5% (yoy), the growth of which is
Indonesia predicts that the world economy will slow down to                driven by demand for middle segment KPR.
2.8% in 2024. This development is driven by the inflation rate in     2. The relaxation of the Loan to Value (LTV) or Financing to
developed countries at over the target with the pressure starting          Value (FTV) policy has been extended until December 2024.
to subside. With this development in inflation, monetary policy       3. The increasingly massive acceleration of digital financial
interest rates including the Federal Funds Rate (FFR) are predicted        services, especially for internet and mobile banking users,
to remain high for a long period of time (higher for longer).              has the potential to increase CASA and fee based income.


Nevertheless, Indonesia’s economic growth in 2024 is predicted        By utilizing its internal advantages, the Company is optimistic
to remain strong and grow positively in the range of 4.8% -           that it will have good prospects in the future. In accordance
5.2%. Then the inflation rate in 2024 is predicted to be lower        with the Corporate Plan roadmap for 2021-2025. Bank BTN’s
compared to 2023 at Bank Indonesia’s target range of 2.5% ±           transformation journey in 2024-2025 is “Disrupt and Scaleup
1% yoy. To achieve this level of inflation, the Government and        Through Digital”, and it can be described as follows:
Bank Indonesia will implement a fiscal mix, monetary and real         1. Business
sector policies. Meanwhile, the average exchange rate of the              • Funding, namely by increasing BTN Solutions and
rupiah against the United States (US) dollar is estimated at around            offering sector-specific programs to more sectors as well
IDR15,500 at the end of 2024, while considering uncertainty in                 as increasing more analytical use cases.
global financial markets such as the Fed’s monetary policy. BI’s          • Lending, namely by launching a one-stop digital customer
benchmark interest rate remained at the level of 6.00% at the                  housing ecosystem, launching a business services market
end of 2023 and then begin decreasing in Semester II 2024.                     outside banking, launching MSME loans supported by
The financial services sector, especially banking, is predicted                property for other sectors (non-residential), as well as
to maintain its performance, returning to normal as before the                 increasing BTN Properti to become the 3rd largest online
pandemic. It is estimated that in 2024 Third Party Funds (TPF) will            property portal in Indonesia.
grow in the range of 8.0% - 9.0% and banking loan distribution            • Ecosystem, namely developing BTN Properti to become
will grow by 10.0% - 12.0%.                                                    the 3rd largest online property portal in Indonesia.
                                                                      2. Enabler
The housing sector still has enormous part for growth considering         • Rolling out advanced training modules for all roles across
the high number of national housing backlogs and the high                      the organization.
number of people who need adequate housing. Until September               • Improving the loan origination system (LOS) and
2023, total KPR recorded positive growth reaching 12.66% yoy.                  restructuring dashboard.
The extension of the stimulus provided by the Government to the           • Launching the BTN Innovation Program.
housing sector will have an impact on increasing demand for
houses in 2024. At the end of November 2023, the government




                                                                          PT Bank Tabungan Negara (Persero) Tbk                    53
Page 56
                 Report of The Board of Directors, Board of
                 Commissioners and Sharia Supervisory Board




Corporate Governance                                                  4. The right to request and access Company data and
                                                                         documents with the mechanism for exercising this right in
The Company realizes that the business sustainability of a               accordance with the provisions in the Articles of Association
business entity is not only measured by financial performance            and statutory regulations.
and increased profits alone, but also through the company’s
internal management, including the effective implementation of        The same rights as Series A Dwiwarna Shareholders and Series
good corporate governance (GCG). Basically, the Company               B Shareholders:
applies GCG principles with the aim and belief that this will         1. The right to attend, express opinions and vote at the GMS
ensure the creation of overall business balance so that all forms         based on one share, gives the holder the right to cast 1 (one)
of interest, covering business and social, individual and group,          vote.
internal and external, short term and long term as well as the        2. The right to obtain information about the company in a
interests of shareholders and stakeholders, will reach the balance        timely, correct and regular manner, except for matters of a
point. The application of GCG principles is very necessary, so            confidential nature.
that the Company becomes more resilient and able to survive           3. The right to receive a share of the Company’s profits intended
in the face of increasingly fierce competition. The Company               for Shareholders in the form of dividends and other profit
continues to strive to follow developments in best GCG practices          distributions, in proportion to the number of shares owned.
at relevant national, regional and international levels adjusted      4. The right to obtain a complete explanation and accurate
to needs.                                                                 information regarding the procedures that must be fulfilled in
                                                                          connection with holding a GMS.
In order to improve the implementation of sustainable governance,     5. In the event that there is more than one type and classification
Bank BTN always applies the five principles of GCG, namely                of shares in the Company, each shareholder has the right
transparency, accountability, responsibility, independence                to vote according to the type, classification and number of
and fairness. These five principles are implemented through               shares owned, and each shareholder has the right to be
fulfilling shareholder interests and providing equal treatment            treated equally based on the type and classification of shares
to all shareholders; sustainability and durability; implementing          he or she owns.
disclosure and transparency; as well as carrying out the duties       6. The right to transfer, relinquish rights or use as collateral for
and responsibilities of the Board of Commissioners in carrying            debt all or most of the Company’s assets exceeding 50%
out supervisory functions and providing advice to the Board of            of the total value of the Company’s net assets, either in one
Directors.                                                                transaction or several transactions that stand alone or are
                                                                          related to each other. The Board of Directors must obtain
In fulfilling shareholder interests, Bank BTN has fulfilled               approval from the GMS.
shareholder rights, including paying dividends fairly and on          The right to propose GMS agenda items with details:
time. The basis of the dividend distribution policy is based on the       a. Series A Dwiwarna shareholder;
decision of the Annual General Meeting of Shareholders (AGMS)             b. 1 (one) shareholder or more representing 1/20 (one
or Extraordinary General Meeting of Shareholders (EGMS) based                  twentieth) or more of the total number of shares issued
on Law no. 40 of 2007 concerning Limited Liability Companies.                  by the Company with valid voting rights.
The amount of the Company’s dividend will be determined at the
General Meeting of Shareholders (GMS). Factors that become            In ensuring the implementation of sustainability and resilience, the
the consideration in determining the amount and payment of            Company has measured sustainability performance and reported
dividends include the level of financial soundness, the level         it in the Sustainability Report every year. The Company contributes
of capital adequacy, the need for funds for further business          to handling sustainability issues and increasing the company’s
expansion, without reducing the rights of the Company’s GMS           resilience to sustainability risks. The Company has identified key
to determine otherwise in accordance with the provisions of the       stakeholder groups to be involved in discussing important issues
articles of association. Apart from distributing dividends, the       faced by the Company. In this way, the Company can accurately
Company has also fulfilled the following shareholder rights:          classify the most interested stakeholders in the Company in a
                                                                      reciprocal manner, the form of relationship that is established, the
Special Rights and Authorities of Series A Dwiwarna Shareholders:     topics that need to be communicated, and the appropriate efforts
1. The right to approve at the GMS.                                   to maximize the characteristics of the communication media.
2. The right to nominate candidates for members of the Board          These efforts aim to achieve the Company’s expected follow-up
   of Directors and candidates for members of the Board of            targets through effective communication.
   Commissioners.
3. The right to propose GMS agenda items.




54          PT Bank Tabungan Negara (Persero) Tbk
Page 57
                                                                                               2023 Annual Report




The Company understands that customers play a very important            to build harmonious and mutually beneficial relationships with
role in company’s business operations. Maintaining customer             the environment, community and stakeholders locally, nationally
privacy and security is an important thing to be done to build          and globally, but also as an effort by the Company to carry out
customer trust. The Company stores customer data taken during           its mission in providing a positive impact and contribution to
registration. Considering that all of this data is important            sustainable economic development. By implementing the Social
information and contains privacy for customers, this data should        and Environmental Responsibility Program, the Company aims
be safeguarded and protected. As technology advances, the               to contribute significantly to sustainable development, provide
more frequently and easily people access data-based services            support for long-term business success, and meet stakeholder
or applications, the greater the potential for cybercrime to occur.     expectations of the Company. The Company has a moral duty to
The Company has a Special Policy on Information Technology              develop business and promote a sustainable domestic economy
Security. This policy ensures that the information managed              by always being guided by the values of integrity, complying
continues to meet the principles of confidentiality, integrity and      with applicable laws and regulations, and upholding business
availability effectively and efficiently to ensure the success of the   ethics.
Company’s business. In addition, this policy plays an important
role in maintaining the Company’s image as a trusted bank that is       The Company as a Financial Services Institution caring about
able to protect customer information and is dedicated to meeting        the environment has adapted its loan granting policies to the
the needs of customers and the community.                               Environmental, Social and Governance concept. In distributing
                                                                        loans, the Company pays special attention to environmental
The Company also attempts other efforts to protect the security of      requirements in accordance with the precautionary principle. In
customer data by installing all software that has been authorized       this way, the Company can avoid mistakes in the form of providing
and regularly updated regularly, providing information technology       loans to developers who can use it for projects or activities that
security training to all users, and implementing password               have a negative impact on the environment. In order to ensure
management or standardization to ensure secure access to                that the loans provided is not used for projects or activities that
information held protected. Regular evaluations are also carried        are detrimental to the environment, several implementation
out to ensure that the Company’s data security architecture is          practices include providing environmental requirements that must
adequate and effective in protecting customer data.                     be met, including the implementation of Environmental Impact
                                                                        Analysis. This requirement is very important to avoid errors
The Company’s ability to achieve success and sustainability             in managing loan funds. Apart from that, the Company also
cannot be separated from the involvement and support of all             considers it important to have competency development activities
stakeholders; one of which is resources from suppliers. Guided          for developers or partners related to financing schemes and their
by the Special Policy Guidelines for the Implementation of              potential impact on the environment.
Procurement of Goods and/or Services, the Company applies
the principle of using domestic production while paying attention       Not only loans for housing projects, sustainability risk management
to the provisions of applicable laws and regulations in order           policies have also been developed for loan distribution to Small
to encourage the growth of domestic industry. The Company               and Medium Enterprises (SMEs). The Company carries out a
makes this happen by collaborating with local suppliers, namely         Social and Environmental Risk Assessment process to assess
suppliers domiciled in the country. If the needs for goods and          credit risk from an environmental and social perspective and
services cannot be met by local suppliers, or for certain reasons/      ensure that debtors, both new realization debtors and existing
considerations, then the Company will collaborate with overseas/        consumer debtors, do not have businesses that have the potential
foreign suppliers, namely those domiciled outside Indonesia.            to damage the environment and cause social conflict.


The Company is committed to achieving sustainable development           Apart from fulfilling environmental responsibilities through
by supporting the SOES’ Social and Environmental Responsibility         implementing regulations, the Company also strives to preserve
Program. In implementing the company’s business, the Social             the environment through conservation programs and activities. To
and Environmental Responsibility Program has become a part              support this program, the Company does not have operational
of the company’s business approaches with the aim of providing          offices located in conservation areas or those with protected
the wider community with economic, social and environmental             biodiversity.
benefits. The Company not only interprets the substance of the
Social and Environmental Responsibility Program as an effort




                                                                            PT Bank Tabungan Negara (Persero) Tbk                     55
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Regarding the Company’s relationship with its employees, the         through annual reports. The Company’s annual report contains
Company is fully committed to protecting employee rights.            the Company’s vision, mission, goals and objectives, financial
Fulfillment of employee rights will increase employee satisfaction   and non-financial performance, dividend policy, biographical
which then directly supports the Company’s performance in            details of all Directors and Board of Commissioners, details of
achieving sustainability. The Company regularly negotiates with      the attendance of each Director and Board of Commissioners at
the Labor Union to prepare and agree on a Collective Labor           all Directors and Board Commissioners meetings held throughout
Agreement.                                                           the year, remuneration for members of the Board of Directors and
                                                                     Board of Commissioners, related party transactions, as well as
As a step to foster cooperation, the Company always strives          Public Accounting offices along with audit and non-audit fees.
to create two-ways communication with employees, including
providing information regarding changes to the organizational        Apart from the annual report, the Company provides transparent
structure and additional business units to employees as well as      access to information and data, both financial and non-financial
matters related to personnel. This information can be accessed       related reports, to the public through various media such as
via LApS, an internal application that regulates the Company’s       websites (in two languages), mass media (press releases),
regulations.                                                         internal magazines/bulletins, meetings with analysts, IDX
                                                                     official website, product posters and banners, corporate actions,
The Company also understands that every employee has the right       company presentation materials to the public and so on.
to protection at work, which is stated in Occupational Health
and Safety. The Company attempts every effort to create a safe       The Company always maintains harmonious relationships with
and healthy work environment for employees in order to achieve       shareholders, potential investors, analysts and other capital
zero work accidents. A safe and healthy work environment             market communities by holding regular activities such as
influences increased productivity and employees’ sense of trust      meetings with analysts/investors on a national and international
in the Company, which can then lead to the company’s success.        scale as well as performance presentations to the public. The
The Company has provided contact details via the Company’s           Company also fulfills the obligation to disclose information as
website or Annual Report which stakeholders can use to submit        regulated in Capital Market regulations, such as Disclosure of
complaints, suggestions or possible violations of their rights.      Material Information or Facts, Financial Reports, Annual Reports
In improving the implementation of GCG at Bank BTN, the              and Certain Shareholder Reports.
Company’s management is committed to running the company
professionally based on behavior in accordance with the              Regarding the responsibilities of the Board of Commissioners,
code of ethics. Therefore, if there is a violation of the code of    the Board of Commissioners is the Company’s organ tasked with
ethics, management has prepared reporting media managed              carrying out general and/or specific supervision in accordance
transparently and fairly through the Whistleblowing System.          with the Articles of Association as well as providing advice to
                                                                     the Board of Directors. The Board of Commissioners is the party
Regarding the Company’s resilience, the Board of Commissioners       functioned to supervise and provide advice to the Board of
emphazise greatly on the effectiveness of the implementation         Directors for the interests of the Company and Shareholders in
of risk management and internal control systems. Through the         particular and stakeholders in general. Regarding the composition
Risk Monitoring Committee and Audit Committee, the Board             of the Board of Commissioners, currently the Company has 50%
of Commissioners always ensures that risk management and             Independent Commissioners from the total number of Board of
internal control systems run effectively.                            Commissioners. The composition of Independent Commissioners
                                                                     as of December 31 2023 comprised 4 (four) people out of the 8
The Company always implements the required information               (eight) composition of the Board of Commissioners.
disclosure for stakeholders. Regarding share ownership, the
Company has disclosed information including shareholders             In order to increase the role of the Board of Commissioners in
of 5% or more, direct and indirect share ownership of major          carrying out its supervisory function, the Board of Commissioners
shareholders and/or large shareholders, as well as direct and        is assisted by 3 (three) committees, namely the Audit Committee,
indirect share ownership of the Board of Directors and Board         Remuneration and Nomination Committee, and Risk Monitoring
of Commissioners. The company also discloses information             Committee.




56          PT Bank Tabungan Negara (Persero) Tbk
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In order to evaluate the implementation of GCG, the Company          5. Updating Bank BTN Performance Management System
carries out GCG Assessments carried out periodically and                 (STORM) SOP Policy by preparing Special Strategic Plan
consistently every year, consisting of self-assessments and              and Performance Policies.
external parties assessments.. Governance self-assessments are       6. Implementing new policy architecture.
carried out periodically at the end of June and December each        7. Implementing the ESG concept in all Bank business lines
year. In 2023, standards for implementing Governance apart               through the preparation of the BTN 2023-2028 ESG
from referring to OJK Regulation no. 17 of 2023 concerning               roadmap and framework.
the Implementation of Governance for Commercial Banks also           8. Conducting further ICoFR implementation studies with related
begins to follow the provisions of OJK Circular Letter Number 13/        divisions.
POJK.03/2017 concerning the Implementation of Governance             9. The Company has implemented WBS independently, namely
for Commercial Banks.                                                    WBS management is carried out by a third party.
                                                                     10. Conducting risk maturity assessments to determine the level
The self-assessment results in June 2023 and December 2023 were          of risk management and understanding.
ranked 2 (two), which reflects that the Company’s Management
has implemented generally good Governance. From the results
of the assessment, the Company has made improvements by              Assessment of The Committee Under The
following up on recommended several weaknesses based on the          Board of Directors
assessment results.
                                                                     The Company formed and determined the structure and
Apart from the self-assessment, in 2023 the Company also carried     membership of Committees under the Board of Directors in order
out a third party assessment to obtain a second opinion on the       to support the implementation of the Board of Directors’ duties.
quality of GCG implementation in order to continuously improve       These committees were formed to facilitate monitoring and create
the quality of GCG implementation. The assessments include           effective problem solving and development of strategic aspects
the Corporate Governance Perception Index (CGPI) survey              by the Company in accordance with applicable regulations.
conducted by the Indonesian Institute for Corporate Governance       These Committees include:
(IICG) and the GCG assessment based on the ASEAN Corporate           1. Risk Management Committee
Governance Scorecard standards carried out by the FSA and the        2. Asset and Liability Management Committee (ALCO)
Indonesian Institute for Corporate Directorship (IICD).              3. Credit Policy Committee
                                                                     4. Credit Committee
The Company’s CGPI score in 2023 obtained 90.52 with the title       5. Human Capital Committee
“Most Trusted”. The Company has carried out follow-up actions        6. Information Technology Steering Committee
on the recommendations from the assessment results as follows:       7. Transformation Steering Committee
1. Talent development program carried out by Bank BTN to             8. Business Committee
    fulfill the shortage of employees in L1 and L2 positions.        9. Environmental, Social and Governance Committee (ESG)
2. Bank BTN’s organizational structure is in accordance with
    the Bank’s business strategy plan and the aspirations of the     To measure the effectiveness of the performance of committees
    Board of Directors as well as the strategies outlined in the     under the Board of Directors in assisting the Board of Directors
    Corporate Plan, including establishing an IT Security Division   in carrying out company management, an assessment of the
    and a Wholesale Transaction Division.                            Committees under the Board of Directors is carried out. The
3. Strengthening the organs in Regional Offices, including by        performance assessment procedures for committees under the
    strengthening the control function by establishing Regional      Board of Directors have been carried out by the Board of Directors
    Business Control (RBC) which oversees Branch Business            periodically with the assessment criteria for the performance of
    Control (BBC), CBC-Business Control (CBC-BC), and Regional       Committees under the Board of Directors, namely compliance
    Loan Processing Center-Business Control (RLPC- BC).              with meeting implementation and attendance at meetings during
4. The Company has plans and strategies listed in the Long Term      the financial year. During 2023, the Board of Directors assessed
    Plan including in the Bank Business Plan and Company’s           that the committees under the Board of Directors had carried out
    Work and Budget Plans.                                           their duties and responsibilities well.




                                                                         PT Bank Tabungan Negara (Persero) Tbk                    57
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Changes in The Composition of Board of                               COMPOSITION OF THE BOARD OF DIRECTORS FOR THE PERIOD
Directors Members                                                    OF MARCH 16, 2023 –DECEMBER 31, 2023


During 2023, there were changes to the composition of the Board      On March 16, 2023, the 2023 Annual GMS decided:
of Directors. Changes in the composition of the Board of Directors   1. Respectfully removing Haru Koesmahargyo as President
are carried out based on the Company’s needs. Changes in the            Director of the Company.
composition of the Board of Directors are as follows:                2. Transferring Nixon L. P. Napitupulu’s assignment from Vice
                                                                        President Director to President Director of the Company.
COMPOSITION OF THE BOARD OF DIRECTORS FOR THE PERIOD                 3. Appointing the names below as Company Management:
OF JANUARY 1, 2023 –JANUARY 10, 2023                                    a. Oni Febriarto Rahardjo - as Vice President Director;
                                                                        b. Hakim Putratama - as Director of Institutional Banking
The composition of the Board of Directors for the period January
1, 2023 to January 10, 2023 comprises 9 (nine) people                As a result, the composition of the Board of Directors for the
consisting of 1 (one) President Director, 1 (one) Vice President     period March 16, 2023 to December 31, 2023 comprises 10
Director and 7 (seven) Directors as follows.                         (ten) people consisting of 1 (one) Main Director, 1 (one) Vice
                                                                     President Director and 8 (eight) Directors as follows.
Haru Koesmahargyo        : President Director
Nixon L. P. Napitupulu   : Vice President Director                   Nixon L. P. Napitupulu     : President Director
Hirwandi Gafar           : Director of Consumer                      Oni Febriarto Rahardjo     : Vice President Director
Nofry Rony Poetra        : Director of Finance                       Hirwandi Gafar             : Director of Consumer
Eko Waluyo               : Director of Human Capital,                Nofry Rony Poetra          : Director of Finance
                           Compliance & Legal                        Eko Waluyo                 : Director of Human Capital,
Elisabeth Novie Riswanti : Director of Assets Management                                          Compliance & Legal
Andi Nirwoto             : Director of IT & Digital                  Elisabeth Novie Riswanti   : Director of Assets Management
Jasmin                   : Director of Distribution and Funding      Andi Nirwoto               : Director of IT & Digital
Setiyo Wibowo            : Director of Risk Management               Jasmin                     : Director of Distribution and
                                                                                                  Funding
COMPOSITION OF THE BOARD OF DIRECTORS FOR THE PERIOD                 Setiyo Wibowo              : Director of Risk Management
OF JANUARY 11, 2023 – MARCH 15, 2023                                 Hakim Putratama            : Director of Institutional Banking


On January 11, 2023, the Extraordinary GMS decided to
respectfully dismiss and reappoint Andi Nirwoto as Director of IT
& Digital. As a result, the composition of the Board of Directors
for the period 11 January 2023 to March 15, 2023 comprises
9 (nine) people consisting of 1 (one) President Director, 1 (one)
Vice President Director and 7 (seven) Directors as follows.


Haru Koesmahargyo          : President Director
Nixon L. P. Napitupulu     : Vice President Director
Hirwandi Gafar             : Director of Consumer
Nofry Rony Poetra          : Director of Finance
Eko Waluyo                 : Director of Human Capital,
                             Compliance & Legal
Elisabeth Novie Riswanti   : Director of Assets Management
Andi Nirwoto               : Director of IT & Digital
Jasmin                     : Director of Distribution and
                             Funding
Setiyo Wibowo              : Director of Risk Management




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                                                                                             2023 Annual Report




Closing

The Board of Directors would like to express the highest appreciation for the trust, commitment and cooperation of all stakeholders,
especially to the management team and all employees who have worked hard and were able to achieve good performance in 2023.
The Board of Directors gives the highest appreciation for the direction given by the Board of Commissioners which greatly contributed to
achieving the Company’s performance. The Board of Directors also expressed the highest appreciation to the Company’s shareholders,
customers and work partners.


The Company will strive to continuously improve service quality to meet stakeholder expectations. The Company’s success in providing
good performance cannot be separated from the support and trust of all stakeholders. Therefore, the Board of Directors would like to
express the deepest gratitude for this support and trust.


In the future, as the government’s Agent of Development, the Company will carry out its function as a leading and trusted intermediation
institution, providing financial literacy and inclusion for all Indonesian people.



                                                      Jakarta, February 2024
                                                  On behalf of the Board of Directors




                                                     Nixon L. P. Napitupulu
                                                           President Director




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   59
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                Report of The Board of Directors, Board of
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     DIREKSI
     1. Hakim Putratama: Director of Institutional Banking, 2. Andi Nirwoto: Director of IT & Digital,
     3. Setiyo Wibowo: Director of Risk Management, 4. Jasmin: Director of Distribution and Funding,
     5. Nixon L. P. Napitupulu: President Director,




          1                              2                             3                          4      5




60         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




6. Oni Febriarto Rahardjo: Vice President Director, 7. Elisabeth Novie Riswanti: Director of Assets Management,
8. Eko Waluyo: Director of Human Capital, Compliance & Legal, 9. Hirwandi Gafar: Director of Consumer,
10. Nofry Rony Poetra: Director of Finance,




      6                          7                                 8                             9                10




                                                                          PT Bank Tabungan Negara (Persero) Tbk    61
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          Report of The Board of Directors, Board of
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THE BOARD OF
COMMISSIONERS’ REPORT




                                                       Chandra M. Hamzah
                                                         President/Independent
                                                             Commissioner




With the presence of Almighty God for His mercy and grace, in 2023 the Company
recorded good performance by implementing the Company’s vision, namely to become
the Best Mortgage Bank in Southeast Asia by 2025. The Company continues to grow and
transform amidst economic conditions that have not completely improved.




62     PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




Dear Shareholders and Stakeholders,



Below we present a report on the supervision and provision of            strategy. Supervision of the formulation of the Company’s
advice from the Board of Commissioners regarding the Company’s           strategy is carried out by supervising the preparation of the Bank
management for the 2023 fiscal year. In this report, we present          Business Plan and providing approval for the Business Plan.
an assessment of the performance of the Board of Directors               Strategy implementation in the Company must be in line with the
during 2023, views on business prospects prepared by the Board           Company’s vision to become the Best Mortgage Bank in Southeast
of Directors, implementation of good corporate governance,               Asia by 2025. For this reason, the Company must consider several
assessment on Committees under the Board of Commissioners and            aspects including ROI, sales and volume, especially related to
changes to the composition of the Board of Commissioners.                mortgages. Then, the Board of Commissioners also emphasizes
                                                                         aspects of implementing Governance, Risk and Compliance
                                                                         (GRC) in the Company. The Board of Commissioners’ supervision
Board of Directors Performance                                           of the implementation of the Company’s governance to achieve
Assessment                                                               the Company’s vision has been carried out in accordance with
                                                                         the strategy prepared by the Board of Directors.
The Board of Commissioners always carries out supervisory
functions and provides advice to the Board of Directors. Before          Supervision of strategy implementation is carried out through
conveying the Board of Commissioners’ views on the performance           meetings with the Board of Directors which are held once a
achievements of the Board of Directors, the Board of Commissioners       month. In addition, the Board of Commissioners also supervises
convey the frequency and method of providing advice to the Board         the Company’s management to ensure that the Board of
of Directors as well as the Board of Commissioners’ supervision of       Commissioners’ directions have reached all employees. In this
strategy formulation and implementation.                                 supervision, the Board of Commissioners focuses on risk appetite
                                                                         and risk tolerance, and management efforts in implementing this
Frequency and Methods of Providing Advice to                             strategy are in accordance with the implementation of GCG. The
The Board of Directors                                                   Board of Commissioners also considers several aspects of other
                                                                         strategic initiatives from the Board of Directors, and the Board of
Board of Commissioners continued to carry out supervisory                Commissioners also emphasizes that the implementation process
functions and provide advice to the Board of Directors. Intensive        must remain within the implementation of good governance.
communication is always carried out to discuss significant issues,
including consistent implementation of the 2023 business plan.           The Board of Commissioners has carried out supervisory duties,
Advice from the Board of Commissioners to the Board of Directors         directing, providing advice, monitoring and evaluating the
was provided formally and informally.                                    implementation of the Company’s strategic policies, including:
                                                                         1. Regularly reviewing Company Performance Bankwide and
The provision of advice from the Board of Commissioners to the               Sharia Business Unit.
Directors was carried out through holding Board of Commissioners         2. Monitoring the implementation of the company’s planned
meetings, meetings between the Board of Commissioners and the                strategic initiatives on a regular basis.
Board of Directors, responses, directions and/or views of the Board      3. Regular monitoring of risk management implementation
of Commissioners through written letters, Committee meetings under           including risk profile, Bank soudness level, KPMM, risk
the Board of Commissioners and working visits from the Board of              appetite, risk tolerance and recovery plan.
Commissioners. We consider internal meetings of the Board of             4. Approving the preparation and changes to the Business Plan
Commissioners and meetings with the Board of Directors to be one of          and Company Work Plan & Budget.
the most effective forms of supervision. Throughout 2023, the Board of   5. Supervising the Board of Commissioners over the Performance
Commissioners has held 52 (fifty two) internal Board of Commissioners        and Implementation of the Bank’s Business Plan.
meetings and 12 (twelve) joint meetings, consisting of 6 (six) Board     6. Adjusting Bank Business Plan and Company Work Plan & Budget.
of Commissioners meetings with the Board of Directors and 6 (six)        7. Company Organizational Development and Human
meetings Directors together with the Board of Commissioners.                 Resources (HR) management strategy.
                                                                         8. Other strategic policies.
Supervision of Strategies’ Formulation and
Implementation                                                           Views on The Performance of The Board of
                                                                         Directors
In carrying out its supervisory and advisory functions, the Board
of Commissioners is actively involved in formulating the Bank’s          In providing an assessment of the performance of the Board of
strategy and supervising the implementation of the Company’s             Directors, the Board of Commissioners considers several aspects



                                                                             PT Bank Tabungan Negara (Persero) Tbk                     63
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as the basis for its assessment. These aspects include economic        In the midst of these economic conditions, the Board of Directors
conditions, performance achievements, namely operational               was able to face the challenges and opportunities that occurred
performance, financial performance and the company’s soundess          by recording good performance in 2023. The new realization
level. An assessment of the performance of the Board of Directors      distribution value for Consumer Loan and Financing products in
can be conveyed as follows.                                            2023 was IDR 50.94 trillion, an increase of 4.90% compared to
                                                                       2022 which was IDR 48.56 trillion. The total position of Retail/
In 2023, global economic conditions were slightly restrained.          Consumer Third Party Funds (DPK) in 2023 was IDR 72.51
Until December 2023, the Fed has raised its benchmark interest         trillion, an increase of 2.82% compared to 2022 which was
rate to 5.50% or reaching 525 bps since February 2022. This            IDR 70.52 trillion. The new realization distribution value for
aggressive increase in the Federal Funds Rate (FFR) is expected to     Commercial/Corporate Credit and Financing products in 2023
remain high with a longer cycle encouraging the continued strength     was IDR 45.10 trillion, an increase of 15.33% compared to 2022
of the US dollar currency. The United States (US) puts pressure        which was IDR 39.11 trillion. The total position of Institutional/
on the weakening of exchange rates in various countries. The           Commercial Third Party Funds (DPK) in 2023 was IDR 277.42
pressure to weaken the exchange rate increases in line with the        trillion, an increase of 10.35% compared to 2022 which was
high uncertainty in global financial markets. The outflow of foreign   IDR 251.41 trillion.
portfolio investment adds to exchange rate pressure in developing
countries, including Indonesia. In January 2024, the World Bank        From the sharia side, the new realization distribution value for
lowered its projection for world economic growth in 2023 to 2.6%       Sharia Financing in 2023 was IDR 10.63 trillion, an increase
and decreased slightly to 2.4% for 2024. This condition is driven by   of 29.36% compared to 2022 which was IDR 8.21 trillion. The
the inflation rate in developed countries which is above the target    total position of Sharia Third Party Funds (DPK) in 2023 was
with pressure starting to decrease. With this inflation development,   IDR 41.80 trillion, an increase of 20.68% compared to 2022
monetary policy interest rates including the FFR are expected to       which was IDR 34.64 trillion. The increase in TPF was largely
remain high for a long period of time (higher for longer).             influenced by the nominal increase in Sharia Current Accounts of
                                                                       55.59%. Sharia Savings and Sharia Deposits also experienced
Even though the global economy slows dwon, national economic           an increase of 12.26% and 6.99% respectively.
growth continued its positive trend in the fourth quarter of
2023. Overall, the Government estimated that the Indonesian            From a financial perspective, total income for the year in 2023
economy grew by 4.8% -5.2% yoy at the end of 2023 supported            was IDR3.50 trillion, an increase of IDR455.91 billion or 14.97%
by several policy incentives at the end of the year to support         compared to 2022 of IDR3.04 trillion. Along with the increase in
household consumption. Both general and core inflation rates           interest income and profit sharing as well as the increase in profit for
remain under control with coordination between Bank Indonesia,         the year, Bank BTN’s total assets also increased. Total assets in 2023
the Central and Regional Governments resulting the inflation rate      yielded IDR439.89 trillion, an increase of 9.38% compared to
to remain maintained at the level of 3.0% ± 1.0% at the end of         2022 which was IDR402.15 trillion. Bank equity reached IDR30.41
2023. Meanwhile, the Rupiah exchange rate is influenced by the         trillion, an increase of 17.36% from 2022 of IDR25.91 trillion.
dynamics happening in the global market; the pressure on the
Rupiah continues, and the Rupiah exchange rate against the US          Apart from operational and financial performance, the bank’s
Dollar was at the level of 15,399 at the end of 2023.                  soundness level also becomes one of the considerations for the
                                                                       Board of Commissioners to assess the performance of the Board
From the banking side, the Financial Services Authority noted          of Directors. The level of bank health reflects the results of an
that the performance of the financial services sector, especially      assessment of the company’s condition regarding the bank’s
banking, in 2023 was still solid with indicators of available          risks and performance which can be seen from the final ranking
capital and liquidity as well as controlled credit risk. The banking   of the assessment results based on OJK Regulation No. 04/
intermediation function in November 2023 again recorded an             POJK.03/2016 dated January 26, 2017 concerning Assessment
increasing trend with loan growing by 9.74% yoy. This growth           of the Soundness Level of Commercial Banks and OJK Circular
was mainly supported by working capital loans which grew               Letter No. 14/SEOJK.03/2017 Dated March 17, 2017
10.14% yoy. Meanwhile, on a monthly basis, nominal growth              Concerning Assessment of the Soundness Level of Commercial
in banking loans increased by IDR63 trillion to IDR6,966 trillion.     Banks Using a Risk - Based Bank Rating Approach which includes
Meanwhile, Third Party Funds in November 2023 were recorded            4 (four) factors, namely Risk Profile, Governance, Profitability
to grow by 3.04% yoy to IDR8,216 trillion, with the growth rate        (Earnings) and Capital.
increasing, mainly driven by an increase in deposits of 3.50%
yoy. Credit risk continued to decline with a banking NPL ratio of      The bank’s soundness rating for December 2023 (Self Assessment)
2.36%. On the other hand, Covid-19 restructuring loans again           places at a composite rating of 2 (two)/PK2, which reflects
recorded a decline of IDR15.84 trillion to IDR285.32 trillion,         the bank’s generally healthy condition so that it is considered
with the number of customers also decreasing to 1.14 million           capable of facing significant negative influences from changes in
customers, and after in October 2023 it was recorded at 1.22           business conditions and other external factors.
million customers.




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Views on Business Prospects Prepared by                               The Board of Commissioners always carries out a supervisory
The Board of Directors                                                function to ensure that the management of the Company carried
                                                                      out by the Board of Directors is in accordance with applicable
In January 2024, Bank Indonesia predicted that the world              laws and regulations and provides the necessary advice/
economy will slow down to 2.8% in 2024. This development              opinions on every strategic action/activity in order to achieve
is driven by the inflation rate in developed countries which is       the Company’s objectives. The implementation of GCG in the
above the target with pressure starting to ease. Nevertheless,        Company has been going well. This can be seen in the following
Indonesia’s economic growth in 2024 is predicted to remain            components.
strong and grow positively in the range of 4.8% - 5.2%. Then the
inflation rate in 2024 is predicted to be lower compared to 2023      Risk Management
at Bank Indonesia’s target range of 2.5% ± 1% yoy.
                                                                      In order to implement risk management and as a follow-up to
In 2024, people’s purchasing power is expected to increase in         the implementation of Basel II, especially pillar 1, Bank BTN has
line with improvements in the national economy and the holding        implemented:
of elections. House selling prices are also expected to increase      1. Measuring Credit Risk by mapping credit risk exposure
evenly, supported by infrastructure developments, improvements             according to portfolio categories in calculating Credit
in the national economy, and positive sentiment regarding the              Risk RWA using the Standardized Approach referring to
success of holding elections. This is also supported by the results        OJK Circular Letter No. 11/SEOJK.03/2018 concerning
of Bank BTN’s House Price Index (HPI) research in Quarter III -            Amendments to OJK Circular Letter No. 42/SEOJK.03/2016
2023, house price growth continues to strengthen at 8.66% yoy.             concerning Guidelines for Calculating Risk-Weighted Assets
This HPI growth is supported by growth in all types of houses,             for Credit Risk Using a Standard Approach. Currently, the
namely small type houses (21 m2 - 36m2), medium type houses                Bank has implemented the calculation of Risk Weighted
(37m2 - 45m2) and large types (46m2 - 70m2).                               Assets (RWA) for Credit Risk in accordance with OJK Circular
                                                                           Letter No 24/SEOJK.03/2021 datedOctober 7, 2021
After considering economic conditions, the Board of                        concerning Calculation of Risk Weighted Assets for Credit
Commissioners is of the opinion that the business prospects                Risk using the Standard Approach for Commercial Banks in
prepared by the Board of Directors are appropriate. The Board              accordance with regulatory provisions applicable.
of Commissioners believes that the Company will be able to take       2. The use of the Standardized Model for market risk
advantage of existing opportunities, including the housing sector          is in accordance with OJK Circular Letter No. 38/
having good potential next year, the relaxation of the Loan to             SEOJK.03/2016 dated September 8, 2016 concerning
Value (LTV) or Financing to Value (FTV) policy being extended until        Guidelines for Using Standard Methods in Calculating
December 2024, as well as the acceleration of digital financial            Minimum Capital Requirements for Commercial Banks by
services which is increasingly massive, especially among internet          Taking Market Risk into Account and currently the Bank has
and mobile banking users who have the potential to increase                prepared OJK Circular Letter No. 23/SEOJK.03/2022
CASA and fee based income.                                                 dated December 7, 2022 concerning Calculation of Risk-
                                                                           Weighted Assets for Market Risk for Commercial Banks
                                                                           implemented starting January 1, 2024 by carrying out trial
Views on The Implementation of Bank                                        calculations and reporting to the FSA for Market RWA for
Governance                                                                 June 2023, September 2023 and December 2023.
                                                                      3. Calculation of minimum capital requirements using the
The Company always strengthens its commitment to implement                 Standard Approach Operational Risk RWA calculation
and uphold GCG principles consistently in every daily business             by referring to OJK Circular Letter Number No. 06/
activity, comply with all applicable regulations and legislation,          SEOJK.03/2020 dated April 29, 2020 and currently the
and is always open to improvements in accordance with best                 Bank is recording loss data related to operational risks in
practices to suit the goals, vision and the Company’s mission              accordance with Regulatory provisions.
and creating added value for the Company for Shareholders and
other stakeholders.                                                   Currently, Bank BTN has a Risk Appetite Statement (RAS) as a
                                                                      qualitative statement and quantitative measure of the Bank’s
The implementation of good corporate governance becomes an            main risks. RAS disclosure is carried out in writing and properly
important indicator for shareholders to assess the Company’s          documented by the Risk Management Work Unit. Determination
performance and believe that the Company has been                     of RAS limits is carried out by the Board of Commissioners
managed well and is believed to protect the interests of all          and Directors. In determining RAS, economic, environmental
shareholders. Bank BTN is committed to continuing to improve          and social sustainability has been considered then aligned to
the implementation of good corporate governance in order to           the preparation of the Company’s Work and Budget Plan, Risk
understand the expectations of each shareholder.                      Appetite, Risk Tolerance and Recovery Plan.




                                                                          PT Bank Tabungan Negara (Persero) Tbk                   65
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                 Report of The Board of Directors, Board of
                 Commissioners and Sharia Supervisory Board




In the risk management system, the Company implements a               - Internal Control Integrated Framework in preparing an internal
risk management process supported by 4 (four) pillars of risk         control framework to ensure the adequacy of operational and
management implementation, namely:                                    financial controls, financial reporting, operational effectiveness
1. Active Supervision of the Board of Commissioners and               and efficiency, as well as compliance with applicable laws
     Directors.                                                       and regulations. Internal control objectives according to
2. Adequacy of risk management policies and procedures and            COSO include operational objectives, reporting objectives and
     implementation of risk limits.                                   compliance objectives.
3. Adequacy of risk identification, measurement, monitoring
     and control processes and Information Systems.                   The Board of Commissioners is responsible for ensuring that
4. Instructing Risk Control System.                                   the Board of Directors has monitored the effectiveness of the
                                                                      implementation of the internal control system, so that the Board
In the active supervision of the Board of Commissioners and           of Commissioners has an active role in ensuring that there are
Directors, the Organs of the Board of Commissioners and               improvements to the Company’s problems that can reduce the
Directors are assisted by several committees in carrying out          effectiveness of the internal control system. The Board of Directors
banking duties and activities in accordance with applicable           is responsible for establishing policies and strategies as well
Regulatory provisions. Then, it is continued to the layers below      as internal control procedures. The Board of Directors is also
the organs of the Board of Commissioners and Directors, namely        responsible for monitoring the adequacy and effectiveness of the
the Risk Management Work Unit, Compliance Work Unit, Internal         internal control system. The Board of Commissioners and Directors
Audit Work Unit and Policy Work Unit.                                 are responsible for improving work ethics and high integrity as
                                                                      well as creating an organizational culture that emphasizes to all
The internal control system implemented by Bank BTN is considered     Bank employees the importance of internal control that applies
to be effective and adequate, as reflected in the effectiveness       in the Company.
of the implementation of internal control functions, including
internal audit, risk management, compliance, financial and            Furthermore, the monitoring process by management and a well-
operational control functions. The Company’s risk management          implemented control culture encourage the creation of a Control
is based on good Corporate Governance and the involvement             Environment that reflects the overall commitment, behavior,
of all Company organs in managing risk management. This               concern and steps taken by the Board of Commissioners and
can be seen from the composition of the Company’s risk                Directors in carrying out the Bank’s operational control activities.
management organization. The Board of Commissioners through           The Control Environment elements include:
Risk Monitoring Committee meetings and the Board of Directors         1. Adequate organizational structure;
through Risk Management Committee meetings are responsible            2. Leadership style and Bank Management philosophy;
for ensuring that the implementation of Risk Management is            3. Integrity and ethical values and competence of all employees;
adequate in accordance with the characteristics, complexity and       4. Bank’s human resource policies and procedures;
risk profile of the Company on a periodic basis. Based on the         5. Attention and direction of Bank Management and other
results of the review carried out in 2023, the Board of Directors         Committees, such as the Risk Management Committee; And
and Board of Commissioners assess that the risk management            6. External factors that influence Bank operations and the
system has been implemented adequately.                                   implementation of risk management.


The Board of Commissioners and Directors play an active               Bank BTN, through the Internal Audit Division (IAD), carries out
role in the risk management process in order to mitigate the          periodic Internal Control Assessments (ICA) in order to evaluate
Company’s risks, including through monitoring the Quality of Risk     the effectiveness of the internal control system. This assessment
Management Implementation, including risk governance, risk            measures the quality of internal control of the auditee work unit
management framework, risk management process, adequacy               over the 5 (five) COSO Framework internal control components
of management information systems and HR as well as the               using the Internal Control Assessment (ICA) questionnaire rating
adequacy of the internal control system.                              criteria and methodology as well as the auditor’s professional
                                                                      judgment through direct testing (walkthrough) in the field. In
Internal Control System                                               2023, Bank BTN has implemented internal control in accordance
                                                                      with control principles and overall the quality of the internal
The implementation of the internal control system is carried out in   control system has been running well.
order to support the achievement of the Company’s performance
objectives, increase value for stakeholders, minimize the risk        In general, the steps taken by the Bank to ensure the implementation
of loss and maintain compliance with applicable laws and              of effective monitoring activities include:
regulations. The Company implements an internal control system        1. Ensuring that the monitoring function has been clearly defined
as an important supervisory component in the management of                 and well structured within the Bank organization.
the Company and as a reference for healthy and controlled             2. Determining the work unit or employee assigned to monitor
operational activities. The Company refers to the Committee of the         the effectiveness of internal control.
Sponsoring Organizations of the Treadway Commission (COSO)



66          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




3. Determining the appropriate frequency for monitoring                  Whistleblowing System
   activities based on the risks inherent in the Bank and the
   nature or frequency of changes occurring in operational               The Company’s Violation Reporting System (WBS) policy is guided
   activities.                                                           by the Minister of SOEs Regulation No.PER-2/MBU/03/2023
4. Integrating the Internal Control System into operational              dated March 3, 2023 concerning Guidelines for Governance
   activities and provide routine reports such as bookkeeping            and Significant Corporate Activities of State-Owned Enterprises
   journals, management reviews and reports regarding                    and OJK Regulation No. 39/POJK.03/2019 dated December
   approval of exceptions or deviations from established                 19, 2019 concerning Implementation of Anti-Fraud Strategies for
   policies and procedures (justification for irregularities) which      Commercial Banks, as well as Technical Instructions No. PT.7-B.2
   are then reviewed.                                                    dated October 31, 2023 concerning Whistleblowing System
5. Reviewing documentation and evaluation results from work              Management. The Company’s WBS is part of the internal control
   units or employees assigned to carry out monitoring.                  system and the implementation of anti-fraud strategies to prevent
6. Determining information or feedback in an appropriate                 its occurrence irregular practices and aims to detect early and
   format and frequency.                                                 prevent irregularities or violations and gradually create an open,
                                                                         sincere, honest and responsible work climate in the Company.
In addition, the Company also carries out an Audit on Compliance
with Legislation and Internal Control (PSA 62) to ensure the Bank’s      The mechanism for submitting violation reports through the
compliance with legal articles, regulations and cooperation              WBS is carried out by making a complaint/disclosure report
agreements as well as internal control compliance which includes         and sending it based on indications of who the violation was
the control environment, Risk Identification, control activities,        committed. The Company is committed to providing protection to
information and communication and monitoring. Evaluation of              every whistleblower. Protection for the Whistleblower is provided
the effectiveness of the Bank’s internal control (risk control) system   to support the courage of the Whistleblower in reporting suspected
is carried out in all Head Office units (divisions/desks/Regional        violations and/or if there is retaliation from the Reported Party.
Offices) as well as Branch Offices, both Conventional and Sharia.        For Whistleblowers who submit WBS reports that are recognized
Everything related to issues regarding the adequacy of internal          for their level of accuracy and in good faith, the Company can
control has been reported directly to the Board of Directors             provide a guarantee of protection.
through the President Director and to the Board of Commissioners
through the Audit Committee. Follow-up efforts have been made to         The Company’s WBS was managed by an independent WBS
minimize risks and overcome problems that arise.                         Manager from an external party (Deloitte). The Company has
                                                                         also collaborated with the Corruption Eradication Commission
The Board of Directors and Board of Commissioners are                    (KPK) of the Republic of Indonesia regarding handling the WBS
committed to ensuring that Corporate Governance is carried out           in efforts to eradicate corruption. This collaboration aims to
well as a basis for achieving goals to maintain and increase             build and improve the effectiveness and efficiency of handling
the value of the Company. One of the implementations of good             complaints both internally and externally in an integrated,
corporate governance is ensuring that the internal control system        professional, transparent and accountable manner by prioritizing
is implemented adequately.                                               confidentiality in the context of optimizing the eradication of
                                                                         criminal acts of corruption.
The Board of Directors and the Board of Commissioners or the
Audit Committee conduct a review once a year of the results of           The Company is committed to providing protection to every
the evaluation of the effectiveness of the Bank’s internal control       whistleblower. Protection for the Whistleblower is provided to
system which includes five main components of control, namely            support the courage of the Whistleblower in reporting suspected
the Control Environment, including Supervision by Management             violations and/or if there is retaliation from the Reported Party.
and Management Culture Oversight and Control Culture), Risk              For Whistleblowers who submit WBS reports recognized for their
Identification and Assessment, Control Activities and Segregation        level of accuracy and in good faith, the Company can provide
of Duties, Accounting, Information and Communication Systems,            guarantees of protection. In relation to the implementation of the
Monitoring Activities and Correction Deficiencies. Based on the          WBS, the Board of Commissioners plays the role of evaluating if
results of the review carried out in 2023, the Board of Directors        violations are committed by the Directors, Board of Commissioners
and Board of Commissioners assess that the internal control              and Committees under the Board of Commissioners. The
system has been implemented adequately.                                  Independent WBS Manager will submit a report to the Board of
                                                                         Commissioners. Next, the Board of Commissioners will carry out
This Internal Control System Standards Guideline becomes a               validation and decide whether or not it is appropriate to carry
guideline that contains minimum measures regarding the Internal          out a special audit in which further/in-depth investigations will
Control System that must be maintained and implemented by the            be carried out by the Special Audit Team (IAD)/External Auditor
Bank in all aspects related to the organization and implementation       Team. If it is not appropriate to carry out a special audit, the
of the Bank’s operational activities to create a common                  handling will be adjusted to the Company’s provisions.
understanding and basis regarding the level of maintenance of
interests and commitment from all parties related to the Bank.



                                                                             PT Bank Tabungan Negara (Persero) Tbk                    67
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                 Report of The Board of Directors, Board of
                 Commissioners and Sharia Supervisory Board




The Company internalizes the WBS by distributing guidelines           Performance Assessment of Committees
for the Implementation of the Whistleblowing System Policy as         Under The Board of Commissioners
determined based on the Directors’ Circular as well as sharing
session presentations directly to all Company leaders and             The Board of Commissioners is assisted by 3 (three) committees,
employees. Apart from that, in order to reach all of the Company’s    namely the Audit Committee, Remuneration and Nomination
stakeholders, socialization of the Whistleblowing System is also      Committee, and Risk Monitoring Committee. The Board
carried out through the Company’s website and various media,          of Commissioners periodically assesses the effectiveness
such as internal bulletins, posters, standing banners, customer       of the performance of the Committees under the Board of
gatherings, direct presentations of ethical guidelines and WBS        Commissioners. The assessment in question is based on
policies.                                                             Regulation of the Minister of State-Owned Enterprises number
                                                                      PER-3/MBU/03/2023 dated 24 March 2023 concerning
The Board of Commissioners is of the view that the management         Organs and Human Resources of State-Owned Enterprises and
of the Whistleblowing System in the Company has been running          OJK Regulation no. 17 of 2023 concerning the Implementation
well. This can be seen from the management of complaint reports       of Governance for Commercial Banks. The Committee’s
and the follow-up to these complaints. There were 106 complaints      assessment criteria below are Key Performance Indicators which
received during 2023, consisting of 30 complaints via SMS/            have been determined for each Committee under the Board of
Telephone/Whatsapp, and 76 complaints via Email/Website.              Commissioners using a self-assessment method and approved
Based on the number of complaints received, 79 complaints             by the Board of Commissioners in accordance with Minister of
are not proven, 6 complaints are in the process of gathering          State-Owned Enterprises Regulation No. PER-12/MBU/2012
information/follow-up, and the remaining 21 complaints have           concerning Supporting Organs for the Board of Commissioners/
been processed and/or have been given sanctions.                      Supervisory Board of State-Owned Enterprises. The Board of
                                                                      Commissioners assesses that during 2023 the Committees have
Sustainabillity Governance                                            carried out their duties and responsibilities quite effectively.


By implementing the GCG paradigm as a whole, there will be
alignment of interests and goals between the Company and its          Changes in The Composition of The Board
stakeholders and will further encourage the creation of long-         of Commissioners
term corporate sustainability. The company is committed to
strengthening sustainable business in all company business lines.     During 2023, there were changes in the composition of members
The Company believes that business carried out by balancing the       of the Board of Commissioners. Changes in the composition of
3P aspects (Profit, People, Planet) will create sustainable values    members of the Board of Commissioners are carried out based on
and make bank BTN as a company that is able to maintain               the Company’s needs. Changes in the composition of members of
business sustainability into the future.                              the Board of Commissioners are as follows:


In accordance with the Company’s business field, Bank BTN is          COMPOSITION OF THE BOARD OF COMMISSIONERS FOR THE
committed to running its business by strengthening sustainable        PERIOD OF JANUARY 1, 2023 –JANUARY 11, 2023
business based on the housing ecosystem. Bank BTN is aware
that the Company’s involvement in the housing development             The composition of the Board of Commissioners for the period
environment will greatly determine the success of the program.        January 1, 2023 to January 11, 2023 comprised 8 (eight) people
Therefore, the Company makes every effort to support the              consisting of 1 (one) President/Independent Commissioner,
Government’s program in distributing housing finance to help          1 (one) Vice President/Independent Commissioner, 3 (three)
people own the best quality homes.                                    Independent Commissioners and 3 (three) Commissioners as
                                                                      follows:
The Company strengthens its sustainability foundation by instilling
policy commitments to create a sustainable and responsible            Chandra M. Hamzah     : President/Independent Commissioner
business. In supporting Sustainable Financial performance, the        Iqbal Latanro         : Vice President/Independent
Company issued a Sustainable Financial Action Plan which                                      Commissioner
refers to OJK Regulation No. 51/POJK.03/2017 concerning               Armand B. Arief       : Independent Commissioner
the Implementation of Sustainable Finance for Financial Services      Ahdi Jumhari Luddin   : Independent Commissioner
Institutions, Issuers and Public Companies. The Company               Sentot A. Sentausa    : Independent Commissioner
realizes the importance of developing a stable and inclusive          Andin Hadiyanto       : Commissioner
Sustainable Financial system. The Company’s aim in issuing            Herry Trisaputra Zuna : Commissioner
Sustainable Financial Action Plan is as a means of socializing        Himawan Arief Sugoto : Commissioner
and internalizing sustainability values to stakeholders, as well as
to support the achievement of the Company’s performance which
is oriented towards sustainable development goals.




68          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                           2023 Annual Report




COMPOSITION OF THE BOARD OF COMMISSIONERS FOR THE                    COMPOSITION OF THE BOARD OF COMMISSIONERS FOR THE
PERIOD JANUARY 11, 2023 –AUGUST 12, 2023                             PERIOD AUGUST 12, 2023 –DECEMBER 31, 2023


Based on the Decision of the 2023 Extraordinary General              On August 12, 2023, Ahdi Jumhari Luddin as Independent
Meeting of Shareholders (EGMS), Mohamad Yusuf Permana                Commissioner of the Company passed away, thereby it ended
was appointed as Commissioner of the Company. As a result,           his term of office automatically. As a result, the composition of
the composition of the Board of Commissioners for the period         the Board of Commissioners for the period August 12, 2023
January 11, 2023 to August 12, 2023 comprised 9 (nine) people        to December 31, 2023 comprised 8 (eight) people consisting
consisting of 1 (one) President/Independent Commissioner,            of 1 (one) President/Independent Commissioner, 1 (one) Vice
1 (one) Vice President/Independent Commissioner, 3 (three)           President/Independent Commissioner, 2 (two) Independent
Independent Commissioners and 4 (four) Commissioners as              Commissioners and 4 (four) Commissioners as follows:
follows:
                                                                     Chandra M. Hamzah     : President/Independent
Chandra M. Hamzah     : President/Independent                                                Commissioner
                        Commissioner                                 Iqbal Latanro         : Vice President/Independent
Iqbal Latanro         : Vice President/Independent                                           Commissioner
                        Commissioner                                 Armand B. Arief       : Independent Commissioner
Armand B. Arief       : Independent Commissioner                     Sentot A. Sentausa    : Independent Commissioner
Ahdi Jumhari Luddin   : Independent Commissioner                     Andin Hadiyanto       : Commissioner
Sentot A. Sentausa    : Independent Commissioner                     Herry Trisaputra Zuna : Commissioner
Andin Hadiyanto       : Commissioner                                 Himawan Arief Sugoto  : Commissioner
Herry Trisaputra Zuna : Commissioner                                 Mohamad Yusuf Permana : Commissioner
Himawan Arief Sugoto  : Commissioner
Mohamad Yusuf Permana : Commissioner




Closing

To shareholders, the Board of Commissioners would like to thank for the trust given. The Board of Commissioners expresses its highest
appreciation to the Directors who have been able to carry out the management of the Company and produce good performance in
2023. The Board of Commissioners also expresses the highest appreciation to all of the Company’s employees who have provided
optimal contributions. The Board of Commissioners truly hopes that in the future all levels of the Company can continue to formulate
appropriate strategies and be able to lead the Company towards better growth.




                                                     Jakarta, February 2024
                                              On behalf of the Board of Commissioners




                                                     Chandra M. Hamzah
                                                President/Independent Commissioner




                                                                         PT Bank Tabungan Negara (Persero) Tbk                   69
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              Report of The Board of Directors, Board of
              Commissioners and Sharia Supervisory Board




     BOARD OF COMMISSIONERS
     1. Himawan Arief Sugoto: Commissioner, 2. Sentot A. Sentausa: Independent Commissioner,
     3. Mohamad Yusuf Permana: Commissioner, 4. Chandra M. Hamzah: President/Independent Commissioner




                1                                2                          3                           4




70         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                        2023 Annual Report




5. Iqbal Latanro: Vice President/Independent Commissioner, 6. Armand B. Arief: Independent Commissioner,
8. Andin Hadiyanto: Commissioner, 7. Herry Trisaputra Zuna: Commissioner,




                 5                            6                               7                              8




                                                                       PT Bank Tabungan Negara (Persero) Tbk     71
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           Report of The Board of Directors, Board of
           Commissioners and Sharia Supervisory Board




SHARIA SUPERVISORY BOARD’S
REPORT



                                                              Prof. Dr.
                                                          H. Muhammad
                                                        Quraish Shihab, M.A.
                                                           Chairman of the Sharia
                                                             Supervisory Board




Please allow us to represent the Sharia Supervisory Board to submit a report on the
implementation of supervision of the Company’s activities during 2023.




72      PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




Assalamu’alaikum warahmatullahi wabarakatuh
Dear Stakeholders and Shareholders,


To ensure that Sharia Financial Institutions can be implemented          9. Supervising Sharia Business Unit activities.
complying sharia principles, in carrying out its activities, the             a. Analyzing reports submitted by and/or requested from
Company is supervised by the Sharia Supervisory Board tasked                    the Board of Directors, implementation of the internal
to provide advice and suggestions to the Board of Directors and                 audit function and/or compliance function to determine
supervising its business activities so that they are in accordance              the quality of implementation of compliance with sharia
with Sharia principles (Article 1 number 12 PBI No. 11/10/                      principles for fund collection and distribution activities
PBI/2009 concerning Sharia Business Units).                                     and Bank services.
                                                                             b. Determining the number of sample tests of transactions
                                                                                that will be examined by paying attention to the quality
Duties and Responsibilities of The Sharia                                       of implementation of compliance with sharia principles
Supervisory Board                                                               for each activity.
                                                                             c. Examining transaction documents that are sample tested
SSB has the duties and responsibilities of providing advice                     to determine compliance with sharia principles as
and suggestions to the Sharia Business Unit Director as well as                 required in internal policies, including:
supervising Sharia Business Unit activities so that they comply                 -    Availability of documents as proof of purchase of
with sharia principles. Implementation of SSB duties and                             goods, for murabahah contracts as proof of fulfillment
responsibilities includes:                                                           of murabahah sale and purchase conditions.
1. Assessing and ensuring compliance with sharia principles for                 -    Availability of customer business report documents,
    operational guidelines and sharia-related products issued by                     for mudharabah/musyarakah contracts, as a basis
    the Bank.                                                                        for calculating profit sharing distribution.
2. Supervising the Bank’s new product development process                    d. Carrying out inspections, inspections, requests for
    related to Sharia so that it complies with the DSN-MUI fatwa.               information and/or confirmation from Sharia Business
3. Providing sharia opinions on new products and/or                             Unit employees and/or customers to strengthen the
    restructured financing related to sharia by referring to the                results of document checks, if necessary.
    DSN-MUI fatwa and provisions governing the implementation                e. Conducting a review of internal policies related to sharia
    of sharia principles and Sharia Business Unit activities.                   aspects if there are indications of non-compliance with
4. Requesting a fatwa from DSN-MUI for new sharia-related                       the implementation of compliance with sharia principles
    bank products for which there is no fatwa yet.                              for the activities in question.
5. Conducting regular reviews of compliance with sharia                      f. Providing sharia opinions on fund collection and
    principles regarding mechanisms for collecting funds and                    distribution activities as well as UUS services.
    channeling funds as well as Bank services.                               g. Reporting the results of SSB supervision to FSA using the
6. Requesting data and information related to sharia aspects                    specified format no later than 2 (two) months after the
    from Bank work units that carry out and/or relate to sharia                 semester period ends.
    activities in the context of carrying out their duties.                  h. Providing sufficient time to carry out duties and
7. SSB is obliged to carry out its duties and responsibilities in               responsibilities optimally.
    accordance with the principles of good governance (GCG).             10. Bank Risk Management:
8. Supervising the development of the Bank’s new sharia-related              a. Conducting an evaluation (review) of UUS risk
    products:                                                                   management policies related to compliance with sharia
    a. Requesting an explanation from the Board of Directors                    principles at least once a year.
         and/or authorized Bank officials regarding the                      b. Evaluating the responsibility of the Board of Directors
         objectives, characteristics and will be used in the new                for the implementation of risk management policies
         sharia-related products that will be issued.                           related to compliance with sharia principles at least on a
    b. Ensuring the availability of those used in new sharia-                   quarterly basis.
         related products in the DSN-MUI fatwa:
         1) In the event that there is a fatwa, SSB will conduct a
              review of the suitability of the new product agreement     Implementation of Sharia Supervisory
              with the DSN-MUI fatwa.                                    Board Activities In 2023
         2) In the event that there is no fatwa, SSB proposes to
              the Bank’s Board of Directors to complete the new          In 2023, the Sharia Supervisory Board has carried out the
              sharia-related product agreement with a fatwa from         following activities:
              DSN-MUI.                                                   1. Implementation of Meetings
    a. Reviewing systems and procedures for new products that                 The SSB meeting is a deliberation forum between the SSB to
         will be released in relation to fulfilling sharia principles.        discuss every strategic and operational policy and decision
    b. Providing sharia opinion on new products to be issued by the           in order to carry out supervisory functions and provide advice
         Bank.                                                                to the Board of Directors and Management of the Sharia
    c. Evaluating the fulfillment of sharia principles on policies            Business Unit in the sharia sector so that it is in accordance
         and procedures to manage the risks inherent in the                   with sharia principles. Throughout 2023, SSB has held 13
         Bank’s new products and/or activities.                               (thirteen) SSB meetings.



                                                                             PT Bank Tabungan Negara (Persero) Tbk                     73
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                Report of The Board of Directors, Board of
                Commissioners and Sharia Supervisory Board




2. Frequency and Method of Providing Advice and Suggestions             COMPOSITION OF THE SHARIA SUPERVISORY BOARD FOR THE
   and Supervising Compliance with Sharia Principles in the             PERIOD OF MARCH 16, 2023 –OCTOBER 18, 2023
   Capital Market for Issuers or Public Companies
   Throughout 2023, SSB has issued 32 (thirty two) Sharia               On March 16, 2023, the General Meeting of Shareholders
   Supervisory Board Opinions. This SSB opinion was issued in           approved the dismissal of Prof. Dr. H Muhammad Quraish
   response to the development of Bank BTN’s Sharia Business            Shihab from the General Chairman of SSB and Dr. H. Mohamad
   Unit so that it continues to run in accordance with Sharia           Hidayat, MBA, MH from SSB members. Then, the GMS approved
   Principles.                                                          and ratified the re-appointment of Muhammad Quraish Shihab
3. SSB Monitoring Results and Recommendations Report                    as Chairman of the Company’s Sharia Supervisory Board for
   In the 2022 period, SSB has reported on the Sharia                   the second period. As a result, the composition of the Sharia
   Supervisory Board Supervision Report for Semester II 2022            Supervisory Board for the period March 16, 2023 to October
   and Semester I 2023 in a timely manner.                              18, 2023 comprised 2 (two) people consisting of 1 (one)
                                                                        Chairman of the Sharia Supervisory Board and 1 (one) member
                                                                        of the Sharia Supervisory Board as follows:
Changes in The Composition of The Sharia
Supervisory Board
                                                                        Prof. Dr. H. Muhammad Quraish : Chairman
During 2023, there were changes in the composition of members           Shihab, MA
of the Sharia Supervisory Board. Changes in the composition of          Mohamad Bagus Teguh Perwira, : Member
members of the Sharia Supervisory Board are carried out based           Lc, MA
on the Company’s needs.

                                                                        COMPOSITION OF THE SHARIA SUPERVISORY BOARD FOR THE
COMPOSITION OF THE SHARIA SUPERVISORY BOARD FOR THE
                                                                        PERIOD OCTOBER 18, 2023 –DECEMBER 31, 2023
PERIOD OF JANUARY 1, 2023 –MARCH 16, 2023

                                                                        On October 18, 2023, Muhammad Faiz, Lc, MA was appointed
The composition of the Sharia Supervisory Board for the period
                                                                        as Member of the Sharia Supervisory Board. As a result, the
January 1, 2023 to November 29, 2023 comprised 3 (three)
                                                                        composition of the Sharia Supervisory Board for the period
people consisting of 1 (one) Chairman of the Sharia Supervisory
                                                                        October 18, 2023 to December 31, 2023 comprised 3 (three)
Board and 2 (two) members of the Sharia Supervisory Board as
                                                                        people consisting of 1 (one) Chairman of the Sharia Supervisory
follows:
                                                                        Board and 2 (two) members of the Sharia Supervisory Board as
                                                                        follows:

Prof. Dr. H. Muhammad Quraish           : Chairman
Shihab, MA                                                              Prof. Dr. H. Muhammad Quraish Shihab, MA         :   Chairman
Dr. H. Mohamad Hidayat, MBA, MH         : Member                        Mohamad Bagus Teguh Perwira, Lc, MA              :   Member
Mohamad Bagus Teguh Perwira, Lc,        : Member                        Muhammad Faiz, Lc, MA                            :   Member
MA




Closing
This is the Report of the Sharia Supervisory Board for 2023. In the future, the Sharia Supervisory Board will remain committed to ensuring
compliance with sharia principles and compliance with laws and regulations by constantly reminding the Company’s management.
Hence, the Company can achieve better performance.

Wassalamualaikum Warahmatullahi Wabarakatuh,




                                                        Jakarta, Februari 2024
                                               On behalf of the Sharia Supervisory Board




                                        Prof. Dr. H. Muhammad Quraish Shihab, MA
                                               Chairman of the Sharia Supervisory Board




74          PT Bank Tabungan Negara (Persero) Tbk
Page 77
                                                                              2023 Annual Report




SHARIA SUPERVISORY BOARD
1. Mohammad Bagus Teguh Perwira, Lc, MA: Member, 2. Prof. Dr. H. Muhammad Quraish Shihab, MA: Chairman,
3. Muhammad Faiz, Lc, MA: Member




            1                                         2                                            3




                                                              PT Bank Tabungan Negara (Persero) Tbk       75
Page 78
Accountability
of Annual Report

Letter of Statement of the Members of Board of Directors
on 2023 Annual Accountability Report
of PT Bank Tabungan Negara (Persero) Tbk



We, the undersigned below, declare that all information in the 2023 Annual Report of PT Bank Tabungan Negara (Persero) Tbk has been
completely disclosed and we are fully accountable for the truthfulness of its content. We also declare that the Company Risk Management
and Internal Control System is adequate. This statement is made truthfully.



                                                        Jakarta, February 13, 2024




                                Nixon L. P. Napitupulu                          Oni Febriarto Rahardjo
                                       President Director                          Vice President Director




          Nofry Rony Poetra                                      Eko Waluyo                                  Setiyo Wibowo
             Director of Finance                            Director of Human Capital,                 Director of Risk Management
                                                               Compliance, & Legal




             Andi Nirwoto                              Elisabeth Novie Riswanti                                    Jasmin
           Director of IT & Digital                    Director of Assets Management                 Director of Distribution & Funding




                                      Hirwandi Gafar                                Hakim Putratama
                                      Director of Consumer                     Director of Institutional Banking




76          PT Bank Tabungan Negara (Persero) Tbk
Page 79
                                                                                             2023 Annual Report




Letter of Statement of the Members of Board of Commissioners
on 2023 Annual Accountability Report
of PT Bank Tabungan Negara (Persero) Tbk



We, the undersigned below, declare that all information in the 2023 Annual Report of PT Bank Tabungan Negara (Persero) Tbk has been
completely disclosed and we are fully accountable for the truthfulness of its content. We also declare that the Company Risk Management
and Internal Control System is adequate. This statement is made truthfully.



                                                     Jakarta, February 13, 2024




                               Chandra M. Hamzah                                  Iqbal Latanro
                          President/Independent Commissioner        Vice President/Independent Commissioner




            Armand B. Arief                            Sentot A. Sentausa                            Andin Hadiyanto
        Independent Commissioner                     Independent Commissioner                            Commissioner




        Herry Trisaputra Zuna                        Himawan Arief Sugoto                       Mohamad Yusuf Permana
               Commissioner                                 Commissioner                                 Commissioner




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   77
Page 80
COMPANY
PROFILE



78   PT Bank Tabungan Negara (Persero) Tbk
Page 81
PT Bank Tabungan Negara (Persero) Tbk (“Company”) began
with the establishment of Postspaarbank in 1897. Currently,
the Company has 631 Conventional Office networks and 109
Sharia Office networks.




                     PT Bank Tabungan Negara (Persero) Tbk   79
Page 82
                Company
                Profile




Company
Identity




                      Company Name                                Common Name

      PT Bank Tabungan Negara (Persero) Tbk             Bank BTN (Perseroan)



                            Stock Code                            Date of Establishment

                                              BBTN      February 9, 1950



              Stock Exchange Listing                              Line of Business

                                                        Commercial Bank, including conducting
     December 17, 2009 on Indonesia Stock Exchange
                                                        sharia banking activities



                      Company Status                              Employee Base

      Limited Liability Company (PT)/Public Company/    12.045 persons
                        State-Owned Enterprise (BUMN)   As of December 31, 2023




80   PT Bank Tabungan Negara (Persero) Tbk
Page 83
                                                                                         2023 Annual Report




              Legal Basis for Establishment                                   Authorized Capital

• Emergency Law No. 9 of 1950 dated February 9, 1950 on             IDR10,239,216,000,000
  Amendment to Postspaarbank Law (Staatbald 1934 No. 653,
  1937 No. 176 and 197 and 1941 No. 295) (State Gazette of
  the Republic of Indonesia No. 12 of 1950).
• Government Regulation as Substitution of Law No. 4 of 1963
                                                                              Issued and Paid-up Capital
  dated June 22, 1963 on Amendment to and Supplement of Law
  No. 36 of 1953 on Bank Tabungan Negara (State Gazette No.         IDR7,017,222,206,500
  86 of 1953).
• Government Regulation No. 24 of 1992 dated April 29, 1992
  on Adjustments to Bank Tabungan Negara’s Legal Form into a
                                                                              Business Network Data
  Limited Liability Company (Persero).
• The Bank’s Deed of Establishment as a Limited Liability Company
  No. 136 dated July 31, 1992 which was made before Muhani          • Conventional Banking Network: 6 Regional Offices, 81
  Salim, S.H., a Notary based in Jakarta.                             Branch Offices, 541 Sub-branch Offices, and 3 Functional
                                                                      Office.
                                                                    • Sharia Banking Network: 34 Sharia Branch Offices, and
                         Head Office Address                          75 Sharia Sub-branch Offices.

                                         Menara Bank BTN
             Jl. Gajah Mada No. 1 Jakarta 10130, Indonesia
                                                (021) 6336789
                                                                              Ownership
                                                (021) 6346704
                                                  csd@btn.co.id
                                                  www.btn.co.id
                                        Call Center : 1500-286
                                                                    9.65%


                               Contact Address
                                                                                                                        60.00%
                                           Corporate Secretary      30.35%
                                              Ramon Armando
                                                Menara BTN
                   Jl. Gajah Mada No.1, Jakarta Pusat 10130
                                     (021) 6336789 ext. 2003
                                              (021) 6336719
                                                                    Description
                                     ramon.armando@btn.co.id
                                         Investor Relations             Government of the Republic of Indonesia
                     PT Bank Tabungan Negara (Persero) Tbk
                                                                        Domestic Publik
                                    Menara BTN Lantai 16
               Jalan Gajah Mada No. 1 Jakarta Pusat 10130               Foreign Public
                                            +62 21 63870107
                                    investor_relations@btn.co.id

                                  Public Information Services                 Social Media
                      PT Bank Tabungan Negara (Persero) Tbk
                                               ppid.btn.co.id        Bank BTN                @bankbtn
                                                                      @bankbtn               Bank BTN




                                                                     PT Bank Tabungan Negara (Persero) Tbk                 81
Page 84
                         Company
                         Profile




Names and Addresses of Regional Offices,
Conventional Branch Offices
and Sharia Branch Offices


                                                             Regional Offices
REGIONAL OFFICES 1                                                               REGIONAL OFFICES 2
Kantor Wilayah Jawa Barat                                                        Kantor Wilayah DKI Jakarta dan Banten
Jl. Jend. Sudirman No. 19, Bekasi 17143                                          Gedung Yodya Tower Lt. 3
Telp : (021) 88953281                                                            Jl. Mayjen DI Panjaitan Kav 8, RT 003 RW 011,
Email : kantorwilayah1@btn.co.id                                                 Kel. Cipinang Cempedak Kec. Jatinegara, Jakarta Timur
Web : www.btn.co.id                                                              Telp : (021) 2301184, 31901656, 3905775
                                                                                 Email : kantorwilayah2@btn.co.id
                                                                                 Web : www.btn.co.id

REGIONAL OFFICES 3                                                               REGIONAL OFFICES 4
Kantor Wilayah Jawa Timur, Bali, Nusa Tenggara                                   Kantor Wilayah Sumatera
Gedung Graha Sudirman                                                            Gedung Graha Merah Putih Lt. 8,
Jl. Panglima Sudirman No. 7-9, Kel. Gembong Asin, Kec. Genteng, Kota.            Jl. Puteri Hijau No. 1, Kesawan, Medan 20111
Surabaya - Jawa Timur                                                            Telp: (061) 80011133
Telp : (031) 5661704, 5661204                                                    Email: kantorwilayah4@btn.co.id
Email : kantorwilayah3@btn.co.id                                                 Web: www.btn.co.id
Web : www.btn.co.id

REGIONAL OFFICES 5                                                               REGIONAL OFFICES 6
Kantor Wilayah Kalimantan, Sulawesi, Maluku, Papua                               Kantor Wilayah Jawa Tengah dan DIY
Jl. Sultan Hassanudin No. 1, Makassar                                            Jl. M.T. Haryono No. 717, Semarang 50242
Telp : (0411) 5070760                                                            Telp : (024) 8455932, 8455934
Email : kantorwilayah5@btn.co.id                                                 Email : kantorwilayah6@btn.co.id
Web : www.btn.co.id                                                              Web : www.btn.co.id




                                                 Operational Functional Offices
                                               Conventional Branch Offices Region 1 (West Java Region)

Bandung Branch Office                              East Bandung Branch Office                         Bogor Branch Office
Jl. Jawa No. 7, Bandung 40117                      Jl. Raya Cinunuk No. 223 A                         Jl. Pengadilan No. 13-15
Telp : (022) 4232112, 4241036                      Kec. Cileunyi, Kab. Bandung                        Bogor 16121
Email : kc.bandung@btn.co.id                       Telp : (022) 7816883                               Telp : (0251) 8311700
Web : www.btn.co.id                                Email : kc.bandungtimur@btn.co.id                  Email : kc.bogor@btn.co.id
                                                   Web : www.btn.co.id                                Web : www.btn.co.id

Cibinong Branch Office                             Bekasi Branch Office                               Cibubur Branch Office
Ruko Cibinong City Centre Blok B20-21 &            Jl. Jend. Sudirman No. 19, Bekasi 17143            Gedung A (Utama)
D20-21 Jl. Tegar Beriman Kel. Pakansari Kec.       Telp : (021) 8840649                               Jl. Transyogi Km. 3, Ruko Madison Blok C1 No.
Cibinong - Kab. Bogor                              Email : kc.bekasi@btn.co.id                        1-3, Komplek Cibubur Times Square, Jatikarya,
Telp : (021) 83721442                              Web : www.btn.co.id                                Jatisampurna, Kota. Bekasi - Jawa Barat 17435
Email : kc.cibinong@btn.co.id                                                                         Telp : (021) 84300071, 84300073
Web : www.btn.co.id                                                                                   Email : kc.cibubur@btn.co.id
                                                                                                      Web : www.btn.co.id

Harapan Indah Bekasi Branch Office                 Cikarang Branch Office                             Depok Branch Office
Ruko Office Park Harapan Indah                     Pertokoan Cikarang Central City Blok B No 2,       Jl. Margonda Raya No. 186,
Blok OP Kavling No. OP1-01 & OP1-02                3, 5, 6, Jl. Raya Cikarang - Cibarusah, 17530      Depok 16423
Harapan Indah, Bekasi 17132                        Kab. Bekasi                                        Telp : (021) 7751236, 7751237
Telp  : (021) 88386971(hunting),                   Telp : (021) 22180090/ 22180096                    Email : kc.depok@btn.co.id
        88386972, 88386973                         Email : kc.cikarang@btn.co.id                      Web : www.btn.co.id
Email : kc.harapanindah@btn.co.id                  Web : www.btn.co.id
Web : www.btn.co.id




82          PT Bank Tabungan Negara (Persero) Tbk
Page 85
                                                                                                          2023 Annual Report




                                                   Operational Functional Offices
                                                Conventional Branch Offices Region 1 (West Java Region)

Cirebon Branch Office                                Karawang Branch Office                            Purwakarta Branch Office
Jl. Siliwangi No. 20A-20B, Cirebon 45121             Jl. Galuh Mas Raya Blok VI-A No. 6, Desa.         Jl. RE. Martadinata No. 1, Purwakarta 41114
Telp : (0231) 209143, 209153                         Sukaharja, Kec. Teluk Jambe, Timur, Kab.          Telp  : (0264) 201024, 210830, 210831,
Email : kc.cirebon@btn.co.id                         Karawang - Jawa Barat                                     206637
Web : www.btn.co.id                                  Telp : (0267) 8411400, 8411500                    Email : kc.purwakarta@btn.co.id
                                                     Email : kc.karawang@btn.co.id                     Web : www.btn.co.id
                                                     Web : www.btn.co.id

Tasikmalaya Branch Office                            Sukabumi Branch Office                            Cimahi Branch Office
Jl. Sutisna Senjaya No. 101,                         Jl. Jendral Sudirman No. 49,                      Jl. Jend. Amir Machmud/Raya Timur No. 475,
Tasikmalaya 46112                                    Kel. Sriwedari, Kec. Gunung Puyuh,                Cimahi 40524
Telp : (0265) 334464, 334465                         Sukabumi - Jawa Barat                             Telp : (022) 6651644, 6651645
Email : kc.tasikmalaya@btn.co.id                     Telp : (0266) 223446,235951                       Email : kc.cimahi@btn.co.id
Web : www.btn.co.id                                  Email : kc.sukabumi@btn.co.id                     Web : www.btn.co.id
                                                     Web : www.btn.co.id



                                          Conventional Branch Offices Region 2 (DKI Jakarta and Banten Region)

Jakarta Kuningan Branch Office                       Jakarta Harmoni Branch Office                     Kelapa Gading Square Branch Office
Plaza BP Jamsostek, Jl. HR Rasuna Said               Menara BTN                                        Gedung Emerald Tower
Kav. 112 – 114 Blok B, Kel. Karet, Kec.              Jl. Gajah Mada No. 1, Jakarta Pusat 10130         Jl. Boulevard Barat Blok XB No. 3,
Setiabudi, Jakarta Selatan                           Telp : (021) 6336789, 6332666, 2310490            Kelapa Gading - Jakarta Utara 14240
Telp : (021) 52964652                                Email : kc.jakartaharmoni@btn.co.id               Telp : (021) 45866883, 45866884
Email : kc.jakartakuningan@btn.co.id                 Web : www.btn.co.id                               Email : kc.kelapagadingsquare@btn.co.id
Web : www.btn.co.id                                                                                    Web : www.btn.co.id

Jakarta Kebon Jeruk Branch Office                    Jakarta Cawang Branch Office                      Tangerang Branch Office
Jl. Anggrek No. 01, Kel. Kelapa Dua                  Gedung Yodya Tower Lt. 1-3, Jl. Mayjen DI         Jl. Perintis Kemerdekaan No. 01, Tangerang
Kec. Kebon Jeruk Kebon Jeruk                         Panjaitan Kav 8, RT 003, RW 011,                  15118
Jakarta Barat 11550                                  Kel. Cipinang Cempedak, Kec. Jatinegara,          Telp : (021) 5539363
Telp : (021) 53666345                                Jakarta Timur 13340                               Email : kc.tangerang@btn.co.id
Email : kc.jakartakebonjeruk@btn.co.id               Telp : (021) 22986826, 22986827                   Web : www.btn.co.id
Web : www.btn.co.id                                  Email : kc.jakartacawang@btn.co.id
                                                     Web : www.btn.co.id

Ciputat Branch Office                                Jakarta Melawai Branch Office                     Bumi Serpong Damai Branch Office
Jl. Dewi Sartika No. 21, Ciputat Tangerang           Jl. Melawai Raya No. 19 C-D,                      Kompleks BSD, Ruko Sektor VII E
Selatan 15411                                        Kel. Melawai, Kec. Kebayoran Baru,                Blok K No. 8 Jl. Raya Serpong, Tangerang
Telp : (021) 7445145                                 Jakarta Selatan                                   15310
Email : kc.ciputat@btn.co.id                         Telp : (021) 27517843, 27517840                   Telp : (021) 5372235, 5372237
Web : www.btn.co.id                                  Email : kc.jakartamelawai@btn.co.id               Email : kc.bumiserpongdamai@btn.co.id
                                                     Web : www.btn.co.id                               Web : www.btn.co.id

Karawaci Branch Office                               Cilegon Branch Office                             Jakarta Pluit Branch Office
Perumnas Karawaci I                                  Jl. Sultan Ageng Tirtayasa No. 49,                Jl. Pluit Kencana Raya No. 79, Pluit,
Jl. Cendrawasih No. 1,                               Cilegon 42414                                     Penjaringan, Jakarta Utara 14440
Tangerang 15115
                                                     Telp : (0254) 391766, 392681, 393479              Telp  : (021) 66607390, 66607391,
Telp : (021) 5517849, 5517850                        Email : kc.cilegon@btn.co.id                              66607392
Email : kc.karawaci@btn.co.id                        Web : www.btn.co.id                               Email : kc.jakartapluit@btn.co.id
Web : www.btn.co.id                                                                                    Web : www.btn.co.id

Bintaro Jaya Branch Office
CBD Bintaro Blok B7 No. A3 - 04A,
Kel. Pondok Jaya, Kec. Pondok Aren,
Tangerang Selatan
Telp : (021) 22215981
Email : kc.bintarojaya@btn.co.id
Web : www.btn.co.id




                                                                                    PT Bank Tabungan Negara (Persero) Tbk                         83
Page 86
                           Company
                           Profile




                                     Conventional Branch Offices Region 3 (East Java, Bali, Nusa Tenggara Region)

Surabaya Branch Office                              Denpasar Branch Office                              Sidoarjo Branch Office
Jl. Pemuda No. 50, Surabaya 60271                   Jl. Dewi Sartika No. 2, Denpasar 80114              Jl. Ahmad Yani No. 15, Sidoarjo 61212
Telp : (031) 5353513, 5353519                       Telp : (0361) 243811                                Telp  : (031) 8929211, 8957949,
Email : kc.surabaya@btn.co.id                       Email : kc.denpasar@btn.co.id                               8957950
Web : www.btn.co.id                                 Web : www.btn.co.id                                 Email : kc.sidoarjo@btn.co.id
                                                                                                        Web : www.btn.co.id

Malang Branch Office                                Mataram Branch Office                               Surabaya Bukit Darmo Branch Office
Jl. Ade Irma Suryani No. 2-4, Malang 65119          Jl. Pejanggik No. 99-101, Cakranegara               Jl. Mayjend HR Muhammad Kav. 399 Kel.
Telp : (0341) 323956                                Mataram 83121                                       Putat Gede, Kec. Sukomanunggal
Email : kc.malang@btn.co.id                         Telp : (0370) 631186, 638289                        Telp : (031) 7323344
Web : www.btn.co.id                                 Email : kc.mataram@btn.co.id                        E-mail : kc.surabayabukitdarmo@btn.co.id
                                                    Web : www.btn.co.id                                 Web : www.btn.co.id

Bangkalan Branch Office                             Kupang Branch Office                                Madiun Branch Office
Jl. Teuku Umar No. 16,                              Jl. Jend. Sudirman No. 87,                          Jl. Dr. Sutomo No. 38, Madiun 63117
Kel. Kemayoran, Kec. Bangkalan 69116                Kupang 85119                                        Telp  : (0351) 451460, 459034, 457927,
Telp  : (031) 3098929, 3098831,                     Telp : (0380) 831004                                        459500, 459600
        3098930                                     Email : kc.kupang@btn.co.id                         Email : kc.madiun@btn.co.id
Email : kc.bangkalan@btn.co.id                      Web : www.btn.co.id                                 Web : www.btn.co.id
Web : www.btn.co.id

Mulyosari Branch Office                             Kediri Branch Office                                Jember Branch Office
Jl. Raya Mulyosari No. 82,                          Jl. Diponegoro No. 22 - 24,                         Jl. A. Yani No. 05,
Kel. Dukuh Sutorejo, Kec. Mulyorejo,                Kediri 64121                                        Jember 68118
Kota. Surabaya 60112                                Telp : (0354) 691260, 691262                        Telp : (0331) 484611, 489292, 489266
Telp : (031) 5931763                                Email : kc.kediri@btn.co.id                         Email : kc.jember@btn.co.id
Email : kc.mulyosari@btn.co.id                      Web : www.btn.co.id                                 Web : www.btn.co.id
Web : www.btn.co.id

Banyuwangi Branch Office                            Gresik Branch Office                                Mojokerto Branch Office
Jl. Brawijaya No. B-1 dan B-2, Kel. Sobo,           Kompleks Pertokoan Multi Sarana                     Jl. Majapahit No. 130 - 134, Blok1-2
Kec. Banyuwangi, Kab. Banyuwangi 68418              Plaza Blok C 01 No. 1                               Mojokerto 61323
Telp : (0333) 414490, 415690                        Jl. Gubernur Suryo, Gresik 61118                    Telp : (0321) 323850, 323853
Email : kc.banyuwangi@btn.co.id                     Telp : (031) 3973455                                Email : kc.mojokerto@btn.co.id
Web : www.btn.co.id                                 Email : kc.gresik@btn.co.id                         Web : www.btn.co.id
                                                    Web : www.btn.co.id



                                                Conventional Branch Offices Region 4 (Sumatra Region)

Medan Branch Office                                Palembang Branch Office                              Padang Branch Office
Jl. Pemuda No. 10A, Medan 20151                    Jl. Jend. Sudirman Km. 4, 5 No. 125,                 Jl. H. R. Rasuna Said No. 3, Jati Baru
Telp : (061) 4149777                               Palembang 30128                                      Padang Tim, Kota Padang 25129
Email : kc.medan@btn.co.id                         Telp : (0711) 411175, 410552                         Telp : (0751) 31903, 32094, 32096
Web : www.btn.co.id                                Email : kc.palembang@btn.co.id                       Email : kc.padang@btn.co.id
                                                   Web : www.btn.co.id                                  Web : www.btn.co.id

Batam Branch Office                                Pekanbaru Branch Office                              Jambi Branch Office
Jl. Engku Putri No.1, Kel. Belian                  Jl. Jend. Sudirman No. 393,                          Jl. H. M. Yusuf Singadikane No. 146,
Nongsa Batam Center                                Pekanbaru 28116                                      Jambi 36122
Telp : (0778) 470630, 470625, 470628               Telp : (0761) 40494, 40185, 40188                    Telp : (0741) 61793, 61792
Email : kc.batam@btn.co.id                         Email : kc.pekanbaru@btn.co.id                       Email : kc.jambi@btn.co.id
Web : www.btn.co.id                                Web : www.btn.co.id                                  Web : www.btn.co.id

Pematang Siantar Branch Office                     Bandar Lampung Branch Office                         Bengkulu Branch Office
Jl. Sutomo No. 5 G-H, Kel. Proklamasi              Jl. Wolter Monginsidi No. 80-88,                     Jl. Soeprapto No. 7 - 8,
Kec. Pematang Siantar Barat - Pematang             Bandar Lampung 35215                                 Bengkulu 38223
Siantar                                            Telp  : (0721) 489253, 489255, 484778,               Telp : (0736) 20875
Telp : (0622) 28887                                        483256                                       Email : kc.bengkulu@btn.co.id
Email : kc.pematangsiantar@btn.co.id               Email : kc.bandarlampung@btn.co.id                   Web : www.btn.co.id
Web : www.btn.co.id                                Web : www.btn.co.id

Tanjung Pinang Branch Office                       Pangkal Pinang Branch Office
Jl. D.I. Panjaitan Km. 9 Komplek Plaza Bintan      Jl. Perniagaan, Mall Bangka Trade
Center Blok Bunga No. 9-12, Tanjung Pinang         Center B11 - B14 - Pangkal Pinang
Telp : (0771) 7447101, 7447088                     Telp : (0717) 423748
Email : kc.tanjungpinang@btn.co.id                 Email : kc.pangkalpinang@btn.co.id
Web : www.btn.co.id                                Web : www.btn.co.id




84           PT Bank Tabungan Negara (Persero) Tbk
Page 87
                                                                                                        2023 Annual Report




                                 Conventional Branch Offices Region 5 (Kalimantan, Sulawesi, Maluku, Papua Region)

Makassar Branch Office                               Banjarmasin Branch Office                         Samarinda Branch Office
Jl. Kajaolalido No. 4, Makassar 90111                Jl. R. E. Martadinata No. 4,                      Jl. RE. Martadinata No. 01,
Telp : (0411) 316016, 316011                         Banjarmasin 70111                                 Samarinda 75127
Email : kc.makassar@btn.co.id                        Telp  : (0511) 4368133, 4366669,                  Telp : (0541) 736930, 731695, 731510
Web : www.btn.co.id                                          4366670                                   Email : kc.samarinda@btn.co.id
                                                     Email : kc.banjarmasin@btn.co.id                  Web : www.btn.co.id
                                                     Web : www.btn.co.id

Pontianak Branch Office                              Balikpapan Branch Office                          Parepare Branch Office
Jl. Imam Bonjol No. 29, Pontianak 78122              Jl. Jend. Sudirman No. 141, Balikpapan            Jl. Andi Makkasau No 115-117, Lakessi,
Telp : (0561) 740163                                 Telp : (0542) 420333                              Kec. Soreang, Kota.
Email : kc.pontianak@btn.co.id                       Email : kc.balikpapan@btn.co.id                   Parepare, Sulawesi Selatan 91131
Web : www.btn.co.id                                  Web : www.btn.co.id                               Telp : (0421) 28115
                                                                                                       Email : kc_parepare@btn.co.id
                                                                                                       Web : www.btn.co.id

Banjarbaru Branch Office                             Manado Branch Office                              Jayapura Branch Office
Jl. Ahmad Yani Km 33 RT 01 RW 01                     Jl. Wolter Monginsidi No. 56,                     Jl. Koti No. 22, Jayapura 99111
Loktabak Utara, Banjarbaru,                          Manado 95115                                      Telp : (0967) 537970, 537971, 537973
Kalimantan Selatan 71114                             Telp : (0431) 868095, 855504, 855505              Email : kc.jayapura@btn.co.id
Telp : (0511) 6749738, 6749831                       Email : kc.manado@btn.co.id                       Web : www.btn.co.id
Email : kc.banjarbaru@btn.co.id                      Web : www.btn.co.id
Web : www.btn.co.id

Kendari Branch Office                                Ambon Branch Office                               Tarakan Branch Office
Jl. A. Yani , Komplek A. Yani Square                 Jl. Diponegoro No. 75B, Ambon                     Jl. Mulawarman No. 10 RT. 73 Kel. Karang
Blok. A6-7 Kendari 93117                             Telp  : (0911) 355882, 354471, 348552,            Anyar, Kec. Tarakan Barat, Kota Tarakan
Telp : (0401) 322101                                         355882                                    Telp : (0551) 24322
Email : kc.kendari@btn.co.id                         Email : kc.ambon@btn.co.id                        Email : kc.tarakan@btn.co.id
Web : www.btn.co.id                                  Web : www.btn.co.id                               Web : www.btn.co.id

Palu Branch Office                                   Palangkaraya Branch Office                        Gorontalo Branch Office
Jl. Jend. Sudirman No. 2, Palu 94111                 Jl. Diponegoro No. 23,                            Jl. Nani Wartabone No. 3, Kel. Limba U I,
Telp : (0451) 424555, 428555                         Palangkaraya 73111                                Kec. Kota Selatan, Kota. Gorontalo
Email : kc.palu@btn.co.id                            Telp : (0536) 3220602, 3223975                    Telp : (0435) 830490, 829481
Web : www.btn.co.id                                  Email : kc.palangkaraya@btn.co.id                 Email : kc.gorontalo@btn.co.id
                                                     Web : www.btn.co.id                               Web : www.btn.co.id

Ternate Branch Office                                Panakkukang Branch Office                         Mamuju Branch Office
JL. Pahlawan Revolusi No. 152 Kel.                   Jl. Hertasning Blok I No. 2, Makassar             Jl KS Tubun No 18, Kabupaten Mamuju
Gamalama, Ternate Tengah, Maluku Utara               90222                                             Telp : (0426) 22389
97721                                                Telp : (0411) 868831, 868833                      Email : kc.mamuju@btn.co.id
Telp : (0921) 3111330                                Email : kc.panakukang@btn.co.id                   Web : www.btn.co.id
Email : kc.ternate@btn.co.id                         Web : www.btn.co.id
Web : www.btn.co.id



                                       Conventional Branch Offices Region 6 (Central Java & DI Yogyakarta Region)

Semarang Branch Office                               Yogyakarta Branch Office                          Solo Branch Office
Jl. M.T. Haryono No. 717, Semarang 50242             Jl. Jend. Sudirman No. 71,                        Jl. Slamet Riyadi No. 282, Solo 57141
Telp : (024) 312151, 446166                          Yogyakarta 55223                                  Telp : (0271) 726930
Email : kc.semarang@btn.co.id                        Telp : (0274) 589898, 581014, 581016              Email : kc.solo@btn.co.id
Web : www.btn.co.id                                  Email : kc.yogyakarta@btn.co.id                   Web : www.btn.co.id
                                                     Web : www.btn.co.id

Pekalongan Branch Office                             Purwokerto Branch Office                          Tegal Branch Office
Jl. Merdeka No. 7, Pekalongan 51113                  Jl. Jend. Sudirman No. 431,                       Jl. Gajah Mada No. 33, Tegal
Telp  : (0285) 433883, 433884, 433484,               Purwokerto 53116                                  Telp : (0283) 343050, 343835, 323038
        433917, 413222                               Telp : (0281) 641114                              Email : kc.tegal@btn.co.id
Email : kc.pekalongan@btn.co.id                      Email : kc.purwokerto@btn.co.id                   Web : www.btn.co.id
Web : www.btn.co.id                                  Web : www.btn.co.id

Kudus Branch Office                                  Magelang Branch Office
Jl AKBP Agil Kusumadya No 32,                        Jl. Tentara Pelajar No. 40, Magelang 56116
Kecamatan Jati Kudus                                 Telp : (0293) 3215983
Telp : (0291) 438732                                 Email : kc.magelang@btn.co.id
Email : kc.kudus@btn.co.id                           Web : www.btn.co.id
Web : www.btn.co.id




                                                                                     PT Bank Tabungan Negara (Persero) Tbk                         85
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                          Company
                          Profile




                                                         Sharia Branch Offices
                                                 Sharia Branch Offices Region 1 (West Java Region)

Bandung Sharia Branch Office                      Bekasi Sharia Branch Office                         Bogor Sharia Branch Office
Jl. Diponegoro No. 8, Bandung                     Jl. Ahmad Yani, Ruko Sentra Niaga Kalimalang        Jl. Jendral Sudirman No. 01, Kec. Bogor
Kel. Citarum, Kec. Bandung Wetan                  Blok A.IV No.5-6 dan Blok B No. 1                   Tengah, Bogor 16121
Bandung 40115                                     Kel. Kayuringin Jaya, Kec. Bekasi Selatan,          Telp : (0251) 8327171, 8327575
Telp  : (022) 4265472, 4265473,                   Kota Bekasi 17144                                   Email : kcs.bogor@btn.co.id
        4265474                                   Telp : (021) 8893333                                Web : www.btn.co.id
Email : kcs.bandung@btn.co.id                     Email : kcs.bekasi@btn.co.id
Web : www.btn.co.id                               Web : www.btn.co.id

Cirebon Sharia Branch Office                      Tasikmalaya Sharia Branch Office                    Depok Sharia Branch Office
Jl. Raden Ajeng Kartini No. 68, Kel.              JI. Yudanegara No. 10, Kel. Yudanegara              Jl. Margonda Raya No. 438B-D, Kel. Pondok
Sukapura, Kec. Kejaksan, Cirebon                  Kec. Cihideung                                      Cina, Kec. Beji Kota Depok
Telp : (0231) 235485, 235486, 235488              Kota Tasikmalaya 46112                              Telp : (021) 7867661
Email : kcs.cirebon@btn.co.id                     Telp  : (0265) 310612, 7296566,                     Email : kcs.depok@btn.co.id
Web : www.btn.co.id                                       7296567, 7296568                            Web : www.btn.co.id
                                                  Email : kcs.tasikmalaya@btn.co.id
                                                  Web : www.btn.co.id

Karawang Sharia Branch Office
Jl Kertabumi no 29 C-D, Kelurahan Nagasari,
Kecamatan Karawang Barat,
Kabupaten Karawang 41311
Telp : 0267 - 8400888, 8400999
Email : kcs.karawang@btn.co.id
Web : www.btn.co.id




                                           Sharia Branch Offices Region 2 (DKI Jakarta & Banten Region)

Jakarta Harmoni Sharia Branch Office              Tangerang Sharia Branch Office                     Jakarta Pasar Minggu Sharia Branch
Jl. Suryo Pranoto No. 9 B-D, Kel. Petojo          Jl. Serpong Raya, Ruko Villa Melati Mas Blok.      Office
Selatan Kec. Gambir Jakarta Pusat 10130           SR-1 No. 23-24, Serpong - Tangerang 15320          Ruko Grand Palace Blok G & H,
Telp : (021) 3860617, 3860620, 3864265            Telp : (021) 5370773                               Jl. Raya Ps. Minggu Km 16 Pancoran -
Email : kcs.jakartaharmoni@btn.co.id              Email : kcs.tangerang@btn.co.id                    Jakarta Selatan
Web : www.btn.co.id                               Web : www.btn.co.id                                Telp : (021) 7993662, 7993015
                                                                                                     Email : kcs.pasarminggu@btn.co.id
                                                                                                     Web : www.btn.co.id

Serang Sharia Branch Office
Jl. Jend Ahmad Yani No. 175, Cipete
Kel. Sumur Pecung, Kec. Serang,
Kota Serang - Banten
Telp : (0254) 7915869
Email : kcs.cilegon@btn.co.id
Web : www.btn.co.id



                                       Sharia Branch Offices Region 3 (East Java, Bali, Nusa Tenggara Region)

Surabaya Sharia Branch Office                     Malang Sharia Branch Office                        Mataram Sharia Branch Office
Jl. Diponegoro No. 29, Surabaya 60271             Jl. Jaksa Agung Suprapto No. 87,                   Jl. Pejanggik No. 18-19, Kel.
Telp : (031) 5666363,5610518                      Kel. Rampal Celaket, Kec. Klojen                   Cakranegara Kab. Mataram
Email : kcs.surabaya@btn.co.id                    Kota Malang 65112                                  Telp : (0370) 7503646
Web : www.btn.co.id                               Telp : (0341) 3012469                              Email : kcs.mataram@btn.co.id
                                                  Email : kcs.malang@btn.co.id                       Web : www.btn.co.id
                                                  Web : www.btn.co.id

Jember Sharia Branch Office
Jl Hayam Wuruk No 16, Kelurahan Kaliwates
Kecamatan Kaliwates Kabupaten Jember
Telp : (0331) 491009, 491010
Email : kcs.jember@btn.co.id
Web : www.btn.co.id




86          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                         2023 Annual Report




                                                     Sharia Branch Offices Region 4 (Sumatra Region)

Batam Sharia Branch Office                            Medan Sharia Branch Office                        Pekanbaru Sharia Branch Office
Jl. Sriwijaya Komp. Regency Park Lot 29,              Jl Diponegoro No 34, Kelurahan Madras Hulu        Jl Jendral Sudirman No 203, C D E F G,
Pelita - Batam 29432                                  Kecamatan Medan Polonia Kota Medan                Kelurahan Tangkerang Tengah, Kecamatan
Telp : (0778) 421921                                  Telp : (061) 4144554                              Merpoyan Damai, Kota Pekanbaru 28128
Email : kcs.batam@btn.co.id                           Email : kcs.medan@btn.co.id                       Telp : (0761) 7891314
Web : www.btn.co.id                                   Web : www.btn.co.id                               Email : kcs.pekanbaru@btn.co.id
                                                                                                        Web : www.btn.co.id

Palembang Sharia Branch Office                        Banda Aceh Sharia Branch Office                   Bengkulu Sharia Branch Office
Jl. A Rivai No. 221, Kel. 26 Ilir D.1, Kec. Ilir      Jl. H.M Daud Beureuh No. 39, Desa. Kuta           JL. S. Parman No. 24, Kel. Penurunan,
Barat I, Palembang, Sumatera Selatan                  Alam, Kec. Kuta Alam, Kota. Banda Aceh            Kec. Ratu Samban,
Telp : (0711) 365808, 354001, 353230                  Telp : (0651) 40331                               Kota Bengkulu, Provinsi Bengkulu
Email : kcs.palembang@btn.co.id                       Email : kcs.bandaaceh@btn.co.id                   Telp : (0736) 78604566
Web : www.btn.co.id                                   Web : www.btn.co.id                               Email : kcs.bengkulu@btn.co.id
                                                                                                        Web : www.btn.co.id

Jambi Sharia Branch Office                            Padang Sharia Branch Office                       Bandar Lampung Sharia Branch Office
Jl. Hayam Wuruk No. 27, Kel. Cempaka Putih,           Jl. Belakang Olo No. 47, Kel. Kp Jao,             Jl Kartini No 85, Kelurahan Palapa,
Kec. Jelutung - Kota Jambi                            Kec. Padang Barat, Padang, Sumatera Barat         Kecamatan Tanjung Karang Pusat,
Telp : (0741)- 3620645, 3620687                       Telp : (0751)- 8954842, 8954832                   Kota Bandar Lampung 35116
Email : kcs.jambi@btn.co.id                           Email : kcs.padang@btn.co.id                      Telp : (0751)- 6025555
Web : www.btn.co.id                                   Web : www.btn.co.id                               Email : kcs.bandarlampung@btn.co.id
                                                                                                        Web : www.btn.co.id



                                      Sharia Branch Offices Region 5 (Kalimantan, Sulawesi, Maluku, Papua Region)

Makassar Sharia Branch Office                         Banjarmasin Sharia Branch Office                  Palu Sharia Branch Office
Jl A.P Pettarani No 21, Tamamaung,                    Jl. Jend Ahmad Yani KM 5,5 No. 456                Jl. Emmy Saelan No. 36, Kel. Tatura Utara,
Kecamatan Panakkukang,                                Kel. Pemurus Luar, Kec. Banjarmasin Timur         Kec. Palu Selatan, Kota Palu 94236
Kota Makassar 90231                                   Kota Banjarmasin - Kalimantan Selatan             Telp : (0451) - 485431
Telp : (0411) 3613399                                 Telp  : (0511) 3250530, 3250540,                  Email : kcs.palu@btn.co.id
Email : kcs.makassar@btn.co.id                                3250560                                   Web : www.btn.co.id
Web : www.btn.co.id                                   Email : kcs.banjarmasin@btn.co.id
                                                      Web : www.btn.co.id

Balikpapan Sharia Branch Office                       Kendari Sharia Branch Office                      Pontianak Sharia Branch Office
Jl. Jenderal Sudirman No. 565 – 566,                  Jl. MT Haryono No. 78 Kel. Bende,                 Jl Jend Ahmad Yani No 61 G-H, Kelurahan
Balikpapan 76114                                      Kec. Baruga – Kota Kendari                        Bangka Belitung Laut, Kecamatan Pontianak
Telp : (0542) 742260, 742258                          Telp : -                                          Tenggara, Kota Pontianak
Email : kcs.balikpapan@btn.co.id                      Email : kcs.kendari@btn.co.id                     Telp : (0561) - 8171285
Web : www.btn.co.id                                   Web : www.btn.co.id                               Email : kcs.pontianak@btn.co.id
                                                                                                        Web : www.btn.co.id



                                           Sharia Branch Offices Region 6 (Central Java & DI Yogyakarta Region)

Yogyakarta Sharia Branch Office                                                 Solo Sharia Branch Office
Jl. Faridan M Noto No. 10, Kota Baru Gondokusuman                               Jl. Brigjen Slamet Riyadi No. 332, Solo 57141
Yogyakarta 55224                                                                Telp : (0271) 712127, 7008978, 7008947
Telp : (0274) 551055, 512467                                                    Email : kcs.solo@btn.co.id
Email : kcs.yogyakarta@btn.co.id                                                Web : www.btn.co.id
Web : www.btn.co.id

Tegal Sharia Branch Office                                                      Semarang Sharia Branch Office
Jl. Jenderal Sudirman No. 02 , Kel. Pekauman, Kec. Tegal Barat,                 Jl. Achmad Yani No. 181 Kel. Wonodri
Kota Tegal - Jawa Tengah 52113                                                  Kec. Semarang Selatan, Kota Semarang
Telp : (0283) 342923 ,342933                                                    Telp : (024) 8449918, 8449919
Email : kcs.tegal@btn.co.id                                                     Email : kcs.semarang@btn.co.id
Web : www.btn.co.id                                                             Web : www.btn.co.id




                                                                                      PT Bank Tabungan Negara (Persero) Tbk                          87
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                            Company
                            Profile




Business Partner
Network

The Company always cooperates with various business partners, purposed of achieving the set targets. The Company also runs various
business partnerships in the context of providing banking product services and convenience of transactions carried out by the customers.
The cooperation carried out by the Company with business partners include the following:


                                Group/Company                                                               Description

 South Jakarta District Court                                                E-Panjar Application and One Stop Integrated Service

 Telkomsel                                                                   TCASH-BTN

 Indonesian Olympic Committee (KOI)                                          KPR Atlet
 PT Aviasi Pariwisata Indonesia (Persero) & Grup Usaha (PT Angkasa Pura I
                                                                             Corporate Loans - Term Loan and Investment
 dan PT Angkasa Pura II)
 PT PP (Persero) Tbk dan Grup Usahanya (PP Properti, PP Urban dan lainnya)   Property Construction (Cash Loan and Non-Cash Loan)
 PT Pertamina (Persero) dan Grup Usahanya ( Pertamina EP, Pertamina Hulu
                                                                             Corporate Loans - Investment (Syndication and Term Loan)
 Energi, Pertamina Hulu Indonesia dan lainnya)
 PT Wijaya Karya (Persero) Tbk dan Grup Usahanya (WIKA Realty, WIKA
                                                                             Property Construction (Cash Loan and Non-Cash Loan)
 Gedung, WIKA Industri dan Konstruksi)
 PT Adhi Karya (Persero) Tbk dan Grup Usahanya (Adhi Commuter Properti       Property Construction (Cash Loan and Non-Cash Loan) - Including
 dan Adhi Persada Properti)                                                  Developers that support the provision of housing units for millennials

                                                                             Property Construction (Cash Loan and Non-Cash Loan) - Including
 Perum Perumnas
                                                                             Developers that support the provision of housing units for millennials

 PT Waskita Karya Realty                                                     Property Construction

 PT Bumi Serpong Damai Tbk                                                   Corporate Loans - Term Loan

 PT Pengembangan Pariwisata Indonesia (Persero) – ITDC                       Corporate Loans - Term Loan (Syndicated)

 PT Indonesia Financial Group (IFG)                                          Corporate Loans - Term Loan (Syndicated)

 PT Perusahaan Listrik Negara (Persero)                                      Corporate Loans - Investment (Syndicated - Infrastructure)

 PT Jasamarga Bali Toll                                                      Corporate Loans - Investment (Syndicated - Infrastructure)

 PT Permodalan Nasional Madani (Persero)                                     Corporate Loans - Working Capital
 Sinar Mas APP ( PT Indah Kiat Pulp & Paper, PT OKI Pulp & Paper dan PT
                                                                             Corporate Loans (Cash Loan and Non Cash Loan)
 Pindo Deli Pulp & Paper)
 PT Perusahaan Pengelola Aset (Persero)                                      Corporate Loans - Working Capital (Cash Loan and Non Cash Loan)

 PT Alam Sutera Realty                                                       Corporate Loans - Working Capital (Syndicated)

 PT Astakona Megahtama                                                       Construction Loans

 BULOG                                                                       Corporate Loans - Working Capital

 Ciputra Residence                                                           Corporate Loans - Working Capital

 PT Nindya Karya                                                             Corporate Loans - Contractors

 PT Yodya Karya                                                              Corporate Loans - Contractors

 PT Virama Karya                                                             Corporate Loans - Contractors

 PT LEN Industri                                                             Corporate Loans - Contractors

 PT Lippo Cikarang                                                           Corporate Loans - Working Capital

 PT Pupuk Sriwidjaja Palembang                                               Corporate Loans - Syndicated Investment

 Medco Power Indonesia                                                       Corporate Loans - Investment

 Salim Group ( PT Mega Akses Persada & PT Air Bersih Jakarta)                Corporate Loans - Investment (Syndicated)

 PT Bandung Indah Permai                                                     Corporate Loans - Investment

 Blue Bird                                                                   Housing Financing

 Grab Indonesia                                                              Housing Loans

 Gojek                                                                       Housing Loans




88           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                         2023 Annual Report




                              Group/Company                                                                  Description

BPKH                                                                           Hajj Deposit Recipient Bank

Kemenag                                                                        Hajj Recipient Bank

Public Housing Savings Management Agency (BP Tapera)                           Housing Loans

Ministry of Public Works and Housing (Kementerian PUPR)                        Management of Funds and Housing Loans
Work Unit of the Directorate General of Public Works and Housing
                                                                               Distribution of Housing Down Payment Subsidies
Infrastructure Financing, Ministry of Public Works and Housing (Satker PUPR)
PT Jamkrindo Syariah                                                           Financing Insurance Guarantee

PT Askrindo Syariah                                                            Financing Insurance Guarantee

PT Jasindo Syariah                                                             Financing Insurance Guarantee

PT Sarana Multigriya Finansial (Persero)                                       KPR Securitization, Refinancing Loans and FLPP Loans

Ministry of Finance of the Republic of Indonesia                               Management of Work Unit Accounts and Public Service Agencies

Ministry of Religion of the Republic of Indonesia                              Cooperation Related to Hajj
Ministry of Education, Culture, Research and Technology of the Republic of
                                                                               Distribution of Smart Indonesia Card Funds
Indonesia
Hajj Financial Management Agency                                               Management of Hajj funds

Halal Product Assurance Organizing Agency                                      Fund management

Environmental Fund Management Agency                                           Fund management

Public Housing Savings Management Agency                                       Fund management

Educational Fund Management Institution                                        Fund management

Marine and Fishery Business Capital Management Institution                     Fund management

PT Hutama Karya (Persero)                                                      Fund management & Non Cash Loan

PT Rajawali Nusantara Indonesia (Persero)                                      Fund management

PT Permodalan Nasional Madani (Persero)                                        Fund management

PT Jaminan Kredit Indonesia                                                    Fund management

PT Jamkrindo Syariah                                                           Fund management

PT Reasuransi Indonesia Utama                                                  Fund management

PT Penjaminan Infrastruktur Indonesia                                          Fund management

PT Sarana Multigriya Finansial (Persero)                                       Fund management

PT Perusahan Gas Negara Tbk                                                    Fund management

PT Ciputra Nusantara                                                           Fund management

PT Indonesia Kendaraan Terminal Tbk                                            Fund management

PT Medco Power Indonesia                                                       Fund management

PT BFI Finance Indonesia Tbk                                                   Fund management

Bank Negara Indonesia Financial Institution Pension Fund                       Fund management

Bank Rakyat Indonesia Financial Institution Pension Fund                       Fund management

Tugu Mandiri Financial Institution Pension Fund                                Fund management

Allianz Insurance Company                                                      Fund management

Manulife Indonesia                                                             Fund management

Sun Life Financial                                                             Fund management

Yayasan Kesejahteraan Pegawai Otoritas Jasa Keuangan                           Fund management

PT Permodalan Nasional Madani (Persero)                                        BTN iB Working Capital Financing
PT Pabrik Gula Rajawali I, Grup Usaha dari PT Rajawali Nusantara
                                                                               BTN iB Working Capital Financing
Indonesia (Persero)
PT Industri Kereta Api “INKA” (Persero)                                        BTN iB Contractor Working Capital Financing

PT Waskita Karya Realty                                                        BTN iB Construction Financing

BPJS Kesehatan                                                                 Receipt of participant fees

BPJS Ketenagakerjaan                                                           Receipt of participant fees

Yogyakarta State University                                                    Online SPP contribution receipt




                                                                                   PT Bank Tabungan Negara (Persero) Tbk                      89
Page 92
                               Company
                               Profile




                                Group/Company                                      Description

Sunan Ampel State University Surabaya                Online SPP contribution receipt

University of Indonesia                              Online SPP contribution receipt

Gajah Mada University                                Online SPP contribution receipt

Bogor Agricultural Institute                         Online SPP contribution receipt

Semarang State University                            Online SPP contribution receipt

Brawijaya University Malang                          Online SPP contribution receipt

Mulawarman University                                Online SPP contribution receipt

Hasanuddin University                                Online SPP contribution receipt

Bakti Kominfo                                        BTS Rental Acceptance

PDAM Tirtawening                                     Receipt of Water Bill Contributions

PDAM Malanng                                         Receipt of Water Bill Contributions

PDAM Bekasi                                          Receipt of Water Bill Contributions

PDAM Kota Samarinda                                  Receipt of Water Bill Contributions




90           PT Bank Tabungan Negara (Persero) Tbk
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                                                                           2023 Annual Report




Company
Brand


                                                                            Bank BTN logo
                                                                            The Bank BTN logo consists of 4 (four)
                                                                            elements, namely, logotype, primary
                                                                            logogram, secondary logogram and
                                                                            tagline. Logotype and logogram are
                                                                            inseparable units in their use in various
                                                                            media.



                                                                            Supergraphic
                                                                            This supergraphic was applied to all of
                                                                            Bank BTN’s visual stationery designs.
                                                                            The roof-shaped supergraphic was taken
                                                                            from the Bank BTN logogram graphic
                                                                            accent; the arrow symbol up means
                                                                            always optimistic to be the best for both
                                                                            the company and customers/partners.



                                                                            Colors
                                                                            Bank BTN has 4 (four) colors, consisting
                                                                            of 3 (three) primary colors and 1 (one)
                                                                            secondary color. 3 (three) primary colors
                                                                            (blue, gold and red) are displayed on
                                                                            the Bank BTN logo, while the secondary
                                                                            color (yellow) reflects the identity of
                                                                            Bank BTN as a company that is dynamic
                                                                            and has high enthusiasm in meeting the
                                                                            expectations of the Indonesian people in
  The Primary Logogram in the form of a roof represents the                 the banking sector.
  main mission of Bank BTN to meet the mortgage needs of
  the Indonesian people. The Primary Logogram consists of two
  hexagon patterns with different sizes to describe the philosophy
                                                                            The blue color represents the Bank BTN
  and worldview of the Indonesian people: the big ones protect
                                                                            maturity in managing banking business
  and grow the small ones.                                                  and wisdom Bank BTN in delivering
                                                                            the primary mission of the national
                                                                            development.




                                                                            The gold color represents the Bank BTN
                                                                            solid credibility in proving itself as a
                                                                            bank with public trust.


  The secondary logogram in the form of a red line represents the
  confidence and reliability of Bank BTN.
                                                                            The red color represents selfconfidence
                                                                            Bank BTN as a strong bank that runs a
                                                                            banking business in Indonesia.




                                                             PT Bank Tabungan Negara (Persero) Tbk                91
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                        Company
                        Profile




Company
at A Glance



PT Bank Tabungan Negara (Persero) Tbk (“Company”)
began with the establishment of Postspaarbank in
1897. In 1942, Postspaarbank was taken over by the
Japanese Government and changed its name to Tyokin
Kyoku or Savings Office. Then this continued in 1945,
the Indonesian government took over Tyokin Kyoku
and established the Taboengan Pos Office. In the post-
independence era, in 1950 to be precise the Government
of the Republic of Indonesia changed the name Tyokin
Kyoku to Bank Savings Post based on Emergency Law
no. 9 of 1950 dated February 9, 1950 and later based
on Government Regulation in Lieu of Law No. 4 of 1963
changed its name to Bank Tabungan Negara in 1963
until now.



In 1974, the Government appointed the Company as the only           In 2009, the Company carried out the first KPR securitization
institution that disbursed Housing Loans (KPR), in line with the    in Indonesia. The Company conducted asset securitization by
Government Program which was promoting housing programs             recording Collective Investment Contract - Asset Backed Securities
for the people. In 1976, the Company made its first realization     (KIK-EBA) transactions, then on December 17, 2009 conducted
at Tanah Mas Housing, Semarang City. On April 29, 1989,             an Initial Public Offering (IPO) and listing on the Indonesia Stock
the Bank started operating as a state-owned commercial bank.        Exchange.
Based on Government Regulation no. 24 of 1992, the status of
the Bank was changed to a state-owned limited liability company     In 2015, the Company played an important role in assisting
(Persero). Deed of establishment of the Bank as a Persero made      the Government Program “One Million Houses for the People
before Notary Muhani Salim, S.H., No. 136 dated July 31,            Program”. The company was appointed as one of the banks
1992 and had been ratified by the Minister of Justice with Decree   supporting government programs through mortgage financing. In
No. C2-6587.HT.01.01.TH.92 dated August 12, 1992 and                2017, the journey of the Company’s digital banking transformation
announced in State Gazette No. 73 dated September 11, 1992          process continued. From a business perspective, the Company
Supplement No. 6A. In 1994, based on the Decree of the Board        continued to improve banking services by accelerating the stages
of Directors of Bank Indonesia No. 27/55/KEP/DIR September          of transformation in the digital era, one of which was by opening
23, 1994, the Company obtained an operating license as a            a Smart Branch. The Company’s Smart Branch was equipped
Foreign Exchange Bank and subsequently the Company was              with a variety of services to facilitate customer needs in obtaining
appointed as a commercial bank focusing on home financing in        banking information, conducting communications, transactions,
2002. The Company obtained approval from Bank Indonesia to          registration and opening accounts.
carry out general banking activities based on sharia principles
by letter No. 6/1350/DPbS dated December 15, 2004. The              In 2019, the Company became a Housing Market Maker and
Company started its activities based on sharia principles on        strengthened its position as the 5th Largest Bank. Furthermore,
February 14, 2005 with the operation of the first sharia branch     2022 became an important year because it was the second
in Jakarta - Harmoni.                                               time the Company held a Rights Issue or issued new shares after
                                                                    2012. The Rights Issue is intended to be one of the Company’s




92          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                          2023 Annual Report




efforts to increase loans expansion while simultaneously strengthening capital to oversee the Company’s mission to become The Best
Mortgage Bank in Southeast Asia by 2025. In 2023, as a form of digital banking transformation, the Company released BTN Mobile,
an application to support banking services via mobile phone replacing BTN Mobile Banking.



Description of Name Change

Bank BTN has endured a long journey to become what it is today. From Bank Tabungan Pos in 1950, the Company now becomes PT
Bank Tabungan Negara (Persero) Tbk.




        1897 - 1950                           1950                            1963                             2009 - Present

  Established under the name        On February 9, 1950, the         On June 22, 1963, the             On December 17, 2009, the
  of Postspaarbank in 1897          Indonesian Government            Company was inaugurated           Company performed its Initial
  under the Dutch East Indies       changed the Company’s            as Bank Tabungan Negara.          Public Offering (IPO) at the
  government, then renamed          name to Bank Tabungan Pos.                                         Indonesia Stock Exchange.
  to Tyokin Kyoku or Kantor                                                                            The Company became
  Tabungan in 1942 during                                                                              a public limited liability
  the Japanese government.                                                                             company under the name of
  The Company was changed                                                                              PT Bank Tabungan Negara
  into Kantor Taboengan                                                                                (Persero) Tbk.
  Pos in 1945 during the
  independence period of the
  Republic of Indonesia.




                                                                       PT Bank Tabungan Negara (Persero) Tbk                      93
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              Company
              Profile




Company Vision, Mission,
Values and Culture




              VISION
         “To become the
         Best Mortgage
        Bank in Southeast
         Asia by 2025.”




94   PT Bank Tabungan Negara (Persero) Tbk
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                                                               2023 Annual Report




                                                   REVIEW OF COMPANY VISION
                                                   AND MISSION BY THE BOARD
                                                   OF COMMISSIONERS AND THE
                                                      BOARD OF DIRECTORS

                                                The Vision and Mission are periodically reviewed by
                                                taking into consideration the external and internal
                                                environmental changes. The results of the Vision and
                                                Mission review by the Board of Commissioners and
                                                Directors carried out in 2021 and recommendations
                                                from McKinsey stated that the formulation of the new
                                                Vision and Mission is in accordance with changes in
                                                external and internal environmental conditions and is still
                                                relevant in 2023. The new Vision and Mission have been
                                                established in the Corporate Plan Company Year 2021-
                                                2025 and has been outlined in the Bank Business Plan
                                                2023-2025.




MISSION


1   Actively supporting the government    4       Increasing shareholder value by
    in advancing the welfare of the               focusing on sustainable profitability
    Indonesian people through home                growth as a blue chip company with
    ownership.                                    strong risk management principles.


2   Realizing the life that millions of   5       Becoming a financial partner for the
    Indonesians dream of by providing             stakeholders in the housing ecosystem
    decent housing.                               by providing comprehensive solutions
                                                  and the best services through digital
                                                  innovations.
3   Becoming One of Home of Indonesia’s
    Best Talent.




                                              PT Bank Tabungan Negara (Persero) Tbk                   95
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                           Company
                           Profile




Corporate
Culture

The Company is aware of the importance of corporate cultural application which can significantly boost the Company’s performance. The
corporate culture has been modified for several times to ensure its relevance with the constantly changing external environment and business
ecosystem that go along with the current development and technological advancement. The current corporate culture adheres to AKHLAK core
values which stands for Amanah (Trustworthy), Kompeten (Competent), Harmonis (Harmonious), Loyal (Lotal), Adaptif (Adaptable) and Kolaboratif
(Collaborative) which are followed by 18 points that elaborate the core values in more details. All of them make up the foundation of Bank BTN
corporate culture. To strengthen the behavior that must be carried out by every BTNers, there are 8 (eight) main behaviors that must be carried
out by BTNers


                                                                                                               8 Key Behaviors
                                 “Become the Best Mortgage Bank
                                     in Southeast Asia 2025.”
                                                                                                                           Adhering to and
                                     Strategy Focus 2021-2025                                                     1        complying with the moral
                                                                                                                           values and business ethics,
                                     Strategy Theme 2021-2025
                                                                                                                           meeting commitments
                                                                                                                           according to applicable
                                            4 Pillars of Culture
                                                                                                                           regulation


      Sales & Service            Governance &               Performance
                                                                                    Learning Culture                       Continuously learning,
          Culture                 Risk Culture                Culture
                                                                                                                  2        making intrapreneurship
                                                                                                                           improvements for increasing
                                   Clean and                  Excellent                 Continuous                         selfcompetence and other
   Thriving and Meeting
   Customer Expectations          Trustworthy               Performance                  Learning                          people’s competence.


                                 Main Program and Elective Program                                                         Discipline, consistent and
                                                                                                                  3        thorough in completing
                                           Critical Few Behaviors                                                          tasks with the best      S
                                                                                                                           quality of
               3                                     6                                    7                                                      G P
                                                                                                                           performance.

   Discipline, consistent and             Proactive, effective, and         Responsive towards changes
 thorough in completing tasks          efficient in meeting customer              and providing                            Mutually respectful,
    with the best quality of                        needs                    opportunity for continuous
         performance.                                                             improvements.
                                                                                                                  4        appreciating and open to
                                                                                                                           differences.


                                       Leader Symbolic Actions
                                                                                                                      Critical Few Behaviors
                                     8 Key Conducts for BTNers


18 (Eighteen) AKHLAK CONDUCTS FOR BTNers




               Trustworthy                                             Competent                                   Harmonious
     • Fulfilling promises and                             • Improving competence to answer               • Respecting others regardless of
       commitments.                                          to ever-changing challenges.                   their background.
     • Responsible for duties, decisions                   • Helping others to learn.                     • Helpful to others.
       and actions taken.                                  • Finishing duties with the best               • Building favorable work
     • Adhering to moral and ethical                         quality.                                       environment.
       values.




96           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                       2023 Annual Report




                                                                     Trustworthy              Upholding mandated trust.




                                                                                              Continuosly learning and
                                                                      Competent               developing capabilities.



             Responsible and always
    5        putting the company’s
                                                                                              Care for each other and
             interests ahead.
                                                                    Harmonious                respecting diversity.

             Proactive, effective,
    6        and efficient in meeting
             customer needs.
                                    S   P

                                                                                              Dedicated and prioritizing the
                                                                          Loyal               country and Nation’s interests.
             Responsive towards
    7        changes and providing
             opportunity for
             continuous         S G
             improvements.
                                    P   L                                                     Constantly innovating and
                                                                      Adaptable               enthusiastic in driving and
             Open to cooperation that                                                         facing changes.
    8        delivers added value



S       Sales & Service Culture
G       Governance & Risk Culture                                  Collaborative              Building synergic cooperation.
P       Performance Culture
L       Learning Culture




                           Loyal                         Adaptable                                 Collaborative
        •   Maintaining the honor of fellow   • Easily adaptable to bettering self.        • Providing opportunity for other
            employees, leaders, SOEs and      • Make continuous improvements                 parties to contribute.
            Country.                            to keep up with technological              • Open to cooperation that delivers
        •   Willing to sacrifice for the        development.                                 added value.
            greater good.                     • Being proactive.                           • Encouraging the utilization of
        •   Obeying leaders as long as in                                                    various resources for common
            compliance with the laws and                                                     goals.
            ethics.




                                                                         PT Bank Tabungan Negara (Persero) Tbk                   97
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                        Company
                        Profile




To strengthen and support the Company’s objectives based on 6 (six) Values and 18 (eighteen) AKHLAK Main Behavior Guidelines and
8 (eight) BTNers Main Behaviors, there are 4 (four) cultural pillars and 15 Symbolic Actions of Leadership as the main foundation for
Implementing Corporate Culture in 2023. With the following explanation:




                  Program Theme 2023                                                    Program Theme 2023




                                  “Fulfilling Customer
        “Add Grow”                                                                     “Clean and Trusted”
                                     Expectations”

     Sales Effectiveness           Services Excellence                         Integrity Zone (Risk and Governance)



                        Pillar Goals:                                                         Pillar Goals:
        The end state achievement is increasing sales of                     Build awareness and understanding of risks and
        funding, lending and digital products as well as                       their mitigation and apply risk management
      improving service quality to encourage Bank BTN’s                            principles consistently and thoroughly
                   business and performance




                                      Sales & Service                    Governance & Risk
                                          Culture                             Culture




                                   Performance Culture                     Learning Culture



                        Pillar Goals:                                                         Pillar Goals:
               Performance improvement efforts                               Building enthusiasm for learning and increasing
                     to achieve set goals                                       critical competencies such as Sales, Digital
                                                                               Analytics, Risk & Collection competencies as
                                                                             well as strengthening BTNers’ understanding of
                                                                             the importance of culture and the application of
                                                                                            AKHLAK in daily life


                    Performane Review                                                Learning, Sharing & Doing



               “Superior Performance”                                                     “Keep learning”




                  Program Theme 2023                                                    Program Theme 2023



98          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                 2023 Annual Report




      Sales & Service Culture                                   Governance & Risk Culture



        Visiting customers once a month with team members            Conduct checkpoints with team members regarding
SS1     with the agenda of maintaining and deepening           GR1   existing policies that are still relevant every quarter,
        relationships, updating new programs, exploring the          including communicating policy changes to
        voice of customers, and cross-division collaboration         employees and explaining the background to the
                                                                     policy changes.



        Conduct tracking & enforcement pipeline (lending             Reviewing every decision and decision-making
SS2     and funding) on a monthly (by BOD) and weekly (by      GR2   process based on SOPs and applicable laws and
        BOD-1) basis.                                                regulations.



        Give awards/appreciation to best sales champions             Declaring and not participating in decision making if
SS3                                                            GR3
        on a monthly basis (by BOD-1) and 3 months (by               there is a personal interest.
        BOD).

                                                               GR4   Conduct surprise visits and check regularly.
        Ensure response and follow up to answer customer
SS4     needs (internal and external), including connecting          At every opportunity, leaders remind and set
        customers with related units, no more than 3 days.     GR5   an example for employees to comply with
                                                                     company rules and risks, and take firm action
                                                                     against violations. Using the tagline “Obey the
                                                                     rules, manage the risks, take firm action against
                                                                     violations.”




       Performance Culture                                            Learning Culture



        Always carry out business performance reviews at             Regularly conduct coaching and mentoring at
PC1     the beginning and middle of the month, supported       LC1   least once every 3 months on how to encourage
        by valid data and daily monitoring                           increased productivity and competency of team
                                                                     members

        Conduct coaching on how to monitor and improve
PC2     work unit performance at least 3 times a year                Sharing knowledge related to applicable
                                                               LC3   regulations, product knowledge, customer
                                                                     experience, market updates, success stories, etc., at
                                                                     least once a month in each work unit with the tagline
        Always hold cross-directorate/work unit meetings             “Ensure, Understand and Obey.”
PC3     according to the company’s urgency for KPI
        alignment.
                                                                     Increase digital presence and encourage employees
                                                               LC3   to understand technology and become digital
                                                                     influencers.




                                                                PT Bank Tabungan Negara (Persero) Tbk                     99
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                           Company
                           Profile




Business
Activities

Business Activities According to the Articles of Association
and Business Activities Conducted

 No                               Scope of Business Activities Based on Articles of Association                                      Has/Not Executed

Main Business Activities

        Collect funds from the community in the forms of current account, term deposit, certificate of deposit, savings and/or
 1.                                                                                                                                        yet
        other equal forms;

 2.     Provide loans;                                                                                                                     yet

 3.     Issue acknowledgment of debt;                                                                                                      yet

 4.     Purchase, sell, or guarantee either at its own risk or for the interest and at the order of its customers:                         yet

        a.   Bank draft, including drafts accepted by the Company as a bank, whose validity period is no longer than the norm
                                                                                                                                           yet
             in the trade of the relevant bill;

        b.   Acknowledgment of debt and other commercial papers whose validity period is no longer than the norm in the
                                                                                                                                           yet
             trade of the relevant letters;

        c.   State Treasury Paper and State Guarantee Letter                                                                               yet

        d.   Bank Indonesia Certificate (SBI);                                                                                              yet

        e.   Bonds                                                                                                                          yet

        f.   Commercial papers according to laws and regulations;                                                                           yet

        g.   Other termed security instruments according to laws and regulations.                                                           yet

 5.     Transfer money either for its own interest or for the customers’ interest                                                           yet

        Placing funds in, borrowing funds from, or lending funds to other banks, either using letters, communication facilities,
 6.                                                                                                                                         yet
        sight drafts, checks, or other facilities

 7.     Receive payments for security bills and make calculations with or between third parties                                            yet

 8.     Provide storage for valuables and securities                                                                                       yet

 9.     Provides a third-party custodian service on a contractual basis                                                                    yet

 10.    Places funds from one client to another client in the form of securities not listed on the stock exchange                          yet


 11.    Conduct financing and/or other activities, including sharia-based activities, according to Bank Indonesia’s provisions             yet

 12.    Conduct factoring, out credit activities, credit card business and trustee activities                                              yet

 13.    Conduct activities in foreign currencies according to regulator’s provisions                                                       yet

 14.    Performs short-term capital inclusion to banks or other financial institutions                                                    not yet

        Performs short-term capital inclusion to cope with credit or financing failures based on Islamic principles, with the
 15.                                                                                                                                      not yet
        condition that they have to withdraw/retrieve the inclusion, in accordance with regulations set by Bank Indonesia


 16.    Act as the founder and manager of retirement funds as provided by the laws and regulations                                         yet

 17.    Conduct financial services, commercial banking and other investment banking activities                                             yet

 18.    Conduct sharia-based business activities, according to regulator’s provisions and the laws and regulations;                        yet


 19.    Conduct other activities commonly performed by a bank, provided that they do not conflict with the laws and regulations            yet

Supporting Business Activities

        Optimizing the utilization of available resources to support main business activities as long as they do not conflict with
 1.                                                                                                                                        yet
        laws and regulations.




100          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                       2023 Annual Report




Products and Services

The products and services developed by the company belong to 2 (two) segments, i.e. conventional and sharia segments, with the
following explanation.




                                           PRODUCTS




                                                    Consumer Banking                           Commercial Banking


                                              Consumer Loan Products:                     Commercial Loan Products:
                                              •   Housing Loan                            •   Working Capital Loan
                                              •   Non Housing Loan                        •   Contractor Working Capital
                                                                                              Loans
                                                                                          •   Construction Working Capital
                                                                                              Loans
                                              Consumer Saving Products:
                                                                                          •   Land Ownership Loans
                                              •   Consumer Savings                        •   Linkage Loans
                                              •   Deposito BTN Ritel                      •   Savings Backed Loans
                                              •   Individual current account              •   Investment Loan
       CONVENTIONAL
         BANKING
                                              Wealth Management Products                  Commercial Savings Products:

                                              •   Bancassurance                           •   Time Deposit for Institutions
                                                                                          •   Commercial Demand Deposits
                                              •   Mutual Funds
                                              •   Primary Market Retail
                                                  Government Securities
                                                                                          Corporate Products:
                                              •   Secondary Market
                                                                                          • Capital Working Loans
                                                  Government Securities
                                                                                             • KMK Construction
                                              •   Foreign Exchange                           • KMK Contractor
                                                                                             • Bridging Loan
                                                                                             • KMK Backed by Savings
                                                                                                  (Self-Funding)
                                                     Sharia Banking                       • Investment Credit
                                                                                          • Refinancing
                                                                                          • Domestic Loans (PDN)
                                              Sharia Financing Products:                  • Term Loan Facility
                                              •   Consumer Financing                      • Corporate Line Facility
                                              •   Commercial Financing                    • Treasury Line Facility
                                                                                          • Supply Chain Financing (SCF)
            SHARIA                                                                        • Trust Receipt
                                                                                          • Letter of Credit (L/C) or
           BANKING                            Sharia Savings Products:
                                                                                             Domestic Documented Loan
                                              •   Sharia Demand Deposits                     Letter (SKBDN)
                                              •   Sharia Savings                          • BTN Bank Guarantee
                                              •   Sharia Time Deposit                     • Documentary Collection




                                                                         PT Bank Tabungan Negara (Persero) Tbk            101
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                  Company
                  Profile




                                   SERVICES




                                     Electronic Data Capture (EDC)       Electronic channel ATM


                                        BTN Cash Management              BTN Prioritas Services


                                            Virtual Account              PLUS by BTN Prioritas

                                         Visa/GPN Debit Card
                                                                          Branchless Banking
                                             & Online Debt

                                            Internet Banking              BTN Smart Residence

      CONVENTIONAL                                                      Online Onboarding Open
        BANKING                           BTN Property Portal
                                                                                Account

                                            Mobile Banking                  Notification SMS


                                                 SKBDN                           CRM

                                                                       Services and Other Banking
                                         BTN Bank Guarantee
                                                                                 Services


                                        Safe Deposit Box BTN iB              Payroll BTN iB


                                        BTN iB Bank Guarantee                 Remittances

                                          BTN iB Operational
                                                                         BTN Cash Management
                                         Development Program

                                           SPP Online BTN iB              Payment Poin BTN IB
          SYARIAH
         BANKING/
      SHARIA BUSINESS                Receipt of Hajj Travel Expenses        Virtual Account
            UNIT
                                                                        Online Onboarding Open
                                            Mobile Banking
                                                                                Account

                                      Sharia Visa/GPN Debit Card
                                             & Online Debit




102      PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




Product Variety

Conventional Banking

Consumer Banking

CONSUMER LOAN PRODUCTS                                                   • KP Ruko BTN (Shophouse ownership loan) to buy a
                                                                           shophouse or office house unit.
1. Housing Loans                                                        • Other Housing Loans
• KPR Bersubsidi BTN                                                       -    Kredit Agunan Rumah: A loan facility for various
   A Home Ownership program in partnership with the Ministry                    consumer        needs      using    house/apartment/
   of Public Works and People’s Housing aimed for Low-                          shophouse/office house as collateral.
   Income Communities (MBR) with small interest rates and low              -    Kredit Bangun Rumah BTN Loans facility for those
   installments for prosperous landed houses and flats                          who want to build a house on their own land.
   -    KPR FLPP                                                           -    BPJS Ketenagakerjaan Additional Service Benefits:
        Housing Financing Liquidity Facility, hereinafter                       √ Housing down payment loan as a down
        abbreviated as FLPP, is a support for housing financing                     payment loan facility for BPJS Ketenagakerjaan
        liquidity facilities for landed houses or flats for low-                    participants who apply for Bank BTN mortgage.
        income communities                                                      √ House Renovation Loan as a loan facility for
   -    KPR TAPERA                                                                  House renovation for BPJS Ketenagakerjaan
        KPR Tapera is a credit facility provided by the Bank to                     participants.
        MBR Tapera participants to purchase landed houses or         2. Non-Housing Loans
        flats.                                                          • Consumer segment Non-Housing Loan
   -    KBR TAPERA                                                         One of Bank BTN’s consumer segment non-housing loans
        Credit facilities from the Bank for MBR who become                 is consumer loan. Non-Housing loan in the consumer
        Tapera participants aimed at Development Flats with                segment includes BTN Light Loan (Kring BTN), Pre-
        Tapera Financing support.                                          Retirement Light Loan (Kring BTN Pra Pensiunan), Pension
   -    KRR TAPERA                                                         Light Loan (Kring BTN Pensiunan), Self-funding Loan and
        KRR Tapera is a credit facility provided by the Bank to            Employee Prosperity Loan.
        MBR Tapera participants to make their first home repairs.       • Kredit Ringan BTN (Kring BTN)
   • Non-Subsidized KPR (Home ownership loan) for middle                   Loan facilities intended for employees of companies/
        to upper segment customers. Non-subsidized KPR                     agencies to fulfill their various needs without collateral, it
        services consist of KPR BTN Platinum, KPA BTN and KP               is enough to just use the applicant’s Employee Decree.
        Ruko products.                                                  • Kredit Ringan BTN Pra Pensiun (Kring BTN Pra Pensiun)
        - KPR BTN Platinum: Home ownership loans for                       A loan facility for potential debtors/debtors whereas
             purchasing a home from a developer or non-                    the repayment is sourced from fixed income (salary
             developer, whether for purchasing a new or second-            and retirement funds) whose fund has or has not been
             hand home, purchasing a home ready to live in                 distributed via bank, for consumptive use. The period for
             (ready stock) or not yet finished (indent), or taking         this financing facility may overlap the debtor’s retirement
             over loans from another bank.                                 period.
        -    KPR Gaess GPM: Is a feature development of the             • Kredit Ringan BTN Pensiunan (Kring BTN Pensiunan)
             BTN Platinum KPR/KPA product to meet the needs                Fasilitas A loan facility for retired Civil Servants, retired
             of purchasing a house or apartment for prospective            members of Indonesian National Army/ Police, or
             debtors from the millennial generation segment                their widows/widowers whose retirement benefits are
             (21-35 years) with various conveniences and                   distributed via an account with Bank BTN.
             advantages.                                                • Kredit Swadana BTN
        -    Athlete KPR Special program for BTN Platinum KPR/             A loan facility for customers using savings or deposits
             KPA products intended for athletes, club officials/           kept with Bank BTN with the maximum loan of 90% of
             management, coaches and referees, as well as                  the amount of fund deposited by the customer. This facility
             administrators of the Indonesian Football Association         has competitive interest rate, quick and easy process,
             (PSSI).                                                       very flexible time span of up to 1 year and renewable.
   • KPA BTN A loan facility for purchasing apartment from
        developer or non-developer, either for new or second-
        hand apartment, ready stock apartment, apartment in
        construction (indent), or loan takeover from another
        bank.




                                                                         PT Bank Tabungan Negara (Persero) Tbk                     103
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                        Company
                        Profile




    •   Kredit Sejahtera Pegawai                                           retirees. BTN Retirement Savings is specifically made to
        A soft loan facility for employees who meet certain                channel pension funds with lower administrative costs.
        requirements.                                                  •   BTN Prima Savings
                                                                           Savings that provide prime benefits, convenience and
CONSUMER SAVINGS PRODUCTS                                                  interest that is more than ordinary savings.


1. Consumer Savings                                                2. BTN Retail Deposits
   • BTN Batara Savings                                               BTN Retail Deposits provide convenience for future
      Savings that provide easy and comfortable banking               investments in rupiah and foreign currencies (USD, SGD)
      transactions for family finances through the Bank BTN           with competitive interest rates and a deposit and withdrawal
      channel.                                                        system at certain times. By opening via Offline Branch Offices
   • BTN Investa Savings                                              and Online via BTN Mobile (eDeposito).
      Superior investment savings for your various needs with
      flexible withdrawals and deposits.                           3. BTN Individual Current Account
   • BTN Juara Savings                                                • Individual Current Account
      Savings for financial education and transactions                   Types of deposits denominated in Rupiah and foreign
      according to the needs of the younger generation aged              currencies held by banks opened by individuals whose
      12-23 years.                                                       withdrawals can be made at any time using checks, giro
   • Simpanan Pelajar (Simpel) Savings                                   slips and other withdrawal media.
      Savings for students with easy and simple requirements          • Joint Current Account
      and attractive features, in the context of financial               Accounts owned by more than one individual account
      education and inclusion to encourage a culture of saving           holder.
      from an early age.
   • BTN e’BATARAPOS Savings.                                      PRODUK WEALTH MANAGEMENT
      Savings collaboration with PT Pos Indonesia (Persero)
      which provides easier and closer services via online Post    a. Bancassurance
      Office counters throughout Indonesia.                           In offering bancassurance products, Bank BTN works with
   • BTN Cermat Savings                                               4 (four) insurance partners namely Sinarmas MSIG, Zurich
      Tabungan BTN Cermat is a card-based saving that                 Topas Life, Binagriya Upakara and IFG Life.
      provides easy access for low-income people who have             • Traditional Life Insurance
      not been exposed to any banking services through                    Insurance that offers certainty of the main insurance
      cooperation with Bank agencies.                                     benefits, namely in the form of a Life Sum Assured (UP)
   • Rekening Dana Nasabah (RDN) Savings                                  that can be prepared to face financial uncertainty in the
      Savings account provided by the Bank for investors in               future. BTN cooperates with Sinarmas MSIG, Zurich
      conducting capital market transactions.                             Topas Life and IFG Life in offering traditional life insurance
   • BTN siap! Savings                                                    products that can be obtained at the BTN Branch Office
      Term savings that are intended to meet the needs of future          network or can be offered through telemarketing.
      planning customers.                                             • Unit Link Life Insurance (Asuransi Jiwa Unit Link (PAYDI)
   • BTN Felas Savings                                                    The Unit Link insurance product provides a Sum Assured
      Products that can be used to save, transact and invest in           benefit in the event of a risk and a Cash Value benefit
      foreign currency. Available in USD, SGD, AUD, JPY and               that can be obtained from the premium portion invested.
      CNY.                                                                Bank BTN collaborates with Sinarmas MSIG Insurance
   • Simuda Rumahku Savings                                               Partners with the Smart Flexi Optima Link (Single Premium
      Term savings intended for students and young people                 Unit Link) Product.
      aged 18-30 years as a means of education about               b. Mutual Funds
      planning for home ownership from an early age.                  The Bank as Mutual Fund Selling Agent (APERD) cooperates
   • Business Savings                                                 with 9 (nine) Investment Manager Partners in offering mutual
      BTN Business Savings presents features and services             fund products, both open end mutual funds and protected
      that facilitate your various business needs with complete       mutual funds. Investment Manager Partners who work with
      support for larger businesses.                                  the Bank are as follows:
   • Retirement BTN Savings                                           1. PT Bahana TCW Investment Management
      Convenience for retired customers and prospective               2. PT Trimegah Asset Management
                                                                      3. PT Manulife Aset Manajemen Indonesia




104         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




4.   PT Schroder Investment Management Indonesia                              for the highest rate of return. Equity Mutual Fund Products
5.   PT Danareksa Investment Management                                       include:
6.   PT Batavia Prosperindo Aset Manajemen                                    • Mutual Fund of Prima Equity Fund Bahana
7.   PT Insight Investments Management                                        • Mutual Fund of TRIM Kapital Plus
8.   PT Mandiri Manajemen Investasi                                           • Mutual Fund of Manulife Class A Equity Fund
9.   PT Sucorinvest Asset Management                                          • Mutual Fund of Sectoral Amanah Manulife Syariah
                                                                                   Class A
•    Money Market Mutual Funds                                                • Mutual Fund of Mawar Consumer 10
     This type of mutual fund invests 100 percent of its                      • Mutual Fund of Schroder 90 Plus Equity Fund
     managed funds in money market products such as                           • Mutual Fund of Schroder Achievement Fund
     deposits and securities with maturities of less than 1 year.             • Mutual Fund of Schroder Plus Achievement Fund
     This Mutual Fund is suitable for novice Investors with a                 • Mutual Fund of Batavia Stock Fund
     conservative risk profile. Money Market Mutual Fund                      • Mutual Fund of Manulife Sharia Share Asia Pacific
     Products include:                                                             US Dollar
     • Mutual Fund of Material Liquid Fund                                    • Mutual Fund of Batavia Global ESG Sharia Equity
     • Mutual Fund of TRIM Kas 2                                              • Mutual Fund of Sucorinvest Equity Fund
     • Mutual Fund of Money Market Seruni II                                  • Mutual Fund of Mandiri FTSE Indonesia ESG – Class A
     • Mutual Fund of Mandiri Investa Money Market                       • Protected Mutual Funds
     • Mutual Fund of Sucorinvest Money Market Fund                           Protected mutual funds, also known as Capital Protected
     • Mutual Fund of Mandiri Money Market USD                                Fund (CPF), are a type of mutual fund that provides
     • Mutual Fund of Batavia Ultima Bond Fund                                protection for the initial investment value, if the unit
•    Fixed Income Mutual Funds                                                holder holds the mutual fund until the maturity date
     It is a type of mutual fund that invests at least 80% of its             through an investment portfolio management mechanism.
     assets in the form of debt securities or bonds. The goal                 Periodically protected mutual funds also share investment
     is to generate a stable rate of return. The risk is relatively           returns in the form of dividends. Protected Mutual Fund
     greater than money market mutual funds. Fixed Income                     products include:
     Mutual Fund Products include:                                            • Protected Mutual Fund of Sucorinvest Proteksi 32
     • Mutual Fund of Manulife Monthly Income II                              • Protected Mutual Fund of Sucorinvest Proteksi 42
     • Mutual Fund of Manulife USD Fixed Income                               • Protected Mutual Fund of Futura 26 Protected
     • Mutual Fund of Fixed Fund TRIM 2                                            Trimegah
     • Mutual Fund of Batavia Ultima Bond Fund                                • Protected Mutual Fund of Trimegah Protected by
     • Mutual Fund of Mandiri Main Fund Investment                                 Prima 30
     • Mutual Fund of Bahana Makara Prima                                     • Self Protected Mutual Fund of Series 215
•    Mixed mutual funds                                                       • Self Protected Mutual Fund of Series 218
     It is a type of mutual fund that allocates investment funds              • Self Protected Mutual Fund of Series 222
     in a varied portfolio. The investment instrument can be in               • Protected Mutual Fund of Sucorinvest Protection 44
     the form of stocks or combined with bonds. The goal is                   • Protected Mutual Fund of Trimegah Futura 28
     price and revenue growth. The risk of mixed mutual funds                 • Protected Mutual Fund by Trimegah Lestari 22
     is moderate with the potential for a relatively higher rate              • Protected Mutual Funds Insight Protected Protection
     of return compared to fixed income funds. Mixed Mutual                        55
     Fund products include:                                                   • Protected Mutual Funds Insight Protected Protection
     • Mutual Funds for Infrastructure Funds                                       58
     • Mutual Fund of Combination Fund Schroder                               • Protected Mutual Fund Prima Protected Trimegah 38
     • Mutual Fund of Manulife Mixed Fund II                          c. Retail Government Securities
     • Mutual Fund of TRIM Combination 2                                 Retail Government Securities (SBN Retail) are investment
     • Mutual Fund of Batavia USD Balanced Asia                          instruments in the form of government bonds issued by
•    Equity Mutual Funds                                                 the government of the Republic of Indonesia intended for
     It is a type of mutual fund that invests at least 80% of            individual investors of Indonesian citizenship in the primary
     its assets in the form of equity securities. The goal is to         market. The government, in this case as the issuer, guarantees
     grow the share or unit price in the long run. The risk is           the return of the principal amount at maturity plus a coupon
     relatively higher than money market mutual funds and                which will be paid periodically (According to Law No. 24 of
     fixed income mutual funds, but they have the potential              2002 concerning Government Bonds). Bank BTN is one of




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   the Government’s distribution partners in the distribution of             denominations and sold on the Secondary Market within
   Retail SBN.                                                               a certain period of time (according to the tenor of the
   • Obligasi Negara Ritel Indonesia (ORI)                                   Bond) with a fixed coupon. In this case, the government
        It is one of the Retail SBN instruments intended for                 will pay coupons periodically every 6 (six) months
        individual investors of Indonesian Citizens in the primary           (semester). PBS is intended for institutional and retail
        market. ORI has the characteristics of being tradable in             investors, both domestic and foreign.
        the secondary market between domestic investors and              • Fixed Rate USD (INDON)
        the coupon rate is fixed (fixed coupon).                             A series of Government Securities (SUN) or Bonds issued
   • Saving Bond Ritel (SBR)                                                 by the Government denominated in USD and sold on
        It is one of the Retail SBN instruments intended for                 the Secondary Market within a certain period (according
        individual investors of Indonesian Citizens in the primary           to the tenor of the Bonds) with a fixed coupon. The
        market. SBR has the characteristics of providing a                   government in this case will pay coupons regularly every
        floating coupon rate with a floor (floating with floor) and          6 months (semester). INDON is intended for institutional
        has an early redemption facility for investors. However,             and retail investors, both domestic and foreign.
        SBR cannot be traded (nontradable) in the secondary              • Fixed Rate USD (INDOIS)
        market.                                                              A series of Government Securities (SUN) sharia based
   • Sukuk Ritel (SR)                                                        by the Government denominated in USD and sold on
        It is one of the retail SBSN instruments issued based on             the Secondary Market within a certain period (according
        sharia principles and is intended for individual investors           to the tenor of the Bonds) with a fixed coupon. The
        who are Indonesian citizens. SR has characteristics                  government in this case will pay coupons regularly every
        that can be traded (tradable) in the secondary market                6 months (semester). INDOIS is intended for institutional
        between domestic investors and has a fixed rate of return            and retail investors, both domestic and foreign.
        (coupon).                                                     e. Foreign Exchange
   • Sukuk Tabungan (ST)                                                 Foreign exchange is a currency conversion service using
        It is one of the retail SBSN instruments issued based on         current exchange rates with trading coverage throughout
        sharia principles and is intended for individual investors       the world. Bank BTN forex services are available in USD,
        who are Indonesian citizens. ST has the characteristics of       JPY, GBP, AUD, HKD, SGD, EUR, MYR, SAR and CNY. The
        providing floating coupon rates with a floating floor and        foreign exchange target market is individual/institutional
        having early redemption facilities for investors. However,       customers who need foreign exchange in the form of
        ST cannot be traded (nontradable) in the secondary               savings, transactional transfers or payments abroad as
        market.                                                          well as foreign exchange trading needs. Foreign exchange
d. Secondary Market Government Securities                                services include Telegraphic Transfer (TT) Overbooking,
   Government Securities (SUN) issued by the Government                  Outgoing and Incoming transaction services as well as
   are sold on the Secondary Market and offer flexibility for            Bank Notes transaction services. Apart from that, structured
   investors, namely being able to carry out buying and selling          products are available including SWAP Depo, DCI (Dual
   activities at any time (there is no offering period). The             Currency Investment) Products and MLD (Market Linked
   government, in this case as the issuer, guarantees the return         Deposit) Products to increase investment options for Bank
   of the principal amount at maturity plus a coupon which will          BTN customers.
   be paid periodically (According to Law No. 24 of 2002
   concerning Government Bonds). Secondary Market SBN is              Commercial Banking
   intended for institutional and retail investors, both domestic
   and foreign.                                                       1. Commercial Loan Products
   • Fixed Rate IDR (FR)                                                 a. Housing Loans
        A series of Government Securities (SUN) or Bonds issued             • Working Capital Loans (KMK) BTN Construction
        by the Government denominated in Rupiah and sold on                    BTN Construction Loans or Yasa Griya Loans (KYG)
        the Secondary Market within a certain period (according                are Working Capital Loans provided by Banks
        to the tenor of the Bonds) with a fixed coupon. The                    to Developers in the form of legal entity business
        government in this case will pay coupons regularly every               entities, non-legal entity business entities for working
        6 months (semester). FR is intended for institutional and              capital to finance horizontal building (house,
        retail investors, both domestic and foreign.                           shophouse, office house, kiosk, etc.) and vertical/
   • Project Based SUKUK IDR (PBS)                                             high-rise buildings (flat, apartment, condotel,
        One of a series of Sharia Government Securities (SUN)                  office building, etc.) alongside their facilities and
        or Sharia Bonds issued by the Government in Rupiah                     infrastructure, as long as meeting the Bank’s credit
                                                                               feasibility assessment.




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    •   Land Ownership Loan (KPL) BTN                                          BTN Investment Loan is a credit facility provided
        BTN Land Ownership Loan is a loan facility provided                    by the Bank to business entities with legal entities
        by the Bank to business entities with legal entities for               and non-legal entities, in the framework of
        land acquisition for the construction of simple houses                 investment financing, whether new investment,
        whose construction uses the BTN/KYG Construction                       expansion, modernization or rehabilitation.
        Loan facility.                                                    -    Kredit Modal Kerja Kontraktor (KMK Contractor)
b. Non Housing Loans                                                           Contractor BTN Working Capital Loans are
   Bank BTN NonHousing Loans consist of MSME Loan                              Working Capital Loans provided by the Bank
   Products, other Commercial Loans, Linkage Programs                          to business entities in the form of legal entities,
   and Corporate Loans. MSME loans include KUR BTN,                            non-legal entity business entities that work
   KUMKM BTN and the Micro and Small Business Funding                          under a contract with project/business owners
   Program (PUMK). Other Commercial Loans include                              for working capital in completing work in
   Investment Loans, KMK and Contractor KMK. The Linkage                       accordance with the intended work contract.
   Program includes loans to Rural Loan Banks and Savings                 -    Syndication Loans
   and Loans Cooperatives. Meanwhile, Corporate Loans                          Syndicated Loan is one of the credit financing
   include Invesment Loans, Investments, Working Capital,                      systems (investment credit, working capital
   Working Capital for Contractors and Syndicates.                             credit, as well as guarantor) in which several
   • Micro, Small and Medium Enterprise Credit (MSME)                          banks jointly finance projects proposed by
        BTN                                                                    customers with the same terms and conditions.
        Credit for working capital and/or investment                  •   Refinancing
        financing for customers who have productive                       Refinancing is the provision of investment loans
        businesses with MSME criteria. Loans can be used                  to refinance the productive assets of the Debtor/
        to finance working capital and/or investment with a               Prospective Debtor which are already in progress
        maximum ceiling of up to IDR 5 billion.                           and are first financed from the Debtor/Prospective
   • Program Pendanaan Usaha Mikro dan Kecil (PUMK)                       Debtor’s own costs or financing from the Bank which
        Loans in which purpose is to finance working capital              has been repaid.
        for the smooth running of the fostered partners’              •   Term Loan Facility
        businesses.                                                       Term Loan Facility is a non-revolving loan facility
   • Kredit Usaha Rakyat (KUR) BTN                                        for medium-term or long-term financing of Capital
        Working capital and/or investment loans provided                  Expenditure and/or Operational Expenditure whose
        to debtors engaged in business sectors which                      repayment can be paid in installments according to
        according to their scale have the status of MSMEs                 the debtor’s financial ability.
        in productive business fields and eligible but not            •   Corporate Line Facility
        sufficient/have additional collateral.                            Corporate Line Facility is a form of approval for
   • BTN Linkage Loans                                                    the provision of funds in a certain maximum limit to
        BTN Linkage Loan is a loan facility provided by the               borrowers within a certain period of time based on
        Bank to business entities with legal entities, namely             the results of the Bank’s analysis and evaluation.
        Rural Banks (BPR) and Cooperatives to continue                •   Treasury Line Facility
        lending to the Small and Micro (productive) Business              Treasury Line Facility is a facility provided by
        sector and the consumer sector.                                   Banks to Non-Financial Institutions to cover Foreign
   • Corporate Loans                                                      Exchange Line transactions, Fixed Income Line and
        Credit Loan is a loan given to Debtors in the form                other types of facilities that are commonly performed
        of legal business entities (Perseron) in order to meet            by Banks.
        working capital needs and/or investment needs.                •   Supply Chain Financing (SCF)
        -    Kredit Modal Kerja (KMK) BTN                                 Supply of Financing is a portfolio of financing
             BTN Working Capital Loans are Working Capital                techniques and practices that support trading and
             Loans provided by the Bank to business entities              financial flows from the beginning to the end of a
             with legal entities and non-legal entity business            company’s business processes.
             entities in order to finance the company’s
             working capital needs.
        -    BTN Investment Loans




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      •   Trust Receipt                                            2. Commercial Saving Product
          Trust Receipt is a short-term trade (import) financing      a. BTN Institution Current Account
          system provided for customers to defer payment of              Types of deposits in Rupiah and Foreign Currency held
          obligations for redemption of L/C or Documentary               by Banks in which withdrawals can be made at any time
          Collection.                                                    by using Checks, Bilyet Giro, Payment Orders, transfers
      •   BTN Bank Guarantee (Guarantee)                                 and other withdrawal media.
          Banking services that can be provided to customers
          in the form of a guarantee against a condition that             Institutional Current Account customers consist of:
          must be fulfilled by the guarantee applicant.                   • Government agencies/state institutions and social
                                                                               organizations that are not companies.
          Guarantee products and services which include                   • All legal entities regulated in the Commercial Code
          Local Bank Guarantee, Standby Letter of Credit,                      or other laws and regulations.
          Demand Guarantee and Bank Support Certificate,                  • Limited Liability Company (PT), Foreign Investment
          namely:                                                              Limited Company (PTPMA), Firma (Fa), CV,
          -    Local Bank Guarantee is a payment guarantee                     Foundations, Institutions with Foreign Legal Entities,
               given by the Bank to the Obligee if the Principal               Political Parties, Special Campaign Fund Accounts
               defaults.                                                       (RKDK), Ormas/Non-Governmental Organizations
          -    SBLC (Standby Letter of Credit) is an                           (NGOs) and others.
               internationally valid guarantee, issued by the          b. Institutional Time Deposits
               Bank at the request of the applicant to guarantee          • Institutional Deposits
               compensation for losses to the beneficiary for                  Deposits of Third Party Funds to Banks in Rupiah and
               conditions of default by the applicant although                 Foreign Currency which can only be withdrawn at a
               it can also be used to guarantee payment for                    certain time according to the agreement between the
               achievements made by the beneficiary in                         customer and the bank concerned. Institutional Time
               accordance with the SBLC terms and conditions.                  Deposits can be issued with terms of 1, 2, 3, 4, 6,
          -    DG (Demand Guarantee) is an internationally                     12 and 24 months.
               valid guarantee, issued by the Bank/Guarantor              • Institutional On Call Deposits
               based on the applicant’s request to pay the                     Deposits of Third Party Funds to Banks in Rupiah and
               beneficiary the maximum amount as stated in                     Foreign Currency which can only be withdrawn at
               the DG in case of default by the applicant.                     a certain time according to the agreement between
          -    Bank Support Certificate (SKDB) is a statement of               the customer and the bank concerned. The period
               financial support issued by the Bank to customers               for placement of Institutional On Call Deposits is a
               for certain purposes.                                           minimum of 1 day and a maximum of 35 days or
      •   Domestic Documented Letter of Credit (SKBDN) or                      according to customer needs.
          Letter of Credit (L/C)
          Is every written promise based on the written request    Sharia Banking/Sharia Business Unit
          of the Applicant that binds the Issuing Bank to:
          -    Make payments to recipients or their orders or      Sharia Financing Products
               accept payments for money orders received by
               the Bank                                            The financing products from the Sharia Business Unit is divided
          -    Authorize another bank to make payments to the      into Consumer Financing and Commercial Financing. Details on
               recipient or his order or accept and pay money      the Sharia Business Financing Products are provided as follows:
               orders drawn by the recipient, or                   1. Consumer Financing
          -    Authorizes other banks to negotiate money                a. KPR BTN Subsidi iB
               orders drawn by the Beneficiary.                            A financing product from BTN Syariah for home
      •   Documentary Collection                                           purchases for the low income community. This facility has
          This is a non-L/C transaction service provided by                low margin, light and fixed installments throughout the
          Bank BTN to customers to collect payments based on               financing period with the FLPP, SSM, BP2BT and Tapera
          proof of delivery of goods.                                      Syariah schemes Using a “Murabahah” (sale and




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     purchase) contract and there are also SSM and BP2BT              j.   Pembiayaan Emasku BTN iB
     schemes that use the Musyarakah Mutanaqisah (MMQ)                     Financing facility for individuals under murabahah
     contract in the context of ownership of Landed Houses                 contract for the purchase of gold bullions with fixed
     and Flats which is a government program.                              installment throughout the tenure.
b.   KPR BTN Platinum iB
     A financing product for individual customers under           2. Commercial Financing
     murabahah (sale and purchase) contract, with fixed              a. BTN iB Construction Financing
     installments throughout the tenure for the ownership of            Financing facility to meet the customer’s funding needs
     house, shophouse, office house, flat, or apartment, both           based on a cooperation agreement between the Bank
     new and used.                                                      to run a certain cooperation business (shirkah) together
c.   Pembiayaan Properti BTN iB (KPR HITS)                              with the Customer who runs a productive business in
     Financing products that accommodate the needs of                   the form of housing project construction and is carried
     millennial generation customers who want sharia                    out in accordance with Sharia principles and with the
     mortgage products with flexible installments. Financing            obligation for the Customer to return the funds received
     Products using a contract “musharakah mutanaqisah                  the following compensation for the Bank according to the
     (ownership sharing) principle or lease to customers with           agreed time period and return schedule.
     flexible installment which can be used for financing            b. BTN iB Land Purchase Financing
     house ownership and other goods and refinancing.                   Financing facilities provided by the Bank to business
d.   KPR BTN Indent iB                                                  entities with legal entities for land acquisition and/or
     A financing product for the purchase of house,                     land management for the construction of simple houses
     shophouse, office house, flat/apartment by order for               of which construction uses the BTN iB Construction
     individual customers under isthisna (sale and purchase             Financing facility and is carried out in accordance with
     by order) contract, with monthly installments over a               sharia principles and with the obligation for the Customer
     period of time.                                                    to return the funds received along with the compensation
e.   House Building Financing iB                                        (profit sharing) for the Bank according to the agreed
     Financing intended for individual applicants with a                repayment period and schedule.
     “Murabahah” (buy and sell) contract with the aim of             c. BTN iB Working Capital Financing
     financing to build and or renovate a house, shophouse,             Financing facility to meet the customer’s funding needs
     or other buildings that can be categorized as a residence,         based on a cooperation agreement between the Bank
     on land already owned by the Applicant, either for his             to run a certain cooperation business (shirkah) together
     own use or for rent.                                               with the Customer who runs a productive business
f.   Pembiayaan Kendaraan Bermotor (PKB) BTN iB                         other than housing project development business and
     A financing product for individual customers under                 is carried out with an agreement based on Sharia
     murabahah (sale and purchase) contract for motor                   principles and with the obligation for the Customer to
     vehicle ownership for personal use.                                return the funds received along with compensation for
g.   Pembiayaan Tunai Emas (Tunas) BTN iB                               the Bank according to the agreed repayment period and
     A financing product to meet customers’ funding needs               schedule.
     under qardh (cash loan), rahn (pawn) dan ijarah (rent)          d. BTN iB Investment Financing
     principles under agreement and pledge.                             Financing facilities to meet the customer’s funding needs
h.   Pembiayaan Multijasa BTN iB                                        based on a cooperation agreement between the Bank
     A financing facility under Kafalah bil Ujrah contract for          to run a certain cooperative business together with
     financing various services such as: Tuition plan, wedding          the Customer who runs a productive business, for the
     plan, traveling plan, umrah/hajj plan, health plan                 purchase/procurement of capital goods and services
     and other services that do not conflict with the sharia            needed for business/investment activities and carried
     principles.                                                        out with a contract based on Sharia principles as well
i.   Pembiayaan Multimanfaat BTN iB                                     as the obligation for the Customer to return the funds
     Individual consumer financing facility under murabahah             received along with the compensation for the Bank (profit
     contract for purchasing legal and beneficial goods such            sharing or margin) according to the agreed time period
     as electronic devices, furniture, household appliances,            and return schedule.
     etc.                                                            e. BTN iB Financing with the IMBT Mechanism
                                                                        Provision of Funds for the procurement of Capital Goods
                                                                        or Refinancing Customer Assets with the principle of
                                                                        leasing between the owner of the IMBT object (Bank/
                                                                        Lessor) and the lessee (Customer/Lesse) ending with the




                                                                      PT Bank Tabungan Negara (Persero) Tbk                 109
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        option of transferring ownership of the IMBT object from       f. BTN Simpel iB Savings
        the Bank to the Customer through grants or buying and             Tabungan Rupiah for students issued by UUS Bank
        selling, whichever is agreed.                                     BTN and Banks in Indonesia with easy and simple
   f.   BTN iB Syndicated Financing                                       requirements and attractive features for education and
        Syndicated loan and/or club deal from more than one               financial inclusion aims to introduce a culture of saving
        bank to one customer whose amount of loan is too big              from an early age.
        to be covered by merely one banking/non-banking                g. BTN Emas iB Savings
        financial institution, whose contract options include             A savings product under mudharabah mutlaqah (profit
        mudharabah (profit sharing), musharakah (cooperation),            sharing) contract with convenience for the customers
        murabahah (sale and purchase), or ijarah (rent).                  in preparing funds for future purchase of gold or other
                                                                          needs..
Sharia Savings Products
                                                                   3. Sharia Time Deposits
1. Sharia Demand Deposits                                             a. Deposito BTN iB
   a. Giro BTN iB                                                        A time-based secure, comfortable and reliable savings
      A savings product under wadiah principle for the                   facility under Mudharabah Mutlaqah and Mudharabah
      customers’ financial needs for their business operations,          Muqayyadah (investment) contract. This product is
      provided along bonus and benefits.                                 available for individuals and agencies.
   b. Giro BTN Prima iB                                               b. Deposito On Call iB
      A savings product under Mudharabah Mutlaqah and                    A secure and reliable savings facility in shorter tenure
      Mudharabah Muqayyadah (investment) principle for                   under mudharabah mutlaqah (investment) contract. This
      investment where customers receive shared profit to                product is available for individuals and agencies.
      facilitate their business activities.
                                                                   Services and Others
2. Sharia Savings
   a. BTN Batara iB Savings                                        The Company’s banking services cover consumer cards, wealth
      A fund savings product under wadiah (entrust) contract       management, electronic channel and other banking services. The
      for daily banking transactions with various benefits and     services offered by consumer cards are in the form of debit cards
      whose administration fee does not reduce the principal.      and credit cards. Wealth Management through BTN Prioritas
   b. BTN Prima iB Savings                                         provides wealth management services for selected customers.
      A fund savings product under Mudharabah Mutlaqah             BTN Prioritas always presents the latest innovations through
      and Mudharabah Muqayyadah (investment) principle             product variations, the best benefits, privileges and special
      for investment where customers receive profitable and        services that focus on solutions to needs. BTN Prioritas also strives
      competitive returns and whose administration fee does        to increase customer comfort and satisfaction through various
      not reduce the principal.                                    fund, investment and protection product solutions according to
   c. BTN Hajj iB and Umroh iB Savings                             customer needs as well as Priority Service, Privilege and Loyalty
      A savings product to realize the dream for hajj and          Program services through a special loyalty platform, namely PLUS
      umrah pilgrimage under mudharabah (profit sharing)           by BTN Prioritas. Various fund, investment and protection product
      contract with profitable and competitive returns.            solutions such as:
   d. TabunganKu iB                                                • Fund Products : Savings and Deposits both in Rupiah and
      A savings product under wadiah (entrust) contract which          Foreign Currency.
      offers attractive bonus. This product is a collaboration     • Investment Products : Government Securities, Mutual Funds
      with other Indonesian banks to foster a saving culture           and Foreign Exchange (FOREX) services.
      and enhance people’s welfare.                                • Insurance Products : Bancassurance
   e. BTN Qurban iB Savings
      A savings product for celebrating the Feast of Sacrifice     Apart from that, BTN Prioritas customers will receive priority
      ceremony under mudharabah mutlaqah (profit sharing)          service from special staff, namely a dedicated and certified
      contract with profitable and competitive returns.            Priority Banking Manager (PBM), who will provide advice on
                                                                   financial management and growth exclusively with a choice of
                                                                   varied financial products.




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Electronic channel services consist of ATM, CRM, BTN Mobile,               exchanged via PLUS by BTN Prioritas, Airport Lounge,
Internet Banking, Virtual Account, EDC, QRIS, Virtual Branch, BTN          Airport Handling, Domestic and International Airport
Smart Residence, BTN Properti and BTN Open API products. The               Transfers, Overseas Education Consultations, and Tax
services offered by the Corporation are in the form of BTN Bank            Consultations.
Guarantee (Local Bank Guarantee, SBLC, Demand Guarantee                • Product Privilege in the form of a BTN Visa Platinum
and SKDB) and SKBDN or L/C. Meanwhile, other banking                       Priority Debit Card with a special design that can be used
services and services include trading services, administration             at various selected merchants to get special offers, Safe
services, services and other services.                                     Deposit Box (SDB), BTN Mobile, Special Fund Placement
                                                                           and Member Get Member Program, Home Ownership
Conventional Banking                                                       Credit (KPR) specifically for Priority BTN Customers.
                                                                    b. PLUS by BTN Prioritas
CONSUMER CARD                                                          Understanding customer needs and uniqueness is an
a. Kartu Suka-suka BTN                                                 important pillar for Bank BTN to provide and improve the
   Debit card with customizable design according to its holder’s       best banking services through superior facilities, products
   request. The card can be used in EDC transactions and               and services. Departing from this vision, BTN Prioritas
   online transactions with online merchants worldwide.                presents PLUS (Platform Loyalty User) services. PLUS by
b. BTN Visa Contactless Debit Card                                     BTN Prioritas is a website-based service with a membership
   Debit card that can make transactions using contactless             concept presented specifically for BTN Prioritas customers.
   technology which allows customers to make transactions              The existence of PLUS by BTN Prioritas is an effort to translate
   by simply holding the card close to the EDC Contactless             the Defining Your Priority customer value proposition so that
   machine without having to use a PIN.                                the benefits can be truly enjoyed by customers.
c. Debit BTN Online (Visa dan GPN)
   Using this product, customers can do online transactions             PLUS by BTN Prioritas can be accessed via www.
   (e-Commerce) easily using BTN debit card or GPN.                     definingyourpriority.com and offers various benefits for BTN
d. Kartu Blink BTN                                                      Prioritas customers according to the customer’s membership
   E-money based BTN card applicable for transactions at                level based on the customer’s total managed funds (Assets
   thousands of e-money acceptances, such as: Toll Roads,               Under Management/AUM) placed in BTN Prioritas.
   TransJakarta BRT, KRL Commuter Line, Parking Lots and
   others.                                                              The following are the membership levels for BTN Prioritas
                                                                        customers:
WEALTH MANAGEMENT                                                       • Gold : total managed funds from IDR 500 million to <IDR
a. BTN Priority Service                                                     2 billion
   BTN Priority service is an exclusive service from State              • Platinum : total managed funds from IDR 2 billion to <IDR
   Savings Bank specifically for special customers of Bank BTN.             5 billion
   Through BTN Prioritas’ Customer Value Proposition (CVP),             • Titanium : total managed funds from IDR 5 billion to <IDR
   namely Defining Your Priority, BTN Prioritas services are here           10 billion
   to provide financial solutions and services that are relevant,       • Prime : total managed funds start from IDR 10 billion
   sustainable and long-lasting for every special individual, BTN
   Prioritas’ loyal customers. Supported by professional and            Through PLUS by BTN Prioritas, customers can exchange
   certified Priority Banking Managers, BTN Prioritas presents          benefits and privileges on 6 (six) main features, namely:
   the latest innovations for customer needs and convenience            • Special Offers: Cashback for creating a Single Investor
   through:                                                                 ID (SID), Fund Placement with Special Benefits.
   • Product solutions that vary, including Fund Products               • Loyalty Reward Options: as a form of our appreciation
        (BTN Batara Savings, BTN Investa Savings, Felas                     for loyal customers, we present a variety of gift options
        Savings, BTN Retail Rupiah Deposits, BTN Retail Forex               ranging from Gadgets and Electronics, Gadget
        Deposits), Investment Products (State Securities, Mutual            Accessories, Headphones and Audio, Watches,
        Funds, Foreign currency exchange transactions) and                  Household Electronics, Data Packages, E-Vouchers,
        Bancassurance Products.                                             Household Appliances, Games and Hobby, Health and
   • Service Privilege in the form of Dedicated Priority                    Beauty to Hampers and Cake.
        Banking Manager, E-Consolidated Statement, E-Channel            • Banking Privilege: Safe Deposit Box, Free Mobile
        Services, Welcoming Pack, Meeting Room, Calendar                    Banking Transaction Fees, Tax Consultation, Overseas
        Event, Majalah BTN Prioritas GoodLiving, BTN Prioritas              Education Consultation, Meeting Room Reservation.
        Concierge Service, Exclusive Medical Check Up,                  • BTN Priority Concierge Service: Airport Lounge, Airport
        Special Day Prizes and Loyalty Rewards which can be                 Handling, Domestic and International Airport Transfers,
                                                                            Medical Check Up.




                                                                        PT Bank Tabungan Negara (Persero) Tbk                     111
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                         Company
                         Profile




    •   Membership Coupon: for those of you who regularly            INTERNET BANKING
        enjoy sports hobbies such as golf and membership to          A banking service for individuals to obtain financial information
        selected hotels and restaurants.                             and facilitate self-managed banking transactions through the
    •   Special Day Gifts: to complement your special day,           internet. This service can be accessed at https:// internetbanking.
        available in a variety of gifts ranging from Gadgets         btn.co.id through registration at ATM BTN machine or by
        and Electronics, Gadget Accessories, Headphones              contacting Customer Service at Branch Offices. The mobile data
        and Audio, Watches, Household Electronics, Data              tariff depends on each provider’s policy.
        Packages, E-Vouchers, Household Appliances, Games
        and Hobbies, Health and Beauty to Hampers and Cake.          VIRTUAL ACCOUNT
                                                                     ID number provision for customers of a company (end user)
One of the developments at PLUS by BTN Prioritas is that BTN         which collaborates with the Company. This service is available
Prioritas is the first bank to provide airport lounge services       for individual and non-individual customers as fund acceptance
without the need to use a Debit Card but only by showing a           identification.
booking code or scanning a QR. With this method, BTN Prioritas
customers can enter the airport lounge in less than 60 seconds.      ELECTRONIC DATA CAPTURE (EDC)
This feature is currently the first in the market in the Priority    The service is like a mini ATM machine which functions as a
Banking segmentation.                                                means of providing transactions and means of payment which
                                                                     can be used by inserting a card or swiping an ATM card (Debit
PLUS by BTN Prioritas also succeeded in winning the international    or Credit Card) in a bank or between banks and is equipped with
award entitled “Wealth Management Platform of The Year” at the       other payment facilities which are connected in real time online.
2023 Retail Banking Awards organized by Asian Banking and
Finance, a prestigious business and financial magazine based in      BTN CASH MANAGEMENT
Singapore. The PLUS service from BTN Prioritas won this award        A special service for agencies for self-managed banking
because it was deemed to meet the assessment criteria, namely        transactions through the internet. This service can be accessed
uniqueness & innovation, effectiveness & impact and dynamism.        at https://cashmanagement.btn.co.id through registration at the
                                                                     nearest branch office. The mobile data tariff depends on each
From January to December 31 2023, there were 27,088                  provider’s policy.
exchange transactions carried out by customers at PLUS by BTN
Prioritas. Meanwhile, the number of customers making exchanges       BRANCHLESS BANKING
has reached 47% of the total qualified BTN Prioritas customers.      Banking products and services without offices through cooperation
                                                                     with Bank agents and Post Offices acting for and on behalf of
ATM                                                                  the Bank in order to expand the range and ease of banking
The 24 hour online Automatic Teller Machines (ATMs) are              transaction services for the community and are supported by
available for cash withdrawals in IDR50,000 and IDR100,000           information technology network facilities.
denominations at all Branch Offices and premium locations such
as ATM Galleries at malls, shopping centers, office buildings,       QUICK RESPONSE CODE INDONESIAN STANDARD (QRIS)
markets and residences to provide convenient transactions.           Standardize payments using the QR Code method from Bank
                                                                     Indonesia so that the transaction process using QR Codes
CASH RECYCLING MACHINE (CRM)                                         becomes easier, faster and more secure.
ATM machine service that can accept cash deposits and
cash withdrawals with denominations of IDR 50,000 and IDR            VIRTUAL BRANCH
100,000 and can serve other banking transactions quickly and         BTN Virtual Branch brings new conveniences for BTN Bank
in real time.                                                        customers. Customers do not need to linger at the Bank BTN
                                                                     Outlet to make transactions at the Teller and Customer Service,
BTN MOBILE                                                           just fill in the e-form online anywhere and from anywhere before
BTN Mobile functions as a banking solution with a superapp           making transactions at the Bank BTN Outlet.
concept that is practical, safe and comfortable. By using gadgets,
customers can easily carry out various banking services in real      BTN SMART RESIDENCE
time anywhere and anytime.                                           BTN Smart Residence is a platform owned by Bank BTN which is
                                                                     used as a liaison between residents and managers in the process
                                                                     of paying bills, fees, exchanging information and even making
                                                                     complaints.




112         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                           2023 Annual Report




BTN PROPERTY                                                             •  Edu Payment is a service for educational institutions
A special property portal-based service that makes it easier                where payments for tuition and other educational fees
for prospective debtors to search for project listings that have            are received online and real-time.
collaborated with Bank BTN, installment simulations, online KPR/        • Bill Payment (payment of telephone bills, electricity,
KPA applications, 24-hour online live chat, and other features.             water, gas, etc.).
BTN Properti also completes its features with 4D Tour Service               -    Tax payment
technology which allows prospective debtors to get a real picture           -    Pertamina products purchase payment
of the selected property unit.                                              -    BPJS Ketenagakerjaan contribution payment
                                                                            -    BPJS Kesehatan contribution payment
BTN OPEN API                                                                -    Retirement fund (Taspen and ASABRI) payment
API or Application Programming Interface, is a link between                 -    Hospital billing payment
one application and another application. This technology allows             -    Operational Bank I and II
partner customers to make transfers using their own application      d. Payroll Service BTN
because the application is connected to the BTN system via API.         A service provided for companies/institutions for salary
                                                                        payment management and other financial needs.
SERVICES AND OTHER BANKING SERVICES                                  e. Spekta Point
In addition to distributing loans and collecting third party fund,      BTN Spekta Point is a loyalty program given to Bank BTN
the Company also provides the customers with other services to          customers in the form of points that can be exchanged or
increase fee-based income, such as: Domestic and international          redeemed for various kinds of vouchers, direct prizes and
money remittance, money changer, safe deposit box, utility              grand prizes at the end of the period.
bill payment (telephone, electricity and water), internet and TV
subscription payment, flight and train ticket booking and cell       Sharia Banking/Sharia Business Unit
phone top up. As a total banking solution provider to agency
customers, the Company also provides the following services:         1. Sharia BTN Visa Debit Card
a. Virtual Account BTN                                                  This card provides ease for customers through an ATM,
     A service for Giro BTN Lembaga (Demand Deposit for                 such as cash withdrawal and transfer. The transaction may
     Agencies) customers in the form of virtual account that can        be performed in all the ATM Bank BTN, Link, ATM Bersama
     be used by customers/partners of the agency to make billing        (Joint ATM), Prima (Prime), Visa and Plus. The transaction
     payment using any bank’s card. The agency can monitor the          may be in the form of shopping at a store displaying theVisa
     payments received from its customers online and real-time.         logo, both in country and abroad.
b. Transfer Management                                               2. Money Transfer
     Transfer Management is a bank service for customers to help        Real-time money transfer facility to BTN and BTN Syariah
     customers make fund transfers online, both Inhouse Transfers       accounts as well as money transfer to other banks using SKN,
     (between accounts), Domestic transfers (LLG/Clearing               RTGS, Link, ATM Bersama and Prima facilities.
     and RTGS), and International Fund Transfers (transfers to       3. BTN Cash Management
     other banks both within and outside the country in foreign         An online service using web browser that helps customers
     currency). Transfers can be made in single currency (the           managing their banking activities independently, effectively
     currency code sent is the same as the currency code received)      and efficiently.
     and multi-currency (the currency code sent is not the same as   4. Payment Point BTN iB
     the currency code received).                                       A facility for customers for easier payment of routine and
c. Payment Management                                                   fixed bills such as tuition payment.
     Payment Management is a collaboration between the Bank          5. Payroll BTN iB
     and the customers to help customers manage payments and            A facility for companies, agencies, or individuals for
     billings, such as;                                                 managing the payments of salary, holiday allowance, bonus
     • Edu Payment/SPP Online BTN                                       and other routine financial needs for their employees.
                                                                     6. Hajj Travel Expenses Payment
                                                                        A facility offering certainty and convenience to secure hajj
                                                                        pilgrimage quota through the Integrated Hajj Computerization
                                                                        and Information System (Siskohat).




                                                                         PT Bank Tabungan Negara (Persero) Tbk                 113
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                       Company
                       Profile




7. SPP Online BTN iB
    A facility for Universities/Schools in providing delivery channel that
    receives tuition payments online and real-time.
8. BTN iB Operational Development Program
    A program from the Bank to agency customers in the form of
    funds, goods and other facilities to support the customers’
    operations under provisions agreed upon by both parties
    and in compliance with the prudential and Good Corporate
    Governance (GCG) principles.
9. Guarantee Bank BTN iB
    Bank guarantee for the payment of a sum of money to its
    receiver for certain transactions/ projects to be run by
    the customer under kafalah (guarantee) contract.
10. Safe Deposit Box BTN iB
    Custom-designed and custom-sized storage facility
    with a security system to keep valuables and
    important documents away from fire, robbery and
    other risks. This facility is under ijarah (rent) contract.
11. Mobile Banking
    Banking application for BTN Syariah customers to facilitate purchase
    transactions, payments, transfers and access account information
    from mobile devices.
12. Virtual Account
    Services that provide payment convenience by providing a
    payment identification number.




114        PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                       2023 Annual Report




Association
Membership

The importance of association’s role for a company encourages the Company to actively participate in the membership of organizations
or associations, especially in Indonesia. The Company joins various associations related to the business line in the banking industry,
including its status as a state-owned enterprise. By joining this association, the Company is able to share issues and policies regarding
the banking industry, including its impact and opportunities for banking in the short, medium and long term. In 2023, the Company
joined the following associations:


                                 Association Name                                                      Position in association
 NATIONAL
 Ikatan Bankir Indonesia (IBI)                                                     Head of Regional Division and Member of Regional Division
                                                                                   Treasurer and Member of the Development of Banking Economic
 Perhimpunan Bank-Bank Umum Nasional (PERBANAS)
                                                                                   Studies
 Asosiasi Emiten Indonesia                                                         Member
 Asosiasi Sistem Pembayaran Indonesia (ASPI)                                       Member
 Asosiasi SWIFT Indonesia (ASWIFTINDO                                              Member
 Asosiasi Wali Amanat Indonesia                                                    Member
 Forum Hukum BUMN                                                                  Member
 Forum Human Capital Indonesia BUMN                                                Member
 Forum Humas BUMN                                                                  Member
 Forum Komunikasi Direktur Kepatuhan Perbankan (FKDKP)                             Member
 Forum Komunikasi Direktur Operasional                                             Member
 Himpunan Bank-Bank Milik Negara (HIMBARA                                          Member
 Ikatan Auditor Intern Bank                                                        Member
 Konsorsium Data Kerugian Eksternal (KDKE)                                         Member
 Lembaga Alternatif Penyelesaian Sengketa Perbankan Indonesia (LAPSPI)             Member
 Perhimpunan Audit Internal Indonesia                                              Member
 Perhimpunan Pedagang Surat Utang Negara (HIMDASUN)                                Member
 SRIKANDI BUMN                                                                     Member
 INTERNATIONAL
 Association Cambiste Internationale (ACI) - Financial Markets Association (FMA)   General Treasurer
 World Saving Bank Institution (WSBI)                                              Asian Member - Pasific Regional Group
 The Institute of Internal Auditor (IIA)-lndonesia Chapter                         Member
 United Nations Environment Programme Finance Initiative (UNEP FI)                 Member




                                                                                   PT Bank Tabungan Negara (Persero) Tbk                       115
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                               Company
                               Profile




Operational
Area

Table of Office Network for the last 5 Years

                Office Type                       2023         2022             2021       2020          2019

 Regional Office                                       6            6              6            6             6

 Branch Office                                       81            80             79           78           78

 Supporting Branch Office                          541           537             543         314           326

 Cash Office                                            -             -            -         247           358

 Payment Point                                          -             -            -           56           52

 Functional Office                                     3            3            58*             -             -

 Services Office equivalent to Sub-
                                                        -           2             2             2             3
 Branch Office

 Mobile Cash Office                                     -            -           51            23           23

 Total Conventional Office Network                  631          628             739         726           846

 Sharia Branch Office                                34            30            29            25           25

 Sharia Supporting Branch Office                     75            69            61            59           53

 Sharia Cash Office                                     -           5             7             7             7

 Sharia Payment Point                                   -           6            12            12           12

 Mobile Cash Office                                     -            -             -             -             -

 Total Sharia Office Network                        109          110             109         103             99

*) Looking at the OJK Regulation 12/POJK.03/2021 of July 30, 2021 regarding General Banks, There is simplification
   of network logging to OJK regulator which is Bank Office that is located under Branch Office only by Assistant and
   functional Office, so there is cash Office State Equalization into Cash Office become Branch Office and Payment
   Point become functional Office.




                                                               Regional Office I                       Regional Office II      Regional Office III
                                                                     (West Java)                      (DKI Jakarta & Banten)     (East Java, Bali &
                                                                                                                                  Nusa Tenggara)


 Regional Office                                                           1                                        1                    1

 Branch Office                                                            15                                       13                   16

 Supporting Branch Office                                                 125                                      130                  83

 Functional Office                                                          -                                       -                    -

 Sharia Branch Office                                                      7                                        4                    4

 Sharia Supporting Branch Office                                          14                                       11                   13

 Sharia Cash Office                                                         -                                       -                    -

 Payment Point Syariah                                                      -                                       -                    -

 Outlet & Lounge BTN Prioritas                                             9                                       17                    8

 ATM & CRM                                                                523                                      477                 340


116             PT Bank Tabungan Negara (Persero) Tbk
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                                                                        2023 Annual Report




                                  Regional Office IV      Regional Office V             Regional Office VI
                                      (Sumatera)          (Kalimantan, Sulawesi,         (Central Java & DIY)
                                                             Maluku, Papua)


Regional Office                           1                        1                              1

Branch Office                            11                        18                             8

Supporting Branch Office                 76                        71                            56

Functional Office                         1                         -                             2

Sharia Branch Office                      9                        6                              4

Sharia Supporting Branch Office          18                        5                             14

Sharia Cash Office                        -                         -                             -

Payment Point Syariah                     -                         -                             -

Outlet & Lounge BTN Prioritas             8                        10                             5

ATM & CRM                               304                       292                           210


                                                       PT Bank Tabungan Negara (Persero) Tbk                117
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                                         Company
                                         Profile




         Structure
         Organization
                                                                                                                                                           General Meeting of
                                                                                                                                                             Shareholders




                                                                                                                                                           President Director
                                                                                                                                                         Nixon L. P. Napitupulu

  Dewan
   Sharia
Supervisory
Pengawas                                                                                                                                                Vice President Director
  Syariah
   Board                                                                                                                                                Oni Febriarto Rahardjo




                                                  Director of                                                                               Director of Assets
                                                                                Director of                                                                            Director of IT &
                  Director of Consumer           Distribution &                                                                               Management
                                                                          Institutional Banking                                                                            Digital
                    Hirwandi Gafar                  Funding                                                                                  Elisabeth Novie
                                                                            Hakim Putratama                                                                            Andi Nirwoto
                                                     Jasmin                                                                                      Riswanti



                                                                                                    SEVP
                                                                                              Wholesale Banking
                                                                                                Benny Yoslim



                                                    Wealth
                         SME Banking                                     Institutional             Corporate                Marketing           Commercial Asset
                                                 Management                                                                                                              Digital Banking
                        Roganda S.M.                                       Funding                  Banking               Communication           Management
                                              Frengky Rosadrian                                                                                                          Tan Jacky Chen
                           Siahaan                                     Erwinta Siswadi         Ricky RS. Pattinggi      Farida Andriani W        Ari Kurniaman
                                                Perangin-angin



                       Non subsidized                                 Financial Institution                                                         Consumer                IT Strategic
                                                Retail Funding                                    Commercial
                         Mortgage                                      & Capital Market                                                        Collection, Recovery         Planning &
                                              Frengky Rosadrian                                    Banking
                       Mochamad Yut                                     Hasta Nugraha                                                            & Asset Sales 1           Development
                                              Perangin-angin (Plt)                                 Sri Astuti
                           Penta                                            Utomo                                                              Erwin Dwi Kusuma          Joko Christianto



                                                                          Wholesale                                                                 Consumer
                         Subsidized            Service Quality &
                                                                         Transaction                                                           Collection, Recovery       IT Operations
                      Mortgage Lending            Distribution
                                                                       Teddy Yunirman                                                            & Asset Sales 2        Danny Sutanto (Pj)
                       Budi Permana             Ferry Sipahutar
                                                                           Danas*                                                               Nurwidi Purboyo



                                                                                                                                                  Procurement
                                                                                                                                                  & Fixed Asset         Data Management
                      Personal Banking
                                                Regional Offices                                                                                  Management                & Analytics
                     Nurkholis Wahyudi
                                                                                                                                                  Wahyudi Joko          Indra Hidayatullah
                                                                                                                                                     Santoso

                                             • Branch Office
                                             • Priority Banking

                       Sharia Banking                                                                                                                                      IT Security
                        Abdul Firman                                                                                                                                     Budi Hariyanto




                    • Sharia
                      Branch Office

                                                                     Asset & Liability                  IT Steering             Risk Management                  Human Capital
                                                                        Commitee                        Committee                   Committee                      Committee




                      Committee                 Board                Business                 Support                 Shared Service

                      Command Line                      Coodination Line

              *) Resign from office as of December 20, 2023




         118              PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                        2023 Annual Report




In line with the business transformation that has been carried out by the Company, the Board of Directors has made adjustments to the organizational structure
so that the process of executing business and operational initiatives can run effectively through Commissioner’s Approval Letter No. 131/KOM/BTN/XI/2023
concerning Approval of Changes to the Organizational Structure of Bank BTN Head Office dated November 01, 2023. The following is the Company’s
Organizational Structure as of 31, December 2023.




                                                                                                                                            Board of Commissioners




                                                                                            Director of Human
                                                               Director of Risk
                                 Director of Finance                                       Capital, Compliance
                                                                Management
                                 Nofry Rony Poetra                                                & Legal
                                                               Setiyo Wibowo
                                                                                               Eko Waluyo



            SEVP                                                                                                SEVP
         Operations                                                                                       Compliance & Legal                                       Audit Committee

      Alex Sofjan Noor                                                                                            -
                                                                                                                                                                    Remuneration
                                                                                                                                                                    & Nomination
                                                                                                                                                                     Committee
        Credit Operation
                                      Treasury                                         Human Capital              Legal                   Internal Audit
         I Gusti Agung                                     Retail Credit Risk
                                  Sindhu Rahadian                                         Strategy              Wilson Lie                Hendratno Tri
       Komang Tri Martha                                    Beki Kanuwa                                                                                            Risk Monitoring
                                       Ardita                                          Aldo Bimantoro          Simatupang                    Wibowo
               W                                                                                                                                                      Committee



                                                                                                              Compliance &
          Operation &             Corporate Strategy          Whosale                  Human Capital                                      Corporate
                                                                                                               Governance
        Business Support             & Planning              Credit Risk                Management                                         Secretary
                                                                                                              R. Wahyu B.
        Adee Indriana D             Kusumarjono           Henri Ari Wibawa               Rahmayati                                      Ramon Armando
                                                                                                               Witjaksono



                                                                                          Learning
                                      Finance &              Enterprise Risk                                Policy & Procedure
         Customer Care                                                                  Management
                                      Accounting              Management                                         L. Esti Dwi
       Eko Hapsoro Susilo                                                                Ade Surya
                                    Fatoni Hudhori           Wilson Arafat                                        Retnosari
                                                                                          Lesmana



                                                            Transformation            Human Capital
                                  Investor Relations
                                                             & Partnership           Business Partner
                                     & Research
                                                             Management            Aloysius Wilhelmus
                                   Winang Budoyo
                                                           Wilson Arafat (Plt)      Junior Bakowatun




      Credit Policy                    Credit                       Business                    Transformation
                                                                                                                             ESG Committee
       Committee                     Committee                     Committee                  Steering Committee




Members of Committees under the Board of Commissioners as of December 31, 2023              3.   Risk Monitoring Committee: Armand B. Arief (Chairman concurrently member),
are as follows:                                                                                  Herry Trisaputra Zuna, Himawan Arief Sugoto, Ignace Widiatmoko, and Pamuji
1. Audit Committee: Iqbal Latanro (Chairman concurrently member), Sentot A.                      Gesang Raharjo
     Sentausa, Andin Hadiyanto, Endang A. Suprijatna, and Peter Eko Budi Darwito
2. Remuneration and Nomination Committee: Chandra M. Hamzah (Chairman                       The names of Committees under the Board of Directors can be found in the Corporate
     concurrently member), Iqbal Latanro, Armand B. Arief, Sentot A. Sentausa, Andin        Governance Chapter
     Hadiyanto, Herry Trisaputra Zuna, Himawan Arief Sugoto, Mohamad Yusuf
     Permana, Moch Amin Nurdin, and Rahmayati


                                                                                                 PT Bank Tabungan Negara (Persero) Tbk                                 119
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                  Company
                  Profile




Board of Directors
Profile


                                                            NIXON L. P NAPITUPULU
                                                            President Director




                                                         Indonesian Citizen, 54 years old as of December 2023,
                                                         domiciled in South Jakarta.



       Educational Background
       Bachelor of Economics, University of North Sumatra, Medan (1994).

       Certification
       • Risk Management Level 5 by BSMR (Refreshment 2022).
       • Treasury Dealer Level Advance by LSPP (2023).
       Work Experience
       • President Director of Bank BTN (March 2023 – present).
       • Vice President Director of Bank BTN (March 2021 – March 2023).
       • Plt. President Director of Bank BTN (December 2020-March 2021).
       • Director of Finance, Planning and Treasury of Bank BTN (November 2019-March 2021).
       • Director of Finance, Treasury and Strategy at Bank BTN (August 2019 – November 2019).
       • Director of Collection and Asset Management concurrently Acting. Director of Finance, Treasury and Strategy at Bank BTN (May 2019
         – August 2019).
       • Director of Collection and Asset Management Bank BTN (March 2018 – May 2019).
       • Director of Collection, Asset Management and Legal at Bank BTN (2017-May 2019). (December 2017 – March 2018).
       • Director of Bank BTN (March 2017 – December 2017).
       • President Director of PT Bank Mandiri Taspen Pos (2015- March 2017).
       • Head of PT Bank Mandiri (Persero) Tbk Joint Venture Bank Transition Team (2015).
       • Head of Priority Project Bank Joint Venture PT Bank Mandiri (Persero) Tbk (2014-2015).
       • Group Head Corporate Secretary Group PT Bank Mandiri (Persero) Tbk (2013-2014).

       Legal Basis of Appointment
       Served as Director of the Company for the first time since March 17 2017 through the decision of the Company’s Annual General Meeting
       of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on July 25 2017. Served as Deputy President
       Director since March 10 2021 through a meeting decision The Company’s Annual General Meeting of Shareholders (AGMS) and was
       declared effective by the Financial Services Authority (OJK) on May 19, 2021 and was entrusted to serve again for the 2nd term as Deputy
       President Director of the Company based on the resolutions of the Company’s Annual General Meeting of Shareholders (AGMS) in March
       02, 2022. Then served as President Director of the Company since March 16 2023 through the Resolution of the Company’s Annual General
       Meeting of Shareholders (AGMS) with the remaining term of office continuing in accordance with the appointment based on the Resolution
       of the 2021 Fiscal Year AGMS dated March 2 2022 and declared effective by the Financial Services Authority (OJK) dated June 7, 2023.
       Period of Office
       • March 17, 2017 – March 2, 2022, The First Term
       • March 2, 2022 – GMS of 2027, The Second Term

       Concurrent Position
       • Chairman concurrently Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Information Technology Steering Committee
       • Chairman concurrently Permanent Member of the Bank BTN Risk Management Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of the BTN Bank Credit or Financing Policy Committee
       • Permanent Member of RKK Committee A Risk Function of Bank BTN
       • Chairman concurrently Permanent Member of the Bank BTN Business Committee
       • Chairman concurrently Permanent Member of the Bank BTN ESG Committee
       The period of service as a Committee follows the Period of Service as Main Director

       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.

       BTN Share Ownership
       As of December 31, 2023, owned 4,250,500 shares/0.0302862%


120   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                           2023 Annual Report




                                                       ONI FEBRIARTO RAHARDJO
                                                       Vice President Director




                                                   Indonesian Citizen, 52 years old as of December 2023,
                                                   domiciled in South Tangerang.



Educational Background
• Bachelor (S1) in Engineering, Diponegoro University, Semarang (1994).
• Master (S2) Management, PPM College of Management, Jakarta (1997).


Certification
• Level 5 Risk Management by LSPP (Refreshment 2023).



Work Experience
• Vice President Director of Bank BTN (March 2023 – present).
• Vice President Director of Perum Perumnas (May 2020 – March 2023).
• Plt. President Director of Bank BTN (August 2019 - November 2019).
• Director of Commercial Banking at Bank BTN (March 2015 - August 2019).


Legal Basis of Appointment
Served as Director of the Company for the first time since 24 March 2015 through the decision of the Company’s Annual General Meeting
of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on 19 May 2015. Subsequently served
as Deputy President Director of the Company since 16 March 2023 through Decision of the Company’s Annual General Meeting of
Shareholders (AGMS) and declared effective by the Financial Services Authority (OJK) on 07 June 2023.


Period of Office
• March 24, 2015 – November 27, 2019, First Period
• March 16, 2023 – Annual GMS 2028, Second Period.


Concurrent Position
• Permanent Member of the Bank BTN Assets and Liabilities Committee
• Permanent Member of the Bank BTN Information Technology Steering Committee
• Permanent Member of the Human Capital Committee of Bank BTN
• Permanent Member of the BTN Bank Credit or Financing Policy Committee
• Permanent Member of RKK Committee A Bank BTN Business Functions
• Permanent Member of the ESG Committee of Bank BTN
The period of service as a Committee follows the Period of Service as Vice President Director.


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, owned 308,000 shares/0.0021946%




                                                                     PT Bank Tabungan Negara (Persero) Tbk                     121
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                  Company
                  Profile




                                                             HIRWANDI GAFAR
                                                             Director of Consumer




                                                         Indonesian Citizen, 55 years old as of December 2023,
                                                         domiciled in West Jakarta .




       Educational Background
       Bachelor of Civil Engineering, Bandung Institute of Technology (1992).


       Certification
       • Risk Management Level 5 by LSPP (Refreshment 2022).
       • International Risk Management Refreshment & Wealth Management Certification Program by MMUGM and IBI (2022).
       • Sharia Banking Basic Training/PDPS by PEBS (2020).


       Work experience
       • Director of Consumer Bank BTN (Maret 2022 – present).
       • Director of Sharia Business Unit Bank BTN (2020 – present)
       • Director of Consumer and Commercial Lending, Bank BTN (2019 - Maret 2022).
       • Commercial Lending Division Head Bank BTN (2019).
       • Subsidized Mortgage Lending Division Head Bank BTN (2019).


       Legal Basis of Appointment
       Served as Director of the Company for the first time since November 27, 2019 through the decision of the Company’s Extraordinary
       General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on August 28, 2020.


       Period of Office
       November 27, 2019 - GMS of 2024, The First Term.


       Concurrent Position
       • Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Risk Management Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of the BTN Bank Credit or Financing Policy Committee
       • Permanent Member of RKK Committee A Bank BTN Business Functions
       • Permanent Member of the Bank BTN Business Committee
       The period of service as a Committee follows the Period of Service as Director of Consumer.


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, owned 1,763,314 shares/0.0125642%




122   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




                                                      NOFRY RONY POETRA
                                                      Director of Finance




                                                  Indonesian Citizen, 55 years old as of December 2023,
                                                  domiciled in East Jakarta.




Educational Background
• Bachelor of Economics, Pancasila University, Jakarta (1991)
• Master of Economics, The George Washington University, Washington DC, USA (1999)


Certification
• Treasury Dealer Level Advance (ACI/LSPP) (Refreshment 2021).
• Banking Risk Management Level 5 by LSPP (Refreshment 2023).
• Certified Wealth Manager (CWMA) (2006).


Work Experience
• Director of Finance Bank BTN (March 2022 – present).
• Director of Finance, Planning and Treasury, Bank BTN (2021- March 2022).
• Head of Treasury Division, Bank BTN (2015 - 2021).
• Acting Regional Head, Regional Office I, Bank BTN (2015).
• Treasury Division Head, Bank BTN (2014)).


Legal Basis of Appointment
Served as Director of the Company for the first time since March 10, 2021 through the decision of the Company’s Annual General Meeting
of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on August 9, 2021.


Period of Office
March 10, 2021 – GMS of 2026, The First Term.


Concurrent Position
• Permanent Member of the Bank BTN Assets and Liabilities Committee
• Permanent Member of the Bank BTN Information Technology Steering Committee
• Permanent Member of the Bank BTN Risk Management Committee
• Permanent Member of the Human Capital Committee of Bank BTN
• Permanent Member of the BTN Bank Credit or Financing Policy Committee
• Permanent Member of RKK Committee A Bank BTN Business Functions
• Permanent Member of the ESG Committee of Bank BTN
The period of service as a Committee follows the Period of Service as Director of Finance


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, owned 2,531,022 shares/0.0180344%




                                                                    PT Bank Tabungan Negara (Persero) Tbk                       123
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                  Company
                  Profile




                                                            EKO WALUYO
                                                            Director of Human Capital, Compliance and Legal




                                                        Indonesian Citizen, 52 years old as of December 2023,
                                                        domiciled in Bekasi.




       Educational Background
       •   Bachelor of Economics, Gadjah Mada University, Yogyakarta (1995).
       •   Master’s Degree in Management, Universitas Gadjah Mada, Yogyakarta/ Gatton College of Business, MBA Short Course Program in
           Cooperation with MM UGM, University of Kentucky (2004).


       Certification
       • Banking Risk Management Level 5 by LSPP (Refreshment 2023).
       • Certified Anti Fraud Professional by Asia Anti Fraud (2023).


       Work Experience
       • Director of Human Capital, Compliance and Legal at Bank BTN (March 2022 – present).
       • Director of Compliance and Legal at Bank BTN (2021- March 2022).
       • Human Capital Management Division Head Bank BTN (2019-2021).
       • Human Capital Management & Culture Specialist Division Head of Bank BTN (2017-2019).
       • Human Capital Division Head Bank BTN (2017).
       • Corporate Secretary Division Head of Bank BTN (2015-2017).
       • Acting Corporate Secretary Division Head of Bank BTN (2014-2015).


       Legal Basis of Appointment
       Served as Director of the Company for the first time since March 10, 2021 through the decision of the Company’s Annual General Meeting
       of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on August 9, 2021.


       Period of Office
       March 10, 2021 – GMS of 2026, The First Term.


       Concurrent Position
       • Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Risk Management Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of the BTN Bank Credit or Financing Policy Committee
       • Permanent Member of the Bank BTN Business Committee
       • Permanent Member of the Bank BTN Transformation Steering Committee
       • Permanent Member of the ESG Committee of Bank BTN
       The period of service as a Committee follows the Period of Service as Director of Human Capital, Compliance & Legal


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, owned 1,871,964 shares/0.0133384%




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                                                                                        2023 Annual Report




                                                     ELISABETH NOVIE RISWANTI
                                                     Director of Assets Management




                                                 Indonesian Citizen, 56 years old as of December 2023,
                                                 domiciled in Bekasi.




Educational Background
Bachelor of Law, Gadjah Mada University, Yogyakarta (1991).


Certification
• International Risk Management Refreshment & Wealth Management Certification Program by MMUGM dan IBI (2022).
• Banking Risk Management Level 5 by LSPP (Refreshment 2022).


Work Experience
• Director of Assets Management, Bank BTN (March 2022 – present).
• Director of Wholesale Risk and Asset Management, Bank BTN (2021- March 2022).
• Director of Remedial and Wholesale Risk, Bank BTN (2019 - 2021)
• Director of Collection and Asset Management, Bank BTN (2019).
• Head of Asset Management Division, Bank BTN (2017-2019)


Legal Basis of Appointment
Served as Director of the Company for the first time since August 29, 2019 through the decision of the Company’s Extraordinary General
Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on June 26, 2020.


Period of Office
August 29, 2019 – GMS of 2024, The First Term.


Concurrent Position
• Permanent Member of the Bank BTN Assets and Liabilities Committee
• Permanent Member of the Bank BTN Risk Management Committee
• Permanent Member of the Human Capital Committee of Bank BTN
• Permanent Member of the BTN Bank Credit or Financing Policy Committee
• Permanent Member of RKK Committee A Risk Function of Bank BTN
• Permanent Member of the ESG Committee of Bank BTN
The period of service as a Committee follows the Period of Service as Director of Assets Management


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, owned 1,733,200 shares/ 0.0123496%




                                                                   PT Bank Tabungan Negara (Persero) Tbk                       125
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                   Company
                   Profile




                                                              ANDI NIRWOTO
                                                              Director of IT & Digital




                                                          Indonesian Citizen, 53 years old as of December 2023,
                                                          domiciled in Central Jakarta.




       Educational Background
       •   Bachelor of Engineering, Gadjah Mada University, Yogyakarta (1994)
       •   Master of Finance, Gadjah Mada University, Yogyakarta/ University of Lexington Kentucky, United States (1997).


       Certification
       • Risk Management Level 5 Board of Directors by IICD (Refreshment 2023).
       • Digital Transformation for Boards, IMD Business School, Lausanne, Switzerland (2023)
       • Digital Innovation Progamme, Erasmus University - Rotterdam School of Management, Rotterdam, Netherlands (2022)
       • T Infrastructure Library (ITIL), APMG International Quint Wellington (2017)
       • TOGAF 8, National University of Singapore (NUS), Singapore (2011)


       Work Experience
       • Director of IT & Digital, Bank BTN (March 2022 - present).
       • Director of Operation, IT and Digital Banking, Bank BTN (2019 - March 2022).
       • Director of IT & Operation, Bank BTN (2018 - 2019).
       • General Manager of Information Technology Operation, PT Bank Negara Indonesia (Persero) Tbk (2017 - 2018).
       • General Manager of Solution & Security, PT Bank Negara Indonesia (Persero) Tbk (2015 - 2017).


       Legal Basis of Appointment
       Served as Director of the Company for the first time since March 23, 2018 through the decision of the Company’s Annual General Meeting
       of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on September 10, 2018. Subsequently he
       was honorably dismissed and reappointed as the Company’s IT & Digital Director based on the results of the decision of the Company’s
       Extraordinary General Meeting of Shareholders (EGMS) on January 11, 2023.


       Period of Office
       • March 23, 2018 - GMS 2023, First Period
       • January 11, 2023 – 2027 GMS, Second Period


       Concurrent Position
       • Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Information Technology Steering Committee
       • Permanent Member of the Bank BTN Risk Management Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of RKK Committee A Risk Function of Bank BTN
       • Permanent Member of the Bank BTN Business Committee
       The period of office as a Committee follows the Period of Service as Director of IT & Digital



       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, owned 1,822,161 shares/0.0129835%




126   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                          2023 Annual Report




                                                      JASMIN
                                                      Director of Distribution and Funding




                                                  Indonesian Citizen, 59 years old as of December 2023,
                                                  domiciled in South Jakarta.




Educational Background
• Bachelor (S1) in Economics, Gadjah Mada University, Yogyakarta (1988).
• Masters (S2) International Business, Gadjah Mada University, Yogyakarta (1998).


Certification
• Public Refreshment of Risk Management and Treasury Dealers Level 5 (2022).
• Certified Wealth Manager by CWM (2021).


Work Experience
• Director of Distribution and Funding Bank BTN (March 2022 - present).
• Director of Distribution and Retail Funding Bank BTN (2019 - March 2022).
• SEVP Consumer & Transaction PT Bank Mandiri (Persero) Tbk (2018 - 2019).
• Regional CEO IV/JKT 2 PT Bank Mandiri (Persero) Tbk (2015 - 2018).
• Regional Manager IV-JKT PT Bank Mandiri (Persero) Tbk (2013 - 2015).


Legal Basis of Appointment
Served as Director of the Company for the first time since November 27, 2019 through the decision of the Company’s Extraordinary
General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on May 4, 2020.


Period of Office
November 27, 2019 – GMS of 2024, The First Term


Concurrent Position
• Permanent Member of the Bank BTN Assets and Liabilities Committee
• Permanent Member of the Bank BTN Risk Management Committee
• Permanent Member of the Human Capital Committee of Bank BTN
• Permanent Member of the BTN Bank Credit or Financing Policy Committee
• Permanent Member of RKK Committee A Bank BTN Business Functions
• Permanent Member of the Bank BTN Business Committee
The period of service as a Committee follows the Period of Service as Director of Distribution & Funding


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, owned 2,848,030 shares/0.0202931%




                                                                     PT Bank Tabungan Negara (Persero) Tbk                127
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                  Company
                  Profile




                                                            SETIYO WIBOWO
                                                            Director of Risk Management




                                                        Indonesian Citizen, 46 years old as of December 2023,
                                                        domiciled in South Tangerang.




       Educational Background
       •   Bachelor of Electrical Engineering, Bandung Institute of Technology (1999)
       •   MBA in Finance & Banking, KDI School of Public Policy and Management, South Korea (2009).


       Certification
       Risk Management Level 5 by LSPP (Refreshment 2022).


       Work Experience
       • Director of Risk Management, Bank BTN (March 2022 – present).
       • Director of Risk Management and Transformation, Bank BTN (2021 - March 2022).
       • Director of Enterprise Risk Management, Big Data and Analytics, Bank BTN (2019- 2021).
       • Group Head Consumer Credit Risk & Analytics, PT Bank Mandiri (Persero) Tbk (2018-2019).
       • Group Head Credit Portfolio Risk, PT Bank Mandiri (Persero) Tbk (2017- 2018).


       Legal Basis of Appointment
       Served as Director of the Company for the first time since November 27, 2019 through the decision of the Company’s Extraordinary
       General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) since July 3, 2020.


       Period of Office
       November 27, 2019 - GMS of 2024, The First Term.


       Concurrent Position
       • Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Information Technology Steering Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of the BTN Bank Credit or Financing Policy Committee
       • Permanent Member of RKK Committee A Risk Function of Bank BTN
       • Permanent Member of the Bank BTN Business Committee
       • Permanent Member of the Bank BTN Transformation Steering Committee
       • Permanent Member of the ESG Committee of Bank BTN
       The period of service as a Committee follows the Period of Service as Director of Risk Management


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, owned 1,892,700 shares/0.0134861%




128   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




                                                       HAKIM PUTRATAMA
                                                       Director of Institutional Banking




                                                   Indonesian Citizen, 47 years old as of December 2023,
                                                   domiciled in South Tangerang.




Educational Background
• Bachelor (S1) in International Relations, Padjadjaran University, Bandung (1998).
• Master (S2) International Business, Aston University, England (2001).


Certification
Risk Management Level 5 by BSMR (Refreshment 2023).


Work Experience
• Director of Institutional Banking Bank BTN (March 2023 - present).
• Head of International and Transaction Banking PT Regional Development Bank West Java and Banten, Tbk (May 2022 – March 2023).
• Senior Vice President (SVP) Consumer Funding Retail Division PT Regional Development Bank West Java and Banten, Tbk (2018 -2022).
• Senior Vice President (SVP) Corporate Secretary Division PT Regional Development Bank West Java and Banten, Tbk (2015-2018)
• Senior Vice President (SVP) Head of Marketing & Segment Offering PT Bank Commonwealth (2012 – 2015).


Legal Basis of Appointment
Served as Director of the Company for the first time since March 16, 2023 through the Resolution of the Company’s Annual General
Meeting of Shareholders (AGMS) and was declared effective by the Financial Services Authority on July 26, 2023.


Period of Office
March 16, 2023 - 2028 GMS, First Period


Concurrent Position
• Permanent Member of the Bank BTN Assets and Liabilities Committee
• Permanent Member of the Bank BTN Risk Management Committee
• Permanent Member of the Human Capital Committee of Bank BTN
• Permanent Member of the BTN Bank Credit or Financing Policy Committee
• Permanent Member of RKK Committee A Bank BTN Business Functions
• Permanent Member of the Bank BTN Business Committee
The period of office as a Committee follows the Period of Service as Director of Institutional Banking


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, it does not own BBTN shares




                                                                      PT Bank Tabungan Negara (Persero) Tbk                  129
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                  Company
                  Profile




                                                            HARU KOESMAHARGYO*
                                                            President Director

                                                            * Resigned from office on March 16, 2023 based on the results of the 2023 Annual
                                                              General Meeting of Shareholders (AGMS).




                                                        Indonesian Citizen, 57 years old as of December 2023,
                                                        domiciled in South Jakarta.




       Educational Background
       • Bachelor of Agrotechnology, Brawijaya University, Malang (1989)
       • Master of Investment Banking, Emory University, Atlanta USA (2000).


       Certification
       Risk Management Level 5 by BSMR (Refreshment 2021).


       Work Experience
       • President Director, Bank BTN (2021-present).
       • Director of Finance, PT Bank Rakyat Indonesia (Persero) Tbk (2017-2021).
       • Director of Finance and Treasury, PT Bank Rakyat Indonesia (Persero) Tbk (2015-2017).
       • President Commissioner of PT BTMU – BRI Finance (2014-2015).
       • Head of Treasury Division, PT Bank Rakyat Indonesia (Persero) Tbk (2014-2015).


       Legal Basis of Appointment
       He has been serving as the President Director for the first time since March 10, 2021 in accordance with the resolutions of the Annual
       General Meeting of Shareholders (AGMS). In addition, the Financial Services Authority (OJK) validated his appointment on May 19, 2021.


       Period of Office
       March 10, 2021 – March 16, 2023, First Period.


       Concurrent Position
       • Chairman concurrently Permanent Member of the Bank BTN Assets and Liabilities Committee
       • Permanent Member of the Bank BTN Information Technology Steering Committee
       • Chairman concurrently Permanent Member of the Bank BTN Risk Management Committee
       • Permanent Member of the Human Capital Committee of Bank BTN
       • Permanent Member of the BTN Bank Credit or Financing Policy Committee
       • Permanent Member of RKK Committee A Risk Function of Bank BTN
       • Chairman concurrently Permanent Member of the Bank BTN Business Committee
       • Chairman concurrently Permanent Member of the Bank BTN ESG Committee
       Stop serving on the Committee on March 16, 2023.


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of February 28, 2023, owned 403,600 shares/0.0028758%




130   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                              2023 Annual Report




Directors Affiliation Relations
Table of Directors Affiliation Relations
                                                Financial Relations, Family and Board of Directors Management

                                                        Financial Relations With                          Family Relations With
                                                                                                                                            Management
                                             Board of           Board of       Controlling   Board of            Board of     Controlling    Relations
       Name               Position
                                           Commissioners        Directors     Shareholders Commissioners         Directors   Shareholders

                                              Yes      No      Yes      No     Yes        No      Yes    No     Yes    No     Yes     No    Yes        No

 Nixon L. P
                     President Director                 √               √                 √              √              √              √               √
 Napitupulu

 Oni Febriarto R.    Vice President
                                                        √               √                 √              √              √              √               √
                     Director
                     Director of
 Hirwandi Gafar                                         √               √                 √              √              √              √               √
                     Consumers
                     Director of
 Nofry Rony Poetra                                      √               √                 √              √              √              √               √
                     Finance
                     Director of
                     Human Capital,
 Eko Waluyo                                             √               √                 √              √              √              √               √
                     Compliance &
                     Legal
 Elisabeth Novie     Director of Assets
                                                        √               √                 √              √              √              √               √
 Riswanti            Management
                     Director of IT &
 Andi Nirwoto                                           √               √                 √              √              √              √               √
                     Digital
                     Director of
 Jasmin              Distribution and                   √               √                 √              √              √              √               √
                     Funding
                     Director of Risk
 Setiyo Wibowo                                          √               √                 √              √              √              √               √
                     Management
                     Director of
 Hakim Putratama
                     Institutional                      √               √                 √              √              √              √               √
                     Banking




Education and/or Training of The Board of Directors

A description of the education and/or training of the Board of Directors during the financial year is presented in the Corporate
Governance Chapter.



Changes in the Composition of Members of the Board of Directors and Reasons for the
Changes

During 2023, there were changes to the composition of the Board of Directors. Changes in the composition of the Board of Directors
were carried out based on the Company’s needs. Changes in the composition of the Board of Directors are as follows:


Composition of The Board of Directors Period January 1, 2023 – January 10, 2023

The composition of the Board of Directors for the period January 1, 2023 to January 10, 2023 is 9 (nine) people consisting of 1 (one)
Main Director, 1 (one) Deputy Main Director and 7 (seven) Directors. All members of the Board of Directors are domiciled in the work area
of the Company’s Head Office. The composition and basis for appointing members of the Board of Directors can be seen in the table below.

Table of Composition and Basis of Appointment of the Board of Directors
          Name                       Position                 Organizer                        Basis of Appointment                   Effective Date

 Haru Koesmahargyo       President Director                       OJK              AGMS dated March 10, 2021                       May 19, 2021

                                                                                   -   AGMS dated March 17, 2017
 Nixon L. P Napitupulu   Vice President Director                  OJK              -   AGMS dated March 10, 2021                   May 19, 2021
                                                                                   -   AGMS dated March 2, 2022



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                            Company
                            Profile




          Name                        Position               Organizer              Basis of Appointment           Effective Date

 Hirwandi Gafar             Director of Consumers              OJK         EGMS dated November 27, 2019        August 28, 2020

 Nofry Rony Poetra          Director of Finance                OJK         AGMS dated March 10, 2021           August 9, 2021
                            Director of Human Capital,
 Eko Waluyo                                                    OJK         AGMS dated March 10, 2021           August 9, 2021
                            Compliance & Legal
 Elisabeth Novie            Director of Assets
                                                               OJK         EGMS dated August 29, 2019          June 26, 2020
 Riswanti                   Management

 Andi Nirwoto               Director of IT & Digital           OJK         AGMS dated March 23, 2018           September 10, 2018
                            Director of Distribution and
 Jasmin                                                        OJK         EGMS dated November 27, 2019        May 4, 2020
                            Funding
                            Director of Risk
 Setiyo Wibowo                                                 OJK         EGMS dated November 27, 2019        July 3, 2020
                            Management




Composition of The Board of Directors Period January 11, 2023 – March 15, 2023

On Janury 11, 2023, the Extraordinary GMS decided to respectfully dismiss and reappoint Andi Nirwoto as Director of IT & Digital.
Thus, the composition of the Board of Directors for the period January 11, 2023 to March 15, 2023 was 9 (nine) people consisting
of 1 (one) Main Director, 1 (one) Deputy Main Director and 7 (seven) Directors. All members of the Board of Directors are domiciled in
the work area of the Company’s Head Office. The composition and basis for appointing members of the Board of Directors can be seen
in the table below.

Table of Composition and Basis of Appointment of the Board of Directors
          Name                             Position               Organizer             Basis of Appointment          Effective Date

 Haru Koesmahargyo            President Director                     OJK       AGMS dated March 10, 2021            May 19, 2021

                                                                               • AGMS dated March 17, 2017
 Nixon L. P Napitupulu        Vice President Director                OJK       • AGMS dated March 10, 2021          May 19, 2021
                                                                               • AGMS dated March 2, 2022

 Hirwandi Gafar               Director of Consumers                  OJK       EGMS dated November 27, 2019         August 28, 2020

 Nofry Rony Poetra            Director of Finance                    OJK       AGMS dated March 10, 2021            August 9, 2021
                              Director of Human Capital,
 Eko Waluyo                                                          OJK       AGMS dated March 10, 2021            August 9, 2021
                              Compliance & Legal
 Elisabeth Novie Riswanti     Director of Assets Management          OJK       EGMS dated August 29, 2019           26 Juni 2020

                                                                               • AGMS dated March 23, 2018
 Andi Nirwoto                 Director of IT & Digital               OJK                                            January 11, 2023
                                                                               • EGMS dated January 11, 2023
                              Director of Distribution and
 Jasmin                                                              OJK       EGMS dated November 27, 2019         May 4, 2020
                              Funding
 Setiyo Wibowo                Director of Risk Management            OJK       EGMS dated November 27, 2019         July 3, 2020




Composition of The Board of Directors Period March 16, 2023 – December 31, 2023

On March 16, 2023, the 2023 Annual GMS decided:
1. Respectfully removing Haru Koesmahargyo as President Director of the Company.
2. Transferring Nixon L. P. Napitupulu’s assignment from being Deputy President Director to President Director of the Company.
3. Appointing the names below as Company Management:
   a. a. Oni Febriarto Rahardjo - as Deputy Main Director;
   b. Hakim Putratama - as Director of Institutional Banking


Thus, the composition of the Board of Directors for the period March 16, 2023 to December 31, 2023 was 10 (ten) people consisting
of 1 (one) Main Director, 1 (one) Deputy Main Director and 8 (eight) Directors. All members of the Board of Directors are domiciled in
the work area of the Company’s Head Office. The composition and basis for appointing members of the Board of Directors can be seen
in the table below.




132           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




Table of Composition and Basis of Appointment of the Board of Directors
          Name                     Position             Organizer             Basis of Appointment                   Effective Date

                                                                    -   AGMS dated March 17, 2017
                                                                    -   AGMS dated March 10, 2021
 Nixon L. P Napitupulu   President Director               OJK                                                    June 7, 2023
                                                                    -   AGMS dated March 2, 2022
                                                                    -   AGMS dated March 16, 2023

 Oni Febriarto
                         Vice President Director          OJK       AGMS dated March 16, 2023                    June 7, 2023
 Rahardjo

 Hirwandi Gafar          Director of Consumers            OJK       EGMS dated November 27, 2019                 August 28, 2020

 Nofry Rony Poetra       Director of Finance              OJK       AGMS dated March 10, 2021                    August 9, 2021
                         Director of Human Capital,
 Eko Waluyo                                               OJK       AGMS dated March 10, 2021                    August 9, 2021
                         Compliance & Legal
 Elisabeth Novie         Director of Assets
                                                          OJK       EGMS dated August 29, 2019                   June 26, 2020
 Riswanti                Management

 Andi Nirwoto            Director of IT & Digital         OJK       AGMS dated March 23, 2018                    September 10, 2018
                         Director of Distribution and
 Jasmin                                                   OJK       EGMS dated November 27, 2019                 May 4, 2020
                         Funding
                         Director of Risk
 Setiyo Wibowo                                            OJK       EGMS dated November 27, 2019                 July 3, 2020
                         Management
                         Director of Institutional
 Hakim Putratama                                          OJK       AGMS dated March 16, 2023                    July 26, 2023
                         Banking




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                  Company
                  Profile




Board of Commissioners
Profile


                                                            CHANDRA M. HAMZAH
                                                            President/Independent Commissioner




                                                        Indonesian Citizen, 56 years old as of December 2023,
                                                        domiciled in South Jakarta.




       Educational Background
       •   Bachelor of Law from University of Indonesia (1995).


       Certification
       Banking Risk Management Level 2 by LSPP (Refreshment 2023).


       Work experience
       • President/Independent Commissioner of Bank BTN (2019 - present).
       • President Commisioner of PT Perusahaan Listrik Negara (Persero) (2014 - 2015).
       • Partner of Assegaf Hamzah & Partners Law Firm (2012 - present).
       • Commissioner of Corruption Eradication Commission (KPK) (2007 - 2011)
       • Partner of Assegaf Hamzah & Partners Law Firm (2001 - 2007).


       Legal Basis of Appointment
       Served as President Commissioner and Independent Commissioner of the Company for the first time since November 27, 2019 through the
       decision of the Company’s Extraordinary General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services
       Authority (OJK) since May 4, 2020..


       Period of Office
       November 27, 2019 - Extraordinary GMS 2024, The First Term


       Concurrent Position
       • Chairman of the Remuneration and Nomination Committee of Bank BTN (2020-present).
       • Partner of Assegaf Hamzah & Partners Law Firm (2012 – present).




       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, Has no ownership of shares.




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                                                                                        2023 Annual Report




                                                     IQBAL LATANRO
                                                     Vice President Commissioner/Independent




                                                 Indonesian Citizen, 65 years old as of December 2023,
                                                 domiciled in South Jakarta.




Educational Background
•   Bachelor of Economics, Hasanuddin University, Makassar (1983)
•   Master of Business Management, Hasanuddin University, Makassar (1998).


Certification
Risk Management Level 5 by LSPP (Refreshment 2023).


Work Experience
• Vice President Commissioner/Independent of Bank BTN (2021 – present).
• Commissioner of PT Bank Mandiri Taspen (2020-2021).
• Commissioner of PT Pemeringkat Efek Indonesia (2020-2021).
• President Director of PT Taspen (Persero) (2018-2020).
• President Commisioner of PT Taspen Properti Indonesia (2015 – 2020)..


Legal Basis of Appointment
Served as ice President/Independent Commissione of the Company for the first time since March 10, 2021 through the decision of the
Company’s Annual General Meeting of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on
September 6, 2021.


Period of Office
March 10, 2021 - AGMS 2026, The First Period


Concurrent Position
• Chairman of the Audit Committee of Bank BTN (2021-present).
• Member of the Remuneration and Nomination Committee of Bank BTN (2021-present).


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, Has no ownership of shares.




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                  Company
                  Profile




                                                           ARMAND B. ARIEF
                                                           Independent Commissioner




                                                        Indonesian Citizen, 71 years old as of December 2023,
                                                        domiciled in South Jakarta.




       Educational Background
       •   Bachelor of Business Administration, Curry College, Milton Massachusetts, USA (1979)
       •   Master of Business Administration, Curry College, Milton Massachusetts, USA (1982).


       Certification
       Manajemen Risiko Level 4 oleh LSPP (Refreshment 2021).


       Work Experience
       • Independent Commissioner of PT Cardig Aero Services Tbk (2021 - present).
       • Independent Commissioner of Bank BTN (2019 - present).
       • Independent Commissioner of PT Bank Royal Indonesia (2017-2018).
       • Commissioner/Senior Consultant Dunamis Organization Services (Franklin Covey USA Subsidiary (2016 - 2019).
       • Interviewer Panel Member of the Financial Services Authority (OJK) (2016-2017)..


       Legal Basis of Appointment
       Served as Independent Commissioner of the Company for the first time since November 27, 2019 through the decision of the Company’s
       Extraordinary General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on May 14,
       2020.


       Period of Office
       November 27, 2019 - Extraordinary GMS 2024, The First Term


       Concurrent Position
       • Member of the Remuneration and Nomination Committee of Bank BTN (2020-present).
       • Chairman of the Risk Monitoring Committee of Bank BTN (2020-present).


       Concurrent Position in Another Public Company
       Independent Commissioner of PT Cardig Aero Services Tbk (2021—present).


       BTN Share Ownership
       As of December 31, 2023, Has no ownership of shares.




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                                                                                        2023 Annual Report




                                                      SENTOT A. SENTAUSA
                                                      Independent Commissioner




                                                  Indonesian Citizen, 66 years old as of December 2023,
                                                  domiciled in South Jakarta.




Educational Background
•   Bachelor (S1) Statistics, Padjadjaran University, Bandung (1985).
•   Master (S2) Business Administration, Monash University, Australia (1995).


Certification
Banking Risk Management Level 5 by LSPP (Refreshment 2022).


Work Experience
• Independent Commissioner of Bank BTN (2022 – present).
• President Commissioner of PT Jiwasraya (Persero) (2019 – 2020)
• President Commissioner of Mandiri Inhealth (2016-2019).
• Distribution Director of PT Bank Mandiri (Persero) Tbk (2015-2016).
• Director of Risk Management at PT Bank Mandiri (Persero) Tbk (2006-2014).


Legal Basis of Appointment
Served as Independent Commissioner of the Company for the first time since March 2, 2022 through the Resolution of the Company’s
Annual General Meeting of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on August 8, 2022.


Period of Office
March 2, 2022 – GMS of 2027, The First Term.


Concurrent Position
• Member of the Audit Committee of Bank BTN (2022-present).
• Member of the Remuneration and Nomination Committee of Bank BTN (2022-present).


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, Has no ownership of shares.




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                  Company
                  Profile




                                                            ANDIN HADIYANTO
                                                            Commissioner




                                                        Indonesian Citizen, 58 years old as of December 2023,
                                                        domiciled in Bekasi.




       Educational Background
       •   Bachelor of Economics, Gadjah Mada University, Yogyakarta (1989).
       •   Master of International Development, Nagoya University, Japan (1997).
       •   Doctor of International Development, Nagoya University, Japan (2000).


       Certification
       Banking Risk Management 1 Commissioner by LSPP (2022).


       Work Experience
       • Head of the Education and Financial Training Agency (BPPK), Ministry of Finance and Acting President Director of Educational Fund
         Management Agency (LPDP) (2021-present).
       • Commissioner of Bank BTN (2019-present).
       • Director General of Treasury, Ministry of Finance (2019-2021).
       • Expert Staff of the Minister of Finance for Macroeconomics and International Finance (2018-2019).
       • Executive Director, World Bank, Washington DC, USA (2016-2018).


       Legal Basis of Appointment
       Served as Commissioner of the Company for the first time since November 27, 2019 through the decision of the Company’s Extraordinary
       General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on July 10, 2020.


       Period of Office
       November 27, 2019 - Extraordinary GMS 2024, The First Term.


       Concurrent Position
       • Head of the Education and Financial Training Agency (BPPK), Ministry of Finance and Acting President Director of Educational Fund
         Management Agency (LPDP) (2021-present)
       • Member of the Audit Committee of Bank BTN (2020-present).
       • Member of the Remuneration and Nomination Committee of Bank BTN (2020-present).


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, Has no ownership of shares.




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                                                                                        2023 Annual Report




                                                     HERRY TRISAPUTRA ZUNA
                                                     Commissioner




                                                 Indonesian Citizen, 56 years old as of December 2023,
                                                 domiciled in West Jakarta.




Educational Background
•   Bachelor’s degree (S1) in Civil Engineering, Bandung Institute of Technology, Bandung (1992).
•   Bachelor (S1) Management, Padjadjaran University, Bandung (1993).
•   Master (S2) of Highway Systems and Engineering, Bandung Institute of Technology, Bandung (1994).
•   Doctorate (S3) in Civil Engineering, University of Indonesia, Depok (2016).


Certification
Risk Management Level 1 Commissioner by LSPP (2022).


Work experience
• Commissioner of Bank BTN (2022 – present).
• Director General of Public Works and Housing Infrastructure Financing, Ministry of Public Works and Public Housing (2021 – present).
• Director for Development of a Financing Implementation Strategy System, Ministry of Public Works and Public Housing (2019-2021).
• Commissioner of PT Wijaya Karya Beton Tbk (2017 – 2019).
• Head of Indonesian Toll Road Regulatory Agency, Ministry of Public Works and Public Housing (2015-2019).
.


Legal Basis of Appointment
Served as Commissioner of the Company for the first time since March 2, 2022 through the Resolution of the Company’s Annual General
Meeting of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on October 11, 2022.


Period of Office
March 2, 2022 – GMS of 2027, The First Term


Concurrent Position
• Member of the Remuneration and Nomination Committee of Bank BTN (2022-present).
• Member of the Risk Monitoring Committee of Bank BTN (2022-present).
• Director General of Public Works and Housing Infrastructure Financing, Ministry of Public Works and Public Housing (2021 – present).


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, owned 404,600 shares/ 0.0028829%




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                  Company
                  Profile




                                                             HIMAWAN ARIEF SUGOTO
                                                             Commissioner




                                                         Indonesian Citizen, 60 years old as of December 2023,
                                                         domiciled in Depok.




       Educational Background
       •   Bachelor (S1) in Civil Engineering, Bandung Institute of Technology, Bandung (1990).
       •   Masters (S2) in Civil Engineering, University of Indonesia, Jakarta (2001).
       •   Doctor (S3) Management and Business, Bogor Agricultural Institute, Bogor (2023)..


       Certification
       Risk Management Level 1 Commissioner by LSPP (Refreshment 2023).


       Work experience
       • Main Advisor to the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency for Land Economics
         (2023-present).
       • Commissioner of Bank BTN (2022 – present).
       • Secretary to the Land Bank Board Committee (2021 – present)
       • Commissioner of PT Rajawali Nusantara Indonesia (Holding Food) (2020-2022).
       • Acting Director General of Land Procurement and Land Development, Ministry of Agrarian Affairs and Spatial Planning/National Land
         Agency (2020 – 2021)
       • Secretary General Commissioner of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (2018 – 2023).


       Legal Basis of Appointment
       Served as Commissioner of the Company for the first time since March 2, 2022 through the Resolution of the Company’s Annual General
       Meeting of Shareholders (AGMS) and was declared effective by the Financial Services Authority (OJK) on October 3, 2022.


       Period of Office
       March 2, 2022 – GMS of 2027, The First Term


       Concurrent Position
       • Main Advisor to the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency for Land Economics
         (2023-present).
       • Member of the Remuneration and Nomination Committee of Bank BTN (2022-present).
       • Member of the Risk Monitoring Committee of Bank BTN (2022-present).
       • Secretary of the Land Bank Agency Committee (2021 – 2023).
       • Secretary General Commissioner of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (2018 – 2023).


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, owned 404,600 shares/ 0.0028829%




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                                                                                          2023 Annual Report




                                                      MOHAMAD YUSUF PERMANA
                                                      Commissioner




                                                  Indonesian Citizen, 48 years old as of December 2023,
                                                  domiciled in South Jakarta.




Educational Background
Bachelor (S1) in Economics, Gunadarma University, Jakarta (1999).


Certification
Risk Management Competency Level 1 (one) by BSMR (2023).


Work Experience
• Commissioner of PT Bank Tabungan Negara (Persero) Tbk (2023—present).
• Head of Protocol Bureau of the Presidential Secretariat, Ministry of State Secretaries (2021—present).
• Commissioner of PT Pelindo Multi Terminal (2021).
• Commissioner of PT Pelabuhan Indonesia I (Persero) (2021).
• Commissioner of PT Djakarta Lloyd (2020)..


Legal Basis of Appointment
Appointed as Commissioner of the Company for the first time since January 11, 2023 through the Resolution of the Company’s Extraordinary
General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority on June 7, 2023.


Period of Office
January 11, 2023 – GMS 2028, First Period


Concurrent Position
• Head of Protocol Bureau of the Presidential Secretariat, Ministry of State Secretary (2021 — present).
• Member of the Remuneration and Nomination Committee of Bank BTN (2023-present).


Concurrent Position in Another Public Company
Does not have concurrent positions in other public companies.


BTN Share Ownership
As of December 31, 2023, Has no ownership of shares.




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                  Company
                  Profile




                                                             AHDI JUMHARI LUDDIN*
                                                             Independent Commissioner

                                                             *Resigned office on August 12 2023 due to pass away.




                                                         Indonesian Citizen, 69 years old as of August 2023,
                                                         domiciled in East Jakarta.




       Educational Background
       •   Bachelor (S1) in Economics, University of Indonesia, Jakarta (1982).
       •   Master (S2) Policy Economics, University of Illinois, Urbana-Champaign, United States (1989).


       Certification
       Banking Risk Management Level 5 by LSPP (Refreshment 2022).


       Work Experience
       • Independent Commissioner of Bank BTN (2019 - 2023).
       • President Commissioner of PT BRI Agroniaga Tbk (2019).
       • Independent Commissioner of PT Bank DKI (2015-2018).
       • Director of Law and Compliance of PT Bank Negara Indonesia (Persero) Tbk (2010-2015).
       • Director of Compliance and Risk Management of PT Bank Negara Indonesia (Persero) Tbk (2008-2010).


       Legal Basis of Appointment
       Served as Independent Commissioner of the Company for the first time since November 27, 2019 through the decision of the Company’s
       Extraordinary General Meeting of Shareholders (EGMS) and was declared effective by the Financial Services Authority (OJK) on March
       16, 2020.


       Period of Office
       November 27, 2019 - August 12, 2023


       Concurrent Position
       Member of the Audit Committee of Bank BTN (2020-2023).


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of August 12, 2023, Has no ownership of shares.




142   PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                       2023 Annual Report




Affiliation of the Board of Commissioners
Table of Affiliation of the Board of Commissioners
                                          Financial Relations, Family and Board of Commissioner Management

                                                     Financial Relations With                       Family Relations With
                                                                                                                                        Management
                                             Board of       Board of       Controlling      Board of         Board of     Controlling    Relations
       Name                Position
                                           Commissioners    Directors     Shareholders    Commissioners      Directors   Shareholders

                                            Yes    No      Yes     No     Yes    No        Yes    No      Yes      No    Yes    No      Yes      No

                       President/
 Chandra M.
                       Independent                  √              √              √                √                √            √               √
 Hamzah
                       Commissioner
                       Vice President
 Iqbal Latanro         Commissioner/                √              √              √                √                √            √               √
                       Independent
                       Independent
 Armand B. Arief                                    √              √              √                √                √            √               √
                       Commissioner
                       Independent
 Sentot A. Sentausa                                 √              √              √                √                √            √               √
                       Commissioner
 Andin Hadiyanto       Commissioner                 √              √              √                √                √            √               √

 Herry Trisaputra
                       Commissioner                 √              √              √                √                √            √               √
 Zuna

 Himawan Arief
                       Commissioner                 √              √              √                √                √            √               √
 Sugoto

 Mohamad Yusuf
                       Commissioner                 √              √              √                √                √            √               √
 Permana




Education and/or Training of The Board of Commissioners

A description of the education and/or training of the Board of Commissioners during the Fiscal year is presented in the Corporate
Governance Chapter.



Changes in the Composition of Members of the Board of Commissioners and Reasons for
the Changes

During 2023, there was a change in the composition of the members of the Board of Commissioners. Changes in the composition of the
members of the Board of Commissioners were made based on the needs of the Company. Changes in the composition of the members
of the Board of Commissioners are as follows:


Composition of the Board of Commissioners Period January 1, 2023 – January 10, 2023

The composition of the Board of Commissioners for the period January 1, 2023 to January 10, 2023 was 8 (eight) people consisting
of 1 (one) Main/Independent Commissioner, 1 (one) Deputy Main/Independent Commissioner, 3 (three) Independent Commissioners
and 3 (three) Commissioners. The entire Board of Commissioners was domiciled in the working area of the Company’s Head Office. The
composition and basis for the appointment of the Board of Commissioners can be seen in the table below.

Table of Composition and Basis for Appointment of the Board of Commissioners
period January 1, 2023 - January 10, 2023
        Name                          Position             Organizer                     Basis of Appointment                   Effective Date
                         President/Independent
 Chandra M. Hamzah                                               OJK        EGMS dated November 27, 2019                    May 4, 2020
                         Commissioner
                         Vice President
 Iqbal Latanro                                                   OJK        AGMS dated March 10, 2021                       September 6, 2021
                         Commissioner/Independent
 Armand B. Arief         Independent Commissioner                OJK        EGMS dated November 27, 2019                    May 14, 2020

 Ahdi Jumhari Luddin     Independent Commissioner                OJK        EGMS dated November 27, 2019                    March 16, 2020

 Sentot A. Sentausa      Independent Commissioner                OJK        AGMS dated March 2, 2022                        August 8, 2022



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                         Company
                         Profile




        Name                      Position           Organizer               Basis of Appointment                  Effective Date

 Andin Hadiyanto         Commissioner                   OJK         EGMS dated November 27, 2019              July 10, 2020

 Herry Trisaputra Zuna   Commissioner                   OJK         AGMS dated March 2, 2022                  October 11, 2022

 Himawan Arief Sugoto    Commissioner                   OJK         AGMS dated March 2, 2022                  October 3, 2022


Composition of the Board of Commissioners Period January 11, 2023 – August 11, 2023

Based on the Decision of the 2023 Extraordinary General Meeting of Shareholders (EGMS), Mohamad Yusuf Permana was appointed
as Commissioner of the Company. Thus, the composition of the Board of Commissioners for the period January 11, 2023 to August 11,
2023 was 9 (nine) people consisting of 1 (one) Main/Independent Commissioner, 1 (one) Deputy Main/Independent Commissioner, 3
(three) Independent Commissioners and 4 (four) Commissioners. The entire Board of Commissioners was domiciled in the working area of
the Company’s Head Office. The composition and basis for the appointment of the Board of Commissioners can be seen in the table below.

Table of Composition and Basis for Appointment of the Board of Commissioners
period January 11, 2023 – August 11, 2023
        Name                      Position           Organizer                Basis of Appointment                  Effective Date
                         President/Independent
 Chandra M. Hamzah                                       OJK        EGMS dated November 27, 2019                 May 4, 2020
                         Commissioner
                         Vice President
 Iqbal Latanro                                           OJK        AGMS dated March 10, 2021                    September 6, 2021
                         Commissioner/Independent
 Armand B. Arief         Independent Commissioner        OJK        EGMS dated November 27, 2019                 May 14, 2020

 Ahdi Jumhari Luddin     Independent Commissioner        OJK        EGMS dated November 27, 2019                 March 16, 2020

 Sentot A. Sentausa      Independent Commissioner        OJK        AGMS dated March 2, 2022                     August 8, 2022

 Andin Hadiyanto         Commissioner                    OJK        EGMS dated November 27, 2019                 July 10, 2020

 Herry Trisaputra Zuna   Commissioner                    OJK        AGMS dated March 2, 2022                     October 11, 2022

 Himawan Arief Sugoto    Commissioner                    OJK        AGMS dated March 2, 2022                     October 3, 2022

 Mohamad Yusuf
                         Commissioner                    OJK        EGMS dated January 11, 2023                  June 07, 2023
 Permana




Composition of the Board of Commissioners Period August 12, 2023 – December 31, 2023

On August 12, 2023, Ahdi Jumhari Luddin as Independent Commissioner of the Company passed away, thereby ending his term of
office automatically. Thus, the composition of the Board of Commissioners for the period August 12, 2023 to December 31, 2023
was 8 (eight) people consisting of 1 (one) Main/Independent Commissioner, 1 (one) Deputy Main/Independent Commissioner, 2 (two)
Independent Commissioners and 4 (four) Commissioners. The entire Board of Commissioners was domiciled in the working area of the
Company’s Head Office. The composition and basis for the appointment of the Board of Commissioners can be seen in the table below.

Table of Composition and Basis for Appointment of the Board of Commissioners
period January 11, 2023 – August 12, 2023
        Name                      Position           Organizer               Basis of Appointment                  Effective Date
                         President/Independent
 Chandra M. Hamzah                                      OJK         EGMS dated November 27, 2019              May 4, 2020
                         Commissioner
                         Vice President
 Iqbal Latanro                                          OJK         AGMS dated March 10, 2021                 September 6, 2021
                         Commissioner/Independent
 Armand B. Arief         Independent Commissioner       OJK         EGMS dated November 27, 2019              May 14, 2020

 Sentot A. Sentausa      Independent Commissioner       OJK         AGMS dated March 2, 2022                  August 8, 2022

 Andin Hadiyanto         Commissioner                   OJK         EGMS dated November 27, 2019              July 10, 2020

 Herry Trisaputra Zuna   Commissioner                   OJK         AGMS dated March 2, 2022                  October 11, 2022

 Himawan Arief Sugoto    Commissioner                   OJK         AGMS dated March 2, 2022                  October 3, 2022

 Mohamad Yusuf
                         Commissioner                   OJK         EGMS dated January 11, 2023               June 07, 2023
 Permana




144          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




Board of Sharia Supervisory
Profile


                                                           PROF. DR. H. MUHAMMAD QURAISH SHIHAB, M.A
                                                           Chairman of the Sharia Supervisory Board




                                                       Indonesian Citizen, 80 years old as of December 2023,
                                                       domiciled in South Jakarta.




     Educational Background
     •   Bachelor (S1) in Tafsir and Hadith from Al-Azhar University, Cairo, Egypt (1967).
     •   Postgraduate (Masters) in Tafsir and Hadith from Al-Azhar University, Cairo, Egypt (1969).
     •   Doctorate (S3) in Tafsir and Hadith from Al-Azhar University, Cairo, Egypt (1982).

     Certifications
     • Ijtima’Sanawi & Semiloka DPS-DSM MUI (2019).
     • Ijtima’Sanawi & Annual Meeting DPS VIII (2023)

     Work Experience
     • Chairman of the Sharia Supervisory Board of Bank BTN (2019 - present).
     • Founder and Member of the Council of Muslim Elders (2014 - present).
     • Member of Eminent Person Group Indonesia Malaysia Person Group Indonesia Malaysia (2010).
     • Ambassador Extraordinary and Plenipotentiary to Arabia, Egypt and Djibouti (1998 - 2002).
     • Minister of Religion of the Republic of Indonesia (1998).
     • Member of the National Research Council (1995 - 1999).
     • Member of the National Accreditation Board (1994 - 1998).
     • Director of MUI Ulama Cadreship (1994 - 1997).
     • Member of DPS Bank Muamalat (1992 - 1999).
     • Chancellor of IAIN Syarif Hidayatullah (1992 - 1998).
     • Member of Pentashih Al-Qur’an, Ministry of Religion of the Republic of Indonesia (1989 - present).
     • Member of the National Education Advisory Board (1988 - 1996).
     • Member of the MPR-RI for the 1982-1987 period and the period (1987 - 2002).
     • Chairman of the Central Indonesian Ulema Council (MUI) (1985 - 1998).
     • Deputy Chancellor of IAIN Alauddin (1974 - 1980).
     • Assistant Lead Coordinator for the Eastern Indonesian Police in the Mental Sector (1973 - 1975).
     • Coordinator of Private Islamic Colleges in Eastern Indonesia (Kopertis Eastern Region) (1967 - 1980).

     Legal Basis of Appointment
     Served as Chairman of the Sharia Supervisory Board for the first time through the results of the Company’s Annual General Meeting of
     Shareholders (AGMS) on March 23, 2018 and was declared effective by the Financial Services Authority (OJK) on January 10, 2019.
     Then he was reappointed as Chairman of the Sharia Supervisory Board for the second time at the 2023 General Meeting of Shareholders
     on March 16, 2023.

     Period of Office
     • March 23, 2018 - 2023 GMS, First Period
     • March 16, 2023 - 2028 GMS, Second Period

     Concurrent Position
     • Founder and Member of the Council of Muslim Elders (2014 - present).
     • Member of Pentashih Al-Qur’an, Ministry of Religion of the Republic of Indonesia (1989 - present).

     Concurrent Position in Another Public Company
     Chairman of the Sharia Supervisory Board CIMB Niaga Sharia Business Unit (2019-present).

     BTN Share Ownership
     As of December 31, 2023, Has no ownership of shares.



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                  Company
                  Profile




                                                            MOHAMAD BAGUS TEGUH PERWIRA, LC, MA
                                                            Member of Sharia Supervisory Board




                                                        Indonesian Citizen, 45 years old as of December 2023,
                                                        domiciled in Bekasi.




       Educational Background
       •   Bachelor’s Degree from Faculty of Dirasat Islamiyah Wal Arabiyah, Al-Azhar University of Cairo-Egypt (1999).
       •   Islamic Economic Studies Program, Post Graduate School of UIN Syarif Hidayatullah Jakarta (2007).


       Certifications
       • Certified Financial Planner (CFP®️) (2010).
       • Associate Estate Planning Practitioner (AEPP®️) (2011).
       • Qualified Wealth Planner (QWP) (2011).
       • Izin sebagai Ahli Syariah Pasar Modal (ASPM) – Otoritas Jasa Keuangan (OJK) (2016).
       • Kompetensi Pengawas Syariah - Lembaga Sertifikasi Profesi-Majelis Ulama Indonesia (LSPMUI) (2016).
       • Assesor Kompetensi – BNSP (2017).
       • Ijtima’Sanawi & Annual Meeting DPS VIII (2023).


       Work Experience
       • Member of the Sharia Supervisory Board of PT Bank Tabungan Negara, Tbk (Persero) (2021 - present).
       • Deputy Secretary of the Daily Executive Board, National Sharia Council-Indonesian Ulema Council (2020 - present).
       • Secretary for Capital Markets Daily Executive Agency, National Sharia Council-Indonesian Ulema Council (2015 - 2020).
       • Chairman of the BRI DPLK Sharia Supervisory Board (2018 - 2019).
       • Chairman of the Sharia Supervisory Board of PT Aberdeen Standard Investment Indonesia (2015 - 2021).
       • Chairman of the Sharia Supervisory Board of PT Indosurya Asset Management (2015 - 2017).
       • Trainer at DSN-MUI Institute (November 2017 - present).
       • Member of the Sharia Supervisory Board of PT Schroder Investment Management Indonesia. (2009 - 2022).
       • Lecturer at Trisakti University (2009 - 2013).
       • Head Planner PT Quantum Magna (2007 - 2014).
       • Lecturer at Muhammadiyah University Prof.Dr. Hamka (2007 - 2009).
       • Consultant at PT Batasa Tazkia (2004 - 2009).


       Legal Basis of Appointment
       Served as Member of the Sharia Supervisory Board for the first time since the results of the Company’s Annual General Meeting of
       Shareholders (AGMS) on March 10, 2021 and was declared effective by the Financial Services Authority (FSA) on June 2, 2021.


       Period of Office
       March 10, 2021 – GMS of 2026, The First Term


       Concurrent Position
       Member of the Sharia Supervisory Board of PT Schroder Investment Management Indonesia.


       Concurrent Position in Another Public Company
       • Member of the Sharia Supervisory Board of PT OCBC NISP Tbk.
       • Member of the Sharia Supervisory Board of PT Bank Maybank Indonesia Tbk.


       BTN Share Ownership
       As of December 31, 2023, Has no ownership of shares.




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                                                                                          2023 Annual Report




                                                     MUHAMMAD FAIZ, LC, MA
                                                     Member of Sharia Supervisory Board




                                                 Indonesian Citizen, 49 years old as of December 2023,
                                                 domiciled in Jakarta.




Educational Background
•   Bachelor (S1) Faculty of Sharia, Islamic University of Madinah, Saudi Arabia (1997)
•   Master (S2) Faculty of Daarul Ulum Cairo University, Egypt (1999).


Certifications
• Sharia Supervisory Board Level 1 Certification (2008).
• Sharia Supervisory Board Level 2 Certification (2013).



Work Experience
• Member of the Sharia Supervisory Board of PT Bank Tabungan Negara, Tbk (Persero) (2023 - present).
• Nahdlatul Ulama Executive Board (PB) (2022- present).
• Deputy Rais PW Nahdlatul Ulama DKI Jakarta (2021-2022).
• Chairman of the Sharia Supervisory Board of PT Bank Tabungan Pensiunan Nasional (BTPN) Syariah (2017-present)
• Chairman of the Sharia Supervisory Board of the Sharia Business Unit of PT Bank Permata, Tbk. (2014-present).
• Chairman of the Sharia Supervisory Board of PT Indomobil Multi Finance Indonesia Syariah (2012-present)
• Deputy Secretary of the MUI Fatwa Commission (2010-present).
• Member of the Sharia Supervisory Board of the Sharia Business Unit of PT Bank Permata, Tbk. (2008-2014).
• Deputy PP Administrator Daarul Rahman (2008-present).


Legal Basis of Appointment
Appointed as Member of the Sharia Supervisory Board for the first time based on a Decree from the Financial Services Authority on
October 18, 2023 and was declared effective on November 29, 2023.


Period of Office
November 29, 2023 - GMS 2028, first period


Concurrent Position
• Nahdlatul Ulama Executive Board (PB) (2022- present).
• Chairman of the Sharia Supervisory Board of PT Bank Tabungan Pensiunan Nasional (BTPN) Syariah (2017-present)
• Chairman of the Sharia Supervisory Board of PT Indomobil Multi Finance Indonesia Syariah (2012-present)
• Deputy Secretary of the MUI Fatwa Commission (2010-present).
• Deputy PP Administrator Daarul Rahman (2008-present).


Concurrent Position in Another Public Company
• Chairman of the Sharia Supervisory Board of the Sharia Business Unit of PT Bank Permata, Tbk. (2014-present).


BTN Share Ownership
As of December 31, 2023, Has no ownership of shares.




                                                                    PT Bank Tabungan Negara (Persero) Tbk                  147
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                  Company
                  Profile




                                                             DR. H. MOHAMAD HIDAYAT, MBA, MH*
                                                             Member of Sharia Supervisory Board
                                                             Resigned from office on March 15, 2023




                                                         Indonesian Citizen, 55 years old as of December 2023,
                                                         domiciled in Jakarta.




       Educational Background
       •   Bachelor (S1) Faculty of Sharia from IAIN Jakarta (1992).
       •   Master (S2) of Business Administration (MBA) from IPWI Jakarta.
       •   Masters (S2) in Legal Studies from the Institute at Business Law & Legal Management (IBLAM) Jakarta College of Legal Studies (2003).
       •   Doctorate (S3) in Islamic Economics and Finance from Trisakti University, Jakarta (2014).


       Certifications
       Ijtima’Sanawi & Semiloka DPS-DSM MUI (2019).


       Work Experience
       • Member of the Sharia Supervisory Board of PT Bank Syariah Indonesia Tbk (2021 – present)
       • Member of DPS Allianz Syariah (2020 - 2023).
       • Khatib remains OJK Mosque (2015 - 2020).
       • Caretaker of Tahfiz Al Qur’an Al Wasiah Islamic Boarding School, Jakarta (2007 - present).
       • Member of the Sharia Supervisory Board of Bank BTN (2005 - present).
       • The Khatib remains the Presidential Palace Mosque (2005 - 2020).
       • Member of DPS Bank Syariah Mandiri (1999 - 2021).
       • Khatib remained at the Bank Indonesia Mosque (1999 - 2000).


       Legal Basis of Appointment
       Served as Member of the Sharia Supervisory Board for the first time based on the results of the Company’s Annual General Meeting of
       Shareholders (AGMS) on March 23, 2018.


       Period of Office
       March 23, 2018 - March 15, 2023, Second Period


       Concurrent Position
       • Member of the Sharia Supervisory Board of PT Bank Syariah Indonesia Tbk (2021 – present)
       • Caretaker of Tahfiz Al Qur’an Al Wasiah Islamic Boarding School, Jakarta (2007 - present).
       • Member of the Sharia Supervisory Board of Bank BTN (2005 - present).


       Concurrent Position in Another Public Company
       Does not have concurrent positions in other public companies.


       BTN Share Ownership
       As of December 31, 2023, Has no ownership of shares.




148   PT Bank Tabungan Negara (Persero) Tbk
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Affiliation of the Board of Sharia Supervisory
Table of Affiliation of the Board of Sharia Supervisory
                                    Financial Relations, Family and Management of the Sharia Supervisory Board

                                                         Financial Relations With                      Family Relations With
                                                                                                                                            Management
                                                Board of          Board of     Controlling   Board of          Board of     Controlling      Relations
        Name                  Position
                                              Commissioners       Directors   Shareholders Commissioners       Directors   Shareholders

                                               Yes      No        Yes   No    Yes      No      Yes    No       Yes   No    Yes       No     Yes     No
 Prof. Dr. H.            Chairman of the
 Muhammad Quraish        Sharia Supervisory              √               √             √               √              √               √                √
 Shihab, MA              Board
 Mohamad Bagus           Member of Sharia
                                                         √               √             √               √              √               √                √
 Teguh Perwira, Lc, MA   Supervi-sory Board
 Muhammad Faiz,          Member of Sharia
                                                         √               √             √               √              √               √                √
 Lc, MA                  Supervi-sory Board




Changes in the Composition of Members of the Sharia Supervisory Board and the
Reasons for The Change

The appointment of the Company’s Sharia Supervisory Board was based on the requirements of the Sharia Supervisory Board in
accordance with Bank Indonesia Regulation No. 11/10/ PBI/2009 concerning Sharia Business Units as amended by Bank Indonesia
Regulation No. 15/14/PBI/2013 namely Members of the Sharia Supervisory Board must have integrity, competence and reputation
in the financial sector. The entire Sharia Supervisory Board was domiciled in the working area of the BTN Head Office. During 2023,
there has been a change in the composition of the members of the Sharia Supervisory Board. Changes in the composition of members
of the Sharia Supervisory Board were carried out based on the Company’s needs. Changes in the composition of members of the Sharia
Supervisory Board are as follows:


Composition of The Sharia Supervisory Board Period January 1, 2023 – March 15, 2023

The composition of the Sharia Supervisory Board for the period January 1, 2023 to March 15, 2023 was 3 (three) people consisting
of 1 (one) Chairman of the Sharia Supervisory Board and 2 (two) members of the Sharia Supervisory Board. The composition and basis
for appointment of the Sharia Supervisory Board can be seen in the table below.

Table of Composition and Basis for Appointment of the Sharia Supervisory Board
Period January 1, 2023 – March 15, 2023
                   Name                              Position       Organizer                Basis of Appointment                     Effective Date
 Prof. Dr. H. Muhammad Quraish Shihab, MA       Chair-man               OJK         AGMS dated March 23, 2018                    January 10, 2019
 Dr. H. Mohamad Hidayat, MBA, MH                Mem-ber                 OJK         AGMS dated March 23, 2018                    -
 Mohamad Bagus Teguh Perwira, Lc, MA            Mem-ber                 OJK         AGMS dated March 10, 2021                    June 2, 2021



Composition of The Sharia Supervisory Board Period March 16, 2023 – October 17, 2023

On March 16, 2023, the General Meeting of Shareholders approved the dismissal of Prof. Dr. H Muhammad Quraish Shihab from
the General Chair of SSB and Dr. H. Mohamad Hidayat, MBA, MH from SSB members. Then, the GMS approved and ratified the re-
appointment of Muhammad Quraish Shihab as Chairman of the Company’s Sharia Supervisory Board for the second period. Thus, the
composition of the Sharia Supervisory Board for the period March 16, 2023 to October 17, 2023 was 2 (two) people consisting of 1
(one) Chairman of the Sharia Supervisory Board and 1 (one) member of the Sharia Supervisory Board. The composition and basis for
appointment of the Sharia Supervisory Board can be seen in the table below.

Table of Composition and Basis for Appointment of the Sharia Supervisory Board
Period March 16, 2023 – October 17, 2023
                Name                       Position             Organizer                   Basis of Appointment                      Effective Date
 Prof. Dr. H. Muhammad Quraish                                                  -   AGMS dated March 23, 2018                    -   January 10, 2019
                                         Chair-man                OJK
 Shihab, MA                                                                     -   AGMS dated March 16, 2023                    -   March 16, 2023
 Mohamad Bagus Teguh Perwira, Lc,
                                         Mem-ber                  OJK           AGMS dated March 10, 2021                        June 2, 2021
 MA



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                         Company
                         Profile




Composition of The Sharia Supervisory Board Period October 18, 2023 – December 31, 2023

On October 18 2023, Muhammad Faiz, Lc, MA was appointed as Member of the Sharia Supervisory Board. Thus, the composition
of the Sharia Supervisory Board for the period October 18, 2023 to December 31, 2023 was 3 (three) people consisting of 1 (one)
Chairman of the Sharia Supervisory Board and 2 (two) members of the Sharia Supervisory Board. The composition and basis for
appointment of the Sharia Supervisory Board can be seen in the table below.

Table of Composition and Basis for Appointment of the Sharia Supervisory Board
Period October 18, 2023 – December 31, 2023
               Name                        Position         Organizer                  Basis of Appointment                   Effective Date

 Prof. Dr. H. Muhammad Quraish                                               -   AGMS dated March 23, 2018               -   January 10, 2019
                                        Chairman                OJK
 Shihab, MA                                                                  -   AGMS dated March 16, 2023               -   March 16, 2023

 Mohamad Bagus Teguh Perwira, Lc,
                                        Member                  OJK          AGMS dated March 10, 2021                   June 2, 2021
 MA

                                                                             FSA Decision Letter dated     October 18,
 Muhammad Faiz, Lc, MA                  Member                  OJK                                                      November 29, 2023
                                                                             2023



Profile of
Executive Offices
Senior Executive Vice President




                                                   BENNY YOSLIM
                                                   SEVP Wholesale Banking

                                                   Indonesian Citizen, 43 years old as of December 2023,
                                                   domiciled in West Jakarta.




              Educational background
              •   Bachelor (S1) in Industrial Engineering, Trisakti University, Jakarta (2002).
              •   Master (S2) Business Administration, Bandung Institute of Technology, Bandung (2005).

              Certification
              Banking Risk Management Level 5 by BSMR (Refreshment 2020).

              Work experience
              • SEVP Wholesale Banking Bank BTN (Maret 2021 – present).
              • Corporate Banking Director PT Bank Negara Indonesia (Persero) Tbk (2020).
              • General Manager, Local Corporate & Multinational Company 1 Division PT Bank Negara Indonesia (Persero) Tbk (2018 – 2020).
              • Deputy GM, BUMN & Government Institution Division PT Bank Negara Indonesia (Persero) Tbk (2016 – 2017).
              • Team Leader, BUMN & Government Institution Division PT Bank Negara Indonesia (Persero) Tbk (2013 – 2016).



              Legal Basis for Appointment
              Served as SEVP of the Company for the first time since March 1, 2021 based on the Decree of the Company’s Directors Number 248/
              DIR/2021 dated March 3, 2021.

              BTN Share Ownership
              As of December 31, 2023, owned 501,200 shares/0.0035712%




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                                                                                                     2023 Annual Report




                                                 ALEX SOFJAN NOOR
                                                 SEVP Operations

                                                 Indonesian Citizen, 57 years old as of December 2023,
                                                 domiciled in West Jakarta.




             Educational background
             Bachelor of Accounting from Islamic University of Indonesia (1991).

             Certification
             • General Banking Refreshment Level 3 by LPPI (2022).
             • International Risk Management Refreshment & Wealth Management Certification Program by MMUGM and IBI (2022).

             Work experience
             • SEVP Operations Bank BTN (June 2022 – present).
             • SEVP Human Capital Bank BTN (January 2022 – June 2022).
             • Sharia Business Division Head Bank BTN (2020 – January 2022).
             • Sharia Division Head Bank BTN (2019 – 2020).
             • Commercial Risk Division Head Bank BTN (2018 – 2019).

             Legal Basis for Appointment
             Served as SEVP of the Company for the first time since January 3, 2022 based on the Decree of the Company’s Directors Number 06/
             DIR/2022 dated January 4, 2022.

             BTN Share Ownership
             As of December 31, 2023, owned 1,129,726 shares/0.0080497%




As of December 31, 2023, the position of SEVP Compliance & Legal remained unfilled. Supervision of the SEVP Compliance & Legal
work unit rested with the Director of Human Capital, Compliance & Legal until SEVP Compliance & Legal was appointed.




                                                                                   PT Bank Tabungan Negara (Persero) Tbk               151
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Profile of Officers One Level Under the Board of Directors

                                                      Educational background
                                                      •   Masters (S-2) in Accounting from the University of Queensland in 2003
                                                      •   Bachelor (S-1) in Accounting from the University of Indonesia in 1998
                                                      •   Diploma (D-3) in Accounting from the State College of Accountancy (STAN) 1995


                                                      Work experience
                                                      • 2021 served as Internal Audit Division Head of the Company


                                                      Period of Service
                                                      In office since: July 26, 2021




Hendratno Tri Wibowo
Internal Audit Division Head

Indonesian Citizen, 49 years old as of December
2023, domiciled in South Tangerang.




                                                      Educational background
                                                      • Masters (S-2) in Financial Management from UGM & University of Kentucky USA
                                                        2004.
                                                      • Bachelor (S-1) in Accounting from YAI College of Economics in 1995.


                                                      Work experience
                                                      • 2021 served as Treasury Division Head
                                                      • 2019 served as Corporate Syndication & Transaction Banking Division Head
                                                      • 2017 served as Corporate & Syndication Loan Division Head
                                                      • 2015 served as Institutional Banking Division Head


                                                      Period of Service
                                                      In office since: April 01, 2021

Sindhu Rahadian Ardita
Treasury Division Head

Indonesian Citizen, 50 years old as of December
2023, domiciled in Central Jakarta.




                                                      Educational background
                                                      • Bachelor’s degree (S1) in Mineral Technology from the Veterans National
                                                        Development University, Yogyakarta in 1993
                                                      • Masters (S-2) in Financial Management from UGM & University of Kentucky USA in
                                                        2004


                                                      Work experience
                                                      • 2023 served as Service Quality & Distribution Division Head
                                                      • 2021 served as Retail Funding & Services Division Head
                                                      • 2021 served as Regional Office Head I (West Java)
                                                      • 2020 served as Regional Office Head VI (Central Java)
                                                      • 2018 served as Retail Funding & Services Division Head


                                                      Period of Service
Ferry Sipahutar
                                                      In office since: June 05, 2023
Service Quality & Distribution Division Head

Indonesian Citizen, 53 years old as of December
2023, domiciled in Bogor.




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                                                                                       2023 Annual Report




                                                  Educational background
                                                  Bachelor (S-1) in Agriculture from Jenderal Soedirman University in 1994

                                                  Work experience
                                                  • 2023 served as Marketing Communication Division Head
                                                  • 2020 served as Branding & Product Marketing Department Head

                                                  Period of Service
                                                  In office since: April 14, 2023




Farida Andriani W
Marketing Communication Division Head

Indonesian Citizen, 53 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  • Bachelor (S-1) in Business Administration from the University of Indonesia in 1993
                                                  • Masters (S-2) in Commerce from The University of Sydney in 1998


                                                  Work experience
                                                  • 2023 served as Corporate Secretary Division Head
                                                  • 2020 served as Marketing Communication Division Head
                                                  • 2020 concurrently as Digital Channel Division Head


                                                  Period of Service
                                                  In office since: April 14, 2023



Ramon Armando
Corporate Secretary Division Head

Indonesian Citizen, 49 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  • Bachelor (S-1) in Business Administration from the University of Indonesia in 1993
                                                  • Masters (S-2) in Commerce from The University of Sydney in 1998


                                                  Work experience
                                                  • 2022 served as Human Capital Management Division
                                                  • 2021 served as Sharia Funding & Treasury Deputy
                                                  • 2021 served as Sharia Business Deputy
                                                  • 2016 served as Branch Manager of Sharia Jakarta Pasar Minggu


                                                  Period of Service
                                                  In office since: February 14, 2022


Rahmayati
Human Capital Management Division

Indonesian Citizen, 50 years old as of December
2023, domiciled in Jakarta.




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                           Profile




                                                     Educational background
                                                     • Masters (S-2) in HR Management from the PPM Management College in 2003
                                                     • Bachelor (S-1) in Plant Pests from the Bogor Agricultural Institute in 1996


                                                     Work experience
                                                     • 2023 served as Human Capital Business Partner Division Head
                                                     • 2021 served as Human Capital Strategy Division Head


                                                     Period of Service
                                                     In office since: November 01, 2023




Aloysius Wilhelmus Junior
Bakowatun
Human Capital Business Partner Division Head

Indonesian Citizen, 52 years old as of December
2023, domiciled in Jakarta.




                                                     Educational background
                                                     • Masters (S-2) in HR Management and Organization from The London School of
                                                       Economics & Political Science in 2021
                                                     • Bachelor (S-1) in Agricultural Technology from the Bogor Agricultural Institute in
                                                       2012


                                                     Work experience
                                                     • 2023 served as Human Capital Strategy Division Head


                                                     Period of Service
                                                     In office since: November 06, 2023



Aldo Bimantoro
Human Capital Strategy Division Head

Indonesian Citizen, 33 years old as of December
2023, domiciled in Jakarta.




                                                     Educational background
                                                     • 2021 served as Talent Mobility & Development Head at PT Bank Negara Indonesia
                                                       (Persero) Tbk
                                                     • 2019 served as Corporate Culture & Employee Engagement Assistant Vice
                                                       President at PT Bank Negara Indonesia (Persero) Tbk


                                                     Work experience
                                                     • 2023 served as Learning Management Division Head
                                                     • 2022 served as PJ Learning Management Division Head
                                                     • 2022 served as PJ Learning Center Division Head
                                                     • 2021 served as Employee Development Department Head


                                                     Period of Service
                                                     In office since: February 01, 2023
Ade Surya Lesmana
Learning Management Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in South Tangerang.




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                                                                                         2023 Annual Report




                                                    Educational background
                                                    • Masters (S-2) in Marketing Management from Gadjah Mada University in 2004
                                                    • Bachelor (S1) in Development Economics from Gadjah Mada University in 1996


                                                    Work experience
                                                    • 2023 served as PLT Transformation Management Division Head
                                                    • 2021 served as Enterprise Risk Management Division Head
                                                    • 2019 served as Procurement & General Services Division Head


                                                    Period of Service
                                                    In office since: June 02, 2021



Wilson Arafat
Enterprise Risk Management Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in West Jakarta.




                                                    Educational background
                                                    Bachelor (S-1) in Computer Science from Gadjah Mada University in 2003


                                                    Work experience
                                                    2021 served as IT Strategic Planning & Development Division Head


                                                    Period of Service
                                                    In office since: July 29, 2021




Joko Christianto
IT Strategic Planning & Development Division Head

Indonesian Citizen, 43 years old as of December
2023, domiciled in Jakarta.




                                                    Educational background
                                                    • Masters (S-2) in Electrical Engineering from the Bandung Institute of Technology in
                                                      1996
                                                    • Bachelor (S-1) in Electrical Engineering from the Bandung Institute of Technology in
                                                      1993


                                                    Work experience
                                                    • 2023 served as PJ IT Operations Division Head
                                                    • 2021 served as Deputy IT Strategic Planning & Development


                                                    Period of Service
                                                    In office since: August 03, 2023


Danny Sutanto
PJ IT Operations Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Jakarta.




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                            Company
                            Profile




                                                      Educational background
                                                      Bachelor (S-1) in Electrical Engineering from the Bandung Institute of Technology in 2003


                                                      Work experience
                                                      • 2022 served as IT Security Division Head


                                                      Period of Service
                                                      In office since: December 15, 2022




Budi Hariyanto
IT Security Division Head

Indonesian Citizen, 43 years old as of December
2023, domiciled in Jakarta.




                                                      Educational background
                                                      • Masters (S-2) in Management from STIE Indonesia Banking School in 2019
                                                      • Bachelor (S-1) in Management Economics from Jenderal Soedirman University in
                                                        1995


                                                      Work experience
                                                      • 2023 served as Procurement & Fixed Asset Management Division Head
                                                      • 2021 served as IT Operations Division Head
                                                      • 2019 served as PJ. IT Operations Division Head


                                                      Period of Service
                                                      In office since: August 03, 2023


Wahyudi Joko Santoso
Procurement & Fixed Asset Management Division
Head

Indonesian Citizen, 53 years old as of December
2023, domiciled in Bekasi.




                                                      Educational background
                                                      Bachelor (S-1) in Development Economics from Sebelas Maret University in 1995


                                                      Pengalaman Kerja
                                                      • 2018 served as Operations & Business Support Division Head
                                                      • 2017 served as PLT Operation & Business Support Division Head
                                                      • 2016 served as Digital Banking Development Department Head


                                                      Period of Service
                                                      In office since: April 02, 2018




Adee Indriana D
Operations & Business Support Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in Bekasi.




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                                                  Educational background
                                                  • Masters (S-2) in Management from Gadjah Mada University in 2004
                                                  • Bachelor (S-1) in Architectural Engineering from Diponegoro University in 1996


                                                  Pengalaman Kerja
                                                  • 2022 served as Customer Care Division Head
                                                  • 2020 served as Corporate Communication Department Head


                                                  Period of Service
                                                  In office since: December 26, 2022




Eko Hapsoro Susilo
Customer Care Division Head

Indonesian Citizen, 50 years old as of December
2023, domiciled in South Tangerang.




                                                  Educational background
                                                  Bachelor (S-1) in Accounting from Dr Moechtar Talib College of Economics in 1995


                                                  Work experience
                                                  • 2023 served as Finance & Accounting Division Head
                                                  • 2022 served as PJ Finance & Accounting Division Head


                                                  Period of Service
                                                  In office since: February 01, 2023




Fatoni Hudhori
Finance & Accounting Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in South Jakarta.




                                                  Educational background
                                                  Bachelor (S-1) in Civil Engineering from the Bandung Institute of Technology in 1995


                                                  Work experience
                                                  • 2022 served as Sharia Banking Division Head
                                                  • 2021 served as Human Capital Management Division Head
                                                  • 2020 served as Commercial Business Center Head


                                                  Period of Service
                                                  In office since: January 03, 2022




Abdul Firman
Sharia Banking Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in Bekasi.




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                           Profile




                                                     Educational background
                                                     • Masters (S-2) in Financial Management from UGM & University of Kentucky USA in
                                                       2004
                                                     • Bachelor (S-1) in Accounting from Padjadjaran University in 1993


                                                     Work experience
                                                     • 2019 served as Compliance & Governance Division Head
                                                     • 2018 served as PLT Compliance & Governance Division Head
                                                     • 2018 served as Deputy Internal Audit Division Head


                                                     Period of Service
                                                     In office since: September 05, 2019


R. Wahyu B. Witjaksono
Compliance & Governance Division Head

Indonesian Citizen, 53 years old as of December
2023, domiciled in Bekasi.




                                                     Educational background
                                                     • Masters (S-2) Master of Management, Bina Nusantara University in 2006
                                                     • Bachelor (S1) in Computer Science from Bina Nusantara University in 2001


                                                     Work experience
                                                     • 2021 served as Digital Channel Division Head


                                                     Period of Service
                                                     In office since: July 16, 2021




Tan Jacky Chen
Digital Banking Division Head

Indonesian Citizen, 40 years old as of December
2023, domiciled in Tangerang.




                                                     Educational background
                                                     Bachelor (S-1) in Economics from the Islamic University of Indonesia in 1995


                                                     Work experience
                                                     • 2020 served as Commercial Banking Division Head
                                                     • 2018 served as Corporate & Loan Syndication Department Head


                                                     Period of Service
                                                     In office since: December 31, 2019




Sri Astuti
Commercial Banking Division Head

Indonesian Citizen, 50 years old as of December
2023, domiciled in Jakarta.




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                                                                                       2023 Annual Report




                                                  Educational background
                                                  Bachelor (S-1) in Management from Bandar Lampung University in 1994


                                                  Work experience
                                                  • 2021 served as Corporate Syndication & Transaction Banking Division Head
                                                  • 2021 served as Plt. Internal Audit Division Head
                                                  • 2020 served as Deputy Internal Audit Division Head
                                                  • 2018 served as Deputy Regional Manager Regional Office 2
                                                  • 2017 served as Branch Manager Bandung
                                                  • 2015 served as Branch Manager Malang


                                                  Period of Service
                                                  In office since: July 26, 2021

Ricky RS. Pattinggi
Corporate Banking Division Head

Indonesian Citizen, 52 years old as of December
2023, domiciled in Bogor.




                                                  Educational background
                                                  Bachelor (S-1) in Industrial Engineering from the University of North Sumatra in 1996


                                                  Pengalaman Kerja
                                                  • 2022 served as Institutional Funding Division Head
                                                  • 2021 served as PJ Institutional Funding Division Head


                                                  Period of Service
                                                  In office since: January 01, 2022




Erwinta Siswadi
Institusional Funding Division Head

Indonesian Citizen, 52 years old as of December
2023, domiciled in South Tangerang.




                                                  Educational background
                                                  • Masters (S-2) in Economic Law from the University of Indonesia in 2003
                                                  • Bachelor (S-1) in Law from the University of North Sumatra in 1994


                                                  Work experience
                                                  • 2023 served as Legal Division Head
                                                  • 2022 served as PJ Legal Division Head
                                                  • 2021 served as Plt. Legal Division Head


                                                  Period of Service
                                                  In office since: February 01, 2023



Wilson Lie Simatupang
Legal Division Head

Indonesian Citizen, 55 years old as of December
2023, domiciled in Bogor.




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                           Company
                           Profile




                                                     Educational background
                                                     Bachelor (S-1) in Law from Udayana University in 1993


                                                     Work experience
                                                     • 2021 served as Credit Operations Division Head
                                                     • 2021 served as PJ Credit Operations Division Head
                                                     • 2019 served as Branch Manager Bekasi
                                                     • 2018 served as Deputy Regional Manager Business, Regional Office III (East Java)


                                                     Period of Service
                                                     In office since: August 16, 2021



I Gusti Agung Komang
Tri Martha W
Credit Operations Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Jakarta.




                                                     Educational background
                                                     Bachelor (S-1) in Finance & Economics from the University of Oregon in 1996


                                                     Work experience
                                                     • 2020 served as Wealth Management Division Head


                                                     Period of Service
                                                     In office since: December 17, 2020




Frengky Rosadrian Perangin-Angin
Wealth Management Division Head

Indonesian Citizen, 48 years old as of December
2023, domiciled in Jakarta.




                                                     Educational background
                                                     • Masters (S-2) in Management from Gadjah Mada University in 2004
                                                     • Bachelor (S-1) in Development Economics from Padjadjaran University in 1995


                                                     Work experience
                                                     • 2023 served as Non-Subsidized Mortgage Division Head
                                                     • 2019 served as Roll Out Transformation Project Lead


                                                     Period of Service
                                                     In office since: February 01, 2023




Mochamad Yut Penta
Non-Subsidized Mortgage Division Head

Indonesian Citizen, 53 years old as of December
2023, domiciled in Jakarta.




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                                                  Educational background
                                                  Bachelor (S-1) in Fisheries Socioeconomics from Brawijaya University in 2000


                                                  Work experience
                                                  • 2023 served as Personal Banking Division Head


                                                  Period of Service
                                                  In office since: August 09, 2023




Nurkholis Wahyudi
Personal Banking Division Head

Indonesian Citizen, 47 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  Bachelor (S-1) in Economics from Syiah Kuala University in 1997


                                                  Work experience
                                                  • 2023 served as Subsidized Mortgage Division Head
                                                  • 2021 served as Small Medium Enterprise Banking Division Head
                                                  • 2020 served as Retail Credit Risk Division Head
                                                  • 2020 served as Consumer Collection, Recovery & Asset Sales Division Head.


                                                  Period of Service
                                                  Served since: November 01, 2023



Budi Permana
Subsidized Mortgage Division Head

Indonesian Citizen, 47 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  Bachelor (S-1) in Civil Engineering from the University of North Sumatra in 1996


                                                  Work experience
                                                  • 2023 served as Small Medium Enterprise Banking Division Head
                                                  • 2023 served as Deputy Subsidized Mortgage Division
                                                  • 2023 served as Branch Manager KC Bekasi
                                                  • 2020 served as Branch Manager of KC Tangerang


                                                  Period of Service
                                                  In office since: November 01, 2023



Roganda S.M. Siahaan
Small Medium Enterprise Banking Division Head

Indonesian Citizen, 43 years old as of December
2023, domiciled in Tangerang.




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                           Company
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                                                     Educational background
                                                     • Masters (S-2) in Financial Management from UGM & University of Kentucky USA in
                                                       2004
                                                     • Bachelor (S-1) in Law from Wijaya Kusuma University, Purwokerto in 1995


                                                     Work experience
                                                     2021 served as Financial Institution and Capital Market Division Head


                                                     Period of Service
                                                     In office since: April 01, 2021




Hasta Nugraha Utomo
Financial Institusion &
Capital Market Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in Tangerang.




                                                     Educational background
                                                     • Masters (S-2) Master of Business Administration from Gadjah Mada University in
                                                       2023
                                                     • Bachelor (S-1) in Civil Engineering from the Sepuluh November Institute of
                                                       Technology in 2002


                                                     Work experience
                                                     • 2023 served as Consumer Collection Recovery & Asset Sales 1 Division Head
                                                     • 2020 served as Transformation and Partnership Management Division Head
                                                     • 2019 served as Enterprise Risk Management Division Head
                                                     • 2017 served as Retail Risk Division Head.


                                                     Period of Service
                                                     In office since: June 05, 2023
Erwin Dwi Kusuma
Consumer Collection Recovery & Asset Sales 1
Division Head

Indonesian Citizen, 44 years old as of December
2023, domiciled in Jakarta.




                                                     Educational background
                                                     Bachelor (S-1) in Economics in Development Studies from Airlangga University in
                                                     1992


                                                     Work experience
                                                     • 2023 served as Consumer Collection Recovery & Asset Sales 2 Division Head
                                                     • 2021 served as Consumer Collection, Recovery & Asset Sales Division Head
                                                     • 2020 served as PJ Regional Office Head IV (Sumatra)
                                                     • 2019 served as Deputy Regional Manager Support, Regional Office III (East Java)


                                                     Period of Service
                                                     In office since: June 05, 2023


Nurwidi Purboyo
Consumer Collection Recovery & Asset Sales 2
Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Jakarta.



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                                                                                        2023 Annual Report




                                                  Educational background
                                                  Bachelor (S-1) in Law from Padjadjaran University in 1996


                                                  Work experience
                                                  • 2023 served as Commercial Asset Management Division Head
                                                  • 2022 served as Commercial Asset Management 1 Division Head
                                                  • 2020 served as Corporate Secretary Division Head
                                                  • 2019 served as Branch Manager Jakarta Cawang
                                                  • 2017 served as Deputy Branch Manager Bandung


                                                  Period of Service
                                                  In office since: June 05, 2023


Ari Kurniaman
Commercial Asset Management Division Head

Indonesian Citizen, 51 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  Bachelor (S-1) in Development Economics from the University of Lampung in 1990


                                                  Work experience
                                                  • 2021 served as Corporate Strategy & Planning Division Head
                                                  • 2020 served as Retail Funding & Services Division Head


                                                  Period of Service
                                                  In office since: July 19, 2021




Kusumarjono
Corporate Strategy & Planning Division Head

Indonesian Citizen, 55 years old as of December
2023, domiciled in Jakarta.




                                                  Educational background
                                                  • Master (S-2) in Economics Studies from the University of Queensland Australia in 2002
                                                  • Bachelor (S-1) in Economics from the University of Indonesia in 1996


                                                  Work experience
                                                  • 2020 served as Investor Relations & Research Division Head and Chief Economist
                                                  • 2018 served as Investor Relations Department Head and Chief Economist


                                                  Period of Service
                                                  In office since: January 28, 2020




Winang Budoyo
Investor Relation & Research Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Tangerang.




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                            Company
                            Profile




                                                      Educational background
                                                      Bachelor (S-1) in Environmental Engineering from the Bandung Institute of Technology
                                                      in 1996


                                                      Work experience
                                                      • 2021 served as Retail Credit Risk Division Head
                                                      • 2018 served as Corporate Strategy & Performance Management Division Head


                                                      Period of Service
                                                      In office since: July 01, 2021




Beki Kanuwa
Retail Risk Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Tangerang.




                                                      Educational background
                                                      Bachelor (S-1) in Agricultural Technology from Gadjah Mada University in 1996


                                                      Work experience
                                                      • 2023 served as Wholesale Credit Risk Division Head
                                                      • 2021 served as Commercial Risk Division Head
                                                      • 2020 served as Branch Manager Jakarta Cawang
                                                      • 2018 served as Branch Manager Ciputat


                                                      Period of Service
                                                      In office since: August 03, 2023



Henri Ari Wibawa
Wholesale Credit Risk Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Jakarta.




                                                      Educational background
                                                      • Masters (S-2) of Business Administration from Gajah Mada University in 2019
                                                      • Bachelor (S-1) in Industrial Engineering from Pasundan University in 1994


                                                      Work experience
                                                      • 2021 served as Policy & Procedure Division Head
                                                      • 2019 served as Policy, Procedure & BPR Division Head
                                                      • 2019 served as Policy & Procedure Desk Head
                                                      • 2018 served as PLT. Policy & Procedure Desk Head


                                                      Period of Service
                                                      In office since: September 16, 2019


L. Esti Dwi Retnosari
Policy, Procedure & BPR Division Head

Indonesian Citizen, 54 years old as of December
2023, domiciled in Bekasi.




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                                                                                            2023 Annual Report




                                                  Educational background
                                                  Bachelor (S-1) in Physics from the Bandung Institute of Technology in 2001


                                                  Work experience
                                                  2021 served as Data Management & Analytics Division Head.


                                                  Period of Service
                                                  In office since: May 01, 2021




Indra Hidayatullah
Data Management & Analytics Division Head

Indonesian Citizen, 47 years old as of December
2023, domiciled in South Tangerang.




                                                  Educational background
                                                  • Masters (S-2) in Financial Management from the Bogor Agricultural Institute in
                                                    1997
                                                  • Bachelor (S-1) in Soil Science from the Bogor Agricultural Institute in 1990


                                                  Work experience
                                                  • 2022 served as Wholesale Transaction Division Head


                                                  Period of Service
                                                  In office since: November 01, 2022
                                                  *) Resign from office as of December 20, 2023




Teddy Yunirman Danas
Wholesale Transaction Division Head

Indonesian Citizen, 57 years old as of December
2023, domiciled in South Tangerang.




                                                  Educational background
                                                  Bachelor (S-1) in Management from the University of North Sumatra in 1993


                                                  Work experience
                                                  • 2022 served as Regional Office Head I (West Java)
                                                  • 2021 served as Commercial Asset Management 1 Division Head
                                                  • 2020 served as PJ Commercial Risk Division Head
                                                  • 2019 served as PJ Regional Office Head IV (Sumatra)
                                                  • 2018 served as Branch Manager Bekasi


                                                  Period of Service
                                                  In office since: July 11, 2022


Benjamen Sihombing
Regional Office Head I (West Java)

Indonesian Citizen, 54 years old as of December
2023, domiciled in Bekasi.




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                            Profile




                                                      Educational background
                                                      Bachelor (S-1) in Management Economics from UPN Veteran in 1992


                                                      Work experience
                                                      • 2023 served as Regional Office Head II (Jakarta)
                                                      • 2022 served as Non Subsidized Mortgage & Personal Lending Div Head
                                                      • 2021 served as Regional Office Head III (East Java)
                                                      • 2020 served as Branch Manager Jakarta Harmoni
                                                      • 2018 served as Branch Manager Jakarta Kuningan


                                                      Period of Service
                                                      In office since: February 01, 2023


Iriska Dewayani E
Regional Office Head II (Jakarta)

Indonesian Citizen, 55 years old as of December
2023, domiciled in Jakarta.




                                                      Educational background
                                                      Bachelor (S-1) in Economics from Jenderal Soedirman University in 1996


                                                      Work experience
                                                      • 2022 served as DRM Business Regional Office III (East Java)
                                                      • 2020 served as DRM Support Regional Office III (East Java)
                                                      • 2019 served as Accounting Policy, Planning & Service Department Head


                                                      Period of Service
                                                      In office since: February 01, 2023




Yenny Herlina
Regional Office Head III (East Java, Bali, &
Nusa Tenggara)

Indonesian Citizen, 51 years old as of December
2023, domiciled in Surabaya.




                                                      Educational background
                                                      Bachelor (S-1) in Accounting Economics from Sebelas Maret University in 1993


                                                      Work experience
                                                      • 2021 served as Regional Office Head IV (Sumatra)
                                                      • 2021 served as Branch Manager KC Makassar
                                                      • 2019 served as Commercial Asset Management 1 Division Head
                                                      • 2018 served as Branch Manager of KC Banjarmasin


                                                      Period of Service
                                                      In office since: July 19, 2021



M. Amin Sholeh
Regional Office Head IV (Sumatera)

Indonesian Citizen, 54 years old as of December
2023, domiciled in Medan.




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                                                                    Educational background
                                                                    Bachelor (S-1) in Mining Engineering from the Bandung Institute of Technology in 1995


                                                                    Work experience
                                                                    • 2023 served as Regional Office Head V (Sulawesi)
                                                                    • 2021 served as Commercial Asset Management 2 Division Head
                                                                    • 2020 served as PLT Regional Office Head III (East Java)
                                                                    • 2019 served as Deputy Regional Manager Business, Regional Office III (East Java)


                                                                    Period of Service
                                                                    In office since: June 05, 2023



Paulus HES
Regional Office Head V (Kalimantan, Sulawesi,
Maluku, and Papua )

Indonesian Citizen, 52 years old as of December
2023, domiciled in Makasar.



                                                                    Educational background
                                                                    • Bachelor (S-1) in Management from Brawijaya University in 1996
                                                                    • Masters (S-2) in Management from the University of Indonesia in 2005


                                                                    Work experience
                                                                    • 2023 served as Regional Office Head VI (Central Java)
                                                                    • 2022 served as Regional Office Head V (Sulawesi)
                                                                    • 2021 served as Deputy Regional Manager Business, Regional Office V (Sulawesi)
                                                                    • 2020 served as Branch Manager of KC Surabaya
                                                                    • 2018 served as Branch Manager of KC Denpasar


                                                                    Period of Service
                                                                    In office since: June 05, 2023

Harman Soesanto
Regional Office Head VI (Central Java and DIY)

Indonesian Citizen, 53 years old as of December
2023, domiciled in Semarang.




Profile of Officers Two Level Under the Board of Directors

             Name                                      Work unit                                                  Job Title

 DIVISION

 Waluyo                            Commercial Asset Management Division                Deputy Commercial Asset Management Division Head

 Achmad Zuchridin                  Commercial Banking Division                         Deputy Commercial Banking Division Head

 Lysmauli Siregar                  Credit Operations Division                          Deputy Credit Operations Division Head

 Lusiana Anjarsari                 Internal Audit Division                             Deputy Internal Audit Division Head

 Moh. Iwan Somantri                IT Operations Division                              Deputy IT Operations Division Head

 Ghulam Mahdi Muharram             IT Strategic Planning & Development Division        Deputy IT Strategic Planning & Development Division Head

 Dedy Lesmana                      Non-Subsidized Mortgage Division                    Deputy Non-Subsidized Mortgage Division Head

 Muhamad Irwan                     Operations & Business Support Division              Deputy Operations & Business Support Division Head

 Ide Kusuma Pribadi                Sharia Banking Division                             Sharia Financing Business Deputy

 Katon Djoko Soekarsono            Sharia Banking Division                             Sharia IT & Operations Deputy

 Asvianti Handaru W.               Sharia Banking Division                             Sharia Funding & Treasury Deputy


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                         Company
                         Profile




                Name                                    Work unit                                          Job Title

 Cuk Hidayat                       Sharia Banking Division                     Sharia Support Deputy

 Nur Khasanah                      Treasury Division                           Deputy Treasury Division Head

 Agus Sumaryono                    Wholesale Credit Risk Division              Deputy Wholesale Credit Risk Division Head

 REGIONAL OFFICE

 Sri Soekminiarni                                                              Deputy Regional Manager Business
                                   Regional Office 1
 Edward Melvin Purba                                                           DRM Service & Collection

 Hery Sarjito                                                                  Deputy Regional Manager Business
                                   Regional Office 2
 Wiyaksono                                                                     DRM Service & Collection

 B. Bratawan Budi A                                                            Deputy Regional Manager Business
                                   Regional Office 3
 Paulus Puspo Priyanto                                                         DRM Service & Collection

 Tiana Elma Hetty                                                              Deputy Regional Manager Business
                                   Regional Office 4
 Imam Subiyantoro                                                              DRM Service & Collection

 Daulat Marpaung                                                               Deputy Regional Manager Business
                                   Regional Office 5
 Fachri                                                                        DRM Service & Collection

 Denny Kriswana                                                                Deputy Regional Manager Business
                                   Regional Office 6
 Mawardi                                                                       DRM Service & Collection




Profile
of Employee


Employee Composition by Gender

Table of Employee Composition by Gender                                                                                             (in person)


                             Gender                                              2023                                     2022
 Male                                                                           6,288                                     6,261
 Female                                                                         5,757                                     5,598
 Total                                                                          12,045                                  11,859




Employee Composition by Organizational Level

Table of Employee Composition by Organizational Level                                                                               (in person)


                                                                    2023                                           2022
            Organizational Level
                                                       Male         Female     Total           Male               Female          Total
 Level 22                                                 2                -        2                  -                 1             1
 Level 19-21                                            134            24        158              116                   19          135
 Level 15-18                                           1,061          376      1,437              921                  349        1,270
 Level 13-14                                           1,762         1,149     2,911            1,724              1,080          2,804
 Level 11-12                                           2,574         3,129     5,703            2,565              2,945          5,510
 Level 8-10                                             755          1,079     1,834              935              1,204          2,139
 Total                                                 6,288         5,757     12,045           6,261              5,598          11,859




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                                                                                    2023 Annual Report




Employee Composition by Age Range

Table of Employee Composition by Age Range                                                                             (in person)


                                                       2023                                         2022
                  Age range
                                       Male           Female          Total         Male           Female            Total
 ≥ 51                                    720             231            951                682             254               936
 31–50                                 3,284           2,536          5,820             3,088             2,429         5,517
 ≤ 30                                  2,284           2,990          5,274             2,491             2,915         5,406
 Total                                  6,288          5,757         12,045             6,261             5,598        11,859




Employee Composition by Level of Education

Table of Employee Composition by Level of Education                                                                    (in person)


                                                       2023                                         2022
               Level of Education
                                       Male           Female          Total         Male           Female            Total
 Doctorate Degree                        367             168            535           348                159           507
 Bachelor                              5,254           4,627          9,881         5,154           4,353            9,507
 Diploma                                 539             734          1,273           603                796         1,399
 Senior High School                      128             228            356           156                290           446
 Total                                  6,288          5,757         12,045          6,261          5,598           11,859




Employee Composition by Employment Status

Table of Employee Composition by Employment Status                                                                     (in person)


                                                      2023                                         2022
             Employment Status
                                       Male           Female          Total         Male           Female            Total
 Permanent                             5,984           5,286         11,270         5,819           4,892           10,711
 Contract                                304            471             775           442                706         1,148
 Total without Outsourced Employees    6,288           5,757         12,045         6,261           5,598           11,859
 Outsource                             6,930           1,157          8,087         7,093           1,094            8,187
 Total with Outsourced Employees      13,218           6,914         20,132         13,354          6,692           20,046




Employee Composition by Years of Service

Table of Employee Composition by Years of Service                                                                      (in person)


                                                      2023                                          2022
               Years of Service
                                       Male           Female          Total         Male           Female            Total
 Above 30th                                     50             58             108            64                63            127
 Above 25th-30th                              642            179              821          533             218               751
 Above 20th-25th                              129              21             150          332                 43            375
 Above 15th-20th                              112            231              343          109             232               341
 Above 10th-15th                          1,046          1,345           2,391             749            1,008         1,757
 Above 5th-10th                           2,672          1,758           4,430         2,377              1,653         4,030
 Above 0-5th                              1,637          2,165           3,802         2,097              2,381         4,478
 Total                                    6,288           5,757         12,045          6,261             5,598        11,859




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                             Company
                             Profile




Shareholder
Composition

Shareholder composition is presented as follows:

Table of Composition of Bank BTN Shareholders as of January 1, 2023

                                                                                                    Ownership Percentage
                         Shareholders              Number of Shareholders   Amount Shares (Share)
                                                                                                            (%)

 LOCAL

 Republic of Indonesia                                         1               8,420,666,648                65.34

 Insurance                                                    72                 211,372,947                 1.64

 Bank                                                          3                  12,308,689                 0.10

 Retirement Fund                                             102               1,115,359,578                 8.65

 Cooperative                                                   5                   2,591,500                 0.02

 Government agencies                                           1                          53                 0.00

 Indonesian Individual                                    48,482               1,320,244,137                10.24

 Limited Liability Company                                   134                 125,423,551                 0.97

 Mutual Fund                                                 135                 394,920,260                 3.06

 Foundation                                                   11                  27,599,099                 0.21

 Sub Total                                                48,946              11,630,486,462                90.25

 FOREIGN

 Foreign Enterprise                                          214               1,252,967,140                 9.72

 Foreign Individual                                           65                   3,691,940                 0.03

 Sub Total                                                   279               1,256,659,080                 9.75

 TOTAL                                                     49,225              12,887,145,542              100.00


Table of Composition of Bank BTN Shareholders as of December 31, 2023

                                                                                                    Ownership Percentage
                         Shareholders              Number of Shareholders   Amount Shares (Share)
                                                                                                            (%)

 LOCAL

 Republic of Indonesia                                         1                8,420,666,648               60.00

 Insurance                                                    73                  200,280,053                1.43

 Bank                                                          3                   11,412,489                0.08

 Retirement Fund                                             104                1,366,263,155                9.74

 Cooperative                                                   5                     2,764,700               0.02

 Indonesian Individual                                    55,885                1,921,912,997               13.69

 Limited Liability Company                                   157                  137,511,407                0.98

 Mutual Fund                                                 131                  583,769,031                4.16

 Foundation                                                   11                   35,383,999                0.25

 Sub Total                                                56,370               12,679,964,479               90.35

 FOREIGN

 Foreign Enterprise                                          185                1,351,005,210                9.63

 Foreign Individual                                           74                     3,474,724               0.02

 Sub Total                                                   259                1,354,479,934                9.65

 TOTAL                                                     49,225               12,887,145,542             100.00



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                                                                                   2023 Annual Report




Composition of the 20 Biggest Shareholders
Table of Composition of the 20 Largest Shareholders of Bank BTN as of January 1, 2023
                                                                                 Amount Shares           Ownership
 No.                           Investor Name                        Status
                                                                                    (Share)             Percentage (%

  1.    DJS KETENAGAKERJAAN PROGRAM JHT                              Local        389,275,808               3.02

  2.    PT TASPEN (ASURANSI) - AFS                                   Local        273,280,900               2.12

  3.    PT TASPEN                                                    Local        251,148,600               1.95

  4.    REKSA DANA SUCORINVEST EQUITY FUND                           Local        132,017,100               1.02

        JPMSE STOCK RE UCITS CLT RE-HANDELSBANKENTILLVAXTMARKNAD
  5.                                                                Foreign       122,000,000               0.95
        TEMA
        CITIBANK NEW YORK S/A GEORGETOWN EMERGING MARKETS
  6.                                                                Foreign        92,000,000               0.71
        FUND SPC, LTD.-XING LONG FUND

  7.    CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY - 23             Foreign        90,000,000               0.70

  8.    DJS KETENAGAKERJAAN PROGRAM JP                               Local         77,756,000               0.60

  9.    REKSA DANA SAM DANA CERDAS                                   Local         62,286,958               0.48

  10.   NT TST CO S/A LSV EMERGING MARKETS EQUITY FUND, LP          Foreign        61,460,400               0.48

        BBH BOSTON S/A MATTHEWS EMERGING MARKETSSMALL
  11.                                                               Foreign        57,454,700               0.45
        COMPANIES FUND

  12.   BNYM RE VANDERBILT UNIVERSITY-2039926099                    Foreign        51,523,100               0.40

        JPMCB NA RE - VANGUARD EMERGING MARKETSSTOCK INDEX
  13.                                                               Foreign        50,224,738               0.39
        FUND

  14.   STATE STREET BANK-ISHARES CORE MSCI EMERGING MARKETS ETF    Foreign        49,224,576               0.38

        JPMCB NA RE-VANGUARD TOTAL INTERNATIONALSTOCK INDEX
  15.                                                               Foreign        46,514,830               0.36
        FUND
        BNYM RE BNYMLB RE EMPLOYEES
  16.                                                               Foreign        42,628,296               0.33
        PROVIDENTFDBOARD-2039927326
        CITIBANK NEW YORK S/A EMERGING MARKETS CORE EQUITY
  17.                                                               Foreign        37,310,235               0.29
        PORTFOLIO OF DFA INV DIMENSIO

  18.   MANULIFE DANA EKUITAS                                        Local         33,701,136               0.26

        CITIBANK NEW YORK S/A DIMENSIONAL EMERGING MARKETS
  19.                                                               Foreign        27,316,427               0.21
        VALUE FUND
  20.   JPMCB NA RE-AUSTRALIAN SUPER                                Foreign        26,622,300               0.21



Table of Composition of the 20 Largest Bank BTN Shareholders as of December 31, 2023
                                                                                  Amount Shares          Ownership
 No.                             Investor Name                         Status
                                                                                     (Share)            Percentage (%

  1.    DJS KETENAGAKERJAAN PROGRAM JHT                                 Local       389,275,808              2.77

  2.    PT TASPEN (ASURANSI) - AFS                                      Local       362,166,723              2.58

  3.    PT TASPEN                                                       Local       332,835,794              2.37

  4.    REKSA DANA SUCORINVEST EQUITY FUND                              Local       237,196,100              1.69

        JPMSE STOCK RE UCITS CLT RE-HANDELSBANKENTILLVAXTMARKNAD
  5.                                                                   Foreign      166,610,040              1.19
        TEMA

  6.    REKSA DANA SAM DANA CERDAS                                      Local        86,500,058              0.62

  7.    DJS KETENAGAKERJAAN PROGRAM JP                                  Local        77,756,000              0.55

  8.    JPMCB NA RE - VANGUARD EMERGING MARKETSSTOCK INDEX FUND        Foreign       66,560,556              0.47

  9.    DP BTN II                                                       Local        63,301,800              0.45

  10.   JPMCB NA RE-VANGUARD TOTAL INTERNATIONALSTOCK INDEX FUND       Foreign       62,390,184              0.44

  11.   NT TST CO S/A LSV EMERGING MARKETS EQUITY FUND, LP             Foreign       61,460,400              0.44

  12.   BNYM RE VANDERBILT UNIVERSITY                                  Foreign       60,723,800              0.43




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                             Company
                             Profile




                                                                                                Amount Shares            Ownership
 No.                                    Investor Name                            Status
                                                                                                   (Share)              Percentage (%

  13.    STATE STREET BANK-ISHARES CORE MSCI EMERGING MARKETS ETF                Foreign          53,781,176                0.38

  14.    BNYM RE BNYMLB RE EMPLOYEES PROVIDENTFDBOARD-2039927326                 Foreign          52,862,458                0.38

  15.    JPMCB NA RE - REB EMERGING MARKETS FINANCIALS FUND, LP                  Foreign          49,607,900                0.35

         CITIBANK NEW YORK S/A EMERGING MARKETS CORE EQUITY
  16.                                                                            Foreign          48,371,154                0.34
         PORTFOLIO OF DFA INV DIMENSIO
         STATE STREET BANK-CALIFORNIA STATE TEACHERS RETIREMENT
  17.                                                                            Foreign          42,207,800                0.30
         SYSTEM
         STATE STREET BANK-LORD ABBETT SECURITIESTRUST LORD ABBETT
  18.                                                                            Foreign          41,619,000                0.30
         INTERNATIONAL OPPORTU
         CITIBANK NEW YORK S/A GEORGETOWN EMERGING MARKETS
  19.                                                                            Foreign          37,500,000                0.27
         FUND SPC, LTD.-XING LONG FUND
         CITIBANK NEW YORK S/A DIMENSIONAL EMERGING MARKETS VALUE
  20.                                                                            Foreign          31,550,815                0.22
         FUND




Shareholders Composition 5% or More
Table of Composition of Shareholders of 5% or more of Bank BTN as of January 1, 2023
                   Investor Name                           Number of shares                         Ownership Percentage (%)

 Republic of Indonesia                                        8,420,666,648                                     65.34


Table of Composition of Shareholders of 5% or More of Bank BTN as of December 31, 2023
                   Investor Name                           Number of shares                         Ownership Percentage (%)

 Republic of Indonesia                                        8,420,666,648                                     60.00




Composition of Community Shareholders Less Than 5%
Table of Composition of Community Shareholders Less than 5% as of January 1, 2023

                                                                                                                 Ownership Percentage
                         Shareholders                   Number of Shareholders      Amount Shares (Share)
                                                                                                                         (%)

 LOCAL

 Insurance                                                         72                       211,372,947                   1.64

 Bank                                                               3                        12,308,689                   0.10

 Retirement Fund                                                  102                      1,115,359,578                  8.65

 Cooperative                                                        5                         2,591,500                   0.02

 Government Agencies                                                1                                53                   0.00

 Indonesian Individual                                         48,482                      1,320,244,137                 10.24

 Limited Liability Company                                        134                       125,423,551                   0.97

 Mutual Fund                                                      135                       394,920,260                   3.06

 Foundation                                                        11                        27,599,099                   0.21

 Sub Total                                                     48,945                      3,209,819,814                 24.91

 FOREIGN

 Foreign Enterprise                                               214                      1,252,967,140                  9.72

 Foreign Individual                                                65                         3,691,940                   0.03

 Sub Total                                                        279                      1,256,659,080                  9.75

 TOTAL                                                          49,224                     4,466,478,894                  34.66




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                                                                                               2023 Annual Report




Table of Composition of Group of Community Shareholders Less than 5% as of December 31, 2023

                                                              Number of                                             Ownership Percentage
                          Shareholders                                               Amount Shares (Share)
                                                             Shareholders                                                   (%)

 LOCAL

 Insurance                                                            73                   200,280,053                        1.43

 Bank                                                                   3                   11,412,489                        0.08

 Retirement Fund                                                     104                 1,366,263,155                       9.74

 Cooperative                                                            5                    2,764,700                       0.02

 Indonesian Individual                                          55,885                   1,921,912,997                      13.69

 Limited Liability Company                                           157                   137,511,407                       0.98

 Mutual Fund                                                         131                   583,769,031                       4.16

 Foundation                                                           11                    35,383,999                       0.25

 Sub Total                                                      56,369                   4,259,297,831                     30.35%

 FOREIGN

 Foreign Enterprise                                                  185                 1,351,005,210                      9.63%

 Foreign Individual                                                   74                     3,474,724                      0.02%

 Sub Total                                                           259                 1,354,479,934                      9.65%

 TOTAL                                                             56,628                 5,613,777,765                    40.00%




Shareholding by The Directors and Commissioners
Table of Share Ownership of the Board of Commissioners and Directors of Bank BTN as of January 1, 2023
                                                                                                                         Ownership
  No.                         Name                                  Position                 Number of shares
                                                                                                                        Percentage (%
 DIRECTOR

   1.        Haru Koesmahargyo*               President Director                                    304,600               0.0023636

   2.        Nixon L.P. Napitupulu            Vice President Director                             2,481,800               0.0192579

   3.        Hirwandi Gafar                   Director of Consumers                                 603,900               0.0046861

   4.        Nofry Rony Poetra                Director of Finance                                 1,034,600               0.0080282

                                              Director of Human Capital, Compliance and
   5.        Eko Waluyo                                                                             770,900               0.0059819
                                              Legal

   6.        Elisabeth Novie Riswanti         Director of Assets Management                         589,300               0.0045728

   7.        Andi Nirwoto                     Director of IT and Digital                            859,161               0.0066668

   8.        Jasmin                           Director of Distribution and Funding                1,581,930               0.0122753

   9.        Setiyo Wibowo                    Director of Risk Management                           726,100               0.0056343

 BOARD OF COMMISSIONER

   1.        Chandra Hamzah                   President/Independent Commissioner                             -                       -

   2.        Iqbal Latanro                    Vice President Commissioner/Independent                        -                       -

   3.        Armand B. Arief                  Independent Commissioner                                       -                       -

   4.        Ahdi Jumhari Luddin**            Independent Commissioner                                       -                       -

   5.        Sentot A. Sentausa               Independent Commissioner

   6.        Andin Hadiyanto                  Commissioner                                                   -                       -

   7.        Herry Trisaputra Zuna            Commissioner                                                   -                       -

   8.        Himawan Arief Sugoto             Commissioner                                                   -                       -

 TOTAL                                                                                            8,952,291                0.0694669

 * Resigned from office on March 16 2023
 ** Resigned from office on August 12, 2023




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                             Profile




Table of Share Ownership of the Board of Commissioners and Directors of Bank BTN as of January 31, 2023
                                                                                                                 Ownership
  No.                       Name                                  Position                   Number of shares
                                                                                                                Percentage (%
 DIRECTOR

   1.      Nixon L.P. Napitupulu            President Director                                    4,250,500       0.0302862

   2.      Oni Febriarto Rahardjo           Vice President Director                                308,000        0.0021946

   3.      Hirwandi Gafar                   Director of Consumers                                 1,763,314       0.0125642

   4.      Nofry Rony Poetra                Director of Finance                                   2,531,022       0.0180344

                                            Director of Human Capital, Compliance and
   5.      Eko Waluyo                                                                             1,871,964       0.0133384
                                            Legal

   6.      Elisabeth Novie Riswanti         Director of Assets Management                         1,733,200       0.0123496

   7.      Andi Nirwoto                     Director of IT and Digital                            1,822,161       0.0129835

   8.      Jasmin                           Director of Distribution and Funding                  2,848,030       0.0202931

   9.      Setiyo Wibowo                    Director of Risk Management                           1,892,700       0.0134861

  10.      Hakim Putratama                  Director of Institutional Banking                             -                   -

 BOARD OF COMMISSIONER

   1.      Chandra Hamzah                   President/Independent Commissioner                            -                   -

   2.      Iqbal Latanro                    Vice President Commissioner/Independent                       -                   -

   3.      Armand B. Arief                  Independent Commissioner                                      -                   -

   4.      Sentot A. Sentausa               Independent Commissioner                                      -                   -

   5.      Andin Hadiyanto                  Commissioner                                                  -                   -

   6.      Herry Trisaputra Zuna            Commissioner                                           404,600        0.0028829

   7.      Himawan Arief Sugoto             Commissioner                                           404,600        0.0028829

   8.      Mohamad Yusuf Permana            Commissioner                                                  -                   -

 TOTAL                                                                                           19,830,091        0.1412959




As of December 2023, there is no indirect share ownership by the Board of Commissioners and Directors of Bank BTN.



Shares Ownership by Senior Management

Until December 2023, there was no direct or indirect share ownership by the Company’s Senior Management.



Shareholders Classification
Table of Bank BTN Shareholder Classification as of December 31, 2023
                     Shareholding             Number of Shareholders               Number of Shares (Shares     Ownership (%)

 Local Institution                                           484                       2,337,384,834                 41.64%

 Foreign Institutions                                        185                       1,351,005,210                 24.07%

 Local Individuals                                        55,885                       1,921,912,997                 34.24%

 Foreign Individuals                                             74                        3,474,724                  0.06%

 Total                                                    56,628                        5,613,777,765              100.00%




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Information of Major
and Controlling Shareholders

The majority share ownership of Bank BTN was
owned by the Government of the Republic of
Indonesia with a 60,00%. share ownership. Thus,
the Major and Controlling Shareholders of Bank
BTN were the Government of the Republic of                      Government of the
Indonesia, there were no Major and Controlling                 Republic of Indonesia                      PT Bank Tabungan Negara
Shareholders indirectly.                                           60.00%                                       (Persero) Tbk




List of Subsidiaries,
Associates and Joint Venture Companies

As of December 31, 2023 as well as the date this data/information was submitted, The Company does not have any Subsidiaries and/
or Associated Entities. Thus, there is no information regarding the names of subsidiaries, associated companies, joint venture companies
along with the percentage of share ownership, line of business, total assets, and operating status of subsidiaries, associated companies,
joint venture companies.




Bank Business
Group Information

As of December 31, 2023, Bank BTN did not have any Bank Business Group, so there was no information on the structure of the
Bank Business Group, the management linkage structure within the Bank Business Group and shareholders acting on behalf of other
shareholders.




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   175
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                            Company
                            Profile




Corporate
Group Structure



       Government of the                                                                                                Public,
      Republic of Indonesia                                                                                      less than 5% each
             60.00%                                                                                                 40.00%




                                                         PT Bank Tabungan Negara
                                                               (Persero) Tbk



As of Desember 31, 2023, the Company did not have any Parent Entity, Subsidiaries, Associates, Joint Ventures and Special Purpose
Vehicles (SPV).




Stock Listing
Chronology

Initial Public Offering (IPO)
The Company listed its shares for the very first time on the Indonesia Stock Exchange on December 17, 2009 by offering 2,360,057,000
B Series shares or 27.08% of the issued capital, at a par value of IDR800 per share to the public. The Initial Public Offering (IPO) was
warmly welcome by the public, as demonstrated from 2.04 times of oversubscription with IDR1.88 trillion of proceeds. The action was
recognized as the “Best 2009 IPO in Indonesia” by The Asset magazine and as the “Mid Cap/IPO deal of the year in Southeast Asia
2009” by Alpha Southeast Asia (Hong Kong).


 Corporate Action                       :     Initial Public Offering/IPO

 Year of Issue of Shares                :     December 17, 2009

 Number of Shares Offered               :     2,360,057,000 Series B shares or 27.08% of the issued capital

 Nominal Value of Shares                :     IDR500 per share

 Bid Price                              :     IDR800 per share

 Number of Shares Before IPO            :     0 share

 Number of Listed Shares After IPO      :     8,623,285,575 Shares of Series B

 Exchange Listing                       :     Indonesia Stock Exchange (BEI)



Limited Offering I – Rights Issue
On November 23, 2012, the Company carried out a corporation action, i.e. Limited Offering I (PUT I) to Company shareholders in
relation to the performance of Rights Issue with the aim of strengthening the capital structure as well as increasing the number of floating
shares. This will improve BBTN’s market capitalization and share liquidity in the capital market, not to mention supporting credit growth,
so as to encourage investors to spend more of their funds in BTN shares.




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 Corporate Action                                    :   Limited Public Offering I (PUT I) – Preemptive Rights (HMETD)/Rights Issue

 Number of Shares Offered                            :   1,512,857,500 Series B Shares

 Nominal Value of Shares                             :   IDR500

 Execution Price                                     :   IDR1,235

 Number of Listed Shares Prior to Rights Issue       :   8,859,291,500

 Number of Listed Shares After Rights Issue          :   10,481,074,500 shares

 Amount of Received Proceeds                         :   IDR1,868,379,012,500

 Conversion Rate                                     :   555,000 Old Shares are entitled to 94,943 HMETD

 Ownership Dilution                                  :   14.61% before MESOP and 16.49% after MESOP

 Preemptive Rights Trading Period                    :   November 23 – 29, 2012

 Preemptive Rights Execution Period                  :   November 23 – 29, 2012

 Securities Listing Date at the Exchange             :   November 23, 2012

 Exchange Listing                                    :   Indonesia Stock Exchange (BEI)

 Alert Buyer                                         :   PT Bahana Securities, PT Danareksa Securities and PT Mandiri Securities



Limited Public Offering II – Rights Issue
On December 28, 2022, the Company carried out a corporate action in the form of Capital Increase by Providing Preemptive Rights II
(PMHMETD II) to the Company’s shareholders in order to issue Preemptive Rights (HMETD) or Rights Issue with the aim of strengthening
the capital structure Company in increasing the distribution of credit and/or loans.


 Corporate Action                                :   Increase in Capital by Providing Pre-emptive Rights II (“PMHMETD II”)

                                                     As many as 3,444,444,413 (Three Billion Four Hundred Forty-Four Million Four Hundred Forty-
 Number of Shares Offered                        :
                                                     Four Thousand Four Hundred Three) New Series B Shares

 Nominal Value of Shares                         :   IDR 500,- ((Five Hundred Rupiah)

 Execution Price                                 :   IDR 1,200,- (One thousand two hundred Rupia)

 Number of Listed Shares Prior to Rights Issue   :   10,590,000,000 (ten billion five hundred and ninety million) shares

                                                     14,034,444,413 (fourteen billion thirty-four million four hundred forty-four thousand four hundred
 Number of Listed Shares After Rights Issue      :
                                                     and thirteen) shares

                                                     PMN value of IDR2,479,999,997,600, - (Two Trillion Four Hundred Seventy-Nine Billion Nine
                                                     Hundred Ninety-Nine Million Nine Hundred Ninety-Seven Thousand Six Hundred Rupiah). Public
 Rights Issue Value                              :
                                                     participation value of IDR1,653,333,295,600, - (One Trillion Six Hundred Fifty-Three Billion Three
                                                     Hundred Thirty-Three Million Two Hundred Ninety-Five Thousand Six Hundred Rupiah).

                                                 :

                                                     IDR4,133,333,295,600,- (Four Trillion One Hundred Thirty-Three Billion Three Hundred Thirty-
 Amount of Funds (Proceeds)                      :
                                                     Three Million Two Hundred Ninety-Five Thousand Six Hundred Rupiah)

                                                     Each holder of 100,000,000 (one hundred million) Old Shares is entitled to 32,525,443 (thirty-
 Conversion Rate                                 :   two million five hundred twenty-five thousand four hundred forty-three) HMETD, where every 1
                                                     (one) HMETD gives the holder the right to purchase 1 (one) New Shares

                                                     Shareholders who do not exercise their rights will experience a decrease in the maximum
 Ownership Dilution                              :
                                                     percentage of ownership of 24.54% (Twenty-Four Point Five Four Percent)

 Preemptive Rights Trading Period                :   December 28, 2022 – January 5, 2023

 Preemptive Rights Execution Period              :   December 28, 2022 – January 5, 2023

 Securities Listing Date at the Exchange         :   December 28, 2022

 Exchange Listing                                :   Indonesia Stock Exchange (BEI)

 Alert Buyer                                         PT CIMB Niaga Securities




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Chronology of Issuance/Listing of Bank BTN Shares

                                                                                                           Face Nominal
  No.             Period                           Description                           Share                                   Bid Price (IDR)
                                                                                                               (IDR)

   1.    Before IPO                 -                                            -                                 -

   2.    December 17, 2009          Initial Public Offering                      Series B Common Stock         500                     800

   3.    February 4, 2011           MESOP Program Realization                    Series B Common Stock         500                     855

   4.    October 4, 2011            MESOP Program Realization                    Series B Common Stock         500                     855

   5.    February 1, 2012           MESOP Program Realization                    Series B Common Stock         500                    1,297

   6.    May 1, 2012                MESOP Program Realization                    Series B Common Stock         500                          -

   7.    November 23, 2012          Limited Public Offering I/Rights Issue       Series B Common Stock         500                    1,235

   8.    February 1, 2013           MESOP Program Realization                    Series B Common Stock         500                    1,098

   9.    July 1, 2013               MESOP Program Realization                    Series B Common Stock         500                          -

  10.    February 1, 2014           MESOP Program Realization                    Series B Common Stock         500                          -

  11.    July 1, 2014               MESOP Program Realization                    Series B Common Stock         500                          -

  12.    February 2, 2015           MESOP Program Realization                    Series B Common Stock         500                          -

  13.    July 1, 2015               MESOP Program Realization                    Series B Common Stock         500                          -

  14.    February 1, 2016           MESOP Program Realization                    Series B Common Stock         500                    1,098

  15.    December 28, 2022          Offering                                     Series B Common Stock         500                    1,200




Chronology of
Bond Listing and Other Securities Listing

Chronology of listing of other securities which consists of bonds, mortgage securitization, negotiable certificate of deposits (NCD) and
Long Term Notes (LTN) is, as follows.



Chronology of Bond Issuance
Table of Chronology of the Company Bond Issuance Bank BTN
                                                                                           Number
                                         Electronic Bond         Tenor
            Description                                                       Currency    of Bonds                        Bid Price
                                        Distribution Date        (Year)
                                                                                          (Millions)

 Bank BTN Bonds I Year 1989             July 25, 1989                     5     IDR        50,000        100% of the principal amount of the Bonds

 Bank BTN Bonds II Year 1990            -                                 5     IDR        50,000        100% of the principal amount of the Bonds

 Bank BTN Bonds III Year 1991           -                                 5     IDR        50,000        100% of the principal amount of the Bonds

 Bank BTN Bonds IV Year 1991            -                                 5     IDR       100,000        100% of the principal amount of the Bonds


 Bank BTN Bonds V Year 1993             -                                 5     IDR       150,000        100% of the principal amount of the Bonds



 Bank BTN Bonds VI Year 1995            -                                 5     IDR       350,000        100% of the principal amount of the Bonds




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                                                                              Issued and Paid Up Capital
 Number of shares issued (sheet)
                                        Number of Shares (sheet)          Total Amount of Money (IDR)             Total Offering Price (IDR)

                        -                     6,354,000,000                      3,177,000,000,000                                           -

         2,360,057,000                        8,714,057,000                      4,357,028,500,000                  1,888,045,600,000

            95,015,000                        8,809,072,000                      4,404,536,000,000                           81,237,825,000

            26,898,500                        8,835,970,500                      4,417,985,250,000                           22,998,217,500

                2,544,500                     8,838,515,000                      4,419,257,500,000                            3,300,216,500

                5,068,000                     8,843,583,000                      4,421,791,500,000                                           -

         1,512,857,500                      10,356,440,500                       5,178,220,250,000                  1,868,379,012,500

          206,420,500                       10,562,861,000                       5,281,430,500,000                       226,649,709,000

                1,992,500                   10,564,853,500                       5,282,426,750,000                                           -

                 407,000                    10,565,260,500                       5,282,630,250,000                                           -

                2,435,500                   10,567,696,000                       5,283,848,000,000                                           -

                  24,500                    10,567,720,500                       5,283,860,250,000                                           -

            14,624,500                      10,582,345,000                       5,291,172,500,000                                           -

                7,655,000                   10,590,000,000                       5,295,000,000,000                            8,405,190,000

         3,444,444,413                      14,034,444,413                       7,017,222,206,500                  4,133,333,259,600




                                                                                                  Rating
     Maturity Date                   Interest Rate              Payment Status                                                     Trustee
                                                                                          2023             2022

July 25, 1994               18.75% fixed                           Paid off           -                -                 -

June 1, 1995                16.25% fixed                           Paid off           -                -                 -

November 11, 1996           20.00% fixed                           Paid off           -                -                 -

January 23, 1996            17.00% fixed                           Paid off           -                -                 -

                            15.25% fixed for the first and
July 31, 1998               second years. floating for the         Paid off           -                -                 -
                            subsequent years through maturity

                            17.25% fixed for the first year.
December 21, 2000           floating for the subsequent years      Paid off           -                -                 -
                            through maturity




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                                                                                       Number
                                         Electronic Bond     Tenor
            Description                                                   Currency    of Bonds                     Bid Price
                                        Distribution Date    (Year)
                                                                                      (Millions)


Bank BTN Bonds VII Year 1996            -                             5     IDR       200,000      100% of the principal amount of the Bonds


Bank BTN Bonds VIII Year 1997           -                             5     IDR       400,000      100% of the principal amount of the Bonds

Bank BTN Bonds IX Year 2003             -                             5     IDR       750,000      100% of the principal amount of the Bonds

Bank BTN Bonds X Year 2004              -                             5     IDR       750,000      100% of the principal amount of the Bonds


Bank BTN Subordinated Bonds I Year
                                        -                         10        IDR       250,000      100% of the principal amount of the Bonds
2004


Bank BTN Bonds XI Year 2005             -                             5     IDR       750,000      100% of the principal amount of the Bonds

Bank BTN Bonds XII Year 2006            -                         10        IDR      1,000,000     100% of the principal amount of the Bonds

Bank BTN Bonds XIII Year 2009 A
                                        -                             3     IDR       300,000      100% of the principal amount of the Bonds
Series

Bank BTN Bonds XIII Year 2009 B
                                        -                             4     IDR       300,000      100% of the principal amount of the Bonds
Series

Bank BTN Bonds XIII Year 2009 C
                                        -                             5     IDR       900,000      100% of the principal amount of the Bonds
Series

Bank BTN Bonds XIV Year 2010            June 11, 2010             10        IDR      1,650,000     100% of the principal amount of the Bonds

Bank BTN Bonds XV Year 2011             June 28, 2011             10        IDR      1,300,000     100% of the principal amount of the Bonds

Bank BTN Sustainable Bonds I Phase
                                        June 5, 2012              10        IDR      2,000,000     100% of the principal amount of the Bonds
I Year 2012

Bank BTN Sustainable Bonds I Phase
                                        March 27, 2013            10        IDR      2,000,000     100% of the principal amount of the Bonds
II Year 2013

Bank BTN Sustainable Bonds II Phase I
                                        July 8, 2015                  3     IDR       900,000      100% of the principal amount of the Bonds
Year 2015 Series A

Bank BTN Sustainable Bonds II Phase I
                                        July 8, 2015                  5     IDR       500,000      100% of the principal amount of the Bonds
Year 2015 Series B

Bank BTN Sustainable Bonds II Phase I
                                        July 8, 2015                  7     IDR       800,000      100% of the principal amount of the Bonds
Year 2015 Series C

Bank BTN Sustainable Bonds II Phase I
                                        July 8, 2015              10        IDR       800,000      100% of the principal amount of the Bonds
Year 2015 Series D

Bank BTN Sustainable Bonds II Tahap
                                        August 30, 2016               3     IDR      1,347,000     100% of the principal amount of the Bonds
II Year 2016 Series A

Bank BTN Sustainable Bonds II Phase
                                        August 30, 2016               5     IDR      1,653,000     100% of the principal amount of the Bonds
II Year 2016 Series B

Bank BTN Sustainable Bonds III Phase
                                        July 13, 2017                 3     IDR      1,466,000     100% of the principal amount of the Bonds
I Year 2017 Series A

Bank BTN Sustainable Bonds III Phase
                                        July 13, 2017                 5     IDR      1,295,000     100% of the principal amount of the Bonds
I Year 2017 Series B

Bank BTN Sustainable Bonds III Phase
                                        July 13, 2017                 7     IDR       853,000      100% of the principal amount of the Bonds
I Year 2017 Series C

Bank BTN Sustainable Bonds III Phase
                                        July 13, 2017             10        IDR      1,386,000     100% of the principal amount of the Bonds
I Year 2017 Series D

Bank BTN Sustainable Bonds III Phase
                                        June 28, 2019       370 days        IDR      1,756,500     100% of the principal amount of the Bonds
II Year 2019 Series A

Bank BTN Sustainable Bonds III Phase
                                        June 28, 2019                 3     IDR      1,168,000     100% of the principal amount of the Bonds
II Year 2019 Series B

Bank BTN Sustainable Bonds III Phase
                                        June 28, 2019                 5     IDR      1,219,500     100% of the principal amount of the Bonds
II Year 2019 Series C

Junior Global Bond Bank BTN             January 23, 2020              5     USD           300      100% of the principal amount of the Bonds




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                                                                                              2023 Annual Report




                                                                                             Rating
     Maturity Date              Interest Rate                Payment Status                                                Trustee
                                                                                      2023            2022

                     17.125% fixed for the first year.
July 22, 2001        floating for the subsequent years          Paid off        -                -                 -
                     through maturity

July 18, 2002        14.15% fixed                               Paid off        -                -                 -

October 2, 2008      12.50% fixed                               Paid off        -                -                 -

May 25, 2009         12.20% fixed                               Paid off        -                -                 -

                     12.60% fixed for the first through
                     fifth years. 22.60% fixed for the
May 25, 2014*        sixth through tenth years if the Bank      Paid off        -                -                 -
                     does not use call option in the fifth
                     year since the issue date

July 6, 2010         12.00% fixed                               Paid off        -                -                 Bank Mega

September 19, 2016   12.75% fixed                               Paid off        -                -                 Bank Mega

May 29, 2012         11.75% fixed                               Paid off        -                -                 Bank Mega


May 29, 2013         12.00% fixed                               Paid off        -                -                 Bank Mega


May 29, 2014         12.25% fixed                               Paid off        -                -                 Bank Mega

June 11, 2020        10.25% fixed                               Paid off        -                -                 Bank Mega

June 28, 2021        9.50% fixed                                Paid off        -                -                 Bank Mega

June 5, 2022         7.90% fixed                                Paid off        -                -                 Bank Mega


March 27, 2023       7.90% fixed                                Paid off        AA+(idn)         AA(idn)           Bank Mega


July 8, 2018         9.625% fixed                               Paid off        -                -                 Bank Mega


July 8, 2020         9.875% fixed                               Paid off        -                -                 Bank Mega


July 8, 2022         10.00% fixed                               Paid off        -                -                 Bank Mega


July 8, 2025         10.50% fixed                              Not yet due      AA+(idn)         AA(idn)           Bank Mega


August 30, 2019      8.20% fixed                                Paid off        -                -                 Bank Mega


August 30, 2021      8.75% fixed                                Paid off        -                -                 Bank Mega


July 13, 2020        8.30% fixed                                Paid off        -                -                 Bank BJB


July 13, 2022        8.50% fixed                                Paid off        -                -                 Bank BJB


July 13, 2024        8.70% fixed                               Not yet due      AA+(idn)         AA(idn)           Bank BJB


July 13, 2027        8.90% fixed                               Not yet due      AA+(idn)         AA(idn)           Bank BJB


July 8, 2020         7.750% fixed                               Paid off        -                -                 Bank Mega


June 28, 2022        8.750% fixed                               Paid off        -                -                 Bank Mega


June 28, 2024        9.000% fixed                              Not yet due      AA+(idn)         AA(idn)           Bank Mega

                                                                                                                   Citicorp International
January 23, 2025     4.20%                                     Not yet due      Ba3              Ba3 Moody’s
                                                                                                                   Limited




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                                                                                                     Number
                                                Electronic Bond           Tenor
               Description                                                             Currency     of Bonds                        Bid Price
                                               Distribution Date          (Year)
                                                                                                    (Millions)

 Bank BTN Sustainable Bonds IV Phase                                          370
                                               August 19, 2020                               IDR    577,000         100% of the principal amount of the Bonds
 I Year 2020 Series A                                                       (days)

 Bank BTN Sustainable Bonds IV Phase
                                               August 19, 2020                     3         IDR    727,000         100% of the principal amount of the Bonds
 I Year 2020 Series B

 Bank BTN Sustainable Bonds IV Phase
                                               August 19, 2020                     5         IDR    196,000         100% of the principal amount of the Bonds
 I Year 2020 Series C

 Bank BTN Sustainable Bonds IV Phase
                                               May 24, 2022                        3         IDR    600,000         100% of the principal amount of the Bonds
 II Year 2022 series A

 Bank BTN Sustainable Bonds IV Phase
                                               May 24, 2022                        5         IDR    400,000         100% of the principal amount of the Bonds
 II Year 2022 series B

Notes:
- Outstanding Ratings for domestic securities in 2021 used ratings from Pefindo.
- Ratings for domestic securities issued and outstanding in 2022 used ratings from Fitch.
- Bank BTN’s Junior Global Bond (USD) rating issued in 2020 used a rating from Moody’s.
- Outstanding Ratings for domestic securities in 2023 used ratings from Pefindo.
  *The Bank practiced the buyback option on May 25, 2009




Name of Exchange in which the Company’s Bonds were Listed

All the Company’s bonds in IDR listed on the Indonesia Stock Exchange and bonds in USD were listed on the Singapore Exchange.


Chronology of Sukuk Issuance
Table of Bank BTN Sukuk Issuance Chronology

                                                                       Electronic Sukuk
                        Description                                                                 Tenor (Month)       Currency        Amount of Sukuk
                                                                       Distribution Date

 BTN Sukuk I Year 2023 Phase I                                   July 28, 2023                            159              IDR                  92,553


 BTN Tribe I Year 2023 Phase II                                  December 27, 2023                        156              IDR               175,039




Chronology of KPR Securization

The Company has carried out the securitization of Housing Loan bills through Collective Investment Contract of Asset-Backed Security
(KIK-EBA) and Asset-Backed Security in the Form of Letter of Participation (EBA-SP), with the following details:

Table of Chronology of KPR Securization Bank BTN
  No.        Securization Transactions                 Total Nominal (IDR)                  Class      Nominal (IDR)                 Date of Transaction

    1.                                                                                       A         100,000,000,000
            KIK-EBA DSMF 01                              111,111,108,501                                                         February 11, 2009*
    2.                                                                                       B          11,111,108,501

    3.                                                                                       A         360,000,000,000
            KIK-EBA DSMF 02                              391,305,329,159                                                         November 10, 2009*
    4.                                                                                       B          31,305,329,159

    5.                                                                                       A         688,500,000,000
            KIK-EBA DBTN 01                              750,000,230,717                                                         December 27, 2010*
    6.                                                                                       B          61,500,230,717

    7.                                                                                       A         645,000,000,000
            KIK-EBA DBTN 02                              703,450,414,156                                                         November 16, 2011*
    8.                                                                                       B          58,450,414,156

    9.                                                                                       A         925,000,000,000
            KIK-EBA DBTN 03                           1,000,000,005,997                                                          December 12, 2012*
   10.                                                                                       B          75,000,005,997




182            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                        2023 Annual Report




                                                                                                       Rating
     Maturity Date                    Interest Rate               Payment Status                                                    Trustee
                                                                                             2023               2022

August 29, 2021            6.75%                                       Paid off          -                 -                 Bank BJB


August 19, 2023            7.80%                                       Paid off          AA+(idn)          idAA+             Bank BJB


August 19, 2025            8.40%                                     Not yet due         AA+(idn)          idAA+             Bank BJB


May 24, 2025               5.50%                                     Not yet due         AA+(idn)          AA(idn)           Bank BJB


May 24, 2027               6.0%                                      Not yet due         AA+(idn)          AA(idn)           Bank BJB




  Maturity Date                           Level Nisbah                                Payment Status                   Description

                     11.00% of the revenue shared with an indication of profit                           These Securities were not rated, and there
October 28, 2036                                                                  Not yet due
                     sharing equivalent to 0.55% per year.                                               was no public offering.

                     27.40% of the revenue generated with an indication of                               These Securities were not rated, and there
December 27, 2036                                                                 Not yet due
                     profit sharing equivalent to 1.37% per year.                                        was no public offering.




     Maturity Date           Average Life       Class A Coupon        Class A Rank

January 10, 2018                   5.30                13.000%             id
                                                                                AAA



December 10, 2019                  5.63                11.000%             id
                                                                                AAA



September 27, 2019                 5.35                 9.250%             id
                                                                                AAA



February 27, 2021                  5.94                 8.750%             id
                                                                                AAA



January 07, 2023                   6.35                 7.750%             id
                                                                                AAA




                                                                                      PT Bank Tabungan Negara (Persero) Tbk                   183
Page 186
                               Company
                               Profile




     No.    Securization Transactions                   Total Nominal (IDR)                 Class               Nominal (IDR)                  Date of Transaction

     11.                                                                                     A1                403,000,000,000

     12.   KIK-EBA DBTN 04                              1,000,000,005,941                    A2                525,000,000,000             December 20, 2013*

     13.                                                                                      B                  72,000,005,941

     14.                                                                                     A1                723,500,000,000

     15.   KIK-EBA DBTN 05                              1,500,000,001,615                    A2                647,500,000,000             November 28, 2014*

     16.                                                                                      B                129,000,001,615

     17.                                                                                      A                181,600,000,000
           EBA-SP SMF-BTN 01                              200,000,000,041                                                                  November 27, 2015
     18.                                                                                      B                  18,400,000,041

     19.                                                                                     A1                400,000,000,000

     20.   EBA-SP SMF-BTN 02                            1,000,000,000,000                    A2                513,000,000,000             October 31, 2016

     21.                                                                                      B                  87,000,000,000

     22.                                                                                     A1                200,000,000,000

     23.   EBA-SP SMF-BTN 03                            1,000,000,000,000                    A2                713,000,000,000             April 28, 2017

     24.                                                                                      B                  87,000,000,000

     25.                                                                                     A1                700,000,000,000

     26.   EBA-SP SMF-BTN 04                            2,000,000,000,000                    A2              1,124,000,000,000             February 28, 2018

     27.                                                                                      B                176,000,000,000

     28.                                                                                     A1                574,000,000,000

     29.                                                                                     A2              1,142,000,000,000
           EBA-SP SMF-BTN 05                            2,000,000,000,000                                                                  November 27, 2019
     30.                                                                                      M                  24,000,000,000

     31                                                                                       B                260,000,000,000

     32.                                                                                      A                576,734,000,000
           EBA-SP SMF-BTN 06                              631,000,543,015                                                                  December 30, 2020
     33.                                                                                      B                  54,266,543,015

     34.                                                                                      A                452,500,000,000
           EBA-SP SMF-BTN 07                              500,000,001,416                                                                  December 23, 2022
     35.                                                                                      B                  47,500,001,416

     36.                                                                                      A                544,800,000,000
           EBA-SP SMF-BTN 08                              600,000,020,055                                                                  September 26, 2023
     37.                                                                                      B                  55,200,020,055

 Banks as Service Providers in securitization transactions implemented the clean-up call option in accordance with the provisions.
 *




Chronology of Negotiable Certificate of Deposit Issuance
Table of Chronology of Negotiable Certificate of Deposit Recording
                   Type NCD                                           Issuance Nominal (IDR)                                  Date of Transaction              Series

                                                                                                                                                                 A

 NCD Phase I                                                                  625,000,000,000                      Desember, 5 2014                              B

                                                                                                                                                                 C

                                                                                                                                                                 A

                                                                                                                                                                 B
 NCD Phase II                                                              1,005,000,000,000                       February 26, 2015
                                                                                                                                                                 C

                                                                                                                                                                 D

 NCD Phase III                                                                500,000,000,000                      February 17, 2015                             E

                                                                                                                                                                 A

 NCD Phase IV                                                              1,110,000,000,000                       April 30, 2015                                B

                                                                                                                                                                 C

 NCD Phase I 2016                                                             740,000,000,000                      June 9, 2016                                  A




184            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                       2023 Annual Report




     Maturity Date   Average Life      Class A Coupon   Class A Rank

                                          A1 = 8.90%

February 26, 2022        5.57                              id
                                                                AAA
                                          A2 = 9.50%


                                           A1 = 10%

September 07, 2025                                              AAA
                         6.72            A2 = 10.25%
                                                           id




March 07, 2022           3.95                   8.60%      id
                                                                AAA


                                          A1 = 8.15%

June 27, 2027            7.05                              id
                                                                AAA
                                          A2 = 8.75%


                                          A1 = 8.00%

January 07, 2028         7.78                              id
                                                                AAA
                                          A2 = 8.40%


                                          A1 = 7.00%

May 07, 2029             7.03                              id
                                                                AAA
                                          A2 = 7.50%


                                          A1 = 8.50%
                                                           id
                                                                AAA
                                          A2 = 8.75%
May 07, 2032             9.09

                                         M = 10.40%             id
                                                                     A



July 07, 2032            6.08                   6.50%      id
                                                                AAA


                                                           id
                                                                AAA
January 07, 2034         5.66                   7.70%
                                                           id
                                                                AAA


August 07, 2035          7.44                   6.65%      id
                                                                AAA




            Tenor               Maturity Date                               Rate                      Nominal Per Series

6 Months             June 4, 2015                                           9.00%                     280,000,000,000

12 Months            November 27, 2015                                      9.25%                      45,000,000,000

15 Months            February 26, 2016                                      9.50%                     300,000,000,000

6 Months             August 26, 2015                                        9.00%                     470,000,000,000

12 Months            February 18, 2016                                      9.25%                      85,000,000,000

15 Months            May 19, 2016                                           9.50%                      10,000,000,000

18 Months            August 18, 2016                                        9.70%                     440,000,000,000

5 Months             July 15, 2015                                          9.00%                     500,000,000,000

6 Months             October 30, 2015                                       8.75%                     330,000,000,000

12 Months            May 2, 2016                                            9.00%                     620,000,000,000

18 Months            October 31, 2016                                       9.25%                     160,000,000,000

3 Months             September 9, 2016                                      6.85%                     740,000,000,000




                                                                         PT Bank Tabungan Negara (Persero) Tbk             185
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                                Company
                                Profile




                    Type NCD                                          Issuance Nominal (IDR)                  Date of Transaction                 Series

                                                                                                                                                    A

 NCD Phase II 2016                                                          1,115,000,000,000        August 5, 2016                                 B

                                                                                                                                                    C

                                                                                                                                                    A
 NCD Phase III 2016                                                            371,000,000,000       November 30, 2016
                                                                                                                                                    B

                                                                                                                                                    A
 NCD Phase IV 2016                                                             500,000,000,000       December 29, 2016
                                                                                                                                                    B

 NCD Phase V 2016                                                              500,000,000,000       December 30, 2016                              -

                                                                                                                                                    A
 NCD Phase I 2017                                                           1,735,000,000,000        February 21, 2017
                                                                                                                                                    B

 NCD Phase III 2017                                                            550,000,000,000       October 3, 2017                                -

                                                                                                                                                    A
 NCD Phase II 2017                                                          1,050,000,000,000        October 5, 2017
                                                                                                                                                    B

                                                                                                                                                    A
 NCD Phase IV 2017                                                             540,000,000,000       December 13, 2017
                                                                                                                                                    B

 NCD Phase p I 2018                                                         1,440,000,000,000        April 3, 2018                                  A

                                                                                                                                                    A
 NCD Phase II 2018                                                             690,000,000,000       July 18, 2018
                                                                                                                                                    B

                                                                                                                                                    A

 NCD Phase III 2018                                                         2,020,000,000,000        November 5, 2018                               B

                                                                                                                                                    C

                                                                                                                                                    A
 NCD Phase IV 2018                                                             340,000,000,000       December 10, 2018
                                                                                                                                                    B

                                                                                                                                                    A

 NCD Phase I 2023                                                           1,500,000,000,000        October 20, 2023                               B

                                                                                                                                                    C

 Total                                                                      16,331,000,000,000




Chronology of Issuing Long Term Notes (LTN)

The issuance of BTN Long-Term Notes (LTN) was intended for BP Taperaas single investor, as reimbursement of BP Tapera’s source of fund
for KPR Tapera distribution. Thus, LTN was a debt securities issued without going through a Public Offering process and was not rated.

Table of Chronology of Issuance of Long Term Notes (LTN) of Bank BTN
                                                                           Electronic LTN                                       LTN Amount
                          Description                                                            Tenor (Month)
                                                                          Distribution Date                                   (IDR Thousand)

 LTN BTN year 2021 Phase I                                           December 17, 2021               186                             10,185,851

 LTN BTN II year 2022 Seris A                                        July 12, 2022                   171                             47,740,325

 LTN BTN II year 2022 Seris B                                        July 12, 2022                   177                             79,378,706

 LTN BTN III THP I YEAR 2022                                         December 14, 2022               177                            210,866,282

 LTN BTN III THP II YEAR 2022                                        December 28, 2022               171                            131,184,885

 LTN BTN IV Phase I year 2023                                        July 28, 2023                   165                             35,898,139

 LTN BTN IV Phase II year 2023                                       September 15, 2023              168                            404,745,014

 LTN BTN IV Phase III year 2023 Series A                             December 27, 2023               180                              6,241,671

 LTN BTN IV Phase III year 2023 Series B                             December 27, 2023               168                            234,541,750

Note: LTN BTN Securities are not rated and issued through limited offering to BP Tapera.




186             PT Bank Tabungan Negara (Persero) Tbk
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                                                                                         2023 Annual Report




            Tenor                   Maturity Date                        Rate                             Nominal Per Series

3 Months               November 3, 2016                                          7.19%                      440,000,000,000

6 Months               February 1, 2017                                          7.47%                      275,000,000,000

12 Months              August 10, 2017                                           7.80%                      400,000,000,000

3 Months               February 28, 2017                                         7.04%                        20,000,000,000

6 Months               May 29, 2017                                              7.26%                      351,000,000,000

3 Months               March 29, 2017                                            7.75%                      315,000,000,000

6 Months               July 3, 2017                                              7.74%                      185,000,000,000

6 Months               July 3, 2017                                              7.73%                      500,000,000,000

6 Months               August 22, 2017                                           7.28%                    1,195,000,000,000

12 Months              February 16, 2018                                         7.43%                      540,000,000,000

12 Months              October 2, 2018                                           6.50%                      550,000,000,000

6 Months               April 3, 2018                                             6.00%                      230,000,000,000

12 Months              October 5, 2018                                           6.25%                      820,000,000,000

6 Months               June 12, 2018                                             5.90%                      160,000,000,000

12 Months              December 13, 2018                                         6.20%                      320,000,000,000

6 Months               October 2, 2018                                           5.90%                      830,000,000,000

6 Months               January 15, 2019                                          7.60%                      520,000,000,000

12 Months              July 16, 2019                                             7.70%                      170,000,000,000

6 Months               May 7, 2019                                               8.30%                    1,340,000,000,000

9 Months               August 2, 2019                                            8.40%                      170,000,000,000

12 Months              November 5, 2019                                          8.50%                      510,000,000,000

3 Months               March 12, 2019                                            8.00%                        80,000,000,000

6 Months               June 11, 2019                                             8.40%                      260,000,000,000

6 Months               April 17, 2024                                            6.40%                      500,000,000,000

9 Months               July 16, 2024                                             6.45%                        70,000,000,000

12 Months              October 21, 2024                                          6.53%                      930,000,000,000

                                                                                                          16,331,000,000,000




    Maturity Date    Interest Rates          Payment Status                                 Description

June 17, 2037         1.37% fixed         Not yet due         These Securities were not rated, and there was no public offering.

October 12, 2036      1.37% fixed         Not yet due         These Securities were not rated, and there was no public offering.

April 12, 2037        0.55% fixed         Not yet due         These Securities were not rated, and there was no public offering.

June 14, 2037         0.55% fixed         Not yet due         These Securities were not rated, and there was no public offering.

March 28, 2037        0.55% fixed         Not yet due         These Securities were not rated, and there was no public offering.

April 28, 2037        0.55% fixed         Not yet due         These Securities were not rated, and there was no public offering.

September 15, 2037    1.37% fixed         Not yet due         These Securities were not rated, and there was no public offering.

December 27, 2038     0.55% fixed         Not yet due         These Securities were not rated, and there was no public offering.

December 27, 2037     1.37% fixed         Not yet due         These Securities were not rated, and there was no public offering.




                                                                   PT Bank Tabungan Negara (Persero) Tbk                           187
Page 190
                          Company
                          Profile




Information on the Use of Public Accounting and
Public Accounting Office Services

Name of Public Accounting Office      Purwantono, Sungkoro & Surja

Association Networks                  Ernst & Young Global Limited

Address of Public Accounting Office   Indonesia Stock Exchange Building Tower 2, 5th Floor Jl. Jend. Sudirman Kav.52-53, Jakarta 12190, Indonesia

Website                               www.ey.com/en_gl/locations/indonesia

Name of Public Accounting             Christophorus Alvin Kossim

KAP Assignment Period                 9th period

AP Assignment Period                  1st period

Audit Services                        General Audit Financial Year 2023

Non-Audit Services                    There are no Non-Audit services

Fee Audit                             IDR4,800,000,000

Fee Non Audit                         -




Supporting Institution
and/or Professional

                                                                CUSTODIAN BANK
Name                                  PT Kustodian Sentral Efek Indonesia

Address                               Gedung Bursa Efek Indonesia, Tower 1, Lantai 5. Jl. Jend. Sudirman Kav. 52-53, Jakarta 12190, Indonesia

Telephone                             (021) 5152855

Facsimile                             (021) 52991199

E-mail                                helpdesk@ksei.co.id

Website                               www.ksei.co.id

Form of Service                       Custodian and Payment Agent

Assignment Period                     Throughout the life of the Debt Securities




                                                    SECURITIES ADMINISTRATION BUREAU
Name                                  PT Datindo Entrycom

Address                               Jl. Hayam Wuruk No.28, Lantai 2 Jakarta 10120 - Indonesia

Telephone                             (021) 3508077

Facsimile                             (021) 3508077

E-mail                                corporatesecretary@datindo.com

Website                               https://www.datindo.com

Form of Service                       Securities Administration Bureau for Shares

Assignment Period                     December 9, 2009 – present




188         PT Bank Tabungan Negara (Persero) Tbk
Page 191
                                                                                    2023 Annual Report




                                                 BOND TRUSTEE
Name                PT Bank Mega Tbk

Address             Menara Bank Mega, Jl. Kapten P. Tendean No. 12-14A, Jakarta 12790, Indonesia

Telephone           (021) 79175000

Facsimile           (021) 79187100

E-mail              waliamanat@bankmega.com

Website             www.bankmega.com

Form of Service     Bond Trustee Bank BTN

Assignment Period   Throughout the Time of the Bond



Name                PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (Bank BJB)

Address             Sinarmas MSIG Tower Lantai 9, Jl. Jend. Sudirman kav. 21, Jakarta Selatan, lndonesia

Telephone           (021) 5228737 Ext. 101

Facsimile           (021) 5228738

E-mail              -

Website             www.bankbjb.co.id

Form of Service     Trustee of the Public Offering of Continuing Bonds

Assignment Period   Throughout the Time of the Bond



Name                Citicorp International Limited

                    20th Floor, Citi Tower, One Bay East
Address             83 Hoi Bun Road, Kwun Tong
                    Kowloon, Hong Kong

Telephone           -

Facsimile           (+852) 2323 0279

E-mail              -

Website             -

Form of Service     Trustee Junior Global Bond 2020

Assignment Period   Throughout the life of Junior Global Bond




                                              SECURITIES RATING
Name                PT Fitch Ratings Indonesia

Address             DBS Bank Tower 24th Floor Suite 2403, Jl. Prof. Dr. Satrio Kav. 3-5, Jakarta 12940 Indonesia

Telephone           (021) 29886800

Facsimile           (021) 29886822

E-mail              -

Website             www.fitchratings.com

Form of Service     Rating

Assignment Period   Throughout the Time of the Bond




                                                                PT Bank Tabungan Negara (Persero) Tbk              189
Page 192
                     Company
                     Profile




Name                           Moody’s Investor Service Singapore Pte. Ltd

Address                        50 Raffles Place #23-06 Singapore Land Tower, Singapore 48623

Telephone                      -

Facsimile                      -

E-mail                         -

Website                        www.moodys.com

Form of Service                Rating

Assignment Period              Throughout the life of Junior Global Bond




Name                           PT. Pemeringkat Efek Indonesia

                               Equity Tower Lt. 30, Sudirman Business District, Lot 9, Jl. Jend. Sudirman Kav. 52 – 53,
Address
                               Jakarta Selatan 12190, Indonesia

Telephone                      (021) 509 68469

Facsimile                      (021) 509 68468

E-mail                         -

Website                        www.pefindo.com

Form of Service                Rating

Assignment Period              June 1, 2024




                                                       LEGAL CONSULTANT
Name                           HKGM & Partners

Address                        Pondok lndah Plaza 3, Blok E/4 & E/5, Jl. TB Simatupang Jakarta 12310, Indonesia

Telephone                      (021) 75900215

Facsimile                      (021) 75900225

E-mail                         hkgmlaw@indo.net.id

Website                        -

Form of Service                Legal Consultation

Assignment Period              April 10, 2023




                                                    ON-CALL LEGAL CONSULTANT
Name                           UMBRA

Address                        Telkom Landmark Tower, Tower 2, 49th Floor, Jl. Gatot Subroto Kav 52, Jakarta 12710

Telephone                      (021) 5082 0999

Facsimile                      -

E-mail                         raditya@umbra.law

Website                        www.umbra.law

                               Legal Consultation regarding Affiliate Transactions and/or Conflict of Interest Transactions and Material
Form of Service
                               Transactions

Assignment Period              May 01, 2023 - August 31, 2023




190         PT Bank Tabungan Negara (Persero) Tbk
Page 193
                                                                                      2023 Annual Report




Name                Ali Budiarjo, Nugroho, Reksodiputro (ABNR)

Address             Graha CIMB Niaga, 24th Floor, Jl. Jend. Sudirman Kav 58, Jakarta 12190

Telephone           (021) 250 5125 / 5136

Facsimile           (021) 250 5001 / 5121/ 5122 / 5392

E-mail              info@abnrlaw.com

Website             www.abnrlaw.com

                    Legal Consultation regarding the Preparation of a Legal Study on the Implementation of the PPSK Law, Project for
Form of Service
                    Internalization of the 2023 BUMN Ministerial Regulations

                    January 26, 2023 - February 3, 2023
Assignment Period
                    June 23, 2023 - August 30, 2023



Name                K&K Advocates

Address             KMO Building, 5th Floor, Suite 502, Jl. Kyai Maja No. 1 Kebayoran Baru – Jakarta Selatan 12120

Telephone           (021) 2902 0331

Facsimile           (021) 2902 3107

E-mail              office@kk-advocates.com

Website             kk-advocates.com

                    Legal Consultation on Legal Risk Mitigation on the Implementation of Intellectual Property Rights (HKI) as Credit
Form of Service     Guarantee at PT Bank Tabungan Negara (Persero) Tbk and legal consultation on the formation of Intellectual
                    Property Rights Management Guidelines.

Assignment Period   May 11, 2023 - August 4, 2023




Name                Ardianto & Masniari Counselors at Law

Address             Prosperity Tower Level 6 District 8 SCBD, Jln. Jend. Sudirman Kav. 52-53, Jakarta, 12190, DKI Jakarta

Telephone           (021) 5082 0450, 5082 0451

Facsimile           -

E-mail              adrianus.ardianto@am-lw.com , masniari.sitompul@am-lw.co

Website             am-lw.com

Form of Service     Legal Consultation in Investment plans through Venture Fund Schemes with Venture Capital Companies

Assignment Period   March 09 - June 09, 2023



Name                Hielmy Izzudin dan Rekan

Address             Kav PTB DKI F2/28 Pondok Kelapa, Jakarta Timur

Telephone           0812 8883 7972

Facsimile           -

E-mail              Hielmyizzudin.law@gmail.com

Website             -

                    Legal Consultation regarding Guidelines for Implementing Bank BTN’s Legal Risk Assessment, Legal Consultation
Form of Service     on the establishment of Legal Audit Standardization and Manual Book for Legal Audit Standardization and Legal
                    consultation on the establishment of Guidelines for Management of Legal Risk Reserves.

                    March 28, 2023 to May 26, 2023
Assignment Period
                    April 28, 2023 - November 30, 2023




                                                                 PT Bank Tabungan Negara (Persero) Tbk                          191
Page 194
                     Company
                     Profile




                                                              NOTARY
Name                           Siti Rayhana, SH

                               Riviera Timur No. 1 Cluster La Bella, Riviera Village, Jl. Gading Golf Boulevard, Gading Serpong, Cihuni,
Address
                               Kec. Pagedangan, Kabupaten Tangerang, Banten 15332

Telephone                      (021) 55687610

Facsimile                      -

E-mail                         siti.rayhana@yahoo.co.id

Website                        N/A

                               • Entering into BTN IV LTN Issuance Agreement in 2023
Form of Service                • Notary Due Diligence Securitization Transaction EBA-SP SMF-BTN08
                               • Issued Deed of Cooperation Agreement with PT Bank Woori Saudara Indonesia 1906 Tbk.

Assignment Period              Until each transaction is completed.



Name                           Sari Bhirawati, SH

Address                        Jl. Wijaya I No. 56, Kebayoran Baru, Jakarta Selatan, Daerah Khusus Ibukota Jakarta 12170

Telephone                      (021) 7226108

Facsimile                      -

E-mail                         kantornotarissaribhirawati@gmail.com

Website                        -

                               Issued Deed of Cooperation Agreement between PT Asuransi Jasa Raharja Putera and PT Bank Tabungan Negara
Form of Service
                               (Persero) Tbk.

Assignment Period              September 25, 2023




Name                           Ir. Nanette Cahyanie Handari Adi Warsito, S.H.

Address                        Jl. Panglima Polim V No. 11, Kebayoran Baru, Jakarta Selatan

Telephone                      (021) 7392801

Facsimile                      (021) 7265090

E-mail                         poerbaningsih@yahoo.com

Website                        -

                               • Entering into the EBA-SP SMF-BTN08 Securitization Transaction Agreement.
                               • Issued Deed of Cooperation Agreement with PT Indonesia Infrastructure Finance.
Form of Service
                               • Issue Deed of Cooperation Agreement with PT Bank DKI.
                               • Issued Addendum II to the Cooperation Agreement with PT Trimegah Sekuritas Indonesia Tbk.

Assignment Period              Until each transaction is completed.



Name                           Ashoya Ratam, S.H., M.Kn.

Address                        Jalan Suryo Nomor 54, Kebayoran Baru, Jakarta Selatan

Telephone                      (021) 29236060

Facsimile                      -

E-mail                         notaris@ashoyaratam.com

Website                        -

                               Services as a Notary at the Company's General Meeting of Shareholders (GMS) and Implementation of Capital
Form of Service
                               Increases with Pre-emptive Rights II (PMHMETD II).

Assignment Period              Until the completion of the GMS and PMHMETD II implementation.




192         PT Bank Tabungan Negara (Persero) Tbk
Page 195
                                                                                             2023 Annual Report




Award
and Certification

                                                              AWARD

Indonesia Excellence Good Corporate Governance Ethics in              Indonesia’s Home - Grown Consumer Brands Award 2023
Providing End-to-End Mortgage Solutions                               in Home Loan Category
Event:                                                                Event:
Indonesia Excellence GCG Awards 2023                                  Indonesia’S Home Grown Csnsumer Brands Award 2023

Organizer:                                                            Organizer:
Warta Ekonomi                                                         The Iconomics

Date:                                                                 Date:
January 31, 2023                                                      February 17, 2023

Syariah Insight 2023 - Top Sharia Business Unit                       Best Public Relation in Company Strategy on Providing
in KBMI 3 Category                                                    Innovative Housing Loan Product and Services
Event:                                                                Event:
3rd Indonesia Syariah Awards 2023                                     Indonesia Public Relation Awards 2023

Organizer:                                                            Organizer:
The Iconomics                                                         Warta Ekonomi

Date:                                                                 Date:
February 17, 2023                                                     February 24, 2023

Best Performance Chief Financial Officer 2023 in Increasing           Best Companies
Net Profit Through Strategic Initiatives                              Event:
                                                                      Obsession Award 2023
Event:
Indonesia Best CFO Awards 2023                                        Organizer:
                                                                      Obsession Media Group
Organizer:
Warta Ekonomi                                                         Date:
                                                                      March 15, 2023
Date:
February 28, 2023

Haru Koesmahargyo - The Great Indonesia CEO for Listed                Gold Winner - Corporate PR - Kesuksesan Strategi
SOEs Company 2023                                                     Komunikasi Rights Issue BTN
Event:                                                                Event:
The Great Indonesia CEO Award                                         Public Relations Indonesia Awards 2023

Organizer:                                                            Organizer:
Wise Leader Indonesia                                                 PR Indonesia

Date:                                                                 Date:
March 16, 2023                                                        March 17, 2023

Bronze Winner - Media Sosial - Instagram                              Gold Winner - Video Profile
Event:                                                                Event:
Public Relations Indonesia Awards 2023                                Public Relations Indonesia Awards 2023
Organizer:                                                            Organizer:
PR Indonesia                                                          PR Indonesia
Date:                                                                 Date:
March 17, 2023                                                        March 17, 2023




                                                                         PT Bank Tabungan Negara (Persero) Tbk                193
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                       Company
                       Profile




KPR BTN iB - The 2nd Highest Digital Index - Sharia Business   The Best Sharia Business Unit - Conventional Bank
Unit Mortgage Loan                                             Category: Asset Class > IDR 10 T
Event:                                                         Event:
Digital Brand Award 2023                                       Digital Brand Award 2023
Organizer:                                                     Organizer:
Infobank                                                       Infobank
Date:                                                          Date:
April 12, 2023                                                 April 12, 2023

The Best Debit Card Sharia Business Unit Conventional Bank     The Highest Digital Index Sharia Business Unit
Event:                                                         Event:
Digital Brand Award 2023                                       Digital Brand Award 2023
Organizer:                                                     Organizer:
Infobank                                                       Infobank
Date:                                                          Date:
April 12, 2023                                                 April 12, 2023

The Best Debit Card Conventional Bank (KBMI) 3                 The Best Bank Saving Account (KBMI) 3
Event:                                                         Category: Asset Class >IDR200 T
Digital Brand Award 2023                                       Event:
Organizer:                                                     Digital Brand Award 2023
Infobank                                                       Organizer:
Date:                                                          Infobank
April 12, 2023                                                 Date:
                                                               April 12, 2023

The Best Conventional Bank (KBMI) 3                            The Best Deposito Conventional Bank (KBMI) 3
Category: Asset Class >IDR200 T                                Category: Asset Class >IDR200 T
Event:                                                         Event:
Digital Brand Award 2023                                       Digital Brand Award 2023
Organizer:                                                     Organizer:
Infobank                                                       Infobank
Date:                                                          Date:
April 12, 2023                                                 April 12, 2023

The 3rd Best Internet Banking Convventional Bank (KBMI) 3      The Best Wealth Management Conventional Bank (KBMI) 3
Category: Asset Class >IDR200 T                                Category: Asset Class >IDR200
Event:                                                         Event:
Digital Brand Award 2023                                       Digital Brand Award 2023
Organizer:                                                     Organizer:
Infobank                                                       Infobank
Date:                                                          Date:
April 12, 2023                                                 April 12, 2023

The Best Mortgage Loan Conventional Bank (KBMI) 3              The 2nd Highest Digital Index Bank Savings Account
Category: Asset Class >IDR200 T                                Event:
Event:                                                         Digital Brand Award 2023
Digital Brand Award 2023                                       Organizer:
Organizer:                                                     Infobank
Infobank                                                       Date:
Date:                                                          April 12, 2023
April 12, 2023




194          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                2023 Annual Report




The 3rd Best Mobile Banking Conventional Bank (KBMI) 3    KPR BTN - Gold Champion
Category: Asset Class >IDR200 T                           Event:
Event:                                                    Indonesia WOW Brand 2023
Digital Brand Award 2023                                  Organizer:
Organizer:                                                Markplus Insight
Infobank                                                  Date:
Date:                                                     May 11, 2023
April, 12 2023

BTN Syariah Bronze Champion                               Best Banks 2023
Event:                                                    Event:
Indonesia WOW Brand 2023                                  Investor Daily Award 2023
Organizer:                                                Organizer:
Markplus Insight                                          Investor Daily
Date:                                                     Date:
May 11, 2023                                              May 26, 2023

Third Place in Industrial Category                        Social CSR Initiatives - Pelatihan Developer
Event:                                                    Event:
Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK)   CSR Award 2023
Organizer:                                                Organizer:
TrackAML Hackathon 21 Tahun APUPPT Indonesia              Investor Daily
Date:                                                     Date:
May 30, 2023                                              May 31, 2023

Best Customer Service Performance of 11 Banks             Best Teller Performance of 11 Banks
in 2022-2023                                              in 2022-2023 (Number 8)
Event:                                                    Event:
Bank Service Excellence Monitor 2023                      Bank Service Excellence Monitor 2023
Organizer:                                                Organizer:
Infobank dan Marketing Research Indonesia                 Infobank dan Marketing Research Indonesia
Date:                                                     Date:
May, 2023                                                 May, 2023

Best Performance in Comfort at 11 Bank Branch Offices     Best Performance in Comfort at Priority Branch Offices of 11
in 2022-2023 (Number 10)                                  Banks in 2022-2023 (Number 6)
Event:                                                    Event:
Bank Service Excellence Monitor 2023                      Bank Service Excellence Monitor 2023
Organizer:                                                Organizer:
Infobank dan Marketing Research Indonesia                 Infobank dan Marketing Research Indonesia
Date:                                                     Date:
May, 2023                                                 May, 2023

Best Performance of 11 Bank Priority Staff                Best Mobile Banking Performance of 10 Banks
in 2022-2023 (Number 6)                                   in 2022-2023 (Number 3)
Event:                                                    Event:
Bank Service Excellence Monitor 2023                      Bank Service Excellence Monitor 2023
Organizer:                                                Organizer:
Infobank dan Marketing Research Indonesia                 Infobank dan Marketing Research Indonesia
Date:                                                     Date:
May, 2023                                                 May, 2023




                                                             PT Bank Tabungan Negara (Persero) Tbk                 195
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                          Company
                          Profile




Best Internet Banking Performance of 10 Banks              Best Performance in Social Media Management for 10 Banks
in 2022-2023 (Number 10)                                   in 2022-2023 (Number 10)
Event:                                                     Event:
Bank Service Excellence Monitor 2023                       Bank Service Excellence Monitor 2023
Organizer:                                                 Organizer:
Infobank dan Marketing Research Indonesia                  Infobank dan Marketing Research Indonesia
Date:                                                      Date:
May, 2023                                                  May, 2023

Best Performance of Cash ATMs in Public Area 10 Banks      Top CSR Star 4
in 2022-2023 (Number 6)                                    Event:
Event:                                                     Top CSR Award 2023
Bank Service Excellence Monitor 2023                       Organizer:
Organizer:                                                 Top Business
Infobank dan Marketing Research Indonesia                  Date:
Date:                                                      June 9, 2023
May, 2023

Best Mid Cap - Gold                                        The World’s Best Islamic Project Finance House 2023
Event:                                                     Event:
FinanceAsia’s 23rd Best Companies in Asia Award            Brand Awards Winners 2023
Organizer:                                                 Organizer:
Finance Asia’s                                             EuroMoney
Date:                                                      Date:
June 14, 2023                                              June 14, 2023

The 1st Best - Convenience Branch Experience in Priority   Tempo-IDN Financial Index Constituents Main Index Category
Service - Conventional Bank                                Event:
Event:                                                     Malam Apresiasi Emiten Launching Indeks Tempo-IDN Financials 52
20th Infobank - MRI Banking Service Excellent 2023         Organizer:
Organizer:                                                 TEMPO dan IDN Financials
Infobank dan Marketing Research Indonesia (MRI)            Date:
Date:                                                      June 23, 2023
June 20, 2023

The Best Indonesia Sales Marketing Award -VI -2023         Elisabeth Novie Riswanti -
Category Bank BUKU 3                                       Indonesia Most Powerful Women 2023
(Platinum Award Score 93-very excellent)                   Event:
Event:                                                     Indonesia Most Powerful Women 2023
ISMA Sales & Marketing Award 2023                          Organizer:
Organizer:                                                 SWA
Economic Review (media)                                    Date:
Date:                                                      June 27, 2023
June 23, 2023

4th Indonesia Top Bank Award 2023                          Excellence in Executing People Transformation
Event:                                                     in Banking Industry
Indonesia Top Bank Award 2023                              Event:
Organizer:                                                 The 8th Annual 2023 SPEx2 DX Award “Executing Digital
The Iconomic                                               Transformation”
Date:                                                      Organizer:
June 27, 2023                                              GML Consulting & Kontan
                                                           Date:
                                                           July 10, 2023




196         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                  2023 Annual Report




Wealth Management Platform of The Year                    Excellent - Learning & Development
Event:                                                    and Knowledge Management
Retail Banking Awards 2023                                Event:
Organizer:                                                HR Excellence Awards 2023
Asian Banking & Finance (media)                           Organizer:
Date:                                                     SWA Network & Lembaga Manajemen FEB UI (LMFEBUI)
July 25, 2023                                             Date:
                                                          July 20, 2023

Very Good - Reward Management                             Very Good - Employer Branding and Talent Acquisition
& Talent Retention Strategy                               Event:
Event:                                                    HR Excellence Awards 2023
HR Excellence Awards 2023                                 Organizer:
Organizer:                                                SWA Network & Lembaga Manajemen FEB UI (LMFEBUI)
SWA Network & Lembaga Manajemen FEB UI (LMFEBUI)          Date:
Date:                                                     July 20, 2023
July 20, 2023

BTN Syariah - Rank 2 - Bank with the Most Financing       Bank BTN - Rank 1 - Bank with the Most Financing
Distribution in Quarter 2 (Q2) 2023                       Distribution in Quarter 2 (Q2) 2023
Event:                                                    Event:
Penghargaan BP Tapera                                     Penghargaan BP Tapera
Organizer:                                                Organizer:
BP Tapera                                                 BP Tapera
Date:                                                     Date:
July 26, 2023                                             July 26, 2023

Rank 3 - Bank with Commitment Achievement above 100% in   Bank BTN Syariah - National Bank with the Highest
Quarter 2 (Q2) 2023                                       Occupancy Rate in Semester 2 (Q2) of the Year 2023
Event:                                                    Event:
Penghargaan BP Tapera                                     Penghargaan BP Tapera
Organizer:                                                Organizer:
BP Tapera                                                 BP Tapera
Date:                                                     Date:
July 26, 2023                                             July 26, 2023

Bank BTN Syariah - Rank 6 - Bank with Commitment          Best Saving Bank
Achievement Above 100% Semester 2 (Q2) Year 2023          Event:
Event:                                                    Best Savings Bank in Indonesia 2023
Penghargaan BP Tapera                                     Organizer:
Organizer:                                                Global Brands Magazine
BP Tapera                                                 Date:
Date:                                                     July 31, 2023
July 26, 2023

Influential Leader in Digital Media                       Best Campaign - Banking & Finance
Event:                                                    Event:
IDEAS Indonesia DEI & ESG Awards                          MOB-EX Award 2023
Organizer:                                                Organizer:
Humas Indonesia                                           Marketing Interaktive
Date:                                                     Date:
August 4, 2023                                            August 14, 2023




                                                             PT Bank Tabungan Negara (Persero) Tbk               197
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                        Company
                        Profile




Excellent Financial Performance Bank in 2022 (KBMI 3)   The Greatest Champions of GRC Excellence
Event:                                                  Category: Banking Industries
28th Infobank Award                                     Event:
Organizer:                                              GRC & Performance Excellence Awards 2023
Infobank                                                Organizer:
Date:                                                   Businessnews
August 25, 2023                                         Date:
                                                        August 30, 2023

The Best GRS for IT/Digital Transformation 2023         The Best CEO for GRC Excellence 2023
Category: Banking Industries                            Category: Banking Industries
Event:                                                  Event:
GRC & Performance Excellence Awards 2023                GRC & Performance Excellence Awards 2023
Organizer:                                              Organizer:
Businessnews                                            Businessnews
Date:                                                   Date:
August 30, 2023                                         August 30, 2023

The Best Chief Compliance Officer 2023                  TrenAsia ESG Award 2023
Category: Banking Industries                            Event:
Event:                                                  TrenAsia ESG Award 2023
GRC & Performance Excellence Awards 2023                Organizer:
Organizer:                                              TrenAsia
Businessnews                                            Date:
Date:                                                   August 30, 2023
August 30, 2023

Top GRC Award 2023 Star 5                               The Most Committed GRC Leader 2023
Event:                                                  Event:
Top GRC Awards 2023                                     Top GRC Awards 2023
Organizer:                                              Organizer:
Top Business                                            Top Business
Date:                                                   Date:
September 6, 2023                                       September 6, 2023

The Most The High Performing Board of Commissioner on   TrenAsia ESG The Best Financial Sector dan Top 50 Biggest
GRC 2023                                                Market Capitalization Public Listed Companies
Event:                                                  Event:
Top GRC Awards 2023                                     The 14th IICD Awards 2023
Organizer:                                              Organizer:
Top Business                                            IICD
Date:                                                   Date:
September 6, 2023                                       September 18, 2023

The Most Prominent Book 3 Bank in Property Credit       The Most Prominent State Owned Company Book 3 Bank in
Event:                                                  Financial Contribution to The Nation
Prominent Award                                         Event:
Organizer:                                              Prominent Award
Metro TV - Solutee.id                                   Organizer:
Date:                                                   Metro TV - Solutee.id
September 18, 2023                                      Date:
                                                        September 18, 2023




198            PT Bank Tabungan Negara (Persero) Tbk
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                                                                     2023 Annual Report




Best Bank for CSR in Indonesia                The Best Quality Team - Gold
Event:                                        Event:
AsiaMoney Awards                              The Best Contact Center Indonesia 2023
Organizer:                                    Organizer:
AsiaMoney                                     Indonesia Contact Center Association (ICCA)
Date:                                         Date:
September 26, 2023                            September 26, 2023

The Best Employee Engagement - Gold           The Best Business Contribution - Silver
Event:                                        Event:
The Best Contact Center Indonesia 2023        The Best Contact Center Indonesia 2023
Organizer:                                    Organizer:
Indonesia Contact Center Association (ICCA)   Indonesia Contact Center Association (ICCA)
Date:                                         Date:
September 26, 2023                            September 26, 2023

The Best Technology Innovation - Gold         106 Influential Companies and Agencies in
Event:                                        the Field of Communications
The Best Contact Center Indonesia 2023        Event:
Organizer:                                    Sewindu PR Indonesia
Indonesia Contact Center Association (ICCA)   Organizer:
Date:                                         PR Indonesia
September 26, 2023                            Date:
                                              September 26, 2023

Indonesia Service Experience of the Year      Indonesia Partner Experience of the Year
Event:                                        Event:
The Asian Experience Awards 2023              The Asian Experience Awards 2023
Organizer:                                    Organizer:
The Asian Business Review                     The Asian Business Review
Date:                                         Date:
October 5, 2023                               October 5, 2023

TOP Human Capital Awards 2023 # Stars 4       The Most Committed Human Capital Leader 2023 –
Event:                                        Bpk. Nixon L.P. Napitupulu
TOP Human Capital Awards 2023                 Event:
Organizer:                                    TOP Human Capital Awards 2023
TOP Business                                  Organizer:
Date:                                         TOP Business
October 19, 2023                              Date:
                                              October 19, 2023

Education Category                            Best of All By Audience, Activity, Engangement
Event:                                        Event:
Anugerah CSR 2023                             KIP Awards 2023
Organizer:                                    Organizer:
Republika.co.id                               BUMN Track
Date:                                         Date:
October 26, 2023                              October 27, 2023




                                                 PT Bank Tabungan Negara (Persero) Tbk         199
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                         Company
                         Profile




Silver Winner for Excellence in Omnichannel                         Gold Rank
Event:                                                              Event:
Marketing Excellence Awards 2023                                    ASRRAT 2023
Organizer:                                                          Organizer:
Marketing Interactive                                               National Center fof Corporate Reporting (NCCR)
Date:                                                               Date:
October 31, 2023                                                    November 6, 2023

The Most Active Bank in Transformation                              The Highest Profit Growth of Sharia Unit Business Bank
and Digital Innovation 2023                                         Event:
Event:                                                              TOP 20 Financial Institutions 2023
TOP 20 Financial Institutions 2023                                  Organizer:
Organizer:                                                          The Finance
The Finance                                                         Date:
Date:                                                               November 14, 2023
November 14, 2023

The Best Mortgage Innovation                                        1st Place in Financial BUMN Company Category:
Event:                                                              Financial BUMN Company
CSA Awards 2023                                                     Event:
Organizer:                                                          Annual Report Award 2022
CSA Community                                                       Organizer:
Date:                                                               Annual Report Award 2022
November 23, 2023                                                   Date:
                                                                    November 27, 2023

5 STARS DIAMOND The Best Human Capital Women Leader                 5 STARS DIAMOND The Best Human Capital Team of The Year
of The Year (Rahmayati)                                             (Banking Industries)
Event:                                                              Event:
Human Capital & Performance Awards 2023                             Human Capital & Performance Awards 2023
Organizer:                                                          Organizer:
BuinessNews, Cooperation with FHCI, IICD, IIPG, HC Institute USA,   BuinessNews, Cooperation with FHCI, IICD, IIPG, HC Institute USA,
UI.                                                                 UI.
Date:                                                               Date:
November 29, 2023                                                   November 29, 2023

5 STARS DIAMOND The Best Digital Transformation Strategy            5 STARS DIAMOND The Best Human Capital Director
2023 (Banking Industries)                                           of The Year (Eko Waluyo)
Event:                                                              Event:
Human Capital & Performance Awards 2023                             Human Capital & Performance Awards 2023
Organizer:                                                          Organizer:
BuinessNews, Cooperation with FHCI, IICD, IIPG, HC Institute USA,   BuinessNews, Cooperation with FHCI, IICD, IIPG, HC Institute USA,
UI.                                                                 UI.
Date:                                                               Date:
November 29, 2023                                                   November 29, 2023

The High Performing Board of Commisioners on GRC 2023               Nixon L. P Napitupulu as The Most Committed
Event:                                                              GRC Leader 2023
TOP GRC AWARDS 2023                                                 Event:
Organizer:                                                          TOP GRC AWARDS 2023
TOP GRC                                                             Organizer:
Date:                                                               TOP GRC
November 29, 2023                                                   Date:
                                                                    November 29, 2023




200           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                 2023 Annual Report




Top GRC Awards 2023 5 Stars                                PT Bank Tabungan Negara (Persero) Tbk with
Event:                                                     AA Leadership Predicate
TOP GRC AWARDS 2023                                        Event:
Organizer:                                                 ESG Disclosure Transparency Awards 2023
TOP GRC                                                    Organizer:
Date:                                                      Investortrust
November 29, 2023                                          Date:
                                                           November 29, 2022

Nixon L. P Napitupulu Bankers of the Year 2023             Nixon L. P Napitupulu Top 100 CEO
Event:                                                     Event:
Bankers of The Year 2023                                   Bankers of The Year 2023
Organizer:                                                 Organizer:
Infobank                                                   Infobank
Date:                                                      Date:
December 5, 2023                                           December 5, 2023

Setiyo Wibowo The Next 200 Leaders                         Benny Yoslim The Next 200 Leaders
Event:                                                     Event:
Bankers of The Year 2023                                   Bankers of The Year 2023
Organizer:                                                 Organizer:
Infobank                                                   Infobank
Date:                                                      Date:
December 5, 2023                                           December 5, 2023

The Best IT For Public Company – 2023 Platinum Award (A)   The Best CMO Branding & Marketing -
Very Excellent – Category: Bank                            Creative Marketing Initiative.
Event:                                                     Event:
Indonesia Information Technology Award V 2023              BUMN Branding and Marketing Awards 2023
Organizer:                                                 Organizer:
Economic Review                                            BUMN Track
Date:                                                      Date:
December 08, 2023                                          December 13, 2023

Platinum Winner - Digital Branding                         Platinum Winner - Impactful Innovation Technology
Event:                                                     Event:
BUMN Branding and Marketing Awards 2023                    BUMN Branding and Marketing Awards 2023
Organizer:                                                 Organizer:
BUMN Track                                                 BUMN Track
Date:                                                      Date:
December 13, 2023                                          December 13, 2023

Gold Winner - Brand Communication & Activation             Gold Winner - Brand Sensitivity
Event:                                                     Event:
BUMN Branding and Marketing Awards 2023                    BUMN Branding and Marketing Awards 2023
Organizer:                                                 BUMN Track
BUMN Track                                                 Date:
Date:                                                      December 13, 2023
December 13, 2023

Informative Public Agency
Event:
Anugrah Keterbukaan Informasi Publik 2023
Organizer:
Komisi Informasi Pusat
Date:
December 19, 2023




                                                              PT Bank Tabungan Negara (Persero) Tbk            201
Page 204
                           Company
                           Profile




                                                   CERTIFICATION

ISO 9001:2015                                                ISO 37001:2016
Validation:                                                  Validation:
September 15, 2020 – August 11, 2023                         August 11, 2020 – August 10, 2023
Certification Recipient:                                     Certification Recipient:
Internal Audit Division                                      Commercial Banking Division (CMBD), Corporate Syndication &
Issued by:                                                   Transaction Banking Division (CSTD), Procurement & Fixed Asset
SGS                                                          Management Division (PFAD)
                                                             Issued by:
                                                             Komite Akreditasi Nasional

ISO 9001:2015                                                Indi 4.0 Level 3 Certificate
Validation:                                                  Validation:
April 6, 2022 – October 19, 2024                             July 18, 2022 – July 18, 2025
Certification Recipient:                                     Certification Recipient:
Compliance and Governance Division (CMGD)                    PT Bank Tabungan Negara (Persero) Tbk
Issued by:                                                   Issued by:
SGS                                                          Kementerian Perindustrian

ISO 37001:2016                                               ISO 37001:2016
Validation:                                                  Validation:
December 21, 2022 – December 20, 2025                        December 21, 2022 – December 20, 2025
Certification Recipient:                                     Certification Recipient:
Unit SME Restructuring Kantor Wilayah 1                      Commercial Credit Risk Division
Issued by:                                                   Issued by:
Komite Akreditasi Nasional                                   Komite Akreditasi Nasional

ISO 37001:2016                                               ISO 37301:2021
Anti Bribery Management System                               Management Compliance System
Validation:                                                  Validation:
March 19, 2021 – January 6, 2024                             January 23, 2023 – January 22, 2026
Certification Recipient:                                     Certification Recipient:
Small Medium Enterprises Banking Division (SMBD)             Compliance and Governance Division (CMGD)
Issued by:                                                   Issued by:
Komite Akreditasi Nasional                                   BSI

ISO 27001:2013                                               ISO 9001:2015
Informastion System Management System                        Informastion System Management System
Validation:                                                  Validation:
July 11, 2023 – October 31, 2025                             19 Maret 2021 – 6 Januari 2024
Certification Recipient:                                     Certification Recipient:
Data Center                                                  Non Subsidized Mortgage and Personal Lending Division
Issued by:                                                   Issued by:
BSI                                                          SGS




202          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                            2023 Annual Report




Information Available
on the Website

The Company has the official website with the address www. btn.co.id. This website contains the latest information about the Company
Corporation, whether it is e-Banking login for customers, information about the Company and its products, profile, organization
management and good corporate governance transparency, to the latest news. This website is a publicly accessible portal, with the aim
of providing comprehensive information about the Company to the audience.


The Company is committed to continuously developing the website as part of the transparency of information to the public.




   Corporate group structure and                Contents of the Code of Conduct               Information on General Meeting of
   shareholder information up to the                                                          Shareholders (GMS) covers at least
   individual end owner                                                                       materials discussed in the GMS, GMS
                                                                                              minutes summary and important
                                                                                              date information i.e. the the date of
    Table of Company Group Structure,             https://www.btn.co.id/id/Tata-              GMS announcement, the date of GMS
    https://www.btn.co.id/id/Tentang-             Kelola pada kanal “Tata Kelola              Summon, the date of GMS holding and
    Kami                                          Perusahaan”                                 the date of GMS Summary publication


                                                                                                https://www.btn.co.id/Investor-
                                                                                                Relation- Home pada kanal “RUPS”




 Environmental,                                                                                                  Ease of access
 social, and corporate                                                                                           to products and
 governance (ESG)                                                                                                promotions



  https://www.btn.
                                                                                                                  https://www.
  co.id/Investor-
                                                                                                                  btn.co.id/ on the
  Relation-Home
                                                                                                                  product channel
  on the ESG channel




   Separate annual financial statements         Profile of the Board of Commissioners         Manuals/Charters of the Board of
   (last 5 years)                               and the Board of Directors                    Commissioners, Board of Directors,
                                                                                              Committees and Internal Audit


    https://www.btn.co.id/Investor-               https://www.btn.co.id/Tentang-                https://www.btn.co.id/id/Tata-
    Relation- Home on the “Company                Kami, in “Leadership” channel                 Kelola on “Corporate Governance”
    Report”                                                                                     channel




                                                                            PT Bank Tabungan Negara (Persero) Tbk                     203
Page 206
MANAGEMENT DISCUSSION
AND ANALYSIS ON BANK
PERFORMANCE


204   PT Bank Tabungan Negara (Persero) Tbk
Page 207
In 2023, in accordance with the Company’s Transformation Journey
phase in 2023, namely “Digital Disruption to Master the Housing
Ecosystem”. The Company succeeded in exceeding the set income
target, net income in 2023 was realized at IDR3.50 trillion with
growth of 14.97% (yoy), this increase was due to the success of the
Company’s strategy in improving loan quality, expanding high yield
loan and optimizing other operating income.




                          PT Bank Tabungan Negara (Persero) Tbk   205
Page 208
                                     Management Discussion and Analysis
                                     on Bank Performance




Economic
Review

Global Economic Analysis
                                                                                Until December 2023, the Fed has raised its benchmark interest
In 2023, global economic conditions was slightly hampered as                    rate to 5.50% or reached 525 bps since February 2022. This
a result of political tensions between Russia and Ukraine. This                 aggressive increase in the Federal Funds Rate (FFR) was predicted
caused commodity and energy prices to rise, which caused                        to remain high with a longer cycle encouraging the continued
inflation which encouraged Central Banks from many countries to                 strength of the United States dollar (US) thus putting pressure
increase their benchmark interest rates to control inflation in each            on exchange rates in various countries. The pressure to weaken
country. Towards the end of 2023, global economic conditions                    the exchange rate increased in line with the high uncertainty
showed improvement, inflation and benchmark interest rates                      in global financial markets. The outflow of foreign portfolio
in several countries were slowly being lowered. On the other                    investment added to exchange rate pressure in developing
hand, in 2024, the economies of developing countries such as                    countries, including Indonesia. In January 2024, the World Bank
Indonesia and India are expected to continue to grow beyond                     lowered its projection for world economic growth in 2023 to
those achieved in 2023. The economies of developed countries                    2.6%, and decreased slightly to 2.4% for 2024. This condition
such as the United States and Japan are expected to grow more                   was driven by the inflation rate in developed countries which
slowly than in 2023. China’s economy in 2024 is also expected                   was still above the target with pressure starting to ease. With this
to slow down.                                                                   development in inflation, monetary policy interest rates including
                                                                                the Federal Funds Rate (FFR) were predicted to remain high for a
                                                                                long period of time (higher for longer).




                             Graph of Global Economic Growth Projections for 2023 and 2024
                                                                       (in %)



    7.0%           6.4%
           6.3%
    6.0%
                             5.0%                 5.2%
                                     4.9%
    5.0%                                                 4.5%          4.3%
                                                                3.9%
    4.0%

    3.0%                                                                          2.6%             2.5%
                                                                                          2.4%
                                                                                                                   1.8%
    2.0%                                                                                                  1.6%
                                                                                                                           0.9%
    1.0%                                                                                                                                   0.7%
                                                                                                                                    0.4%

       0

              India            Indonesia             China       Malaysia            Global      Amerika Serikat      Jepang         Uni Eropa

                  2023                     2024
        Source: World Bank, January 2024




Indonesia Economic Analysis

Indonesia’s economic growth in the third quarter of 2023 again                  Sectorally, the highest growth occurred in the Transportation
recorded positive results of 4.94% yoy, slightly lower than the                 and Warehousing sector, followed by the Other Services
previous quarter. Indonesia’s economic growth was below 5%,                     sector. Meanwhile, in terms of expenditure, the Non-Profit
after seven consecutive quarters of above 5%. This indicated that               Institutions Serving Households (LNPRT) Consumption component
the Indonesian economy was increasingly recovering and solid.                   experienced the highest growth, followed by the Investment/
                                                                                PMTB component and household consumption.




206         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                        2023 Annual Report




                                     Indonesia’s Economic Growth until the Third Quarter of 2023
                                                                                   (in %)



                                                                                   7.07
                                                                                                                        5.44     5.72
    5.07     5.05     5.02    4.97                                                                     5.02     5.01                      5.01    5.04   5.17   4.94
                                                                                              3.51
                                       2.97




                                                                          (0.74)
                                                                 (2.19)
                                                        (3.49)
                                               (5.32)


    Q1       Q2       Q3       Q4      Q1       Q2       Q3      Q4       Q1       Q2          Q3      Q4       Q1       Q2      Q3       Q4      Q1     Q2     Q3

                2019                               2020                                2021                                2022                          2023

  Source: Central Bureau of Statistics (BPS), November 2023




Improvements in the national economy were expected to continue                              Banking Industry Analysis
until the fourth quarter of 2023. The development of leading
indicators until December 2023 still showed positive results, such                          The Financial Services Authority noted that the performance of the
as the Consumer Confidence Index which was still high at 123.8,                             financial services sector, especially banking, in 2023 was still solid
the Manufacturing PMI which was still at an expansion level of                              with indicators of available capital and liquidity as well as controlled
52.3 and the Real Sales Index which reached 217.9. In January                               credit risk. The banking intermediation function in November 2023
2024, the World Bank maintained its projection for Indonesia’s                              again recorded an increasing trend with credit growing by 9.74%
economic growth in 2023 at 5.0% and the projection for 2024                                 yoy. This growth was mainly supported by working capital loans
at 4.9%. This was triggered by continuing global inflationary                               which grew 10.14% yoy. Meanwhile, on a monthly basis, nominal
pressures and global financial market uncertainty which caused a                            growth in banking financing increased by IDR63 trillion to IDR6,966
slowdown in the national economy. Meanwhile on the monetary                                 trillion. Meanwhile, Third Party Funds in November 2023 were
side, after BI maintained the interest rate at 5.75% for 8 (eight)                          recorded to have grown by 3.04% yoy to IDR8,216 trillion, with the
consecutive months, BI increased its benchmark interest rate by                             growth rate increasing, mainly driven by an increase in deposits of
25 bps to 6.00% in October 2023 to strengthen the Rupiah                                    3.50% yoy. Credit risk continued to decline with a banking NPL ratio
exchange rate stabilization policy. Apart from that, this increase                          of 2.36%. On the other hand, Covid-19 restructuring loans again
also became a pre-emptive and forward looking step to mitigate                              recorded a decline of IDR15.84 trillion to IDR285.32 trillion, with
its impact on imported goods inflation, so that general and core                            the number of customers also decreasing to 1.14 million customers
inflation remained under control within Bank Indonesia’s targets.                           after in October 2023 it was recorded at 1.22 million customers.


National economic growth continued its positive trend in the                                Banking industry liquidity in November 2023 was at an adequate
fourth quarter of 2023. Overall, the Government estimated that                              level with maintained liquidity ratios. The Liquid Assets/Non-Core
the Indonesian economy grew by 4.8%-5.2% yoy at the end of                                  Deposit (AL/NCD) ratio was 115.73%, an increase compared to
2023, supported by several policy incentives at the end of the                              October 2023 which was 117.29% or far above the regulatory
year to support household consumption. The inflation rate, both                             threshold of 50%. Meanwhile, Liquid Assets/TPF (AL/TPF) was
general and core, remained under control with the coordination                              26.04%, an increase compared to the achievement in October
of Bank Indonesia, the Central and Regional Governments which                               2023 which was 26.36%, still above the regulatory threshold
caused the inflation rate to remain maintained at the level of 3.0%                         of 10%. Meanwhile, the Net Open Position (PDN) in November
± 1.0% at the end of 2023. Meanwhile, the Rupiah exchange                                   2023 was recorded at 1.58%, also far below the threshold of
rate was still influenced by the dynamics of the global market so                           20%. Meanwhile, in terms of capital, the Banking industry’s Capital
that pressure on the Rupiah continued and the Rupiah exchange                               Adequacy Ratio (CAR) in November 2023 was recorded to have
rate against the US Dollar could be at the level of 15,399 at the                           increased to 27.89% from the position in October 2023 which was
end of 2023.                                                                                27.44%.


                                                                                            Source: Financial Services Authority, November 2023




                                                                                                 PT Bank Tabungan Negara (Persero) Tbk                           207
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                                                           Management Discussion and Analysis
                                                           on Bank Performance




Housing Industry Analysis

The Real Estate sector again recorded positive growth of 2.21%                                                                        even though economic conditions contract during the pandemic. The
yoy in the third quarter of 2023, stronger compared to growth in                                                                      housing sector still had enormous room for growth considering the
the second quarter of 2022 which was 0.96% yoy. The Real Estate                                                                       high number of national housing backlogs and the high number of
sector became one sector that continued to record positive growth                                                                     people who did not have adequate housing yet.


                                                                                             Graph of Sectoral GDP Growth
                                                                                                                             (in %)

                                                                                                                                                                                       25.81




                                                                                                                                                                                               15.28 14.74
                                                                                                                                                              12.42

                                                                                                                             8.02 8.52                                8.15
                                                                                          6.39                   6.95 6.88
  4.83 4.55 5.20                                   5.35 5.25 5.08          5.23                         5.01                                           5.24                                                         5.43
                                                                                                                                                                                                             4.46
                                                                                                 3.22                                           2.88
                      1.65 2.02 1.46                                                                                                                                                                                                                   2.21
                                                                    0.63                                                                 0.87                                                                                       0.63 0.96



                                                                                                                                                                                                                           (2.07)

                                                                                                                                                                              (6.23)


     18.75%             13.57%                       12.96%            9.86%                       10.18%                4.22%              4.06%                2.61%                    5.98%                 2.95%                  2.40%
                                                                                                                        Communication




                                                                                                                                                                  Administration


                                                                                                                                                                                         Transportation
                                                                                                                                                                  Governmental




                                                                                                                                                                                          Warehousing
       Manufacture




                                                                           Construction
                                                     Trading and




                                                                                                                                           Service and




                                                                                                                                                                                                                Educational
                                                                                                                         Information
                             Agriculture




                                                                                                                                                                                                                                         Real Estate
                                                                                                                                            Insurance
                                                                                                                                             Financial
                                                       General




                                                                                                                                                                                                                  Service
                                                                                                        Mining
                                                        Retail




                                                                                                                                                                                              and
                                                                                                                             and




       Q3 2022                             Q2 2023                  Q2 2023
 Source: Central Bureau of Statistics (BPS), November 2023




The extension of the Government’s stimulus in the housing sector                                                                      The magnitude of this Government support could be seen in the
encouraged demand for houses in 2023. This stimulus included                                                                          growth of National KPR until the third quarter of 2023 which
easing the Loan to Value/Financing to Value (LTV/FTV) Property                                                                        grew to 12.66% yoy, so that KPR growth continued to reach 2
Loans/Financing Ratio to a maximum of 100% for all types of                                                                           (two) digits since the second quarter of 2023. Meanwhile, total
property as well as the Value Added Tax (VAT) policy) Covered                                                                         national loans growth grew to 8.96% yoy, an increase compared
by the Government (DTP) which took effect in November 2023.                                                                           to the second quarter of 2023 which was 7.76% yoy.


                                                          Growth in Total Loan and Total KPR until Quarter III 2023
                                                                                                                             (in %)


                                                                                                                                                                                                                                         12.66%
                                                                                                                                                                        11.00%            11.35%
                                                                                                                                         10.55%        10.66%                                                              10.82%
                                                                                                                                                                                                          9.93%
                                                                                                             9.32%           9.55%
    8.00%                                                                                                                                                                                  7.82%
                                                                                            7.22%                                                                        7.56%
                                                                                                                                                        6.81%                                             7.06%                             8.96%
    6.40%
                                                                                                                                                                                                                              7.76%
                                                                                                                                         6.67%
                                                                     4.30%
                     3.50%                              3.50%                                                                5.24%
                                           2.10%

                                                                                                             2.21%
                     1.49%
                                           0.12%                                            0.59%


                                                        (2.41%)
                                                                    (3.77%)

     Q1               Q2                    Q3           Q4           Q1                     Q2                  Q3           Q4          Q1             Q2                 Q3                 Q4            Q1               Q2               Q3

                           2020                                                                    2021                                                         2022                                                       2023
  Source: Indonesian Banking Statistics, Financial Services Authority, November 2023




208                  PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                    2023 Annual Report




Bank BTN’s Housing Finance Center released the House Price                                   large types (46 m2–70 m2). The growth in the house price index
Index (HPI) in Quarter III 2023, with an index of 211.86 and                                 reflected the continued high demand for houses in the country
strong growth of 8.66% yoy. The growth of BTN HPI was                                        amidst national economic growth which continued to increase as
supported by growth in all types of houses, namely small type                                people’s economic activity returns.
houses (21 m2-36 m2), medium type houses (37 m2–45 m2) and


         Graph of House Price Growth According to the House Price Index for the Third Quarter of 2023

10.00                                                                                                                                                      250.00

 9.00                                                                                                                                              8.66

 8.00                                                                                                                                                      200.00
                                                                                                                                          7.14
 7.00                                                                                                       6.56     6.80       6.58
                                                                                                 6.00
 6.00                                                                   5.44          5.64                                                                 150.00
                                5.24
                                            5.02          4.94
 5.00
         4.29        4.23
 4.00                                                                                                                                                      100.00
                                                                                                                                                   3.01
 3.00
                                                                                                                                          2.05
 2.00                                                                                 1.78                  1.57     1.78       1.57                       50.00
                                1.59                                    1.55                     1.50
         1.11        1.07                   1.16          1.03
 1.00

 0.00                                                                                                                                                      0.00

        Sep-20     Dec-20     Mar-21      Jun-21         Sep-21        Dec-21     Mar-22        Jun-22     Sep-22   Dec-22    Mar-23     Jun-23   Sep-23

                Indeks             QoQ                           YoY
      Source: Housing Finance Center BTN, October 2023




Analysis of Bank BTN in the Banking Industry

To describe the Company’s position among national banks as of November 2022, the following explanation can be provided:


Table of Comparison of Banking Performance November 2023

                                                                                                         Asset
 No                 Bank
                                        November 2023                  December 2022            November 2022                  YTD                 YOY

  1     BRI                                   1.774                        1.751                        1.679                 1,31%                5,65%

  2     Mandiri                               1.628                        1.570                        1.502                 3,67%                8,36%

  3     BCA                                   1.354                        1.283                        1.283                 5,54%                5,61%

  4     BNI                                     977                             998                      976                 (2,10%)               0,11%

  5     BTN                                     423                             402                      398                  5,30%                6,53%

        Position of December 2023               440

  6     CIMB NIAGA                              324                             302                      300                  7,32%                7,78%

  7     BSI                                     320                             306                      284                  4,83%               12,86%

  8     OCBC NISP                               253                             239                      233                  6,17%                8,51%

  9     Panin                                   188                             194                      187                 (2,95%)               0,41%

 10     Danamon                                 193                             184                      177                  5,18%                8,87%

 11     BTPN                                    176                             189                      185                 (6,95%)              (4,93%)

 12     Permata                                 245                             255                      240                 (4,15%)               1,76%




                                                                                                PT Bank Tabungan Negara (Persero) Tbk                      209
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                                  Management Discussion and Analysis
                                  on Bank Performance




                                                                            Asset
No               Bank
                                  November 2023       December 2022    November 2022         YTD       YOY

13    Maybank                            157                 149             160            5,32%     (1,92%)

14    BJB                                169                 170             168           (0,80%)     0,77%

15    UOB                                160                 138             141           15,40%     13,52%

16    Mega                               118                 142             133          (17,01%)   (11,81%)




                                                                       Loan & Financing
No               Bank
                                  November 2023       December 2022    November 2022         YTD       YOY

 1    BRI                              1.161               1.030           1.014           12,76%     14,48%

 2    Mandiri                          1.046                 933             920           12,16%     13,65%

 3    BCA                                758                 691             680            9,74%     11,47%

 4    BNI                                666                 643             626            3,71%      6,48%

 5    BTN                                328                 298             296            9,93%     10,93%

      Position of December 2023          334

 6    CIMB NIAGA                         200                 191             190            4,63%      5,10%

 7    BSI                                234                 207             205           13,17%     14,09%

 8    OCBC NISP                          149                 137             136            8,75%      9,53%

 9    Panin                              125                 120             120            3,57%      3,63%

10    Danamon                            139                 122             119           14,23%     16,73%

11    BTPN                               142                 135             137            5,24%      3,18%

12    Permata                            139                 136             136            1,90%      2,28%

13    Maybank                            101                  96              97            5,42%      4,35%

14    BJB                                114                 108             108            5,61%      5,71%

15    UOB                                 82                  86              83           (4,54%)    (1,41%)

16    Mega                                64                  70              69           (8,41%)    (6,11%)




                                                                       Third Party Fund
No               Bank
                                  November 2023       December 2022    November 2022         YTD       YOY

 1    BRI                              1.297               1.301           1.234          (0,32%)     5,09%

 2    Mandiri                          1.194               1.195           1.127          (0,08%)     5,97%

 3    BCA                              1.073               1.025           1.025           4,74%      4,70%

 4    BNI                                733                 763             743          (3,95%)    (1,41%)

 5    BTN                                330                 322             322           2,59%      2,62%

      Position of December 2023          350

 6    CIMB NIAGA                         238                 228             227           4,34%      4,43%

 7    BSI                                268                 261             248           2,32%      8,09%

 8    OCBC NISP                          180                 176             175           1,97%      2,63%

 9    Panin                              131                 131             128          (0,04%)     2,46%




210           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                           2023 Annual Report




                                                                                        Third Party Fund
 No              Bank
                                   November 2023        December 2022                   November 2022                 YTD                   YOY

 10    Danamon                            131                   126                             119                  4,08%                 9,54%

 11    BTPN                               101                   103                              99              (1,49%)                   2,71%

 12    Permata                            171                   196                             180             (12,35%)                  (4,65%)

 13    Maybank                            113                   106                             114                  6,57%                (0,73%)

 14    BJB                                124                   122                             123                  2,22%                 0,94%

 15    UOB                                121                   114                             116                  6,63%                 4,35%

 16    Mega                                85                   103                             93              (17,77%)                  (9,35%)


Until November 2022, the Company continued to be the 5th largest                 Company, have greater financial and other resources as well as a
bank in terms of assets. The Company’s assets until November 2023                wider network of branch offices and ATMs. In addition, in 1999,
reached IDR423 trillion, or experienced growth of 6.53% yoy. This                the government of the Republic of Indonesia removed the limit on
increase also occurred on the loan and financing side as well as                 foreign bank ownership and allowed foreign banks to open branch
the Company’s third party funds until November 2023. Loan and                    offices in Indonesia. Competition from previously operating banks
financing grew 10.93% yoy to IDR328 trillion and third party funds               and new banks, both domestic and foreign, in which foreign banks
grew 2.62% yoy to IDR330 trillion.                                               can implement joint ventures or investments in domestic banks, can
                                                                                 have a negative impact on the Company’s operational and financial
The Company faces competition in all business lines it operates.                 conditions.
The Company’s main competitors are domestic banks, and to a
narrower extent, foreign banks operating in Indonesia. For housing               As development and reform of Indonesia’s financial sector continues,
loans, the Company’s main competitors are domestic banks                         the Company likely faced competition from a number of financial
because foreign banks are not permitted to provide housing loans.                institutions that offered a wider range of banking products and
As a result of the global financial crisis, competition for funding,             services or loans with larger limits or had greater financial and other
especially retail funding that offers cheaper funding costs, has                 resources than the Company. Many financial institutions competed
become increasingly intense. The Company usually competes with                   for the same target customers as the Company’s targets, and many
other banks, especially in terms of extension and convenience of                 institutions had access to governments or business groups with
distribution channels, product range, prices, customer service and               greater financial resources. Several of the Company’s competitors
provisions for technology services.                                              had, and were predicted to, form strategic alliances with several
                                                                                 foreign banks with significantly greater management and financial
Apart from that, the Company indirectly faces competition from                   resources.
foreign banks. Some competitors are substantially larger than the


                        Graph of Outstanding Housing Loans Comparison of Banks in Indonesia
                                                                    (in IDR trillion)




                     251
       250



       200



       150
                                          118

       100

                                                               57                          53                   50
        50                                                                                                                           43



         0

                     BTN                 BCA                  BNI                        Mandiri               BRI              CIMB Niaga

                  2022                  2023




                                                                                        PT Bank Tabungan Negara (Persero) Tbk                       211
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                                  Management Discussion and Analysis
                                  on Bank Performance




Operational
Overview

Strategy Bank                                                             b. Upselling and cross selling programs for non-subsidized
                                                                             products to subsidized KPR customers who have or
The Bank’s strategic plans consists of short, medium and longterm            are almost paid off through analytics capabilities and
strategy.                                                                    upselling programs.
                                                                          c. Pre approved loans or credit to existing debtors who
Short and Medium Term Strategy                                               meet the criteria through the Eagle Project and Ultimate
                                                                             Project (KAR and KRING)
Credit Sector                                                          4. Widening Real Estate Value Chain That Targeting MSMEs And
                                                                          Contractors.
Strategic initiatives to develop credit business in the short and         a. Establishing an MSME financing center as an initiative to
medium term are as follows:                                                  support the expansion of SME loans, especially KUR.
1. Increasing The Contribution To The Government Subsidized               b. Cross selling Supply Chain Financing (SCF), Bank
    KPR (Mortgage) Program                                                   Guarantee (BG), Domestic Letter of Credit (SKBDN) and
    a. Optimizing Bank BTN’s portion of the FLPP and TAPERA                  e-Banking to SME, Commercial, Corporate and Agency
        Subsidized KPR quota.                                                customers.
    b. Developing the Rent to Own KPR scheme as an affordable             c. Increasing KUR distribution to captive customers,
        and equitable KPR scheme, targeting the millennial                   both self-employed debtors, subsidized KPR and non-
        generation.                                                          subsidized KPR.
    c. Developing funding scheme for affordable housing
        provision.                                                     Credit Quality and Financing Sector
    d. Partnership for housing funding of millennial and urban
        segment.                                                       Initiatives for business improvement in the areas of credit and
    e. Development of millennial housing projects with                 financing quality in the short and medium term are as follows
        affordable price and having complete facilities (working       1. Continuing Credit Business Process Improvement Initiatives
        space. walkable/close to everywhere) through Transit                a. Optimalization of regional Loan Processing Center
        Oriented Development (TOD) establishment.                                (RLPC).
2. Developing KPR (Mortgage) Market Share In The Emerging                   b. Implementation of Commercial Banking Center (CBC).
    Affluent And Affluent Segments                                          c. Continuing Repair process business credit epecially in
    a. Establishing a sales center that focuses on selling mortgages             the commercial and SME segments.
        to the emerging affluent segment, which in 2023 will open      2. Improve The Quality and Effectiveness of Collections
        sales centers in Jakarta-Kelapa Gading Square, Tangerang-           a. Standardization of the credit restructuring process
        BSD and Surabaya.                                                   b. Improve collection management
    b. Collaboration and marketing program with national and                     -   Implementation of collection scoring
        individual property agents, as a Direct to Customer (D2C)                -   Monitoring the productivity of Outsourced Power
        strategy.                                                                    (TAD) Collection.i-coll usage and contacted rate
    c. Developing collaboration with developers to develop                       -   Improving the business process of SME restructuring
        residential projects in the emerging affluent segment.                       and Commercial.
    d. Strengthening the BTN Property application and portal by             c. Developing an early warning system.
        end-to-end digitalization of the mortgage process. good for         d. Optimization of cooperation with lawyers. Regional
        consumers and developers                                                 Legal Representative (RLR). courts and BPN.
    e. Making one-stop-shop housing ecosystem for customers’           3. Accelerate Bulk Settlement of Bad Debts (Sales Asset Strategy)
        life-cycle.                                                         a. Sales through Investors or partners.
    f. Building an instant purchase platform as part of BTN                 b. Offering to potential investors/partners through small
        Property.                                                                gathering at each regional office or office branches that
3. Increase in High Yield Margin Loans                                           have large NPL outstanding (pareto).
    a. Increasing high yield credit (KRING, KAR, KUR) beyond                c. Sales through bulk sales.
        mortgage through up-selling and cross selling programs              d. Offering to potential investors/partners made in bulk to
        to captive customers, office and industrial areas.                       one party.
                                                                            e. Settlement of commercial credit through litigation.




212         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




    f. Coordinating Assets Sales Management work units with            1. Developing Fees from Digital and Transaction Banking
       Legal unit to litigate debtors which could potentially be          a. a. Accelerating the development of features in Bank
       done recovery.                                                        BTN’s new mobile banking.
    g. Sales through BTN’s low-cost home portal (www.                     b. Accelerate the implementation of digital on boarding to
       rumahmurahbtn.co.id).                                                 increase Retail DPK.
    h. Maximizing sales through digital platforms in order to             c. Developing a Cash Management System (CMS) for
       provide massive awareness to audience in the hope of                  online submission of cash collateral and bank guarantees
       attracting the interest of buyer candidates.                          to develop fees from the transaction banking segment.
                                                                       2. Developing Fee Based from New Sources
Funding Sector                                                            a. Forming a special work unit that manages wholesale
                                                                             and transaction banking to increase wallets from the
Initiatives to develop business funding in the short and medium              commercial, wholesale and corporate segments.
term are as follows:                                                      b. Developing fees from priority segments, especially in
1. Developing Capabilities as a Transactional Bank and                       foreign exchange services (market link deposits, forex
     Transaction Channels                                                    swap deposits, and others).
     a. Optimizing the productivity of office networks in target          c. Improving treasury profitability from managing Available
          market areas (offices, shops and shopping centers).                for Sale (AFS) and Hold to Maturity (HTM) portfolios,
     b. Increasing sales productivity through development BTN                through:
          Smart.                                                             -   The focus of the HTM portfolio is on portfolio
     c. Savings campaign programs and strategies through                         distribution that has a short term tenor, a maximum
          Integrated Marketing Communication activities in the                   of 10 years.
          middle segment and non-subsidized mortgage debtors.                -   Recomposition of the AFS portfolio to be shorter and
     d. Acquisition and sale of bundling products to state-owned                 attempted to be a maximum of 10 years.
          corporations.                                                      -   Diversify the tenor of the AFS and HTM portfolio by
     e. Acquisition of BTN Business Savings for customers and                    considering the bank’s liquidity ratio, the direction
          partners of SME and Commercial segments.                               of the reference interest rate and the comparison of
     f. Increasing the acquisition of BTN Investa Savings to                     interest rates on investment placements with BI with
          priority customers to increase CASA in the High Network                SBN yields.
          Income (HNW) segment.                                           d. Developing new sources of fee-based treasury earnings
2. Becoming an Operational Bank For Institutional Fund                       through forex trading and structured products.
     Management                                                           e. Increasing fees sourced from Bank Guarantees (BG),
     a. Increasing the acquisition of Government Task Force                  Domestic Letters of Credit (SKBDN), Supply Chain
          (SATKER) and SPAN interconnection.                                 Financing (SCF), Cash Management System (CMS) in
     b. Increasing cash management acquisition and utilization on            the Corporate segment.
          institutional and corporate customers.
     c. Payroll customer acquisition program through sales             To achieve this target, strategic initiatives carried out in the short
          bundling products (BTN Solution Program).                    and medium term are as follows:
     d. Developing a customer base through a business ecosystem        1. Accelerate the implementation of new mobile banking.
          approach that focuses on the property related, healthcare,   2. Accelerate the implementation of digital on boarding to
          trade, education and industrial area sectors.                    increase Retail DPK.
     e. Developing retail and wholesale transactions through           3. Develop a Cash Management System (CMS) for online
          acquisition and activation programs for mobile banking,          submission of cash collateral and bank guarantees to
          debit cards, EDC, QRIS, cash management and trade                develop fees from the corporate segment.
          services.                                                    4. Develop fee based from new sources.
                                                                           a. Forming a special work unit that manages wholesale
Other Operating Income Sector and                                              and transaction banking to increase wallets from the
Subsidiaries Establishment                                                     commercial, wholesale and corporate segments.
                                                                           b. Developing fees from priority segments, especially in
Other Operating Income                                                         foreign exchange services (market link deposits, forex
                                                                               swap deposits, etc.).
To increase profitability, Bank BTN business plan in the next              c. Improving treasury profitability from managing Available
three years is also focused on improving Other Operating                       for Sale (AFS) and Hold to Maturity (HTM) portfolios.
Income (POL) which is mostly sourced from fee-based income,                d. Recomposition of the Available for Sale (AFS) portfolio
especially on new sources based on transactions and services,                  to be shorter and attempted to be a maximum of 10
with redetermined targets as follow:                                           years.




                                                                           PT Bank Tabungan Negara (Persero) Tbk                       213
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                                   Management Discussion and Analysis
                                   on Bank Performance




    e. Diversifying the tenor of the AFS and HTM portfolio              in Indonesia’s sharia financial assets has reached IDR2,450.55
       by considering the bank’s liquidity ratio, the direction         trillion or around USD 163.09 billion as of June 2023. This figure
       of the reference interest rate and the comparison of             shows growth of 13.37% (yoy) with a market share of 10.94%
       interest rates on investment placements with BI with SBN         of total national finances. After experiencing a slowdown due
       yields.                                                          to the impact of the pandemic and uncertain global conditions,
    f. Developing new sources of fee-based treasury earnings            the national sharia banking industry has managed to record
       through forex trading and structured products.                   quite good growth. As of June 2023, the sharia banking market
    g. Increasing fees sourced from Bank Guarantees (BG),               share in Indonesia grew to 7.31% of the total national banking
       Domestic Letters of Credit (SKBDN), Supply Chain                 industry. This growth was supported by 13 Sharia Commercial
       Financing (SCF), Cash Management System (CMS) in                 Banks, 20 Sharia Business Units, and 171 BPRS with an asset
       the corporate segment.                                           portion distribution of 65.78% for Sharia Commercial Banks,
                                                                        31.68% for Sharia Business Units, and BPRS of 2.54%.
Subsidiary Establishment Plan
                                                                        In addition, based on the results of the 2022 national financial
To strengthen the bank’s core business and initiatives in               literacy and inclusion survey, the sharia financial literacy and
supporting the synergy of SOEs, in the medium term of business          inclusion index was recorded at 9.14% for the literacy index and
development,it is also carried out with the plan of establishing        12.12% for the sharia financial inclusion index. The low literacy
a subsidiary or inorganic strategy through capital participation        and inclusion index is certainly an opportunity and challenge for
plan in the field of investment management, venture capital             Islamic banks to continue to develop their business. The concept
firms, insurance, establishment of multifinance subsidiaries            of sharia banking is currently also relevant to retail banking
and cooperation in developing the Sharia Business Unit                  businesses such as mortgage financing and MSMEs which are
(UUS) business. The Investment Management (MI) subsidiary               one of the arteries of the Indonesian economy. Meanwhile, the
establishment plan is planned to be carried out under a capital         challenges of sharia economic and financial development mean
participation scheme direct control, in this case the candidate         that there is still a large gap with the conventional financial
of the company which is planned is investment management                industry. This includes a relatively low market share at around
company which is one of the subsidiaries of state-owned                 11%. The low level of sharia financial literacy also has an
enterprises.                                                            impact on the limited rate of sharia financial inclusion. Apart
                                                                        from that, there is limited differentiation of business models or
Next. Paying attention to the competitive advantage of the              sharia financial products, the use of information technology
business strong in housing which is mainly mortgages, Company           which currently still needs to be improved, and sharia financial
plans to form a life insurance subsidiary or disadvantages that         human resources are not yet optimal. Indonesia as a country
are inorganic strategies for providing one stop solution service        with the largest Muslim population has the potential to become
in facilitating financial services family. The plan to establish        an example of excellence in sharia finance. This ambition is in
such subsidiaries is carried out with a direct control capital          line with ongoing efforts by various agencies to encourage a
participation scheme, with the target of potential company              strong and diversified financial ecosystem that is in line with
partners/life insurance subsidiary that has been running or a           sharia principles. Sharia banking in Indonesia continues to show
new establishment. Furthermore, to support the idea of BUMN             positive developments, this is inseparable from its market share
synergy and as a special vehicle in the Assets Management               which is still not saturated and continues to grow. Based on FSA
development strategy, the Company also plans to establish a             statistical data, in the 2019-2022 period sharia banking assets
Venture Capital subsidiary. Apart from that, the business focus of      grew 14.24%, the growth of which was dominated by Sharia
establishing subsidiaries in this field is also aimed at investing in   Commercial Banks (BUS). In line with this growth, the market
several potential businesses such as fintech.                           share of national sharia banking assets was also strengthening
                                                                        from 6.18% in 2018 to 7.09% in 2022.
Sharia Business Sector
                                                                        In line with the potential of national sharia banking, Bank
Based on the Royal Islamic Strategic Studies Center (RISSC)             BTN’s Sharia Business Unit also experienced unidirectional
report entitled The Muslim 500: The World’s 500 Most Influential        business growth. This was demonstrated by the performance
Muslims 2024, Indonesia is the country with the largest Muslim          that continued to grow and the ability of Bank BTN’s Sharia
population in the world. RISSC noted that the Muslim population         Business Unit which continued to grow amidst the challenges of
in Indonesia would reach 240.62 million people in 2023. This            the pandemic. In September 2023, Bank BTN’s UUS assets were
number could be equivalent to 86.7% of the national population          recorded at IDR48 trillion, growing 16.81% (yoy). This asset
totaling 277.53 million people. As a country with the largest           growth was supported by financing of IDR35.79 trillion, growing
Muslim population, Indonesia’s sharia financial industry has            17.94% (yoy), and the collection of Third Party Funds which was
enormous potential. With relatively low literacy and inclusion          recorded at IDR36.25 trillion, growing 16.76% (yoy).
conditions, total assets are in 7th position globally. Overall growth




214          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




Capital Strengthening                                                  3. Focus on creating value and becoming a business partner
                                                                          through organizational alignment, and implementing digital
Supporting soundness and sustainable business growth requires             human resources to support operational excellence and
strong capital support by considering the fulfillment of the bank’s       implementing corporate culture internalization.
minimum capital requirements following Basel III. According
to OJK Regulation No.11/POJK.03/2016 dated January 29,                 Initiative
2016, concerning Minimum Capital Adequacy Requirements for
Commercial Banks, banks must provide capital in the form of            Short and medium term initiatives are outlined as follows:
minimum capital based on risk rating and additional capital as a
buffer based on Basel III (there are 3 types: capital conservation     SHORT TERM INITIATIVE
buffer, counter cyclical buffer, capital surcharge).                   1. Develop and implement Employee Value Proposition (EVP) to
                                                                          attract the best talent.
Human Capital Sector                                                   2. Renew focus on talent development and retention.
                                                                       3. Implementation of a Strategic Business Unit (SBU) based
To realize the One of Home of Indonesia’s Best Talent, the work           organizational structure
program for Human Capital (HC) development in the short and            4. Fulfill employee needs using multisourcing recruitment
medium-term is aligned and the basis for the 2021-2025. The               methods to attract quality talent, especially in the fields of
medium-term plan in the HR sector aims to attract and retain the          funding, transactional and digital banking.
best talents who have superior capabilities and high productivity.     5. Implementation of succession programs and special career
In an effort to realize these aspirations, the formulated dimensions      paths for general management, funding, transactional and
and parameters as follows:                                                digital banking.
1. Ability to Attract Top Talent                                       6. Develop employee competencies, especially related to
    Become one of the top of mind employers for external                  critical capability, leadership, funding, transactional and
    candidates from leading companies and universities in                 digital banking.
    Indonesia.                                                         7. Enable the implementation of the EVP Program to improve
2. Ability to Retain Top Talents                                          employee experience.
    Able to retain top talents to work and develop with Bank           8. Strengthen the role of change leaders to internalize core
    BTN.                                                                  values in each work unit and encourage behavioral changes.
3. Talent’s Capability Readiness                                       9. HC Technology development that focuses on talent
    Have the capability to achieve the bank’s current and future          management, people analytics and employee self service to
    strategic goals..                                                     improve employee experience.
4. Employee Productivity
    Has employee productivity that is above the average of well-       MEDIUM TERM INITIATIVE
    known organizations.                                               1. People Analytics and Employee Experience
                                                                          a. Developing HC Business Partner (HCBP) capabilities to
To achieve these aspirations, strategies and strategic initiatives           align HC strategy with business and answer bank needs
were prepared as follows                                                     by implementing HCBP at the end state stage, namely at
                                                                             the Division Level.
Strategy                                                                  b. Refining the HC organizational structure and designing a
                                                                             grading system that is aligned with business needs:
Description of the strategy in achieving aspirations in the field of         -   Strengthening learning organizations and learning
human capital, namely:                                                           center infrastructure.
1. Become the first choice for the best talent to work by improving          -   Implementation of a new grading system.
   the recruitment and onboarding process which provides                  c. Implementing a multi-sourcing strategy and running
   employee experience with a motivating and competitive                     an onboarding program for new recruits and internal
   reward system in the market, as well as activating the bank’s             movements.
   employee value proposition.                                            d. Describing dual career paths (specialist and generalist
2. Strengthen HR capabilities, productivity and competitiveness              career paths) for critical positions.
   through improving employee capability development                      e. Improving a self-learning learning culture with the 70-20-
   programs, supporting a learning culture, implementing                     10 learning method.
   consistent coaching, and implementing productivity measures            f. Aligning remuneration systems and incentive programs
   in workforce planning and performance management.                         to attract, retain and motivate employees.




                                                                           PT Bank Tabungan Negara (Persero) Tbk                    215
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                                   Management Discussion and Analysis
                                   on Bank Performance




   g. Activating and implementing the 4 (four) Pillar Employee          Good Corporate Governance (GCG), Risk
        Value Proposition (EVP) program.                                Management and Compliance
   h. Implementing an integrated HCIS to support operational
        excellence, data-based decision making, and provide a           Good Corporate Governance (GCG) Improvement
        seamless employee experience, through:
        -   Digitalization of recruitment, and onboarding.              The Company is aware of the importance of implementing GCG
        -   Recruitment and onboarding people analytics.                as one of the strategic steps to achieve the vision that has been
        -   Integration of Performance Management System                set. Therefore, strengthening the organizational structure and
            (PMS), Learning Management System (LMS), and                business processes based on GCG principles is consistently
            Succession Individual Development Plan (IDP).               applied through strengthening the four main pillars of GCG
        -   Integration of talent management system and people          implementation: (i) Commitment on Governance; (ii) Governance
            analytics.                                                  Structure; (iii) Governance Process and (iv) Governance Outcome.
2. Scale Up and Deep Dive                                               The strengthening of the first pillar is done by internalizing GCG
   In this phase, all initiatives that have been running in 2022 -      principles in business activities and bank operations, which has
   2024 are strengthened, including:                                    been listed as one of the bank’s missions “Implementing banking
   a. Aligning remuneration systems and incentive programs              management following prudential principles and Good Corporate
        to attract, retain and motivate employees, including            Governance to increase shareholder value”. Strengthening the
        through:                                                        second and third pillars is done by implementing GCG principles
        -   Transition of basic salary and position allowances.         on changes in the Organizational Structure and Business Process
        -   Continued development for variable pay components           as a whole which is currently being carried out as a stage of the
            in business families.                                       bank’s business transformation. Broadly speaking, these changes
   b. Implementing an integrated HCIS for data-based decision           were carried out by streamlining the process to separate the roles
        making, as well as providing a seamless employee                of sales, operations and risk policies. The strengthening of these
        experience.                                                     pillars is done by strengthening the supervisory mechanism for
        -   Digitalization of workforce planning through                office operations, both from the Directorate level to the Work
            integrated man power planning in the HC Information         Unit.
            System (HCIS).
        -   Man power planning people analytic.                         Furthermore. the strengthening of the fourth pillar is carried
        -   Scale up people analytics capabilities to provide           out through results application of GCG principles in the
            predictive functions.                                       bank’s business processes as set forth in the GCG report and
                                                                        assessment as well as the awards received by the bank, including
IT Infrastructure                                                       governance outcomes which includes qualitative aspects and
                                                                        quantitative aspects. such as: adequacy of report transparency,
To support the corporate plan, business aspirations and vision of       regulatory compliance legislation, bank performance such
Bank BTN as “Becoming the Best Mortgage Bank in Southeast               as profitability, efficiency and capital, increase/decrease in
Asia by 2025”, Bank BTN prepared six themes in the Information          adherence to applicable regulations and problem solving faced
Technology strategic plan for 2021-2025. In implementing the            by the Bank such as fraud. Maximum Limit violations Lending
2021-2025 Information Technology strategic plan, Bank BTN               (BMPK), violation of the provisions related to the report Banks
carries three main annual themes as follows:                            to regulators. In order to improve the implementation of GCG
1. 2022: Start to Scale                                                 so that company management can run well and achieve the
    2022 began with preparations for large-scale changes at             expected goals, a strategic plan is needed contained in the GCG
    Bank BTN. Initiatives related to the implementation of an           Roadmap which serves as a guide for all BTNers in contributing
    agile-based multi-speed Information Technology operating            to the creation of directed GCG management.
    model. Study of critical systems that could be upgraded/
    replaced. In this phase, the initiatives carried out also focused   Risk Management Improvement
    on increasing Information Technology maturity.
2. 2023: Expand the Transformation                                      In order to support Bank BTN’s long-term plan, to become The
    Continue executing upgrade/replace and/or enhancement               Best Mortgage Bank in Southeast Asia by 2025, it is necessary
    of critical systems that have been identified. Continuing agile     to maintain a company with sustainable profitability and continue
    based system development (such as digital channels).                strategic steps and initiatives related to Risk Management, including:
3. 2024-2025: Continuous Improvement                                    1. Developing Retail Transaction Banking by Building
    Focus on improving/enhancement of non-critical systems,                  Operational Risk Acceptance Readiness and Fraud Risk
    process improvements to increase Information Technology                  Strategy
    maturity.                                                                a. Strengthen Policies and Processes
                                                                                 The bank had a framework and operating model related
                                                                                 to comprehensive fraud management that accommodates
                                                                                 all channels and products.



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                                                                                                     2023 Annual Report




     b. Organizational Development and Human Capital                                 (BPI) and Commercial Banking Center (CBC), the
          Capabilities                                                               bank has implemented an internal credit rating (ICR).
          Development of a special organizational structure for                      In line with one of the bank’s strategic themes in its
          anti-fraud in work units (1st line of defense) to make it                  2025 aspirations, namely strengthening SME BPI by
          more effective and efficient.                                              improving Turn Around Time (TAT) through automated
     c. Technology Development                                                       credit workflows, the bank will develop SME application
          Updated technology for more dynamic fraud detection                        scoring, which is expected to speed up the MSME credit
          using AI and machine learning.                                             approval process through data processing using models
2.   Improving Risk Assessment for the Special Non-Fixed                             and can classify prospective MSME debtors based on
     Income Segment Through the Development of Non-Fixed                             their risk level. This is expected to increase the market
     Income Analytical Models and Credit Analyst Competency                          share of the MSME segment and improve the quality of
     Development                                                                     MSME credit
3.   Develop Risk Criteria for Targeted Segments and Overlay                    c. Developing the operation risk tools application to
     Models to Increase Approval Rate                                                increase convenience, integration, visibility and the latest
     a. Determining priority target segments (existing debtors,                      information system in operational risk management,
          funding customers, and new to banks) to manage risks in                    Bank BTN has developed an operational risk application
          the implementation phase.                                                  which contains Loss Event Database (BTN-LED), Risk and
     b. Building a proxy income model to project increases in                        Control Self-Assessment (RCSA) and Key Risk Indicator
          debtor and potential debtor income in determining credit                   (KRI).
          limits and standardizing recommendations and decisions.            7. Maintaining Low NPL in All Segments Through Strong Risk
     c. Sharpening Credit Policy according to risk-based                        Monitoring
          segmentation.                                                         Development of the Commercial Loan Early Warning System
4.   Establishment of the SME Processing Center as a Supporting                 (EWS) to support the strengthening of commercial credit
     Platform for MSME Credit Growth                                            risk monitoring through standardization, digitization and
     Implementation of new SME business processes and decision                  development of guidelines and tools. the bank will develop
     engines through digitalization of processes that will be                   Commercial Loan Early Warning System (EWS) by setting
     carried out to support SME process improvements.                           risk parameters indicating presence worsening quality of
5.   Development of Digital, Information Technology and Cyber                   commercial credit debtors individually. This is expected
     Risk Capabilities is carried out through the development of                to assist work units that provide commercial credit for
     the Information Technology Risk Organizational Structure                   identifying actions that need to be taken immediately to
     and Initiatives in Building Fraud Risk Management                          prevent commercial credit from the debtor as it will become
     As the use of technology increases, the risks in using                     an issued commercial credit.
     technology also increase, so strong technology, digital and
     cyber security risk management is needed. Based on this, Bank           Network Development Sector (Delivery Channel)
     BTN developed the IT, Digital and Cyber Risk Management
     Department under the Enterprise Risk Management Division                Optimization of delivery channels to support business is carried
     which focuses on managing all Bank BTN Information                      out through developing the quantity and variety of channels with
     Technology risks through 6 (six) main domains, namely                   network expansion strategy focused on four main initiatives,
     cyber security risk, data privacy risk, project delivery risk,          such as the regionalization strategy, branch expansion, banking
     third party risk, continuity and resilience risk and regulatory         agent and digital channels. The regionalization strategy is a form
     compliance risk.                                                        of grouping work area that is not only based on location, but
6.   Better Credit Business Processes by Centralizing Credit                 also based on the density of existing branches to ensure better
     Operations (CBC, SME and Consumer), Improving Checks and                strategy alignment. The consideration used in the regionalization
     Balances and Strengthening the Risk Framework Through                   strategy is as follows:
     Appropriate Risk Guidelines                                             1. Development of highly dense areas will ensure control of
     a. To improve the decision process and quality of consumer                   Key Performance Indicators (KPI) and more comprehensive
          loans, speed up the consumer loan approval process                      strategy alignment.
          through a data analysis process using models, the bank                  Determination of branch operational zones does not only
          developed a Credit Scoring Model (CSM). In addition, the                consider the location. but also the density of branch ratio.
          bank has implemented collection scoring, to support the            2. Optimizing Branch Office Productivity
          collection team in determining the priority scale for collecting        In the short term, the company is not very expansive in opening
          debtors based on their risk level (high, medium, low risk) to           a branch office. further, in this year, the Company will improve
          pay their obligations so that the credit development process            the oversight of the branch office to the outlet below and
          becomes more effective and efficient.                                   conduct an assessment or evaluation of the nonproductive
     b. In order to improve the underwriting process and                          outlets performance for closure. This is conducted so that the
          credit quality of commercial loans, supporting the                      office branches can monitor the performance of subordinate
          implementation of the new Business Process Improvement                  outlet that it will support corporate performance.



                                                                                 PT Bank Tabungan Negara (Persero) Tbk                      217
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                                   Management Discussion and Analysis
                                   on Bank Performance




3. Banking Agent                                                        To achieve these aspirations, 10 (ten) strategic themes for the
   Optimizing banking agents as aggregators with expanding              2021-2025 Corporate Plan have been determined as follows:
   strategic alliances, e.g. post office and mini-market as sales       1. Improving the branch operational model to increase low-cost
   agent.                                                                   DPK and retail business by optimizing the network footprint
4. Digital Channel                                                          and building end-to-end customer ownership (Commercial,
   The development of digital channel is intended for remote                SME, Consumer segments) including funding, lending, fees
   access to target the emerging affluent segment, the younger              and other services.
   generation and increase the convenience of transactions for          2. Partnership/inorganic growth to support the main business
   customers. Digital channel development is focused on:                    in the housing sector, capturing opportunities in the fields of
   a. Attractive and clearly defined target segments with a                 multi-finance, insurance and asset management.
        focus on segment selection age range between 20 to 35           3. Development of housing financing for the emerging affluent
        years.                                                              and affluent segments, by increasing the direct-to consumer
   b. Right-to-target offering by advantaging big data                      proposition, and collaborating with leading developers and
        analytical advantage to obtain product or service                   real estate agent networks.
        recommendations for each customer.                              4. Development of a subsidized KPR home ownership program
   c. Customer value management through offering broad                      to support the national agenda for affordable housing.
        and universal products and services. However, it is             5. Expanding the value chain in real estate targeting SME
        more focused on the main needs of customers (customer               suppliers and contractors by providing supply chain
        centric).                                                           financing, bank guarantees, SKBDN and business savings
                                                                            solutions.
Long-Term Strategy                                                      6. Develop complete financial solutions (loans, savings,
                                                                            transactions and investments) targeting fixed income
To increase its contribution to the housing sector and support the          customers, especially emerging affluent and SMEs, as well
transformation roadmap of the Ministry of BUMN, Bank BTN has                as preparing cross-selling and upselling strategies
set a vision to become The Best Mortgage Bank in Southeast Asia         7. Develop electronic transaction channels, automate various
by 2025, with aspirations for 2025 as follows:                              business processes and develop cooperation with the digital
1. Double Low Cost Funding                                                  ecosystem, including setting up supporting Information
     Transformation of channel capabilities so that they become             Technology infrastructure and operational models.
     transactional banks to support increased low cost funding          8. Implementation of an SBU structure, which is suitable for
     and growth in fee based income.                                        creating a performance-oriented organization, building
2. Encouraging affordable access to housing for Indonesian                  hard and soft skill capabilities, as well as launching culture
     people                                                                 programs for sales and service, governance and risk
     Presenting banking products to improve living standards,               management, performance and learning.
     subsidized housing financing for the mass segment and              9. Better credit business processes by centralizing credit
     building new direct-to-customers channels for the mass                 operations (CBC, SME, Consumer), improving checks and
     affluent segment.                                                      balances, and strengthening the risk framework through
3. Building a One Stop Shop Financial Solution for Consumers                appropriate risk guidelines.
     and Housing-Related Businesses                                     10. Maintaining low NPL levels in all segments through strong
     Providing loan and investment solutions to develop housing             risk monitoring, work standardization, billing processes that
     ecosystem-based businesses that will encourage the                     utilize digital solutions, and asset sales strategies.
     contribution of the housing sector.
4. Become a Digital Innovator and Home of Indonesia’s Best              The transformation journey of the 10 (ten) strategic themes up to
     Talent                                                             2025 above is as follows:
     Carry out the digitalization process to build the most efficient   a. In 2021, “Transform to Achieve Sustainable Growth”.
     operations and develop the best talent.                            b. In 2022, “Expand to New Business Areas”.
5. Build a High Quality Portfolio and Maintain a Low NPL Level          c. In 2023, “Digital Disruption to Master the Housing
     Utilizing technology to develop an integrated and robust               Ecosystem”.
     risk management process to reduce NPLs in line with market         d. In 2024, “Expanding Business Areas and Providing
     sustainability.                                                        Integrated Financial Solutions”.
                                                                        e. In 2025, “One Stop Financial Solution in the Housing
                                                                            Ecosystem”.




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                                                                                                                                        2023 Annual Report




                                                Bank BTN Transformation Journey 2021-2025

                                               2021                                              2022-2023                                                     2024-2025
                         Transform to Achieve Sustainable Growth                     Expand to New Business Areas                                 Disrupt and Scaleup Through Digital


                         Funding                                              Funding                                                         Funding
                         •   Redesign the branch operating model by           •   Launched a new branch operating model and                   •   Increasing BTN Solutions and offering sector-
                             centralizing operations and support functions        sales transformation to 700+ branches                           specific programs to more sectors
                         •   Launched branch sales transformation             •   Relocating branch offices to priority micro                 •   Improve more analytics use cases
                         •   Launched a re-branding campaign for BTN              markets
                         •   Improve BTN Solusi, sector proposition           •   Strengthening Wealth & premium services
                                                                              •   Launched an analytics-based cross-sell platform


                         Lending                                              Lending                                                         Lending
                         •   Launched CASA/payroll related products           •   Launched a KPR tracking portal for customers                •   Launched a one-stop digital customer housing
                         •   Penetrating top developers & national property       and a dashboard for developers                                  ecosystem
                             agents to increase BTN Properti                  •   Designed and piloted individual property                    •   Launching a business to business (B2B) real
                         •   Develop collaboration with TAPERA for housing        programs/agents for initial segments                            estate market and bundling services outside
                             programs and process integration                 •   Penetrating the value chain of 10-20                            of banking
         Business        •   Develop value chain propositions (BG, SCF,           developers. then scale up to at least 100                   •   Launching property-backed MSME loans for
                             SKBDN, Business Savings, Internet Banking)           developers                                                      other sectors (non-residential)
                         •   Redesigned the Relationship Manager (RM)         •   Launched a credit card issued by BTN                        •   Increasing BTN Properti to become the 3rd
                             scope and sales process                                                                                              largest online property portal in the country




                         Ecosystem                                            Ecosystem                                                       Ecosystem
                         • Establish a venture capital company                • Established an investment management                          • Developing BTN Properti into the 3rd largest
                         • Joint Venture to establish life insurance              subsidiary                                                      online property portal in the country
                                                                              • Launched an instant property purchasing
                                                                                  platform




                         •   Digitize the end to end mortgage process         •   Launched updated mobile banking, and                        •   Digitize the end to end mortgage process
                         •   Improve API & SandBox management                     internet banking for business                               •   Improve API & SandBox management
                         •   Set up governance and data structure             •   Building Big Data Analytics capabilities                    •   Set up governance and data structure
                         •   Designing the Strategic Business Unit (SBU)      •   Setting up digital factory & Information                    •   Designing the Strategic Business Unit (SBU)
         Enabler         •
                             structure and pilot
                             Implementing the BUMN corporate culture          •
                                                                                  Technology risk organization
                                                                                  Develop credit risk models                                  •
                                                                                                                                                  structure and pilot
                                                                                                                                                  Implementing the BUMN corporate culture
                         •   Increase commercial BPI; launched CBC            •   Developing a collection analytics based                     •   Increase commercial BPI; launch CBC Strengthen
                         •   Strengthen Collection & accelerate asset sales       strategy                                                        Collection & speed up asset sales
                                                                              •   Launch individual development platforms




Marketing Aspect                                                                            1.      Primary (Hero :                 BTN Mobile (January - December)
                                                                                                    Campaign)
                                                                                                                  :                 -    BTN Bisnis (June - October)
                                                                                                    Secondary
Marketing Strategy                                                                                                                  -    Plus by BTN Prioritas (July)

                                                                                                                                    -    BTN Spekta (August)
To help the Company increase its competitive advantage, it
                                                                                                                                    -    BTN Gaess Housing Loan (KPR) (November -
requires a marketing strategy as a guideline in product marketing
                                                                                                                                         December)
and providing direction regarding the running of the business.
                                                                                                                                    -    BTN Bersubsidi Housing Loan (KPR) (November
                                                                                                                                         - December)
Campaign Plan 2023

                                                                                            2.      Product of The :                -    BTN Mobile (January - December)
Campaign Plan 2023 was Bank BTN’s promotional planning
                                                                                                    Month (POM)
strategy for 2023, by optimizing conventional media and                                                                             -    BTN Bisnis Savings (May - October)
digital media, Out of Home (OOH) as well as various activation                                                                      -    BTN Gaess Housing Loan (KPR) (November -
activities, which are divided into categories:                                                                                           December)



                                                                                            3.      Festive                  :      -    Bank BTN 73rd Anniversary Promo (February)
                                                                                                    Campaign                             = moment of truth for Bank BTN’s 73rd
                                                                                                                                         anniversary

                                                                                                                                    -    Ramadan and Eid al-Fitr Promo (March - April)
                                                                                                                                         = moment of truth Ramadan and Eid al-Fitr.

                                                                                                                                    -    Promo for the 78th Independence of the
                                                                                                                                         Republic of Indonesia (August) = moment of
                                                                                                                                         truth for the 78th Anniversary of the Republic
                                                                                                                                         of Indonesia



                                                                                            4.      Always ON                :      This is publication and marketing through digital
                                                                                                                                    media, both as a call to action and to build
                                                                                                                                    awareness regarding the product.




                                                                                                   PT Bank Tabungan Negara (Persero) Tbk                                                           219
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                                            Management Discussion and Analysis
                                            on Bank Performance




                        Jan            Feb             Mar          Apr          May         Jun             Jul            Aug             Sep          Oct           Nov          Dec


   Primary


                                                                                                                                            Mall Roadshow
                                                                                                                                                                                   IPEX HUT
  Secondary                                                                                                                                                                         KPR 47
                                                                                                                                                                      KPR BTN
                                                                                                                                                                       Subsidi



    POM 1


    POM 2


   Festive                          Festive HUT
                                                             Festive
                                                          Ramadan Idul
                                                                                                                         Festive HUT                                              Festive HUT
  Campaign                            BTN 73
                                                              Fitri
                                                                                                                           RI 77th                                                  KPR 47


                     • BTN eChannel Products & Promos (BTN Mobile, IB and ATM)    • BTN Specta
                                                                                                                                             • Other Products & Programs
                     • BTN Visa & GPN Debit Card Products & Promos.               • BTN Prioritas Services and Programs
                                                                                                                                             • Corporate Corremunication
 Always On           • BTN Batara Savings & BTN Siap!
                     • BTN Bisnis Savings
                                                                                  • Non-Subsidized KPR, Subsidized KPR, KAR and
                                                                                    KRING products and programs
                                                                                                                                             • Festive
                                                                                                                                             • Government Communication
                     • KPR and BTN Properti                                       • Sharia Products & Programs




Hero Campaign


                                                                                       Objective
          Increasing awareness by maintaining the relevance of BTN & HGCTHI with the younger generation, especially gen Z and millennials through BTN features &
                                                      services in owning a home, investment and ease of transactions.


          HGCTHI 2020                                      HGCTHI 2021                                   HGCTHI 2022                                        HGCTHI 2023

 BTN Gives a new perspective on the               BTN Steps with the young people to         BT N P r ovi d e s r e a l s olu t i ons              BTN with its flagship product in 2023,
 principle of You Only Live Once for              embrace optimism: Dare to face and         ( a ct i ona b le ) t o p r ogr e s s i n             supports and provides a way for
 the sake of a more planned future.               get around today’s challenges.             li v e i n m a ny w a y s ( st a r t i ng t o ow n    customers to be braver in taking action,
                                                                                             a hou se , i nve s t i ng a nd s e t t i ng u p       not to delay any longer in terms of
                                                                                             a p e ns i on fu nd ) t ha t a r e d i gi t a lly     owning assets because life is not just
                                                                                             i nt e gr a t e d .                                   about today, NOW IS THE TIME




            Platform BTN Mobile                                             KPR BTN Gaess Product                                                 Tabungan BTN Bisnis
Aims to increase accessibility through digital                  Aims to increase assets through providing loan, one               Aims to increase liabilities through low cost funding. One
channels, one of which is the Hero BTN Mobile                   of which is the Hero KPR BTN Gaess product which                  of them is the Hero Tabungan BTN Bisnis Product, with
product. Present as a mobile app with a more                    is a House Ownership Loan for residential ownership               features and services that facilitate your various business
futuristic UI/UX that makes it easier for customers to          purposes.                                                         needs with complete support for larger businesses.
fulfill various transactional needs.




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                                                                                                     2023 Annual Report




HERO CAMPAIGN AS BTN MOBILE CAMPAIGN IN 2023
1. Making TVC for BTN Mobile features
   BTN Mobile’s superior features were packaged with communication materials that highlight ethnic diversity from each region, so that
   the information conveyed in the communication materials is more interesting and relates to various financial needs.




                                          CARI PROPERTI & KPR /               CASHFLOW TRACKER /                 ONLINE ON BOARDING
                                                 SUNDA                             MINANG                               / JAWA

                                        Easier to choose housing and        Easier to monitor transactions     Easier of choosing housing and
                                       apply for financing with KPR BTN       in one hand TVC:bit.ly/          applying for financing with KPR
                                        TVC: bit.ly/tvcbtnmobilesunda           tvcbtnmobilepadang            BTN TVC: bit.ly/tvcbtnmobilejawa




2. BTN Mobile Pre-launch (December 2022 – February 2023)

                                                                                                                                TV
                                                                MEDSOS
          LED
       Videotron


                                                                                                                          Squeeze frame &
                                                                                                                            Superimpose




                                                                                                                               ATM




       Plaza Indonesia, Ratu Plaza, SCBD, Sarinah
    (outdoor & Indoor), wisma indomibile, prapanca,
                    Bandara Soetta                              Own Asset: Instagram, Facebook, X, Youtube                All Branch’s ATM




  Banners and Pennants                                                        ATM




  Head Office Building Sticker                                                Branch Office Building Sticker




                                                                                PT Bank Tabungan Negara (Persero) Tbk                        221
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                              Management Discussion and Analysis
                              on Bank Performance




3. BTN Mobile Launching (February 2023)




                                 MEDIA                                OUTDOOR
      TVC
                                 CETAK                               MEDIA (OOH)




                            RADIO               DIGITAL                            OWNED
                                                                                                Medsos, Website, email
                                                MEDIA                              ASSETS
                                                                                                marketing, WhatsApp
                                                                                                broadcast
                                          Youtube, Meta, X, Instream,
                                          Outsream/OTT, Programmatic,
                                          Google UAC, Tiktok, Media
                                          Publisher (Emtek, IDN Media,
                                          Kompas, MNC, dan Detik)

                                                                                       Owned Asset - Tiktok



                                                Event Launching




  Communication materials




                                             Owned Asset




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                                                                                           2023 Annual Report




4. BTN Mobile Post launch (March - December 2023)




                                 MEDIA                               MEDIA LUAR
      TVC
                                 CETAK                              RUANG (OOH)




                           RADIO              DIGITAL                                   OWNED
                                                                                                          Medsos, Website, email
                                              MEDIA                                     ASSETS
                                                                                                          marketing, WhatsApp
                                                                                                          broadcast, employee advocacy
                                         Youtube, Meta, X, Instream, Outsream/
                                         OTT, Programmatic, Google UAC, TikTok,
                                         Media Publisher (Emtek, IDN Media,
                                         Kompas, MNC, dan Detik), Always On,
                                         KOL, Ramdhan Berfaedah Campaign




                                                Mega, Macro, Micro, & Buzzer

                                                • Using Mega, Macro, and Micro KOL on Instagram (Reels/Carousel) and TikTok.
                                                • KOL videos are motivated by various problems or complications experienced by many
                                                  people.
                                                • Supported by a buzzer to create positive sentiment in KOL content and BTN Mobile
      POST LAUNCH - KOL
                                                  ratings.




                                                         1.649.930 Views, 305.830 Likes, 3.075.153 Reach

                                                         • 4 Mega & Macro KOL on Instagram with 890,781 views, 79,593 likes,
                                                           749,395 reach, and ER 11.12%
                                                         • 4 Mega & Macro KOLs on TikTok with 735,000 views, 40,896 likes, and ER
                                                           5.61%
                                                         • 4 Micro KOLs on Instagram with 24,149 views3,306 likes, 223,823 reach, and
                                                           ER 1.55%
                                                         • 7 Micro KOL on Tiktok with 174,909 views, 12,503 likes and ER 2.36%
                                                         • 4 Aggregators on Instagram 169,532 likes, 2,101,935 reach, and ER 8.55%




                                                                       PT Bank Tabungan Negara (Persero) Tbk                     223
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                           Management Discussion and Analysis
                           on Bank Performance




      Communication Materials                   Communication Materials

                       • TV, ATM, TV
                         Banking Hall
                       • Paid Ads
                         (digital)

                                                                                                       OHH - BUSWAY



                                                                                                               INFLIGHT ADS

                                                                               OHH - TAKSI
                                                BRANCH
                                                OPERATIONAL
                                                CAR




                                               Ramadan Berfaedah
      POST LAUNCH - FESTIVE
                                               • With stories that relate to the audience
                                               • Presenting content creators as talents based on various problems or complications
                                                 experienced by many people




                                               EMPLOYEE ADVOCACY (PARTIPOST)
      POST LAUNCH - SUSTAIN
                                               • Employee advocacy is a promotional activity and awareness of the company and/
                                                 or its products and services by employees who work there. 52% of consumers trust
                                                 employees at a company more than the company or brand itself (Forbes.com).
                                               • Employees promote BTN Mobile on personal social media accounts to increase
                                                 awareness.




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                                                                                 2023 Annual Report




5. BTN Mobile goes to Berlin


                                          Phase - 1 (Run Community &
                                                                                           Phase - 2 (Marathon Journey)
                                                  Competetion)

                                                            BTN Mobile
                                                                                    BTN Run 2023
                                                           Goes to Berlin                                    BTN Runner Trip to
                                   BTN Run 2023                                     Goes to Berlin
                                                          “Run Community                                        Berlin 2023
                                                                                  “Runners Journey”
                                                            Roadshow”

                                                          February - Maret         May - September
                                 12 February 2023                                                            21-25 Sept 2023
                                                               2023                     2023

                               Objective:               Objective:              Objective:                 BTN runners travel
                               • Launching BTN          • Create awareness      • Education regarding      to Berlin to take part
                                 Mobile apps              dan trial untuk BTN     the features of the      in the 2023 Berlin
                               • Kick-off activation      Mobile apps             BTN Mobile apps          Marathon
                                                        • Help shape BTN’s      • Strengthen BTN’s
                                 program “BTN
                                                          image as a modern       image as a modern,       Event date: September
                                 Mobile Goes to
                                                          and prestigious         prestigious bank.        24, 2023
                                 Berlin”                  bank.
                                                                                                           Travel date:
                               Activity                                         Activity                   September 21-25,
                                                        Activity
                                                        • Roadshow 5 cities     • Social media &           2023
                                                          community fun run       offline activation
                                  BTN RUN 2023
                                                        • IG competition to       regarding the
                                                          select 5 Indonesian     journey of
                                                          runners to run in
                                                                                  BTN runners in
                                                          the 2023 Berlin
                                                                                  preparation for
                                                          Marathon
                                                                                  running in the 2023
                                                                                  Berlin Marathon




                                                                PT Bank Tabungan Negara (Persero) Tbk                       225
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                                   Management Discussion and Analysis
                                   on Bank Performance




6. BTN Jakarta Run 2023




                                        THE - EVENT
           PRE - EVENT


                                                                     THE - EVENT




           OFFICIAL JERSEY




                                      Teaser: bit.ly/teaserjakartarun23




360° Communication



                                                              Marketing Activity


                 ATL (Above the Line) Marketing:                                                BTL (Below the Line) Marketing:

  • Broad audience target                                                          • Limited audience target
  • Explains more of a concept or idea. No direct interaction with                 • Media Or activities provide the audiences opportunity to
    the audience                                                                     interact and to purchase




                                       Magz/              OOH/                    Event                    Point of Sale            Direct Marketing
      TV              Radio
                                     News Paper           DOOH                 Sponsorship                   Materials              (Mail/SMS/WA
                                                                                                          (Poster/Leaflet)                Blast)


     Through the Line (TTL) Marketing melibatkan penggunaan strategi pemasaran ATL & BTL. Tren konsumen baru- baru ini di pasar membutuhkan
   integrasi strategi ATL & BTL untuk hasil yang lebih baik. Periklanan 360° di mana kampanye dikembangkan dengan visi membangun merek serta
                   konversi/akuntable. Digital Marketing termasuk dalam TTL Marketing karena menggabungkan ATL & BTN Marketing.




Apart from implementing the marketing strategies mentioned                   of products and services. Apart from that, the Company also
above, the Company also implements product and service                       increases the effectiveness of cooperation in marketing and
marketing strategies to encourage an increase in the share                   developing new products.




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                                                                                        2023 Annual Report




Corporate Loan Marketing Strategy                                   c. Develop collaboration with developers to develop
                                                                        housing projects in the emerging affluent segment.
The description of the marketing strategy for corporate loan        d. Strengthening the BTN Properti application and portal
products throughout 2023 was as follows:                                by digitizing the KPR process end to end, both for
1. Increase in Corporate Loan Portfolio in Sectors:                     consumers and developers.
    a. Housing area                                                 e. Building an instant purchase platform as part of BTN
    b. Construction                                                     Properti.
    c. Telecommunication                                            f. Developing the Rent to Own KPR scheme as an
    d. Energy Infrastructure                                            affordable and equitable KPR scheme, targeting the
    e. State Institutions (Ministry of Finance Domestic Loans)          millennial generation.
    f. Expansion of strategic cooperation with potential         2. Increase in High Yield Margin Credit
        corporate debtors and their value chains (Semen             a. Increasing high yield credit (KRING, KAR) beyond
        Indonesia Group (SIG))                                          mortgage through up-selling and cross selling
2. Expand Corporate Credit Financing in New Sectors:                    programs to captive customers, office and industrial
    a. Renewable energy                                                 areas.
    b. Agro Industry (Fertilizer)                                   b. Upselling and cross selling programs for non-
    c. Other Infrastructure (Drinking Water)                            subsidized products to subsidized KPR customers
    d. Health                                                           who have or are almost paid off through analytics
                                                                        capabilities and upselling programs.
Commercial Loan Marketing Strategy                                  c. Pre approved loans or credit to existing debtors who
                                                                        meet the criteria through the Eagle Project and Ultimate
The company is implementing several marketing strategies for            Project (KAR and KRING)
commercial credit products during 2023, namely as follows:
1. Expanding Commercial Loans Focusing on Financing Position     Subsidy Housing Loan Marketing Strategy
    Growth
    a. Product bundling with Subsidized KPR and Non-             The marketing strategy for subsidized housing loans is as
       Subsidized KPR products.                                  follows:
    b. Determination of targets based on the potential in each   1. Expanding relationships with Subsidized KPR Supporting
       Commercial Banking Center (CBC) area including its             Institutions (Ministry of PUPR, BP TAPERA, Ministry of
       economic sector.                                               Finance, Ministry of Agrarian and Spatial Planning (ATR),
    c. Expansion of commercial credit segmentation targeting          Bappenas, and others)
       long-term loans.                                          2. Optimizing and monitoring informal sector programs
    d. Continuing previous programs including the hospital and        that are already running, such as the Indonesian Market
       education sectors.                                             Traders Association (IKAPPI), the Indonesian Traditional
    e. Bank BTN synergy program with developer associations.          Fishermen’s Association (KNTI), and Gojek.
2. Better Commercial Loans Governance with the Aim of            3. Get support from BP Tapera and SMF, as a source of
    Improving Services to Customers                                   additional funds for Subsidized KPR.
    a. Development and socialization of commercial credit        4. Develop equitable and inclusive financing schemes.
       products in accordance with business developments.        5. Increase the market share of Subsidized KPR by optimizing
    b. Optimizing the use of commercial credit applications           the acceleration of the file process.
       and Information Technology support.
                                                                 Commercial Funding Marketing Strategy
Housing Loan Marketing Strategies
                                                                 The marketing strategy for commercial funding is carried out as
Initiatives to develop the credit business in the short and      follows:
medium term are:                                                 1. Business Ecosystem
1. Develop KPR Market Share in the Emerging Affluent and              Deepen acquisition activities for all institutional customer
     Affluent Segments                                                business potential, both to increase funding, fee-based and
     a. Establishing a sales center that focuses on selling           lending volumes. The main focus in the ecocsystem business
          mortgages to the emerging affluent segment, where in        strategy is property related, education, healthcare, trade and
          2023 sales centers will be opened in Jakarta-Kelapa         industrial areas.
          Gading Square, Tangerang-BSD and Surabaya.
     b. Collaboration and marketing program with national
          and local property agents, as a Direct to Customer
          (D2C) strategy.




                                                                     PT Bank Tabungan Negara (Persero) Tbk                   227
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                                Management Discussion and Analysis
                                on Bank Performance




2. Reward Program                                                    2. Developing a Digital MSME System
   In order to appreciate and improve cooperative                       Developing digitalization of the MSME loan distribution
   relationships with customers, a special reward program               process using mobile apps and web apps.
   is provided for customers, namely the Supportive Program          3. Improvement of Business Processes and HR Quality
   and Customer Engagement Xtra Rewards (SPACE-X).                      a. Development of Business Process Improvement (BPI) for
   SPACE-X is a program that aims to stimulate the acquisition             MSME loan products.
   of new gear and optimize existing customers, by providing            b. SME education and Sales Loan Program using in-
   more benefits for CMS activation and referrals.                         house training and e-learning methods.
3. Customer Diversification                                             c. Increasing SME Loan performance through the SME
   Acquisition of customers in categories (cash rich and                   of the Year Program, SME Reward Program and SME
   middle) with a focus on all segments including SOEs                     Gathering.
   Group, Private Corporation, Education and Government                 d. Effectiveness of strategies and work programs through
   throughout the region.                                                  coaching SCPU Head, SME and Loan Program Sales.
4. Enhance Organization Structure                                       e. Optimization of SME Expert Power (TAD) in Sub-
   To strengthen middle institution customer acquisition, a                Branch Office (KCP).
   new organizational structure was formed specifically to
   handle medium institution fund acquisitions.                      Sharia Product Marketing Strategies

Funding Retail Marketing Strategy                                    The sharia product marketing strategy includes sharia funding
                                                                     and sharia financing products which are described as follows:
The 2023 Marketing Strategy for Third Party Fund (TPF/DPK)           1. Sharia Funding Product Marketing Strategies
Retail products is outlined as follows:                                  a. Increasing collaboration with Educational Institutions.
1. Business Ecosystem                                                       Islamic Institutes. Developers. State Ministries/
    Developing a business ecosystem as a sustainable business               Government Agencies to deliver institutional fund
    transformation with property related, healthcare, trade,                management as well as transactional and investment
    education and industrial area segments.                                 services.
2. Participating Account                                                 b. Increasing collaboration with agencies/institutions in
    Increase participating accounts with first usage, activation            payroll services.
    and strategic partnership programs.                                  c. Strengthening      institutional   cooperation      with
3. Financial Solution                                                       collaboration programs and customer incentives.
    The BTN Solusi program offers financial solutions                    d. Increasing collaboration with educational institutions
    for employees originating from payroll/allowance                        for the distribution of Smart Indonesia Cards and
    management. Acquisition of payroll with the main focus on               Savings for students.
    the BUMN and subsidiary sectors, education and health                e. Increasing Non-FLPP Giro TPF from Government cash
    and retirees.                                                           management cooperation (Ministries/Institutions/
4. Branchless Banking                                                       Public Service Agencies)
    The agency business will focus on increasing awareness               f. Increasing payment cooperation and optimizing
    and agent quality through the number of transactions and                Zakat. Infaq. Alms and Waqf funds digitally with
    funding.                                                                philanthropic Institutions.
                                                                         g. Intensifying the savings of existing and community
SME Banking Marketing Strategy                                              financing customers.
                                                                         h. Collaborating with the Hajj Financial Management
The 2023 marketing strategy for SME Banking products is                     Agency (BPKH) to provide Integrated Hajj Information
outlined as follows:                                                        and Computerized System (SISKOHAT) services to
1. Increased Disbursement of High Yield Loan (Eagle Project)                increase Hajj and Umrah savings.
     a. Formation of MSME Unit Partners at Sub-Branch Offices            i. Increasing the role of the Sharia Service Office (KLS) in
        (KCP) for Distribution of Establishment of MSME Unit                Hajj registration services and sales of Hajj and Umrah
        Partners at Sub-Branch Offices (KCP) for MSME loan                  Savings products.
        distribution.                                                    j. Increasing Current Account and Savings Account
     b. Increasing the realization of People’s Business Credit              (CASA) funds through marketing activities such as
        (KUR) through direct selling to KPR debtors and other               investor gathering, property expo and individual
        consumer loans.                                                     engagement.
     c. Segmenting sales of People’s Business Loan (KUR) and             k. Increasing Company Sharia Business Unit (UUS)
        KUMK Loan to ecosystems or communities according                    brand awareness through marketing communications
        to regional potential through BPI SME.                              programs.




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                                                                                       2023 Annual Report




   i. Providing Digital Banking services through online          BTN Prioritas Services Marketing Strategy
      customer account opening without the customer
      needing to visit the outlet.                               BTN Prioritas service is a special service specifically intended
   m. Developing e-channel features (mobile banking,             for BTN Prioritas customers. Due to the specific target market,
      internet banking, ATM).                                    most marketing activities are Bellow The Line (BTL), through
2. Sharia Financing Product Marketing Strategies                 direct communication to customers. Starting from the first time
   a. Developing cooperation with Top Developers to obtain       a customer joins BTN Prioritas, the customer will receive a
      higher ticket size (i.e. emerging affluent and affluent)   welcome greeting. Customers will also get updates about BTN
      with increased marketing efforts.                          Prioritas promos and interesting ongoing programs via SMS
   b. Strengthening        communication      with    housing    blasts sent tactically or regularly via the Priority Booklet.
      stakeholders (Ministry of Public Works and Housing.
      Ministry of Finance) in the preparation of the             Even so, Above The Line (ATL) marketing strategies are still
      Government’s One Million Houses Program.                   being implemented, because BTN Prioritas still needs exposure
   c. Establishing cooperation and marketing programs with       to become better known as a brand, considering that Top of
      national and individual property agents. as direct-        Mind Bank BTN is still related to KPR. Activities carried out
      toconsumer (D2C) strategy, especially for Second-          include advertisements on TVCs, advertisements in cinemas,
      hand Housing Loan.                                         and events in public places, and exhibitions in collaboration
   d. Developing financing business that targets the             with partners.
      millennials through partnership with developers in
      joint promos for the millennials and KPR Harapan.          Apart from BTL and ATL marketing strategies, BTN Prioritas
   e. Optimizing the existing Housing Loan customer              marketing utilizes PLUS by BTN Prioritas as a marketing engine
      database through financing top-up program.                 to increase BTN Prioritas customer loyalty. Currently, PLUS
   f. Developing and selling products along the commercial       Acquisition has been developed as a marketing tool as an
      developer partners value chain.                            alternative for the sales team in offering programs with various
   g. Conducting ongoing maintenance for Existing                benefits and/or attractive prizes for BTN Prioritas customers,
      Developers - New Project or Existing Project               which previously were offered directly by the BTN Prioritas
      Development.                                               Relationship Manager. PLUS Acquisition in the marketing
   h. Diversifying the financing portfolio for SOEs, Bonafide    strategy is a pull factor that functions to create needs for BTN
      Private Business Groups and Educational Institutions.      Prioritas customers.
   i. Conducting digitization and automation of consumer
      and commercial financing processes (increasing             Transaction Banking Product Marketing Strategy
      Consumer FOS and Use of Commercial FOS).
   j. Developing special millennial mortgage (KPR) products      A description of the marketing strategy for transaction banking
      to increase millennial market acquisitions.                products throughout 2023 includes the following:
   k. Develop      effective   and    integrated    marketing    1. Piloting 3 (three) Business Ecosystem Segments which is
      communications and rebranding through an umbrella             an initiation program in 2023 to support the provision of
      campaign.                                                     “One Stop Service”, including in the Cement, Health and
   l. Merchant and partnership promotions that can reach            Education Industries.
      all of Indonesia.                                          2. Increasing collaboration on new customer acquisition
   m. Organize events that directly impact business                 with the SME, Commercial and Corporate Segments
      achievements through integrated activities (customer          to encourage transaction banking product and service
      gathering) and branch activation.                             activities, including cash management to support
   n. Create products that can accommodate the Rent to              increasing CASA and trade finance to support increasing
      Own Sharia scheme.                                            fee based income.
   o. Synergy and optimization of cooperation between            3. Expanding cooperation with insurance companies,
      development partners and the Employment Social                government agencies, private companies and state-owned
      Security Administering Agency (BPJS TK) in the                companies, as well as other stakeholders who support the
      distribution of BPJS TK Additional Service Benefit (MLT)      acceleration of transaction banking product acquisition.
      KPR.                                                       4. Optimizing the role of transaction banking sales and
   p. Expand cooperation with partners providing goods              wholesale implementers in executing transaction banking
      and services with a KPR bundling system.                      business in the region.
   q. Expansion of cooperation with travel provider
      partners.




                                                                     PT Bank Tabungan Negara (Persero) Tbk                229
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                                   Management Discussion and Analysis
                                   on Bank Performance




Digital Service Marketing Strategy                                           Acquisition Package      Reward Value      Kuota

                                                                             BTN Mobile Banking/
In increasing digital reach, company prepared several marketing              BTN Internet Banking +
                                                                                                       IDR5.000,-/
                                                                                                         account
strategy steps as follows:                                                   Notification SMS
                                                                                                                     60.000/month
1. Digital Service Development                                               BTN Mobile Banking +
                                                                                                       IDR7.500,-/
     To increase customer satisfaction, the digital channel                  BTN Internet Banking +
                                                                                                         account
     continued to develop digital product and service features               Notification SMS

     oriented to customer banking needs, Digital Channel                c. Culinary Snack Program with QRIS BTN Mobile which
     developed various digital platforms ranging from Superapps            is implemented in several cities in collaboration with
     BTN Mobile, EDC Acquiring, QRIS, API Management to                    several merchants typical of each city’s region.
     services that support customer transaction security such as        d. Regular program to increase transactions and brand
     SMS notifications, biometric logins and others. These various         awareness of features on BTN Mobile.
     platforms were designed in such a way that BTN customers           e. Offline events have been held in several regions,
     could carry out banking transactions anywhere and anytime             nationally and regionally. Nationally, it has been
     according to their needs. so that the customer’s sense of             implemented in several malls, events and office food
     engagement with BTN got stronger and synergy.                         courts in the Jakarta area. The promo program is as
2. Strengthening the Digital Mortgage Ecosystem                            follows:
     a. BTN as a bank that focuses on the housing sector had a             -    Mall
          central role in shaping the digital mortgage ecosystem.               Open booths in various malls in Jakarta and other
          On this basis. in every service development. the bank                 areas.
          always prioritized strategic cooperation with partners           -    Event
          who were members of the housing ecosystem from                        Collaboration with promoters or other event
          upstream to downstream through various digital products               organizers, to collaborate with BTN Mobile (method:
          and services such as BTN Property, BTN Property                       sponsorship)
          for Developers, E-Mitra, to the BTN Smart Residence              -    Foodcourt
          application.                                                          Promotion in the form of paying for customer lunch
     b. Apart from developing these applications. BTN routinely                 with BTN Mobile. Customers who register and
          organized BTN Property Expo both offline and online to                activate BTN Mobile at the offline event will get a
          accommodate the needs of the community in obtaining                   lunch voucher at that location.
          housing through KPR BTN.                                      f. Carrying out activation activities via social media such
3. Increase in User Acquisition and Active Rate Transactions               as conducting hashtag campaigns, creating challenges
     through Direct Sales:                                                 on social media (such as: Tiktok), collaborating with
     One of the digital channel marketing strategies implemented           influencers both micro, macro and medium.
     through a direct sales scheme to customers and to increase         g. Carrying out BTN Mobile branding in all the Company’s
     the active rate of transactions was as follows:                       Branch Offices and Regional Offices. An example is
     a. BTN Mobile acquisition reward program                              branding BTN Mobile on office buildings and official
          Customers who register and activate BTN Mobile during            office cars, as well as several public facilities in
          the program period will receive a savings balance                collaboration with management agencies in big cities.
          reward that is credited to the customer’s account. This
          program runs periodically throughout 2023 with different
          cashback values according to the current momentum.
     b. Acquisition incentive program for Branch Offices (KC)
          -   Branch Offices that successfully registers from digital
              services will received a reward worth:




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                                                                                                                             2023 Annual Report




Market Share

Information regarding Bank BTN’s market share compared to the banking industry is presented as follows.


Table of Bank BTN Market Share dibandingkan dengan Banking Industry Indonesia                                                                                         (in IDR trillion)


             Description                                      Information                                  September 2023                           September 2022

                                           Banking Industry                                                        11,170                                   10,501

 Asset                                     Bank BTN                                                                    410                                      389

                                           Bank BTN Market Share (%)                                                3.67%                                    3.71%

                                           Banking Industry                                                          8,147                                   7,647

 Third-party Fund                          Bank BTN                                                                    324                                      313

                                           Bank BTN Market Share (%)                                                3,97%                                    4,09%

                                           Banking Industry                                                          6,908                                   6,338

 Loans                                     Bank BTN                                                                    318                                      290

                                           Bank BTN Market Share (%)                                                4.61%                                    4.57%

Source: Indonesian Economic and Financial Statistics Bank Indonesia (SEKI BI), Indonesian Banking Statistics Financial Services Authority (SPI OJK), Internal Data, processed.



Bank BTN’s assets grew by 5.24% yoy, lower than the growth                                    Housing Loan Market Share
in total Asset Banking Industry, which was 6.37% yoy, in
connection with the Company’s focus in 2022 on improving                                      As the largest Housing Loan (KPR) provider in Indonesia, Bank
business quality. Until September 2023, Bank BTN Market                                       BTN has a market share of 39% with a total outstanding KPR
Share is 3.67%. Bank BTN’s Third-party Fund (DPK) grew                                        of IDR251 trillion. The main competitor in the KPR business in
by 3.54% yoy, to IDR324 trillion until September 2022,                                        Indonesia is Bank BCA with outstanding credit of IDR118 trillion,
lower than the growth of Banking Industry DPK which grew                                      followed by Bank BNI with outstanding credit reaching IDR57
6.54% yoy. This caused Bank BTN’s DPK market share to fall                                    trillion. As a bank that focuses on mortgage financing, both
by 12 bps to 3.97% in September 2023 from the previous                                        subsidized and non-subsidized mortgages, the Company has a
4.09% in September 2022. Bank BTN’s loan and financing                                        large market share in housing credit distribution in Indonesia.
grew 9.87% yoy, to IDR318 trillion until September 2023,                                      Especially with the One Million Houses Program agenda from
higher than banking loan growth which grew 8.99% yoy.                                         the Indonesian Government through the Ministry of Public Works
This prompted an increase in Bank BTN’s loan market share                                     and Public Housing and BP Tapera, the Company is believed
to 4.61% until September 2023.                                                                to get the largest portion in the distribution of subsidized KPR
                                                                                              financing. On September 30, 2023, the Company’s market
                                                                                              share in the subsidized mortgage financing sector reached 83%
                                                                                              while the Company’s market share in overall mortgage financing
                                                                                              on September 30 2023 reached 39%.



                                               Housing Loan (KPR) Market Share September 2023


                   39%                                      61%                                                    83%                                         17%




                                                                            BTN		                       Other Banks
                                Total Mortgage                                                                                    Total Subsidized
                                                                                                                                     Mortgage
 Source: Financial Services Authority (OJK) and Company, September 2023




                                                                                                   PT Bank Tabungan Negara (Persero) Tbk                                      231
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                                       Management Discussion and Analysis
                                       on Bank Performance




Operation Overview Per Business Segment

Bank BTN’s business segment by type of business covered 2                          revenue. On the other hand. the Sharia Segment which was
(two) main segments, namely the Conventional segment and the                       developed by the Sharia Business Unit (UUS) is growing annually
Sharia segment. The Conventional segment as the main business                      along with Bank BTN’s various efforts and initiatives.
segment of Bank BTN made a major contribution to Bank BTN’s


Conventional Segment

Explanation and Productivity of Conventional Segments



                                                            CONVENTIONAL SEGMENT




                             CONSUMER
                                                                                                          COMMERCIAL PRODUCTS
                             PRODUCTS




    CONSUMER SAVINGS                             CONSUMER LOAN                            COMMERCIAL SAVINGS                    COMMERCIAL LOAN
       PRODUCTS                                    PRODUCTS                                   PRODUCTS                             PRODUCTS




                                       INIDIVUDAL                                            COMMERCIAL
  CONSUMER       BTN RETAIL TERM                                      NON HOUSING                           INSTITUTIONAL                   NON HOUSING
                                        CHECKING     HOUSING LOAN                             CURRENT                       HOUSING LOAN
   SAVINGS          DEPOSIT                                              LOAN                                TERM DEPOSIT                      LOAN
                                        ACCOUNT                                               ACCOUNT




An overview of the performance of the Conventional Segment can be seen in the following table


                                              Graph of Conventional Segment Performance
                                                                      (in IDR trillion)



                    Consumer                                         Commercial                                Total Value of Conventional
                     Product                                           Product                                       Segment Product

                               63.40     63.77
                                                                                             243.69
                                                                                   223.89
                                                                                                                                           286.66
         41.80    42.45                                                                                                           261.55




                                                                                                              109.99   106.22

                                                          37.65     42.96




                                                                                                               Total Value        Total Value of
          Consumer                 Consumer               Commercial               Commercial
                                                                                                              of Consumer          Commercial
            Loan                    Savings                 Loan                     Savings
                                                                                                                 Product             Product

           2022                        2023




232          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                       2023 Annual Report




Consumer Product

The distribution of the Company’s products to Consumer Products   2022 which was IDR109.99 trillion. This decrease was caused
is divided into 2 (two), namely Consumer Loan Products and        by a decrease in consumer savings deposits and consumer term
Consumer Savings Products. Total Consumer Product in 2023         deposits in 2023.
was IDR106.22 trillion, an decrease of 3.42% compared to

Table of Consumer Product Value                                                                                       (in IDR million)


                                                                                                 Increase/Decrease
                Consumer Product                    2023               2022
                                                                                            Nominal                   %

 Consumer Loan Product                            42,450,499         41,795,595              654,904                 1.57%

 Consumer Savings Product                         63,770,218         68,190,039           (4,419,821)            (6.48%)

 Total Consumer Product                          106,220,717         109,985,634           (3,764,917)           (3.42%)



Consumer Loan Product volume increased along with the increase    194,438 units. On the other hand, Consumer Savings Products
in NoA Consumer Loan Product, which in 2023 was 198,986           experienced a decrease of 5.66%, reaching 6,872,266
units, an increase of 2.34% compared to 2022 which was            accounts in 2023.


Table of Consumer Product Volume

                                                                                                 Increase/Decrease
                Consumer Product                    2023               2022
                                                                                          Nominal             Percentage

 Consumer Loan Product (unit)                      198,986           194,438                  4,548                  2.34%

 Consumer Savings Product (rekening)              6,872,266         7,284,386             (412,120)              (5.66%)


CONSUMER LOAN PRODUCT
The Company provides Consumer Loan Products consisting of         mortgages and other housing loans. All individual consumer
Housing Loans and Non-Housing Loans. Housing loan products        credit products were distributed in Rupiah (IDR).
were classified into subsidized mortgages, non-subsidized



Table of Consumer Loan Product Distribution Value                                                                     (in IDR million)


                                                                                                 Increase/Decrease
                 Consumer Loan                      2023               2022
                                                                                          Nominal             Percentage

 Housing Loan                                     38,674,541         33,349,809            5,324,732             15.97%

   Subsidized Housing Loan                        20,114,296        19,940,148              174,148                  0.87%

   Non Subsidized Housing Loan                    16,191,348        12,066,104            4,125,244              34.19%

   Other Housing Loan                              2,374,553         1,340,995            1,033,558              77.07%

 Non Housing Loan                                  3,775,958          8,445,786           (4,669,828)           (55.29%)

 Total Consumer Loan Distribution Value           42,450,499         41,795,595              654,904                 1.57%



The distribution value of consumer loan products in 2023 was      an increase in housing loan distribution from non-subsidized
IDR42.45 trillion, an increase of 1.57% compared to 2022          mortgages and other housing loans.
which was IDR41.79 trillion. This increase was mainly due to




                                                                     PT Bank Tabungan Negara (Persero) Tbk                   233
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                                   Management Discussion and Analysis
                                   on Bank Performance




Table of Consumer Loan Product Distribution Volume                                                                                     (in unit)


                                                                                                          Increase/Decrease
                Consumer Loan                          2023                  2022
                                                                                                   Nominal                Percentage

 Housing Loan                                         176,174                173,701                  2,473                  1.42%

   Subsidized Housing Loan                            130,787               136,520                 (5,733)                (4.20%)

   Non Subsidized Housing Loan                         36,260                32,019                  4,241                 13.25%

   Other Housing Loan                                    9,127                 5,162                 3,965                 76.81%

 Non Housing Loan                                      22,812                 15,589                  7,223                 46.33%

 Total Consumer Loan Distribution Volume              198,986                189,290                  9,696                  5.12%




Distribution Volume of Consumer Loan Products in 2023 reached           The Subsidized Housing Loans are distributed by Bank BTN under
198,986 units, an increase of 2.34% compared to 2022 which              the House Financing Liquidity Facility (FLPP), and Community
was 194,438 units. This increase was caused by an increase in           Housing Savings (Tapera) schemes. Low-Income Community
the volume of distribution of Non-Subsidized KPR, Other Housing         comprises first-time buyers who meet certain requirements to
Loans and Non-Housing Non-Credit.                                       obtain Subsidized Housing Loans with affordable installments.
                                                                        Under the currently applicable government regulation. KPR
Housing Loan-Subsidized Housing                                         Sejahtera FLPP facilities are provided for customers looking to
Since 1976 until today, albeit with continuously changing               purchase houses. with the household income of IDR8 million/
scheme. the Subsidized Housing Loans have been steadily                 month (for Java, Sumatra, Kalimantan and Sulawesi) and IDR10
distributed. Subsidized Housing Loans are Government-initiated          million/month (for Papua). On the other hand. KPR Tapera facility
house ownership program run by the Ministry of Public Works             is provided to customers registered as BP-Tapera participants with
and Housing, provided to low income communities. That are               the household income of IDR8 million/month (for Java, Sumatra,
distributed by conventional and sharia implementing banks. In           Kalimantan and Sulawesi) and IDR10 million/month (for Papua).
Subsidized Housing Loan program. the Government provides                The prices for houses purchased through these facilities are
assistance through long-term low-cost funding as well as down           limited to a certain amount.
payment subsidies, resulting in affordable installment for
prosperity landed house or flat purchase.                               The provisions for the distribution of KPR FLPP for landed house
                                                                        and flat purchase are as follows:
Company strives to provide convenience and low-cost facilities          1. The maximum value of housing loans is the selling price of
for the people aiming to purchase house under the Subsidized                the landed estates or flats minus the down payment prepared
Housing Loan program. Bank BTN was mandated with the                        by MBR. Through this program, MBR also deserves Down
task to provide Subsidized Housing Loans for the first time by              Payment Assistance of IDR4 million (for Java, Sumatra,
the Letter of the Minister of Finance No. B-49/MK/IV/I/1974                 Kalimantan and Sulawesi) and IDR10 million (for Papua)
dated January 29,1974. in which the first housing loan was                  from the Government.
distributed on December 10,1976. In distributing Subsidized             2. The Housing Loan interest rate to be paid by the debtors is
Housing Loans. Bank BTN collaborates with the Ministry of Public            5% p.a., inclusive of life insurance. fire insurance. and credit
Works and Public Housing. The currently applicable provisions               insurance premiums. The interest rate as referred to in item
on Subsidized Housing Loan distribution are contained in the                (1) is fixed throughout the tenure of the loan, calculated on
Regulation of the Minister of Public Works and housing No. 35/              an annuity.
PRT/M/2021 dated December 31,2021 on House Ownership                    3. The sources of the FLPP program funding are 75% from the
Convenience and Subsidies for Low-Income Community.                         Government and 25% from the Company. The Company
Regulation of the Minister of Public Work and Housing No.                   has entered into an agreement with PT Sarana Multigriya
32 of 2021 on Savings-Based House Financing Subsidies and                   Finansial for the provision of funding for the FLPP program.
Regulation of BP Tapera No. 6 of 2021 on House Financing                4. The tenure for the Housing Loan is agreed upon by the
for Community Housing Savings Participants as amended by                    Company and the low-income customer. which also takes
BP Tapera Regulation No. 8 of 2021 and BP Tapera Regulation                 into account the potential debtor’s capability to pay the
Number 9 of 2021 concerning Home Ownership Financing                        installments within a period of maximum 20 years.
through the Housing Finance Liquidity Facility.




234          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




The provisions for the distribution of KPR Tapera is as follows:          (2) is fixed throughout the tenure of the loan. calculated on
1. KPR Tapera shall be provided for Tapera participants who               an annuity.
    have met certain requirements and participant priority order       4. The tenure for the Housing Loan is agreed upon by the
    from BP Tapera.                                                       Company and the low-income customer, which also takes
2. The down payment for KPR Tapera shall be at minimum 0%.                into account the potential debtor’s capability to pay the
    according to the Company’s assessment of the low-income               installments within a period of maximum 30 years.
    customer.                                                          5. The Company shall issue the Asset- Backed Security (EBA)
3. The Housing Loan interest rate to be paid by the debtors is            according to the amount of loan realized, in collaboration
    5% p.a., inclusive of life insurance. fire insurance. and credit      with a Custodian Bank appointed by BP-Tapera.
    insurance premiums. The interest rate as referred to in item

Table of Subsidized Housing Loan (KPR) Distribution Value                                                                    (in IDR million)


                                                                                                       Increase/Decrease
              Subsidized Housing                        2023                2022
                                                                                                 Nominal              Percentage

 KPR BTN Sejahtera Tapak                              19,411,272         18,339,646              1,071,626                  5.84%

 KPR BP2BT                                                         -        982,618               (982,618)             (100.00%)

 KPR BTN TAPERA                                          703,024            617,884                 85,140                 13.78%

 Total Subsidized Housing Distribution Value          20,114,296          19,940,148                174,148                 0.87%




The value of subsidized KPR distribution in 2023 was IDR20.11          Rent to Own KPR scheme. The Company also continues to
trillion, an increase of 0.87% compared to 2022 which was              increase the share of the Company’s Subsidized KPR through
IDR19.94 trillion. This increase was mainly caused by increasing       deepening cooperation with agencies and stakeholders in the
public demand for prosperous housing needs in line with the            housing sector, both financing support (BP TAPERA, SMF and the
growth of the Indonesian economy which was in line with the            Ministry of PUPR), as well as from the supply and demand side,
re-increase in community economic activity after the Covid-19          in collaboration with various agencies/associations (developer
pandemic.                                                              associations, associations market traders, technology companies
                                                                       such as Gojek, Grab and others) Development and improvement
In line with these steps, the Company is also developing equitable     of business processes, use of the latest technology and expanding
and inclusive financing schemes through the development of             the business ecosystem also have a positive impact on the growth
subsidized KPR products such as: new FLPP KPR, Tapera KPR,             of the Company’s subsidized KPR distribution.



Table of Subsidized Housing Distribution Volume                                                                                     (in unit)


                                                                                                       Increase/Decrease
              Subsidized Housing                        2023                2022
                                                                                                 Nominal              Percentage

 KPR BTN Sejahtera Tapak                               126,312             123,335                  2,977                  2.41%

 KPR BP2BT                                                     0             9,060                 (9,060)             (100.00%)

 KPR BTN TAPERA                                           4,514              4,125                    389                  9.43%

 Total Subsidized Housing Distribution Volume          130,830             136,520                 (5,690)               (4.17%)




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   235
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                                    Management Discussion and Analysis
                                    on Bank Performance




The volume of subsidized KPR distribution in 2023 was 130,830            of 15 (fifteen) years for Apartment Ownership Credit (KPA) and
units, a decrease of 4.17% compared to 2022 which was                    Shophouse Credit. The Company’s Non-Subsidized KPR provides
136,520 units. This decrease was influenced by the absence of            services for purchasing houses from developers or non-developers,
BP2BT KPR distribution for 2023.                                         both for purchasing new or second-hand houses, purchasing ready-
                                                                         to-live-in (ready stock) or unfinished (indent) houses, as well as taking
Housing Loan- Non Subsidized Housing Loan                                over credit from other banks. Minimum down payment requirement
Apart from Subsidized Housing, the Company also has various              of 15% or in accordance with Bank Indonesia Regulations regarding
Non-Subsidized KPR services targeting middle to upper income             Loan to Value (LTV) Ratio. The company distributes Non-Subsidized
customers with floating interest rates. The maximum term offered         KPR credit through several products, namely KPR BTN Platinum, KPA
is 25 (twenty five) years for Non-Subsidized KPR and a maximum           BTN and Kredit Ruko BTN.

Table of Non Subsidized Housing Loan Product Distribution Value                                                                      (in IDR million)


                                                                                                             Increase/Decrease
        Non Subsidized Housing Loan                     2023                   2022
                                                                                                      Nominal                 Percentage

 KPR BTN Platinum                                     15,934,162            11,845,846                4,088,316                  34.51%

 KPA BTN                                                 136,875               194,871                  (57,996)                (29.76%)

 Kredit Ruko BTN                                         120,311                 25,387                  94,924                 373.91%

 Total Non Subsidized Housing Loan Distribution
                                                      16,191,348            12,066,104                4,125,244                   34.19%
 Value


Distribution Value of Non-Subsidized Housing Loans in 2023               to an increase in the Distribution Value of BTN Platinum KPR by
was IDR16.19 trillion, an increase of 34.19% compared to                 34.51%.
2022 which was IDR12.07 trillion. This increase was mainly due


Table of Distribution Volume Non Subsidized Housing Loan
                                                                                                                                            (in unit)


                                                                                                             Increase/Decrease
        Non Subsidized Housing Loan                     2023                   2022
                                                                                                      Nominal                 Percentage

 KPR BTN Platinum                                       35,906                31,581                     4,325                  13.69%

 KPA BTN                                                   217                   384                     (167)                 (43.49%)

 Kredit Ruko BTN                                           137                     54                       83                 153.70%

 Total Non Subsidized Housing Loan Distribution
                                                        36,260                32,019                     4,241                   13.25%
 Volume


Distribution Volume of Non-Subsidized Housing Loans in 2023              4. Developing Direct to Consumer (D2C) segment through
was 36,260 units, an increase of 13.25% compared to 2022                    partnerships with national property agencies.
which was 31,581 units. This increase was mainly due to an               5. Increasing the portfolio of non-subsidized housing loans
increase in BTN Platinum KPR Distribution Volume of 13.69%.                 products through BTN Property online channel.
This increase in Non-Subsidized Housing Loan distribution was
driven by the implementation of several Company initiatives in           Consumer Loans - Other Housing Loans
2023 such as:                                                            Bank BTN also offers other types of housing loans and Consumer
1. Upselling Non-Subsidized Housing Loans for BTN customers              Loans according to the customers’ needs. Other Housing Loans
     who have paid off their loans.                                      are Bank BTN’s endeavor in developing business as well as in
2. Developing a financing scheme from TAPERA, from the                   helping the customers with residence ownership with high profit
     Social Security Administrator for Employment (BPJS TK) and          and convenience. Bank BTN’s other Housing Loans are distributed
     from Pension Funds, for the provision of affordable housing.        under the following products, namely, Kredit Agunan Rumah,
3. Expanding housing business in the emerging and mass                   Kredit Bangun Rumah, Bank Cooperation Housing Renovation
     affluent segment through partnerships with top 20 private           Loan (Pinjaman Renovasi Rumah Kerjasama Bank/PRR-KB) BPJS
     national real estate companies.                                     Ketenagakerjaan, Additional Housing Down Payment of Housing
                                                                         Savings Advisory Board (Additional Housing Down Payment
                                                                         Housing Savings Consideration Agency/TBUM Bapertarum).



236          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                           2023 Annual Report




Table of Other Housing Loan Distribution Value                                                                             (in IDR million)


                                                                                                     Increase/Decrease
              Other Housing Loan                     2023                2022
                                                                                               Nominal               Percentage

 Kredit Agunan Rumah (Home Collateral)             2,347,810           1,305,831              1,041,979                79.79%

 Kredit Bangun Rumah (Home Building)                   3,150               1,310                   1,840              140.46%

 PRR-KB BPJS Ketenagakerjaan                          23,593              33,854                (10,261)              (30.31%)

 Total Other Housing Loan Distribution Value       2,374,553           1,340,995               1,033,558                77.07%



Distribution Value of Other Housing Loans in 2023 was IDR2.37       the Distribution Value of Kredit Agunan Rumah (Home Collateral
trillion, an increase of 77.07% compared to 2022 which was          Loans) by 79.79% and Kredit Bangun Rumah (Home Building
IDR1.34 trillion. This increase was mainly due to an increase in    Loans) by 140.46%.

Table of Other Housing Loan Distribution Volume                                                                                   (in unit)


                                                                                                      Increase/Decrease
                Other Housing Loan                     2023                2022
                                                                                                Nominal              Percentage

 Kredit Agunan Rumah (Home Collateral)                 8,944               4,920                  4,024                  81.79%

 Kredit Bangun Rumah (Home Building)                        11                  5                     6                120.00%

 PRR-KB BPJS Ketenagakerjaan                             160                 216                    (56)               (25.93%)

 Jumlah Other Housing Loan Distribution Volume         9,115               5,141                  3,974                  77.30%



Distribution Volume of Other Housing Loans in 2023 was 9,115        Non-Housing Loans
units, an increase of 77.30% compared to 2022 which will be         Company provides other Consumer Loans apart from the Housing
5,141 units. This increase was mainly due to an increase in the     Loans for various needs of the lending customers. Company Non-
volume of Kredit Agunan Rumah (Home Collateral Loans) and           Housing Loans are distributed under the following products,
Kredit Bangun Rumah (Home Building Loans) by 81.79% and             which are Kring BTN, Kring BTN Pensiunan (Pension Loans),
120.00% in line with the Company’s strategy to increase the         Kredit Swadana BTN, and Kredit Pegawai (Employee Loans).
portion of its high-margin credit business in 2023.

Table of Non-Housing Loans Distribution Value                                                                              (in IDR million)


                                                                                                       Increase/Decrease
                 Non-Housing Loans                      2023                2022
                                                                                                 Nominal              Percentage

 Kring BTN                                              2,161,227          1,622,150               539,077                33.23%

 Kring BTN Pensiunan (Pension Loans)                      169,238            112,482                56,756                50.46%

 Kredit Swadana BTN                                     1,264,244          6,673,308            (5,409,064)             (81.06%)

 Kredit Pegawai (Employee Loans)                          181,249             37,846               143,403              378.91%

 Total Non-Housing Loans Distribution Value             3,775,958          8,445,786             (4,669,828)             (55.29%)



Distribution Value of Non-Housing Loans in 2023 was IDR3.78         IDR8.44 trillion. This was caused by a decrease in the Distribution
trillion, a decrease of 55.29% compared to 2022 which was           Value of BTN Swadana Credit by 81.06%.




                                                                        PT Bank Tabungan Negara (Persero) Tbk                     237
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                                   Management Discussion and Analysis
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                                                                                                                                          (in unit)
Table of Non-Housing Loans Distribution Volume

                                                                                                             Increase/Decrease
                Kredit Non Perumahan                         2023                2022
                                                                                                       Nominal               Percentage

 Kring BTN                                                   19,133             13,771                   5,362                  38.94%

 Kring BTN Pensiunan                                           1,651              1,092                     559                 51.19%

 Kredit Swadana BTN                                            1,613              5,720                 (4,107)               (71.80%)

 Kredit Pegawai                                                 415                  154                    261               169.48%

 Total Volume of Non-Housing Loan Distribution               22,812              20,737                   2,075                 10.01%



Distribution Volume of Non-Housing Loans in 2023 was 22,812             2. Developing a platform namely BTN READY (Credit Digital for
units, an increase of 10.01% compared to 2022 which will be                You / for Y Generation) Phase I.
20,737 units. This increase was mainly due to an increase in Kring      3. Strengthening the partnerships with strategic partners and
BTN distribution by 38.94%, Kring BTN Pensiunan by 51.19%,                 expanding supply chain by optimizing partnerships with
Employee Credit by 169.48%.                                                institutions via BTN Solusi, BTN Payroll and collectives.


The increase was fostered by the implementation of the initiatives of   CONSUMER SAVINGS PRODUCT
the Company in 2023 as follows:                                         The company provides various deposit products to answer customer’s
1. Cooperating with Government institutions, SoE and Private            savings need. which are classified into two (2), i.e. Savings and
    Companies with the privilege of interest rate as the facility of    Time Deposits. Through the provision of these products. Company
    KPR/KPA and Light Installment BTN with the requirement of           seeks to maintain sound liquidity level. low-cost funds that are in line
    payroll in Bank BTN.                                                with company’s strategies to maintain competitive and affordable
                                                                        financial composition.

Table of Total Consumer Deposit Funds                                                                                              (in IDR million)


                                                                                                            Increase/Decrease
                Consumer Savings                         2023                 2022
                                                                                                     Nominal                 Percentage

 Consumer Savings                                     37.720.836          36.180.189                1.540.647                   4,26%

 Time Deposit                                         26.724.483          27.219.982                 (495.499)                 (1,82%)

 Total Consumer Deposit Funds                         64.447.342           63.400.171                1.047.171                   1,65%




Total Consumer Deposit Funds in 2023 amounted to IDR63.77               amounted to IDR63.40 trillion. This decrease was mainly due to
trillion, an decrease of 6.48% compared to 2022 which                   a decrease in Consumer Savings by 9.58%.

Table of Total Consumer Savings Accounts                                                                                              (in account)


                                                                                                           Increase/Decrease
             Consumer Savings                        2023                  2022
                                                                                                   Nominal                  Percentage

 Consumer Savings                                  6,779,607            7,193,794                  (414,187)                   (5.76%)

 Time Deposit                                         92,659               90,592                      2,067                     2.28%

 Total Consumer Savings Accounts                   6,872,266             7,284,386                  (412,120)                   (5.66%)


The number of Consumer Savings accounts in 2023 was                     to a decrease in the number of Consumer Savings accounts by
6,872,266 accounts, a decrease of 5.66% compared to 2022                5.76%.
which was 7,284,386 accounts. This decrease was mainly due




238          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                      2023 Annual Report




Consumer Savings                                                   d. Tabungan BTN Felas
The Consumer Savings owned by company provides                     e. Tabungan Juara
transactional savings solution with convenient purchase and        f. TabunganKu
payment transactions through company channels to support the       g. Tabungan BTN Simpel
consumers’ financial activities. Company consumer savings are      h. Tabungan Cermat
developed through the following products:                          i. Tabungan BTN Perumahan
1. Tabungan Batara                                                 j. Tabungan BTN Haji Reguler
2. Tabungan Bisnis                                                 k. Tabungan BTN Haji Plus
3. Tabungan Investa                                                l. Tabungan Simuda Rumahku
4. Other Saving Accounts, consisting of some products as           m. Tabungan Batara Pendidik
    follows:                                                       n. Tabungan Batara Tax Amnesty
    a. Tabungan BTN Payroll                                        o. Tabungan BTN Batara RDN
    b. Tabungan BTN Pensiunan                                   5. Tabungan eBatara Pos
    c. Tabungan BTN Siap!

Table of Total Consumer Savings                                                                                      (in IDR million)


                                                                                                Increase/Decrease
                Consumer Savings                  2023               2022
                                                                                         Nominal              Percentage

 Tabungan Batara                                14,309,848       15,945,562            (1,635,714)              (10.26%)

 Tabungan Bisnis                                 3,107,035         2,281,670              825,365                36.17%

 Tabungan Investa                               12,451,489       10,543,816              1,907,673               18.09%

 Tabungan BTN Pensiunan                           247,986           217,661                 30,325               13.93%

 Tabungan Batara Pendidik                         181,773           160,781                 20,992               13.06%

 Tabungan Batara Prima                           1,141,538         2,112,185             (970,647)              (45.95%)

 Tabungan Batara Tax Amnesty                         5,719             2,418                 3,301              136.52%

 Tabungan KPR Mass                                 40,912           118,783                (77,871)             (65.56%)

 Tabungan BTN Batara RDN                             7,073             7,447                  (374)              (5.02%)

 Other Savings                                   3,603,684         2,613,426              990,258                37.89%

   Tabungan BTN Junior                            518,793           615,681                (96,888)             (15.74%)

   Tabungan BTN Juara                             732,105           748,512                (16,407)              (2.19%)

   TabunganKu                                     951,420           924,881                 26,539                  2.87%

   Tabungan BTN Simpel                            161,175           103,371                 57,804               55.92%

   Tabungan Cermat                                951,420             20,763              930,657             4.482.29%

   Tabungan BTN Perumahan                          22,416             25,738                (3,322)             (12.91%)

   Tabungan BTN Haji Reguler                              -                 -                      -                      -

   Tabungan BTN Haji Plus                                 -                 -                      -                      -

   Tabungan BTN Siap!                              73,517             71,787                 1,730                  2.41%

   Tabungan Felas                                 192,807           102,646                 90,161               87.84%

   Tabungan Simuda Rumahku                               31               47                   (16)             (34.04%)

 Tabungan Pos                                    1,948,677         2,176,441             (227,764)              (10.46%)

   Tabungan Tabanas Batara                         13,657             15,867                (2,210)             (13.93%)

   Tabungan eBatara Pos                          1,935,020         2,160,574             (225,554)              (10.44%)

 Total Consumer Savings Fund                    37,045,734        36,180,190               865,544                  2.39%



Total Consumer Savings funds in 2023 amounted to IDR37.05       to IDR36.18 trillion. This increase was mainly due to growth in
trillion, a increase of 2.39% compared to 2022 which amounted   Investment Savings by IDR1.92 trillion.




                                                                    PT Bank Tabungan Negara (Persero) Tbk                     239
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                                   Management Discussion and Analysis
                                   on Bank Performance




Table of Number of Consumer Savings Accounts                                                                                     (in account)


                                                                                                         Increase/Decrease
                Consumer Savings                       2023                  2022
                                                                                                  Nominal               Percentage

 Tabungan Batara                                     2,880,855             3,263,730               (382,875)              (11.73%)

 Tabungan Investa                                        7,535                 7,559                    (24)                (0.32%)

 Tabungan BTN Pensiunan                                 27,746                20,093                  7,653                 38.09%

 Tabungan Batara Pendidik                               63,789               101,228                (37,439)              (36.98%)

 Tabungan Batara Prima                                  10,483                15,268                 (4,785)              (31.34%)

 Tabungan Batara Tax Amnesty                                  23                  21                       2                 9.52%

 Tabungan KPR Mass                                      69,127                76,495                 (7,368)                (9.63%)

 Tabungan BTN Batara RDN                                 4,466                 4,556                    (90)                (1.98%)

 Other Savings                                       3,092,363             3,037,945                 54,418                  1.79%

   Tabungan BTN Junior                                 111,110               123,165                (12,055)                (9.79%)

   Tabungan BTN Juara                                  556,006               511,129                 44,877                  8.78%

   TabunganKu                                        1,448,630             1,487,288                (38,658)                (2.60%)

   Tabungan BTN Simpel                                 795,592               742,308                 53,284                  7.18%

   Tabungan Cermat                                     123,211               123,214                     (3)                 0.00%

   Tabungan BTN Perumahan                                2,617                 2,785                   (168)                (6.03%)

   Tabungan BTN Haji Reguler                                  2                     2                       -                0.00%

   Tabungan BTN Haji Plus                                  259                   259                        -                0.00%

   Tabungan BTN Siap!                                   53,936                47,165                  6,771                 14.36%

   Tabungan Felas                                          998                   622                    376                 60.45%

   Tabungan Simuda Rumahku                                    2                     8                    (6)              (75.00%)

 Tabungan Pos                                          587,969               642,183                (54,214)                (8.44%)

   Tabungan Tabanas Batara                               2,202                 2,932                   (730)              (24.90%)

   Tabungan eBatara Pos                                585,767               639,251                (53,484)                (8.37%)

   Tabungan Bisnis                                      35,251                24,716                 10,535                 42.62%

 Number of Consumer Savings Accounts                 6,779,607             7,193,794               (414,187)                 (5.76%)




The number of Consumer Savings accounts in 2023 was 6.78                BTN Retail Time Deposits
million accounts, a decrease of 5.76% compared to 2022 which            Bank BTN’s time deposit product provides convenience for
was 7.19 million accounts. This decrease was mainly caused by           customers who aim to make highly beneficial term investments.
a decrease in accounts from Pos Savings by 54,214 accounts.             The investments are placed in Indonesia Rupiah with attractive
                                                                        and competitive interest rate. BTN Retail Time Deposits is offered
                                                                        with tenures of 1 month, 2 months, 3 months, 6 months, and >12
                                                                        months, as well as through Deposito On Call.




240         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                      2023 Annual Report




Table of Total Time Deposit                                                                                           (in IDR million)


                                                                                                Increase/Decrease
                 Time Deposit                   2023                2022
                                                                                         Nominal               Percentage

 1 Month                                      8,293,915          12,132,350             (3,838,435)                 (31.64%)

 2 Month                                        447,053             798,656               (351,603)                 (44.02%)

 3 Month                                     11,878,796          11,929,638                (50,842)                  (0.43%)

 4 Month                                        768,713             408,758                359,955                   88.06%

 6 Month                                      2,016,777           1,422,113                594,664                   41.82%

 > 12 Month                                     327,305             375,519                (48,214)                 (12.84%)

 E-Depo

 1 Month                                        889,459               2,036                887,423              43.586.59%

 2 Month                                         52,986                        -            52,986                  100.00%

 3 Month                                      1,001,338               1,864                999,474              53.619.85%

 4 Month                                        223,584                        -           223,584                  100.00%

 6 Month                                        597,071                 759                596,312              78.565.48%

 12 Month                                        17,026                  17                 17,009            100.052.94%

 Deposito On Call                               210,461             132,704                 77,757                   58.59%

 DHE                                                       -         15,568                (15,568)               (100.00%)

 Total Time Deposit Funds                    26,724,484          27,219,982               (495,498)                  (1.82%)



Total Time Deposits in 2023 amounted to IDR26.72 trillion,     IDR27.22 trillion. This decrease was mainly caused by a decrease
a decrease of 1.82% compared to 2022 which amounted to         in deposits for a period of 1 month amounting to IDR3.84 trillion.



Table of Total Time Deposit Accounts                                                                                     (in account)


                                                                                                Increase/Decrease
                 Time Deposit                   2023                2022
                                                                                          Nominal              Percentage

 1 Month                                       43,687              52,685                  (8,998)                (17.08%)

 2 Month                                         1,273               1,634                  (361)                 (22.09%)

 3 Month                                       22,970              24,482                  (1,512)                  (6.18%)

 4 Month                                          203                  196                      7                    3.57%

 6 Month                                         8,628               8,562                     66                    0.77%

 > 12 Month                                      2,839               2,924                    (85)                  (2.91%)

 E-Depo

 1 Month                                         5,599                  55                  5,544              10,080.00%

 2 Month                                          479                      -                  479                 100.00%

 3 Month                                         4,340                   9                  4,331              48,122.22%

 4 Month                                          559                      -                  559                 100.00%

 6 Month                                         1,772                   5                  1,767              35,340.00%

 12 Month                                         296                    2                    294              14,700.00%

 Deposito On Call                                  14                   37                    (23)                (62.16%)

 DHE                                                   -                 1                     (1)               (100.00%)

 Total Time Deposit Funds                      92,665               90,592                  2,067                     2.28%



The number of Time Deposit Accounts in 2023 was 92,665         90,592 accounts. This increase was mainly due to the increase
accounts, an increase of 2.28% compared to 2022 which was      in E-Depo in the 1 month period amounting to 5,544 accounts.




                                                                   PT Bank Tabungan Negara (Persero) Tbk                     241
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                                       Management Discussion and Analysis
                                       on Bank Performance




Commercial Product

The Company’s product portfolio in Commercial Products was divided into 2 (two), namely Commercial Loan Products and Commercial
Savings Products.


Table of Commercial Product Value                                                                                                 (in IDR million)


                                                                                                            Increase/Decrease
             Commercial Product                            2023                  2022
                                                                                                      Nominal              Percentage

 Commercial Loan Product                                  42,963,396           37,654,912              5,308,484              14.10%

 Commercial Savings Product                              243,694,432          223,893,013             19,801,419                8.84%

 Total Commercial Product Value                          286,657,828           261,547,925            25,109,903                9.60%




The total value of Commercial Products in 2023 was IDR286.66                in distribution of Commercial Credit products by 21.02% and
trillion, an increase of 9.60% compared to 2022 which was                   Commercial Savings products by 7.68%.
IDR261.55 trillion. This increase was mainly due to an increase

Table of Commercial Product Distribution Volume                                                                                          (in unit)


                                                                                                            Increase/Decrease
             Commercial Product                            2023                  2022
                                                                                                      Nominal               Percentage

 Commercial Loan Product (Unit)                            17,416                11,538                  5,878                50.94%

 Commercial Savings Product (Account)                     154,772                66,764                 88,008               131.82%


The number of Commercial Loan products in 2023 was                          COMMERCIAL LOAN PRODUCT
17,416 units or an increase of 50.94% compared to 2022                      Bank BTN provides commercial banking credit products to
which are 11,538 units. The number of Commercial Savings                    provide a variety of solutions for consumers with products
products in 2023 was 154,772 accounts or an increase of                     consisting of Housing Loans and Non-Housing Loans products.
131.82% compared to the number of accounts in 2022, by                      Housing Loans are in the form of Construction Loans, while Non-
66,764 accounts. The highest increase in the distribution                   Housing Loans consist of MSME Loans and Commercial Loans
volume of Commercial Products was contributed by the growth                 (KI, KMK and KMK Contractor).
of Commercial Savings products, which was dominated by
the addition of Current Accounts with an increase of 86,228
accounts, or 149.56%.


Table of Commercial Loan Product Distribution Value                                                                               (in IDR million)


                                                                                                            Increase/Decrease
                Commercial Loans                           2023                  2022
                                                                                                      Nominal              Percentage

 Housing Loan

   Construction Loans                                    10,065,987             6,289,738             3,776,249                 60.04%

 Non-Housing Loans

   MSME Loans                                             6,722,689             5,590,911             1,131,778                 20.24%

   Other Commercial Loans                                26,174,720           25,774,215                400,505                  1.55%

 Total Commercial Loans Distribution                     42,963,396            37,654,864              5,308,532                14.10%



The Commercial Loan distribution value in 2023 was IDR42.97                 Construction Loan distribution of IDR3.78 trillion or an increase
trillion, an increase of 14.10% compared to 2022 which was                  of 60.04%.
IDR37.65 trillion. This increase was mainly due to an increase in




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                                                                                               2023 Annual Report




Table of Commercial Loan Product Distribution Volume                                                                                    (in unit)


                                                                                                          Increase/Decrease
                Commercial Loans                         2023                2022
                                                                                                   Nominal                Percentage
 Housing Loan
   Construction Loans                                     5,797               4,811                     986                 20.49%
 Non-Housing Loans
   MSME Loans                                            11,067               6,208                   4,859                 78.27%
   Other Commercial Loans                                   552                 519                      33                  6.36%
 Total Commercial Loans Distribution Volume              17,416              11,538                   5,878                 50.94%


The Commercial Loan distribution volume in 2023 was 17,416              Construction Loans have a strategic role in the One Million
units, an increase of 50.94% compared to 2022 which was                 Houses Program as its distribution is capable of creating
11,538 units. This increase was caused by an increase in MSME           house supply. In making the decision for financing building
Loan distribution by 78.27%, Construction loan by 20.49% and            constructions. Company takes into account the maturity period
other commercial loan by 6.36%.                                         based on the estimated construction period. Construction Loans
                                                                        are guaranteed using the relevant plot of land land and buildings
Housing Loan – Construction Loans                                       to be constructed on the land as collaterals.
Housing Loans in Commercial Product cover Construction Loans,
Company provides various property construction solutions                Commercial product customers who have received BTN Construction
with many facilities and benefits offered. Bank BTN provides            Loans may also obtain Kredit Kepemilikan Lahan (Land Ownership
construction loans to housing developers for working capital            Loans). Company provides loan for the acquisition of land to be
purposes which can be used to finance the construction of houses        used for constructing residences and subsidized apartment. at
and apartments. For this type of credit, company provides a             maximum 70% of the loan cost. The tenure for the loan follows the
maximum credit of up to 80% of development or construction              tenure of the construction loan and guaranteed by the land acquired
costs with floating interest rates. The construction loans facility     and the buildings financed. three years and secured by collateral in
provides convenience for commercial banking customers to                the form of land acquired and buildings financed.
carry out developments in the construction of horizontal and
vertical buildings/high rise buildings including their facilities and   The Company distributes Construction Loans through 2 (two)
infrastructure.                                                         products, namely BTN Construction Loans and Corporate
                                                                        Construction Loans



Table of Total Construction Loans Distribution Value                                                                            (in IDR million)


                                                                                                          Increase/Decrease
                Construction Loans                       2023                2022
                                                                                                   Nominal                Percentage

 BTN Construction Loans                                 9,985,027           5,909,506              4,075,521                  68.97%

 Corporate Construction Loans                              80,960             380,232               (299,272)                (78.71%)

 Total Construction Loans Distribution Value           10,065,987           6,289,738               3,776,249                 60.04%



The Construction Loan products distribution value in 2023 was           which was IDR6.29 trillion. This increase was mainly due to an
IDR10.07 trillion, an increase of 60.04% compared to 2022               increase in BTN construction loan distribution of 68.97%.



Table of Construction Loans Distribution Volume                                                                                         (in unit)


                                                                                                          Increase/Decrease
                Construction Loans                       2023                2022
                                                                                                   Nominal                Percentage

 Construction Loans BTN                                   5,793               4,801                    992                 20.66%

 Construction Loans Korporasi                                 4                  10                      (6)              (60.00%)

 Total Construction Loans Distribution Volume             5,797               4,811                     986                 20.49%




                                                                            PT Bank Tabungan Negara (Persero) Tbk                     243
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                                   Management Discussion and Analysis
                                   on Bank Performance




The Construction Loan distribution volume in 2023 was 5,797             Non-Housing Loans- Small Micro and Medium Enterprises
units, an increase of 20.49% compared to 2022 which was                 (MSMEs) Loans
4,811 units. This increase was mainly due to an increase in the         Company provides MSME Loans as a solution for Micro, Small
volume of BTN Construction Loan by 20.66%.                              and Medium Entrepreneurs (MSMEs) and aims to channel
                                                                        productive business financing. The Company distributes MSME
                                                                        Loans through several products, namely People’s Business Loans
                                                                        (KUR), Micro Small Business Loans (KUMK), Working Capital
                                                                        Loans (KMK), MSME Investment Loans, MSME Contractor KMK.

Table of MSME Loans Distribution Value                                                                                        (in IDR million)


                                                                                                        Increase/Decrease
                    MSME Loans                         2023                  2022
                                                                                                  Nominal              Percentage

 KUR                                                 1,807,673               602,060             1,205,613               200.25%

 KUMK                                                2,199,676             2,314,423              (114,747)               (4.96%)

 KMK                                                 2,652,068             2,647,619                 4,449                  0.17%

 UMKM Investment Loans                                  15,804                 3,740                12,064               322.57%

 MSME Contractor KMK                                    47,468                23,069                24,399               105.77%

 Total MSME Loans Distribution Value                 6,722,689             5,590,911              1,131,778                 20.24%



The MSME loan products distribution value in 2023 was IDR6.72           IDR5.59 trillion. This increase was mainly due to an increase in
trillion, an increase of 20.24% compared to 2022 which was              KUR distribution by 200.25%.



Table of MSME Loans Product Distribution Volume                                                                                       (in unit)


                                                                                                        Increase/Decrease
                    MSME Loans                         2023                  2022
                                                                                                  Nominal              Percentage

 KUR                                                    8,214                2,475                  5,739              231.88%

 KUMK                                                   1,405                2,309                  (904)              (39.15%)

 KMK                                                    1,404                1,398                      6                 0.43%

 UMKM Investment Loans                                     10                     4                     6              150.00%

 MSME Contractor KMK                                       34                   22                     12               54.55%

 Total MSME Loans Distribution Volume                  11,067                 6,208                 4,859                78.27%



The MSME Loan products distribution volume in 2023 was                  Non-Housing Loans – Other Commercial Loans
11,067 units, an increase of 78.27% compared to 2022 which              Company markets Non-Housing Loans in the form of Commercial
was 6,208 units. This increase was mainly due to the increase in        Loans, apart from providing competitive interest and offering
the volume of MSMEs in KUR products by 231.88%.                         excellent service. Company distributes Commercial Loans
                                                                        through several products, namely Working Capital Loans (KMK),
                                                                        Investment Credit and Contractor KMK.


Table of Other Commercial Loans Distribution Value                                                                            (in IDR million)


                                                                                                        Increase/Decrease
           Other Commercial Loans                      2023                  2022
                                                                                                  Nominal              Percentage

 KMK                                                 13,529,919           14,748,648             (1,218,729)                (8.26%)

 Investment Loans                                     9,721,086             5,432,790             4,288,296                 78.93%

 Contractor KMK                                       1,069,715             1,077,825                (8,110)                (0.75%)




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                                                                                       2023 Annual Report




                                                                                                    Increase/Decrease
           Other Commercial Loans                    2023             2022
                                                                                          Nominal                Percentage

 TLF                                                 1,854,000      4,515,000            (2,661,000)                (58.94%)

 Total Other Commercial Loans Distribution Value    26,174,720      25,774,263               400,457                     1.55%



The Other Commercial Loan products distribution value in 2023    which was IDR25.77 trillion. This increase was mainly due to an
was IDR26.17 trillion, an increase of 1.55% compared to 2022     increase in Investment Loan distribution by 78.93%.



Table of Other Commercial Loans Distribution Volume                                                                               (in unit)


                                                                                                    Increase/Decrease
           Other Commercial Loans                    2023             2022
                                                                                          Nominal                Percentage

 KMK                                                  404              436                   (32)                (7.34%)

 Investment Loans                                      64               19                    45                236.84%

 Contractor KMK                                        78               58                    20                 34.48%

 TLF                                                     6               6                      -                 0.00%

 Total Commercial Loans Distribution Volume           552              519                    33                   6.36%



The Other Commercial Credit distribution volume in 2023 was      COMMERCIAL SAVINGS PRODUCT
552 units, an increase of 6.36% compared to 2022 which was       Bank BTN provides financing products and services for the
519 units. This increase was mainly due to an increase in the    Commercial Product segment which include Current Account and
volume of Investment Loan by 236.84%.                            Time Deposit for agencies.



Table of Total Commercial Savings Funds                                                                                  (in IDR million)


                                                                                                    Increase/Decrease
             Commercial Savings                      2023             2022
                                                                                          Nominal                Percentage

 Commercial Current Account                        129,369,288    104,900,918            24,468,370                     23.33%

 Time Deposit for Agencies                         114,313,403    118,992,095            (4,678,692)                    (3.93%)

 Total Commercial Savings Funds                    243,694,432     223,893,013            19,801,419                     8.84%




Total Commercial Savings product funds in 2023 amounted to       which amounted to IDR223.89 trillion. This increase was mainly
IDR243.69 trillion, an increase of 8.84% compared to 2022        due to growth in Commercial Current Accounts of 23.33%.



Table of Total Commercial Savings Account                                                                                   (in account)


                                                                                                    Increase/Decrease
             Commercial Savings                      2023             2022
                                                                                          Nominal                Percentage

 Commercial Current Account                          143,891          57,663                86,228                 149.54%

 Time Deposit for Agencies                            10,881           9,101                 1,780                  19.56%

 Total Commercial Savings Account                    154,772          66,764                 88,008                131.82%




The number of Commercial Savings product accounts in 2023        due to growth originating from Commercial Giro products, was
was 154,772 accounts, an increase of 131.82% compared to         86,228 accounts or an increase of 149.54%
2022 which was 66,764 accounts. This increase was mainly




                                                                     PT Bank Tabungan Negara (Persero) Tbk                     245
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                                    Management Discussion and Analysis
                                    on Bank Performance




Commercial Current Account
Company provides fund saving service through Current Account. i.e, Current Account FLPP and Current Account Non FLPP.


Table of Total Commercial Current Account Funds                                                                              (in IDR million)


                                                                                                        Increase/Decrease
         Commercial Current Account                     2023                  2022
                                                                                                  Nominal              Percentage

 Non FLPP Current Accounts                            75,362,849           62,039,774            13,323,075               21.48%

 FLPP Current Accounts                                54,006,179           42,861,144            11,145,035               26.00%

 Total Commercial Current Account Funds              129,369,028           104,900,918            24,468,110              23.32%




Total Commercial Giro funds in 2022 amounted to IDR129.36                growth in Non FLPP Current Accounts of 21.48% and FLPP
trillion, an increase of 23.32% compared to 2022 which                   Current Accounts of 26.00%.
amounted to IDR104.90 trillion. This increase was caused by


Table of Total Number Commercial Current Account                                                                                (in account)


                                                                                                        Increase/Decrease
         Commercial Current Account                     2023                  2022
                                                                                                  Nominal              Percentage

 Non FLPP Current Accounts                             143,882                57,655                86,227              149.56%

 FLPP Current Accounts                                         9                     8                   1                12.50%

 Total Number Commercial Current Account               143,891                57,663                86,228               149.54%




The number of Commercial Current Accounts in 2023 was                    Time Deposit for Agencies
143,891 accounts, an increase of 149.56% compared to 2022                Company also provides fund savings services in the form of Time
which was 57,663 accounts. This increase was mainly due to               Deposits for Agencies through Time Deposit for Agency products
growth in Non FLPP Current Accounts of 149.56%.                          and On Call Deposits for Agencies.



Table of Total Time Deposit for Agencies Funds                                                                               (in IDR million)


                                                                                                        Increase/Decrease
          Time Deposit for Agencies                     2023                  2022
                                                                                                  Nominal              Percentage

 Time Deposit for Agencies                            109,855,648          118,173,089            (8,317,441)                (7.04%)

 Deposito On Call for Agencies                          4,469,756              819,006             3,650,750                445.75%

 Total Time Deposit for Agencies Funds                114,313,404           118,992,095            (4,678,691)               (3.92%)




Total Institutional Time Deposit funds in 2023 amounted to               to recompose the institution’s fund structure from Deposits to
IDR114.31 trillion or decreased by 3.92% compared to 2022,               Current Accounts to reduce the Cost of Funds (CoF).
which amounted to IDR118.99 trillion. This reduction is in order

Table of Total Number Time Deposit for Agencies Accounts                                                                        (in account)


                                                                                                        Increase/Decrease
          Time Deposit for Agencies                     2023                  2022
                                                                                                  Nominal              Percentage

 Time Deposit for Agencies                              10,674                9,027                 1,647                18.25%

 Deposito On Call for Agencies                             207                   74                   133              179.73%

 Total Number Time Deposit for Agencies Accounts        10,881                 9,101                 1,780               19.56%



246          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                                                     2023 Annual Report




The number of Institutional Time Deposit accounts in 2023 was                                                     diversification strategies to reduce dependence on large
10,881 accounts, an increase of 19.56% compared to 2022                                                           customers (concentration risk).
which was 9,101 accounts. This increase is one of the customer



                                           Conventional Segment Innovations and Competitive Advantages

Overview
Bank BTN occupies the position as the 5th largest bank and has a strong positioning in the housing business.


5.4 Million
Housing Loans                                                                                                                                                                                 ± 3,000
Realized since 1976                                                                                                                                                                           Notaries collaborate
in support of the                                                                                                                                                                             in realizing KPR
One Million Houses
Program




IDR400 T *)                                                                                                                                                                                   ± 2,000
5th Largest Bank in                                                                                                                                                                           New Developers
terms of Asset Size                                                                                                                                                                           created to support the
                                                                                                                                                                                              one million houses
                                                                                                                                                                                              program




± 90%                        83.0 % *)                  5.4 Million                 IDR12.7 T                   ± 7 million               ± 1.8 Million                ± 2,117                ± 7,000
of the credit portfolio      Market Share of            Non-Subsidized KPR          KPR securitization          customers served by       Digital customers            ATM & CRM services     developer partners
is housing loans             Subsidized KPR             Market Share                which has been              Bank BTN                  (Digital Accounts) are       spread throughout      work together to
                                                                                    carried out since 2009                                owned by Bank BTN            Indonesia              develop the country



Source: BTN Bank Internal Data



Bank BTN as a major player in the housing sector since 1976                                                       provision/construction of houses to more than 7000 housing
has realized 5.4 million housing units and controls 83% of the                                                    developers and participates in creating 2000 new developers.
subsidized KPR market share. Apart from that, as a Housing                                                        On the demand side, Bank BTN provides KPR and KPA facilities
Focus Bank, Bank BTN has an important role as an enabler and                                                      to the community who contribute to regional development through
integrator in the development of the housing ecosystem. On the                                                    the development of various public facilities (Fasum) and social
supply side, Bank BTN provides credit and financing for the                                                       facilities (Fasos).




             Capital                                        Labor                                Local Raw Materials                           National Income                                Developer




 The property sector is a capital               An average of 5 people work                     90% of the raw materials                  National Income is in the form of         >7,000 Developers play a role in
        intensive sector                       to build 1 house, so it is a labor             used in house construction are             taxes received by the government                 providing housing
                                                        intensive sector                            domestic products                           for each house sold




                              The property sector contributes directly to GDP growth, followed by a multiplier effect on 174 derivative economic sectors


         Hospital                        Shopping Center                             School                            Retail Industry                             Office                     Transportation




                                                                                    Impact of Housing Sector Development
                                                                                     (in every 1 Indonesia Rupiah of input)




                                                                                                   An increase in the                           Additional property-
                                                  An increase in National
                                                                                                    number of labor                                related labor
                                                  Economic Output 2.15x
                                                                                                 requirements by 0.23x                            income 0.76x




                                                                                                                         PT Bank Tabungan Negara (Persero) Tbk                                             247
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                                  Management Discussion and Analysis
                                  on Bank Performance




As a sector that has a multiplier effect on 174 industrial sub-             f.  Updating the BTN Properti channel by developing digital
sectors, developing the value chain of the housing business is                  marketing capabilities (SEO and SEM), web appearance
also one of the business development strategies that Bank BTN                   (UI/UX), as well as increasing the list of developers.
will carry out. To capture this opportunity, Bank BTN will develop          g. Creating a one-stop-shop customer housing ecosystem
financial products and services that target the expansion of                    for products/services at all stages of the customer life-
the construction business value chain, namely land acquisition,                 cycle.
building materials, land and property development, construction        4.   Increasing Contributions to the Subsidized KPR and Wholesale
services and financing for developers.                                      Funding Programs
                                                                            a. Developing home ownership cooperation through the
Conventional Segment Strategy In 2023                                           TAPERA program.
                                                                            b. Developing Transit Oriented Development (TOD) housing
The strategic steps taken by the Company in 2023 were as                        development in collaboration with BUMN Karya and
follows:                                                                        other developers.
1. Refinement of Branch Operational Model                                   c. Funding cooperation for KPR distribution in the millennial
     Transforming the sales-oriented branch operational model                   and urban segments.
     through centralization of transaction, credit and accounting           d. Funding cooperation for KPR distribution from TAPERA,
     operational functions. Centralization of operational activities            BPJS, or other Pension Fund Management Institutions.
     will be carried out in several stages, namely:                         e. Developing potential sources of funding through support
     a. Carrying out sales programs to increase branch office                   from the Government or other banking regulators.
          productivity through increasing employee capabilities,       5.   Developing a Housing Value Chain Based Business
          monitoring performance in real time, and updating KPIs.           a. Developing and sell products along the value chain of
     b. Improving BTN Smart functions through BTN Smart                         commercial developer partners.
          phase 3 development.                                              b. Determining the sales process and coverage model for
     c. Developing marketing communication programs through                     commercial and MSME credit Relationship Managers
          umbrella campaigns on all Bank BTN channels.                          (RM) to obtain business along the value chain of
2. Developing Partnerships                                                      commercial developer partners.
     a. Forming a venture capital company, as a special vehicle             c. Developing partnerships across the real estate ecosystem
          to develop asset management companies and investment                  to provide beyond-banking services to developers.
          in digital businesses, such as KPR fintech.                  6.   Developing Services to Become a One Stop Solution Banking
     b. Forming a life insurance subsidiary to optimize the                 Service
          captive business (KPR).                                           a. Developing BTN Solutions to increase customer product
     c. Establishment of an Investment Management company                       holding, targeting state-owned corporations, government
          to manage TAPERA funds and develop Real Estate                        agencies, educational institutions and large private
          Investment Funds (DIRE)/Real Estate Investment Trusts                 companies.
          (REITS) and Infrastructure Investment Funds (DINFRA).             b. Developing premium banking services for the emerging
     d. Developing a property buying and selling platform that is               affluent and affluent segments by developing digital and
          integrated with BTN Properti.                                         mobile banking, utilizing data analytics, and improving
3. Increasing Non-Subsidized KPR in the Emerging Affluent and                   Information Technology capabilities that support
     Affluent Segments                                                          transactions.
     a. Launching KPR bundling product with savings (BTN                    c. Cross-sell to KPR customers through the use of data
          Solusi, KPR Tabungan).                                                analytics.
     b. Digitalization of the KPR process, through the development          d. Becoming an operational bank for institutional customers.
          of a tracking portal for customers and developers.                e. Increasing treasury transaction productivity and
     c. Developing mortgage propositions for the millennial,                    developing custodian banks.
          mass and mass affluent segments.                             7.   Developing Transaction Channel Capabilities, Digitalization
     d. Developing collaboration with top developers targeting              and Data Analytics
          housing projects in the emerging affluent and affluent            a. Developing Application Programming Interface (API)
          segments.                                                             management and sandboxing.
     e. Collaboration with 15 national property agents and                  b. Improving the Information Technology infrastructure and
          6,000 individual property agents to increase non-                     functionality of the Cash Management System (CMS)
          subsidized mortgages, especially second mortgages.                    and internet banking to provide competitive CMS and
                                                                                internet banking products for commercial customers.
                                                                            c. Developing a digital banking strategy through the
                                                                                development of mobile and internet banking, virtual
                                                                                branches, digital payments and opening online accounts.




248         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                              2023 Annual Report




    d. Developing analytical data to support business needs as         in several countries slowly being lowered. However, in 2024, the
       well as implementing data governance and developing             economies of developing countries such as Indonesia and India
       big data infrastructure.                                        are expected to continue to grow beyond the levels achieved in
    e. Integration of iLoan consumer, commercial, lead                 2023. Meanwhile, the economies of developed countries such as
       management system and btnproperti.co.id.                        the United States and Japan were expected to grow more slowly
8. Increasing Organizational Productivity, HR Capabilities and         than in 2023. China’s economy in 2024 was also expected to
    Work Culture                                                       slow down. The global economic recovery continued to show
    a. Implementation of a Strategic Business Unit (SBU) based         improvement with the tendency of the Chinese economy to slow
       organizational structure to build a performance-driven          down and the United States economy to strengthen. Inflation
       organization.                                                   rates in developed countries remained high due to continued
    b. Increasing employee productivity through implementing           inflationary pressures on services, tight labor markets and rising
       reward management, promoting Employee Value                     oil prices. These developments encouraged continued high
       Proposition (EVP), improving recruitment processes and          monetary policy interest rates in developed countries, especially
       channels, as well as developing career paths.                   the Federal Funds Rate resulting in increased global financial
    c. Improving training and build hard skill and soft skill          market uncertainty. The IMF’s global economic growth projection
       capabilities in credit units, RM, sales force in branch         for 2023 was corrected to 3.0% and decreased slightly to 2.9%
       offices, as well as support functions (IT, operations,          for 2024.
       risk, and others) with good development planning and
       tracking learning progress digitally.                           In Indonesia, domestic economic growth continued to improve,
9. Continuing Business Process Improvement Initiatives                 supported by improving domestic demand and continued positive
    a. Improving the commercial credit process through                 export performance as the downstreaming of natural resources
       simplification of documentation, standardization and            (SDA) continues. This was reflected in positive growth in consumer
       automation of workflow/financing processes.                     confidence, retail sales, expansion of the Manufacturing
    b. Carrying out initiatives to improve SME financing               Purchasing Managers’ Index (PMI), as well as export realization
       business processes through credit process automation,           which remained positive supported by increased community
       developing SME credit underwriting models.                      mobility and financing distribution by banks. However, BTN
    c. Centralization of the commercial financing process              needed to continue to be aware of several risks, such as global
       through the establishment of a Commercial Banking               inflationary pressures, an increase in the benchmark interest
       Center (CBC).                                                   rate by the Fed, and global financial market uncertainty. The
10. Improving Financing Quality and Accelerating NPL Settlement        IMF estimated that Indonesia’s economic growth in 2023 was
    a. Strengthening the collection management system and              5.0%, slightly hampered by the impact of the global economic
       increasing collection desk productivity for the consumer        slowdown. Meanwhile, in 2024, the Indonesian economy was
       credit segment.                                                 predicted to be stable and remain at the level of 5.0%.
    b. Standardization of restructuring decision-making
       processes for SMEs and commercial.                              Medium and Long Term Prospect
    c. Accelerate the sale of NPL financing through massive
       asset sales by implementing new methods (asset                  Continuing national economic growth until the third quarter of
       sales to investors/financial institutions, debt recovery        2023 has made a positive contribution to the potential of the
       cooperation, litigation efforts and legal action).              property sector in the future, especially in the projected growth
                                                                       of the mortgage business. Apart from economic growth, the
Business Prospects and Conventional Segment                            potential for increasing the KPR business in the future will also
Strategies for 2024                                                    be driven by the realization of the Public Housing Savings KPR
                                                                       program (TAPERA) which has started in 2022.
Short Term Prospect
                                                                       The still low KPR to GDP ratio is also an opportunity that Bank BTN
In 2023, global economic conditions were slightly hampered as          will develop to expand its housing business in the future. In 2019,
a result of political tensions between Russia and Ukraine. This        Indonesia’s mortgage to GDP ratio was 3.0%, still smaller than
caused commodity and energy prices to rise, which caused               other Southeast Asian countries such as the Philippines (3.9%),
inflation which encouraged Central Banks from many countries to        Thailand (23.9%) and Singapore (52.1%). With the commitment
increase their benchmark interest rates to control inflation in each   to sustainability of the Government’s One Million Houses Program
country. Towards the end of 2023, global economic conditions           and the increasing middle income population dominated by the
showed improvement with inflation and benchmark interest rates         millennial generation and emerging affluent segment, Bank BTN




                                                                           PT Bank Tabungan Negara (Persero) Tbk                   249
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                                        Management Discussion and Analysis
                                        on Bank Performance




is also a consideration for expanding its focus in developing the                                       sales of Non-Subsidized KPR by targeting top developers and
housing business in the future, especially in increasing market                                         direct selling KPR to consumers (direct to consumer) through
share in the millennial and emerging affluent segments. To                                              collaboration with national property agents and individuals.
capture this growth potential, next year Bank BTN will increase




                                   Picture of Housing Loan (KPR) Business Development Prospect

 Housing Loan (KPR) to GDP Ratio 2019 (%)                                                                                                          National Housing Loan (KPR) Market by 2019 Segment



        3.0                                                                                                          Direct Buyer            Subsidized KPR
                                                                                                                  Non-Subsidized KPR

        3.1                                                                                                             34%                      28%
                                                        Direct-to-consumer                                                                                                                        Subsidized segment
        3.9                                           (BTN Percentage: 12%)                                                   Non-Subsidized KPR                                                  (BTN portion: 77%)
                                                                                                                               from Developers

        7.7
                                                 •    Attractive pricing for homes
                                                      38% second vs. new home                                                        38%                                                        The Government’s One Million
                                                                                                                                                                                                 Houses Program to close the
                                                      post COVID                                                                                                                                 housing backlog in Indonesia
                                                 •    Large sales channel through 15
       10.1                                           national property agents and
                                                      30 thousand individual agents

       23.9


       27.9



       35.4



       52.1
                                                                                                               Developer (Porsi BTN pada 2019: 24%)
                                                                                          •   Completion of stalled development by large and medium developers.
                                                                                          •   Increase in income levels post-recovery, especially in the top 20 cities, with a shift to
                                                                                              the mass affluent segment




The demographic bonus and growth of the middle class                                                    years) reaching 27.94% and the millennial generation (24 - 39)
population, dominated by the millennial generation, are also                                            at 25.87%. where this portion is predicted to continue to grow
driving the housing finance business going forward. Based                                               for the next 10 years, which is an opportunity to develop the
on data from the Central Statistics Agency (BPS), currently the                                         housing business in the first home buyer segment which is Bank
number of generation Z and the millennial generation dominates                                          BTN’s captive market.
the productive age population with generation Z (aged 8 - 23



                                                 Pricture of Indonesia Population Projection
                                                                                       (in million people)



                                                                                                                                             251                                          251
                                                                                               251
                                                     251
                       251
                                                                                                                                                                                          251
                                                                                                                                             251
                                                                                               251

                                                     251
                       251




                      2010                           2020                                     2030                                         2040                                           2045

                 Middle Class               Others




250           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                          2023 Annual Report




Sharia Segment

Sharia Segment Explanation and Productivity

The company is also developing a banking model that adheres to the sharia system. The Sharia Business Segment provides consumer
and commercial savings and financing products. The product performance of the Sharia Segment is described through 2 (two) products,
namely Sharia Financing and Sharia Savings, with each description as follows:




                                                                SHARIA SEGMENT




                  SHARIA FINANCING
                                                                                             SHARIA SAVING PRODUCT
                      PRODUCT




SHARIA COMMERCIAL               SHARIA CONSUMER                 SHARIA CURRENT                        SHARIA TIME
                                                                                                                                  SHARIA SAVINGS
    FINANCING                      FINANCING                      ACCOUNT                              DEPOSITS


A preview of Sharia Segment performance can be seen in the following table and chart.



                       Graph of Financing and Third Party Fund Performance in Sharia Segment
                                                                   (in IDR trillion)



                   Sharia                                            Sharia                                   Total Value of Sharia Segment
                 Financing                                          Savings                                          Product Positions

               34.77                                                                                                                         41.80
                                                                                                  20.89
                                                                                          19.30                           37.11
       29.18                                                                                                                         34.42
                                                                                                                  31.62
                                                        14.17



                                                 9.10
                                                                             6.75
                                                                    6.01


                         2.44   2.34




                                                                                                                  Total Value        Total Value
                                                 Sharia
       Consumer        Commercial                                     Sharia               Sharia                  of Sharia          of Sharia
                                                 Current
       Financing        Financing                                    Savings               Deposit                 Financing           Savings
                                                 Account
                                                                                                                    Product            Product

         2022                   2023



Sharia Financing Products

Company also provides housing and non-housing financing                         regarding the performance of Company Sharia Financing
facilities under sharia principle, which are divided into two types,            products can be seen in the table and below:
i.e. Consumer and commercial financing. Detailed information




                                                                                       PT Bank Tabungan Negara (Persero) Tbk                         251
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                                     Management Discussion and Analysis
                                     on Bank Performance




Table of Sharia Financing Value Position                                                                                       (in IDR million)


                                                                                                        Increase/Decrease
               Sharia Financing                          2023                  2022
                                                                                                  Nominal             Percentage

 Consumer Financing                                   34,773,107           29,181,003             5,592,104              19.16%

 Commercial Financing                                  2,341,174             2,443,136            (101,962)              (4.17%)

 Total Sharia Financing Value Position                37,114,281            31,624,139            5,490,142              17.36%



The total position of Distribution Value Sharia Financing in 2023         due to an increase in the growth contribution from consumer
was IDR37.11 trillion. This figure is an increase of 17.36%               financing of IDR5.59 trillion, an increase of 19.16% compared
compared to financing distribution in 2022. This increase was             to 2022.

Table of Sharia Financing Volume Position                                                                                   (in financing unit)


                                                                                                        Increase/Decrease
               Sharia Financing                          2023                  2022
                                                                                                  Nominal             Percentage

 Consumer Financing                                     276,508              241,407               35,101               14.54%

 Commercial Financing                                     1,260                1,154                  106                9.19%

 Total Sharia Financing Volume Position                 277,768              242,561                35,207              14.51%




Sharia financing that has been successfully distributed until                   -   KPR SSM Tapak iB
2023 was 277,768 financing units. Compared to the number                        -   KPR SSM Susun iB
of financing units distributed until 2022, there was an increase                -   KPR Tapera iB
of 35,207 units, or around 14.51%. This increase in financing                b. Non Subsidized Housing Loans that distributed through:
volume was largely contributed by an increase in consumer                       -   KPR Platinum iB
financing of 35,101 financing units.                                            -   KPR Indent iB
                                                                             c. Non -Housing Loans that distributed through:
SHARIA CONSUMER FINANCING                                                       -   iB House Construction Financing
Sharia Consumer Financing is distributed by Company through                     -   PUM-KB Jamsostek iB
the following products:                                                   2. Non-Housing Financing, covering:
1. Housing Financing, covering:                                              a. iB Vehicle Financing
     a. Subsidized Housing Loans disbursed through:                          b. iB Mortgage Financing
         -   KPR BP2BT iB                                                    c. iB Multiservice Financing
         -   KPR Sejahtera Tapak iB                                          d. iB Multipurpose Financing
         -   KPR Sejahtera Susun iB                                          e. Emasku Financing

Table of Sharia Consumer Financing Position                                                                                    (in IDR million)


                                                                                                        Increase/Decrease
         Sharia Consumer Financing                       2023                  2022
                                                                                                  Nominal             Percentage

 HOUSING FINANCING                                    34,604,291            29,035,911            5,568,380              19.18%

 SUBSIDIZED HOUSING LOANS                             22,961,992            19,039,362            3,922,630              20.60%

   KPR BP2BT iB                                          581,978              608,342               (26,364)             (4.33%)

   KPR Sejahtera Tapak iB                             14,313,911             9,806,680            4,507,231              45.96%

   KPR Sejahtera Susun iB                                  1,440                  149                 1,291             866.44%

   KPR SSM Tapak iB                                    7,715,628             8,450,095            (734,467)              (8.69%)

   KPR SSM Susun iB                                       48,991               53,491                (4,500)             (8.41%)

   KPR Tapera iB                                         300,044              120,605               179,439             148.78%

 Non Subsidized Housing Loans                         11,604,082             9,948,479            1,655,603              16.64%

   KPR Platinum iB                                     7,743,069             6,992,763              750,306              10.73%




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                                                                                         2023 Annual Report




                                                                                                   Increase/Decrease
         Sharia Consumer Financing                    2023               2022
                                                                                            Nominal             Percentage

   KPR Indent iB                                     3,861,013         2,955,716             905,297               30.63%

 Non-Housing Loans                                      38,217             48,070              (9,853)            (20.50%)

   IB House Construction Financing                      33,330            41,805               (8,475)            (20.27%)

   PUM-KB Jamsostek iB                                   4,887             6,265               (1,378)            (22.00%)

 NON-HOUSING FINANCING                                 168,816            145,092              23,724              16.35%

   IB Vehicle Financing                                  1,400             1,752                 (352)            (20.09%)

   IB Mortgage Financing                                         -           141                 (141)          (100.00%)

   IB Multiservice Financing                            15,940            10,346                5,594              54.07%

   IB Multipurpose Financing                           151,476           132,803               18,673              14.06%

   Emasku Financing                                              -            50                  (50)          (100.00%)

 Total Sharia Consumer Financing Position           34,773,107         29,181,003           5,592,104              19.16%




The total position of Sharia Consumer Financing in 2023 was          by KPR Sejahtera Tapak iB financing which reached IDR14.31
IDR34.77 trillion, an increase of 19.16% compared to 2022 of         trillion.
IDR29.18 trillion. This financing position was largely contributed


Table of Sharia Consumer Financing Volume Position                                                                     (in financing unit)


                                                                                                   Increase/Decrease
         Sharia Consumer Financing                    2023               2022
                                                                                            Nominal             Percentage

 HOUSE FINANCING                                      273,261            238,414              34,847               14.62%

 SUBSIDIZED HOUSING                                   221,749            189,853              31,896               16.80%

   KPR BP2BT iB                                         6,213              6,263                 (50)              (0.80%)

   KPR Sejahtera Tapak iB                             126,742            94,362               32,380               34.31%

   KPR Sejahtera Susun iB                                  10                   2                   8            400.00%

   KPR SSM Tapak iB                                    86,371            88,077               (1,706)              (1.94%)

   KPR SSM Susun iB                                       313               314                    (1)             (0.32%)

   KPR Tapera iB                                        2,100               835                1,265             151.50%

 Non Subsidized Housing Loan                           50,544             47,387                3,157                  6.66%

   KPR Platinum iB                                     38,119            37,051                1,068                   2.88%

   KPR Indent iB                                       12,425            10,336                2,089               20.21%

 Non-Housing Loans                                        968              1,174                (206)             (17.55%)

   IB House Construction Financing                        348               438                  (90)            (20.55%)

   PUM-KB Jamsostek iB                                    620               736                 (116)            (15.76%)

 NON-HOUSING FINANCING                                  3,247              2,993                 254                   8.49%

   IB Vehicle Financing                                    15                17                    (2)           (11.76%)

   IB Mortgage Financing                                     -              159                 (159)           (100.00%)

   IB Multiservice Financing                              294               257                   37               14.40%

   IB Multipurpose Financing                            2,938              2,558                 380               14.86%

   Emasku Financing                                          -                  2                  (2)          (100.00%)

 Total Sharia Consumer Financing Volume
                                                      276,508            241,407              35,101               14.54%
 Position



The volume position of Sharia Consumer Financing in 2023 was         in Consumer Financing volume was 35,101 units due to the
276,508 financing units, an increase of 14.54% compared              contribution of KPR Sejahtera Tapak iB financing volume of
to 2022 which was 241,407 financing units. The increase              32,380 financing units.



                                                                        PT Bank Tabungan Negara (Persero) Tbk                   253
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                                      Management Discussion and Analysis
                                      on Bank Performance




SHARIA COMMERCIAL FINANCING
Sharia Commercial Financing is distributed by the Company                  2. Non-Housing Financing
through several products as follows:                                          a. Sharia MSME
1. Housing Financing                                                          b. Pembiayaan Modal Kerja iB
    a. BTN iB Construction Financing                                          c. Pembiayaan Investasi iB

Table of Sharia Commercial Financing Position                                                                                     (in IDR million)


                                                                                                           Increase/Decrease
        Sharia Commercial Financing                       2023                  2022
                                                                                                     Nominal              Percentage

 Housing Financing                                      1,982,368             1,776,454                205,914                 11.59%

   BTN iB Construction Financing                        1,982,367             1,776,454               205,914                 11.59%

 Non-Housing Financing                                    358,807               666,682               (307,875)              (46.18%)

   UMKM Syariah                                                      0                     -                    -          (100.00%)

   Pembiayaan Modal Kerja iB                              280,771               524,110              (243,339)               (46.43%)

   Pembiayaan Investasi iB                                 78,036               142,572               (64,536)               (45.27%)

 Total Sharia Commercial Financing Position             2,341,174             2,443,136               (101,962)                (4.17%)




Commercial Financing Position in 2023 was IDR2.34 trillion.                However, this decrease was offset by an increase in the financing
This achievement decreased by IDR101.96 billion or 4.17%                   position for the BTN iB Construction Financing product amounting
when compared to 2022. This decrease came from BTN iB                      to IDR205.91 billion.
Working Capital Financing due to repayment of large customers.


Table of Sharia Commercial Financing Volume Position                                                                           (in financing unit)


                                                                                                           Increase/Decrease
        Sharia Commercial Financing                       2023                  2022
                                                                                                     Nominal              Percentage

 Housing Financing                                         1,161                   996                   165                 16.57%

   BTN iB Construction Financing                           1,161                  996                    165                16.57%

 Non-Housing Financing                                        99                   158                   (59)              (37.34%)

   UMKM Syariah                                                  -                     -                    -                        -

   Pembiayaan Modal Kerja iB                                  48                    89                   (41)              (46.07%)

   Pembiayaan Investasi iB                                    51                    69                   (18)              (26.09%)

 Total Sharia Commercial Financing Volume
                                                           1,260                 1,154                   106                  9.19%
 Position


The number of Commercial Financing volume positions in                     Sharia Savings Product
2023 was 1,260 units, an increase of 9.19% compared to
2022 which will be 1,154 units. Increasing the position of                 The Company also collects third-party funds through the Sharia
Commercial financing volume through the BTN iB Construction                Business Unit through Current Account, Savings and Sharia Time
Financing product, which was the focus of Commercial Financing             Deposits products.
distribution in 2023, amounting to 165 financing units.

Table of Sharia Savings Funds Position                                                                                            (in IDR million)


                                                                                                           Increase/Decrease
                  Sharia Savings                          2023                  2022
                                                                                                     Nominal              Percentage

 Sharia Current Account                                 14,165,526             9,104,388             5,061,138               55.59%

 Sharia Savings                                          6,749,835             6,012,830               737,005               12.26%

 Sharia Time Deposits                                   20,887,524           19,523,557              1,363,967                 6.99%

 Total Sharia Savings Fund Position                     41,802,885            34,640,775              7,162,110              20.68%



254          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                           2023 Annual Report




The total position of Sharia Savings funds in 2023 was IDR41.80     nominal increase in the Sharia Current Account by 55.59%.
trillion, an increase of 20.68% compared to 2022 which was          Sharia Savings and Sharia Time Deposits also experienced an
IDR34.64 trillion. This increase was largely influenced by the      increase of 12.26% and 6.99% respectively.



Tabel Posisi Volume Rekening Simpanan Syariah                                                                                 (in account)


                                                                                                     Increase/Decrease
                  Sharia Savings                      2023               2022
                                                                                               Nominal               Percentage

 Sharia Current Account                                61,128             15,295                 45,833                299.66%

 Sharia Savings                                     1,191,847          1,063,346               128,501                  12.08%

 Sharia Time Deposits                                  10,957             11,261                   (304)                (2.70%)

 Total Sharia Savings Account Volume Position       1,263,932          1,089,902                174,030                  15.97%



The total volume of Sharia Savings accounts in 2023 grew by         and Sharia Savings accounts accompanied by a decrease in the
15.97% compared to 2022 to 1,263,932 accounts. The Sharia           volume of Sharia Time Deposits accounts is one of the results of
Current Account product with volume growth of 299.66% was           the strategy to increase retail CASA and TPF.
the largest contributor to the increase in Sharia Savings volume.
The Sharia Savings product also experienced an increase in          SHARIA CURRENT ACCOUNT
account volume, was 128,501 accounts, 12.08% higher than in         Sharia Savings in the form of Giro is provided through 2 (two)
2022. Sharia Time Deposits was the only Sharia Savings Product      products, namely BTN iB Current Account and BTN Prima iB
that experienced a decrease in account volume in 2023, was          Current Account.
2.70 %. The increase in the volume of Sharia Current Accounts


Table of Sharia Current Account Funds Position                                                                             (in IDR million)


                                                                                                     Increase/Decrease
            Sharia Current Account                    2023               2022
                                                                                               Nominal               Percentage

 BTN iB Current Account                             13,439,465          8,623,601              4,815,864                55.85%

 BTN Prima iB Current Account                          726,061            480,787                245,274                51.02%

 Total Sharia Current Account Funds Position        14,165,526          9,104,388               5,061,138               55.59%



The total position of Sharia Current Account funds in 2023 was      compared to 2022, with details of the BTN iB Giro increasing
increased by 55.59% to IDR14.17 trillion compared to 2022           55.85% to IDR13.44 trillion and the BTN Prima iB Giro increasing
which was IDR9.10 trillion. The two Sharia Current Account          51.02% to IDR726 billion.
products both experienced an increase of more than 50%



Table of Sharia Current Account Position                                                                                      (in account)


                                                                                                     Increase/Decrease
            Sharia Current Account                    2023               2022
                                                                                               Nominal               Percentage

 BTN iB Current Account                              59,038             13,363                  45,675                341.80%

 BTN Prima iB Current Account                         2,090               1,932                    158                   8.18%

 Total Sharia Current Account Volume Position        61,128              15,295                 45,833                 299.66%



The number of Sharia Current Account account positions in 2023      mainly contributed by the increase in BTN iB Giro. With an increase
was 61,128 accounts, this figure has increased by 45,833 accounts   of 341.80% compared to 2022, the BTN iB Current Account is a
or a growth of 299.66% compared to 2022. This increase was          current account product with a very significant increase.




                                                                        PT Bank Tabungan Negara (Persero) Tbk                    255
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                                      Management Discussion and Analysis
                                      on Bank Performance




SHARIA SAVINGS
Sharia Savings in the form of savings are provided through                 Savings, BTN Hajj iB Savings, TabunganKu iB, BTN Qurban iB
several products, namely BTN Batara iB Savings, BTN Prima iB               Savings, Simpel BTN iB Savings and BTN iB Gold Savings.



Table of Sharia Savings Fund Position                                                                                            (in IDR million)


                                                                                                           Increase/Decrease
                 Sharia Savings                           2023                  2022
                                                                                                     Nominal              Percentage

 BTN Batara iB Savings                                  1,256,572             1,178,529                 78,043                 6.62%

 BTN Prima iB Savings                                   5,214,570             4,602,504               612,066                13.30%

 BTN Hajj iB Savings                                      245,314               205,866                 39,448               19.16%

 TabunganKu iB                                             13,532                10,451                  3,081               29.48%

 BTN Qurban iB Savings                                      6,092                 4,736                  1,356               28.63%

 Simpel BTN iB Savings                                      6,489                 4,738                  1,751               36.96%

 BTN iB Gold Savings                                        7,266                 6,006                  1,260               20.98%

 Total Sharia Savings Fund Position                     6,749,835             6,012,830                737,005                12.26%


The total position of Sharia Savings funds in 2023 has increased           profitable profit sharing to customers. The increase in BTN Prima
by 12.26%, was IDR6.75 trillion compared to 2022 which was                 iB savings also shows that the performance of the Company’s
IDR6.01 trillion. The biggest contribution to the increase in Sharia       UUS in 2023 will improve and can provide optimal profit sharing
Savings funds was BTN Prima iB Savings which increased by                  to customers, thereby making customers entrust the placement of
IDR612.07 billion. BTN Prima iB Savings is a savings account               more funds to the Company’s UUS.
with a mudharabah (investment) agreement that provides


Table of Sharia Savings Account Volume Position                                                                                     (in account)


                                                                                                           Increase/Decrease
                 Sharia Savings                           2023                  2022
                                                                                                     Nominal              Percentage

 BTN Batara iB Savings                                    701,304               632,423                 68,881               10.89%

 BTN Prima iB Savings                                     153,644               146,374                  7,270                 4.97%

 BTN Hajj iB Savings                                      194,333               170,071                 24,262               14.27%

 TabunganKu iB                                             26,108                20,025                  6,083               30.38%

 BTN Qurban iB Savings                                     23,187                14,867                  8,320               55.96%

 Simpel BTN iB Savings                                     82,873                71,363                 11,510               16.13%

 BTN iB Gold Savings                                       10,398                 8,223                  2,175               26.45%

 Total Sharia Savings Account Volume Position           1,191,847             1,063,346                128,501               12.08%


The total volume of Sharia Savings accounts in 2023 was 1.19               Batara iB Savings which increased by 68.88 thousand accounts.
million accounts, an increase of 12.08% compared to 2022                   This increase was partly due to collaboration with government
which was 1.06 million accounts. The biggest contribution to               institutions for program distribution.
the increase in the number of Sharia Savings accounts was BTN




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SHARIA TIME DEPOSITS
Sharia Savings in the form of deposits is provided through 2 (two) products, namely BTN iB Time Deposits for both individuals and
institutions, as well as iB On Call Deposits.


Table of Sharia Time Deposits Fund Position                                                                                 (in IDR million)


                                                                                                      Increase/Decrease
              Sharia Time Deposits                     2023                2022
                                                                                                Nominal              Percentage

 BTN iB (Individual) Deposits                          1,312,892          1,121,365              191,527                  17.08%

 BTN iB (Institution) Deposits                        18,695,037        18,153,922               541,115                   2.98%

 On Call iB Deposits                                    879,595              24,827              854,768              3,442.90%

 Total Sharia Time Deposits Fund Position             20,887,524         19,523,557             1,363,967                  6.99%




The total position of Sharia Time Deposits funds in 2023 was          increased by 17.08%, 2.98%, and 3,442.90%, respectively.
IDR20.89 trillion, an increase of 6.99% compared to 2022 which        This increase in the position of deposit value was contributed
was IDR19.52 trillion. The number of positions for Individual BTN     by, among other things, special programs provided to depositors
iB Deposits, Institutional BTN iB Deposits, and iB On Call Deposits   such as special ratios.



Table of Sharia Time Deposits AccountVolume Position                                                                           (in account)


                                                                                                      Increase/Decrease
              Sharia Time Deposits                     2023                2022
                                                                                                Nominal              Percentage

 BTN iB (Individual) Deposits                            9,240              9,319                  (79)                 (0.85%)

 BTN iB (Institution) Deposits                           1,662              1,901                 (239)                (12.57%)

 On Call iB Deposits                                        55                 41                   14                  34.15%

 Total Sharia Time Deposits Account Volume Position     10,957             11,261                 (304)                 (2.70%)




The total volume position of Sharia Time Deposits accounts in         3. The excess reserve condition is quite high.
2023 was 10,957 accounts, 2.70% lower than in 2022 which              4. Transformation initiatives (Financing Origination System/
was 11,209 accounts. Althought there has been a decrease                 FOS Collection, Tapera collaboration and Army Compulsory
in the volume of deposit accounts, if we look at the size of the         Housing Savings (TWP AD), digital onboarding and core
deposit position, it was increashed in 2023.                             banking system upgrade).
                                                                      5. Development of sharia rent to own products.
Sharia Segment Innovations and
Competitive Advantages                                                Sharia Segment Strategy in 2023

Some of the competitive advantages and innovations carried out        The sharia segment strategy for 2023 included financing
by the Sharia Segment could be described as follows:                  business development strategy, funding development strategy,
1. Opportunities for captive customers with Housing Loans             capital strategy, financing quality improvement strategy, fee
    (KPR), Construction Financing and Institutional Funds that        based income strategy, Information Technology (IT) infrastructure
    have the opportunity to be developed.                             strategy which is described as follows.
2. Become a partner of the Government in the National Housing
    Program.




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                                    Management Discussion and Analysis
                                    on Bank Performance




a. Financing Business Development Strategy

                      Strategy Theme                                                                     Initiative

    1. Increasing the market share of quality subsidized        a. Optimizing Bank BTN’s portion of the 2023 FLPP KPR and TAPERA KPR quotas targeting
       KPR distribution.                                           the fixed income and ASN segments.
                                                                b. Strengthening communication with housing stakeholders in program preparation.
                                                                c. Socialization and education of FLPP KPR and TAPERA KPR to developer associations.
                                                                d. Host to host development for the distribution of FLPP KPR and Tapera KPR.
                                                                e. Providing rewards and incentives for developers.
                                                                f. H2H development with insurance partners for insurance closing automation.
                                                                g. Development of PRR TAPERA Syariah and PBR TAPERA Syariah to meet the needs of
                                                                   ASN segment customers.
                                                                h. Strengthening the synergy of cooperation with certain rating subsidy developers.

    2. Optimization of KPR/KPA realization from top             a. Providing special marketing fees and rewards.
       developers and collaboration with property agents.       b. Regular/periodic gatherings.
                                                                c. Synergy and join promotions with associations and developers.
                                                                d. Optimization and improvement of the BTN Properti portal to assist developer sales.
                                                                e. Development of the Lead Management System application to facilitate monitoring of
                                                                   marketing activities.

    3. Growing the Business Ecosystem database to               a. Increasing collaboration/partnerships with third parties.
       increase the distribution of Non-Housing Loans           b. Telemarketing existing KPR customers through a financing top up program.
       financing.                                               c. Multi-service and multi-benefit offers to all Bank BTN employees and payroll company
                                                                   employees.

    4. Optimization of existing digital platforms to support    a. Optimizing the use of the BTN Properti portal by collaborating with developers.
       marketing and realization of subsidized mortgages        b. Creating gimmicks and promotional programs for customers who apply for KPR through
       and non-subsidized mortgages.                               BTN Properti.
                                                                c. Implementation of Consumer FOS and upgrading the Eloan application in an effort to
                                                                   accelerate the financing process.

    5. Increasing the commercial financing portfolio            a. Ongoing maintenance of existing developers
       and developing new financing schemes along the           b. Diversify the commercial financing portfolio selectively to SOEs (BUMN), bona fide
       housing value chain for the MSME, corporate and             private business groups and educational institutions.
       agency segments.                                         c. Optimizing partnerships with the Restricted Investment (SRIA) program
                                                                d. Product diversification through supply chain financing products for MSME, corporate
                                                                   and agency customers.

    6. Expanding Sharia Financing          by   developing      a. Expanding the sharia value proposition by utilizing innovative financing solutions (eg:
       innovative financing solutions.                             Ijarah for developers).
                                                                b. Expanding the scope of MMQ contracts from the total Sharia financing book (10%).
                                                                c. Diversify KPR schemes using IMBT contracts



b. Funding Development Strategy

                      Strategy Theme                                                                    Initiative

    1. Reengineering of effective TPF marketing models         a. Developing effective and integrated marketing communications and rebranding through
       and product rebranding.                                    an umbrella campaign.
                                                               b. Merchant and partnership promotions that can reach all of Indonesia.
                                                               c. Organizing events that directly impact business achievements through integrated
                                                                  activities.

    2. Increasing low cost TPF (DPK)                           a. Increasing institutional savings transaction activities through the provision of special
                                                                  programs.
                                                               b. Bundling mortgage financing products with secondary savings.
                                                               c. Sharia Branch Office KPI focus on increasing CASA and Retail TPF.
                                                               d. Improving the composition of retail savings through collaborative intensification of
                                                                  individual customer potential at collaborating institutions.

    3. Become an Operational Bank for institutional            a. Focus on developing current account products for ministries to acquire work units (satker)
       customers                                                  and their partners.
                                                               b. Increase the acquisition of customers from SOEs, SOEs subsidiaries and the private
                                                                  sector.
                                                               c. Increase institutional transactional cooperation through the Cash Management System
                                                                  (CMS).
                                                               d. Sales focus on government customer segmentation, Ministry/Agency Working Units and
                                                                  Public Service Agencies.

    4. Efforts to increase CASA through e-channel              a. Increasing CASA with the development of digital banking and e-banking features
       utilization to support transactions.                    b. Increasing transactions with existing customers targeting captive customers.
                                                               c. Optimizing online account opening services in opening savings accounts.
                                                               d. Utilization of e-channels (New Mobile Banking, CMS, New Virtual Account) to encourage
                                                                  transactional checking and savings accounts.




258         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                              2023 Annual Report




                        Strategy Theme                                                                  Initiative

      5. Development of TPF products to increase customer      a. Development of Gold Savings by providing gold supply services through third party
         fund collection.                                         services.
                                                               b. Development of Tapera savings based on a savings plan scheme for TAPERA participants.



c.   Capital Strategy
     To support the distribution of business development strategies.                  -    Issuance of Sukuk Tapera as a form of long-term funding
     sufficient capital was required by taking into account meeting                        for UUS Bank BTN liquidity.
     the minimum capital requirements according to Basel III.                         -    Optimizing additional capital from the implementation of
     Efforts to strengthen capital in 2023 were focused on:                                the rights issue by BTN Parent in 2022.
     -    Increase in profit/profitability.




d. Financing Quality Improvement Strategy

                        Strategy Theme                                                                  Initiative

      1. Strengthen the collection management system.          a. Strengthening the Collection Management System - Consumer Segment.
                                                               b. Strengthening the Collection Management System - Commercial Segment
                                                               c. Acceleration of completion of main documents and monitoring to accelerate litigation.
                                                               d. Improving the quality of customer data.
                                                               e. Piloting changes to collection business processes at Branch Offices
                                                               f. Implementation of FOS Collection - Consumer Segment

      2. Improve Outsourcing (TAD) management                  a. Evaluation of TAD collection performance
                                                               b. Monitoring productivity of TAD collection

      3. Accelerate the sale of nonperforming financing        a. Sales of non-performing financing assets in bulk.
         assets.                                               b. Expanding non-performing financing sales channels.
                                                               c. Project assets sales to accelerate the recovery of bad debts

      4. Massive Improvement in Quality of Commercial          a. Updating data on NPF and passive commercial financing profiling.
         Financing.                                            b. Classification of NPF and passive loans into 4 (four) quadrants.
                                                               c. Participation in the BTN Project Tiger program.
                                                               d. Coaching and mentoring to Branch Office employees.

      5. Expanding the network to third parties in an effort   Approach the State Property and Auction Services office (KPKNL) and the Religious Courts
         to resolve financing problems.                        and expand cooperation with property agents, BLS, advocates, developer associations and
                                                               contractors.

      6. Expand policy relaxation and reward provision.        Providing policies to expedite the financing settlement process as well as providing rewards
                                                               and operational assistance.



e. Fee Based Income Strategy

                        Strategy Theme                                                                  Initiative

      1. Increase in Bank administration income                a. Increasing the contribution of financing administration costs.
                                                               b. Optimizing the imposition of administration fees for Third Party Funds

      2. Increase in fee/ujroh income for Bank services.       a. Optimization of fees/ujroh on bancassurance.
                                                               b. Increase fees/ujroh for payroll transactions.
                                                               c. Optimization of fees/ujroh for other banking services.

      3. Increase transaction-based fees.                      a. Increase in e-channel users (Mobile Banking, CMS, VA, SMS Notification, ATM).
                                                               b. Development and improvement of e-channel features.
                                                               c. Increase Virtual Account (VA) based partnership collaboration.




f.   Information Technology (IT) Infrastructure Strategy
     IT development at UUS Bank BTN in 2023 will be carried                           The annual theme carried out in the Information Technology
     out by BTN Headquarter in order to support corporate plans                       strategy in 2023 was Expand the Transformation, Bank BTN
     and the aspirations of the Directors’ General Policy for                         continued to execute upgrade/replace and/or enhancement
     2023 in the areas of loans/financing and loans/financing                         of critical systems that had been identified, continuing
     quality, funding and office networks, fee-based income, and                      the development of agile based systems (such as digital
     expenses overheads.                                                              channels). The Information Technology development plans for




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 2023 were broadly in line with the main initiatives of RSTI              conducted a cyber security maturity assessment. Apart
 2021 - 2025 and are as follows:                                          from that, Bank BTN also carried out cyber security
 1. Develop a digital banking strategy by planning and                    testing based on vulnerability and scenario analysis to
     updating through:                                                    increase cyber resilience.
     a. Modernization of digital channels through the
          development of new mobile banking, EKYC for             Business Prospects and Strategy of the Sharia
          Online Onboarding for Open Accounts UUS Bank            Segment for 2024
          BTN and Virtual Accounts.
     b. Development of digital ecosystems and partnerships.       In 2024, Bank BTN’s sharia segment has good business
 2. Automate business processes and improve the quality of        prospects in the future. The sharia segment has taken initiatives in
     Information Technology services. through modernization       developing the financing business in the short and medium term,
     of hardware. software/systems. infrastructure and            namely as follows:
     implementation of high availability on network data          1. Develop an affordable housing ownership program to
     center devices. and use of cloud infrastructure                  support the national housing program.
 3. Developing and optimizing the NG Sharia computer                  a. Optimizing Bank BTN’s UUS portion of the FLPP and
     operational system to support sharia business by                      TAPERA Subsidized KPR quota.
     upgrading the sharia core banking system, updating               b. Developing the Rent to Own KPR scheme as an affordable
     sharia mobile banking and upgrading several system                    and equitable KPR scheme, targeting the millennial
     servers to support better and more reliable bank                      generation.
     operations.                                                      c. Partnership for funding housing projects for the millennial
 4. Conduct assessments to improve security maturity level                 and urban segments.
     in preparing a reliable Information Technology security          d. Developing funding schemes for the provision of
     organization based on CISO implementation and                         affordable housing.
     enhancing security capabilities.                                 e. Development of millennial housing projects at affordable
 5. Adjustment and updating of Information Technology                      prices and complete facilities (working space, walkable/
     policies to regulatory and internal bank policies and                 close to everywhere) through the construction of Transit
     procedures, such as adding rapid/agile and devsecops                  Oriented Development (TOD).
     development procedures and cloud utilization.                    f. Diversifying the mortgage financing portfolio using the
 6. Increase the capacity and capability of the BTN                        Ijarah Muntahiya Bittamlik (IMBT) contract scheme.
     Information Technology team through training and             2. Develop mortgage market share in the emerging affluent and
     certification according to their respective needs.               affluent segments.
 7. Develop monitoring expansion on the network. namely               a. Increasing collaboration with Top Developers (national/
     Traffic Flow and Packet Analyzer to increase the                      gold/platinum scale) and National and local Property
     reliability of the communication network.                             Agents to target the primary and secondary mortgage
 8. Develop Application Performance Monitoring to improve                  markets.
     application performance.                                         b. Developing collaboration with developers to develop
 9. Development of the Sharia Loan Management System in                    housing projects in the emerging affluent segment.
     the form of FOS - enhanced MMQ, FOS Consumer and                 c. Strengthening the BTN Properti application and portal by
     FOS Collection features.                                              digitizing the KPR process end to end, both for customers
 10. Enhancement of Deposits and CIF Monitoring Tools.                     and developers.
 11. Pinpad Improvements.                                             d. Evaluating developer performance by conducting
 12. Improving payment system capabilities such as                         regular ratings so that special gimmicks can be given to
     developing fast payment systems (BI - Fast Phase 2) and               developers with good performance.
     systems to support remittance business, such as host to          e. Optimizing cooperation with developers by offering to
     host incoming transfers.                                              prime customers and Bank BTN cooperation partners.
 13. IT development related to security by design such as             f. Upselling and cross selling programs for non-subsidized
     implementing Identity and Access Management, Security,                products to subsidized KPR customers who have or
     Network Monitoring and Compliance by implementing                     are almost paid off through analytics capabilities and
     end point protection, implementing cyber threat security              upselling programs.
     solutions, integrated patch management. To determine             g. Intensification of high-margin financing, utilizing existing
     the level of information security maturity, Bank BTN also             customer databases




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                                                                                                2023 Annual Report




3. Expanding the real estate value chain targeting MSMEs and                c. Increasing brand awareness of Bank BTN Sharia Business
   Contractors.                                                                 Unit through marketing communications programs.
   a. Offering supply chain financing products to business                  d. Increasing the level of transactional banking through
      actors in the supply chain.                                               developing e-channel features and services, payment
   b. Maximizing the provision of working capital financing                     gateways and collaborating with fintech companies for
      to contractor customers in construction work for                          digital transaction services.
      Construction Financing customers.                                     e. Optimizing digital banking services by opening customer
   c. Creating a one - stop - shop housing ecosystem for                        accounts online without the customer needing to come to
      customers’ life - cycle                                                   the outlet.
4. Expansion of financing product schemes in the KPR and Non-               f. Increasing the role of the Sharia Services Office in
   KPR segments.                                                                Hajj registration services and sales of Hajj and Umrah
   a. Diversifying the mortgage financing portfolio using the                   Savings products.
      IMBT contract scheme.                                                 g. Increasing CASA funds through marketing activities
   b. Expansion of the multi-benefit product scheme through                     including investor gatherings, property expos and
      refinancing financing facilities for assets other than                    individual engagement.
      property with a Musyarakah Mutanaqisah (MMQ)                          h. Improving service to certain customers by providing
      agreement.                                                                special attention services and exclusive facilities to prime
                                                                                customer segmentation.
To achieve this target, strategic initiatives carried out in the short      i. Increasing the number of savers through savings products
and medium term are as follows:                                                 based on the Tapera savings plan scheme.
1. Develop capabilities as a transactional bank and transaction          4. Increase institutional and institutional funding.
    channel.                                                                a. Improving Virtual Account (VA) account features for state
    a. Optimizing the productivity of office networks in target                 ministry/institution accounts.
        market areas (offices, shops and shopping centers).                 b. Commercial         Banking     transactional   development
    b. Increasing sales productivity through the development of                 (Enhancement VA, Bulk Payment and Payroll)
        BTN Smart.                                                          c. Increasing Collaboration with Educational Institutions,
    c. Savings campaign programs and strategies through                         Islamic Institutions, Developers, State Ministries/
        integrated marketing communication activities for the                   Government Agencies to fulfill institutional fund
        middle segment and non-subsidized KPR customers.                        management needs as well as transactional and
    d. Acquisition and sales program for bundling products to                   investment services.
        state-owned corporations, Islamic educational institutions          d. Increasing payment cooperation and digital optimization
        and other institutions.                                                 of zakat, infaq, alms and waqf funds with philanthropic
    e. Program to increase the use of echannel transactions by                  institutions.
        KPR customers.                                                   5. Funding portfolio recomposition.
2. Become an operational bank for managing institutional                    a. Increasing the Volume of Account (VoA) and Number of
    funds.                                                                      Accounts (NoA) of BTN Hajj and Umrah BTN iB Savings
    a. Increasing the acquisition of Government Work Units                      by establishing partnerships with strategic institutional
        (Satker) and interconnection of the State Treasury and                  partners including the Ministry of Religion, BPKH,
        Budget System (SPAN).                                                   Umrah Tour and Travel, Islamic Organizations, Islamic
    b. Increasing the acquisition and utilization of cash                       Campuses, Majlis Taklim , etc.
        management for institutional and corporate customers.               b. Recomposition of deposit portfolio by increasing
    c. Developing a customer base through a halal business                      contribution share from retail deposits.
        ecosystem approach that focuses on the property related,            c. Increasing the level of transactional banking through
        healthcare, trade, education and industrial area sectors.               developing echannel features and services, payment
    d. Developing retail and wholesale transactions through                     gateways and collaborating with fintech companies for
        acquisition and activation programs for mobile banking,                 digital transaction services.
        debit cards, EDC, QRIS and cash management.                         d. Optimizing digital banking services by opening customer
3. Strategy for increasing CASA funds.                                          accounts online without the customer needing to come to
    a. Intensification of savings for existing financing customers              the outlet.
        and collaborating institutions.                                     e. Increasing the role of the Sharia Services Office (KLS) in
    b. Increasing sales productivity through the development of                 Hajj registration services and sales of Hajj and Umrah
        BTN Smart Version 3.                                                    Savings products.




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     f. Increasing CASA funds through marketing activities                             h. Increasing the number of savers through savings products
        including investor gatherings, property expos and                                 based on the Tapera savings plan scheme.
        individual engagement.
     g. Improving service to certain customers by providing
        special attention services and exclusive facilities to prime
        customer segmentation.


Income and Profitability Per Business Segment

A description of the income and profitability of the business segments is presented as follows:


Table of Business Segments Income and Profitability

                                                      2023                                                           2022
          Description
                            Conventional     Sharia          Elimination       Total       Conventional     Sharia          Elimination       Total

 Segment Income              24,722,529      3,558,723                  -    28,281,252     23,233,200     2,674,168                   -    25,907,368


 Segment Expense            (13,406,425)    (1,444,537)                 -   (14,850,962)   (10,036,723)     (873,361)                  -   (10,910,084)


 Segment Income – Net        11,316,104      2,114,186                  -    13,430,290     13,196,477     1,800,807                   -    14,997,284


 Other Operating
                              4,161,842        154,971         (425,666)      3,891,147      2,405,171        78,845          (209,164)      2,274,852
 Income

 Provision for impairment
 losses on financial
                             (3,653,668)     (111,729)                  -    (3,765,397)    (3,414,717)     (602,661)                  -    (4,017,378)
 assets and non-financial
 assets

 Reversal for allowance
 for estimated losses
                                  1,139               -                 -         1,139         (1,074)              -                 -        (1,074)
 from commitment &
 contingencies

 Other operating
                             (7,988,114)    (1,455,002)          425,666     (9,017,450)    (8,704,656)     (943,389)          209,164      (9,438,881)
 expenses

 Income from operations       3,837,303       702,426                   -     4,539,729      3,481,201       333,602                   -     3,814,803

 Non-operating income
                               (159,428)           (91)                 -      (159,519)        60,912           (25)                  -        60,887
 (expenses) - net

 Tax Expense                                                                  (879,222)                                                       (830,617)


 Income for the year                                                          3,500,988                                                      3,045,073


 Total assets               392,854,285     54,288,709        (8,393,258)   438,749,736     364,284,663    45,335,575        (7,471,926)   402,148,312


 Total liabilities and
                            363,082,327     53,581,515        (8,393,258)   408,270,584     338,723,316    44,987,568        (7,471,926)   376,238,958
 temporary syirkah fund




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Table of Business Segments Income and Profitability

                                           Nominal Growth 2022-2023                                  Percentage Growth 2022-2023
       Description
                            Conventional     Sharia       Elimination     Total       Conventional      Sharia       Elimination     Total

 Segment Income               1,489,329       884,555               -    2,373,884         6.41%          33.08%            0.00%      9.16%


 Segment Expense             (3,369,702)     (571,176)              -   (3,940,878)       33.57%          65.40%            0.00%     36.12%


 Segment Income – Net        (1,880,373)      313,379               -   (1,566,994)      (14.25%)         17.40%            0.00%    (10.45%)


 Other Operating
                              1,756,671        76,126       (216,502)    1,616,295        73.04%          96.55%          103.51%     71.05%
 Income

 Provision for impairment
 losses on financial
                               (238,951)      490,932               -     251,981          7.00%         (81.46%)           0.00%     (6.27%)
 assets and non-financial
 assets

 Reversal for allowance
 for estimated losses
                                  2,213               -             -        2,213      (206.05%)          0.00%            0.00%   (206.05%)
 from commitment &
 contingencies

 Other operating
                                716,542      (511,613)       216,502      421,431         (8.23%)         54.23%          103.51%     (4.46%)
 expenses

 Income from operations         356,102       368,824               -     724,926         10.23%         110.56%            0.00%     19.00%

 Non-operating income
                               (220,340)          (66)              -    (220,406)      (361.73%)        264.00%            0.00%   (361.99%)
 (expenses) - net

 Tax Expense                                                               (48,605)                                                    5.85%


 Income For The Year                                                      455,915                                                     14.97%


 Total Assets                28,569,622      8,953,134      (921,332)   36,601,424          7.84%         19.75%           12.33%      9.10%

 Total Liabilities and
 Temporary Syirkah           24,359,011      8,593,947      (921,332)   32,031,626          7.19%         19.10%           12.33%      8.51%
 Fund




Income and Profitability Growth for each Business Segment is as follows:
• Conventional                                                        •           Sharia
    Bank BTN recorded net income from the Conventional                            The company posted Sharia segment net income in 2023
    Segment in 2023 of IDR11.32 trillion, a decrease of 14.25%                    of IDR2.11 trillion, an increase of 17.40% compared to
    compared to 2022 which amounted to IDR13.20 trillion.                         2022 of IDR1.80 trillion. This increase was in line with
    Likewise, operational profit from the conventional segment                    the increase in Operational Profit from the Sharia Segment
    increased 10.32% to IDR3.84 trillion in 2023 compared                         which rose 110.56% to IDR702.43 billion in 2023
    to 2022 which amounted to IDR3.48 trillion. This increase                     compared to 2022 of IDR333.60 billion. This increase in
    in profit is accompanied by an increase in other operating                    profit was accompanied by an increase in other operating
    income in 2023.                                                               income in 2023.




                                                                                  PT Bank Tabungan Negara (Persero) Tbk                 263
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National Strategic Project (PSN)

Information regarding other assignments mandated by the Government to the Company is as follows:


Table of Other Assignment


                                                  Program                                       Government              Total of
 No.         Assignment Basis/Rules                Name           Program Explanation            Mandated            Distribution/
                                                                                               Quota Amount           Realization

       a. Letter from the Ministry of State-     Preparation     Prepare a Roadmap
          Owned Enterprises (KBUMN) No.          of a            for Restructuring/
          S-43/DKU.MBU/10/202 dated              Roadmap         Strengthening Bank BTN
          12 October 2022 concerning             for             Pension Funds
          Technical Instructions/Guidelines      Restructuring
          for Implementing Evaluations of the    BUMN
          Health Level of Employer Pension       PPMP
          Funds for Defined Benefit Pension      Pension
          Programs (PPMP).                       Funds.                                       1                  1

       b. Letter from the Ministry of State-
          Owned Enterprises (KBUMN
          No. S-1/DKU.MBU/01/2023
          dated January 4 2023 regarding
          Submission of Important Information
          Regarding the 2022 Audit and 2023
          RKAP.

       Letter from the Ministry of BUMN          Human           Carrying out an HC
       No.S-104/DSI.MBU/08/2023                  Capital (HC)    Maturity Assessment
       dated 8 August 2023 concerning the        Maturity        for HR Management
       Implementation of Human Capital           Assessment      which will be used as a
       Maturity Assessment for State-Owned                       reference for the Ministry
                                                                                              1                  1
       Enterprises                                               of BUMN in developing
                                                                 BUMN HR management
                                                                 strategies and programs
                                                                 to support the sustainable
                                                                 transformation of BUMN.

       a. Letter from the Coordinating           People          KUR is a working capital
          Ministry for Economic Affairs of       Business        and/or investment credit
          the Republic of Indonesia Deputy       Loan (KUR)      provided by the Bank
          for Macroeconomic and Financial                        to debtors engaged in
          Coordination Number B/KUR/335/                         business fields which
          D.I.M.EKON/12/2022 dated 28                            according to their scale
          December 2022 regarding BTN’s                          have the status of Micro,
          2023 KUR Distribution Ceiling.                         Small and Medium
                                                                                                                 IDR1.80 trillion
       b. Letter from the Coordinating                           Enterprises (MSMEs) in       IDR2.00 trillion
                                                                                                                 realization
          Ministry for Economic Affairs of                       productive and viable
          the Republic of Indonesia Deputy                       business fields but do
          for Macroeconomic and Financial                        not yet have additional
          Coordination Number PK.KUR/199/                        collateral or additional
          D.I.M.EKON/11/2023 dated 3                             collateral. not enough.
          November 2023 regarding BTN’s
          2023 KUR Distribution Ceiling
          Adjustment.




264        PT Bank Tabungan Negara (Persero) Tbk
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                                                                                             2023 Annual Report




                                                  Program                                      Government              Total of
No.         Assignment Basis/Rules                 Name          Program Explanation            Mandated            Distribution/
                                                                                              Quota Amount           Realization

      Cooperation Agreement between the          Distribution   KPR FLPP is a support
      Public Housing Savings Management          of KPR FLPP    for housing financing
      Agency and PT Bank Tabungan Negara         by Bank        liquidity facilities
      (Persero) Tbk concerning Distribution of   BTN            landed houses or flats for
      Funds for Housing Financing Liquidity                     Low Income Communities
      Facilities through Prosperous Home                        (MBR).
      Ownership Credit for Low-Income                                                        126.316 unit         126.316 unit
      Communities.

      a. Cooperation Agreement No. 59/
         PKS/DIR/2022
      b. Cooperation Agreement No. 53/
         PKS/BP-TPR/I/12/2022

      Cooperation Agreement between Badan        Distribution   KPR Tapera is a loan
      Pengelola Tabungan Perumahan Rakyat        of KPR         provided for the
      and PT Bank Tabungan Negara (Persero)      Tapera by      purchase of a first home
      Tbk concerning Distribution of Housing     Bank BTN       specifically for civil
      Financing for Public Housing Savings                      servants participating in
      Participants.                                             Tapera.                      4.000 unit           4.503 unit

      a. Cooperation Agreement No. 61/PKS/
         DIR/2022
      b. Cooperation Agreement No. 15/PKS/
         BP-TPR/IV/12/2022

      Cooperation Agreement between              Distribution   SBUM is a housing
      the Work Unit of the Directorate           of Down        financing facility
      General of Public Works and Housing        Payment        provided by the
      Infrastructure Financing, Ministry of      Assistance     government for low-
      Public Works and Public Housing and        Subsidy by     income people. The
      PT Bank Tabungan Negara (Persero)          Bank BTN       assistance provided is
      Tbk regarding Distribution of Housing                     in the form of fulfilling
      Down Payment Assistance Subsidy to                        part or all of the down      126.316              126.316
      PT Bank Tabungan Negara (Persero)                         payment for the purchase
      Tbk in 2023.                                              of a house.

      a. Cooperation Agreement No. 02/
         PKS/DIR/2023
      b. Cooperation Agreement No. 01/
         PKS/Satker-DJPI/2023




                                                                         PT Bank Tabungan Negara (Persero) Tbk                   265
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                                      Management Discussion and Analysis
                                      on Bank Performance




Financial
Review

The financial review described below refers to the Financial                 the financial position of PT Bank Tabungan Negara (Persero) Tbk
Statements for the year ending 31 December, 2023 presented                   as of December 31, 2023 and the financial performance and
in this Annual Report. The Financial Report has been audited                 cash flows for the year ends on that date in accordance with
by the Purwanto, Sungkoro & Surja Public Accounting Firm and                 Financial Accounting Standards in Indonesia.
received an opinion that it presents fairly, in all material respects,



Financial Performance

Bank BTN’s financial performance consisted of the performance of the Statement of Financial Position, the Statement of Profit and Loss
and Other Comprehensive Income as well as the Cash Flow Statement which was presented as followed.


Statement of Financial Position

Table of Financial Position Report                                                                                                       (in IDR million)


                                                                                                                          Growth
                      Description                             2023                  2022
                                                                                                          IDR                           %

                          (1)                                  (2)                    (3)             (4) = (2)-(3)                (5) = (4)/(3)

 ASSET

 CASH                                                        2,127,489              1,661,533              465,956                      28.04%

 CURRENT ACCOUNTS WITH BANK INDONESIA                       18,145,761             25,416,941           (7,271,180)                    (28.61%)

 CURRENT ACCOUNTS WITH OTHER BANKS

    Third parties                                            1,153,949               963,935              190,014                       19.71%

    Related parties                                          1,049,449               508,322              541,127                     106.45%

                                                             2,203,398             1,472,257              731,141                       49.66%

    Allowance for impairment losses                             (1,804)               (1,747)                   (57)                     3.26%

                                                             2,201,594             1,470,510              731,084                       49.72%

 PLACEMENTS WITH BANK INDONESIA AND OTHER
 BANKS

    Third parties                                           30,561,061            12,975,894           17,585,167                     135.52%

    Related parties                                                  61                     61                        -                  0.00%

                                                            30,561,122            12,975,955           17,585,167                     135.52%

 SECURITIES

    Third parties                                            1,454,768               873,109              581,659                       66.62%

    Related parties                                          3,851,105               850,059            3,001,046                     353.04%

                                                             5,305,873             1,723,168            3,582,705                     207.91%

    Allowance for impairment losses                            (22,903)               (2,399)             (20,504)                    854.69%

                                                             5,282,970             1,720,769            3,562,201                     207.01%

 GOVERNMENT BONDS

    Related parties                                         35,893,929            51,964,973          (16,071,044)                     (30.93%)

 SECURITIES PURCHASED UNDER AGREEMENT TO
 RESELL

    Third parties                                                        -         1,434,190           (1,434,190)                   (100.00%)

    Related parties                                                      -                   -                        -                          -



266           PT Bank Tabungan Negara (Persero) Tbk
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                                                                            2023 Annual Report




                                                                                               Growth
                     Description             2023            2022
                                                                                    IDR                      %

                         (1)                   (2)            (3)              (4) = (2)-(3)            (5) = (4)/(3)

LOANS AND SHARIA FINANCING/RECEIVABLES

  Loans

     Third parties                         268,898,377    247,217,823           21,680,554                    8.77%

     Related parties                        27,685,483     19,439,742            8,245,741                   42.42%

                                           296,583,860    266,657,565           29,926,295                   11.22%

  Allowance for impairment                 (14,191,536)   (14,104,914)             (86,622)                   0.61%

                                           282,392,324    252,552,651           29,839,673                   11.82%

  Sharia financing/receivables

     Third parties                          37,027,078     31,367,082            5,659,996                   18.04%

     Related parties                            87,203        257,057             (169,854)                 (66.08%)

                                            37,114,281     31,624,139            5,490,142                   17.36%

  Allowance for impairment losses           (1,400,428)    (1,570,009)             169,581                  (10.80%)

                                            35,713,853     30,054,130            5,659,723                   18.83%

                                           318,106,177    282,606,781           35,499,396                   12.56%

DERIVATIVE RECEIVABLES

  Third parties                                 32,176        103,939              (71,763)                 (69.04%)

ACCEPTANCES RECEIVABLES

  Third parties                                475,821        289,206              186,615                   64.53%

  Related parties                               68,746        131,356              (62,610)                 (47.66%)

  Allowance for impairment losses              (23,876)             (136)          (23,740)             17.455.88%

                                               520,691        420,426              100,265                   23.85%

PREMISES AND EQUIPMENT

  Cost/Revaluation value                    12,953,746     10,599,848            2,353,898                   22.21%

  Accumulated depreciation                  (4,835,934)    (4,246,045)            (589,889)                  13.89%

                                             8,117,812      6,353,803            1,764,009                   27.76%

INTEREST RECEIVABLES                        11,526,687     10,750,302               776,385                    7.22%

DEFERRED TAX ASSETS - Net                    2,998,282      2,915,428                82,854                    2.84%

OTHER ASSETS                                 3,235,046      2,352,762               882,284                  37.50%

TOTAL ASSETS                               438,749,736    402,148,312            36,601,424                    9.10%

LIABILITIES, TEMPORARY SYIRKAH FUNDS AND
EQUITY
LIABILITIES
LIABILITIES DUE IMMEDIATELY                  3,277,514      3,205,358                72,156                    2.25%

DEPOSITS FROM CUSTOMERS

  Demand deposits

     Third parties                          20,957,283     17,636,481            3,320,802                   18.83%

     Related parties                       108,412,008     87,264,437           21,147,571                   24.23%

                                           129,369,291    104,900,918           24,468,373                   23.33%

  Wadiah demand deposits

     Third parties                           2,402,428      1,783,134              619,294                   34.73%

     Related parties                        11,037,037      6,841,675            4,195,362                   61.32%

                                            13,439,465      8,624,809            4,814,656                   55.82%

                                           142,808,756    113,525,727           29,283,029                   25.79%




                                                          PT Bank Tabungan Negara (Persero) Tbk                    267
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                                   Management Discussion and Analysis
                                   on Bank Performance




                                                                                                            Growth
                     Description                           2023            2022
                                                                                            IDR                           %

                         (1)                                (2)             (3)         (4) = (2)-(3)                (5) = (4)/(3)

  Saving deposits

     Third parties                                       37,029,999      35,656,990       1,373,009                        3.85%

     Related parties                                        692,162        525,339          166,823                       31.76%

                                                         37,722,161      36,182,329       1,539,832                        4.26%

  Wadiah saving deposits

     Third parties                                        1,274,456       1,192,775          81,681                        6.85%

     Related parties                                          2,136               943          1,193                     126.51%

                                                          1,276,592       1,193,718          82,874                        6.94%

                                                         38,998,753      37,376,047       1,622,706                        4.34%

  Time deposits

     Third parties                                       63,976,056      66,808,185     (2,832,129)                       (4.24%)

     Related parties                                     76,717,583      79,389,842     (2,672,259)                       (3.37%)

                                                        140,693,639     146,198,027     (5,504,388)                       (3.77%)

  Total deposits from customers                         322,501,148     297,099,801     25,401,347                         8.55%

DEPOSITS FROM OTHER BANKS

  Third parties                                              91,312        136,408          (45,096)                     (33.06%)

ACCEPTANCES PAYABLE

  Third parties                                             320,522        302,037           18,485                        6.12%

  Related parties                                           224,045        118,525          105,520                       89.03%

                                                            544,567        420,562          124,005                       29.49%

DERIVATIVE PAYABLE

  Third parties                                                    -                -                   -                        -

SECURITIES ISSUED

  Third parties                                           2,403,573       4,297,252     (1,893,679)                      (44.07%)

  Related parties                                         5,868,525       4,355,008       1,513,517                       34.75%

                                                          8,272,098       8,652,260       (380,162)                       (4.39%)

FUND BORROWINGS

  Third parties                                          11,308,799       7,365,320       3,943,479                       53.54%

  Related parties                                        22,453,290      17,455,685       4,997,605                       28.63%

                                                         33,762,089      24,821,005       8,941,084                       36.02%

INTEREST PAYABLE                                            647,496         629,366           18,130                        2.88%

ESTIMATED LOSSES ON COMMITMENTS AND
                                                              3,580           4,719           (1,139)                    (24.14%)
CONTINGENCIES

EMPLOYEE BENEFITS AND OTHER LIABILITIES                   2,951,848       7,248,985      (4,297,137)                     (59.28%)

SUBORDINATED LOAN

  Third parties                                           4,612,840       4,658,242         (45,402)                      (0.97%)

  Related parties                                         4,499,997       4,499,977               20                       0.00%

                                                          9,112,837       9,158,219         (45,382)                      (0.50%)

TOTAL LIABILITIES                                       381,164,489     351,376,683      29,787,806                         8.48%

TEMPORARY SYIRKAH FUNDS

DEPOSITS FROM CUSTOMERS

  Mudharabah current accounts

     Third parties                                          712,587        468,889          243,698                       51.97%




268         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                               2023 Annual Report




                                                                                                                                  Growth
                      Description                                     2023                        2022
                                                                                                                       IDR                      %

                            (1)                                         (2)                        (3)            (4) = (2)-(3)            (5) = (4)/(3)

      Related parties                                                    13,474                     11,897               1,577                  13.26%

                                                                        726,061                    480,786            245,275                   51.02%

   Mudharabah saving deposits

      Third parties                                                   5,331,249                 4,730,686             600,563                   12.70%

      Related parties                                                   141,993                     88,427              53,566                  60.58%

                                                                      5,473,242                 4,819,113             654,129                   13.57%

   Mudharabah time deposits

      Third parties                                                 11,975,188                 11,886,366               88,822                   0.75%

      Related parties                                                 8,908,369                 7,637,191           1,271,178                   16.64%

                                                                    20,883,557                 19,523,557           1,360,000                    6.97%

   Total deposits from customers                                    27,082,860                 24,823,456           2,259,404                    9.10%

DEPOSITS FROM OTHER BANKS

   Mudharabah current accounts

      Third parties                                                        4,154                          56             4,098              7.317.86%

   Mudharabah saving deposits

      Third parties                                                      14,781                     19,674              (4,893)                (24.87%)

   Mudharabah time deposits

      Third parties                                                        4,300                    19,089            (14,789)                 (77.47%)

   Total deposits from other banks                                       23,235                     38,819            (15,584)                 (40.15%)

TOTAL TEMPORARY SYIRKAH FUNDS                                       27,106,095                 24,862,275            2,243,820                    9.02%

EQUITY

Capital stock

Authorized capital

Issued and fully paid capital                                         7,017,222                 5,295,000           1,722,222                   32.53%

Additonal paid-in capital                                             4,418,900                 2,054,454           2,364,446                 115.09%

Capital Deposit Funds                                                            -              2,756,575          (2,756,575)               (100.00%)
Net unrealized loss allowance for and impairmant
losses on securities and goverment at fair value trough                (769,001)               (1,193,252)            424,251                  (35.55%)
other comprehensive income net of deferred tax

Remeasurement of Defined Benefit Plan - net of
                                                                       (560,339)                 (409,657)           (150,682)                  36.78%
deferred tax

Effective portion of the cash flow Hedge                                (32,346)                   (49,301)             16,955                 (34.39%)

Revaluations Surplus of Fixed Assets                                  3,565,773                 3,508,565               57,208                   1.63%

Retain earning*)

   Appropriated                                                     13,181,214                 10,745,157           2,436,057                   22.67%

   Unappropriated                                                     3,657,729                 3,201,813             455,916                   14.24%

TOTAL EQUITY                                                        30,479,152                 25,909,354            4,569,798                  17.64%

TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS
                                                                   438,749,736                402,148,312           36,601,424                    9.10%
AND EQUITY

*) The deficit balance of IDR14,226,290 million was eliminated due to quasi reorganization on May 31, 2007.




                                                                                             PT Bank Tabungan Negara (Persero) Tbk                    269
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                                 Management Discussion and Analysis
                                 on Bank Performance




                                              Graph of Financial Position Report
                                                                (in IDR trillion)


                             438.75
    450.00
                   402.15
    400.00                                               381.16
                                                351.38
    350.00

    300.00

    250.00

    200.00

    150.00

    100.00

                                                                                               27.11           25.91    30.48
     50.00                                                                             24.86

       0.00

                                                                                    TEMPORARY SYIRKAH
                         ASSET                    LIABILITIES                                                     EQUITY
                                                                                         FUNDS

                  2022                2023



Assets                                                                       accordance with the provisions regulated by Bank Indonesia
                                                                             with Rupiah GWM and Foreign Currency and PLM ratios of
Total assets in 2023 was IDR438.75 trillion, an increase of                  5.80% each; 4.00% ; 5.00%.
9.10% compared to 2022 which was IDR402.15 trillion.
This increase was mainly due to placements with Bank                         Current Accounts with Other Banks
Indonesia and other banks, current accounts with other
banks, securities, loan and sharia financing/receivables.                    Current accounts with other banks recorded by Bank BTN
                                                                             reached IDR2.20 trillion with growth of 49.72% in 2023
Cash                                                                         compared to 2022 of IDR1.47 trillion. This increase was
                                                                             mainly influenced by an increase in current accounts with
Bank BTN recorded cash worth IDR2.13 trillion, grew by                       other banks in foreign currency by 111.26% to IDR1.97
28.04% compared to 2022 which reached IDR1.66 trillion.                      trillion in 2023. Reserves for impairment losses amounted to
This increase was mainly influenced by the increase in cash                  IDR1.80 billion in 2023 and IDR1.74 billion in 2022. The
denominated in Rupiah worth IDR2.09 trillion in 2023                         average interest rate -The annual average for this account in
from the previous year’s value of IDR1.65 trillion. Cash                     Rupiah is 0.69%.
(mainly consisting of cash in cash and cash in ATMs) and
cash equivalents include cash, current accounts with Bank                    Placement with Bank Indonesia and Other Banks
Indonesia, current accounts with other banks and other liquid
short-term investments with a maturity period of 3 (three)                   Bank BTN recorded placements with Bank Indonesia and
months or less from the date of acquisition.                                 other banks amounting to IDR30.56 trillion in 2023. This
                                                                             achievement grew 135.52% from the previous year which
Current Accounts with Bank Indonesia                                         reached IDR12.98 trillion. This increase was in line with
                                                                             placements with Bank Indonesia and other banks in foreign
Current accounts with Indonesian banks showed a decrease                     currency from third parties in 2023 amounting to IDR18.41
of 28.61% from IDR25.42 trillion in 2022 to IDR18.16                         trillion and placements with a tenor of ≤ 1 month.
trillion in 2023. The decrease in current accounts with Bank
Indonesia mainly occurred in the Rupiah currency from                        All placements with Indonesian banks and other banks as of
IDR25.19 trillion in 2022 to IDR17,61 trillion in 2023. And                  December 31, 2023 and 2022 was classified as current with
this decrease was caused by a decrease in the GWM Ratio                      an average interest rate for Rupiah of 5.23% and foreign
which must be met from 2022 by 8.10% to 5.80% in 2023.                       currencies of 5.24% in 2023.
On December 31, 2023, Bank BTN has fulfilled the ratio in




270           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                       2023 Annual Report




Securities                                                       On the other hand, the three largest industries receiving Bank
                                                                 BTN credit distribution were housing 85.62%, construction
Net securities owned by the Company increased by 207.91%         4.10%, and business services 3.34%, each of which grew by
to IDR5.28 trillion in 2023 from IDR1.72 trillion in 2022.       22.45%; 4.48% and 53.41% in 2023 to IDR285.69 trillion;
This increase was in line with the increase in securities from   IDR13.67 trillion; and IDR11.14 trillion.
third parties and related parties, respectively 66.62% and
353.04%. There was investments in securities with related        Derivative Receivables
parties amounting to IDR3.85 trillion and IDR850 billion as
of December 31, 2023 and 2022.                                   Derivative receivables in 2023 amounted to IDR32.17 billion,
                                                                 a decrease of 69.04% compared to 2022 which amounted
Government Bonds                                                 to IDR103.94 billion. This decrease was mainly caused by
                                                                 the withdrawal of derivative transactions from various banks.
In contrast to securities, Bank BTN’s ownership of government
bonds decreased by 30.93% from IDR51.96 trillion in 2022         Acceptance Receivables
to IDR35.89 trillion in 2023. This decrease was caused by
securities that had matured.                                     The Company’s acceptance receivables experienced an
                                                                 increase of 23.85% in 2023 to IDR520.69 trillion from
Securities Purchased Under Agreement to Resell                   IDR420.42 billion in 2022. This increase mainly came from
                                                                 an increase in SKBDN transactions from third parties to
In 2022 Bank BTN recorded a receivable for securities            IDR475.82 billion in 2023 from IDR282.05 billion in 2022.
purchased with an agreement to resell amounting to IDR1.43
trillion, and in 2023 Bank BTN recorded a receivable for         Fixed Assets
securities purchased with resale amounting.
                                                                 The company recorded net fixed assets in 2023 of IDR8.12
Loan and Sharia Financing/Receivables                            trillion or grew 27.76% compared to 2022 which reached
                                                                 IDR6.35 trillion. To support smooth operations and Information
The expansion of loans distribution and sharia receivables/      Technology capacity, in 2023 the company will carry out
financing carried out by Bank BTN amidst the momentum of         fixed asset purchasing activities and develop Information
economic improvement was able to boost the growth of this        Technology infrastructure. Some of these include purchasing
account by 12.56% to IDR318.11 trillion in 2023 compared         land for developing office networks, building office buildings,
to 2022 of IDR282.61 trillion. This increase also came from      Mobile Cash Car (MKK), operational support machines and
loans provided and sharia receivables/financing which grew       developing applications/software.
18.83% to IDR35.71 trillion in 2023 from IDR30.05 trillion
in 2022.                                                         Interest Receiveable

Apart from that, growth in credit distribution and sharia        The Receiveable Interest in 2023 was IDR11.53 trillion, an
receivables/financing in 2023 was driven by an increase          increase of 7.22% compared to 2022 which was IDR10.75
in all types of credit and financing. The three types of         trillion. This increase was mainly due to an increase in the
sharia credit and receivables/financing that was the largest     value of interest that would still be received on loans provided
contribution in 2023 are consumption 81.23%, working             by the Company in 2023.
capital 11.38% and investment 4.65%.
                                                                 Deferred Tax Assets - Net
This credit increase mainly came from investment credit
growing 33.39% to IDR15.53 trillion from IDR11.64 trillion,      Bank BTN posted deferred tax assets in 2023 reached
and syndicated credit growing 58.75% to IDR7.15 trillion         IDR2.99 trillion or grew by 2.84% compared to 2022 of
from IDR2.10 trillion. Meanwhile, the increase in people’s       IDR2.92 trillion. This increase was mainly due to temporary
purchasing power is reflected in the increase in consumer        differences between financial and tax reports.
credit which was able to grow by 10.38% to IDR271.08
trillion in 2023 from IDR245.58 trillion the previous year.




                                                                     PT Bank Tabungan Negara (Persero) Tbk                 271
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                               Management Discussion and Analysis
                               on Bank Performance




Other Assets                                                        Securities Issued

Bank BTN posted other assets in 2023 reached IDR3.23                The number of Securities Issued in 2023 was IDR8.27
trillion or grew by 37.50% compared to 2022 of IDR2.35              trillion, a decrease of 4.39% compared to 2022 which was
trillion. The increase in this account was mainly influenced        IDR8.65 trillion. This decrease was mainly due to repayment
by claims (receivables) from customers and other parties from       at maturity of the securities issued, namely Continuous Bonds
IDR1.04 trillion in 2022 to IDR1.87 trillion in 2023.               I Phase II.


Liability                                                           Fund Borrowing

Liabilities in 2023 was IDR381.16 trillion, an increase of          Loans received by Bank BTN reached IDR33.76 trillion, an
8.48% compared to 2022 which was IDR351.38 trillion.                increase of 36.02% compared to 2022 of IDR24.82 trillion.
This increase was mainly due to an increase in the amount           This increase was mainly due to an increase in loans received
of acceptance liabilities, deposits from customers and loans        in rupiah from Bank Central Asia amounting to IDR8.42
received.                                                           trillion from the previous year of IDR4.42 trillion in 2022, as
                                                                    well as loans from PT Sarana Multigriya Finansial (PT SMF)
Liabilities Due Immediately                                         amounting to IDR22.46 trillion which previously IDR17.46
                                                                    trillion in 2022.
Bank BTN recorded Immediate Liabilities in 2023 of IDR3.28
trillion, an increase of 2.25% compared to 2022 of IDR3.21          Interest Payable
trillion. This increase was mainly due to time deposits due
but not collected by customers amounting to IDR90.26 billion        Bank BTN’s accrued interest in 2023 was IDR647.49
compared to 2022 of IDR14.06 billion.                               billion, an increase of 2.88% compared to 2022 which was
                                                                    IDR629.37 billion. This is mainly due to the obligation to
Deposits from Customers                                             pay interest on loans received by the Company which will
                                                                    increase in 2023.
Bank BTN’s customer deposits or third party funds (DPK)
consist of current and wadiah current accounts, wadiah              Estimated Losses on Commitments and Contingencies
savings and deposits, as well as time deposits. Bank BTN’s
total DPK in 2023 increased by 8.55% to IDR322.50 trillion          Bank BTN posted an estimated loss on commitments and
compared to 2022 of IDR297.01 trillion. Of this total DPK,          contingencies of IDR3.58 billion, a decrease of 24.14%
low-cost funding or CASA in 2023 reached 53.73% or the              compared to 2022 of IDR4.72 billion. This decrease
equivalent of IDR188.01 trillion in 2023. In 2022, the CASA         was directly proportional to the Company’s exposure to
ratio reached 48.52% or around IDR156.20 trillion.                  commitments and contingencies in 2023.


Deposits from Other Banks                                           Employee Benefits and Others Liabilities

The Company recorded savings from other banks in the                Bank BTN posted Employee Benefits and Other Liabilities in
form of current accounts, time deposits and interbank               2023 amounting to IDR2.95 trillion, a decrease of 59.28%
call money. Cumulatively, total deposits from other banks           compared to 2022 which amounted to IDR7.25 trillion. This
reached IDR91.31 billion in 2023, a decrease of 33.06%              decrease was caused by developer guarantee fund accounts
from IDR136.41 billion in 2022. This decrease was due to            being migrated to current account products in 2023.
deposits that had matured.
                                                                    Subordinated Loans and Securities
Acceptances Payable
                                                                    Bank BTN’s Subordinated Loans and Subordinated Securities
Bank BTN posted an acceptance liability of IDR544.57                in 2023 amounted to IDR9.11 trillion, a decrease of 0.50%
billion in 2023, grew by 29.49% compared to 2022 of                 compared to 2022 which amounted to IDR9.16 trillion. This
IDR420.56 billion. This increase was in line with the increase      decrease was mainly caused by differences in exchange rates
in Domestic Documented Letters of Credit (SKBDN) compared           for subordinated bonds denominated in foreign currencies.
to the previous year.




272         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                          2023 Annual Report




Temporary Syirkah Funds                                           Additional Paid-In Capital

Temporary Syirkah Funds are receipts and investments              Bank BTN recorded additional paid-in capital in 2023 of IDR4.42
from mudharabah muthlaqah, mudharabah muqayyadah,                 trillion, an increase of 115.09% from 2022 of IDR2.05 trillion. This
musyarakah and other similar accounts. Temporary Syirkah          increase was mainly due to additional paid-in capital resulting from
Funds consist of Mudharabah Savings, Mudharabah                   the HMETD II Public Offering in 2022/2023 amounting to IDR2.41
Deposits and Musyarakah. The amount of Temporary Syirkah          trillion.
funds in 2023 was IDR27.11 trillion, an increase of 9.02%
compared to 2022 which was IDR24.86 trillion. The increase        Net unrealized loss allowance for and impairmant losses
in temporary syirkah funds mainly came from growth in             on securities and goverment at fair value trough other
Mudharabah Time Deposits from related parties.                    comprehensive income net of deferred tax

Deposits from Customers                                           Unrealized Net Gain on Securities and Government Bonds
                                                                  Measured Based on Fair Value through Comprehensive Income, after
Bank BTN customer deposits consist of Mudharabah Giro,            Deferred Tax in 2023 was (IDR769.00) billion, an improvement of
Mudharabah Savings and Mudharabah Time Deposits.                  35.75% compared to 2022 which was (IDR1.12) trillion. This was
The bank recorded customer deposits of IDR27.08 trillion,         due to improvements in the collectability quality of securities and
an increase of 9.10% from 2022 of IDR24.82 trillion. This         government bonds.
increase was due to an increase in Temporary Syirkah
Fund customer deposits in Mudharabah Term Deposit and             Remeasurement of Defined Benefit Plan - Net or Deferred
Mudharabah Savings products.                                      Tax

Deposits from Other Banks                                         The remeasurement of the Defined Benefit Program - after Deferred
                                                                  Tax in 2023 was (IDR560.34) billion, a decrease of 36.78%
Total Deposits from Other Banks in 2023 amounting to              compared to 2022 which was (IDR409.66) billion. This is because
IDR23.24 billion, a decrease of 40.15% compared to 2022           there is an impact on the calculation of the employee benefit
which amounted to IDR38.82 billion. This decrease was due         program (PSAK 24) which will affect the Company’s comprehensive
to a decrease in deposits from other banks with Temporary         expenses in 2023.
Syirkah Funds in Mudharabah Savings and Mudharabah
Term Deposit products.                                            Effective Portion of Cash Flow Hedge

Equity                                                            Effective Portion of Hedging - Cash Flow in 2023 was (IDR32.35)
                                                                  billion, an improvement of 34.39% compared to 2022 which was
Bank BTN was able to record stronger equity in 2023, mainly       (IDR49.30) billion. This is due to an increase in comprehensive profit
supported by better profitability, thereby increasing retained    for the year related to hedging.
earnings for that year. Bank equity reached IDR31.48 trillion,
an increase of 17.64% from 2022 of IDR25.91 trillion. This        Fixed Asset Revaluation Surplus
increase in equity was mainly supported by retained earnings
of IDR16.84 trillion in 2023, growing 20.74% from 2022 of         The Fixed Asset Revaluation Surplus in 2023 was IDR3.57 trillion,
IDR13.95 trillion.                                                an increase of 1.63% from 2022 which was IDR3.51 trillion. This is
                                                                  influenced by the existence of several fixed assets that will undergo
Issued and Fully Paid Capital                                     revaluation in 2023.


Bank BTN recorded Issued and Fully Paid Capital in 2023           Retain Earnings
of IDR7.01 trillion, an increase of 32.53% from 2022 of
IDR5.30 trillion. This increase was due to the addition of Bank   Total Retained Earnings in 2023 was IDR16.84 trillion, an
BTN’s Right Issue in the form of HMETD II in 2022/2023.           increase of 20.74% compared to 2022 which was IDR13.95
                                                                  trillion. This increase was mainly due to income for the year
                                                                  which increased in 2023 to IDR3.50 trillion compared to the
                                                                  previous year’s IDR3.05 trillion.




                                                                      PT Bank Tabungan Negara (Persero) Tbk                      273
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                                      Management Discussion and Analysis
                                      on Bank Performance




Statement of Income and Loss and Other Comprehensive Income

Table of Income Statement and Other Comprehensive Income                                                                 (in IDR million)


                                                                                                          Growth
                      Description                             2023            2022
                                                                                              IDR                       %

                           (1)                                 (2)              (3)       (4) = (2)-(3)            (5) = (4)/(3)

 INCOME AND EXPENSES FROM OPERATIONS

 Interest Income and Income from Profit Sharing

   Interest                                                24,722,529      23,233,200      1,489,329                    6.41%

   Profit Sharing and Margin from Sharia Unit               3,558,723       2,674,168        884,555                   33.08%

 Total Interest Income and Income from Profit Sharing      28,281,252       25,907,368     2,373,884                     9.16%

 Interest, Profit Sharing and Bonus Expenses

   Interest                                               (13,203,108)     (9,866,919)    (3,336,189)                  33.81%

   Other financing expenses                                  (203,317)       (169,804)       (33,513)                  19.74%

   Wadiah Bonus                                               (71,621)        (57,558)       (14,063)                  24.43%

   Third Parties’ Share on Return of Mudharabah            (1,372,916)       (815,803)      (557,113)                  68.29%

 Total Interest, Profit Sharing and Bonus Expenses        (14,850,962)     (10,910,084)   (3,940,878)                  36.12%

 Interest Income and Income from Profit Sharing - Net      13,430,290       14,997,284    (1,566,994)                 (10.45%)

 Other Operating Incomes

   Administration fees and penalties on deposits and
                                                            1,096,346         965,441        130,905                   13.56%
   loans

   Income from recovery of loans written-off                  934,191         431,591        502,600                  116.45%

   Gain (Loss) from the sale of securities - net                6,669        (234,089)       240,758                (102.85%)

   Gain (Loss) on sale of government bonds - net              541,392        (266,235)       807,627                (303.35%)

   Unrealized (loss) gain on changes in fair value of
                                                                1,802         (64,931)        66,733                (102.78%)
   securities - net

   Unrealized (loss) gain on changes in fair value of
                                                               (5,780)         55,045        (60,825)               (110.50%)
   Government Bonds - net

   Others                                                   1,310,747         822,775        487,972                   59.31%

 Total Other Operating Incomes                              3,885,367        1,709,597     2,175,770                  127.27%

 Provision for Impairment Losses on Financial and
                                                           (3,765,397)     (4,017,378)       251,981                   (6.27%)
 Non-financial Assets

 Reversal of (Provision for) Estimated losses on
                                                                1,139           (1,075)         2,214               (205.95%)
 Comitement and Contingies

 Other Operating Expenses

   General and administrative                              (3,884,779)     (3,754,028)      (130,751)                   3.48%

   Employee salaries                                       (3,982,503)     (4,190,298)       207,795                   (4.96%)

   Premium on Government’s guarantee program                 (656,774)       (599,991)       (56,783)                   9.46%

   Others                                                    (487,614)       (329,308)      (158,306)                  48.07%

 Total Other Operating Expenses                            (9,011,670)      (8,873,625)     (138,045)                    1.56%

 INCOME FROM OPERATIONS                                     4,539,729        3,814,803       724,926                   19.00%

 NON-OPERATING INCOME (EXPENSES) - NET                       (159,519)          60,887      (220,406)                (361.99%)




274           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                          2023 Annual Report




                                                                                                                                                 Growth
                      Description                                  2023                               2022
                                                                                                                                    IDR                           %

                            (1)                                     (2)                                (3)                   (4) = (2)-(3)                (5) = (4)/(3)

INCOME BEFORE TAX EXPENSE                                         4,380,210                          3,875,690                      504,520                   13.02%

TAX EXPENSE                                                       (879,222)                          (830,617)                      (48,605)                      5.85%

INCOME FOR THE YEAR                                               3,500,988                          3,045,073                      455,915                   14.97%

OTHER COMPREHENSIVE INCOME:

Items that will not be reclassified to profit or loss

   Fixed Asset Revaluation                                          57,208                            200,574                  (143,366)                     (71.48%)

   Remeasurement of defined benefit plan                          (186,027)                            59,872                  (245,899)                   (410.71%)

   Income tax related to items that will not be
                                                                    35,345                            (11,376)                      46,721                 (410.70%)
   reclassified to profit or loss

Items that may be reclassified to profit or loss

   Efffective part of cash flow hedge                               20,932                            (40,883)                      61,815                 (151.20%)

   Net unrealized (loss) gain on changes in value
   and allowance for impairment losses of securities
                                                                   517,528                      (1,576,967)                    2,094,495                   (132.82%)
   and government bonds classified as fair value
   through other comprehensive income

   Income tax related to items that will be reclassified
                                                                   (97,254)                           307,463                  (404,717)                   (131.63%)
   to profit or loss

Total Comprehensive Incomes (loss) for the year                   3,848,720                          1,983,756                 1,864,964                      94.01%

EARNINGS PER SHARE

   Basic (full amount)                                                    249                                288                          (39)               (13.54%)




                                    Graph of Income Statement and Other Comprehensive Income
                                                                          (in IDR trillion)



     16.00          15.00

     14.00                        13.43

     12.00

     10.00

      8.00

      6.00
                                                                                              4.54
                                                           3.89             3.81                                                                           3.85
      4.00                                                                                                         3.05      3.50

                                                   1.71                                                                                          1.98
      2.00

      0.00

                  INCOME AND                                                                                                                 COMPREHENSIVE
                                             OTHER OPERATING              INCOME FROM                         INCOME FOR THE
                 EXPENSES FROM                                                                                                              INCOMES FOR THE
                                                INCOMES                    OPERATIONS                             YEAR
                   OPERATIONS                                                                                                                    YEAR

                    2022                      2023




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                                  275
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                                  Management Discussion and Analysis
                                  on Bank Performance




Income and Expenses from Operations                                    Reversal of (Provision for) Estimated Losses on
                                                                       Commitment and Contingencies
Interest Income and Income from Profit Sharing - Net
                                                                       The amount of the Estimated Allowance for Impairment Losses on
Total Interest Income and Profit Sharing - Net in 2023 was             Commitments and Contingencies in 2023 was IDR1.14 billion,
IDR13.43 trillion, a decrease of 10.45% from the total Interest        compared to 2022 which experienced a reversal of IDR1.08
Income and Profit Sharing - Net position in 2022 of IDR15.00           billion. The increase in the provision was caused by an increase
trillion. The decrease occurred because the total interest expense,    in the allowance for credit/financing withdrawals or SKBDN LCs
profit sharing and bonuses increased in 2023 which was                 that were not yet due.
caused by an increase in third party rights to mudharabah profit
sharing by 68.29% or IDR1.37 trillion in 2023 compared to the          Other Operating Expenses
position in 2022 of IDR815.80 billion . This was followed by
an increase in interest expenses of 33.81% or IDR13.20 trillion        The Bank posted total other operating expenses in 2023 of
in 2023 compared to the position in 2022 of IDR9.87 trillion.          IDR9.01 trillion, an increase of 1.56% compared to the position
Meanwhile, income from profit sharing and sharia unit margins          in 2022 of IDR8.87 trillion. This increase was mainly due to an
was the largest contribution in 2023 with growth of 33.08% of          increase in other expenses amounting to IDR487.61 billion or
the total profit sharing and sharia margins in 2022.                   48.07% greater than the previous year’s IDR329.31 billion. Other
                                                                       expenses represent compensation for collection services, losses
Interest, Profit Sharing and Bonus Expenses                            from settlement of problem loans, legal risk litigation reserves,
                                                                       and others consisting of representation expenses, meeting meals
Total Interest Expenses and Profit Sharing in 2023 was IDR14.85        and drinks and expenses related to operational needs. Apart
trillion, an increase of 36.12% compared to the position in 2022       from that, the increase in other operational expenses was caused
of IDR10.91 trillion. The increase in interest expenses, profit        by an increase in government guarantee program premiums,
sharing and bonuses was dominated by the increase in third             employee salaries, and general and administrative expenses.
party rights to mudharabah profit sharing by 68.29% with the
position in 2023 amounting to IDR1.37 trillion and the position        Income from Operations
in 2022 amounting to IDR815.80 billion. Apart from that, this
increase was also due to an increase in the number of deposits         The Bank posted an increase in Income from Operations in 2023
from customers and other banks which was the main source of            of 19.00% to IDR4.54 trillion from IDR3.81 trillion in 2022. This
funding for the Bank, so that interest expenses increased by           increase is in line with the increase in interest income and profit
33.81% or IDR13.20 trillion in 2023 compared to the position in        sharing as well as other operating income in 2023 amounted to
2022 of IDR9.87 trillion.                                              IDR28.28 trillion and IDR3.89 trillion, respectively.


Other Operating Incomes                                                Non-Operating Income (Expenses) - Net

The bank posted other operating income in 2023 of IDR3.89              In 2023, Bank BTN recorded non-operating income (expenses)
trillion, an increase of 127.27% compared to 2022 of IDR1.71           - net in 2023 of IDR159.52 billion, in contrast to the previous
trillion. The largest increase came from profits from the sale         year which recorded non-operating - net income of IDR60.89
of government bonds amounting to IDR541.39 billion or an               billion. This was mainly caused by losses from exchange rate
increase of 303.35% from the previous year, it was followed            revaluations, administrative fines, foreign currency buying and
by an increase in the recovery of assets that had been written         selling losses, and environmental development expenses.
off in 2023 amounting to IDR934.19 billion or an increase of
116.45% from 2022 amounting to IDR431.59 billion.                      Income Before Tax Expense

Provision for Impairment Losses on Financial and                       After deducting operational profit from non-operating expenses
Nonfinancial Assets                                                    - net, Bank BTN managed to record a profit before tax in 2023
                                                                       of IDR4.38 trillion, greater than in 2022 of IDR3.88 trillion or an
The amount of Provision for Impairment Losses on Financial             increase of 13.02%. This increase was in line with the increase
Assets and Non-Financial Assets in 2023 was IDR3.77 trillion,          in interest income and profit sharing as well as other operating
6.27% lower or IDR251.98 billion compared to 2022 which                income.
was IDR4.02 trillion. This decrease was supported by better
credit management with the achievement of an NPL (Gross) ratio
of 3.01% in 2023, lower than 2022 of 3.38%.




276         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




Tax Expense                                                              Comprehensive Income for the Year

The total tax burden in 2023 was IDR879.22 billion, an increase          Bank BTN managed to record a comprehensive income for
of 5.85% compared to 2022 which was IDR830.62 billion. The               the year in 2023 of IDR3.85 trillion, an increase of 94.01%
increase in tax burden was due to an increase in profit before tax       compared to 2022 of IDR1.98 trillion. This increase was due to
of IDR504.52 billion from IDR3.88 trillion in 2022 to IDR4.38            unrealized net gains from changes in the value of securities and
trillion in 2023.                                                        government bonds measured at other comprehensive fair value
                                                                         of IDR517.53 in 2023 and a fixed asset revaluation surplus of
Income for the Year                                                      IDR57.21 trillion.


Bank BTN posted a total income for the year in 2023 of IDR3.50           Earnings Per Share
trillion, an increase of IDR455.92 billion or 14.97% compared
to 2022 of IDR3.05 trillion. This increase was in line with the          Total Basic Profit Per Share in 2023 was IDR249, a decrease of
increase in interest income and profit sharing as well as other          13.54% compared to 2022 which was IDR288. This increase
operating income.                                                        was influenced by an increase in earnings per share which
                                                                         was the result of the corporate strategy of improving business
Other Comprehensive Incomes                                              quality and developing business into new areas, encouraging
                                                                         the Company to increase net profit which had an impact on
Other comprehensive income in 2023 was IDR347.73 billion,                increasing earnings per share.
an increase compared to 2022 which was (IDR1.06) trillion.
This was influenced by unrealized net gains from changes in the
value of securities and government bonds measured at fair value
through other comprehensive.




Statement of Cash Flows

Table of Statement of Cash Flows                                                                                                  (in IDR million)


                                                                                                                   Growth
                      Description                         2023                  2022
                                                                                                       IDR                       %

                           (1)                             (2)                    (3)              (4) = (2)-(3)            (5) = (4)/(3)

 CASH FLOWS FROM OPERATING ACTIVITIES

 Interest, profit sharing and margin                     27,618,186            24,331,326             3,286,860                   13.51%

 Recoveries from loan written-off                         1,011,258               503,307               507,951                 100.92%

 Interest and bonus, fees and commissions paid          (14,892,249)          (10,775,222)          (4,117,027)                   38.21%

 Corporate income tax paid                               (1,020,952)           (1,001,324)              (19,628)                     1.96%

 Receipt of tax assessment letter                                    -            402,428

 Other operating expenses - net                          (5,790,828)           (6,896,183)            1,105,355                 (16.03%)

 Other non-operating expenses - net                         (54,382)               13,828               (68,210)               (493.27%)

 Cash receipts before changes in operating assets and
                                                          6,871,033              6,578,160              292,873                      4.45%
 liabilities

 Changes in operating assets and liabilities

 Decrease (increase) in operating assets:

   Placement from other banks                                        -                    -                        -                        -

   Fair value through profit or loss securities            (246,380)             (104,885)            (141,495)                 134.90%

   Fair value through profit or loss government bonds    15,788,979            (4,955,939)          20,744,918                 (418.59%)

   Acceptance receivable                                   (124,005)               33,578             (157,583)                (469.30%)

   Loans and sharia financing/receivables               (38,484,306)          (26,318,471)         (12,165,835)                   46.23%

   Other assets                                            (785,307)             (196,503)            (588,804)                 299.64%




                                                                             PT Bank Tabungan Negara (Persero) Tbk                       277
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                                       Management Discussion and Analysis
                                       on Bank Performance




                                                                                                             Growth
                         Description                           2023            2022
                                                                                                 IDR                       %

                             (1)                                (2)              (3)         (4) = (2)-(3)            (5) = (4)/(3)

Increase (decrease) in operating liabilities:

   Current liabilities                                            74,415        (466,852)         541,267                (115.94%)

   Deposits from customer

      Demand deposits                                         24,468,372      31,538,044       (7,069,672)                 (22.42%)

      Wadiah demand deposits                                   4,814,656       3,268,857        1,545,799                   47.29%

      Savings deposits                                         1,539,832     (10,617,072)      12,156,904                (114.50%)

      Savings deposits Wadiah                                     82,875          43,479           39,396                   90.61%

      Time deposits                                           (5,504,388)       (322,562)      (5,181,826)               1606.46%

   Deposits from other banks                                     (45,095)         70,400         (115,495)               (164.06%)

   Acceptance liabilities                                        124,005         (33,578)         157,583                (469.30%)

   Other liabilities                                          (4,184,154)        654,214       (4,838,368)               (739.57%)

   Temporary syirkah funds                                     2,243,821       2,094,203          149,618                      7.14%

Net Cash provided by Operating Activities                      6,634,353        1,265,073        5,369,280                 424.42%

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from matured amortized cost securities               (2,868,515)        199,964       (3,068,479)             (1,534.52%)

Receipt at maturity of held-to-maturity securities                      -                -                   -                        -

Acquisitions of premises and equipment                        (2,313,490)     (1,042,464)      (1,271,026)                121.93%

Decrease in fair value through other comprehensive
                                                              (1,247,159)        381,580       (1,628,739)               (426.84%)
income

Decrease (increase) in securities & government
bonds fair value through other comprehensive                   2,211,325       5,714,402       (3,503,077)                (61.30%)
income

Purchase of amortized cost government bonds                   (1,655,566)     (7,816,426)       6,160,860                 (78.82%)

Purchase of amortized cost securities                                   -                -                   -                        -

Proceed from securities purchased under agreement
                                                              45,031,457     165,683,898     (120,652,441)                (72.82%)
to resell

Purchase of securities purchased under agreement
                                                             (43,597,267)   (165,520,488)                    -                        -
to resell

(Increase) Decrease securities available for sale                       -                -                   -                        -

Purchase of held-to-maturity government bonds                           -                -                   -                        -

Purchase of held-to-maturity securities                                 -                -                   -                        -

Net Cash Provided by (Used in) Investing Activities           (4,439,215)      (2,399,534)      (2,039,681)                 85.00%

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of securities                           2,449,019       1,541,330          907,689                   58.89%

Payment of matured securities issued                          (2,769,764)     (5,263,000)       2,493,236                 (47.37%)

Receipt of securities sold under agreement to
                                                              67,691,353         592,326       67,099,027              11,328.06%
repurchase

Payments of matured securities sold under
                                                             (67,691,353)       (592,326)     (67,099,027)             11,328.06%
repurchase agreements

Exercising employee stock options                                       -                -                   -

Dividend payments                                               (609,015)       (237,624)        (371,391)                156.29%

Proceeds from fund borrowings                                 11,185,162      11,814,826         (629,664)                  (5.33%)

Payment of fund borrowings                                    (2,187,576)     (9,095,884)       6,908,308                 (75.95%)




278           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                              2023 Annual Report




                                                                                                                                 Growth
                      Description                            2023                                2022
                                                                                                                      IDR                        %

                           (1)                                (2)                                 (3)            (4) = (2)-(3)              (5) = (4)/(3)

 Acceptance of subordination effects                                      -                              -                       -                          -

 Payment of lease liabilities                                  (81,973)                           (84,983)               3,010                    (3.54%)

 Payments of matured Subordinated Loan and
                                                                          -                              -                       -                          -
 Securities

 Capital Deposit Fund                                        1,330,093                           2,756,575         (1,426,482)                   (51.75%)

 Net Cash (Used in) Provided by Financing Activities         9,315,946                           1,431,240           7,884,706                   550.90%

 NET INCREASE IN CASH AND CASH EQUIVALENTS

 CASH AND CASH EQUIVALENTS AT BEGINNING OF
                                                            11,511,084                             296,779          11,214,305                 3,778.67%
 YEAR

 CASH AND CASH EQUIVALENTS AT END OF YEAR                   41,526,686                       41,229,907                296,779                       0.72%

 CASH FLOWS FROM OPERATING ACTIVITIES                       53,037,770                       41,526,686             11,511,084                    27.72%




                                                       Graph of Cash Flow Statement
                                                                    (in IDR trillion)


                                                                                                                                     9.32

       9.00

       8.00
                                        6.63
       6.00

       4.00

       2.00                     1.27                                                                                  1.43

       0.00

      (2.00)

      (4.00)                                                        (2.40)
                                                                                        (4.44)
      (6.00)

      (8.00)

      (9.00)




                         CASH FLOWS FROM                  NET CASH PROVIDED BY (USED IN)                     NET CASH PROVIDED BY (USED IN)
                        OPERATING ACTIVITIES                   INVESTING ACTIVITIES                               FINANCING ACTIVITIES


                    2022                   2023



Cash Flows from Operating Activities                                             The increase in Net Cash for investment activities from 2022
                                                                                 was influenced by (purchase) receipts at maturity from securities
Bank BTN recorded Net Cash obtained from operational                             measured at amortized cost, acquisition of fixed assets, and
activities of IDR6.63 trillion in 2023, an increase of 424.42%                   (purchase) receipt at maturity of amortized securities expences.
compared to 2022 which reached IDR1.26 trillion. This higher
achievement was mainly influenced by the increase in cash flow                   Cash Flows from Financing Activities
from Government bonds for fair value through the profit and
loss statement and the increase in cash flow from term deposit                   Bank BTN recorded Net Cash obtained from funding activities
operating liabilities.                                                           of ID9.32 trillion in 2023, an increase of 550.90% compared
                                                                                 to 2022 which reached IDR1.43 trillion. The increase in net
Cash Flows from Investing Activities                                             cash from funding activities was influenced by an increase in
                                                                                 receipts from securities issued.
The company recorded Net Cash for investment activities of
(IDR4.44 trillion) in 2023, and in 2022 it was (IDR2.40 trillion).



                                                                                         PT Bank Tabungan Negara (Persero) Tbk                          279
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                                    Management Discussion and Analysis
                                    on Bank Performance




Ability to Pay Debt and Collectability of Accounts Receivable

Ability to Pay Debt

The ability to pay debts was reflected in the Bank’s liquidity            Bank BTN’s ability to pay its liabilities or debt can be measured
and solvency. With regard to issued bonds, the ability to pay             by using the liquidity ratio, solvency and profitability ratios.
debt was reflected in the smooth payment of interest and the              These ratios become the parameters in calculating the Bank
rating of the securities issued. In addition, the Company has a           BTN’s ability to allocate liquidity reserves
policy regarding the fulfillment of creditors’ rights which is used as
a guideline in making loans to creditors. The aim of the policy in        Ability to Pay Short-Term Debt (Bank Liquidity)
question is to ensure the fulfillment of rights and maintain creditors’
trust in Public Companies. This policy includes considerations in         One way to know the ability to pay short-term debt is through
entering into agreements, as well as follow-up actions in fulfilling      the liquidity ratio. Bank BTN used several liquidity parameters,
the Public Company’s obligations to creditors. The basic creditor         namely the Macroprudential Liquidity Buffer Ratio (PLM) and
rights policy includes, among other things, receiving principal           Minimum Statutory Reserves (GWM), Loan to Deposit Ratio (LDR)
repayment and interest payments at the agreed time, obtaining the         and Macroprudential Intermediation Ratio (RIM).
right to fines for late repayment of principal and interest payments
as well as requesting information, information and documents as
well as examining the Company’s books. For 2023, there are 2
(two) Company creditors, namely bilateral loan creditors and bond
creditors.



Macroprudential Liquidity Buffer Ratio (PLM) and Minimum Reserve Requirements (GWM)

One of the main parameters in the liquidity ratio was the                 PADG/2019 concerning Macroprudential Intermediation
fulfillment of the Statutory Reserves (GWM). Bank BTN                     Ratios and Macroprudential Liquidity Support for Conventional
maintained the Primary GWM and Secondary GWM which in                     Commercial Banks, Sharia Commercial Banks and Sharia
2018 had turned into a Macroprudential Liquidity Buffer (PLM).            Business Units and Regulations Bank Indonesia (PBI) Number
PLM became a minimum liquidity reserve in rupiah that had to              22/17/PBI/2020 Regarding the Second Amendment to Bank
be maintained by Commercial Banks in the form of securities               Indonesia Regulation Number 20/4/ PBI/2018 concerning
that met the requirements. This was based on PADG Number                  Macroprudential Intermediation Ratios and Macroprudential
22/11/PADG/2020 Regarding Amendments to the Regulation                    Liquidity Support for Conventional Commercial Banks, Sharia
of Members of the Board of Governors Number 21/22/                        Commercial Banks and Sharia Business Units.


Table of PLM and GWM Ratio                                                                                                             (in %)


            Category                              Currency                    2023                 2022             Increase/Decrease

                                     IDR:

                                        Primary (GWM)                          6.04                 8.28                  (2.24)
 Conventional
                                        PLM                                    9.66               16.17                   (6.51)

                                     US Dolllar                                4.40                 4.13                    0.27

 Sharia                              IDR                                       6.10                 7.76                  (1.66)



The conventional GWM ratio in rupiah currency in 2023 was                 Indonesia of 2.5%, so the obligation to fulfill the minimum Sharia
6.04%, a decrease of 2.24% compared to 2022 reached                       GWM is 5.0%. Meanwhile, the GWM that must be maintained
8.28%. The decrease in the GWM ratio was due to changes in                by Conventional Commercial Banks is 9%. The Company can
GWM fulfillment made by the regulator, based on PADG Number               achieve its priority sector credit growth target, the Company
24/8 /PADG/2022 concerning Implementation Regulations                     received a GWM incentive from Bank Indonesia of 3.2%, so the
for Fulfilling Mandatory Minimum Reserves in Rupiah and                   obligation to fulfill the minimum GWM is 5.8%.
Foreign Currency for Conventional Commercial Banks, Sharia
Commercial Banks and Sharia Business Units. The minimum                   Likewise, the PLM ratio decreased by 6.51% to 9.66% in 2023.
statutory reserve requirement for UUS based on the provisions             This was influenced by the reduction in the position of securities
is 7.5%, the Company received a GWM incentive from Bank                   included in the securities category which was taken into account




280          PT Bank Tabungan Negara (Persero) Tbk
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in the PLM provisions. Meanwhile, the increase in the foreign        Loan To Deposit Ratio (LDR)
exchange GWM position was carried out to optimize excess
foreign currency liquidity in order to increase income while still   LDR is one of the parameters to measure a healthy liquidity ratio.
paying attention to applicable regulations, thereby increasing       This ratio is the ratio between the amount of loans extended to third
the foreign exchange GWM by 0.27% from 4.13% in 2022 to              parties to third party funds (customer deposits). The Company’s
4.40% in 2023.                                                       LDR in 2023 was 95.36%, an increase of 2.71% compared to
                                                                     2022 which was 92.65%. This is due to an increase in credit
Macroprudential Intermediation Ratio (RIM)                           distribution compared to 2022.


RIM was a form of strengthening of the Loan to Funding Ratio         Ability to Pay Long-Term Debt (Bank Solvability)
(LFR). RIM was the ratio of loans extended to third parties in
Rupiah and foreign currencies, excluding loans to other banks        The capital ratio was one of the parameters used in measuring
plus securities owned, to:                                           the solvency ratio. In accordance with its commitment to run the
1. Third party funds which included current accounts, savings        banking business with prudent principles and in accordance
    and time deposits in Rupiah and foreign currencies, did not      with applicable regulations, Bank BTN ensured that the Capital
    include interbank funds.                                         Adequacy Ratio (CAR) was able to meet credit risk, market risk
2. Securities in Rupiah and foreign currencies that met certain      and operational risk.
    requirements issued by Bank BTN.
                                                                     In accordance with Bank Indonesia (BI) regulations, the
In accordance with Bank Indonesia Regulation (PBI) Number            Minimum Capital Requirement (KPMM)/CAR set for banks
20/4/ PBI/2018 dated 29 March 2018, concerning                       with a risk profile of “2” is 9.18%. The amount of capital for
“Macroprudential Intermediation Ratio and Macroprudential            credit risk consists of Core Capital (Tier I) and Supplementary
Liquidity Buffer for Conventional Commercial Banks, Sharia           Capital (Tier II).
Commercial Banks and Sharia Business Units” as amended by
PBI Number 21 /12/PBI/2019 dated 25 November 2019,                   The Company’s total capital in 2023 reached IDR31.23 trillion
PBI Number 22/17/PBI/2020 dated 30 September 2020,                   consisting of core and supplementary capital of IDR27.15 trillion
and PBI Number 24/16/PBI/2022 dated 1 November 2022.                 and IDR4.07 trillion respectively, while for 2022 the total capital
Banks must maintain a RIM ratio of 84% to 94 %. In 2023, the         will be IDR28.17 trillion with core and supplementary capital
Company’s RIM is 92.60%, an increase compared to 2022                respectively worth IDR22.53 trillion and IDR5.64 trillion. The
which was 85.76%.                                                    Company’s RWA in 2023 was IDR155.27 trillion, higher than in
                                                                     2022 of IDR139.63 trillion. The CAR ratio in 2023 was 20.07%
The Company also manages liquidity reserves in the form of           lower than the CAR ratio in 2022 of 20.17%.
High Quality Liquid Assets (HQLA) which was also a liquidity
component, which was determined at an optimal amount in the          Ability to Pay Debt of Securities Issued
range above the minimum HQLA limit every day to support the
Company’s liquidity needs and maintenance of GWM and PLM             The ability to pay debt could also be reflected based on the rating
as determined by Bank Indonesia . The Company’s secondary            of the securities issued by the Bank, namely bonds. Securities
reserve position is always maintained above the minimum              issued regularly were assessed by a rating agency to support
secondary reserve limit throughout 2023.                             the eligibility of securities. The quality of securities was largely
                                                                     determined by the ability of the securities issuing company to pay
                                                                     its securities at maturity and its ability to pay interest or coupons
                                                                     during the term of the securities issuance.

Table of Ability to Pay Debt from Securities Issued

                                                                                                     Rating
                                 Information
                                                                                    2023                              2022

 Sustainable BBTN I Phase II 2013                                                  AA+(idn)                          AA(idn)

 Sustainable BBTN II Phase I 2015 Series D                                         AA+(idn)                          AA(idn)

 Sustainable BBTN III Phase I 2017 series C                                        AA+(idn)                          AA(idn)




                                                                         PT Bank Tabungan Negara (Persero) Tbk                      281
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                                        Management Discussion and Analysis
                                        on Bank Performance




                                                                                                                         Rating
                                     Information
                                                                                                       2023                                 2022

 Sustainable BBTN III Phase I 2017 series D                                                           AA+(idn)                              AA(idn)

 Sustainable BBTN III Phase II 2019 series C                                                            Ba3                                  Ba3

 Junior Global Bond Bank BTN (USD)                                                                    AA+(idn)                              AA(idn)

 Sustainable BBTN IV Phase I 2020 series B                                                            AA+(idn)                              AA(idn)

 Sustainable BBTN IV Phase I 2020 series C                                                            AA+(idn)                              AA(idn)

Notes:
- Domestic securities ratings that was outstanding in 2023 use ratings from Fitch
- Domestic securities ratings issued and outstanding in 2023 use ratings from Fitch
- The Bank BTN (USD) Junior Global Bond Rating issued in 2020 uses a rating from Moody’s




Table of Security Rank Meaning

          Rating Agency                       Rating                                                Meaning of Rank

                                                             Issuers rated Ba have speculative, or independent, intrinsic financial strength and are subject to
 Moodys                                 Ba3
                                                             substantial credit risk in the absence of possible support from affiliates or the Government.

                                                             AA National Ratings indicate a very low level of expected default risk compared to other issuers
                                                             or bonds in the same country or monetary union. The inherent risk of default is only slightly
                                                             different from that of the highest-rated issuer or bond in the country.
 Fitch Ratings Indonesia                AA
                                                             The plus sign (+) indicates that the rating given is relatively strong and above the average for the
                                                             category concerned


Other Financial Ratios

To measure the profitability and efficiency of the Bank BTN’s                          or Return On Equity (ROE), Net Interest Margin (NIM) and the
performance, financial ratios used by banking were Profit before                       ratio of Operating Expenses to Operating Income (OEOI).
tax to Assets or Return On Assets (ROA), Profit after tax to Equity

Table of Other Financial Ratio                                                                                                                               (in %)


                             Description                                             2023                         2022                 Increase/ (Decrease)

 Return On Assets (ROA)                                                             1.07%                          1.02%                         0.05%

 Return On Equity (ROE)                                                            13.86%                        16.42%                         (2.56%)

 Net Interest Margin (NIM)                                                          3.75%                          4.40%                        (0.65%)

 Operating Expenses to Operating Income (OEOI)                                     86.10%                        86.00%                          0.10%


In 2023, the ROA, ROE and NIM values were 1.07%, 13.86%                                which ultimately contributed to an increase in net profit in 2023
and 3.75% respectively, indicating a slight decrease compared                          amounted to IDR3.50 trillion, an increase of 14.97% from 2022.
to 2022. This is mainly due to an increase in the percentage of
cost of funds or expenses interest on the Company’s third party                        The BOPO value in 2023 can be maintained at 86.10%, the
funds in the midst of tight banking liquidity conditions and the                       same as the position in 2022, even though there is an increase in
rights issue which was carried out at the end of 2022, however                         deposit interest expenses, but the Company can make efficiency
the Company was still able to disburse credit massively and also                       in overhead costs so that it can keep the BOPO ratio stable at
the income received apart from interest increased significantly                        ±86%.




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Receivable Collectibility

Bank BTN’s collectibility is reflected from the Non-Performing Loan       problem loans or loss out of all loans distributed to customers. The
(NPL) ratio. NPL ratio is a benchmark to assess the amount of             smaller the NPL ratio, the better the collectibility and loan quality.


Table of Collectability                                                                                                             (in IDR million)


                                                   2023                                                        2022
         Description
                            Minus Sharia Segment          Plus Sharia Segment         Minus Sharia Segment             Plus Sharia Segment

 Total Loans/Financing            296,583,860                  333,698,141                   266,657,565                    298,281,704

 Performing Loan (PL)             287,420,712                  323,649,241                   257,633,126                    288,211,404

 Current                          263,614,334                  297,250,597                  239,577,162                    268,076,929

 Special Mention                    23,806,378                  26,398,644                    18,055,964                    20,134,475

 Non Performing Loan
                                     9,163,148                  10,048,900                      9,024,439                    10,070,300
 (NPL)

 Substandard                           393,326                        571,273                    433,219                       580,216

 Doubtful                              538,432                        677,813                    793,609                       887,982

 Loss                                8,231,390                   8,799,814                     7,797,611                     8,602,102



 PL                                    96.91%                         96.99%                      96.62%                        96.62%

 NPL Gross                               3.09%                         3.01%                       3.38%                          3.38%

 NPL Net                                 1.48%                         1.32%                       1.48%                          1.32%



Gross NPL with the sharia segment in 2023 was 3.01%, an improvement of 0.37% compared to 2022 which was 3.38%. This condition
was caused by an increase in loan distribution and improvement in loan quality from NPL to PL.


Tabel of Credit Written-Off                                                                                                         (in IDR million)


                                                   2023                                                       2022
         Description
                                                            Write-off Value                                              Write-off Value
                             Number of Debtors                                          Number of Debtors
                                                            (in million IDR)                                             (in million IDR)

 Conventional                         11,099                    2,705,785                      8,196                       2,497,801

 Sharia                                1,897                      322,241                      1,246                         374,232

 Total                                12,996                    3,028,026                       9,442                       2,872,033




                                                                                PT Bank Tabungan Negara (Persero) Tbk                       283
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                                Management Discussion and Analysis
                                on Bank Performance




Fund Interest Rate

Information on interest rates for bank deposits, savings and current accounts as of December 31, 2023 was as follows:


Table of Indonesia Rupiah Savings Interest Rates

       Types of products                           Balance Strata                   Retail Interest Rates    Institutional Interest Rate

                                 Up to IDR1 million                                       0.00%                       0.00%

                                 > IDR1 million - IDR100 million                          1.00%                       1.00%

                                 > IDR100 million - IDR1 billion                          2.40%                       2.25%

 Tabungan Investa                > IDR1 billion - IDR2 billion                            3.15%                       3.05%

                                 > IDR2 billion - IDR5 billion                            3.40%                       3.20%

                                 > IDR5 billion - IDR10 billion                           4.15%                       3.45%

                                 > IDR10 billion                                          4.15%                       3.90%




Table of Rupiah Savings Interest Rates

                 Jenis Produk                                      Strata Saldo                             Suku Bunga

                                               < IDR1 million                                                 0.00%

                                               ≥ IDR1 million - ≤ IDR50 million                               0.10%

                                               > IDR50 million - ≤ IDR500 million                             0.10%
 Tabungan BTN Batara
                                               > IDR500 million - ≤ IDR1 billion                              0.50%

                                               > IDR1 billion - ≤ IDR2 billion                                1.00%

                                               > IDR2 billion                                                 1.00%



                                               < IDR1 million                                                 0.00%

                                               ≥ IDR1 million - < IDR50 million                               0.50%

 Tabungan BTN Bisnis                           ≥ IDR50 million - < IDR500 million                             1.00%

                                               ≥ IDR500 million - < IDR1 billion                              1.25%

                                               ≥ IDR1 billion                                                 1.75%



                                               ≤ IDR5 million                                                 0.00%

                                               > IDR5 million - IDR10 million                                 0.00%

                                               > IDR10 million - IDR100 million                               0.25%

 Tabungan BTN Prima                            > IDR100 million - IDR500 million                              0.50%

                                               > IDR500 million - IDR2 billion                                0.75%

                                               > IDR2 billion - IDR5 billion                                  1.00%

                                               > IDR5 billion                                                 1.25%



                                               ≤ IDR50 ribu                                                   0.00%
 Tabungan BTN Junior
                                               > IDR50 ribu                                                   0.50%



                                               IDR0 - IDR500 ribu                                             0.00%

 TabunganKu                                    > IDR500 ribu - IDR1 million                                   0.10%

                                               > IDR1 million                                                 0.25%




284           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                           2023 Annual Report




                 Jenis Produk                                           Strata Saldo                                     Suku Bunga


                                                     Sampai dengan IDR10 million                                             1.00%

                                                     > IDR10 million - IDR25 million                                         1.15%

                                                     > IDR25 million - IDR50 million                                         1.25%
 Tabungan SiMuda RumahKu
                                                     > IDR50 million - IDR100 million                                        1.35%

                                                     > IDR100 million - IDR250 million                                       1.50%

                                                     > IDR250 million                                                        2.00%



                                                     < IDR1 million - IDR10 million                                          1.00%

                                                     > IDR10 million - IDR25 million                                         1.15%

                                                     > IDR25 million - IDR50 million                                         1.25%
 Tabungan BTN Siap!
                                                     > IDR50 million - IDR100 million                                        1.35%

                                                     > IDR100 million - IDR250 million                                       1.50%

                                                     > IDR250 million                                                        2.00%



                                                     < IDR1 million                                                          0.00%

                                                     ≥ IDR1 million - IDR50 million                                          0.10%

 Tabungan BTN e’BataraPos                            > IDR50 million - IDR500 million                                        0.10%

                                                     > IDR500 million - IDR1 billion                                         0.50%

                                                     > IDR1 billion                                                          1.00%



 Tabanas Batara Kantor Pos                                                                                                   0.00%




Table of Indonesia Rupiah Current Account Interest Rates

              Types of products                                        Balance Strata                                    Interest Rates
 IDR Current Account                                 ≤ IDR10 million                                                         0.00%

                                                     > IDR10 million - IDR100 million                                        0.25%

                                                     > IDR100 million - IDR500 million                                       0.75%

                                                     > IDR500 million - IDR1 billion                                         1.00%

                                                     > IDR1 billion                                                          1.25%



Table of Indonesia Rupiah Deposit Interest Rates

                                                                                                  Tenor (month)
   Types of
                             Balance Strata
   products
                                                                             2             3           4             6            12      24

 Deposito         < IDR1 million                            0.00%          0.00%          0.00%       0.00%        0.00%         0.00%    0.00%
 Rupiah
                  IDR1 million - < IDR10 million            1.00%          1.00%          1.00%       1.00%        1.00%         1.00%    1.00%

                  IDR10 million - < IDR100 million          2.25%          2.40%          2.65%       2.65%        2.90%         2.90%    2.90%

                  ≥ IDR100 million - < IDR500 million       2.40%          2.40%          2.90%       2.90%        3.05%         3.05%    3.05%

                  ≥ IDR500 million - ≤ IDR2 billion         2.40%          2.40%          2.90%       2.90%        3.05%         3.05%    3.05%

                  > IDR2 billion                            2.40%          2.40%          2.90%       2.90%        3.05%         3.05%    3.05%




                                                                                        PT Bank Tabungan Negara (Persero) Tbk              285
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                                     Management Discussion and Analysis
                                     on Bank Performance




Table of e-Deposito Indonesia Rupiah Interest Rates

                                                                                                      Tenor (month)
   Types of
                            Balance Strata
   products
                                                                 1             2                 3            4                 6        12               24

                  < IDR100 million                            2,60%           2,75%           3,00%        3,00%           3,25%       3,25%             3,25%

                  ≥ IDR100 million - < IDR500 million         2,65%           2,75%           3,25%        3,25%           3,40%       3,40%             3,40%

 e-Deposito       ≥ IDR500 million - < IDR2 billion           4,25%           4,25%           4,40%        4,50%           4,65%       3,40%             3,40%
 Rupiah           ≥ IDR2 billion - < IDR5 billion             4,50%           4,50%           4,65%        4,80%           4,90%       3,40%             3,40%

                  ≥ IDR5 billion - < IDR10 billion            4,60%           4,60%           4,80%        4,90%           5,00%       3,50%             3,50%

                  ≥ IDR10 billion                             4,70%           4,70%           5,00%        5,00%           5,00%       3,60%             3,60%



Table of Exchange Savings Interest Rates

                                      USD                                           SGD                     AUD / CNY                             JPY
   Types of
   products                                           Interest        Balance             Interest    Balance         Interest      Balance             Interest
                       Balance Strata
                                                       Rates           Strata              Rates       Strata          Rates         Strata              Rates

                  < USD 1.000                       0,00%

                  USD 1.000 -
                                                    0,15%
 Tabungan BTN     < USD 10.000
                                                                      All tiering         0,10%       All tiering         0,05%     All tiering         0,00%
 Felas            USD 10.000 -
                                                    0,35%
                  < USD 100.000

                  ≥ USD 100.000                     0,50%




Table of Exchange Savings Interest Rates

                                                                                                           USD
                Types of products
                                                                                Balance Strata                                      Interest Rates

                                                            < USD 1.000                                                                  0,00%

                                                            USD 1.000 - < USD 10.000                                                     0,15%
 Tabungan BTN Felas USD via Mobile Banking
                                                            USD 10.000 - < USD 100.000                                                   0,35%

                                                            ≥ USD 100.000                                                                0,50%




Table of Foreign Currency Account Interest Rates

                                                                                                           Tenor (month)
        Types of products                  Balance Strata
                                                                          1                  3            4                 6          12                 24
 Deposito USD                          All Strata                                                                 0,20%

 Deposito SGD                          All Strata                                                                 0,10%

 Deposito AUD/CNY                      All Strata                                                                 0,10%

 Deposito JPY                          All Strata                                                                 0,00%




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Table e-Deposito Foreign Exchange Interest Rates

                                                                                           Tenor (month)
    Types of
                            Balance Strata
    products
                                                           1          2             3             4             6             12          24

                    < USD100.000                      1,00%         1,00%          1,00%         1,00%         1,00%        1,00%         1,00%


                    USD100.000 - < USD500.000         2,50%         2,50%          1,50%         1,50%         1,50%        2,50%         2,50%
 e-Deposito USD
                    USD500.000 - < USD1.000.000       2,50%         2,50%          2,00%         2,00%         2,00%        2,50%         2,50%


                    ≥ USD1.000.000                    2,50%         2,50%          2,25%         2,25%         2,25%        2,50%         2,50%




Table of Foreign Currency Account Interest Rates

               Types of products                               Balance Strata                                       Interest Rates

                                                Up to USD100.000                                                       0,00%
 Giro Valas (USD)
                                                > USD100.000                                                           0,10%




Prime Lending Rate

On a periodical basis, Bank BTN renews its Prime Lending Rate             not estimated the risk premium which depends on Bank BTN’s
(PLR) in accordance with the benchmark interest rate updates              assessment on each debtor or debtor group’s risk. Therefore, the
from Bank Indonesia. PLR becomes the basis for establishing               lending rate to be charged to debtors may not necessarily be the
the Bank’s lending rate to be charged to Customer. PLR has                same as the PRL.



Table of Prime Lending Rate

                                                                                 PRL per Business Segment

                  Description                                                                                          Consumer Loan
                                             Corporate Loan        Retail Loan          Micro Loan
                                                                                                              Mortgage             Non-Mortgage

 Prime Lending Rate (PLR) 2023                     8,05%              8,30%                n/a                   7,30%                 8,80%

 Prime Lending Rate (PLR) 2022                     8,00%              8,25%                n/a                   7,25%                 8,75%

 Prime Lending Rate (PLR) 2021                     8,00%              8,25%                n/a                   7,25%                 8,75%

 Prime Lending Rate (PLR) 2020                     9,90%              9,90%                n/a                   9,95%                11,25%

 Prime Lending Rate (PLR) 2019                    11,00%             11,25%                n/a                  10,75%                11,50%




Productive Assets Quality Analysis

The assessment or provision of productive assets is aimed at              an increase of 4.17% compared to 2022 which was IDR380.16
providing funds in order to obtain income, whether in the form            trillion. Thus, the Company has good quality productive assets.
of loan, securities, inter-bank placement of funds and other              The following are the Company’s productive assets for the last
equivalent forms of providing funds. The position of productive           two years.
assets in the current category in 2023 was IDR396.00 trillion,




                                                                                 PT Bank Tabungan Negara (Persero) Tbk                         287
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                                    Management Discussion and Analysis
                                    on Bank Performance




Table of Productive Assets Quality

                                                                                                 2023
                 Description
                                                                    Special Mention       Substandard
                                              Current (L)                                                   Doubtful (D)         Loss (M)               Total
                                                                         (DPK)                (KL)

 Placement with other banks                       2,201,681                           -                 -                  -               1,773         2,203,459

 Spot and Derivative Receivables/Forward            32,176                            -                 -                  -                    -          32,176

 Trading Securities                              41,093,303                    50,696             4,644             5,769                 45,390       41,199,802

 Securities Sold under Repurchase
                                                            -                         -                 -                  -                    -                  -
 Agreement (Repo)

 Receivables from Securities Purchased
                                                            -                         -                 -                  -                    -                  -
 under Agreement to Resell (Reverse Repo)

 Acceptance Receivables                            544,567                            -                 -                  -                    -         544,567

 Loans and Financing                            331,227,238                42,088,074           943,057           998,321              14,704,837     390,011,527

 Equity Participation                                       -                         -                 -                  -                    -                  -

 Other Receivables                                          -                         -                 -                  -                    -                  -

 Commitments and Contingencies                   20,853,385                   517,162             7,343               318                168,460       21,546,668

 Foreclosed Collateral                                      -                         -                 -                  -                    -          77,591




Table of Allowance for Impairment Losses and Allowance for Asset Quality Assessment

                                                                                                 2023
                        Post
                                                 Stage 1                   Stage 2              Stage 3               General                       Specific

 Placement with other banks                                 26                        -             1,778                  22,016                       1,778

 Spot and Derivative Receivables/Forward                        -                                           -                   322                            -

 Trading Securities                                  22,903                           -                     -              46,978                      51,507

 Securities Sold under Repurchase
                                                                -                     -                     -                      -                           -
 Agreement (Repo)

 Receivables from Securities Purchased
                                                                -                     -                     -                      -                           -
 under Agreement to Resell (Reverse Repo)

 Acceptance Receivables                               1,447                   22,429                        -                  5,446                           -

 Loans and Financing                             2,441,079                 3,407,511            9,743,374             2,942,958                     9,698,086

 Equity Participation                                           -                     -                     -                      -                           -

 Other Receivables                                              -                     -                     -                      -                           -

 Commitments and Contingencies                        3,580                           -                     -              25,993                      25,858




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                                                                                                                      (in IDR million)


                                                                 2022

                      Special Mention
Current (L)                                   Substandard (KL)          Doubtful (D)           Loss (M)            Total
                           (DPK)

  1,870,587                        -                      -                          -                  1,731      1,872,318

    103,939                        -                      -                          -                      -        103,939

 53,593,946                  36,727                   3,153                     5,436                  48,879     53,688,141


              -                    -                      -                          -                      -                  -



  1,434,190                        -                      -                          -                      -      1,434,190


    420,562                        -                      -                          -                      -        420,562

307,256,659               31,867,688              1,048,197                  1,577,831         14,492,857        356,243,232

              -                    -                      -                          -                      -                  -

              -                    -                      -                          -                      -                  -

 15,480,680                 754,249                  21,204                    12,722                  24,205     16,293,060

              -                    -                      -                          -                 77,591         77,591




                                                                                                                      (in IDR million)


                                                                 2022

   Stage 1                      Stage 2                       Stage 3                    General                Specific

              16                          -                        1,731                   18,706                   1,731

                  -                       -                             -                   1,039                          -

          399                             -                             2                  16,284                 54,522


                  -                       -                             -                          -


                  -                       -                             -                          -                       -


          136                             -                             -                   4,206                          -

   3,014,067                    3,525,156                     9,135,700                  2,663,032              9,246,776

                  -                       -                             -                          -                       -

                  -                       -                             -                          -                       -

        4,719                             -                             -                  16,711                 37,712




                                                                            PT Bank Tabungan Negara (Persero) Tbk              289
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                                on Bank Performance




Fee-Based Income Growth Acceleration                                 trillion. Apart from that, the Company is also expanding the
                                                                     BTN Properti application and portal as a digital housing
Fee Based Income (FBI) or Operational Income Other Than              ecosystem. In 2023, the BTN Properti portal and application
Interest (POSB) is also a source that supports the Company’s         had 515 thousand members, 9,249 developers and 948
profitability. In 2023, the Company’s FBI revenue was                thousand housing stock ready to become KPR. The company
IDR4.07 trillion, with the main sources being treasury income        carries out technological innovations, one of which is the
IDR667 billion, administration IDR778 billion, fees from             BTN Open API & Sandbox. In 2023, the number of partners
transactions and services IDR542 billion and other income            who have integrated BTN Open API reached 14 partners
(including write-offs) IDR2.08 trillion.                             with a total of 849,354 hits.


The strategies carried out by Bank BTN to gain FBI are as
follows:                                                             Bank Capital Structure
1. Optimizing administrative income by increasing NoA
     and improving service for current accounts, savings,            Management Policy on Capital Structure
     deposits and credit customers.                                  and Policy Determination Basis
2. Income from services provided (payment points, card
     business, asset securitization servicing fees, transfers,       The Capital Plan formulated by Bank BTN refers to the latest
     bank guarantees, save deposit boxes, bancassurance,             economic development reviews, while also based on the
     sharia services and banking services).                          analysis and assessment of the required capital adequacy. In
3. Increasing other income by optimizing the mortgage                formulating the Capital Plan as a part of Bank BTN’s Business
     business through insurance kick backs and fees for              Plan, the Board of Directors has received the approval from
     collateral appraisal.                                           the Board of Commissioners. Bank BTN regularly plans and
4. Increasing sales of write-off credit, through accelerating        reviews capital requirements together with the data of the
     asset sales by investor cooperation, litigation and sales       analysis. In planning, Bank BTN always links financial goals
     through low-cost housing portals.                               and capital adequacy to risks so that Bank BTN’s business is
5. Forming a special work unit that manages wholesale                in line with the capital and liquidity requirements.
     and transaction banking to increase wallets from the
     commercial, wholesale and corporate segments.                   The purpose of management’s policy on capital is to ensure
6. Developing fees from priority segments, especially in             that Bank BTN’s capital is strong and able to create a strong
     foreign exchange services (market link deposits, forex          capital structure to support the development strategy for
     swap deposits, etc.).                                           current business expansion and maintain the continuity of
7. Improving treasury profitability from managing Available          development going forward. In addition, the determination
     for Sale (AFS) and Hold to Maturity (HTM) portfolios.           of the capital policy is intended to meet the capital adequacy
8. Increasing fees sourced from Bank Guarantees (BG),                provisions set by the regulator and ensure that Bank BTN’s
     Domestic Letters of Loans (SKBDN), Supply Chain                 capital structure has been efficient.
     Financing (SCF), Cash Management System (CMS) in the
     Corporate segment.                                              Based on OJK Regulation Number 11/POJK.03/2016 dated
                                                                     29 January 2016 as amended by OJK Regulation No. 27
                                                                     of 2022 dated December 26 2022 concerning the Second
Digital Transaction Volume Growth                                    Amendment to OJK Regulation Number 11/POJK.03/2016
                                                                     concerning the Minimum Capital Adequacy Requirement for
To develop new sources of growth, the Company accelerated            Commercial Banks, Bank BTN’s capital consists of:
the development of digital services, especially those targeting      1. Core Capital, which consists of Common Equity Tier -
retail transactions through the BTN Mobile acquisition and               CET1 and Additional Tier 1 (AT1). Core capital includes
utilization program. With the program being implemented,                 paid-in capital and disclosed reserves. Disclosed
the number of digital banking transactions increased rapidly,            reserves consists of additional factors (agio, general
to 486 million transactions, or an increase of 87% yoy. In line          reserves, previous year’s profit, profit for the year
with the increase in the number of transactions, the volume              and stock options) and the deducting factors (other
of digital service transactions also rose to IDR592 trillion, or         comprehensive losses and financial asset transactions
grew by 117% yoy. In order to support the development of                 classified as available for sale, difference of Allowance
digital transactions, in 2023, the Company also developed                for Uncollectible Accounts (PPA) on earning assets with
the acquisition of QRIS. In 2023, the Company had 15,602                 Allowance for Impairment Losses and nonearning PPA.
QRIS with total merchant balances reaching IDR1.29




290         PT Bank Tabungan Negara (Persero) Tbk
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2. Supplementary Capital (Maximum 100% of Core Capital)                   The Company’s core capital (Tier 1) in 2023 was IDR27.15
   which consists of general reserves of PPA for productive               trillion, higher than in 2022 of IDR22.53 trillion. Meanwhile,
   assets that must be calculated with a maximum amount of                the Company’s supplementary capital (Tier 2) in 2023 will
   1.25% of RWA for Credit Risk and Reserves.                             be IDR4.08 trillion, lower than the supplementary capital in
                                                                          2022 of IDR5.64 trillion.



Capital Structure Details

Bank BTN has strong capital capabilities to support business growth. Below is the details of Bank BTN’s capital structure.


Table of Capital Structure Details                                                                                              (in IDR million)



                                                                                                              Income / (Decrase)
                                 Description                               2023            2022
                                                                                                           Amount            Percentage


 I.    Core Capital (Tier 1)                                             27,154,078      22,533,407       4,620,671              20.51%


       1.   Common Equity Tier - CET 1                                   27,154,078      22,533,407       4,620,671              20.51%


            1.1 Paid-up Capital (minus Treasury Stock)                    7,017,222       5,295,000       1,722,222              32.53%


            1.2 Disclosed Reserves                                       23,135,138      20,153,835       2,981,303              14.79%


            1.3 Calculable Non-Controlling Interest                                -               -                -                      -


            1.4 Common Equity Tier 1 Regulatory Adjustment               (2,998,282)     (2,915,428)        (82,854)              2.84%


       2.   2Additional Tier - AT 1                                                -               -                -                     -


            2.1 Instruments meeting AT-1 requirements                              -               -                -                      -


            2.2 Agio/Disagio                                                       -               -                -                      -


            2.3 Additional Tier 1 Regulatory Adjustment                            -               -                -                      -


 II.   Supplementary Capital (Tier 2)                                     4,076,204       5,635,050      (1,558,846)           (27.66%)


       1.   Capital instruments in shares or others meeting Tier 2
                                                                          2,367,557       4,206,070      (1,838,513)           (43.71%)
            requirements


       2.   Agio/Disagio                                                           -               -                -                      -


       3.   General reserves of mandatory productive asset Allowance
                                                                          1,708,647       1,428,980         279,667              19.57%
            for Uncollectible Accounts (max. 1.25% of Credit Risk RWA)


       4.   Supplementary Capital Regulatory Adjustment                            -               -                -                      -


 TOTAL CAPITAL                                                           31,230,282      28,168,457        3,061,825             10.87%




                                                                              PT Bank Tabungan Negara (Persero) Tbk                     291
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                                       Management Discussion and Analysis
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                                                                                                                          Income / (Decrase)
                                  Description                                    2023               2022
                                                                                                                       Amount           Percentage


 Risk-Weighted Assets (RWA)


     RWA for Credit Risk                                                     136,691,761       114,318,357            22,373,404               19.57%


     RWA for Market Risk                                                      17,956,060          1,373,299           16,582,761             1207.51%


     RWA for Operational Risk                                                     942,326        23,938,858          (22,996,532)             (96.06%)


 Total RWA                                                                   155,590,147        139,630,514           15,959,633               11.43%


 Capital Adequacy Ratio (CAR) according to Risk Profile                             9.18%              9.40%


 Common Equity Tier 1 (CET 1)                                                     17.45%             16.13%


 Tier 1 Ratio                                                                     17.45%             16.13%


 Tier 2 Ratio                                                                       2.62%             4.04%


 Capital Adequacy Ratio (CAR)                                                     20.07%             20.17%




Material Commitments for Capital Investment

In 2023, Bank BTN made material commitments with related parties for capital investments. Some material commitments with significant
values are presented in the following table:


Table of Material Commitments for Capital Investment

     Name of Parties under                                                                                                 Commitment Value
                                                                 Type of Commitment
        Commitments                                                                                                          (in IDR million)

                                        Procurement of Contractor Services for the Renovation of Bank BTN Tanah
 PT Binayasa Putra Batara                                                                                                           30,500
                                        Abang Education and Training Center Building

 PT Binayasa Putra Batara               Procurement of Cirebon Branch Office Construction Work Contractor Services                  39,100

                                        Procurement of Renovation and Relayout Work Contractor Services for All
 PT Neocelindo Intibeton                                                                                                            29,800
                                        Floors of the Bekasi Branch Office Building

                                        Procurement of Contractor Services for Renovation Work on the 23rd Floor
 PT Binayasa Putra Batara                                                                                                           15,550
                                        of BTN Tower

                                        Procurement of Basement Work Contractor Services for Renovation of the
 PT Binayasa Putra Batara                                                                                                           12,475
                                        Tanah Abang Education and Training Center Building

                                        Procurement of Contractor Services for Interior Lobby Renovation Work and
 PT Binayasa Putra Batara                                                                                                           26,900
                                        Overall Landscape of BTN Tower

                                        Procurement of Oracle Software License Extensions for E2E Procurement
 PT Metrocom Global Solusi                                                                                                          37,000
                                        Applications and Custodian Applications

                                        Order for the Use of Middleware Umbrella Contract Mandays 2023 - 2025
 PT Hanoman Cendekia Interaktif                                                                                                     12,712
                                        for Sharia Virtual and Corporate Card Off Us Middleware side

 PT Mitra Integrasi Informatika         Procurement of Master Data Management Development                                           15,984




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Bank BTN makes material commitments for investment in goods and         buildings, vehicles and various office equipment to support the
capital with the aim of supporting Bank BTN’s operational activities.   Company’s operations.
The source of funds used by Bank BTN in carrying out material
commitments comes from Bank BTN’s internal funds. Because the           In 2023, the Company invested in capital goods in the form of
currency used for investment in capital goods is IDR or Rupiah and      purchasing 1 (one) unit of a multi-storey building consisting of 28
the procurement value stated in the cooperation agreement between       floors and 2 basements with a value of IDR1.28 trillion, including
Bank BTN and Providers is also set in Rupiah, there is no need for      the purchase price, Land and Building Acquisition Fee, and
planned steps to protect risks from foreign currency positions.         applicable taxes. The building is located on Jalan H.R. Rasuna
                                                                        Said No. 01 RT. 001 RW. 006, Guntur Village, Setiabudi District,
                                                                        South Jakarta. Previously, the building was called Medialand
Capital Investment                                                      Tower (formerly Allianz Tower). Due to this purchase, the building
                                                                        changed its name to Menara 2 BTN. Currently, according to the
The Company invests in capital goods in the form of land, office        report, the investment in capital goods is recorded as capital
buildings/space, other buildings, computer hardware, machines,          goods in the form of other buildings because the legality of
vehicles, office equipment, fixed assets and other inventory. Until     ownership is still in the process of changing the name by the
2023, the total investment in capital goods will be IDR12.16            authorized agency and the process is also being processed to
trillion. This number increased compared to 2022 due to the             the Financial Services Authority (OJK) for the use of the building
purchase of land for offices, purchase and renovation of office         as a functional bank office.




Table of Capital Goods Investment                                                                                              (in IDR million)



                                                                                                   Investment Value
                   Type                         Investment Purpose
                                                                                       2023                            2022

 Land                                    Bank Business Operations                     4,548,181                       4,277,941

 Office Buildings/Rooms                  Bank Business Operations                     1,860,085                       1,730,108

 Other Buildings                         Bank Business Operations                     1,404,960                          69,763

 Computer Hardware                       Bank Business Operations                     3,050,055                       2,465,335

 Machineries                             Bank Business Operations                      504,278                         481,161

 Vehicles                                Bank Business Operations                        49,298                          43,685

 Office Supplies                         Bank Business Operations                      689,774                         637,637

 Fixed Assets and Other Inventories      Bank Business Operations                        47,973                          45,993

 Total                                                                              12,154,605                        9,751,623




Commitments and Contingencies

The balances of Commitments and Contingencies as of December 31, 2023 and 2022 were as follows:


Tabel Commitments and Contingencies                                                                                            (in IDR million)


                                        Description                                                2023                    2022

 COMMITMENTS

 Commitments Payable

    Unused loan facility commitments                                                              18,933,652            15,109,981

    Irrevocable L/C on progress                                                                      20,106                221,484




                                                                            PT Bank Tabungan Negara (Persero) Tbk                    293
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                                        Description                                             2023                    2022

 Commitments – Net                                                                            18,953,758             15,331,465

 CONTINGENCIES

 Contongent receivables

   Interest income on non-performing assets                                                    3,598,041               6,855,269

 Contingent payables

   Guarantees issued                                                                          (2,579,175)              (948,495)

 Contingencies - Net                                                                           1,018,866               5,906,774




Significant Agreements

Throughout 2022 and 2023, the Company will implement                    10. On September 4, 2023, Bank signed an agreement with
the following significant agreements:                                       PT Casa Prima Indonesia regarding Relayout Contractor
1. On December 4, 2023, Bank signed an agreement with                       Services and Construction of the Banyumanik Main
    PT Sinergy Information Pratama in relation to procurement               Document Room Centralized Building with a contract
    of Cash Recycle Machine (CRM) 2023 with contract                        value of IDR7,400 million.
    value of IDR133,863 million.                                        11. On August 29, 2022, Bank signed an agreement with PT
2. On December 19, 2023, Bank signed an agreement                           Surya Sudeco in relation to procurement for Operational
    with PT Multipolar Technology Tbk in relation to re-                    Car Lease with contract value of IDR77,830 million.
    procurement of PC Desktop and Notebook with Seat                    12. On August 4, 2022, Bank signed an agreement with PT
    Management Scheme with contract value of IDR115,980                     Mitra Integrasi Informatika in relation to procurement
    million.                                                                for License Package Microsoft Support and Supporting
3. On February 8, 2023, Bank signed an agreement with PT                    Services for Data Center with contract value of IDR47,990
    Multipolar Technology in connection with the procurement                million for three years.
    of network equipment upgrades and standardization of                13. On January 22, 2022, Bank signed an agreement with
    Bank BTN Tower LAN with a contract value of IDR39,575                   PT Swadharma Duta Data in relation to procurement
    million.                                                                for The Extenxion of Information Technology Service in
4. On February 3, 2023, Bank signed an agreement with PT                    Outlet with contract value of IDR27,663 million for a
    Binayasa Putra Batara in relation to contractor services of             period of two years and on February 27, 2023 was a
    construction for the Bank BTN KC Cirebon Building with                  second year IT outlet service extension with a contract
    contract value of IDR39,100 million.                                    value of IDR13,832 million.
5. On February 20, 2023, Bank signed an agreement with                  14. On November 14, 2022, Bank signed an agreement
    PT Trees Solutions in connection with the re-procurement                with PT Pesona Adi Batara in relation to Procurement of
    of Integrated End to End Procurement with acontract                     operational cars for BTN officials in 2022 with contract
    value of IDR30,669 million.                                             value of IDR21,500 million.
6. On January 6, 2023, Bank signed an agreement with PT                 15. On December 20, 2022, Bank signed an agreement with
    Binayasa Putra Batara in relation to contractor services                PT Dana Pensiun Bank BTN in relation to Procurement
    of renovation for the Bank BTN Tanah Abang Pusdiklat                    extension of the lease for the 2nd floor until 5th floor of
    Building with contract value of IDR30,500 million.                      the Graha Extama building (Tebet Learning Center) with
7. On July 11, 2023, Bank signed an agreement with PT                       contract value of IDR18,204 million.
    Berkat Manunggal Energi regarding the procurement of                16. On November 2, 2022, Bank signed an agreement
    generator replacement for the BTN Tower Building with a                 with PT Binayasa Putra Batara in relation to contractor
    contract value of IDR13,986 million.                                    services of renovation for the 6th floor of BTN building
8. On March 15, 2023, Bank signed an agreement with                         with contract value of IDR17,500 million.
    PT Telekomunikasi Indonesia in connection with the                  17. On May 27, 2022, Bank signed an agreement with
    procurement of a third year Sentul Data Center collocation              PT Simian Solutions in relation to procurement of
    lease with a contract value of IDR10,638 million.                       Implementation of Custodian Service System with contract
9. On August 16, 2023, Bank signed an agreement with PT                     value of IDR17,000 million.
    Casa Prima Indonesia regarding the KC Kudus Relocation
    Renovation Contractor Services with a contract value of
    IDR7,495 million.




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18. On July 21, 2022, Bank signed an agreement with              positive export performance, as well as support from the
    PT Sinergy Informasi Pratama in connection with the          Housing Sector driven by Government stimulus. However,
    Procurement of Firewalls for WAN DC Sentul and DC            there remain risks such as global inflationary pressures,
    Surabaya with a contract value of IDR.11,550 million for     interest rate increases by the Fed and uncertainty in global
    a period of one year.                                        financial markets. The International Monetary Fund (IMF)
19. On March 16, 2022, Bank signed an agreement with             estimates that Indonesia’s economic growth will be 5.0% in
    PT Hartekprima Listrindo in relation to Procurement of       2023 and is projected to stabilize at that level in 2024.
    Generator Set for RBB 2022 and non RBB needed with           On the banking side, growth in credit and Third Party Funds
    contract value of IDR10,823 million.                         (DPK) has also improved, reflecting the recovery in economic
20. On July 22, 2022, Bank signed an agreement with PT           activity. KPR is expected to continue to grow in 2024, with
    Casa Prima Indonesia in relation to Procurement of KCS       high demand and supportive housing stimulus.
    Makassar Renovation Contractor Services with contract
    value of IDR9,850 million.                                   Estimated macroeconomic assumptions for the following
                                                                 years include stable economic growth, controlled inflation,
                                                                 interest rates that are predicted to decline and healthy credit
Material Information and Facts After                             growth, including mortgages and the real estate sector.
Accounting Report Date                                           In addition, the rupiah exchange rate against the United
                                                                 States (US) dollar is expected to be stable, reflecting Bank
Until the end of the Annual Report, there is no description      Indonesia’s efforts to maintain exchange rate stability.
of important events after the date of the accountant’s report,
including their impact on future business performance and        Bank BTN’s business will continue to focus on the housing
risks.                                                           sector and related to housing, because the housing sector
                                                                 remains a sector with high growth potential in line with
                                                                 increasing demand and the number of national backlogs.
Details of Problems Arising During the                           Some of the data we have shows the following information::
Fiscal Year Which Affected the Business                          a. The largest distribution of home ownership backlogs
Activities of Bumn                                                   occurs in the Jakarta and West Java regions, followed by
                                                                     the East Java region.
In 2023, the Indonesian economy shows signs of strong            b. Of the home ownership backlog of 12.7 million, there
recovery. In Quarter II, economic growth reached 5.17%               are around 10.7 million that have the potential to be
year-on-year (yoy), reflecting strengthening community               absorbed by banks.
mobility and economic activity after the pandemic. In            c. Demographically, the home ownership backlog is mostly
addition, the global economy is also recovering, with trading        in the 24 to 40 year age range, and has an average
partner countries such as China and India experiencing               income of IDR1.5 million to IDR3.4 million.
strong growth. The manufacturing sector in Indonesia is          d. Another challenge is Indonesia’s mortgage to GDP ratio of
stable, and banking credit is growing, especially investment         3%, which is still lower than other countries in ASEAN. This
credit and Micro, Small and Medium Enterprises (MSMEs).              indicates that there is still a lot of potential in the housing
                                                                     sector that can still be optimized, in line with the government’s
The real estate sector, especially housing, also grew thanks         target to increase this ratio to 4% by the end of 2024.
to Government stimulus, including the easing of Loan-to-Value    e. This enormous potential is one of BTN’s main concerns in
(LTV) and Financing-to-Value (FTV) ratios for property. Bank         capturing demand in the property sector and is also one
Indonesia has increased the benchmark interest rate as a pre-        of the main drivers of business growth.
emptive step to maintain the stability of the rupiah exchange
rate and control inflation. Although inflation remains under     In the remainder of 2023 and 2024, BTN remains optimistic
control, future interest rate policy will depend heavily on      that it will continue to record good financial performance
economic data and financial markets. Bank Indonesia plans        in line with several new regulations issued in 2023. From
to maintain interest rates at a certain level until the first    the housing sector, the Government has just made the latest
semester of 2024 and will adjust them according to further       adjustments to the subsidized housing price limits for 2023
developments.                                                    and 2024. 2024 with an average increase of 7% since the
                                                                 end of June 2023 and 3% as of 1 January 2024. In addition,
In 2024, developing countries such as Indonesia and India        the Government has just issued the latest DTP VAT policy in
are expected to continue to grow, while the economies of         the property sector for home purchases with prices up to IDR5
developed countries such as the United States and Japan          billion with incentives of 100% for basic DTP VAT is imposed
are predicted to grow more slowly. In Indonesia, economic        at a maximum of IDR2 billion on the house price until June
growth was driven by improving domestic demand and               2024 and 50% for the period July - December 2024.




                                                                     PT Bank Tabungan Negara (Persero) Tbk                     295
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                                on Bank Performance




There is also Administration Cost Assistance (BBA) worth             Business Outlook and Future Strategies
IDR4 million for subsidized housing with a maximum price
of IDR350 million from November 2023 – December 2024.                In January 2024, the World Bank lowered its projection
This housing-related policy can certainly stimulate demand in        for world economic growth to decline to 2.4% for 2024.
the property sector and encourage BTN’s credit growth as a           Meanwhile, Bank Indonesia predicts that the world economy
bank that focuses on this sector. Apart from that, the GWM           will slow down to 2.8% in 2024. This development is driven
incentives and PLM ratio are expected to provide additional          by the inflation rate in developed countries which is still at
liquidity for BTN, which can later be used for lending,              over the target with the pressure starting to subside. With
especially in the housing sector. Apart from that, with the          this development in inflation, monetary policy interest rates
latest OJK Regulation (POJK 12/2023) regarding the spin              including the Federal Funds Rate (FFR) are predicted to
off of UUS, BTN will follow these regulations and is in the          remain high for a long period of time (higher for longer).
process of reviewing various existing options.                       Nevertheless, Indonesia’s economic growth in 2024 is
                                                                     predicted to remain strong and grow positively in the range
Responding to global uncertainty and the era of high interest        of 4.8% - 5.2%. Then the inflation rate in 2024 is predicted
rates throughout 2023, BTN faces several challenges and              to be lower compared to 2023 at Bank Indonesia’s target
opportunities that will enable BTN to continue to perform            range of 2.5% ± 1% yoy. To achieve this level of inflation,
positively.                                                          the Government and Bank Indonesia will implement a mix
a. Until September 2023, there has been an increase in               of fiscal, monetary and real sector policies. Meanwhile,
    BI7DRRR of 225 bps since the first increase in August            the average exchange rate of the rupiah against the United
    2022, which has put pressure on BTN’s interest expenses.         States (US) dollar is estimated at around IDR15,500 at the
    As of September 2023, interest expenses grew 44% yoy,            end of 2024, while taking into account uncertainties in
    but it is still under control because the growth in interest     global financial markets such as the Fed’s monetary policy.
    expenses is still lower than the increase in BI7DRRR which       BI’s benchmark interest rate will remain at the level of 6.00%
    was 64%.                                                         at the end of 2023 and then begin decreasing in Semester
b. Apart from the increase in the benchmark interest rate,           II 2024. The financial services sector, especially banking, is
    banking liquidity throughout 2023 will also be quite             predicted to maintain its performance, returning to normal as
    tight, especially with the launch of the new BI Open             before the pandemic. It is estimated that in 2024 Third Party
    Market Operation instruments, namely Bank Indonesia              Funds will grow in the range of 8.0% - 9.0% and banking
    Rupiah Securities (SRBI), SVBI, and SUVBI. Due to tight          loan distribution will grow by 10.0% - 12.0%.
    liquidity, there was an increase in CoF which caused a
    decrease in NIM.                                                 The housing sector still has enormous room for growth
                                                                     considering the high number of national housing backlogs
On the other hand, BTN continues to strive to answer these           and the high number of people who do not yet have adequate
challenges by continuing to maintain strong performance              housing. Until September 2023, total KPR recorded positive
and developing other business lines:                                 growth reaching 12.66% yoy. The extension of the stimulus
a. As of September 2023, credit and refinancing grew                 provided by the Government to the housing sector will have
   solidly by 9.9% yoy, in line with guidance for 2023, and          an impact on increasing demand for housing in 2024. At
   will continue to be increased by encouraging high yield           the end of November 2023, the government will provide
   credit distribution.                                              a Government Borne Value Added Tax (PPN DTP) incentive
b. In September 2023, fee based income grew 67.3% yoy                for the purchase of new houses with a price of up to IDR5
   with FBI’s portion of total income reaching 10.2%. FBI            billion and exempt 100% VAT for houses with a maximum
   is an additional source of income for BTN to reduce               sales value of IDR2 billion, which is valid until June 2024.
   dependence on assets that are sensitive to interest rates.        Meanwhile, for the period July to December 2024, the
c. Efficiency on the operational side has also improved,             Government will provide a VAT discount of 50%. The DTP
   reflected in a decrease in operational costs of 5.6% yoy          VAT incentive is expected to be the main driver of housing
   until September 2023.                                             demand throughout 2024. Apart from that, Bank Indonesia
d. BTN also actively manages the cost of funds through the           also provided stimulus, namely easing the LTV/FTV ratio for
   recomposition of funding which previously relied heavily          Property Credit/Financing to a maximum of 100% for all
   on commercial deposits and shifted it to retail funds and         types of property which is valid until December 2024.
   operational current accounts.




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In 2024, people’s purchasing power is expected to increase                                                             growth continues to strengthen at 8.66% yoy. This HPI growth
in line with improvements in the national economy and                                                                  is supported by growth in all types of houses, namely small
the holding of elections. House selling prices are also                                                                type houses (21 m2 - 36m2), medium type houses (37m2 -
expected to increase evenly, supported by infrastructure                                                               45m 2) and large types (46m2 - 70m2).
developments, improvements in the national economy, and
positive sentiment regarding the success of holding elections.                                                         Source:
                                                                                                                       - Global Economic Prospects, World Bank, January, 2024
This is also supported by the results of Bank BTN’s House                                                              - Bank Indonesia Annual Meeting, 2023
Price Index (HPI) research in Quarter III - 2023, house price                                                          - Financial Services Authority Press Release, 2023.




Considering developments in macroeconomic dynamics, the banking industry and the housing industry, the Company conducted
a competitive analysis through Strength, Weakness, Opportunity, Threat (SWOT) analysis analysis as follows:



                                                                                                                Potential
                                                          Strength                                                                                            Opportunity
                       •   Strong positioning in the mortgage business in the MBR segment and has a                         •   The housing sector has good potential next year. In 2024 KPR is predicted to grow
                           strategic role in the national housing ecosystem.                                                    95% (yoy), the growth of which is driven by demand for middle segment KPR.
                       •   Potential business increase from initiatives implemented in 2023, including:                     •   LTV/FTV policy relaxation extended until December 2024.
                           Sales Center, KCP Mitra MSME, branch productivity for KCP, expansion                             •   Increasingly massive acceleration of digital financial services, especially for internet
                           of e-channel customer acquisitions and transactions, development of                                  and mobile banking users, which has the potential to increase CASA and fee based
                           retail e-deposits, ultimate projects, and CASA initiatives in the segment                            income.
                           businessman.
                       •   Potential for cross selling to captive customers, especially for high yield credit
                           products, savings and wealth services.




                                                                                                                                                                                                                           External
Internal




                                                        Weakness                                                                                                    Threat
                       •   Cost of Funds is still high which has an impact on bank profitability.                           •   The BI 7DRR benchmark interest rate is predicted to remain high “higher for longer”
                       •   Retail TPF is still not growing, TPF growth is still dominated by the                                which will have an impact on increasing fund interest rates.
                           commercial segment.                                                                              •   Subsidized KPR allocations are increasingly limited. The allocation for subsidized
                       •   Increase in NPL in the consumer and commercial segments due to the end of                            KPR in 2024 is 166 thousand units, lower than the allocation in 2023 which is 220
                           the relaxation for the realization of Covid-19 restructuring.                                        thousand units.
                       •   The contribution of fee based income is still dominant in treasury and admin,                    •   Bank and fintech digital expansion is predicted to remain massive.
                           while the portion from services and transactions is still low.



                                                                                                                Potential


Paying attention to the SWOT analysis, a Threat Opportunity Weakness Strength (TOWS) matrix is prepared as follows:


                                                                                                          Strength Strategy
                       Strength-Opportunity (SO-Strategy)                                                                                                                 Strength-Threat (ST-Strategy)
                       •   Continuing initiatives in 2023 which focus on increasing                                                                •    Propose an additional scheme for subsidized KPR allocation
                           high yield loan, retail deposits and transaction banking.                                                                    to the Government.
                       •   Develop mortgage business segmentation in the emerging                                                                  •    Sub-Branch Office (KCP)segmentation according to regional
                           affluent segment (ticket size above IDR750 million).                                                                         potential, that is Consumer, MSME and General Sub Branch.
                       •   Cross selling program for high yield loan products,                                                                     •    Accelerate the development of digital banking services and
                           transaction banking and retail deposits                                                                                      super-apps as new sources of growth.
                                                                                                                                                   •    Develop transaction banking in the commercial and retail
Maximize Opportunity




                                                                                                                                                        segments.
                                                                                                                                                                                                                           Minimize Risk




                       Weakness-Opportunity                                                                                                                                               Threat-Opportunity
                       •   Accelerate the development of digital banking services and                                                              •    Partnership with start-ups and finetch to develop high yield
                           super-apps as new sources of growth.                                                                                         business, transaction banking and digital housing ecosystem.
                       •   Development of fee based income through cross selling in                                                                •    Strengthen collection and asset recovery processes to
                           digital services, wealth and wholesale segments.                                                                             accelerate credit quality improvement.
                       •   Expand sales channels through digital platforms such as                                                                 •    Develop retail customer segmentation, especially in the
                           BTN Mobile, BTN Properti, and BTN Smart Residence.                                                                           individual net worth segment.




                                                                                                         Recovery Strategy




                                                                                                                                PT Bank Tabungan Negara (Persero) Tbk                                                      297
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                                      Management Discussion and Analysis
                                      on Bank Performance




Based on the matters described above, the Company believes it has very good business prospects in the future. In accordance with the
Corporate Plan roadmap for 2021-2025. Bank BTN’s transformation journey in 2024-2025 is “Disrupt and Scaleup Through Digital”
which is described as follows:



                                                                              2024-2025
                                                                  Disrupt and Scaleup Through Digital

                             Funding
                             • Increase BTN Solutions and sector specific program offerings to more sectors
                             • Leverage more analytics use cases

                             Lending
                             • Launching a one-stop digital customer housing ecosystem
            Business         • Launching a business to business (B2B) real estate market and bundling services outside of banking
                             • Launching supported MSME loans
                             • Property for other sectors (non-residential) Increasing BTN Properti to become the 3rd largest online property portal in
                                the country

                             Ecosystem
                             • Developing BTN Properti to become the 3rd largest online property portal in the country


                             • Digitize the end to end mortgage process
                             • Improve API & SandBox management
            Enabler          • Preparing governance and data structures Designing Strategic Business Unit (SBU) structures and pilots
                             • Implementing the BUMN corporate culture
                             • Increase commercial BPI; launched CBC Strengthening Collection & accelerating asset sales




Achievement of Targets and Future Targets

Achievement of Targets In 2023

Comparison of Production/Operational Targets and Realization

Several indicators of operational target achievement may be demonstrated by the achievement of some targets, namely lending and
financing targets and Third Party Funds collection targets.


Table of Comparison of Production/Operational Targets and Realization                                                                        (in IDR million)


                           Description                                   2023 Realization               2023 Target                 Achievement

                                1                                                 2                            3                        4=2/3

 Loans and Financing

 Housing Loans                                                               248,030,689                  249,369,957                    99.46%

 Non-Housing Loans                                                             48,553,170                  44,673,004                   108.69%

 Total Loans                                                                 296,583,860                  294,042,962                   100.86%

 Total Financing                                                               37,114,281                  35,784,542                   103.72%

 Total Loans and Financing Provided                                          333,698,141                  329,827,503                   101.17%

 Third Party Funds

 Current Account                                                             143,534,817                  135,150,320                   106.20%

 Savings                                                                       44,471,996                  49,346,763                    90.12%

 Deposits                                                                    161,926,504                  162,628,342                    99.57%

 Total Third Party Funds                                                     349,933,317                  347,125,425                   100.81%



Housing loans in 2023 amounted to IDR248.03 trillion                           recovering after Covid-19 and also the Company’s strategy in
reached 99.46% of the 2023 target, this was partly due                         developing high yield product businesses such as KAR, KRING
to economic conditions which were still in the process of                      and KUR, so that overall the Company’s loans and financing



298            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




could still exceed the 2023 target, reaching 101.17% of the             as to reduce the increase in the cost of funds amidst conditions of
2023 target.                                                            tight banking liquidity and high interest rates.


The amount of third party funds in 2023 amounted to IDR349.93           Savings in 2023 amounted to IDR49.34 trillion reached
trillion, reaching 100.81% of the 2023 target. This achievement         90.12%, this failure was due to tight banking liquidity conditions,
was supported by the achievement of the current account in              especially banks in the Commercial Bank Business Activities III
2023. The current account in 2023 reached IDR135.15 trillion,           category, but the Company’s savings position could still grew
achieving 106.20% of the year’s target. In 2023, the current            yoy by 5.40%.
account achievement could be contributed by an increase in
current accounts in the wholesale, commercial, corporate and
institutional segments.                                                 Comparison of Financial Targets and Realization

Deposits in 2023 reached IDR162.63 trillion, achieving 99.57%           Financial achievement can be seen from the achievement of
of the 2023 target, this failure to achieve was more due to the         financial position, financial ratios, income and profit.
Company’s strategy of shifting expensive funds to cheap funds so


Table of Comparison of Financial Targets and Realization                                                                       (in IDR million)


                          Description                              2023 Realization           2023 Target              Achievement

                              1                                           2                        3                      4=2/3

 Financial Position

 Assets                                                               438,749,736              430,947,850                101.81%

 Liabilities                                                          381,164,489              401,402,327                 94.96%

 Equity                                                                30,479,152               29,545,523                103.16%

 Income and Profits

 Interest income                                                       28,281,252               27,729,313                101.99%

 Income from operations                                                 4,539,729                 4,014,398               113.09%

 Net income                                                             3,500,988                 3,053,724               114.65%

 Financial Ratios

 CAR                                                                       20.07%                   19.44%                103.24%

 NPL                                                                          3.01%                    3.45%               87.25%

 ROA                                                                          1.07%                    0.95%              112.63%

 ROE                                                                       13.86%                   12.16%                113.98%

 NIM                                                                          3.75%                    3.89%               96.40%


Assets in 2023 amounted IDR441.79 trillion, with an achievement         with the achievement of operational profit, net profit in 2023
of 101.81% above the target. This achievement was due to                was realized at IDR3.50 trillion with an achievement of 114.65%
securities owned, credit/receivables/financing provided and             which succeeded in exceeding the set target. This achievement
DPK successfully exceeding the set target. Equity achievement           was due to the success of the Company’s strategy in improving
in 2023 is 103.16% with a realization of IDR30.48 trillion.             financing quality, expanding high yield credit and optimizing
Stronger equity in 2023 is supported by better profitability,           operational income besides interest. The profit in 2023 became
thereby increasing retained earnings for that year.                     the largest profit in the history of the Company’s existence.


Realization of interest income in 2023 reached IDR28.28                 In terms of financial ratios, CAR in 2023 reached 20.07% with
trillion with an achievement of 101.99% above the target.               an achievement of 103.24% above the target. This achievement
This achievement was due to improvements in loan quality                was contributed by increased profits, additional core capital
and the Company’s strategy in expanding high yield loans.               obtained from the rights issue and the Company’s ability to
Likewise, operational profit in 2023 managed to exceed the              manage its securities portfolio so that had no significant mtm
target of 113.09% with a realization of IDR4.54 trillion. This          downsides. NPL in 2023 was 3.01%, better than the target
achievement was due to the success of the Company’s strategy            of 3.45%. This is driven by business process improvement
in improving financing quality, expanding high yield financing          initiatives such as the implementation of the Commercial Banking
and optimizing operational income other than interest. In line          Center (CBC), Regional Loan Processing Center (RLPC) so that




                                                                              PT Bank Tabungan Negara (Persero) Tbk                  299
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                                      Management Discussion and Analysis
                                      on Bank Performance




the loan processed became more prudent and also asset sales                  supported by an increase in the Company’s profit in 2023, an
carried out periodically. ROA, ROE and NIM in 2023 reached                   increase in operational income other than interest and efficiency
1.07%, 13.86% and 3.75% respectively. This achievement was                   in overhead costs.




Comparison of Target and Realization of Capital Structure

Achievement of the capital structure in 2023 is described as follows.


Table of Comparison of Targets and Realization of Capital Structure                                                                     (in IDR million)


                            Description                              2023 Realization             Target 20223                Achievement

                                  1                                            2                        3                       4=2/3

 Core Capital (Tier 1)                                                      27,154,078               26,499,859                 102.47%

 Main Core Capital (Common Equity Tier - CET 1)                             27,154,078               26,499,859                 102.47%

 Additional Core Capital (Additional Tier - AT 1)                                    -                         -                           -

 Supplementary Capital (Tier 2)                                              4,076,204                3,902,802                 104.44%

 Total Capital                                                              31,230,282               30,402,662                 102.72%

 Risk Weighted Assets (RWA)                                                155,590,147             156,392,874                   99.49%

 Minimum Capital Adequeacy Requirement(KPMM)                                   20,07%                   19,44%                  103.24%




Core Capital (Tier 1) in 2023 was IDR27.15 trillion with an                  Comparison of Marketing Target and Realization
achievement of 102.47% above the target. This achievement is
due to the potential gain/loss in the value of securities owned              The public’s brand awareness (the level of bank awareness) of
which can be reduced to a minimum. Complementary capital                     the Company’s brand was an indicator of marketing strategy
(Tier 2) in 2023 was also realized at IDR4.07 trillion with an               achievement in 2023. The method used to obtain the public
achievement of 104.44% above the target. In the future, the                  perception index ranking of the Company’s brand was through
Company will continue to maintain an optimal composition of                  direct surveys of respondents in 9 (nine) large cities in Indonesia
Core Capital (Tier 1) to support increasing business capacity.               by an independent survey institution with consideration of the
                                                                             bank’s image bankwide, savings products and e-channels,
                                                                             resulted in the following:



Bank Rapid Reaction Monitor (BRRM) Table – 9 (nine) Cities

                                                                                                             Rating (Score)
                                      Awareness Level
                                                                                                 2023 (Q4)                      2022

 Bankwide                                                                                          6 (36)                       7 (36)

 Savings                                                                                           5 (19)                       5 (22)

 E-Channel (Mobile Banking)                                                                        7 (11)                       8 (9)




Based on the results of this study, it can be concluded that the             Comparison of Targets and Realization of HR
Bank BTN brand has experienced an increase in ranking in                     Development
awareness bankwide and in terms of e-channel products (BTN
Mobile), while the level of awareness of BTN savings is still at             The achievements of human capital development are shown by
rank 5 (five).                                                               the number of trainings and the costs spent throughout the current
                                                                             year.




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                                                                                         2023 Annual Report




Table of Comparison of Human Resources Development Targets and Realization

                               Description                      2023 Realization        2023 Target               Achievement

                                     1                                 2                     3                      4=2/3

 Human Capital Development Cost (IDR million)                         95,928               97,050                      99.84%

 Number of Trainings (trainings)                                           206                   175                117.71%

 Number of Training Participants (person)                            308,229              280,320                   109.96%


Throughout 2023, the Company has carried out human resource development through learning and development programs for all
employees using Classroom, Virtual Classroom and Self Learning methods. The achievement percentage for the number of learning and
development participants until December 2023 reached 109.96% or above the predetermined target.


Future Targets (Projection)

Bank BTN has set future targets in accordance with the 2024 Company Work and Budget Plan document. This target setting was based
on several macro assumptions as follows:


Table of Assumptions in Preparing Projections

                                             Macro Assumption                                                   2024

 GDP Growth (% yoy)                                                                                               5.10

 BI 7 Days Reverse Repo Rate (%)                                                                                  5.50

 Inflation (%)                                                                                                     2.9

 Exchange Rate (IDR/USD)                                                                                        15,500

 Loan Growth (%)                                                                                                  9.50

 Third Party funds Growth (%)                                                                                     8.00

Source: Bank BTN Chief Economist Analysis



Production/Operational Projections

Production/operational projections for 2024 are as follows:


Table of Production/Operational Projection                                                                                       (in %)


                                                Description                                            2024 Growth Projections

 Loans and Financing

 Housing Loans                                                                                                 8% - 10%

 Non-Housing Loans                                                                                            30% - 32%

 Total Loans                                                                                                  10% - 12%

 Total Financing                                                                                               13% - 5%

 Total Loans and Financing Provided                                                                           10% - 12%

 Third Party Funds

 Demand Deposits                                                                                               8% - 10%

 Saving Deposits                                                                                              21% - 23%

 Time Deposits                                                                                                11% - 13%

 Total Third Party Funds                                                                                      11% - 13%




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                                    Management Discussion and Analysis
                                    on Bank Performance




Financial Projection

The financial projections for 2024 are as follows:


Table of Financial Projection                                                                                            (in %)


                                                    Description                             2024 Growth Projections

 Financial Position

 Assets                                                                                             9% - 11%

 Liabilities                                                                                        9% - 11%

 Equity                                                                                              7% - 9%

 Income and Profits

 Interest income                                                                                   11% - 13%

 Income from operations                                                                            14% - 16%

 Net income                                                                                        10% - 12%

 Financial Ratios

 CAR                                                                                               19% - 20%

 NPL                                                                                                 < 3,00%

 ROA                                                                                                 1% - 2%

 ROE                                                                                               13% - 15%

 NIM                                                                                                 4% - 5%


Capital Structure Projection

The projected capital structure for 2024 is as follows:


Table of Capital Structure Projection                                                                                    (in %)


                                                    Description                             2024 Growth Projections

 Core Capital (Tier 1)                                                                               (5%) - 7%

 Main Core Capital (Common Equity Tier - CET 1)                                                      (5%) - 7%

 Additional Core Capital (Additional Tier - AT 1)                                                              -

 Supplementary Capital (Tier 2)                                                                    58% - 60%

 Total Capital                                                                                        2% - 4%

 Risk Weighted Assets (RWA)                                                                           3% - 5%

 Minimum Capital Adequeacy Requirement(KPMM)                                                         (0%) - 1%



Dividend Policy Projection

Dividend policy projection information is as follows:


Table of Dividend

                                                                                  Realizaion
                    Description                      Projection 2024
                                                                         2023       2022                    2021

 Capital Plan

 1. Net Income                                            3,607           3,419     3,045                   2,376

 2. Dividend Pay Out (DPO)                                  721            684        609                          238

 3. DPO Ratio                                            20.00%          20.00%    20.00%                 20.00%




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                                                                                                                                                       2023 Annual Report




The basis of the dividend distribution policy is based on the                                                    dividends from the distribution of net income. The amount of
decision of the Annual General Meeting of Shareholders                                                           dividends depends on the dividend policy implemented.
(AGMS) or Extraordinary General Meeting of Shareholders
(EGMS) based on Law No. 40 of 2007 concerning Limited                                                            Marketing Projection
Liability Companies. Factors that are taken into consideration in
determining the amount and payment of dividends include the                                                      In 2024, the campaign strategy will focus on Rebranding the
level of financial health, the level of capital adequacy, and the                                                Bank BTN Logo as well as increasing BTN Mobile activations
need for funds for further business expansion, without reducing                                                  and transactions through increasing savings, both in terms
the rights of the Company’s GMS to determine otherwise in                                                        of increasing the Number of Accounts (NoA) and Volume
accordance with the provisions of the articles of association.                                                   of Accounts (VoA), through optimizing the 360 campaign
The amount of the Company’s dividend will be determined at                                                       strategy. In addition, Plus by BTN Prioritas, BTN Business and
the General Meeting of Shareholders (GMS). Management plans                                                      Internet Banking Business (IBB), BTN Spekta 2024, and BTN
to distribute a dividend payout ratio of 20% if there is a cash                                                  KPR (Subsidized and Non-Subsidized) are included in the 2024
surplus from operational activities after these funds have been set                                              campaign plan as an effort to increase the realization of third
aside for reserve funds, financing activities, capital expenditure                                               party funds (both retail and institutional) , as well as increasing
plans, and the Company’s working capital. Bank BTN receives                                                      the realization of financing credit.


                                                                                        Campaign Plan 2024
                    Jan                   Feb          Mar            Apr               May             Jun           Jul               Aug             Sep           Oct              Nov                  Dec




Primary


             TRANSACTIONAL SAVINGS                                                             REBRANDING BANK BTN
Secondary
POM 1
                                                                                        & TRANSACTIONAL SAVINGS

Secondary                                                                    & INTERNET                                                                                              SUBSIDIZED
POM 2                                                                        BANKING BUSINESS                                                                                         KPR BTN



Festive                        BTN 74th          Festive                                                                         BTN 78th                                                        KPR BTN 48th
Campaign                      Anniversary       Ramadan                                                                         Anniversary                                                      Anniversary
                                Festive          Eid-Fitr                                                                         Festive                                                          Festive




                     •     BTN E-Channel Products and Promos (BTN                  •     BTN Specta                                           •     KUR and KUMK Products and Programs
Always On                  Mobile, IB and ATM)                                     •     Priority BTN Services and Programs                   •     Other BTN Bank Products, Programs and Services
                     •     BTN Visa Debit Card Products and Promos                 •     Non-Subsidized KPR, Subsidized KPR, KAR and          •     Corporate Communication
                     •     BTN Batara Savings and BTN Slap!                              KRING products and programs                          •     Festive
                     •     BTN Bisnis and IBB Savings                              •     Commercial Loan Financing Products                   •     Government Communication
                     •     KPR and BTN Properti                                    •     Sharia Products and Programs




                                                                                               Event Plan 2024
                     Jan                  Feb          Mar            Apr                May            Jun               Jul           Aug              Sep          Oct                  Nov              Dec




                                                                                                               HGCTHI FEST
                                                 Jakarta       Bandung          Semarang          Surabaya        Medan          Balikpapan       Palembang      Makasar        Denpasar
            Market Outlook
             & Launching
              New Debit            HUT
              Card BTN            Ke-74
                                   BTN                                                                                              BTN                                         BTN JWF
                                                    BTN           Roadshow BTN Jakarta             BTN JIM                        Property         MotoGP
                                                Anniversary       International Marathon                                                                                      (Wedding and
                                                                                                 (Event Day)                      Expo di 6       Mandalika
                                                  Festival               (BTN JIM)                                                                                            Housing Expo)
                                                                                                                                    Kota            Series                                        KPR BTN 48th
                                                                                                                                                                                                  Anniversary
                                                                                                                                                                                                    Festive



            Chinese New
             Year (CNY)          Launching                    Homecoming            BTN
                                                BTN Bisnis
            Jakarta and          New BTN                      (Mudik) with       Property
                                                Ramadan                                          Sheila On 7
              Surabaya         (Logo, Tower                     BUMN            Expo in 6                                                                                       Joyland
                                                 Savings                                           Concert
                                 dan New                                        (six) Cities                                                                                    Festival
                                   Card)




                                                                                                                      PT Bank Tabungan Negara (Persero) Tbk                                                       303
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                                    Management Discussion and Analysis
                                    on Bank Performance




HR Development Projection

The HR development projections for 2024 are as follows:


Table of HR Development Projection

                                                 Description                                                         2024 Projections

 Human Capital Development Cost (million IDR)                                                                              104,190

 Number of Trainings (trainings)                                                                                               210

 Number of Training Participants (person)                                                                                  290,775




Evaluation of Long Term Plans (RJP)

Bank BTN has a Corporate Plan 2021-2025, the Company is                        Board of Commissioners every month. An evaluation of the long-
always evaluating the long-term plan (Corporate Plan 2021-                     term plan was carried out to see the suitability of the plan in an
2025). Evaluation of long-term plans is carried out every year                 effort to achieve BTN’s vision in 2025, namely to become The
by the Board of Directors and Board of Commissioners. In 2023,                 Best Mortgage Bank in Southeast Asia. The results of this long-
evaluation of long-term plans will be carried out at the Board of              term plan evaluation serve as guidelines and considerations in
Directors Meeting and the Board of Directors Meeting with the                  preparing the 2024 RKAP.



                                                      The Best Mortgage Bank in Southeast Asia 2025

                   Measures of the Vision and Aspiration Milestones of the
                                                                                    Achievements in 2023               Key Metrics in 2025
                              Corporate Plan for 2021-2025


                                                                                          Cost of Fund                     Cost of Fund
                          Increase low cost funding 2 times to IDR270 Tn
                                                                                            3,7%                             3,9%


                          Encouraging affordable access to housing for                     KPR Unit                          Unit KPR
                          more than 6 M Indonesians                                   588 Thousand                        1.5 Million


                          Building a one stop shop financial solution for                  Ratio FBI                         Rasio FBI
                          3 M consumers related to housing                                 12,6%                             12,5%


                          Become a digital innovator and                                      CIR                              CIR
                          home of Indonesia’s best talent                                  46,3%                             46,0%


                                                                                           NPL Gross                        NPL Gross
                          Build a high quality portfolio with low NPL levels
                                                                                            3,0%                             3,0%


                                                                                             ROE                               ROE
                          High and sustainable profitability with ROE~20%
                                                                                           13,5%                             19,8%




In supporting strategic achievements in 2025, Bank BTN                         consisting of initiatives in the fields of Funding, Lending and
has determined 3 (three) main focuses of strategic initiatives                 Enabler (Human Capital, Operation, Finance).




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                                                                                                                                                 2023 Annual Report




                        FUNDING: Retail, Institutional & Wholesale
                      1. Develop electronic channels 2. Develop retail customer  3. Develop Operational Risk         4. Developing products and        5. Develop a retail customer   6. Developing CASA in the
                      and activate retail banking    acquisition/activation      Readiness and Fraud Risk            activating retail banking         activation strategy            business segment
                      transactions (Mobile Banking, strategies on channels       Strategy                            transactions
                      EDC, QRIS, & related           (Mobile Banking, EDC, ORIS,
                      channels)                      & related channels)


                      7. Increased Sales of Foreign   8. Develop Trade Finance and 9. Prepare a Transaction          10. Implementation of the
                      Exchange & Securities           Bank Guarantee Business      Banking Road Map                  Single Relationship Model for
                      Transactions with Customers                                                                    Corporate Segments


                        LENDING: KPR, Personal Loan, SME, Asset Management
                      1. Building a KPR Business      2. Develop an alternative      3. Optimizing Sales Channels 4. Building a High Yield Loan        5. Expansion of High Yield     6. Develop a Collection
                      Model for the Emerging          proxy income model to          for personal loan offers     business in the consumer             Loan Business for SMEs         Strategy for the SME Segment
                      Affluent Segment                increase the approval rate     via digital (New Mobile      credit segment




   35
                                                                                     Banking/BTN Properti) &
                                                                                     Telesales

                      7. Centralize the SME credit    8. Implementation of the new
                      process in the MSME Process     SME business process and
                      Center                          SME Decision Engine


                        ENABLER: Human Capital, Operations, Finance
   initiatives 1. Develop HCBP to align HC 2. Refine HC’s organizational 3. Further improvements                     4. Implementing a multi-      5. Apply systematic                6. Implement integrated
 implemented strategy with Business and structure and design a            to increase operational                    sourcing strategy and running productivity measurement           performance management
               answer the Bank’s needs     grading system that is in line excellence and HR                          an on boarding program        methodologies and matrices         principles and governance
    in 2023                                with business needs            management practices                       for new recruits and internal for the business and support       and apply multi-source
                                                                                                                     movements                     segments                           performance assessments to
                                                                                                                                                                                      ensure overall objectivity


                      7. Align remuneration systems 8. Sharpen learning              9. Carry out succession         10. Activate the 4 EVP Pillars-   11. Increasing the             12. Implement integrated
                      and incentive programs to     strategies, apply coaching       management to ensure the        Learn, Grow, Contribute and       internalization of AKHLAK      HCIS to support operational
                      attract. retain and motivate  consistently and carry out       fulfillment of key/critical     Engagement in encouraging         culture and the four pillars   excellence, data-based
                      employees                     interventions to support a       positions and close the         increased branding of             of Bank BTN culture through    decision making. As well
                                                    learning culture                 generation gap                  Bank BTN                          continuous optimization of     as providing a seamless
                                                                                                                                                       Change Agent Networks and      employee experience
                                                                                                                                                       Cultural Programs

                      13. Implementation of           14. Rolloute-record            15. Development of              16. Implement an SBU              17. Review/Rebranding of
                      predictive and productivity-    (Centralization and            Profitability Measurement.      structure to build a              Bank BTN
                      based workforce planning        Digitization) in 30 KC         Systems                         performance-driven
                                                                                                                     organization




In 2023, corresponded to the Company’s Transformation Journey                                              the Company’s strategy in improving credit quality, expanding
phase in 2023 is “Digital Disruption to Master the Housing                                                 high yield credit and optimizing operational income besides
Ecosystem”, Bank BTN succeeded in exceeding the profit target                                              flowers. The profit in 2023 will be the largest profit in the history
set, net profit in 2023 was realized at IDR3.50 trillion with                                              of the Company’s existence.
growth of 14.97% (yoy), this increase was due to the success of



Dividend Policy, Announcement and Payment

Dividend Policy

The policy basis for dividend distribution was based on the                                                to determine otherwise in accordance with the provisions of the
resolution of the Annual General Meeting of Shareholders                                                   articles of association. Based on these matters, unless there were
(AGMS) or the Extraordinary General Meeting of Shareholders                                                other fundamental reasons, management plans to pay a minimum
(EGMS) based on Law no. 40 of 2007 concerning Limited                                                      cash dividend of 20% of net profit each year.
Liability Companies. The amount of Bank BTN dividends was
determined at the General Meeting of Shareholders (GMS).                                                   Dividend Announcement and Payment

The factors considered in determining the amount and payment                                               Information regarding the announcement and payment of
of dividends included the level of financial soundness, the level                                          dividends for the 2022-2021 financial year is presented as
of capital adequacy, the need for funds for further business                                               follows.
expansion, without prejudice to the right of the Bank BTN GMS

Table of Announcement and Payment of Dividends for Fiscal Year 2022 - 2021

                                      Description                                                                  Fiscal Year 2022                                        Fiscal Year 2021

 Net income (IDR)                                                                                                  3,045,071,859,198                                      2,376,225,756,803

 Cash Dividend                                                                                                      609,014,371,840                                          237,622,575,680

 Non-Cash Dividend *)                                                                                                                        -                                                      -

 Number of Shares (qty)                                                                                              14,034,444,413                                            10,590,000,000

 Cash Dividend per Share (IDR)                                                                                                       43.39                                                   22.43



                                                                                                                   PT Bank Tabungan Negara (Persero) Tbk                                                 305
Page 308
                                       Management Discussion and Analysis
                                       on Bank Performance




                                Description                                     Fiscal Year 2022                    Fiscal Year 2021

 Non-Cash Dividend per Share *)                                                                  -                                   -

 Dividend Pay Out Ratio (%)                                                                    20                                  10

 Announcement Date                                                                 March 17, 2023                      March 04, 2022

 Cash Dividend Payment Date                                                         April 14, 2023                     March 31, 2022

 Non-Cash Dividend Payment Date*)                                                                -                                   -

Note: *) The Company does not have Non-Cash dividends



Announcement and Payment of Dividend For Fiscal                             2. 80% (eighty percent) or IDR2,436,057,487,358 (two trillion
Year 2022                                                                      four hundred thirty-six billion fifty-seven million four hundred
                                                                               eighty-seven thousand three hundred and fifty-eight Rupiah)
In 2023, the Company distributed cash dividends for the 2022                   as retained earnings.
financial year in accordance with the results of the 2023 Annual
GMS decision dated March 16, 2023. Based on the 2023                        Announcement and Payment of Dividend for Fiscal
Annual GMS, Shareholders decided to approve and determine                   Year 2021
the use of the Company’s net profit for the 2022 financial year
amounting to IDR3,045,071,859,198 (three trillion forty-five                In 2022, the Company distributed the 2021 Fiscal Year cash
billion seventy-one million eight hundred and fifty-nine thousand           dividends in accordance with the results of the 2022 Annual
one hundred and ninety-eight Rupiah) as follows:                            GMS decision dated 02 March 2022. Based on the 2022
1. In the amount of 20% (twenty percent) or IDR609,014,371,840              Annual GMS, Shareholders decided to approve the use of
     (six hundred nine billion fourteen million three hundred               the Company’s Fiscal Year 2021 Net Income amounting to
     seventy one thousand eight hundred and forty Rupiah) as                IDR2,376,225,756,803 (two trillion three hundred seventy six
     cash dividends to Shareholders paid under the following                billion two hundred twenty five million seven hundred fifty six
     conditions:                                                            thousand eight hundred three rupiah) as follows:
     a. Dividends from the Government of the Republic of                    1. An amount of 10% (ten percent) or IDR237,622,575,680
          Indonesia for ownership of 60% (sixty percent) shares                  (two hundred thirty-seven billion six hundred twenty-two
          amounting to IDR365,408,623,104 (three hundred                         million five hundred seventy-five thousand six hundred
          sixty five billion four hundred eight million six hundred              and eighty rupiah) is determined as cash dividends to
          twenty three thousand one hundred four Rupiah), was                    Shareholders who will paid under the following conditions:
          deposited into the State General Treasury Account in                   a. Specifically, the Government’s share of dividends for
          Rupiah currency.                                                            ownership of 60% (sixty percent) shares amounting to
     b. Other Shareholder Dividends for ownership of                                  IDR142,573,545,408 (one hundred forty-two billion
          40% (forty percent) of public shares amounting to                           five hundred seventy-three million five hundred forty-
          IDR243,605,748,736 (two hundred forty three billion                         five thousand four hundred and eight rupiah) will be
          six hundred five million seven hundred forty eight                          deposited into the State General Treasury Account .
          thousand seven hundred thirty six Rupiah) was paid                     b. Grant authority and power to the Company’s Directors
          to shareholders proportionally according to share                           with the right of substitution to determine the schedule
          ownership.                                                                  and procedures for distribution of Fiscal Year 2021
     c. Grant authority and power to the Company’s Directors                          dividends in accordance with applicable regulations.
          with substitution rights to determine the schedule and            2. 90% (ninety percent) or IDR2,138,603,181,123 (two trillion
          procedures for distributing dividends for the 2022                     one hundred thirty eight billion six hundred three million
          financial year in accordance with applicable regulations.              one hundred eighty one thousand one hundred twenty three
                                                                                 rupiah) is determined as retained earnings balance.



Realization of Use of Proceeds from Public Offering

Throughout 2023, no bonds were issued so there was no                       from the public amounting to IDR1,653,333,318,000, all of
obligation for the Company to report the proceeds from the                  which was deposited into Bank BTN Capital after deducting the
bonds. However, there was additional capital through a rights               issuance costs. Detailed information regarding additional capital
issue/privatization mechanism with State Capital Participation              through the rights issue/privatization mechanism is presented in
Report (PMN) amounting to IDR2,479,999,977,600, plus funds                  the State Capital Participation Report (PMN) section.




306           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




Material Information on Investment, Expansion, Divestment, Business Merger/Consolution,
Acquisition, or Debt and Capital Restructuring

Investment

As one of the business activities in the banking industry, the        in the form of debt securities made by BTN as of December 31,
Bank invests in the form of debt securities, both issued by the       2023 and 2022:
Government and corporations. Below are details of investments

Table of Securities Investment                                                                                              (in IDR million)


                                                                                                     Value
                                     Description
                                                                                   2023                              2022

 Fair value through profit or loss                                                 4,838,453                        20,385,030

 Fair value through other comprehensive income                                    14,440,327                        14,988,242

 Amortized cost                                                                   21,921,022                        18,314,868

 Total Securities                                                                 41,199,803                        53,688,141




Throughout 2023 the Sharia Business Unit (UUS) has invested in bonds with a total accumulation of IDR126.29 trillion. In the same year,
investment in these bonds which had matured or been disbursed amounted to IDR116.70 trillion


Expansion

In 2023, the Company through the Procurement & Fixed Asset            6. On April 4 2023, work will begin on the revitalization and
Management Division (PFAD) expanded in terms of procurement              renovation of the Bank BTN Education and Training Center
and management of fixed assets as follows:                               building located on Jalan KH. Mas Mansyur No. 86 Tanah
1. On December 18 2023, purchase of a multi-storey building              Abang, Central Jakarta with a value of IDR33.8 billion.
    consisting of 28 floors and 2 basements worth IDR1.28                Furthermore, the building will be operated as the Sharia
    trillion located on Jalan H.R. Rasuna Said No. 01 RT.001             Business Unit Bank BTN Head Office.
    RW.006, Guntur Village, Setiabudi District, South Jakarta.        7. On November 22 2023, work will begin to utilize the
    Subsequently, the building was called the BTN Tower 2                Company’s land located on Jalan Raya Gandul – Cinere,
    Building and became the operational office for the Business          Depok City, which has an area of ± 5 Ha. The land will
    Division, Regional Office and Branch Office.                         be developed into BTN ECOPARK, and it is planned that
2. On September 14 2023, purchase of an office building in the           a record center building, archives building, data center
    form of a shophouse worth IDR3.33 billion located in Komp.           building, training center building and sub-branch office will
    BSD, Ruko Sector VII E Blok K Jl. Raya Serpong, Tangerang.           be built. Development progress is at the land maturity stage.
    The building is located adjacent to the Bumi Serpong Damai
    Branch Office (KC BSD) and is operated as an extension of         Throughout 2023, the Company has expanded in terms of
    the KC BSD building.                                              developing its office network by adding 2 (two) Sharia Branch
3. On November 10 2023, purchase of an office building in             Offices (KCS) (KCS Jember, KCS Pontianak), then the Company
    the form of a shophouse worth IDR1.27 billion located on          has also opened a network of 7 Conventional Sub-Branch Offices
    Jl. IN. Panjaitan Km. 9 Bintan Center Plaza Complex Blok          (KCP). (seven) Offices (KCP Soreang, KCP Sentul Industrial Area,
    Bunga, Tanjung Pinang, Riau Islands Province. The building        KCP Tanah Abang Market Block A, KCP RS Bhayangkara Kediri,
    is located adjacent to the Tanjung Pinang Branch Office           KCP Manna, KCP Barabai and KCP Wonosobo). Apart from
    and is operated as an expansion of the Tanjung Pinang KC          Conventional KCPs, the Company also opened 4 Sharia KCPs
    building.                                                         (KCPS) (KCPS Rangkasbitung, KCPS Solok, KCPS Batang and
4. On December 13 2023, land acquisition worth IDR80 billion          KCPS Bantul. In total, the Company’s office network in 2023
    located in the Pondok Indah area, South Jakarta. Next,            consists of 6 (six) Regional Offices, 81 Conventional KCs , 34
    permits are processed for the land for the construction of a      Sharia KCs, 541 Conventional KCPs and 75 Sharia KCPs.
    branch office building.
5. On December 20 2023, procurement and installation of a
    new generator for the BTN Tower Building worth IDR14.8
    billion. The new generator replaces the old generator which
    has been operating for 30 years.




                                                                          PT Bank Tabungan Negara (Persero) Tbk                     307
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                                   Management Discussion and Analysis
                                   on Bank Performance




Divestment                                                              it can affect the decision-making process and the performance
                                                                        of the decision. which can be detrimental to Bank BTN. Bank
Throughout 2023, Bank BTN did not carry out divestment                  BTN realizes the importance of a firm attitude towards controlling
activities                                                              and handling conflicts of interest that occur within Bank BTN, so
                                                                        that effective business management can be created in achieving
Business Merger/Consolution                                             Bank BTN’s goals, free from all forms of corruption, collusion
                                                                        and nepotism (KKN) and harmonious relationships with all
Throughout 2023, Bank BTN did not carry out business merger/            stakeholders.
consolidation activities.
                                                                        Bank BTN always complied with the applicable provisions in
Acquisition                                                             terms of transactions that contained conflicts of interest, as stated
                                                                        in the OJK Regulation Number 42/POJK.04/2020 Concerning
Throughout 2023, Bank BTN did not carry out acquisition                 Affiliated Transactions and Transactions with Conflicts of Interest
activities.                                                             and OJK Circular Letter Number 13/SEOJK. 03/2017 dated
                                                                        March 17, 2017 concerning Implementation of Governance for
Debt and Capital Restructuring                                          Commercial Banks. From an internal standpoint, Bank BTN had
                                                                        a Transaction Policy Containing Conflicts of Interest as stipulated
Throughout 2023, Bank BTN did not carry out debt and capital            in the Guidelines and Work Procedures for the Board of Directors
restructuring activities                                                and the Board of Commissioners.


                                                                        The policy of providing funds to related parties that contained
Information on Material Transactions                                    conflicts of interest was contained in a separate Directors Regulation
Containing Conflicts of Interest and/or                                 which stipulated that Bank BTN was prohibited from providing
Transactions with Affiliates Parties                                    funds to related parties without the approval of the Board of
                                                                        Commissioners. In the event of a conflict of interest between Bank
Material Transactions were any transactions made by public              BTN and shareholders, members of the Board of Commissioners,
companies or controlled companies that met the transaction              members of the Board of Directors, Executive Officers and/
value limit equal to 20% (twenty percent) or more of the Public         or other parties related to Bank BTN, members of the Board of
Company’s equity (OJK Regulation Number 17/POJK.04/2020                 Commissioners, members of the Board of Directors and Executive
Concerning Material Transactions and Changes in Business                Officers were prohibited from taking actions that might harm or
Activities.                                                             reduce profits of Bank BTN and had todisclose the conflict of interest
                                                                        in every decision. Bank BTN also properly documented every
Transactions Containing Conflicts of Interest                           disclosure in accordance with applicable regulations. Disclosure of
                                                                        conflict of interest was set forth in the minutes of meeting at least
In accordance with the provisions of the OJK Regulation Number          including the name of the party having the conflict of interest, the
42/POJK.04/2020 Concerning Affiliated Transactions and                  main issue of the conflict of interest and the basis for consideration
Conflicts of Interest Transactions, a conflict of interest was the      for making the decision.
difference between the economic interests of a public company
and the personal economic interests of members of the board             In principle, every Bank BTN employee avoided making decisions
of directors, members of the board of commissioners, major              that had situations and conditions where there was a conflict of
shareholders or controllers who can be detrimental to the said          interest. Lending to the Directors, Board of Commissioners and
public company.                                                         employees of Bank BTN was carried out based on reasonable
                                                                        limits and in accordance with applicable Bank BTN regulations
Bank BTN’s business activities are inseparable from the                 without differentiating it from other customers (arm’s length basis).
relationships and interactions between individuals within Bank
BTN and with other parties, there is a potential conflict of interest   Throughout 2023, there were no transactions containing conflicts
that may be unavoidable between one party and another, so that          of interest




Table of transactions containing conflicts of interest

        Name                   Position           Decision Maker        Transaction Type       Transacttion Value          Information

          Nil                    Nil                     Nil                   Nil                     Nil                      Nil




308          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                     2023 Annual Report




Affiliated Transactions

Based on the provisions of the OJK Regulation Number 42/                     During 2023 there were no material transactions that meet the
POJK.04/2020 Concerning Affiliated Transactions and                          category of affiliated party transactions.
Transactions with Conflicts of Interest, Affiliates are:
1. Family relations by marriage and descent to the second                    Related Party Transactions
    degree, both horizontally and vertically;
2. The relationship between the party and the employee,                      In carrying out its business, the Bank carries out transactions with
    director or commissioner of the party;                                   related parties as defined in PSAK No. 7 concerning “Related
3. Relationship between 2 (two) companies where there is 1                   Party Disclosures”. A party is considered related to the Bank if:
    (one) or more members of the same Board of Directors or                  a. A party that directly, or indirectly through one or more
    Board of Commissioners;                                                      intermediaries, a party (i) controls, or is controlled by, or
4. The relationship between the Company and the Party, either                    is under common control with, the Bank; (ii) has significant
    directly or indirectly, controls or is controlled by the company;            influence over the Bank; or (iii) has joint control over the
5. Relationship between 2 (two) companies that are controlled,                   Bank;
    either directly or indirectly, by the same party; or                     b. A party that is in the same business group as the Bank;
6. Relationship between the Company and Major Shareholders.                  c. A party that is a joint venture where the Bank is the venturer;
                                                                             d. A party is a member of the Bank’s key management
Furthermore, Affiliate transactions are any activities and/                      personnel;
or transactions carried out by public companies or controlled                e. A party is a close family member of the individual described
companies with Affiliates of public companies or Affiliates of                   in (a) or (d);
Members of the Board of Directors, Members of the Board of                   f. A party is a post-employment benefits program for employee
Commissioners, Major Shareholders, or Controlling, including                     benefits from the Bank or a Bank-related entity;
any activities and/or transactions carried out by Public Company             g. A party is an entity that is controlled, jointly controlled
or Controlled Company for the benefit of Affiliates of Public                    or significantly influenced by several entities, directly or
Companies or Affiliates of members of the Board of Directors,                    indirectly, individuals as described in point (d) or (e).
Members of the Board of Commissioners, Major Shareholders,
or Controllers.




Name of Parties Under Transactions and Nature of Relation

Related parties conducting transactions with the Company are listed in the following table:


Table of Related Parties

              Related Parties                             Type of Relation                        Element of Related Party Transaction

 Government of the Republic of Indonesia     The majority shareholder is through the       Government Bonds, Loan provided and
 (RI)                                        Indonesian Ministry of Finance                sharia financing/receivables
                                                                                           Current accounts with other banks, placements with
                                             Under the same control through the Central
 PT Bank Mandiri (Persero) Tbk                                                             Bank Indonesia and other banks, securities, acceptance
                                             Government of the Republic of Indonesia
                                                                                           liabilities, loans received and securities issued
                                                                                           Current accounts with other banks, Placements with
                                             Under the same control through the Central
 PT Bank Negara Indonesia (Persero) Tbk                                                    Bank Indonesia and Other Banks, Securities, Securities
                                             Government of the Republic of Indonesia
                                                                                           Issued, Acceptance Liabilities
                                                                                           Current accounts with other banks, placements with
                                             Under the same control through the Central
 PT Bank Rakyat Indonesia (Persero) Tbk                                                    Bank Indonesia and other banks, securities and
                                             Government of the Republic of Indonesia
                                                                                           securities issued
                                             Under the same control through the Central    Current accounts with other banks, and placements with
 PT Bank Syariah Indonesia Tbk
                                             Government of the Republic of Indonesia       Bank Indonesia and other banks
                                             Subsidiaries of State-Owned Enterprises       Placements with Bank Indonesia and Other Banks,
 PT Bank Mandiri Taspen
                                             (BUMN)                                        Securities




                                                                                 PT Bank Tabungan Negara (Persero) Tbk                       309
Page 312
                                    Management Discussion and Analysis
                                    on Bank Performance




                Related Parties                          Type of Relation                        Element of Related Party Transaction

PT Bank Raya Tbk (formerly PT Bank Rakyat    Subsidiaries of State-Owned Enterprises      Placements with Bank Indonesia and Other Banks,
Indonesia Agroniaga Tbk)                     (BUMN)                                       Deposits from Other Banks, and Securities Issued
                                             Under the same control through the Central   Placements with Bank Indonesia and Other Banks,
Indonesian Export Financing Institute
                                             Government of the Republic of Indonesia      Securities
                                             Under the same control through the Central
PT Hutama Karya (Persero)                                                                 Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Under the same control through the Central   Securities and Loans provided and Sharia financing/
Perum Perumnas
                                             Government of the Republic of Indonesia      receivables, Acceptance Bill
                                             Subsidiaries of State-Owned Enterprises      Acceptance and Credit Receivables and Sharia
PT PP Properti Tbk
                                             (BUMN)                                       Financing/receivables
                                             Subsidiaries of State-Owned Enterprises
PT Wijaya Karya Bangunan Gedung Tbk                                                       Issued Acceptance and Guarantee Bill
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Wijaya Karya Industri Energi                                                           Acceptance Bill
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Wijaya Karya Industri & Konstruksi                                                     Acceptance Bill
                                             (BUMN)
State Printing Company of the Republic of    Under the same control through the Central
                                                                                          Loans provided and sharia financing/receivables
Indonesia (Perum PNRI)                       Government of the Republic of Indonesia
                                             Subsidiaries of State-Owned Enterprises
PT Danareksa Investment Management                                                        Securities and Securities Issued
                                             (BUMN)
                                             Under the same control through the Central
PT Adhi Karya (Persero) Tbk                                                               Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Under the same control through the Central
PT Angkasa Pura II (Persero)                                                              Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Under the same control through the Central
PT Dok and Perkapalan Surabaya (Persero)                                                  Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Subsidiaries of State-Owned Enterprises
PT HK Realtindo                                                                           Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Under the same control through the Central
PT Indah Karya (Persero)                                                                  Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Subsidiaries of State-Owned Enterprises
PT Jasamarga Bali Tol                                                                     Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Mandiri Manajemen Investasi                                                            Securities and Securities Issued
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Patra Jasa                                                                             Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises      Securities, loans provided and sharia financing/
PT Permodalan Nasional Madani (Persero)
                                             (BUMN)                                       receivables
                                             Under the same control through the Central
PT Amarta Karya (Persero)                                                                 Loans provided and sharia financing/receivables
                                             Government of the Republic of Indonesia
                                             Under the same control through the Central   Securities, loans provided and sharia financing/
PT Perusahaan Pengelola Aset (Persero)
                                             Government of the Republic of Indonesia      receivables
                                             Under the same control through the Central
PT Taspen (Persero)                                                                       Securities Issued
                                             Government of the Republic of Indonesia
                                             Under the same control through the Central   Loans provided and sharia financing/receivables and
PT Virama Karya (Persero)
                                             Government of the Republic of Indonesia      guarantees issued
                                             Subsidiaries of State-Owned Enterprises
PT Waskita Bumi Wira                                                                      Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Waskita Karya Realty                                                                   Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT PPA Finance                                                                            Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Subsidiaries of State-Owned Enterprises
PT Waskita FIM Perkasa Realti                                                             Loans provided and sharia financing/receivables
                                             (BUMN)
                                             Under the same control through the Central   Loans provided and sharia financing/receivables and
PT Pertamina (persero)
                                             Government of the Republic of Indonesia      securities
                                             Under the same control through the Central   Loans provided and sharia financing/receivables and
PT Yodya Karya (Persero)
                                             Government of the Republic of Indonesia      guarantees issued




310         PT Bank Tabungan Negara (Persero) Tbk
Page 313
                                                                                                    2023 Annual Report




              Related Parties                         Type of Relation                        Element of Related Party Transaction

                                          Subsidiaries of State-Owned Enterprises
PT Adhi Persada Properti                                                               Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Perumnas Jakabaring                                                                 Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Perumnas Sentraland                                                                 Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Perumnas TOD Tanjung                                                                Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Sinergi Investasi Properti                                                          Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Perumnas Pondok Cina                                                                Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises      Loans provided and sharia financing/receivables and
PT Adhi Commuter Property
                                          (BUMN)                                       Other Receivables
                                          Under the same control through the Central   Loans provided and sharia financing/receivables and
PT Angkasa Pura I (Persero)
                                          Government of the Republic of Indonesia      Securities
                                          Subsidiaries of State-Owned Enterprises
PT Jalin Pembayaran Nusantara                                                          Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Reasuransi Nasional Indonesia                                                       Securities Issued
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Tugu Reasuransi Indonesia                                                           Securities Issued
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Puspetindo                                                                          Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Asuransi Kredit Indonesia                                                           Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Asuransi Jasa Indonesia                                                             Securities Issued
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Asuransi Jasa Raharja                                                               Securities Issued
                                          (BUMN)
                                          Under the same control through the Central
PT Perusahaan Listrik Negara (Persero)                                                 Credits granted and Securities
                                          Government of the Republic of Indonesia
                                          Subsidiaries of State-Owned Enterprises
PT Nindya Karya (Persero)                                                              Credit given and Guarantee issued
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Centurion Perkasa Iman                                                              Credit given and Guarantee issued
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Energi Pelabuhan Indonesia                                                          Issued guarantee
                                          (BUMN)
                                          Under the same control through the Central
Perum Jaminan Kredit Indonesia                                                         Securities Issued
                                          Government of the Republic of Indonesia
                                          Subsidiaries of State-Owned Enterprises
PT Daya Mitra Telekomunikasi                                                           Securities
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT Industri Kereta Api                                                                 Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Subsidiaries of State-Owned Enterprises
PT AXA Mandiri Financial Services                                                      Securities Issued
                                          (BUMN)
PT Penjaminan Infrastruktur Indonesia     Under the same control through the Central
                                                                                       Securities Issued
(Persero)                                 Government of the Republic of Indonesia
                                          Under the same control through the Central
PT Reasuransi Indonesia Utama (Persero)                                                Securities Issued
                                          Government of the Republic of Indonesia
                                          Subsidiaries of State-Owned Enterprises
PT Tugu Pratama Indonesia                                                              Securities Issued
                                          (BUMN)
                                          Under the same control through the Central   Securities - Securities, Loans received and Subordinated
PT Sarana Multigriya Finance (Persero)
                                          Government of the Republic of Indonesia      Loans and subordinated securities
                                          Subsidiaries of State-Owned Enterprises
PT Sinergi Colomadu                                                                    Loans provided and sharia financing/receivables
                                          (BUMN)
                                          Under the same control through the Central
PT Perusahaan Gas Negara (Persero) Tbk                                                 Securities
                                          Government of the Republic of Indonesia




                                                                             PT Bank Tabungan Negara (Persero) Tbk                          311
Page 314
                                      Management Discussion and Analysis
                                      on Bank Performance




                Related Parties                             Type of Relation                          Element of Related Party Transaction

                                               Under the same control through the Central
PT Pelabuhan Indonesia II (Persero)                                                            Securities
                                               Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises
PT PP Properti Jababeka Residence                                                              Loans provided and sharia financing/receivables
                                               (BUMN)
PT Bahana Pembinaan Usaha Indonesia            Under the same control through the Central
                                                                                               Securities
(Persero)                                      Government of the Republic of Indonesia
                                               Under the same control through the Central
PT Pegadaian                                                                                   Securities
                                               Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises
PT BNI Asset Management                                                                        Issued Securities and securities
                                               (BUMN)
                                               Under the same control through the Central
PT Waskita Karya (Persero) Tbk                                                                 Securities
                                               Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises         Loans provided and sharia financing/receivables and
PT Peruri Properti
                                               (BUMN)                                          guarantees issued
                                               Subsidiaries of State-Owned Enterprises
PT Waskita Beton Precast Tbk                                                                   Securities
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT BRI Manajemen Investasi                                                                     Securities
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT Pos Indonesia (Persero)                                                                     Issued guarantee
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT Telkom Satelit Indonesia                                                                    Issued guarantee
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT Inhutani V                                                                                  Loans provided and sharia financing/receivables
                                               (BUMN)
Public Housing Savings Management              Under the same control through the Central
                                                                                               Loans provided and sharia financing/receivables
Agency                                         Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises         Guarantees issued, other receivables, loan and sharia
PT PP Urban
                                               (BUMN)                                          financing/receivables
                                               Under the same control through the Central
PT Aviasi Pariwisata Indonesia (Persero)                                                       Loans provided and sharia financing/receivables
                                               Government of the Republic of Indonesia
                                               Under the same control through the Central
PT Bio Farma (Persero)                                                                         Loans provided and sharia financing/receivables
                                               Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises         Loans provided and Sharia financing/receivables and
PT Inka Multi Solusi Service
                                               (BUMN)                                          other receivables
                                               Under the same control through the Central      Loans and sharia financing/receivables and guarantees
PT PAL Indonesia (Persero)
                                               Government of the Republic of Indonesia         issued
PT Pengembangan Pariwisata Indonesia           Under the same control through the Central
                                                                                               Loans provided and sharia financing/receivables
(Persero)                                      Government of the Republic of Indonesia
PT Perum Pengangkutan Penumpang                Under the same control through the Central
                                                                                               Loans provided and sharia financing/receivables
Djakarta                                       Government of the Republic of Indonesia
                                               Subsidiaries of State-Owned Enterprises
PT Wika Realty                                                                                 Loans provided and sharia financing/receivables
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT Wika Gedung                                                                                 Miscellaneous bills
                                               (BUMN)
                                               Subsidiaries of State-Owned Enterprises
PT Bahana TCW Invesment Management                                                             Securities
                                               (BUMN)
Key Management includes Directors,
                                                                                               Loans provided and Sharia Financing/receivables,
Commissioners, Audit Committee, Division       Relationship of control of company activities
                                                                                               Deposits from Customers, and Temporary Syirkah Funds
Heads and Branch Heads




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                                                                                                     2023 Annual Report




Reasonable Transaction and Reasons for the                                    Realization of Related Party Transactions
Transaction
                                                                              The following are details of the realization of related party
Related party transactions occur due to the Company’s business                transactions due to ownership relationships with the Government
needs. All transactions were carried out normally and fairly                  of the Republic of Indonesia and related party transactions with
(arm’s length transactions) as transactions with other parties. The           Key Management.
Company guarantees that all transactions are free from conflicts
of interest and comply with applicable laws and regulations.



Table of Related Party Transactions Due to Ownership Relationships with the Government of the
Republic of Indonesia                                                                                                               (in IDR million)


                                          Description                                            2023                        2022
 Asset
 Current Account in other banks                                                                  1,049,449                    508,322
 Placements with BI and other banks - net                                                               61                           61
 Securities                                                                                      3,851,105                    850,059
 Government Bonds                                                                               35,893,929                 51,964,973
 Loans and Sharia financing/receivables                                                         27,678,581                 19,594,018
 Acceptance receivable                                                                              68,746                    131,356
 Other Bills                                                                                       106,385                     61,169
 Total assets for related parties                                                               68,648,256                 73,109,958
 CKPN from related parties                                                                      (1,227,528)                  (900,235)
 Total assets for net related parties                                                           67,420,728                 72,209,723
 Percentage of total assets of related parties to total assets                                     15,37%                      17,96%
 Liabilities
 Deposits from customers                                                                       196,674,002                173,906,896
 Acceptances payable                                                                              224,045                     118,525
 Securities issued                                                                               5,868,525                  4,355,008
 Loan received                                                                                  22,453,290                 17,455,685
 Subordinated Loan and Subordinated Effects                                                      4,499,997                  4,499,977
 Total liabilities for related parties                                                         229,719,859                200,336,091
 Percentage of total related party liabilities to total liabilities                                60,27%                      57,01%
 Temporary Syirkah Fund
 Mudharabah Current Account                                                                         11,271                     11,897
 Mudharabah Savings                                                                               133,630                      83,465
 Mudharabah Deposits                                                                             8,899,072                  7,631,970
 Total temporary syirkah funds for related parties                                               9,043,973                  7,727,332
 The percentage of total temporary syirkah funds related to temporary syirkah funds                33,37%                      31,08%
 Interest Income and Profit Sharing
 Placements with BI and other banks                                                               490,484                     282,311
 Securities                                                                                       299,741                     216,020
 Government Bonds                                                                                1,220,648                  1,518,936
 Loans and Sharia financing/receivables                                                          1,195,910                  1,081,237
 Total interest income and profit sharing from related parties                                   3,206,783                  3,098,504
 Percentage of total interest income and profit sharing                                            11,34%                      11,96%
 Interest expense, profit sharing and bonuses
 Deposits from customers                                                                         3,137,470                  2,642,731
 Deposits from other banks                                                                           2,647                          781
 Securities issued                                                                                433,269                     455,401
 Loans received                                                                                   965,111                     843,147
 Securities sold under repurchase agreements                                                        34,593                      4,894
 Subordinated loan and securities                                                                 381,770                     381,760




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                                        Management Discussion and Analysis
                                        on Bank Performance




                                        Description                                       2023        2022
 Mudharabah Current Account                                                                      18          181
 Mudharabah Savings                                                                          1,896       6,521
 Mudharabah Deposits                                                                       149,498      80,613
 Total interest expenses and bonuses from related parties                                 5,106,272   4,416,029
 Percentage of total interest expense, profit sharing and bonuses                           34,38%      40,48%
 Commitments and contingencies on off-balance sheet accounts
 Warraty provided                                                                         1,116,581    426,438
 Irrevocable on-going L/C                                                                    8,840     115,445
 Total commitments and contingencies in off-balance sheet accounts from related parties   1,125,421     541,883
 Percentage of total commitments and contingencies in off-balance sheet accounts            41,28%      43,35%



Table of Related Party Transactions with Key Management                                                      (in IDR million)


                                        Description                                       2023        2022

 Assets

 Loan provided and Sharia receivables/financing                                            94,105     102,781

 Reserve for impairment losses from related parties                                         (288)       (374)

 Total assets for related parties-net                                                      93,817     102,407

 Percentage of total assets                                                                0.02%        0.03%

 Liabilities

 Deposits from customers                                                                  186,924     115,340

 Employee benefits liabilities                                                            288,487     268,476

 Total Liabilities from key management                                                    475,411     383,816

 Percentage of total Liabilities                                                           0.12%        0.11%

 Temporary Syirkah Fund

 Mudharabah Current Account                                                                 2,203             -

 Mudharabah Savings                                                                         8,363       4,962

 Mudharabah Deposits                                                                        9,297       5,221

 Total temporary syirkah funds for related parties                                         19,863      10,183

 The percentage of total temporary syirkah funds related to temporary syirkah funds        0.07%        0.04%

 Interest income and profit sharing

 Loans and sharia financing/receivables                                                     6,821       6,929

 Percentage of total interest income and profit sharing                                    0.02%        0.03%

 Interest expenses, profit sharing and bonuses

 Customer savings                                                                           1,446       1,564

 Syirkah funds                                                                               402         168

 Total interest expense, profit sharing and bonuses                                         1,848       1,732

 Percentage of total interest expense, profit sharing and bonuses                          0.01%        0.03%

 Short Term Rewards:

 Directors                                                                                161,529     131,671

 board of Commissioners                                                                    64,480      51,960

 Key Employees                                                                            216,253     221,825

 Post-Employment Benefits

 Other Key Employees                                                                      200,829     182,874




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                                                                                                          2023 Annual Report




                                     Description                                                     2023                             2022

 Other Long-Term Rewards

 Other Key Employees                                                                                   87,658                          85,602

 Total                                                                                               730,749                          673,932

 Percentage of total employee salary and benefits expenses                                            18.35%                           16.08%



Details of the names of parties related to the realization (value) of           The Board of Directors is required to report the results of the
related party transactions are presented in the notes to Financial              Credit Committee Meeting Decisions for certain debtor threshold
Report No. 43 attached to this Annual Report. These related                     values to the Board of Commissioners on a monthly basis. The
transactions are business activities carried out in order to generate           debtor threshold value provisions are as follows:
business income and are carried out routinely, repeatedly and/                  -   Single debtor ≥ IDR350 billion
or continuously.                                                                -   Group debtor ≥ IDR500 billion
                                                                                Certain debtors as referred to above also include debtors
Transaction Review Mechanism Policy                                             categorized as related parties.


All transactions have gone through a review mechanism                           In 2023 there were no related party transactions that required
according to the type of transaction. Each transaction is                       GMS approval
subjected to a transaction feasibility analysis, including credit
analysis for credit transactions to related parties. Likewise,                  Compliance with Related Regulations and
investment feasibility analysis has been carried out for investment             Conditions
transactions. Likewise with other related party transactions such
as guarantees issued and placements with other banks.                           The Company is always committed to running a prudent
                                                                                business. All transactions have complied with applicable rules
                                                                                and regulations.




Changes In Legislation and Regulations and Their Impact on the Company

Description of changes to statutory regulations in 2023 and their impact on the Company are explained as follows:


Table of Changes in Legal Regulations


                                                                                                                                  Impact on Financial
 No            Legislation                         Setting Tree                     Information on Adjustments Mode
                                                                                                                                      Statement

  1.     Law no. 4 of 2023          Development and Strengthening of the         There are changes and/or adjustments to          The issuance of
         concerning Development     Financial Sector                             the Bank’s internal matters which generally      regulations had no
         and Strengthening of the                                                relate to:                                       quantitative impact
         Financial Sector.                                                       1. Affiliated Parties of the Bank.               on the Financial
                                                                                 2. Bank Confidentiality.                         Statements.
                                                                                 3. Expansion of Criteria for Persons/Parties
                                                                                    Subject to the Prohibition of Insider
                                                                                    Transactions.
                                                                                 4. Financial Services Sector Consumer
                                                                                    Protection.
                                                                                 5. Provisions for Sanctions in Banking Crimes.

  2.     Regulation of the          The main points of regulation include:       There are changes and/or adjustments to          The issuance
         Minister of State-         - Special Assignments.                       the Bank's internal aspects related to the       of regulations
         Owned Enterprises          - Social and Environmental Responsibility    management of social and environmental           did not have a
         of the Republic of           Committee (CSER).                          responsibility.                                  quantitative impact
         Indonesia No. PER                                                                                                        on Financial Reports,
                                    - CSER Program for Micro and Small
                                                                                                                                  it only contains the
         - 1/MBU/03/2023              Business Financing.                                                                         obligation to prepare
         dated March 3, 2023        - CSER and Assistance Program.                                                                Financial Reports
         concerning Special         - Financial Supervision and Reporting                                                         and Implementation
         Assignments and Social       and Implementation of CSER.                                                                 Reports of Social
         and Environmental                                                                                                        and Environmental
         Responsibility Programs                                                                                                  Responsibility of SOEs
         for State-Owned                                                                                                          programs to ministers
         Enterprises.                                                                                                             in Quarterly and
                                                                                                                                  Annual Reports.



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                                  Management Discussion and Analysis
                                  on Bank Performance




                                                                                                                              Impact on Financial
No          Legislation                         Setting Tree                     Information on Adjustments Mode
                                                                                                                                  Statement

 3.   Regulation of the           The main points of regulation include::     There are changes and/or adjustments to the     The issuance of
      Minister of State-          - Principles of good corporate              Bank’s internal matters relating to corporate   regulations did not
      Owned Enterprises             governance, rights and responsibilities   governance and activities.                      have a quantitative
      of the Republic of            of Shareholders/Capital Owners,           - The Board of Directors is obliged to          impact on the
      Indonesia No. PER - 2/        GMS, duties and responsibilities            determine the rules of the Board of           Financial Report,
      MBU/03/2023 dated             of the Board of Directors, Board of         Directors’ meetings.                          it only contains
      March 24, 2023                Commissioners/Supervisory Board.          - The Board of Directors is obliged to          provisions regarding
      concerning Guidelines       - Determination of the internal control       establish an effective Internal Control       the components
      for Governance and            system and implementation of internal       System to safeguard the company’s             contained in the
      Significant Corporate         supervision.                                investments and assets.                       Financial Report
      Activities of State-Owned   - Carrying out the functions of the         - In order to carry out internal supervision,   and the period
      Enterprises.                  company secretary.                          the Board of Directors is required to form    for submitting the
                                  - Implementation of Information               an SPI (Internal Audit Unit) and create an    Financial Report to the
                                    Technology governance.                      internal supervision charter.                 Minister.
                                  - Business ethics and anti-corruption.      - In implementing Information Technology
                                  - System maintenance.                         Governance, the Board of Directors
                                  - The handling of complaints.                 prepares and establishes Information
                                  - Risk management policy.                     Technology Governance guidelines.
                                  - Assessment of the health level of SOEs.   - SOEs is obliged to create a guideline on
                                  - SOEs strategic planning.                    behavior and ethics (code of conduct),
                                  - Determination, evaluation and content       which basically contains business ethics
                                    of RSTI.                                    and behavior values.
                                  - Additional capital investment,            - SOEs are required to have an integrated
                                    restructuring, privatization, merger,       Risk Taxonomy for SOEs and SOEs
                                    consolidation, takeover, separation,        Subsidiaries in accordance with the need
                                    dissolution and liquidation.                to monitor the performance targets of
                                  - Principles, types, SOPs and SOEs            SOEs and SOEs Subsidiaries.
                                    cooperation agreements.                   - To implement this SOEs Ministerial
                                  - Transfers, sales, exchanges,                Regulation, the Directors and/or Board
                                    compensation and fixed assets are           of Commissioners of SOEs are required
                                    used as capital participation.              to prepare and/or adjust internal
                                  - Guidelines for procurement of BUMN          guidelines, organizational structure, and
                                    goods and services, write-off of fixed      Risk management functions and organs in
                                    assets.                                     accordance with the characteristics of the
                                  - Market risk control is carried out          company and the limits of its authority.
                                    through hedging transactions.             - SOPs for Collaboration with Partners are
                                  - Information technology architecture,        prepared and determined by the Board of
                                    Information Technology service              Directors, within 6 (six) months from the
                                    development, Information Technology         date the SOEs Ministerial Regulation is
                                    service continuity, cyber resilience        promulgated.
                                    and security, data management and         - Determination and/or adjustment of
                                    Information Technology implementation       the SOP for the Implementation of
                                    reporting.                                  Procurement of Goods and Services by
                                  - Quarterly reports and annual reports,       the Board of Directors, within 6 (six)
                                    certain reports and report submission.      months of its promulgation.
                                                                              - The SOEs Directors create a black list
                                                                                of Providers accompanied by sufficient
                                                                                reasons, outlined in the SOEs SOP.
                                                                              - The Board of Directors must prepare and/
                                                                                or adjust the Hedging Policy and SOP for
                                                                                Implementing Hedging Transactions.
                                                                              - In order to organize IT, the Board of
                                                                                Directors determines the Information
                                                                                Technology architecture. Information
                                                                                Technology Architecture can be a
                                                                                separate part or document of the
                                                                                Information Technology Strategic Plan.
                                                                              - SOEs are required to have an Information
                                                                                Technology service continuity plan.




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                                                                                                                                 Impact on Financial
No         Legislation                           Setting Tree                      Information on Adjustments Mode
                                                                                                                                     Statement

4.   Regulation of the            The main points of regulation include::       There are changes and/or adjustments to the      The issuance of
     Minister of State-           - Requirements to become a Member of          Bank's internal affairs relating to organs and   regulations had no
     Owned Enterprises              the Board of Directors and Board of         human resources.                                 quantitative impact
     of the Republic of             Commissioners (Articles of Association).                                                     on the Financial
     Indonesia No. PER - 3/       - Talent Management for SOEs Directors.                                                        Statements.
     MBU/03/2023 dated            - Procedures for appointing members of
     March 20, 2023                 the Board of Directors and Board of
     concerning Organs and          Commissioners/Supervisory Board of
     Human Resources of             SOEs (Articles of Association).
     State-Owned Enterprises.     - Procedures for appointing members of
                                    the Board of Directors and Board of
                                    Commissioners/Subsidiary Board.
                                  - Procedures for dismissing members of
                                    the Board of Directors and Board of
                                    Commissioners/Supervisory Board of
                                    SOEs (Articles of Association).
                                  - Income of members of the Board of
                                    Directors and Board of Commissioners/
                                    Supervisory Board of SOEs
                                  - Supporting Organs of the Board of
                                    Commissioners/SOEs Supervisory
                                    Board.

5.   Financial Services           The main points of regulation include::       There are changes and/or adjustments             The issuance of
     Authority Regulation no.     - Implementation Arrangements for             to the Bank's internal processes related         regulations had no
     8 of 2023 dated June           Providing People’s Business Loans (KUR).    to the implementation of the Anti-Money          quantitative impact
     14, 2023 concerning          - Arrangements for distribution of            Laundering, Counter of Terrorism Financing       on the Financial
     the Implementation of          People’s Business Loans (KUR) by            (AML CFT) program, and Prevention of             Statements.
     Anti-Money Laundering,         channeling institutions.                    Funding for the Proliferation of Weapons of
     Prevention of Terrorism      - Regulation of People’s Business Loan        Mass Destruction in the Financial Services
     Financing, and                 Guarantee (KUR).                            Sector (WMS Proliferation). in providing
     Prevention of Funding        - Calculation of collateral for People’s      services to customers as consumers and to
     for the Proliferation          Business Loans (KUR).                       the Bank's counterparties.
     of Weapons of Mass           - The process of distributing People’s
     Destruction in the             Business Loans (KUR) is based on type.
     Financial Services Sector.   - Reporting on distribution of People’s
                                    Business Loans (KUR).
                                  - Guidance, Supervision and Evaluation
                                    of the provision of People’s Business
                                    Loans (KUR).
                                  - Obligations of Financial Service
                                    Providers (PJK) in Preventing Funding
                                    for the Proliferation of Weapons of
                                    Mass Destruction.
                                  - Arrangements for the imposition of
                                    effective, proportional and dissuasive
                                    sanctions.
                                  - PJK’s obligation to submit periodic
                                    Individual Risk Assessments to FSA.
                                  - Requirements and procedures for PJK
                                    cooperation with third parties in the
                                    context of face-to-face and non-face-to-
                                    face verification via electronic means.
                                  - Improving the provisions of the
                                    compliance management function and
                                    carrying out independent internal audits.
                                  - Pre-employee screening procedures.
                                  - PJK’s obligation to submit data for
                                    supervision needs
                                  - Customer Due Diligence (CDD) is simple,
                                    CDD towards beneficial owners towards
                                    all types of customers including public
                                    companies/issuers and state institutions.
                                  - Prohibition of outsourcing or agency
                                    relationships in third party CDD.
                                  - The additional scope of reporting
                                    parties supervised by the FSA is
                                    trustees, organizers of Information
                                    Technology-Based Joint Funding
                                    Services (LPBBTI), organizers of Supply
                                    Chain Financing (SCF), and organizers
                                    of Digital Population Identity (IKD).
                                  - Added Individual Company as a new
                                    entity in the Corporation.




                                                                                   PT Bank Tabungan Negara (Persero) Tbk                           317
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                               Management Discussion and Analysis
                               on Bank Performance




                                                                                                                               Impact on Financial
No          Legislation                       Setting Tree                       Information on Adjustments Mode
                                                                                                                                   Statement

 6.   OJK Regulation no. 17    The main points of regulation include::       There are changes and/or adjustments to           The issuance of
      of 2023 concerning       - The bank’s obligation to apply the          the Bank’s internal aspects related to the        regulations had no
      Implementation of          principles of good governance to the        governance of Bank BTN as a Commercial            quantitative impact
      Governance for             Bank in carrying out business activities.   Bank.                                             on the Financial
      Commercial Banks (OJK    - Implementation of good governance           - Management of the Board of                      Statements.
      Regulation Governance)     principles in banks, which at least            Commissioners and Directors (Duties,
                                 include openness, accountability,              Responsibilities and Authorities, Number,
                                 responsibility, independence and               Composition, Criteria, Work Rules and
                                 fairness.                                      Meeting Arrangements, Replacement,
                               - This OJK Regulation also regulates             Dismissal and/or Appointment,
                                 governance implementation reports              Concurrent Position Arrangements)
                                 and assessments of governance               - Committees under the Board of
                                 implementation                                 Commissioners are appointed by the
                                                                                Board of Directors based on the decision
                                                                                of the Board of Commissioners Meeting
                                                                                and are evaluated at the end of each
                                                                                financial year.
                                                                             - The obligation to implement risk
                                                                                management to include prevention and
                                                                                treatment so that the Bank is not exploited
                                                                                in activities related to criminal acts and
                                                                                implementing the principles of prudence,
                                                                                risk management and sound banking
                                                                                management, in the event that the Bank
                                                                                carries out partnerships in its business
                                                                                activities.

                                                                             -   In reporting and information technology
                                                                                 systems, Banks are required to ensure the
                                                                                 reliability of the preparation of financial
                                                                                 reports and financial performance
                                                                                 information that are not audited by
                                                                                 external auditors, are required to ensure
                                                                                 the availability and adequacy of internal
                                                                                 reporting supported by an adequate
                                                                                 management information system for
                                                                                 decision making for the Board of
                                                                                 Directors and supervision of the Board
                                                                                 of Commissioners, and are prohibited
                                                                                 from utilizing and /or misuse financial
                                                                                 engineering and/or legal engineering
                                                                                 for the benefit of the Bank and/or other
                                                                                 parties, both internal and external to the
                                                                                 Bank, which is not in accordance with the
                                                                                 principles of sound Bank management.
                                                                             -   Adjusting strategic plan activities. Banks
                                                                                 are required to implement plans for
                                                                                 handling financial problems and/or
                                                                                 strengthening Bank capital as stated in
                                                                                 the Bank Business Plan, informing PSP
                                                                                 of plans for handling financial problems
                                                                                 and/or strengthening Bank capital.
                                                                             -   arrangements related to Shareholder
                                                                                 Aspects of implementing anti-fraud
                                                                                 strategies and implementing sustainable
                                                                                 finance.
                                                                             -   There are additional fine provisions from
                                                                                 the regulator.




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                                                                                                                             Impact on Financial
No         Legislation                        Setting Tree                      Information on Adjustments Mode
                                                                                                                                 Statement

7.   Bank Indonesia             The main points of regulation include:      -   Redefinition of consumers and organizers.    Regulatory changes
     Regulation no. 3 of        - Scope of consumer protection.             -   Adjustment of the scope of consumer          had no quantitative
     2023 concerning Bank       - Principles of consumer protection.            protection and confirmation that the         impact on financial
     Indonesia Consumer         - Handling consumer complaints by Bank          organizer is the one who deals directly      statements
     Protection                   Indonesia.                                    with consumers.
                                - Imposition of sanctions.                  -   The regulation of consumer protection
                                - Supervision activities.                       principles has been refined in line
                                - Coordination mechanism.                       with UUP2SK and international best
                                                                                practices, as well as paying attention
                                                                                to developments in digital financial
                                                                                innovation.
                                                                            -   Additional regulations related to the aim
                                                                                of consumer protection.
                                                                            -   Additional regulations regarding the
                                                                                rights and obligations of consumers and
                                                                                organizers.
                                                                            -   Strengthening the handling of consumer
                                                                                complaints through dispute resolution.
                                                                            -   Adjustment of administrative sanctions
                                                                                for organizers who do not fulfill their
                                                                                obligations in the context of consumer
                                                                                protection.

8.   Financial Services         The main points of regulation include:      -   Redefinition of digital banking services     Regulatory changes
     Authority Regulation no.   - Scope of digital services.                    and electronic banking services into         had no quantitative
     21 of 2023 concerning      - requirements and digital service units/       digital services;                            impact on financial
     Commercial Bank Digital      functions.                                -   Recategorization of digital services         statements.
     Services                   - identification and verification.              which are divided into digital services
                                - Licensing and reporting.                      organized by the Bank and organized by
                                - IT Utilization.                               the Bank with partners;
                                - Customer protection and personal data     -   Adjustment of digital service delivery
                                  protection.                                   requirements that focus on the readiness
                                                                                of the Bank’s Information Technology
                                                                                infrastructure referring to the DMAB Self
                                                                                Assessment;
                                                                            -   Harmonization of regulations regarding
                                                                                identification and verification with OJK
                                                                                Regulation AML CFT WMS Proliferation;
                                                                            -   Changes to the licensing mechanism
                                                                                where digital services which include
                                                                                payment systems and are specifically
                                                                                regulated by BI are categorized as basic
                                                                                bank products;
                                                                            -   Application of the principles of
                                                                                Information Technology adoption and
                                                                                electronic signatures in providing digital
                                                                                services;
                                                                            -   Implementation of consumer protection
                                                                                principles and personal data protection in
                                                                                providing digital services.




                                                                                PT Bank Tabungan Negara (Persero) Tbk                         319
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                                     on Bank Performance




Changes in Accounting Policies

Reasons for Changes in Accounting Policies

On January 1 2023, there were new standards and adjustments or amendments to several standards which are still valid and effective
from that date. Changes to accounting policies were made to comply with the Statement of Financial Accounting Standards (PSAK) in
effect in the current year.


Information on Changes in Accounting Policies

Description of information on changes to accounting policies in 2023 is as follows:


Table of Changes in Accounting Policies in 2023

                                                                                                      Quantitative Impact of Changes in Accounting
 No                               Changes in Accounting Policies
                                                                                                              Policies on Financial Reports
  1    Amendment to PSAK 1 – “presentation of financial reports related to disclosure of             • Changing the term for disclosing “significant
       accounting policies”                                                                            accounting policies” to “material accounting policy
       • This amendment aims for entities to use the disclosure term “material accounting              information”
         policy information” rather than “significant accounting policy”.                            • The impact of the implementation of the new
       • Clarifying that not all accounting policies related to transactions, events or other          standards and the adjustment of these amendments
         material conditions are material to the financial statements.                                 was not material to the financial statements.

  2    Amendment to PSAK 1 – “presentation of financial statements regarding the                     • Added description and Adjusted liability
       classification of liabilities as short-term or long-term”                                       classification.
       • This amendment aims to clarify one of the criteria for classifying a liability as long-     • The impact of the implementation of the new
          term, namely requiring the entity to have the right to defer settlement of the liability     standards and the adjustment of these amendments
          for at least 12 months after the reporting period.                                           was not material to the financial statements.
       • Implements that an entity’s right to defer settlement of a liability must exist at the
          end of the reporting period.
       • Clarifies that classification does not affect management’s intentions or expectations
          about whether an entity will exercise its right to defer settlement of a liability.
       • Clarifying how loan conditions affect classification
       • Clarifies the requirement for an entity to classify liabilities based on the ability to
          settle the liability by issuing its own equity instruments.

  3    Amendment to PSAK 25 – “accounting policies, changes to accounting estimates, and             • Adjusting the definition of “accounting estimate” for
       errors related to the definition of accounting estimates”                                       monetary amounts that are affected by measurement
       • This amendment aims to introduce a definition of “accounting estimates” namely                uncertainty.
          monetary amounts in financial statements that are affected by measurement                  • The impact of the implementation of the new
          uncertainty.                                                                                 standards and the adjustment of these amendments
       • Clarifying that estimation and valuation techniques are examples of measurement               was not material to the financial statements.
          techniques used in developing accounting estimates.
       • Clarifying that changes in accounting estimates as a result of new information or
          new developments are not correlated errors.

  4    Amendment to PSAK 16 – “fixed assets yield before intended use”                               • Classifying testing costs is prohibited for the
       • Paragraph 17(e): prohibits deducting the net proceeds from the sale of any items              reduction of net sales of each product.
         produced, when bringing the asset to the location and condition necessary for the           • Describing the meaning of testing, namely testing
         asset to be ready for use in accordance with management’s intentions, from testing            an asset to function properly, assessing the technical
         costs (such as samples generated when testing whether the asset is functioning                performance and physical performance of the asset.
         properly).                                                                                  • The impact of the implementation of the new
       • Added Paragraph 20A: an entity recognizes sales proceeds and acquisition                      standards and the adjustment of these amendments
         costs for items produced when bringing fixed assets to the location and condition             was not material to the financial statements.
         necessary for the assets to be ready for use in accordance with management’s
         intentions in Profit and Loss. Next, the entity measures the cost of these items by
         applying the measurement requirements in PSAK 14: inventories
       • Added Paragraph 74A – which regulates if it is not presented separately in the
         statement of profit or loss and other comprehensive income.

  5    Amendment to PSAK 46 – “income tax regarding deferred tax related to assets and               • Added early recognition exception for deferred tax
       liabilities arising from a single transaction”                                                  liabilities.
       • This amendment regulates entities to recognize deferred tax assets and liabilities          • Add descriptions related to initial recognition of
          at the time of initial recognition, for example from lease transactions, to eliminate        assets or liabilities.
          differences in practice in the field regarding these transactions and similar              • The impact of the implementation of the new
          transactions adopted from the Amendment to IAS 12 Income Taxes concerning                    standards and the adjustment of these amendments
          Deferred Tax related to Assets and Liabilities arising from a Single Transaction,            is not material to the financial statements.




320         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                               2023 Annual Report




                                                                                        Quantitative Impact of Changes in Accounting
 No                               Changes in Accounting Policies
                                                                                                Policies on Financial Reports
  6     Amendment to PSAK 107 – “Ijarah accounting”                                    The impact of the implementation of the new standards
                                                                                       and the adjustment of these amendments was not
                                                                                       material to the financial statements.

  7     Amendment to PSAK 73 – “Lease”                                                 The impact of the implementation of the new standards
        • Lease liabilities in sale and leaseback transactions                         and the adjustment of these amendments was not
                                                                                       material to the financial statements.




Bank Soundness Level

The level of bank soundness reflects the results of an assessment of    Banks and OJK Circular Letter No. 14/SEOJK.03/2017 Dated
the company’s condition regarding the bank’s risks and performance      March 17 2017 Concerning Assessment of the Soundness Level of
which can be seen from the final ranking of the assessment results      Commercial Banks Using a Risk Approach ( Risk-Based Bank Rating
based on OJK Regulation No. 04/POJK.03/2016 Dated January 26            ) which includes 4 (four) factors, namely Risk Profile, Governance,
2017 concerning Assessment of the Soundness Level of Commercial         Profitability ( Earnings ) and Capital ( Capital ).




Table of Company Health Level Position December 31, 2023 - 2022 Individually (Self Assessment )

                                                                       Rating Per                               Rating Per
                                                                   December 31, 2023                        December 31, 2022
                        Rating Factors
                                                                        Rating                                      Rating

 Risk Profile                                                              2                                          2

 Governance                                                                2                                          2

 Profitability ( Earnings )                                                2                                          2

 Capital ( Capital )                                                       2                                          1

 Bank Soundness Level Rating Based on Risk                                 2                                          2




The bank’s health rating for December 2023 (Self Assessment)            Business Continuity Information
is at composite rating 2 (PK2) which reflects the bank’s
generally healthy condition so that it is considered capable of         Things That Beidrotension Have a Significant
facing significant negative influences from changes in business         Influence Business Continuity
conditions and other external factors.
                                                                        The momentum for improvement in the national economy
Apart from that, assessing the level of soundness using                 continues amidst the risk of global geopolitical tensions.
rankings is also regulated in the Regulation of the Minister            Economic growth in Quarter I - 2023 remains strong with
of State-Owned Enterprises of the Republic of Indonesia                 growth of 5.03% (yoy). This condition contributes positively
Number PER-2/MBU/03/2023 concerning Guidelines for                      to increasing household consumption, MSME businesses and
Governance and Significant Corporate Activities of State-               manufacturing. This is reflected in the development of the
Owned Enterprises. The rating (rating) for the health level of          Consumer Confidence Index (IKK) in Quarter III - 2023 which
State-Owned Enterprises as assessed by the National Rating              remains strong, amounted 121.7 and the Purchasing Manager
Agency for the position December 31, 2023 is AAA so it is               Index (PMI) which is 51.7 points in 2023, indicating the level
included in the “Very Healthy” classification. The Health Level         of expansion. In line with the ongoing growth momentum,
Rating Report as referred to in more detail is contained in the         banking intermediation continues to improve with strong
Attachment to this Annual Report.                                       resilience to support growth. In Quarter III - 2023, national




                                                                               PT Bank Tabungan Negara (Persero) Tbk                    321
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                                                    Management Discussion and Analysis
                                                    on Bank Performance




credit grew 8.96% (yoy), KPR credit showed an upward                                                       supply chains by increasing Government spending on energy
growth trend of more than 10% (yoy) in August 2023, an                                                     subsidies and the budget for Social Assistance (Bansos)
increase compared to the end of 2022 (8.17% yoy). The                                                      programs. In addition, to continue the recovery process in the
increase in KPR was driven by the Government’s stimulus to                                                 financial sector, Bank Indonesia also postponed the increase
increase the contribution of the housing sector to the national                                            in the BI 7 days repo benchmark interest rate until 22 - 23
economic recovery process through the continuation of                                                      November 2023 at 6.00%. This step was taken in the context
the subsidized housing program. This sector is also one of                                                 of stabilizing the value of the rupiah amidst the effects of
the sectors encouraged by the government in implementing                                                   global economic uncertainty and as a preventive measure
the Macroprudential Liquidity Incentive Policy (KLM). Bank                                                 against the predicted increase in inflation. Bank Indonesia
BTN’s capital adequacy ratio (CAR) as of December 2023                                                     targets that inflation growth in 2024 can still be controlled at
remains high, was 20.14% and the Gross NPL ratio remains                                                   2.5% - 3.5% in 2024.
maintained at 3.01%, indicating that the bank’s health and
risk management levels are running quite well. to be able to                                               Based on the matters described above, the Company has
be able to support business continuity.                                                                    strengths and competitive advantages as well as continuous
                                                                                                           innovation in facing uncertain conditions which can be
The government continues to support the ongoing recovery                                                   accommodated well by the Company. In addition, by
process, to anticipate the impact of global geopolitical risks                                             implementing various appropriate strategic initiatives, the
on the economy through a mix of fiscal and monetary policies.                                              Company’s business continuity can be well maintained. So
This is reflected in the Government’s efforts to maintain                                                  it can be concluded that the Company does not have any
national energy and food security amidst the surge in global                                               matters that have the potential to have a significant impact on
energy and commodity prices due to disruption of global                                                    business continuity.



Assessment Management of Items That Have a Significant Influence on Business Continuity

Assessments were carried out based on various factors such as analysis of the strength of financial and non-financial conditions
as well as performance achievements. In addition, the Company carries out a Strength Weakness Opportunity Threat (SWOT)
analysis. In detail, the Company’s SWOT analysis is as follows:

                                                                                                    Potential
                                              Strength                                                                                            Opportunity
           •   Strong positioning in the mortgage business in the MBR segment and has a                         •   The housing sector has good potential next year. In 2024 KPR is predicted to grow
               strategic role in the national housing ecosystem.                                                    95% (yoy), the growth of which is driven by demand for middle segment KPR.
           •   Potential business increase from initiatives implemented in 2023, including:                     •   LTV/FTV policy relaxation extended until December 2024.
               Sales Center, KCP Mitra MSME, branch productivity for KCP, expansion                             •   Increasingly massive acceleration of digital financial services, especially for internet
               of e-channel customer acquisitions and transactions, development of                                  and mobile banking users, which has the potential to increase CASA and fee based
               retail e-deposits, ultimate projects, and CASA initiatives in the segment                            income.
               businessman.
           •   Potential for cross selling to captive customers, especially for high yield credit
               products, savings and wealth services.
                                                                                                                                                                                                               External
Internal




                                            Weakness                                                                                                    Threat
           •   Cost of Fund masih tinggi yang berdampak pada perolehan profitabilitas bank.                     •   The BI 7DRR benchmark interest rate is predicted to remain high “higher for longer”
           •   DPK ritel masih belum tumbuh, pertumbuhan DPK masih didominasi segmen                                which will have an impact on increasing fund interest rates.
               komersial.                                                                                       •   Subsidized KPR allocations are increasingly limited. The allocation for subsidized
           •   Kenaikan NPL pada segmen konsumer dan komersial akibat berakhirnya                                   KPR in 2024 is 166 thousand units, lower than the allocation in 2023 which is 220
               relaksasi realisasi restrukturisasi Covid-19.                                                        thousand units.
           •   Kontribusi fee based income masih dominan pada treasury dan admin,                               •   Bank and fintech digital expansion is predicted to remain massive.
               sementara porsi dari layanan dan transaksi masih rendah.



                                                                                                    Potential




322              PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                              2023 Annual Report




  Paying attention to the SWOT analysis, a Threat Opportunity Weakness Strength (TOWS) matrix is prepared as follows:

                                                                                         Strength Strategy
                       Strength-Opportunity (SO-Strategy)                                                                                Strength-Threat (ST-Strategy)
                       •   Continuing initiatives in 2023 which focus on increasing                                  •   Propose an additional scheme for subsidized KPR allocation
                           high yield credit, retail deposits and transaction banking.                                   to the Government.
                       •   Develop mortgage business segmentation in the emerging                                    •   KCP segmentation according to regional potential, namely
                           affluent segment (ticket size above IDR750 million).                                          Consumer, MSME and General KCPs.
                       •   Cross selling program for high yield credit products,                                     •   Accelerate the development of digital banking services and
                           transaction banking and retail deposits                                                       super-apps as new sources of growth.
Maximize Opportunity




                                                                                                                     •   Develop transaction banking in the commercial and retail
                                                                                                                         segments.




                                                                                                                                                                                        Minimize Risk
                       Weakness-Opportunity                                                                                                              Threat-Opportunity
                       •   Accelerate the development of digital banking services and                                •   Partnership with start-ups and finetch to develop high yield
                           super-apps as new sources of growth.                                                          business, transaction banking and digital housing ecosystem.
                       •   Development of fee based income through cross selling in                                  •   Strengthen collection and asset recovery processes to
                           digital services, wealth and wholesale segments.                                              accelerate credit quality improvement.
                       •   Expand sales channels through digital platforms such as                                   •   Develop retail customer segmentation, especially in the
                           BTN Mobile, BTN Properti, and BTN Smart Residence.                                            individual net worth segment.




                                                                                         Recovery Strategy



  The Company’s management has assessed the Bank’s ability to                                       Disclosure of the Governance Framework,
  continue its business continuity and believes that the Company has                                Management and Control of Taxation
  the resources to continue its business in the future. In addition, the                            Aspects
  Company’s management does not see any material uncertainty
  that could raise significant doubts about the Company’s ability to                                The Company received an award for Synergy and Tax Contribution
  continue its business.                                                                            in the 2022 financial year from the Big Four Taxpayers KPP
                                                                                                    which was given on April 23, 2023. The Company is always
  Assumptions Used by Management in                                                                 committed to making its contribution to the country while fulfilling
  Conducting the Assessment                                                                         its obligations related to taxation. As a domestic corporate
                                                                                                    taxpayer, the Company is entitled to receive incentives from the
  The strategy that has been prepared based on SWOT analysis                                        Government in the form of tax relief. This is in accordance with
  will work well with the following assumptions:                                                    the provisions of Article 17 paragraph (2b) of Law Number 7 of
  1. Macroeconomic Assumptions at the end of 2024 are                                               1983 concerning Income Tax as amended several times, most
       projected:                                                                                   recently by Law Number 7 of 2021 concerning Harmonization of
       a. GDP growth was 4.9 % - 5.50% (yoy).                                                       Tax Regulations which states that domestic taxpayers:
       b. BI 7 Days Repo reference Interest Rates 6.00 %.                                           1. Formed as a Public Company;
       c. Inflation rate 2.5% - 3.5%                                                                2. With the total number of paid-up shares traded on the stock
       d. The Rupiah currency exchange rate is IDR14. 6 00/                                             exchange in Indonesia at most slightly 40%; And
            USD.                                                                                    3. Meet certain requirements.
       e. Loan growth was 11.00 % (yoy).
       f. Growth in third party funds was 9.50 % (yoy).                                             Based on the provisions above, the Company can obtain a rate
  2. The National Economic Recovery Program (PEN) program                                           of 3% lower than the 22% rate applicable in the tax year 2022,
       initiated by the Government to support business incentive                                    so that the tax rate used in calculating Corporate Income Tax
       policies, health programs, cooperative businesses, MSMEs                                     is 19%. With this tax incentive, in the 2023 reporting year the
       and social protection.                                                                       Company will pay taxes amounting to IDR1,020 billion to the
  3. Strengthening the Company’s positioning in the housing                                         government.
       business and developing potential in the housing ecosystem.
  4. Good financial performance for the last 5 (five) years.                                        Tax payments are a manifestation of the Company’s obligations
  5. Company Health Level at Composite Rank 2 (PK - 2) with                                         and role in participating in supporting the rate of national growth.
       Healthy qualifications . Level. This health was obtained from                                Bank BTN’s approach to taxes is based on compliance with all
       the results of Bank BTN’s self-assessment using data as of                                   applicable tax regulations. Bank BTN has developed tax policies
       December 31, 2023.                                                                           and strategies which are approved and reviewed by the Director




                                                                                                        PT Bank Tabungan Negara (Persero) Tbk                                           323
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                                     Management Discussion and Analysis
                                     on Bank Performance




of Finance in reporting the Annual Corporate Income Tax SPT.              In its operational activities, the Company has implemented Good
This tax strategy is reviewed annually by the Director of Finance.        Corporate Governance (GCG) which is carried out transparently
In implementing tax governance, Bank BTN has established a                and accountably in accordance with applicable regulations.
comprehensive and structured process, such as:                            The most important stakeholder in tax matters is the government
1. The official responsible for determining the tax strategy is the       through the tax office. For this reason, the Company always
    Finance Director.                                                     maintains good relations with the tax authorities and never
2. Compliance with tax provisions is outlined through Bank                delays payment of tax obligations, which is one of the Company’s
    BTN’s tax policy accompanied by the development of tax                manifestations of maintaining harmony and obligations and
    applications as well as regular training and outreach.                complying with all applicable tax regulations. The company only
3. The process of managing, monitoring and reviewing                      operates in Indonesia, therefore tax reporting is only done for
    the implementation of tax obligations is carried out by               Indonesia. The company has never made changes to its fiscal
    the Taxation Department and regularly monitored by the                year. The following is the Company’s contribution through tax
    Compliance, Internal Audit and External Audit Divisions               payments in 2022-2023.
    (Public Accounting Firm).




Table of Tax Payment                                                                                                            (in IDR million)


                                 Tax Description                                          Year 2023                    Year 2022

 Income Tax (Corporate Income Tax)                                                          1,020,952                   1,001,840

 PPh 21 Individual                                                                            531,783                     414,720

 Value Added Tax (VAT)                                                                         24,307                       18,032

 Sales Tax on Luxury Goods (PPnBM)                                                                  0                           12

 Property Tax                                                                                     365                        5,103

 Other Taxes                                                                                1,566,439                     935,023

 Total                                                                                      3,143,845                    2,374,730




Response to Changes In Monetary Policy Direction

In 2023, global economic conditions was in a recovery transition          The Bank develops strategies to minimize the impact of changes
period after the Covid-19 pandemic with a more moderate                   in monetary policy on the Bank’s performance , including by:
growth rate in world gross domestic product compared to 2022.             1. Reducing the duration of the government securities portfolio
                                                                              to minimize the impact of yield volatility on the valuation of
The inflation rate started to show a decline, although it was                 government securities asset prices.
slower than expected by many parties and was still being                  2. Recomposing some short-term fixed income assets from
responded aggressively by some central banks around the                       coupon - paying bonds to zero coupon bonds to increase
world with increases in benchmark interest rates, although                    fee - based income.
not as aggressively as in 2022. Geopolitical tensions such as             3. Increase interest income from securities by adding securities
Russia - Ukraine and Hamas-Israel as well as a longer dry season              investment to the HTM portfolio.
long periods in several parts of the world had increased global           4. Diversifying the investment portfolio to reduce the impact of
uncertainty. This caused high volatility in the USD/IDR exchange              high market volatility with the aim of increasing FBI income
rate which was then responded to by increasing interest rates by              by investing in protected fixed income mutual fund products.
Bank Indonesia. In total, the BI 7-day reverse repo benchmark
interest rate increased by 50 bps since the beginning of 2023
and caused the 10-year SBN yield to move quite fluctuating in the
range of 6.2% to 7.2%.




324             PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                2023 Annual Report




Spot Transactions and Derivative Transactions

Spot transactions and derivative transactions for the period 2022 - 2023 are as follows:


Table of Spot Transaction and DerivativeTransaction Report                                                                    (in IDR million)


                                                                                           BANK

                                                                                           2023
 No                    Transaction
                                                                                                           Receivables and Derivative
                                                                               Objective
                                                                                                                   Liabilities
                                               Notional Value
                                                                     Trading           Hedging                Bill         Kewajiban

 A.    Related to Exchange Rates

 1.    Spot                                               -             -                   -                        -          -

 2.    Forward                                            -             -                   -                        -          -

 3.    Options
       a. Sell                                            -             -                   -                        -          -
       b. Buy

 4.    Future                                             -             -                   -                        -          -

 5.    Swap                                               -             -                   -                        -          -

 6.    Others (CCS)                               1.878.434                                                 64.516

  B.   Related to Interest Rates

 1.    Forward                                            -             -                   -                        -          -

 2.    Options
       a. Sell                                            -             -                   -                        -          -
       b. Buy

 3.    Future                                             -             -                   -                        -          -

 4.    Swap                                               -             -                   -                        -          -

 5.    Other                                              -             -                   -                        -          -

 C.    Other                                              -             -                   -                        -          -

       Amount                                     1.878.434             -                   -               64.516              -




                                                                                           BANK

                                                                                           2022
 No                    Transaction
                                                                                                           Receivables and Derivative
                                                                               Objective
                                                                                                                   Liabilities
                                               Notional Value
                                                                     Trading           Hedging                Bill         Kewajiban

 A.    Related to Exchange Rates

 1.    Spot                                                   -         -                   -                        -          -

 2.    Forward                                                -         -                   -                        -          -

 3.    Options
       a. Sell                                                -         -                   -                        -          -
       b. Buy




                                                                            PT Bank Tabungan Negara (Persero) Tbk                   325
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                                     Management Discussion and Analysis
                                     on Bank Performance




                                                                                                BANK

                                                                                                2022
 No                    Transaction
                                                                                                           Receivables and Derivative
                                                                                    Objective
                                                                                                                   Liabilities
                                                    Notional Value
                                                                          Trading           Hedging           Bill          Kewajiban

 4.    Future                                                   -            -                   -                   -           -

 5.    Swap                                           1,551,000              -                   -          14,029               -

 6.    Others (CCS)                                   1,892,220              -                   -          77,945               -

  B.   Related to Interest Rates

 1.    Forward                                                  -            -                   -                   -           -

 2.    Options
       a. Sell                                                  -            -                   -                   -           -
       b. Buy

 3.    Future                                                   -            -                   -                   -           -

 4.    Swap                                                     -            -                   -                   -           -

 5.    Other                                                    -            -                   -                   -           -

 C.    Other                                                    -            -                   -                   -           -

       Amount                                          3,443,220             -                   -           91,975




Report on Additional Use of State Capital Inclusion (PMN)

Based on the Regulation of the Minister of State-Owned                     proceeds will be used to strengthen the capital structure The
Enterprises of the Republic of Indonesia Number PER-2/                     Company in increasing the distribution of credit and/or loans.
MBU/03/2023 concerning Guidelines for Governance and
Significant Corporate Activities of State-Owned Enterprises                Strengthening the Company’s Capital
Additional State Capital Participation (PNM) was the separation
of state assets from the state revenue and expenditure budget              In order to support increasing business capacity and
used as capital of SOEs and/or Limited Liability Company and               strengthening Bank BTN’s role in the housing ecosystem,
managed corporately. In accordance with the provisions in                  there are several regulations being considered, one of which
Article 110 PER-2/MBU/03/2023:                                             is capital regulations, where under normal conditions Bank
(1 Additional State Capital Participation was carried out with             BTN needs to maintain a Capital Adequacy Ratio (CAR) of
    the aim of:                                                            15.40%.
    a. Improving the capital structure of BUMN or Limited
         Liability Company; and/or                                         Total Investment Required
    b. Increasing the business capacity of SOEs or Limited
         Liability Companies.                                              Bank BTN projects the realization of housing unit financing
(2) Additional State Capital Participation to SOEs as intended in          (KPR) of 1.3 million units in 2021 to 2025, with a projected
    paragraph (1) is used in the context of:                               increase in credit disbursement (distribution) of an average of
    a. Carrying out Government assignments to SOEs;                        21.32% per year (2021-2025), the realization of which will
    b. Carry out restructuring and/or rescue of SOEs; and/or               have an impact on the increase in Risk Weighted Assets (RWA)
    c. Carry out SOEs business development                                 and Bank BTN’s capital requirements. By paying attention to
                                                                           the provisions regarding capital adequacy, it is necessary to
Basis For Use of PMN Funds                                                 increase State Capital Participation (PMN) to improve the
                                                                           capital structure while increasing business capacity through
All additional PMN funds amounting to IDR2,479,999,977,600                 increasing core capital (Tier 1) so that the CAR ratio can be
(two trillion four hundred seventy-nine billion nine hundred               maintained in accordance with the provisions. Considering
ninety-nine million nine hundred seventy-seven thousand six                the things above, it is hoped that additional capital will
hundred Rupiah) plus the public portion of the rights issue                amount to IDR4.13 trillion through a rights issue/privatization




326             PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                                    2023 Annual Report




mechanism with PMN of IDR2.48 trillion and a public portion                                      amount of PMN disbursed will be IDR2,479,999,977,600,-
of IDR1.65 trillion. With this rights issue/privatization, Bank                                  (two trillion four hundred seventy nine billion nine hundred
BTN will be able to maintain capital requirements above 16%                                      ninety-nine million nine hundred seventy-seven thousand six
until 2025 (above the Minimum Capital Requirement (KPMM)                                         hundred Rupiah).
required by OJK, was 15.40%) and prevent delusions of State
ownership in below 60%.                                                                          Explanation of the Use Progress of the Funds

Total Additional PMN Allocated                                                                   Additional PMN funds through a rights issue/privatization
                                                                                                 mechanism with PMN amounting to IDR2,479,999,977,600,-
Based on Government Regulation (PP) Number 48 of 2022                                            (two trillion four hundred seventy-nine billion nine hundred
concerning Addition of State Capital of the Republic of                                          ninety-nine million nine hundred seventy-seven thousand
Indonesia to the Share Capital of the Company (Persero) PT                                       six hundred Rupiah) plus funds from the public amounting
Bank Tabungan Negara Tbk. The total PMN given to Bank                                            to IDR1,653,333,318,000 (one trillion six hundred fifty-
BTN is a maximum of IDR2,480,000,000,000 (two trillion                                           three billion three hundred thirty-three million three hundred
four hundred and eighty billion rupiah). In implementing the                                     eighteen thousand Rupiah) was all deposited into BTN Bank
rights issue/privatization in 2022, taking into account that the                                 Capital after deducting the emission costs. So that there is a
Government’s share ownership remains at 60%, the number                                          change in the capital structure to be as follows:
of shares and the implementation price of the rights issue, the




                                         Before Rights Issue                                                                               After Rights Issue


                                           Nominal Value IDR500,- per share                                                                Nominal Value IDR500,- per share

                                                                 Total Nominal Value                                                                             Total Nominal Value
                                    Number of Shares                                                                                 Number of Shares
                                                                         (IDR)                                                                                           (IDR)

    Authorized Capital               20,478,432,000             10,239,216,000,000                   Authorized Capital              20,478,432,000             10,239,216,000,000

            Total of Issued and Paid-up Capital                                                              Total of Issued and Paid-up Capital

      •   Government of               6,354,000,000              3,177,000,000,000     60.00%          •   Government of              8,420,666,648              4,210,333,324,000       60,00%
          the Republic of             4,236,000,000              2,118,000,000,000     40.00%              the Republic of            5,613,777,765              2,806,888,882,500       40,00%
          Indonesia                                                                                        Indonesia
      •   Public                      10,590,000,000             5,295,000,000,000     100.00%         •   Public                     14,034,444,413              7,017,222,206,500      100,00%

    Remaining shares in                                                                             Remaining shares in
                                      9,888,432,000              4,944,216,000,000                                                    6,443,987,587              3,221,993,793,500
        portfolio                                                                                       portfolio

    Based on Amendment to Articles of Association Number 08, dated April 8 2021

 The shares to be issued are the remaining shares in the portfolio, where there are               The results of the implementation of the BBTN Rights Issue which were fully absorbed
 9,888,432,000 billion shares.                                                                    brought the remaining shares in the portfolio to 6,443,987,587 shares




Planning and Follow-Up Constraints

Several obstacles to the implementation of the rights issue/                                     However, this can be resolved with several follow-up actions
privatization are as follows:                                                                    from the privatization team, namely:
-   The implementation process is quite strict for approximately                                 -   Carry out strict monitoring of the implementation of the
    3 (three) months, since the kick off meeting of supporting                                       rights issue/privatization progress on a weekly basis and
    institutions and/or professions on October 3 2022.                                               ensure that the implementation is carried out on time.
    Considering that PMN uses the 2022 APBN Budget, the                                          -   Intense coordination with the securities sales team
    rights issue process must be carried out in 2022.                                                regarding the interest of foreign investors who will exercise
-   The trading period runs from December 28, 2023 to                                                BBTN’s rights issue from the start.
    January 5, 2023. The trading period process which runs
    at the end of 2022, causes BBTN rights issue transactions
    to be quite quiet on the first 3 (three) trading days. This
    is because many foreign investors and several fund
    managers have completed all transactions for trading
    corporate actions in 2022.




                                                                                                      PT Bank Tabungan Negara (Persero) Tbk                                               327
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INFORMATION ON CAPITAL
AND RISK EXPOSURE



328   PT Bank Tabungan Negara (Persero) Tbk
Page 331
The Company always aligns financial objectives and capital
adequacy with risks so that the Company’s business is in line with
the Company’s capital and liquidity requirements.




                           PT Bank Tabungan Negara (Persero) Tbk   329
Page 332
                                    Information on Capital
                                    and Risk Exposure




Depending on the business complexity, Bank has managed 8                  Pursuant to the Regulation of the Financial Services Authority
risk types, i.e. credit risk, liquidity risk, market risk, operational    (POJK) No. 37/POJK.03/2019 regarding Transparency and
risk, legal risk, reputation risk, strategic risk and compliance          Publication of Bank Report Article 25 sub-article (1) b. Banks
risk. This section, however, only discusses the risk management           must report the information on risk exposure and capital to
practices for credit risk, market risk and operational risks.             the financial statements and the annual financial performance
The elaboration of the other types of risks is presented in the           information.
Chapter of Corporate Governance of this Annual Report.




Credit
Risk

As part of credit risk management, Bank BTN has regularly                 through the Consumer iLoan system which is equipped with a
reviewed and updated its Guidelines for Risk Management                   Credit Scoring Model (CSM). Currently, development is being
Policies and Guidelines for Loan Policies and Funding for Bank            carried out on the Bank’s credit scoring model. Management
BTN’s Loans as part of its risk assessment process. Credit risk           of Col-2 and NPL consumer credit debtors is carried out by
exposure is monitored since the provision of loans up to credit           the Consumer Collection and Remedial Work Unit, while for
maturity. The monitoring and controlling of credit risk among             commercial loans it is carried out by the Commercial Asset
others are done by evaluating credit risk exposure against                Management Work Unit.
credit risk limit (risk appetite and risk tolerance). Bank BTN
is currently back-testing the Internal Credit Rating (ICR) for            As a follow-up to the implementation of Pillar 1 of Basel
commercial loans for more accurate utilization of ICR.                    II, the Bank implemented credit risk measurement using a
                                                                          standardized approach in accordance with SE OJK No. 42/
Bank BTN is also running Commercial Banking Center (CBC)                  SEOJK.03/2016 dated 28 September 2016 concerning
pilot project where CBC functioned as a centralized commercial            Guidelines for Calculating Risk-Weighted Assets (RWA) for
credit processing medium. In regards to the decision making               Credit Risk using the Standard Approach and in 2022 a trial
process for commercial lending, Bank BTN has established                  calculation is being carried out using the latest provisions,
a credit committee through Credit Committee Meeting. The                  namely SE OJK No. 24/SEOJK.03/2021 dated 7 October
Monitoring Department has also been established in the                    2021 concerning Calculation of Risk Weighted Assets (RWA)
Commercial Banking Division which specifically monitors                   for Credit Risk using the Standard Approach for Commercial
credit exposure of large debtors (50 core debtors). The                   Banks which will be effective in January 2023.
Intelligence Credit Monitoring (iCremo), an application for
commercial credit that monitors commercial credit in three                Description regarding the disclosure of Net Receivables by
pillars (Management, Business Prospects and Collateral) has               Region, Net Receivables by Remaining Contract Period, Net
also been the credit risk control was carried out through                 Receivables by Economic Sector, Receivables and Allowances
Consumer iLoan system, which is equipped with a MSME                      by Region, Receivables and Allowances by Economic Sector
Credit Scoring Model and in the commercial and corporate                  and Details of Movements of Allowance for Impairment Losses
segments an early warning system is being developed. In                   (CKPN) are described in the table as follows:
consumer loan, the credit risk control process is carried out



Table of Disclosure of Net Receivables by Region
as of December 31, 2023 and December 31, 2022                                                                                (in million IDR)


                                                                                December 31, 2023
  No         Portfolio Category *)
                                                                   Jawa Non-
                                             Jabodetabek                             Sumatera           Others*             Total
                                                                  Jabodetabek

        Receivables from the
   1                                           85,096,880                   -                   -                 -       85,096,880
        Government

         Receivables from Public Sector
   2                                           16,258,302                   -                   -                 -       16,258,302
         Entities




330          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                         2023 Annual Report




                                                                                                     December 31, 2023
  No              Portfolio Category *)
                                                                              Jawa Non-
                                                     Jabodetabek                                         Sumatera                 Others*                   Total
                                                                             Jabodetabek

          Receivables from Multilateral
   3      Development Banks and                                     -                       -                        -                        -                       -
          International Institutions

   4      Receivables from Banks                         3,585,265                          -                    200                          -            3,585,466

   5      Receivables of a Covered Bond                             -                       -                        -                        -                       -

          Receivables from Securities
   6      Companies and Other Financial                     21,184                          -                        -                        -               21,184
          Services Institutions

          Receivables in the form of
          Securities/Subordinated
   7                                                                -                       -                        -                        -                       -
          Receivables, Equity and Other
          Capital Instruments

   8      House-backed Loan                            84,877,769               96,502,378               39,892,528              47,431,589             268,704,264

          Commercial Property-backed
   9                                                     1,785,515               2,258,633                1,040,216                 859,089                5,943,455
          Loan

          Loan for Land Acquisition, Land
  10                                                     6,875,579               6,682,179                1,119,130               1,193,983              15,870,870
          Management and Construction

  11      Employee/Retiree Loan                            595,920                 836,300                  296,635                 544,809                2,273,664

          Receivables from MSE and Retail
  12                                                     1,617,979               1,991,362                  873,226               2,266,915                6,749,481
          Portfolio

  13      Corporate Receivables                        12,973,940                5,553,904                  187,497                 332,616              19,047,958

  14      Matured Receivables                            1,876,514               2,572,446                1,240,140               1,134,025                6,823,125

  15      Other Assets                                   8,426,922               2,836,119                  916,336               1,328,134              13,507,510

          Total                                       223,991,770             119,233,322                45,565,907              55,091,160             443,882,159

                                                                                                                                                             (in million IDR)


                                                                                                      31 Desember 2022
  No              Portfolio Category **)
                                                                                Jawa Non-
                                                       Jabodetabek                                        Sumatera                 Others*                   Total
                                                                               Jabodetabek

   1      Receivables from the Government              70,895,488                               -                        -        1,434,190              72,329,678

          Receivables from Public Sector
   2                                                   13,690,300                               -                        -                    1          13,690,301
          Entities

          Receivables from Multilateral
   3      Development Banks and                                         -                       -                        -                        -                       -
          International Institutions

   4      Receivables from Banks                         1,818,586                   88,212                    3,949                        22             1,910,769

   5      House-backed Loan                          105,349,316                59,258,376               35,893,913              41,218,217             241,719,822

   6      Commercial Property-backed Loan              10,186,557                4,448,983                1,438,177               1,794,914              17,868,631

   7      Employee/Retiree Loan                            666,599                  480,515                 251,052                  283,852               1,682,018

          Receivables from MSE and Retail
   8                                                     2,344,084               1,995,649                  945,301               2,022,710                7,307,744
          Portfolio

   9      Corporate Receivables                          9,562,331               3,356,354                1,521,504                  670,901             15,111,090

  10      Matured Receivables                            1,637,940                  875,697                 662,386                  488,960               3,664,982

  11      Other Assets                                   5,998,451               2,471,875                  768,995               1,169,363              10,408,685

          Total                                       222,149,650               72,975,662                41,485,278              49,083,130             385,693,720
* Others consist of Kalimantan, Sulawesi, Bali, Maluku and Papua
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




                                                                                                    PT Bank Tabungan Negara (Persero) Tbk                            331
Page 334
                                         Information on Capital
                                         and Risk Exposure




Table of Disclosure of Net Receivables by Remaining Contract
Period as of December 31, 2023 and December 31, 2022                                                                                                         (in million IDR)


                                                                                                 December 31, 2023

  No.               Portfolio Category*)                                                     ">3 years
                                                                       ">1 year to 3                                                    Non-
                                                      <1 year                                  to 5                 >5 years                                  Total
                                                                          years"                                                     contractual
                                                                                              years"
    1      Receivables from the Government          15,151,432              269,429              261,182            69,336,021              78,815         85,096,880
           Receivables from Public Sector
    2                                                    30,435           4,586,955           2,644,791              8,996,121                        -    16,258,302
           Entities
           Receivables from Multilateral
    3      Development Banks and                                 -                   -                   -                     -                      -                    -
           International Institutions
    4       Receivables from Banks                               -        3,585,265                      -                     -               200          3,585,466
    5       Receivables of a Covered Bond                        -                   -                   -                     -                      -                    -
            Receivables from Securities
    6       Companies and Other Financial                        -                   -            21,184                       -                      -         21,184
            Services Institutions
            Receivables in the form of
            Securities/Subordinated
    7                                                            -                   -                   -                     -                      -                    -
            Receivables, Equity and Other
            Capital Instruments
    8       House-backed Loan                            40,747             465,866           1,290,499         266,907,152                           -   268,704,264
            Commercial Property-backed
    9                                                        879            719,292           2,752,187              2,471,097                        -     5,943,455
            Loan
            Loan for Land Acquisition, Land
   10                                                   170,165           2,910,150           5,153,943              7,636,612                        -    15,870,870
            Management and Construction
   11       Employee/Retiree Loan                                -             2,967              36,190             2,234,508                        -     2,273,664
            Receivables from MSE and
   12                                                    13,846             659,235           1,462,900              4,613,500                        -     6,749,481
            Retail Portfolio
   13       Corporate Receivables                       244,092           5,289,012              842,170            12,672,684                        -    19,047,958
   14       Matured Receivables                            3,619              67,820             771,847             5,979,840                        -     6,823,125
   15       Other Assets                                         -                   -                   -                     -      13,507,510           13,507,510
            Total                                   15,655,214          18,555,991           15,236,892         380,847,535           13,586,526          443,882,159
*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.




Table of Disclosure of Net Receivables by Economic Sector
as of December 31, 2023 and December 31, 2022
December 31, 2023

                                                                                                          Receivables                                        Receivables
                                                                                                             from                                          from Securities
                                                                                                                                            Receivables
                                                                     Receivables      Receivables         Multilateral                                       Companies
                                                                                                                            Receivables        of a
  No.                      Economic Sector *)                         from the        from Public        Development                                          and Other
                                                                                                                            from Banks       Covered
                                                                     Government      Sector Entities      Banks and                                            Financial
                                                                                                                                               Bond
                                                                                                         International                                         Services
                                                                                                          Institutions                                       Institutions

   1     Agriculture, Hunting, Forestry                                         -            24,735             -                       -         -                    -

   2     Fisheries                                                              -                   -           -                       -         -                    -

   3     Mining and Excavation                                                  -                   -           -                       -         -                    -

   4     Manufacturing                                                          -                   -           -                       -         -                    -

   5     Electricity, Gas and Water                                             -         4,062,541             -                       -         -                    -

   6     Construction                                                67,820,260           1,957,351             -                       -         -                    -

   7     Wholesale and Retail Trade                                             -         5,403,719             -                       -         -            21,184

   8     Accommodation and Food Services                                        -                   -           -                       -         -                    -

         Transportation, Warehousing and
   9                                                                            -         3,531,548             -                       -         -                    -
         Communication
  10     Financial Intermediary                                      17,197,805             468,280             -              3,585,466          -                    -

         Real Estate, Rental Business and Corporate
  11                                                                            -                   -           -                       -         -                    -
         Services



332            PT Bank Tabungan Negara (Persero) Tbk
Page 335
                                                                                                                         2023 Annual Report




                                                                                                                                                                   (in million IDR)


                                                                                                     December 31, 2023

  No.               Portfolio Category*)                                                      ">3 years
                                                                       ">1 year to 3                                                       Non-
                                                      <1 year                                   to 5                 >5 years                                       Total
                                                                          years"                                                        contractual
                                                                                               years"
            Receivables from the
    1                                              63,014,308            3,804,916            4,435,399              1,075,055                        -          72,329,678
            Government
            Receivables from Public Sector
    2                                                2,938,867           1,923,525            1,319,844              7,508,065                        -          13,690,301
            Entities
            Receivables from Multilateral
    3       Development Banks and                                -                   -                     -                    -                     -                        -
            International Institutions
    4       Receivables from Banks                   1,434,412              397,077                  79,280                     -                     -           1,910,769
    5       House-backed Loan                        2,808,220           6,875,512          15,847,782             216,188,307                        -      241,719,822
            Commercial Property-backed
    6                                                8,602,033           6,950,019            1,967,901                  348,678                      -          17,868,631
            Loan
    7       Employee/Retiree Loan                      159,460              125,153              417,149                 980,256                      -           1,682,018
            Receivables from MSE and
    8                                                1,440,168           2,163,613            1,370,840              2,333,122                        -           7,307,744
            Retail Portfolio
    9       Corporate Receivables                    5,108,151           4,481,809            1,721,739              3,799,390                        -          15,111,090
   10       Matured Receivables                      1,297,454              892,497              285,554             1,189,477                        -           3,664,982
   11       Other Assets                                         -                    -                    -                    -       10,408,685               10,408,685
            Total                                   86,803,073           27,614,121          27,445,487             233,422,351             10,408,685           385,693,720
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




                                                                                                                                                                   (in million IDR)




     Receivables in the
                                                              Loan for Land
    form of Securities/
                                                               Acquisition,                            Receivables
       Subordinated           House-         Commercial
                                                                  Land             Employee/            from MSE           Corporate            Matured
        Receivables,          backed          Property-                                                                                                            Other Assets
                                                              Management          Retiree Loan          and Retail        Receivables          Receivables
         Equity and            Loan          backed Loan
                                                                   and                                   Portfolio
       Other Capital
                                                               Construction
        Instruments

             -                           -                -                  -                   -              32,000          43,000                     78                         -

             -                           -                -                  -                   -               8,681                  -                    -                        -

             -                           -                -                  -                   -               2,032       3,163,404                5,132                           -

             -                           -                -           17,937                     -              69,817         603,374                    975                         -

             -                           -                -                  -                   -              28,027       1,928,798                    642                         -

             -                    58,818        3,765,987        15,494,003                      -             157,178       5,947,347            2,565,174                           -

             -                           -        446,324            229,725                     -        1,184,037            854,437              49,739                            -

             -                           -                -                  -                   -             187,829         236,189              26,361                            -

             -                           -                -                  -                   -              38,501         596,845                1,306                           -

             -                           -                -                  -                   -               1,698       1,354,244                    614                         -

             -                           -      1,252,400             72,329                     -              76,050       1,858,942             159,964                            -




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                                     333
Page 336
                                         Information on Capital
                                         and Risk Exposure




                                                                                                          Receivables                                           Receivables
                                                                                                             from                                             from Securities
                                                                                                                                               Receivables
                                                                    Receivables        Receivables        Multilateral                                          Companies
                                                                                                                            Receivables           of a
  No.                      Economic Sector *)                        from the          from Public       Development                                             and Other
                                                                                                                            from Banks          Covered
                                                                    Government        Sector Entities     Banks and                                               Financial
                                                                                                                                                  Bond
                                                                                                         International                                            Services
                                                                                                          Institutions                                          Institutions

         Public Administration, Defense and Mandatory
  12                                                                            -                    -           -                         -        -                     -
         Social Security
  13     Education Services                                                     -                    -           -                         -        -                     -

  14     Health Services and Social Works                                       -                    -           -                         -        -                     -

         Public and Sociocultural Services, Entertainment
  15                                                                            -                    -           -                         -        -                     -
         and Other Personal Services
  16     Private Household Services                                             -                    -           -                         -        -                     -

         International Agencies and Other Extra
  17                                                                            -                    -           -                         -        -                     -
         International Agencies
  18     Unspecified Activities                                                 -                    -           -                         -        -                     -

  19     Non-Business Field                                                     -                    -           -                         -        -                     -

  20     Others                                                          78,815             810,128              -                         -        -                     -

         Total                                                       85,096,880           16,258,302            -              3,585,466            -             21,184

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.


December 31, 2022

                                                                                                                                 Receivables
                                                                                                                              from Multilateral
                                                                                                     Receivables from
                                                                            Receivables from                                    Development             Receivables from
   No.                          Economic Sector *)                                                     Public Sector
                                                                            the Government                                       Banks and                   Banks
                                                                                                          Entities
                                                                                                                                International
                                                                                                                                 Institutions

    1       Agriculture, Hunting, Forestry                                                  -                        -                 -                              -

    2       Fisheries                                                                       -                        -                 -                              -

    3       Mining and Excavation                                                   707,070                          -                 -                              -

    4       Manufacturing                                                                   -                        -                 -                              -

    5       Electricity, Gas and Water                                              139,817              3,505,119                     -                              -

    6       Construction                                                      10,608,026                 2,298,552                     -                              -

    7       Wholesale and Retail Trade                                                      -            1,149,653                     -                              -

    8       Accommodation and Food Services                                                 -                        -                 -                              -

    9       Transportation, Warehousing and Communication                            73,929              4,052,332                     -                              -

   10       Financial Intermediary                                            45,607,636                 2,050,455                     -                     1,257,077

   11       Real Estate, Rental Business and Corporate Services                             -                        -                 -                              -

            Public Administration, Defense and Mandatory Social
   12                                                                                       -                        -                 -                              -
            Security

   13       Education Services                                                              -                        -                 -                              -

   14       Health Services and Social Works                                                -                        -                 -                              -

            Public and Sociocultural Services, Entertainment and
   15                                                                                       -               505,982                    -                              -
            Other Personal Services

   16       Private Household Services                                                      -                        -                 -                              -

            International Agencies and Other Extra International
   17                                                                                       -                        -                 -                              -
            Agencies

   18       Unspecified Activities                                                          -                        -                 -                              -

   19       Non-Business Field                                                              -                        -                 -                              -

   20       Others                                                            15,193,200                    128,208                    -                      653,692

            Total                                                              72,329,678                13,690,301                    -                     1,910,769
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




334              PT Bank Tabungan Negara (Persero) Tbk
Page 337
                                                                                                                    2023 Annual Report




 Receivables in the
                                                        Loan for Land
form of Securities/
                                                         Acquisition,                         Receivables
   Subordinated         House-           Commercial
                                                            Land            Employee/          from MSE               Corporate            Matured
    Receivables,        backed            Property-                                                                                                         Other Assets
                                                        Management         Retiree Loan        and Retail            Receivables          Receivables
     Equity and          Loan            backed Loan
                                                             and                                Portfolio
   Other Capital
                                                         Construction
    Instruments

         -                       -                  -                 -                   -                 -           1,488,237                       -                      -

         -                       -                  -                 -                   -        17,085                 148,861                 2,907                        -

         -                       -                  -                 -                   -        32,585                  43,975                       -                      -

         -                       -                  -                 -                   -        58,206                  89,962                 3,932                        -

         -            217,374,674            376,690                  -           9,298            28,251                          -           3,165,825                       -

         -                       -                  -                 -                   -                 -                      -                    -                      -

         -                       -                  -                 -                   -       124,587                 458,492                   991                        -

         -             34,009,517             35,897             56,877                   -       163,255                          -                    -                      -

         -             17,261,254             66,156                  -       2,264,366          4,539,662                231,851               839,484        13,507,510

         -            268,704,264           5,943,455      15,870,870          2,273,664         6,749,481             19,047,958              6,823,125       13,507,510



                                                                                                                                                            (in million IDR)




                        Commercial                                   Receivables from
House-backed                                  Employee/Retiree                                  Corporate                   Matured
                      Property-backed                                 MSE and Retail                                                                  Other Assets
    Loan                                           Loan                                        Receivables                 Receivables
                           Loan                                         Portfolio"



               -                     -                       -             230,352                     912                                 -                         -

               -            44,672                           -               23,945                 37,778                               19                          -

               -                     -                       -                2,142                 10,990                             4,439                         -

               -                     -                       -               49,224                658,421                              353                          -

               -                     -                       -                8,241                114,636                               67                          -

               -        17,779,288                           -             385,273               5,277,802                   1,772,817                               -

               -                     -                       -             393,539                 769,859                         44,925                            -

               -                     -                       -               40,357                449,968                         32,013                            -

               -                     -                       -                7,540                483,661                             3,688                         -

               -                     -                       -             392,518                 637,355                              267                          -

               -            44,672                           -               35,051              2,404,474                         68,164                            -

               -                     -                       -                      -                           -                          -                         -

               -                     -                       -               53,120                245,914                             8,136                         -

               -                     -                       -               16,297                 56,586                              274                          -

               -                     -                       -               20,768                 23,834                             2,479                         -

               -                     -                       -               20,677                  6,243                             2,802                         -

               -                     -                       -                      -                           -                          -                         -

               -                     -                       -               34,389                498,657                             2,703                         -

 241,719,822                         -            1,682,018               5,593,232              2,736,288                   1,721,837                               -

               -                     -                       -                1,078                697,714                                 -            10,408,685

 241,719,822            17,868,631                 1,682,018              7,307,744             15,111,090                   3,664,982                  10,408,685




                                                                                        PT Bank Tabungan Negara (Persero) Tbk                                     335
Page 338
                                          Information on Capital
                                          and Risk Exposure




Table of Disclosure of Receivables and Reserves by Region
as of December 31,2023 and December 31,2022

                                                                                                                                   December 31, 203
  No.                   Portfolio Category
                                                                                          Java Non-
                                                                Jabodetabek                                      Sumatera                Others*
                                                                                         Jabodetabek

    1       Receivables                                          238,015,051             126,378,439             48,205,950              58,355,472

            Receivables with credit risk
    2       improvement and worsening (Stage 2                     6,024,136               5,319,970              1,381,640               1,384,564
            and Stage 3)

            a. Not yet due                                         4,540,865               3,538,582               657,922                  723,765

            b. Due                                                 1,483,270               1,781,389               723,719                  660,799

            Allowance for Impairment Losses -
    3                                                              4,180,045               4,578,686              1,097,470               1,190,983
            Individual

            Allowance for Impairment Losses -
    4                                                              2,359,610               1,343,496               554,279                  335,980
            Collective

    5       Written-off receivables                                1,024,638               1,230,976               288,977                  514,982
* Others consist of Kalimantan, Sulawesi, Bali, Maluku




Table of Disclosure of Receivables and Reserves by Economic Sector
as of December 31, 2023 and December 31, 2022

                                                                                                                              December 31, 2023
                     Economic Sector
   No.                                                                            Impaired receivables              Allowance for        Allowance for
                                                         Receivables                                              Impairment Losses       Impairment
                                                                           Not Yet Due               Due             - Individua       Losses - Collective

    1       Agriculture, Hunting, Forestry                  104,807                82                      61                 62                  353

    2       Fisheries                                          8,531               78                        -                50                   29

    3       Mining and Excavation                          1,838,446               71                    5,917           5,917                    109

    4       Manufacturing                                   568,210              1,057                   5,108           5,749                    578

    5       Electricity, Gas and Water                     5,006,747             4,745                    502               502                4,853

    6       Construction                                  34,410,098       3,657,557             2,598,159           4,578,642            1,917,858

    7       Wholesale and Retail Trade                     5,266,181             7,387              39,458              40,977                 9,501

            Accommodation and Food
    8                                                       484,604            197,451              28,320              29,044              196,761
            Services

            Transportation, Warehousing
    9                                                      4,356,782           233,831                   1,129           7,182              227,778
            and Communication

   10       Financial Intermediary                        20,084,700              293                      11                 68               8,170

            Real Estate, Rental Business
   11                                                      3,663,500           804,534             108,894             506,186              417,043
            and Corporate Services

            Public Administration, Defense
   12                                                      1,180,000             6,120                       -                 -               6,120
            and Mandatory Social Security

   13       Education Services                              152,383             73,419                    640            1,036               78,211

            Health Services and Social
   14                                                        68,094               186                        -                 -                  736
            Works

            Public and Sociocultural
   15       Services, Entertainment and                     130,203               637                      70               197                   510
            Other Personal Services

   16       Private Household Services                   214,100,606       4,115,658             1,431,516           4,482,671            1,064,503

            International Agencies and
   17       Other Extra International                                  -             -                       -                 -                    -
            Agencies

   18       Unspecified Activities                          448,589               545                     838               852                1,165

   19       Non-Business Field                            34,879,361                 -                       -         734,042              330,526




336             PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                    2023 Annual Report




                                                                                                                                      (in million IDR)


                                                                      December 31, 2022

                                                Jawa Non-
        Total            Jabodetabek                                          Sumatera                  Others*                    Total
                                               Jabodetabek

    470,954,911          200,995,545            96,070,121                47,281,062                  48,752,870               393,099,598


     14,110,311             7,564,838            3,082,356                    1,334,572                1,504,680                13,486,447


       9,461,134            4,904,350            1,695,496                      620,231                  734,844                 7,954,922

       4,649,177            2,660,488            1,386,860                      714,341                  769,836                 5,531,525

     11,047,183             4,720,165            2,147,945                      996,692                1,172,726                 9,037,529


       4,593,364            3,965,316            1,407,240                      462,656                  404,949                 6,240,160

       3,059,573              996,543            1,013,532                      272,214                  589,772                 2,872,060




                                                                                                                                      (in million IDR)


                                                                      December 31, 2022

                                              Impaired receivables                  Allowance for          Allowance for
Written-off claims    Receivables                                                 Impairment Losses         Impairment         Written-off claims
                                        Not Yet Due              Due                 - Individua         Losses - Collective

           711           166,351               156                      29                    81                  25,364                       -

                -         29,068                 55                      0                      -                 18,792                   214

                -         62,986               370                    5,700                 5,798                    420                       -

                -        604,090               960                    6,036                 6,207                  1,587              15,073

         2,211         3,462,489               862                    3,133                 3,133                  1,065                       -

       871,721        39,139,058         3,819,669            3,445,780               4,800,058              3,368,432               845,151

        12,678         2,834,499            39,813                   58,925                80,588                 31,489             179,886

           631           506,597           240,091                   87,788                94,036              240,193                39,647


         3,948         4,570,782           159,772                    3,321                 5,311              159,782                  7,123

                -     38,028,844               277                      22                    22               261,490                  7,122

         8,136         3,693,389           586,752              319,537                   318,678              618,720               114,400


                -                   -                 -                   -                     -                        -                     -

         1,223           273,893            71,601                    9,555                11,212                 84,884                       -

           760         1,045,028               474                     652                   660                   6,105                       -


           409           560,700             3,862                     276                  3,749                    389              75,073


     1,125,415            27,632               317                    2,576           3,702,061                915,532             1,374,956


                -                   -                 -                   -                     -                        -                     -


         3,922           438,627             2,992                     392                   320                   3,794                   100

       224,726       238,391,712         2,809,797            1,456,815                     5,615              393,912               144,114




                                                                              PT Bank Tabungan Negara (Persero) Tbk                          337
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                                    Information on Capital
                                    and Risk Exposure




                                                                                                                                 December 31, 2023
                  Economic Sector
  No.                                                                         Impaired receivables                  Allowance for                Allowance for
                                                   Receivables                                                    Impairment Losses               Impairment
                                                                       Not Yet Due                Due                - Individua               Losses - Collective

  20     Others                                 144,203,071              357,482                 428,556                     654,007                328,560

         Total                                  470,954,911            9,461,134             4,649,177              11,047,183                    4,593,364



Table of Details of Allowance for Impairment Losses (CKPN) Transfer
as of December 31, 2023 and December 31, 2022                                                                                                          (in million IDR)


                                                                                                                    December 31, 2023
  No.                                          Description
                                                                                                         Individual CKPN                 Collective CKPN

   1     CKPN opening balance                                                                               11,055,864                          4,623,340

   2     CKPN establishment (recovery) in current period (Net)                                                2,246,783                           696,116

         2.a. Establishment of CKPN in period the current period                                              2,246,783                           696,116

         2.b. CKPN recovery in current period                                                                                -                             -

   3     CKPN used in current period’s receivable write-off                                                 (2,255,465)                          (726,092)

   4     Other establishment (recovery) in current period                                                                    -                             -

         CKPN closing balance                                                                               11,047,183                          4,593,364


The Disclosure of Net Receivables by Portfolio Category and Rating Scale and Counterparty Credit Risk is presented below:


Table of Net Receivables by Portfolio Category and Rating Scale
December 31, 2023

                                                                                                        Net Receivable

                                                                    Rating Agency                                Long Term Rating

                                                                   Standards and
                                                                                            AAA             AA+ to AA-             A+ to A-         BBB+ to BBB-
                                                                       Poor's

                                                                     Fitch Rating           AAA              AA+ toAA-             A+ to A-         BBB+ to BBB-
  No                     Portfolio Category
                                                                      Moody's               Aaa             Aa1 to Aa3            A1 to A3          Baa1 to Baa3

                                                                   PT Fitch Ratings                         AA+ (idn) to          A+(idn) to         BBB+(idn) to
                                                                                          AAA (idn)
                                                                      Indonesia                              AA- (idn)             A-(idn)            BBB-(idn)

                                                                 PT Pemeringkat Efek                          idAA+ to                                idBBB+ to
                                                                                           idAAA                                 idA+ to idA-
                                                                      Indonesia                                idAA-                                   idBBB-

   1     Receivables from the Government                                                     -                           -                 -                      -

   2     Receivables from Public Sector Entities                                        2,332,828           4,060,685              601,890           6,882,528

         Receivables from Multilateral Development Banks
   3                                                                                         -                           -                 -                      -
         and International Institutions


   4     Receivables from Banks                                                              -                      -8                     -                      -


   5     Receivables of a Covered Bond                                                       -                           -                 -                      -

         Receivables from Securities Companies and Other
   6                                                                                         -                           -                 -                      -
         Financial Services Institutions

         Receivables in the form of Securities/
   7     Subordinated Receivables, Equity and Other                                          -                           -                 -                      -
         Capital Instruments

   8     House-backed Loan                                                                   -                           -                 -                      -

   9     Commercial Property-backed Loan                                                     -                           -                 -                      -

         Loan for Land Acquisition, Land Management and
  10                                                                                         -                           -                 -                      -
         Construction




338         PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                    2023 Annual Report




                                                                                       December 31, 2022

                                                            Impaired receivables                   Allowance for             Allowance for
Written-off claims            Receivables                                                        Impairment Losses            Impairment              Written-off claims
                                                      Not Yet Due              Due                  - Individua            Losses - Collective

       803,083                59,263,855                 217,100              130,990                           -                108,209                     69,199

      3,059,573            393,099,598                 7,954,922             5,531,525                  9,037,529               6,240,160                  2,872,060




                                                                                                                                                             (in million IDR)


                                                                                                                             December 31, 2022
No.                                                 Description
                                                                                                              Individual CKPN                    Collective CKPN

  1      CKPN opening balance                                                                                        8,336,777                         6,174,981

  2      CKPN establishment (recovery) in current period (Net)                                                       2,968,511                         1,070,996

         2.a. Establishment of CKPN in period the current period                                                     2,968,511                         1,070,996

         2.b. CKPN recovery in current period                                                                                    -                                 -

  3      CKPN used in current period’s receivable write-off                                                         (2,275,374)                         (596,686)

  4      Other establishment (recovery) in current period                                                                        -                                 -

         CKPN closing balance                                                                                        9,029,914                          6,649,291




                                                                                                                                                             (in million IDR)



                                                                         Net Receivable

                 Long Term Rating                                              Short Term Rating

 BB+ to BB-           B+ to B-         Less than B-          A-1              A-2                 A-3          Less than A-3

 BB+ to BB-           B+ to B-         Less than B-        F1 to F1            F2                  F3          Less than F3

 Ba1 to Ba3           B1 to B3         Less than B3           p-1             p-2                 p-3          Less than P-3          No Rating                Total

 BB+(idn) to          B+(idn) to        Less than         F1+(idn) to                                            Less than
                                                                            F2(idn)              F3(idn)
  BB-(idn)             B-(idn)           B-(idn)            F1(idn)                                               F3(idn)

                                        Less than                                                                Less than
idBB+ to idBB-       idB+ to idB-                            idA1            idA2             idA3 to id A4
                                          idB-                                                                     idA4

          -               -                     -                   -              -                -                  -              85,096,880           85,096,880

  655,294                 -             147,721                     -              -                -                  -               1,577,356           16,258,302


          -               -                     -                   -              -                -                  -                          -                      -


          -               -                     -                                  -                -                  -               2,351,924             3,585,466
                                                         1,233,550

          -               -                     -                   -              -                -                  -                          -                      -


          -               -                     -           21,184                 -                -                  -                          -             21,184



          -               -                     -                   -              -                -                  -                          -                      -


          -               -                     -                   -              -                -                  -             268,704,264          268,704,264

          -               -                     -                   -              -                -                  -               5,943,455             5,943,455


          -               -                     -                   -              -                -                  -              15,870,870           15,870,870




                                                                                             PT Bank Tabungan Negara (Persero) Tbk                                 339
Page 342
                                         Information on Capital
                                         and Risk Exposure




                                                                                                                Net Receivable

                                                                           Rating Agency                                    Long Term Rating

                                                                           Standards and
                                                                                                       AAA            AA+ to AA-           A+ to A-        BBB+ to BBB-
                                                                               Poor's

                                                                            Fitch Rating               AAA            AA+ toAA-            A+ to A-        BBB+ to BBB-
   No                        Portfolio Category
                                                                              Moody's                  Aaa            Aa1 to Aa3          A1 to A3         Baa1 to Baa3

                                                                          PT Fitch Ratings                            AA+ (idn) to        A+(idn) to        BBB+(idn) to
                                                                                                    AAA (idn)
                                                                             Indonesia                                 AA- (idn)           A-(idn)           BBB-(idn)

                                                                       PT Pemeringkat Efek                             idAA+ to                              idBBB+ to
                                                                                                      idAAA                              idA+ to idA-
                                                                            Indonesia                                   idAA-                                 idBBB-

   11       Employee/Retiree Loan                                                                       -                        -                  -                  -

   12       Receivables from MSE and Retail Portfolio                                                   -                        -                  -                  -

   13       Corporate Receivables                                                                       -             5,118,942          2,949,560                     -

   14       Matured Receivables                                                                         -                        -                  -                  -

   15       Other Assets                                                                                -                        -                  -                  -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.


December 31, 2022

                                                                                                                Net Receivable

                                                                           Rating Agency                                    Long Term Rating

                                                                           Standards and
                                                                                                       AAA            AA+ to AA-           A+ to A-        BBB+ to BBB-
                                                                               Poor's

                                                                            Fitch Rating               AAA            AA+ toAA-            A+ to A-        BBB+ to BBB-
   No                        Portfolio Category

                                                                              Moody's                  Aaa            Aa1 to Aa3          A1 to A3         Baa1 to Baa3

                                                                          PT Fitch Ratings                            AA+ (idn) to        A+(idn) to        BBB+(idn) to
                                                                                                    AAA (idn)
                                                                             Indonesia                                 AA- (idn)           A-(idn)           BBB-(idn)

                                                                       PT Pemeringkat Efek                             idAA+ to                              idBBB+ to
                                                                                                      idAAA                              idA+ to idA-
                                                                            Indonesia                                   idAA-                                 idBBB-

    1       Receivables from the Government                                                                 -                    -             -                  -

    2       Receivables from Public Sector Entities                                                         -          112,332                 -                  -

            Receivables from Multilateral Development Banks
    3                                                                                                       -                    -             -                  -
            and International Institutions

    4       Receivables from Banks                                                                          -          337,913                 -                  -

    5       House-backed Loan                                                                               -                    -             -                  -

    6       Commercial Property-backed Loan                                                                 -                    -             -                  -

    7       Employee/Retiree Loan                                                                           -                    -             -                  -

    8       Receivables from MSE and Retail Portfolio                                                       -                    -             -                  -

    9       Corporate Receivables                                                                           -                    -             -                  -

   10       Matured Receivables                                                                             -                    -             -                  -

   11       Other Assets                                                                                    -                    -             -                  -
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




340            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                    2023 Annual Report




                                                                 Net Receivable

                 Long Term Rating                                     Short Term Rating

 BB+ to BB-          B+ to B-       Less than B-      A-1            A-2              A-3         Less than A-3

 BB+ to BB-          B+ to B-       Less than B-    F1 to F1         F2                F3         Less than F3

 Ba1 to Ba3          B1 to B3       Less than B3      p-1            p-2              p-3         Less than P-3     No Rating           Total

 BB+(idn) to        B+(idn) to       Less than     F1+(idn) to                                      Less than
                                                                   F2(idn)           F3(idn)
  BB-(idn)           B-(idn)          B-(idn)        F1(idn)                                         F3(idn)

                                     Less than                                                      Less than
idBB+ to idBB-     idB+ to idB-                       idA1          idA2          idA3 to id A4
                                       idB-                                                           idA4

             -           -                   -               -         -                -               -           2,273,664         2,273,664

             -           -                   -               -         -                -               -           6,749,481         6,749,481

  119,318                -           753,195                 -         -                -               -          10,106,943        19,047,958

             -           -                   -               -         -                -               -           6,823,125         6,823,125

             -           -                   -               -         -                -               -          13,507,510        13,507,510




                                                                 Net Receivable

                 Long Term Rating                                     Short Term Rating

                                                                                                   Less than
 BB+ to BB-         B+ to B-        Less than B-      A-1            A-2              A-3
                                                                                                     A-3
                                                                                                   Less than
 BB+ to BB-         B+ to B-        Less than B-    F1 to F1         F2                F3
                                                                                                      F3
                                     Less than                                                     Less than        No Rating           Total
Ba1 to Ba3          B1 to B3                          p-1            p-2              p-3
                                        B3                                                           P-3
BB+(idn) to         B+(idn) to       Less than     F1+(idn) to                                     Less than
                                                                   F2(idn)          F3(idn)
 BB-(idn)            B-(idn)          B-(idn)        F1(idn)                                        F3(idn)
  idBB+ to                           Less than                                     idA3 to id      Less than
                  idB+ to idB-                        idA1          idA2
    idBB-                              idB-                                           A4             idA4
  23,543                 -               -              -              -                -               -          70,871,945        70,895,488

         -               -               -              -              -                -               -          13,577,969        13,690,301

         -               -               -              -              -                -               -                       -               -

         -               -               -              -              -                -               -           1,572,856         1,910,769

         -               -               -              -              -                -               -
                                                                                                                  241,719,822       241,719,822

         -               -               -              -              -                -               -          17,850,675        17,850,675

         -               -               -              -              -                -               -           1,682,018         1,682,018

         -               -               -              -              -                -               -           7,304,129         7,304,129

         -               -               -              -              -                -               -          14,024,660        14,024,660

         -               -               -              -              -                -               -           3,664,982         3,664,982

         -               -               -              -              -                -               -          10,408,685        10,408,685




                                                                                  PT Bank Tabungan Negara (Persero) Tbk                     341
Page 344
                                         Information on Capital
                                         and Risk Exposure




Counterparty Credit Risk, on the other hand, is divided into 2
(two), which are:
1. Over the Counter Derivative Transaction                                               2. Repo Transaction
    The Company has no derivative transactions as of December                               Descriptions related to Repo Transactions are described in
    31, 2023 and December 31, 2022                                                          the following Table:



Table of Repo Transaction                                                                                                                                    (in million IDR)



                                                                                                              December 31, 2023


  No                    Portfolio Category **)                               Repo
                                                                            Interest                  Repo                       Net
                                                                                                                                                            RWA
                                                                           Rate Fair                Liabilities              Receivables
                                                                             Value

   1     Receivables from the Government                                        -                         -                         -                         -

   2     Receivables from Public Sector Entities                                -                         -                         -                         -

         Receivables from Multilateral Development Banks
   3                                                                            -                         -                         -                         -
         and International Institutions

   4     Receivables from Banks                                                 -                         -                         -                         -

         Receivable to Securities Companies and Other
   5                                                                            -                         -                         -                         -
         Financial Services Institutions

   6     Receivables from MSE and Retail Portfolio                              -                         -                         -                         -

   7     Corporate Receivables                                                  -                         -                         -                         -

         Jumlah                                                                 -                         -                         -                         -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                             (in million IDR)



                                                                                                              December 31, 2022


  No                    Portfolio Category **)                               Repo
                                                                            Interest                  Repo                       Net
                                                                                                                                                            RWA
                                                                           Rate Fair                Liabilities              Receivables
                                                                             Value

   1     Receivables from the Government                                        -                         -                         -                         -

   2     Receivables from Public Sector Entities                                -                         -                         -                         -

         Receivables from Multilateral Development Banks
   3                                                                            -                         -                         -                         -
         and International Institutions

   4     Receivables from Banks                                                 -                         -                         -                         -

   5     Receivables from MSE and Retail Portfolio                              -                         -                         -                         -

   6     Corporate Receivables                                                  -                         -                         -                         -

         Total                                                                  -                         -                         -                         -

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




342              PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                      2023 Annual Report




3. Reverse Repo Transaction
   The Company does not have Reverse Repo transactions as of December 31, 2023 and December 31, 2022.


Table of Repo Transaction                                                                                                                                    (in million IDR)



                                                                                                              December 31, 2023


  No                    Portfolio Category *)                                                    Allowance for
                                                                                                  Impairment
                                                                         Receivables                                       Net Receivables                 ATMR
                                                                                                      Losses
                                                                                                     (CKPN)

   1     Receivables from the Government                                        0                         -                         0

   2     Receivables from Public Sector Entities                                -                         -                         -

         Receivables from Multilateral Development Banks
   3                                                                            -                         -                         -
         and International Institutions

   4     Receivables from Banks                                                 -                         -                         -

   5     Receivables from MSE and Retail Portfolio                              -                         -                         -

   6     Corporate Receivables                                                  -                         -                         -

         Total                                                                  0                         -                         0                         -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.



                                                                                                                                                             (in million IDR)



                                                                                                              December 31, 2022


  No                    Portfolio Category **)                                                   Allowance for
                                                                                                  Impairment
                                                                         Receivables                                       Net Receivables                 ATMR
                                                                                                      Losses
                                                                                                     (CKPN)

   1     Receivables from the Government                                  1,434,190                       -                    1,434,190                      -

   2     Receivables from Public Sector Entities                                      -                   -                                -                  -

         Receivables from Multilateral Development Banks
   3                                                                                  -                   -                                -                  -
         and International Institutions

   4     Receivables from Banks                                                       -                   -                                -                  -

   5     Receivables from MSE and Retail Portfolio                                    -                   -                                -                  -

   6     Corporate Receivables                                                        -                   -                                -                  -

         Total                                                             1,434,190                      -                     1,434,190                     -

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.



In order to reduce credit risk exposure, Bank BTN pre-screens                             credit exposure by industry sector to analyze the concentration of
the debtors, requires debtors to meet the collateral requirement,                         credit risk. The Disclosure of Net Receivables by Risk Weight after
analyzes and evaluates credit eligibility and enters into legal loan                      considering the Impact of Credit Risk Mitigation (CRM) and the
commitments. Bank BTN has allocated the credit exposure by                                Disclosure of Net Receivables and Credit Risk Mitigation (CRM)
the geographic area in which they operate as well as allocating                           Techniques are provided as follows:




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                               343
Page 346
                                     Information on Capital
                                     and Risk Exposure




Table of Net Receivables Based on Risk Weight after Taking into Account the Impact of Credit Risk Mitigation
as of December 31, 2023 and December 31, 2022

December 31, 2023

                                                                              Net Receivables After Taking into Account
                                                                                the Impact of Credit Risk Mitigation
  No.                Portfolio Category *)
                                                               0%           20%           25%            35%          40%          50%

 A        Balance Sheet Exposure
     1    Receivables from the Government                     84,993,137            -               -            -            -            -

     2    Receivables from Public Sector Entities                      -    7,640,801               -            -            -    7,279,886

          Receivables from Multilateral Development
     3                                                                 -            -               -            -            -            -
          Banks and International Institutions
     4    Receivables from Banks                                       -    2,702,861               -            -     732,366             -

     5    Receivables of a Covered Bond                                -            -               -            -            -            -

          Receivables from Securities Companies and
     6                                                                 -            -               -            -            -            -
          Other Financial Services Institutions
          Receivables in the form of Securities/
     7    Subordinated Receivables, Equity and Other                   -            -               -            -            -            -
          Capital Instruments
     8    House-backed Loan                                            -   27,953,501    24,576,403     88,792,969   78,815,289   47,035,119

     9    Commercial Property-backed Loan                              -            -               -            -            -     308,887

          Loan for Land Acquisition, Land Management
     10                                                                -            -               -            -            -            -
          and Construction
     11   Employee/Retiree Loan                                        -            -               -            -            -    2,273,660

     12   Receivables from MSE and Retail Portfolio                    -            -               -            -            -            -

     13   Corporate Receivables                                        -    4,290,164               -            -            -    2,472,014

     14   Matured Receivables                                          -            -               -            -            -            -

     15   Other Assets                                         2,127,490            -               -            -            -            -

          Total Balance Sheet Exposure                        87,120,627   42,587,327    24,576,403     88,792,969   79,547,655   59,369,566

 B        Exposure of Commitment/Contingency Obligations in Administrative Account Transactions
     1    Receivables from the Government                       103,743             -               -            -            -            -

     2    Receivables from Public Sector Entities                      -     271,826                -            -            -     262,774

          Receivables from Multilateral Development
     3                                                                 -            -               -            -            -            -
          Banks and International Institutions
     4    Receivables from Banks                                       -            -               -            -            -            -

          Receivables from Securities Companies and
     5                                                                 -            -               -            -          450            -
          Other Financial Services Institutions
     6    House-backed Loan                                            -          472             403       1,575         1,492          821

     7    Commercial Property-backed Loan                              -            -               -            -            -        7,955

          Loan for Land Acquisition, Land Management
     8                                                                 -            -               -            -            -            -
          and Construction
     9    Employee/Retiree Loan                                        -            -               -            -            -            4

     10   Receivables from MSE and Retail Portfolio                    -            -               -            -            -            -

     11   Corporate Receivables                                        -     889,687                -            -            -     512,642

     12   Matured Receivables                                          -            -               -            -            -            -

          Total Administrative Account Transactions
                                                                103,743     1,161,985             403        1,575        1,942     784,196
          Exposure
 C        Exposure from Counterparty Credit Risk
     1    Receivables from the Government                             0             -               -            -            -            -

     2    Receivables from Public Sector Entities                      -            -               -            -            -            -

          Receivables from Multilateral Development
     3                                                                 -            -               -            -            -            -
          Banks and International Institutions
     4    Receivables from Banks                                       -            -               -            -            -            -

          Tagihan Kepada Perusahaan Efek dan
     5                                                                 -            -               -            -            -            -
          Lembaga Jasa Keuangan Lainnya




344          PT Bank Tabungan Negara (Persero) Tbk
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                                                                                   2023 Annual Report




                                                                                                                    (in million IDR)



                      Net Receivables After Taking into Account
                        the Impact of Credit Risk Mitigation                                                         Capital
                                                                                                    RWA
                                                                                                                    Expense
60%        70%           75%            85%           100%            150%          Other


       -          -              -              -              -               -              -                 -                -

       -          -              -              -        632,464        142,575               -         5,573,249       511,624

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -          833,519          76,517

       -          -              -              -              -               -              -                 -                -

       -          -         20,734              -              -               -              -            8,294             761



       -          -              -              -              -               -              -                 -                -


       -    882,179        644,029              -              -               -              -     70,123,127        6,437,303

  19,734          -        524,042      1,921,544              -               -     3,020,934          4,853,986       445,596

       -          -              -              -     13,310,791       1,722,657              -     15,879,575        1,457,745

       -          -              -              -              -               -              -         1,136,830       104,361

       -          -      3,566,851      1,515,198        163,255               -     1,500,537          4,567,635       419,309

       -          -              -      1,161,199      7,267,962        631,250               -     10,209,652          937,246

       -          -              -              -      3,806,223       3,012,844              -         8,325,489       764,280

       -          -              -              -     11,302,430         77,591               -     11,418,815        1,048,247

  19,734    882,179      4,755,656      4,597,941     36,483,126       5,586,916     4,521,472     132,930,171       12,202,989



       -          -              -              -              -               -              -                 -                -

       -          -              -              -         22,829          5,146               -          216,301          19,856

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -              180               17

       -         12              -              -              -               -              -            1,260             116

       -          -         13,079         49,484              -               -        77,796           124,384          11,418

       -          -              -              -        739,001         98,421               -          885,788          81,315

       -          -              -              -              -               -              -                2                 -

       -          -          1,948            872              -               -            820            2,443             224

       -          -              -        240,808      1,451,323        130,908               -         2,254,449       206,958

       -          -              -              -              -          4,058               -            6,087             559

       -         12         15,027        291,164      2,213,153        238,533         78,615          3,490,895       320,463




       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -                 -                -

       -          -              -              -              -               -              -                 -                -




                                                                   PT Bank Tabungan Negara (Persero) Tbk                  345
Page 348
                                         Information on Capital
                                         and Risk Exposure




                                                                                           Net Receivables After Taking into Account
                                                                                             the Impact of Credit Risk Mitigation
  No.                   Portfolio Category *)
                                                                       0%               20%                 25%             35%               40%                 50%

     6      Receivables from MSE and Retail Portfolio                           -                 -                 -                -                 -                    -

     7      Corporate Receivables                                               -                 -                 -                -                 -                    -

            Total Counterparty Credit Risk Exposure                            0                  -                 -                -                 -                    -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.


December 31, 2022

                                                                                           Net Receivables After Taking into Account
                                                                                             the Impact of Credit Risk Mitigation
  No.                  Portfolio Category **)
                                                                         0%                  20%                    25%                  35%                  40%

 A          Balance Sheet Exposure
     1      Receivables from the Government                          70,895,488                         -                    -                     -              -
     2      Receivables from Public Sector Entities                                 -         112,332                        -                     -              -
            Receivables from Multilateral Development
     3                                                                              -                   -                    -                     -              -
            Banks and International Institutions
     4      Receivables from Banks                                                  -       1,870,587                        -                     -              -
     5      House-backed Loan                                                       -     22,871,181              52,672,589        166,176,052                   -
     6      Commercial Property-backed Loan                                         -                   -                    -                     -              -
     7      Employee/Retiree Loan                                                   -                   -                    -                     -              -
     8      Receivables from MSE and Retail Portfolio                    326,143              163,150                        -                     -              -
     9      Corporate Receivables                                     2,785,212                         -                    -                     -              -
     10     Matured Receivables                                                     -       1,017,561                        -                     -              -
     11     Other Assets                                              1,661,534                         -                    -                     -              -
            Total Balance Sheet Exposure                              75,668,376           26,034,811             52,672,589         166,176,052                  -
 B          Exposure of Commitment/Contingency Obligations in Administrative Account Transactions
     1      Receivables from the Government                                         -                   -                    -                     -              -
     2      Receivables from Public Sector Entities                                 -                   -                    -                     -              -
            Receivables from Multilateral Development
     3                                                                              -                   -                    -                     -              -
            Banks and International Institutions
     4      Receivables from Banks                                                  -                   -                    -                     -              -
     5      House-backed Loan                                                       -                   -                    -                     -              -
     6      Commercial Property-backed Loan                                         -                   -                    -                     -              -
     7      Employee/Retiree Loan                                                   -                   -                    -                     -              -
     8      Receivables from MSE and Retail Portfolio                               -                   -                    -                     -              -
     9      Corporate Receivables                                                   -                   -                    -                     -              -
     10     Matured Receivables                                                     -                   -                    -                     -              -
            Total Administrative Account Transactions
                                                                                    -                   -                    -                     -              -
            Exposure
 C          Exposure from Counterparty Credit Risk
     1      Receivables from the Government                           1,434,190                         -                    -                     -              -
     2      Receivables from Public Sector Entities                                 -                   -                    -                     -              -
            Receivables from Multilateral Development
     3                                                                              -                   -                    -                     -              -
            Banks and International Institutions
     4      Receivables from Banks                                                  -                   -                    -                     -              -
     5      Receivables from MSE and Retail Portfolio                               -                   -                    -                     -              -
     6      Corporate Receivables                                                   -                   -                    -                     -              -
            Total Counterparty Credit Risk Exposure                    1,434,190                        -                    -                     -              -
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




346            PT Bank Tabungan Negara (Persero) Tbk
Page 349
                                                                                         2023 Annual Report




                           Net Receivables After Taking into Account
                             the Impact of Credit Risk Mitigation                                                             Capital
                                                                                                              RWA
                                                                                                                             Expense
60%       70%                 75%             85%           100%            150%             Other
      -            -                  -                -            -              -                 -                  -                   -

      -            -                  -                -            -              -                 -                  -                   -

      -            -                  -                -            -                                                   -                   -




                       Net Receivables After Taking into Account
                         the Impact of Credit Risk Mitigation                                                                Capital
                                                                                                           RWA
                                                                                                                            Expense
45%          50%                    75%              100%           150%               Other


  -                    -                  -                 -                -           -                          -                   -
  -       13,577,969                      -                 -                -           -                6,811,451           630,059

  -                    -                  -                 -                -           -                          -                   -

  -          40,182                       -                 -                -           -                 394,208             36,464
  -                    -                  -                 -                -           -               58,420,939         5,403,937
  -                    -                  -     17,850,675                   -           -               17,236,491         1,594,375
  -        1,682,018                      -                 -                -           -                 841,009             77,793
  -                    -         6,814,836                  -                -           -                5,143,757           475,798
  -                    -                  -     11,239,448                   -           -               11,239,448         1,039,649
  -                    -                  -          485,354       2,162,068             -                3,931,967           363,707
  -                    -                  -         8,669,561           77,591           -                8,785,946           812,700
  -       15,300,168             6,814,836       38,245,038        2,239,658             -           112,805,216            10,434,483


  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                          -                   -

  -                    -                  -                 -                -           -                          -                   -

  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -           17,956                 -           -                  17,956              1,661
  -                    -                  -                 -                -           -                          -                   -
  -                    -             3,615                  -                -           -                    2,711               251
  -                    -                  -         1,086,430                -           -                1,086,430           100,495
  -                    -                  -                 -                -           -                          -                   -

  -                    -             3,615          1,104,386                -           -                1,107,098           102,407



  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                          -                   -

  -                    -                  -                 -                -           -                          -                   -

  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                          -                   -
  -                    -                  -                 -                -           -                        -                     -




                                                                        PT Bank Tabungan Negara (Persero) Tbk                     347
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                                      Information on Capital
                                      and Risk Exposure




Table of Net Claims and Credit Risk Mitigation Techniques
as of December 31, 2023 and December 31, 2022                                                                                    (in million IDR)


                                                                                             December 31, 2023

                                                                                            Guaranteed portion
 No.               Portfolio Category *)
                                                           Net                                                                Unguaranteed
                                                       Receivables                                       Credit                  portion
                                                                         Collateral       Guarantee                   Other
                                                                                                       Insurance
 A       Asset Exposure in the Statement of Financial Position, except Securitization Exposure
     1   Receivables from the Government                   84,993,137              -             -                -     -        84,993,137

     2   Receivables from Public Sector Entities           15,695,726              -             -                -     -        15,695,726

         Receivables from Multilateral Development
     3                                                              -              -             -                -     -                    -
         Banks and International Institutions
     4   Receivables from Banks                             3,435,227              -             -                -     -         3,435,227

     5   Receivables of a Covered Bond                              -              -             -                -     -                    -

         Receivables from Securities Companies
     6                                                         20,734              -             -                -     -            20,734
         and Other Financial Services Institutions
         Receivables in the form of Securities/
     7   Subordinated Receivables, Equity and                       -              -             -                -     -                    -
         Other Capital Instruments
     8   House-backed Loan                                268,699,489              -             -      150,857,293     -       117,842,195

     9   Commercial Property-backed Loan                    5,795,141        67,626              -                -     -         5,727,515

         Loan for Land Acquisition, Land
 10                                                        15,033,448              -             -                -     -        15,033,448
         Management and Construction
 11      Employee/Retiree Loan                              2,273,660              -             -                -     -         2,273,660

 12      Receivables from MSE and Retail Portfolio          6,745,842       234,029              -         233,829      -         6,277,984

 13      Corporate Receivables                             15,822,590       155,178              -                -     -        15,667,412

 14      Matured Receivables                                6,819,067              -             -                -     -         6,819,067

 15      Other Assets                                      13,507,510              -             -                -     -        13,507,510

         Total Balance Sheet Exposure                     438,841,570       456,833              -      151,091,122     -       287,293,615

 B       Exposure of Commitment Obligations or Contingent Obligations in TRA, except Securitization Exposure
     1   Receivables from the Government                     103,743               -             -                -     -           103,743

     2   Receivables from Public Sector Entities             562,576               -             -                -     -           562,576

         Receivables from Multilateral Development
     3                                                              -              -             -                -     -                    -
         Banks and International Institutions
     4   Receivables from Banks                                     -              -             -                -     -                    -

         Receivables from Securities Companies
     5                                                           450               -             -                -     -                450
         and Other Financial Services Institutions
     6   House-backed Loan                                      4,776              -             -                -     -              4,776

     7   Commercial Property-backed Loan                     148,313               -             -                -     -           148,313

         Loan for Land Acquisition, Land
     8                                                       837,422               -             -                -     -           837,422
         Management and Construction
     9   Employee/Retiree Loan                                     4               -             -                -     -                   4

 10      Receivables from MSE and Retail Portfolio              3,640              -             -                -     -              3,640

 11      Corporate Receivables                              3,225,368              -             -                -     -         3,225,368

 12      Matured Receivables                                    4,058              -             -                -     -              4,058

         Total Administrative Account Transactions
                                                            4,890,349              -             -                -     -         4,890,349
         Exposure
 C       Exposure Resulting in Counterparty Credit Risk
     1   Receivables from the Government                           0               -             -                -     -                   0

     2   Receivables from Public Sector Entities                    -              -             -                -     -                    -

         Receivables from Multilateral Development
     3                                                              -              -             -                -     -                    -
         Banks and International Institutions
     4   Receivables from Banks                                     -              -             -                -     -                    -




348           PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                      2023 Annual Report




                                                                                                       December 31, 2023

                                                                                                     Guaranteed portion
 No.                Portfolio Category *)
                                                                 Net                                                                                    Unguaranteed
                                                             Receivables                                                Credit                             portion
                                                                                  Collateral       Guarantee                              Other
                                                                                                                      Insurance

         Receivables from Securities Companies
     5                                                                    -                -              -                       -           -                          -
         and Other Financial Services Institutions
     6   Receivables from MSE and Retail Portfolio                        -                -              -                       -           -                          -

     7   Corporate Receivables                                            -                -              -                       -           -                          -

         Total Counterparty Credit Risk Exposure                          0                -              -                       -           -                         0

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                             (in million IDR)


                                                                                                      December 31, 2022

                                                                                                     Guaranteed portion
 No.               Portfolio Category **)
                                                                Net                                                                                     Unguaranteed
                                                             Receivables                                                Credit                             portion
                                                                                  Collateral       Guarantee                              Other
                                                                                                                      Insurance

 A       Balance Sheet Exposure
     1   Receivables from the Government                        70,895,488                     -          -                           -       -              70,895,488

     2   Receivables from Public Sector Entities                13,690,301                     -          -                           -       -              13,690,301

         Receivables from Multilateral Development
     3                                                                        -                -          -                           -       -                              -
         Banks and International Institutions
     4   Receivables from Banks                                  1,910,769                     -          -                           -       -                1,910,769

     5   House-backed Loan                                     212,892,414                     -          -            123,174,569            -              89,717,845

     6   Commercial Property-backed Loan                        16,961,350                     -          -                614,184            -              16,347,165

     7   Employee/Retiree Loan                                   1,682,018                     -          -                           -       -                1,682,018

     8   Receivables from MSE and Retail Portfolio               6,387,580            326,002             -                163,150            -                5,898,428

     9   Corporate Receivables                                  13,982,905          2,785,212             -                           -       -              11,197,694

  10     Matured Receivables                                     3,423,227                     -          -                887,571            -                2,535,656

  11     Other Assets                                           10,408,685                     -          -                           -       -              10,408,685

         Total Balance Sheet Exposure                          352,234,736           3,111,213            -            124,839,474            -              224,284,048

 B       Exposure of Commitment/Contingency Obligations in Administrative Account Transactions
     1   Receivables from the Government                                      -                -          -                           -       -                              -

     2   Receivables from Public Sector Entities                              -                -          -                           -       -                              -

         Receivables from Multilateral Development
     3                                                                        -                -          -                           -       -                              -
         Banks and International Institutions
     4   Receivables from Banks                                               -                -          -                           -       -                              -

     5   House-backed Loan                                                    -                -          -                           -       -                              -

     6   Commercial Property-backed Loan                             17,956                    -          -                           -       -                   17,956

     7   Employee/Retiree Loan                                                -                -          -                           -       -                              -

     8   Receivables from MSE and Retail Portfolio                    3,615                    -          -                           -       -                     3,615

     9   Corporate Receivables                                   1,086,430                     -          -                           -       -                1,086,430

  10     Matured Receivables                                                  -                -          -                           -       -                              -

         Total Administrative Account Transactions
                                                                  1,108,001                    -          -                           -       -                1,108,001
         Exposure
 C       Exposure from Counterparty Credit Risk
     1   Receivables from the Government                         1,434,190                     -          -                           -       -                1,434,190

     2   Receivables from Public Sector Entities                              -                -          -                           -       -                              -

         Receivables from Multilateral Development
     3                                                                        -                -          -                           -       -                              -
         Banks and International Institutions
     4   Receivables from Banks                                               -                -          -                           -       -                              -




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                               349
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                                         Information on Capital
                                         and Risk Exposure




                                                                                                      December 31, 2022

                                                                                                     Guaranteed portion
 No.               Portfolio Category **)
                                                                Net                                                                                     Unguaranteed
                                                             Receivables                                                Credit                             portion
                                                                                 Collateral        Guarantee                              Other
                                                                                                                      Insurance

   5     Receivables from MSE and Retail Portfolio                          -                 -           -                         -         -                          -

   6     Corporate Receivables                                              -                 -           -                         -         -                          -

         Total Counterparty Credit Risk Exposure                  1,434,190                   -           -                        -          -                  1,434,190

**) Referring to OJK Cicular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




Table of Asset Securitization, Rating and Rating Agency

                  Securization
  No.                                         Total Nominal (IDR)                    KPR Unit                          Class                      Avg Tenor EBA (yr)
                  Transactions

                                                                                                                         A1                              2.00

    1       KIK-EBA DBTN 05                   IDR1,500,000,001,615                      33,173                           A2                              5.00

                                                                                                                          B

                                                                                                                         A1                              2.00

    2       EBA-SP SMF-BTN 02                 IDR1,000,000,000,000                      11,280                           A2                              5.00

                                                                                                                          B

                                                                                                                         A1                              2.00

    3       EBA-SP SMF-BTN 03                 IDR1,000,000,000,000                      11,237                           A2                              4.00

                                                                                                                          B

                                                                                                                         A1                              2.00

    4       EBA-SP SMF-BTN 04                 IDR2,000,000,000,000                      18,728                           A2                              5.00

                                                                                                                          B

                                                                                                                         A1                              3.00

                                                                                                                         A2                              5.00
    5       EBA-SP SMF-BTN 05                 IDR2,000,000,000,000                      16,476
                                                                                                                          M                              8.00

                                                                                                                          B

                                                                                                                          A                              3.00
    6       EBA-SP SMF-BTN 06                  IDR631,000,543,015                         7,721
                                                                                                                          B

                                                                                                                          A                              3.00
    7       EBA-SP SMF-BTN 07                  IDR500,000,001,416                         6,188
                                                                                                                          B

                                                                                                                          A                              4.00
    8       EBA-SP SMF-BTN08                   IDR600,000,020,055                         4,340
                                                                                                                          B

 TOTAL                                        IDR9,231,000,566,101                     109,143




350            PT Bank Tabungan Negara (Persero) Tbk
Page 353
                                                                                              2023 Annual Report




Credit Risk: Asset Securitization

Company’s objective in conducting securitization is to transform        For the securitization of KPR (asset-backed securities), the
illiquid assets into liquid assets in the form of tradable securities   Company recognizes it as a sale of the KPR receivable
(called Asset Backed Securities - ABS or Asset Backed Securities        because the Company has transferred the risks and benefits of
- EBA). Securitization of mortgage Assets is carried out by             ownership to a third party. Therefore, on the effective date of
the Company, among others, as an effort to mitigate maturity            the securitization the Company derecognises the collection of
mismatches, alternative sources of mortgage funding and                 claims. The description regarding the calculation of Credit Risk
increase lending capacity. The functions carried out by the             RWA using the standard approach is as follows:
Company in securitization transactions are as Originator,
Servicer and Investor. In the securitization of mortgage claims
(collection of claims), the Company has sold collections of claims
to third parties (mortgage securitization).




   Nominal Class (Rp)         Transaction Date        Maturity Date      Average Life         Class A Coupon         Pefindo Rating


     IDR723,500,000,000                                                                            A1 = 10%

     IDR647,500,000,000      28 November 2014       7 September 2025         6.72               A2 = 10.25%              idAAA

     IDR129,000,001,615

     IDR400,000,000,000                                                                          A1 = 8.15%

     IDR513,000,000,000       31 October 2016          7 June 2027           7.05                A1 = 8.75%              idAAA

       IDR87,000,000,000

     IDR200,000,000,000                                                                          A1 = 8,00%

     IDR713,000,000,000         28 April 2017          7 July 2029           7.78                A2 = 8,40%              idAAA

       IDR87,000,000,000

     IDR700,000,000,000                                                                          A1 = 7,00%

   IDR1,124,000,000,000       28 February 2018         7 May 2029            7.03                A2 = 7,50%              idAAA

     IDR176,000,000,000

     IDR574,000,000,000                                                                          A1 = 8,50%
                                                                                                                         idAAA
   IDR1,142,000,000,000                                                                          A2 = 8,75%
                             27 November 2019          7 May 2032            9.09
       IDR24,000,000,000                                                                        M = 10,40%                idAA

     IDR260,000,000,000

     IDR576,734,000,000
                             30 December 2020          7 July 2032           6.08                     6.50%              idAAA
       IDR54,266,543,015

     IDR452,500,000,000
                             23 December 2022        7 January 2034          5.66                     7.70%              idAAA
       IDR47,500,001,416

     IDR544,800,000,000
                             26 September 2023        7 August 2035          7.44                     6.65%              idAAA
       IDR55,200,020,055

    IDR9,231,000,566,101




                                                                            PT Bank Tabungan Negara (Persero) Tbk                 351
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                                            Information on Capital
                                            and Risk Exposure




Table of Securitization Transaction

                                                                                                                     December 31, 2023

   No.                             Securitization Exposure                                                       Impaired securitized assets              Profit/Loss from
                                                                                         Securitized
                                                                                                                                                           securitization
                                                                                         assets value
                                                                                                                   Due              Not yet due               activities

    1      The Bank acts as Original Creditor                                                   -                    -                    -                        -

           House-backed Receivables                                                       13,386,868                 -                    -                        -

    2      The Bank acts as Supporting Credit Provider                                          -                    -                    -                        -

           a. First risk bearing facility                                                       -                    -                    -                        -

           b. Second risk bearing facility                                                      -                    -                    -                        -

    3      The Bank acts as Liquidity Facility Provider                                         -                    -                    -                        -

    4      The Bank acts as Service Provider                                              13,386,868                 -                    -                        -

    5      The Bank acts as Custodian Bank                                                      -                    -                    -                        -

    6      The Bank acts as Financier                                                           -                    -                    -                        -

           a. Senior tranche                                                                    -                    -                    -                        -

               House-backed Receivables                                                         -                    -                    -                        -

           b. Junior tranche                                                                    -                    -                    -                        -

               House-backed Receivables                                                         -                    -                    -                        -




Table of Summary of Securitization Activities - The Company acts as Original Creditor
as of December 31, 2023 and December 31, 2022                                                                                                                   (in million IDR)


                                                                                                                         December 31, 2023
   No.                                Underlying Asset *)
                                                                                                      Securitized                               Profit (Loss)
                                                                                                      assets value                              from Sales

    1      Receivables from the Government                                                                   -                                        -

    2      Receivables from Public Sector Entities                                                           -                                        -

           Receivables from Multilateral Development Banks and International
    3                                                                                                        -                                        -
           Institutions

    4      Receivables from Banks                                                                            -                                        -

    5      Receivables of a Covered Bond                                                                     -                                        -

           Receivables from Securities Companies and Other Financial
    6                                                                                                        -                                        -
           Services Institutions

           Receivables in the form of Securities/Subordinated Receivables,
    7                                                                                                        -                                        -
           Equity and Other Capital Instruments

    8      House-backed Loan                                                                          13,386,868                                      -

    9      Commercial Property-backed Loan                                                                   -                                        -

   10      Loan for Land Acquisition, Land Management and Construction                                       -                                        -

   11      Employee/Retiree Loan                                                                             -                                        -

   12      Receivables from MSE and Retail Portfolio                                                         -                                        -

   13      Corporate Receivables                                                                             -                                        -

   14      Other Assets                                                                                      -                                        -

           Total                                                                                      13,386,868                                      -
*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.




352            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                      2023 Annual Report




                                                                                                                                                                (in million IDR)


          December 31, 2023                                                                     December 31, 2022

                                                                       Impaired securitized assets           Profit/Loss from
                              Capital           Securitized                                                                                                 Capital
         RWA                                                                                                  securitization            RWA
                             Deduction          assets value                                                                                               Deduction
                                                                         Due              Not yet due            activities

          -                      -                    -                    -                    -                     -                    -                       -

        226,678                  -              12,286,868                 -                    -                     -               211,180                      -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -              12,286,868                 -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -

          -                      -                    -                    -                    -                     -                    -                       -




                                                                                                                                                                (in million IDR)


                                                                                                                          December 31, 2022
   No.                                   Underlying Asset **)
                                                                                                      Securitized                               Profit (Loss)
                                                                                                      assets value                              from Sales

    1         Receivables from the Government                                                                -                                         -

    2         Receivables from Public Sector Entities                                                        -                                         -

              Receivables from Multilateral Development Banks and International
    3                                                                                                        -                                         -
              Institutions

    4         Receivables from Banks                                                                         -                                         -

    5         House-backed Loan                                                                       12,286,868                                       -

    6         Commercial Property-backed Loan                                                                -                                         -

    7         Employee/Retiree Loan                                                                          -                                         -

    8         Receivables from MSE and Retail Portfolio                                                      -                                         -

    9         Corporate Receivables                                                                          -                                         -

   10         Other Assets                                                                                   -                                         -

              Total                                                                                    12,286,868                                     -
**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                                   353
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                                         Information on Capital
                                         and Risk Exposure




Table of Balance Sheet Asset Exposure                                                                                                                        (in million IDR)


                                                                                                                    December 31, 2023
  No.                              Portfolio Category *)
                                                                                           Net Receivables            RWA before CRM               RWA after CRM

    1       Receivables from the Government                                                     84,993,137                             -                           -

    2       Receivables from Public Sector Entities                                             15,695,726                   6,014,430                   5,573,249

            Receivables from Multilateral Development Banks and International
    3                                                                                                      -                           -                           -
            Institutions

    4       Receivables from Banks                                                               3,435,227                     833,519                     833,519

    5       Receivables of a Covered Bond                                                                  -                           -                           -

            Receivables from Securities Companies and Other Financial
    6                                                                                               20,734                        8,294                       8,294
            Services Institutions

            Receivables in the form of Securities/Subordinated Receivables,
    7                                                                                                      -                           -                           -
            Equity and Other Capital Instruments

    8       House-backed Loan                                                                  268,699,489                  94,516,914                  70,123,127

    9       Commercial Property-backed Loan                                                      5,795,141                   4,911,469                   4,853,986

   10       Loan for Land Acquisition, Land Management and Construction                         15,033,448                  15,894,777                  15,879,575

   11       Employee/Retiree Loan                                                                2,273,660                   1,136,830                   1,136,830

   12       Receivables from MSE and Retail Portfolio                                            6,745,842                   4,801,554                   4,567,635

   13       Corporate Receivables                                                               15,822,590                  11,295,896                  10,209,652

   14       Matured Receivables                                                                  6,819,067                   8,325,489                   8,325,489

   15       Other Assets                                                                        13,507,510                  11,418,815                  11,418,815

            Total                                                                              438,841,570                 159,157,985                 132,930,171

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                             (in million IDR)


                                                                                                                    December 31, 2022
  No.                              Portfolio Category **)
                                                                                           Net Receivables            RWA before CRM               RWA after CRM

    1       Receivables from the Government                                                     70,895,488                                 -                           -

    2       Receivables from Public Sector Entities                                             13,690,301                    6,811,451                   6,811,451

            Receivables from Multilateral Development Banks and International
    3                                                                                                          -                           -                           -
            Institutions

    4       Receivables from Banks                                                               1,910,769                      394,208                     394,208

    5       House-backed Loan                                                                  241,719,822                  75,904,002                  58,420,939

    6       Commercial Property-backed Loan                                                     17,850,675                  17,850,675                  17,236,491

    7       Employee/Retiree Loan                                                                1,682,018                      841,009                     841,009

    8       Receivables from MSE and Retail Portfolio                                            7,304,129                    5,478,097                   5,143,757

    9       Corporate Receivables                                                               14,024,660                  14,024,660                  11,239,448

   10       Matured Receivables                                                                  3,664,982                    4,747,246                   3,931,967

   11       Other Assets                                                                        10,408,685                                 -              8,785,946

            Total                                                                               383,151,528                 126,051,347                 112,805,216

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




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                                                                                                                      2023 Annual Report




Table of Exposure of Commitment/Contingency Obligations in Administrative Account Transaction                                                                (in million IDR)



                                                                                                                    December 31, 2023
  No.                              Portfolio Category *)
                                                                                           Net Receivables             RWA before CRM              RWA after CRM

    1       Receivables from the Government                                                       103,743                              -                            -

    2       Receivables from Public Sector Entities                                               562,576                     216,301                     216,301

            Receivables from Multilateral Development Banks and
    3                                                                                                     -                            -                            -
            International Institutions

    4       Receivables from Banks                                                                        -                            -                            -

            Receivables from Securities Companies and Other Financial
    5                                                                                                  450                         180                            180
            Services Institutions

    6       House-backed Loan                                                                        4,776                       1,684                       1,260

    7       Commercial Property-backed Loan                                                       148,313                     125,864                     124,384

    8       Loan for Land Acquisition, Land Management and Construction                           837,422                     886,632                     885,788

    9       Employee/Retiree Loan                                                                         4                           2                            2

   10       Receivables from MSE and Retail Portfolio                                                3,640                       2,571                       2,443

   11       Corporate Receivables                                                              3,225,368                    2,286,629                   2,254,449

   12       Matured Receivables                                                                      4,058                       6,087                       6,087

            Total                                                                              4,890,349                    3,525,951                   3,490,895

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                      (dalam jutaan Rupiah)



                                                                                                                    December 31, 2022
  No.                              Portfolio Category **)
                                                                                           Net Receivables             RWA before CRM              RWA after CRM

    1       Receivables from the Government                                                                -                           -                            -

    2       Receivables from Public Sector Entities                                                        -                           -                            -

            Receivables from Multilateral Development Banks and
    3                                                                                                      -                           -                            -
            International Institutions

    4       Receivables from Banks                                                                         -                           -                            -

    5       House-backed Loan                                                                              -                           -                            -

    6       Commercial Property-backed Loan                                                        17,956                      17,956                      17,956

    7       Employee/Retiree Loan                                                                          -                           -                            -

    8       Receivables from MSE and Retail Portfolio                                               3,615                       2,711                       2,711

    9       Corporate Receivables                                                              1,086,430                   1,086,430                   1,086,430

   10       Matured Receivables                                                                            -                           -                            -

            Total                                                                              1,108,001                    1,107,098                   1,107,098

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




                                                                                               PT Bank Tabungan Negara (Persero) Tbk                                355
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                                         Information on Capital
                                         and Risk Exposure




Table of Exposures that Give rise to Credit Risk due to Failure of Counterparty
(Counterparty Credit Risk)                                                                                                                                   (in million IDR)


                                                                                                                    December 31, 2023
  No.                              Portfolio Category *)
                                                                                           Net Receivables             RWA before CRM              RWA after CRM

    1       Receivables from the Government                                                          0                           -                           -

    2       Receivables from Public Sector Entities                                                  -                           -                           -

            Receivables from Multilateral Development Banks and
    3                                                                                                -                           -                           -
            International Institutions

    4       Receivables from Banks                                                                   -                           -                           -

            Receivables from Securities Companies and Other Financial
    5                                                                                                -                           -                           -
            Services Institutions

    6       Receivables from MSE and Retail Portfolio

    7       Corporate Receivables                                                                    -                           -                           -

            Total                                                                                    0                           -                           -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                             (in million IDR)


                                                                                                                    December 31, 2022
  No.                              Portfolio Category **)
                                                                                           Net Receivables             RWA before CRM              RWA after CRM

    1       Receivables from the Government                                                       1,434,190                      -                           -

    2       Receivables from Public Sector Entities                                                         -                    -                           -

            Receivables from Multilateral Development Banks and
    3                                                                                                       -                    -                           -
            International Institutions

    4       Receivables from Banks                                                                          -                    -                           -

    5       Receivables from MSE and Retail Portfolio                                                       -                    -                           -

    6       Corporate Receivables                                                                           -                    -                           -

            Total                                                                                 1,434,190                      -                           -

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




Table of Exposure that Gives Credit Risk Due to Settlement Failure (Settlement Risk)                                                                         (in million IDR)


                                                                                                                 December 31, 2023
  No.                           Portfolio Category *)
                                                                                                                  Capital Regulatory
                                                                                    Exposure Value                                                 RWA after CRM
                                                                                                                     Adjustment

    1       For transactions classified as Delivery versus payment (DvP)                      -                              -                               -

            a. Capital Expense 8% (5-15 days)                                                 -                              -                               -

            b. Capital Expense 50% (16-30 days)                                               -                              -                               -

            c. Capital Expense 75% (31-45 days)                                               -                              -                               -

            d. Capital Expense 100% (more than 45 days)                                       -                              -                               -

            For transactions classified as Non Delivery versus payment
    2                                                                                         -                              -                               -
            (Non DvP)

            Total                                                                             -                              -                               -

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.




356            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                      2023 Annual Report




                                                                                                                                                             (in million IDR)


                                                                                                                 December 31, 2022
  No.                          Portfolio Category **)
                                                                                                                  Capital Regulatory
                                                                                    Exposure Value                                                 RWA after CRM
                                                                                                                     Adjustment

    1       Delivery versus payment                                                           -                                -                             -

            a. Capital Expense 8% (5-15 days)                                                 -                                -                             -

            b. Capital Expense 50% (16-30 days)                                               -                                -                             -

            c. Capital Expense 75% (31-45 days)                                               -                                -                             -

            d. Capital Expense 100% (more than 45 days)                                       -                                -                             -

    2       Non-Delivery versus payment                                                       -                                -                             -

            Total                                                                             -                               -                              -

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




Table of Securitization Exposure                                                                                                                             (in million IDR)


                                                                                                                             December 31, 2023
  No.                                     Transaction Type *)
                                                                                                     Capital Regulatory Adjustment                        RWA

            RWA for Securitization Exposure calculated using the External Rating Based
    1                                                                                                                   -                                    -
            Approach (ERBA) Method

            RWA for Securitization Exposure calculated by Standardized Approach (SA)
    2                                                                                                                   -                               226,678
            Method

    3       Securitization Exposure which is a Main Core Capital Reduction Factor                                       -                                    -

            Total                                                                                                       -                               226,678

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks.

                                                                                                                                                             (in million IDR)


                                                                                                                             December 31, 2022
  No.                                     Transaction Type **)
                                                                                                      Capital Regulatory Adjustment                        RWA

            RWA for Securitization Exposure calculated using the External Rating Based
    1                                                                                                                    -                                         -
            Approach (ERBA) Method

            RWA for Securitization Exposure calculated by Standardized Approach (SA)
    2                                                                                                                    -                               211,180
            Method

    3       Securitization Exposure which is a Main Core Capital Reduction Factor                                        -                                         -

            Total                                                                                                        -                                211,180

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.




Table of Derivative Credit Risk Measurement                                                                                                                  (in million IDR)


                                                                                                                             December 31, 2023
  No.                                     Transaction Type *)
                                                                                                     Capital Regulatory Adjustment                        RWA

    1       Receivables from the Government                                                                             -                                    -

            a. Receivables from the Indonesian Government                                                               -                                    -

            b. Receivables from the other countries Government                                                          -                                    -




                                                                                                  PT Bank Tabungan Negara (Persero) Tbk                            357
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                                         Information on Capital
                                         and Risk Exposure




                                                                                                                                December 31, 2023
  No.                                     Transaction Type *)
                                                                                                     Capital Regulatory Adjustment                        RWA

    2       Receivables from Public Sector Entities                                                                     -                                    -

            Receivables from Multilatera Development Banks and International
    3                                                                                                                   -                                    -
            Institutions

    4       Receivables from Banks                                                                                  150,239                              44,017

            a. Short Term Receivable                                                                                    -                                    -

            b. Long Term Receivable                                                                                 150,239                              44,017

    5       Receivables from Securities Companies and Other Financial Services Institutions                             -                                    -

            a. Short Term Receivable                                                                                    -                                    -

            b. Long Term Receivable                                                                                     -                                    -

    6       Receivables from MSE and Retail Portfolio                                                                   -                                    -

    7       Corporate Receivables                                                                                       -                                    -

    8      Exposure related to Central Counterparty (CCP)                                                               -                                    -

           Total                                                                                                    150,239                              44,017

*) Referring to OJK Circular Letter No. 24/SEOJK.03/2021 concerning Calculation of Risk-Weighted Assets for Credit Risk Using the Standard Approach for Commercial Banks
which applies as of January 1, 2023.

                                                                                                                                                             (in million IDR)


                                                                                                                                December 31, 2022
  No.                                     Transaction Type **)
                                                                                                      Capital Regulatory Adjustment                        RWA

    1       Receivables from the Government                                                                                 -                                         -

            a. Receivables from the Indonesian Government                                                                   -                                         -

            b. Receivables from the Other Countries Government                                                              -                                         -

    2       Receivables from Public Sector Entities                                                                         -                                         -

            Receivables from Multilatera Development Banks and International
    3                                                                                                                       -                                         -
            Institutions

    4       Receivables from Banks                                                                                          -                                         -

            a. Short Term Receivable                                                                                        -                                         -

            b. Long Term Receivable                                                                                         -                                         -

    5      Receivables from MSE and Retail Portfolio                                                                        -                                         -

    6      Corporate Receivables                                                                                            -                                         -

    7      Credit Valuation Adjustment (CVA) Risk Weighted Asset Exposure                                                   -                            194,864

           Total                                                                                                         -                                194,864

**) Referring to OJK Circular Letter No. 42/SEOJK.03/2016 concerning Guidelines for Calculating Risk-Weighted Assets for Credit Risk Using a Standard Approach.



Table of Credit Risk Measurement as of December 31, 2023 and December 31, 2022                                                                               (in million IDR)


  No.                                     Description                                                   December 31, 2023                    December 31, 2022

    1       RWA CALCULATION ON CREDIT RISK                                                  (A)               136,691,761                         114,318,357

            “CREDIT RISK RWA REDUCTION FACTOR: The excess of PPKA
    2       general reserves over productive assets which must be calculated                (B)                                  -                                -
            with 1.25% RWA for Credit Risk”

    3       TOTAL RWA CREDIT RISK (A) - (B)                                                 (C)               136,691,761                         114,318,357

    4       TOTAL CAPITAL REDUCTION FACTORS                                                 (D)                                  -                                -




358            PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                                 2023 Annual Report




Market
Risk

Market risks are risks in the financial position statement and                      All foreign exchange transactions carried out by the Company
administrative account report due to overall changes to market                      are spot transactions. Currently the Company has not carried out
conditions. In measuring market risk, Bank BTN uses the standard                    derivative foreign exchange transactions. In calculating KPMM,
method commonly used to calculate the Capital Adequacy                              The Company uses the standard method as regulated in OJK
Requirements (Minimum CAR) for Market Risks. Exchange rate                          Circular Letter No.23/SEOJK.03/2022 concerning Calculation
risk arising from fluctuating exchange rate is managed by                           of Risk-Weighted Assets for Market Risk for Commercial Banks
maintaining the Net Open Position (NOP) according to Bank                           Article V. Transition Provisions means the Company continues
Indonesia regulation.                                                               to use the standard method as regulated in OJK Circular Letter
                                                                                    No. 38/SEOJK.03/2016 dated September 8, 2016 concerning
External turmoil is also accommodated by stress testing to see                      Guidelines for Using Standard Methods in Calculating Minimum
how far Bank BTN can survive with several scenarios of the                          Capital Requirements for Commercial Banks Taking Market Risk
changes in external conditions, particularly regarding market                       into Account.
interest rate.


Table of Market Risk Calculation Using Standard Method
as of December 31, 2023 and December 31, 2022                                                                                                        (in million IDR)


                                                                         December 31, 2023                                    December 31, 2022
  No.                          Risk Type
                                                                  Capital Expense                 RWA                 Capital Expense               RWA

   1      Interest Rate Risk                                           32,088                     401,103                  76,147               951,841

          a. Specific Risk                                                                              -                     754                   9,419

          b. General Risk                                                                         401,103                  75,394               942,422

   2      Exchange Rate Risk                                           43,298                     541,223                  33,717               421,458

   3      Equity Risk                                                          -                        -                         -                        -

   4      Commodity Risk                                                       -                        -                         -                        -

   5      Risk Options                                                         -                        -                         -                        -

          Total                                                        75,386                     942,326                 109,864              1,373,299




Eksposure Interest Rate in the Banking Book (IRRBB)

The Interest Rate in the Banking Book (IRRBB) is a part of the interest             Steepener, Flattener, Short Rates Up and Short Rates Down.
rate risk, which focuses on the impact of the economic value                        Meanwhile, ΔNII calculation uses 2 shock scenarios, i.e. Parallel
changes from the position of the banking book that is potentially                   Up and Parallel Down. Bank BTN measures the change in NII
affecting Bank BTN’s capital and rentability. In measuring and                      (ΔNII) as maximum decline of NII during the increase or decline
calculating IRRBB, Bank BTN applies 6 (six) interest rate shock                     of interest rate. The following is the result of company interest risk
scenarios for ΔEVE calculation, i.e. Parallel Up, Parallel Down,                    management monitoring.

Table of Disclosure of Exposure Interest Rate Risk in Banking Book (IRRBB)
as of December 31, 2023 and December 31, 2022                                                                                                        (in million IDR)


                                                          December 31, 2023                                              December 31, 2022
           Type of Interest Rate
  No.                                              ΔEVE                            ΔNII                           ΔEVE                         ΔNII
             Shock Scenario
                                              T             T-1            T                T-1              T             T-1             T             T-1

   1      Parallel up                      (287,473)      (334,889)   (1,815,275)     (2,278,750)       (172,121)           50,400    (2,405,885)    (2,429,886)

   2      Parallel down                    1,042,596       873,611     1,490,950          1,936,701         949,773       660,477       1,974,177     1,959,842

   3      Steepener                        (913,832)      (478,467)                                    (1,017,121)      (1,102,635)




                                                                                          PT Bank Tabungan Negara (Persero) Tbk                            359
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                                             Information on Capital
                                             and Risk Exposure




                                                                December 31, 2023                                                   December 31, 2022
                   Type of Interest Rate
  No.                                                    ΔEVE                            ΔNII                                ΔEVE                            ΔNII
                     Shock Scenario
                                                    T             T-1               T                T-1               T              T-1            T                T-1

      4       Flattener                         1,033,934        567,552                                          1,184,300         1,310,859

      5       Short rate up                       338,291        (10,872)                                            444,729         639,907

      6       Short rate down                    (836,789)      (494,399)                                       (1,110,090)       (1,362,249)

              Negative Maximum Value
      7                                           913,832        494,399         1,815,275         2,278,750      1,110,090         1,362,249     2,405,885         2,429,886
              (absolute)

              Tier 1 Capital (for ΔEVE)
      8       or Projected Income (for         27,115,896    26,246,324         16,319,417      16,319,417      22,563,440        19,346,098    13,701,657      13,701,657
              ΔNII)

              Maximum Value divided by
              Tier 1 Capital (for ∆EVE) or          3.37%          1.88%           11.12%            13.96%            4.92%           7.04%        17.56%            17.73%
              Projected Income (for ∆NII)




Based on the Company’s current portfolio, if there is a change                               increasing in accordance with the steepener scenario, then the
in interest rates according to the parallel shock up scenario of ±                           maximum potential loss of Core Capital Equity (Tier 1) that will
400 bps, it will have an impact on changes in the Company’s                                  be experienced by the Company is IDR 913 billion and when
interest income and interest expense of 11.12% of the Company’s                              compared to the total Core Capital (Tier 1) of 3.37%, it is still
NII target. The maximum potential loss of economic value of                                  below the OJK limit of 15% of core capital (Tier 1).
equity experienced by the Company if there is a change in
short-term interest rates decreasing and long-term interest rates




Table of Rupiah Maturity Profile

                                                                                                                                    December 31, 2023

                                                                                                                                                Maturity Date
 No                    Pos-pos
                                              Balance
                                                                                 >1 week to 2        >2 weeks to 1         >1 month to 3    >3 months to 6      >6 months to
                                                             to 1 week
                                                                                    weeks               month                 months           months            12 months

 I. Neraca

 A.       Assets

  1       Cash                                  2,095,378        2,095,378                     -                   -                    -                -                      -

          Placement with Bank
  2                                            29,950,536       29,756,476                     -                   -                    -          194,060                      -
          Indonesia

          a. Demand deposits                   17,607,788       17,607,788                     -                   -                    -                -                      -

          b. SBI                                 194,060                    -                  -                   -                    -          194,060                      -

          c. Others                            12,148,688       12,148,688                     -                  0                     -                -                      -

  3       Placement from other bank              234,107           234,107                     -                   -                    -                -                      -

  4       Securities                           35,902,399          576,504                   270           7,483,702           2,955,254           882,854            1,260,459

          a. SUN                               31,398,530          573,350                     -           7,477,808           2,954,236           562,846            1,210,716

            1) traded                           3,769,410          573,350                     -                   -           2,168,375                 -               15,618

            2) available for sale               8,531,019                   -                  -                   -              30,000           111,036              521,271

            3) held to maturity                19,098,101                   -                  -           7,477,808             755,861           451,810              673,827

            4) loans and receivables                     -                  -                  -                   -                    -                -                      -




360                 PT Bank Tabungan Negara (Persero) Tbk
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                                                                                                         2023 Annual Report




Operational
Risk

Operational Risk occurs due to inadequate/non-functioning                     environment safety, customers, business products and practices,
internal process, human error, system failure, and/or external                physical asset damage, disruptions of business activities and system
events that affect company operation.                                         failures and process and execution errors, including fraud arising
                                                                              from money laundering and terrorist financing activities.
Operational risk may be sourced from human errors, internal
processes, system and infrastructure, as well as external                     In accordance with OJK Circular Letter No. 06/SEOJK.03/2020
events. These risk sources may create adverse impacts on                      concerning Calculation of Risk-Weighted Assets for Operational
Bank BTN’s operations. Therefore, any emergence of such                       Risk Using a Standard Approach for Commercial Banks, Bank
operational risk events become an indicator for the success                   BTN has carried out operational RWA calculations using a
or the failure of the operational risk management.                            standard approach starting in 2023.


Operational risk can be classified into several types of events, among        The description related to operational risks is explained as
others internal fraud, external fraud, labor practices and work               follows:

Table of Operational Risk as of December 31, 2023 and December 31, 2022                                                                     (in million IDR)


                                             December 31, 2023                                               December 31, 2022

     Approach                                                                                Gross Income
                                                                                                                        Capital
                                   KIB                  MMRO               RWA           (Average of the last 3                             RWA
                                                                                                                       Expense
                                                                                                years)

 Basic Indicator
                                 1,431,154             1,431,154         17,889,426            12,767,391              1,915,109          23,938,858
 Approach




                                                                                                                                            (in million IDR)


                                                                         December 31, 2022

                                                                                      Maturity Date
                   Balance
                                                    >1 week to 2   >2 weeks to 1   >1 month to 3      >3 months to 6   >6 months to
> 12 months                         to 1 week                                                                                             > 12 months
                                                       weeks          month           months             months         12 months




              -     1,645,839         1,645,839                -               -                  -                -                  -                 -


              -    37,769,892        37,769,892                -               -                  -                -                  -                 -


              -    25,193,997        25,193,997                -               -                  -                -                  -                 -

              -              -                  -              -               -                  -                -                  -                 -

              -    12,575,895        12,575,895                -              0                   -                -                  -                 -

              -       940,113            940,113               -               -                  -                -                  -                 -

   22,743,357      48,846,898         2,076,651          649,576      5,199,834         10,707,951        5,820,621       3,053,337         21,338,928

   18,619,574      47,420,225         2,061,104          649,576      4,893,523         10,705,307        5,818,547       2,869,890         20,422,278

    1,012,066      19,591,199         2,061,104          649,576               -         9,230,307        4,938,578       2,077,981            633,654

    7,868,712      10,501,391                   -              -               -                  -         479,969           387,909        9,633,512

    9,738,795      17,327,635                   -              -      4,893,523          1,475,000          400,000           404,000       10,155,112

              -              -                  -              -               -                  -                -                  -                 -




                                                                                   PT Bank Tabungan Negara (Persero) Tbk                           361
Page 364
                                      Information on Capital
                                      and Risk Exposure




                                                                                                                December 31, 2023

                                                                                                                           Maturity Date
No                Pos-pos
                                       Balance
                                                                       >1 week to 2    >2 weeks to 1   >1 month to 3   >3 months to 6      >6 months to
                                                      to 1 week
                                                                          weeks           month           months          months            12 months

      b. Corporate Securities            4,503,869             3,153            270            5,894           1,018          320,009             49,742

        1) traded                         540,443                  -               -               -               -                -                     -

        2) available for sale            1,627,903                 -               -               -               -           30,000                     -

        3) held to maturity              2,335,524             3,153            270            5,894           1,018          290,009             49,742

        4) loans and receivables                 -                 -               -               -               -                -                     -

      c. Others                                  -                 -               -               -               -                -                     -

 5    Loans                            331,237,860       2,096,216           34,163          862,025       1,851,281        2,099,232          6,446,104

      a. Not yet due                   328,453,825       1,225,977           34,163          862,025       1,746,409        2,002,306          6,177,307

      b. Due                             2,784,034        870,239                  -               -         104,872           96,926            268,797

 6    Other Receivables                  1,195,547                 -               -               -               -        1,195,547                     -

      "a. Receivables from
      Securities Purchased under
                                                 -                 -               -               -               -                -                     -
      Agreement to Resell (Reverse
      Repo)"

      b.Others                           1,195,547                 -               -               -               -        1,195,547                     -

 7    Investment in Shares                       -                 -               -               -               -                -                     -

 8    Others                            17,884,999                 -               -      17,884,999               -                -                     -

      Total Assets                     418,500,826     34,758,681            34,432       26,230,726       4,806,535        4,371,694          7,706,562

B.    Liabilities

 1    Third Party Funds                324,517,875    110,904,849         15,416,183      56,972,191      38,901,144       15,594,567         22,279,017

      a. Demand deposits               124,350,812     60,031,106                  -               -               -                -                     -

      b. Saving Deposits                38,804,771     38,804,771                  -               -               -                -                     -

      c. Time Deposits                 161,362,291     12,068,971         15,416,183      56,972,191      38,901,144       15,594,567         22,279,017

        1) Deposit on call               5,377,306       2,699,341         1,753,015         924,950               -                -                     -

        2) Time Deposits               155,714,985       9,369,631        13,663,168      56,047,241      38,901,144       15,484,567         22,119,017

        3) Others                         270,000                  -               -               -               -          110,000            160,000

 2    Liabilities to Bank Indonesia              -                 -               -               -               -                -                     -

 3    Liabilities to other banks         1,300,316                 -               -          20,936           2,300          500,000            777,080

 4    Securities Issued                  6,834,647        265,846                  -               -               -        1,219,500            853,000

      a. Bonds                           6,834,647        265,846                  -               -               -        1,219,500            853,000

      b. Subordination                           -                 -               -               -               -                -                     -

      c. Others                                  -                 -               -               -               -                -                     -

 5    Fund Borrowings                   37,523,489                 -               -       3,242,020               -        5,140,000          7,455,000

      a. Subordinated Loan               4,499,997                 -               -               -               -                -                     -

      b. Others                         33,023,492                 -               -       3,242,020               -        5,140,000          7,455,000

 6    Other Receivables                  1,195,547       1,195,547                 -               -               -                -                     -

      a. Liabilities for Securities
      Sold under Repurchase                      -                 -               -               -               -                -                     -
      Agreement (Repo)

      b. Others                          1,195,547       1,195,547                 -               -               -                -                     -

 7    Others                             7,882,807                 -               -       7,882,807               -                -                     -




362            PT Bank Tabungan Negara (Persero) Tbk
Page 365
                                                                                                   2023 Annual Report




                                                                    December 31, 2022

                                                                                Maturity Date
                  Balance
                                                >1 week to 2   >2 weeks to 1   >1 month to 3    >3 months to 6   >6 months to
> 12 months                     to 1 week                                                                                           > 12 months
                                                   weeks          month           months           months         12 months

   4,123,783        1,426,673       15,547                 -        306,311            2,645            2,074           183,447         916,650

     540,443         793,831        15,547                 -        300,000                 -                -                  -       478,284

   1,597,903         358,798                -              -               -                -                -          103,447         255,351

   1,985,438         274,044                -              -          6,311            2,645            2,074            80,000         183,014

              -             -               -              -               -                -                -                  -                 -

              -             -               -              -               -                -                -                  -                 -

 317,848,839      297,112,950      518,823           220,263      1,851,732        1,964,883        3,176,293       6,913,958       282,466,998

 316,405,639      294,073,082      199,615           220,263      1,851,732        1,779,526        3,011,912       5,865,243       281,144,791

   1,443,200        3,039,868      319,208                 -               -         185,357          164,381       1,048,715          1,322,207

              -     1,864,846     1,434,190                -               -                -         430,656                   -                 -



              -     1,434,190     1,434,190                -               -                -                -                  -                 -



              -      430,656                -              -               -                -         430,656                   -                 -

              -             -               -              -               -                -                -                  -                 -

              -    15,615,495               -              -     15,615,495                 -                -                  -                 -

 340,592,196      403,796,033    44,385,508          869,838     22,667,061       12,672,834        9,427,570       9,967,295       303,805,926




  64,449,924      318,997,390   117,850,608       21,122,406     50,806,883       40,988,821       24,461,778       9,268,938         54,497,958

  64,319,706      111,715,040    68,853,890                -               -                -                -                  -     42,861,151

              -    37,273,401    37,273,401                -               -                -                -                  -                 -

     130,218      170,008,949    11,723,317       21,122,406     50,806,883       40,988,821       24,461,778       9,268,938         11,636,807

              -     1,085,246      543,905           157,000        384,341                 -                -                  -                 -

     130,218      168,923,703    11,179,412       20,965,406     50,422,542       40,988,821       24,461,778       9,268,938         11,636,807

              -             -               -              -               -                -                -                  -                 -

              -             -               -              -               -                -                -                  -                 -

              -      180,166       140,138                 -         37,728            2,300                 -                  -                 -

   4,496,302        8,652,260               -              -               -       2,000,000                 -          727,000        5,925,260

   4,496,302        8,652,260               -              -               -       2,000,000                 -          727,000        5,925,260

              -             -               -              -               -                -                -                  -                 -

              -             -               -              -               -                -                -                  -                 -

  21,686,469       28,513,220               -              -      2,017,953                 -                -      2,500,000         23,995,267

   4,499,997        4,499,977               -              -               -                -                -                  -      4,499,977

  17,186,472       24,013,242               -              -      2,017,953                 -                -      2,500,000         19,495,289

              -      430,656       430,656                 -               -                -                -                  -                 -


              -             -               -              -               -                -                -                  -                 -


              -      430,656       430,656                 -               -                -                -                  -                 -

              -    11,726,704               -              -     11,726,704                 -                -                  -                 -




                                                                               PT Bank Tabungan Negara (Persero) Tbk                       363
Page 366
                                      Information on Capital
                                      and Risk Exposure




                                                                                                                 December 31, 2023

                                                                                                                             Maturity Date
No               Pos-pos
                                       Balance
                                                                      >1 week to 2     >2 weeks to 1    >1 month to 3    >3 months to 6      >6 months to
                                                      to 1 week
                                                                         weeks            month            months           months            12 months

     Total Liabilities                 379,254,681    112,366,242        15,416,183       68,117,954       38,903,444        22,454,067         31,364,097

     Difference of Assets and
                                        39,246,145    (77,607,561)      (15,381,751)     (41,887,228)     (34,096,909)      (18,082,373)       (23,657,534)
     Liabilities in the Balance

II. Administrative Account

     Administrative Account
A.
     Receivables

 1   Commitments                                 -                -                -                -                -                 -                    -

     a. Outstanding loan facility                -                -                -                -                -                 -                    -

     b. Outstanding spot and
     derivative purchasing                       -                -                -                -                -                 -                    -
     position

       1) Spot                                   -                -                -                -                -                 -                    -

       2) Derivative                             -                -                -                -                -                 -                    -

     c. Others                                   -                -                -                -                -                 -                    -

 2   Contingencies                      24,998,985                -                -      24,998,985                 -                 -                    -

     Total Administrative Account
                                        24,998,985                -                -      24,998,985                 -                 -                    -
     Receivables

     Administrative Account
B.
     Liabilities

 1   Commitments                        20,977,203                -                -      19,170,698                 -                 -                    -

     a. Outstanding loan facility       19,138,038                -                -      19,138,038                 -                 -                    -

     b. . Outstanding irrevocable
                                            18,496                -                -          18,496                 -                 -                    -
     L/C

     c. Outstanding spot and
                                         1,806,505                -                -                -                -                 -                    -
     derivative sale position

       1) Spot                                   -                -                -                -                -                 -                    -

       2) Derivative                     1,806,505                -                -                -                -                 -                    -

     d. Others                              14,164                -                -          14,164                 -                 -                    -

 2   Contingencies                       2,502,757                -                -       2,502,757                 -                 -                    -

     Total Administrative Account
                                        21,640,795                -                -      21,673,455                 -                 -                    -
     Liabilities

     Difference of Receivables and
     Liabilities in Administrative       3,358,190                -                -       3,325,530                 -                 -                    -
     Accounts

     Difference [(IA-IB)+(IIA-IIB)]     42,604,335    (77,607,561)      (15,381,751)     (38,561,698)     (34,096,909)      (18,082,373)       (23,657,534)

     Cumulative Difference              40,765,170    (77,607,561)      (92,989,312)    (131,551,010)    (165,647,919)     (183,730,292)      (207,387,826)




364           PT Bank Tabungan Negara (Persero) Tbk
Page 367
                                                                                                    2023 Annual Report




                                                                     December 31, 2022

                                                                                 Maturity Date
                  Balance
                                                >1 week to 2    >2 weeks to 1   >1 month to 3    >3 months to 6   >6 months to
> 12 months                     to 1 week                                                                                            > 12 months
                                                   weeks           month           months           months         12 months

  90,632,695      368,500,395   118,421,401       21,122,406      64,589,267       42,991,121       24,461,778      12,495,938         84,418,485


 249,959,501       35,295,638   (74,035,893)     (20,252,567)    (41,922,206)     (30,318,287)     (15,034,209)     (2,528,643)      219,387,442




              -             -               -               -               -                -                -                  -                 -

              -             -               -               -               -                -                -                  -                 -


              -             -               -               -               -                -                -                  -                 -


              -             -               -               -               -                -                -                  -                 -

              -             -               -               -               -                -                -                  -                 -

              -             -               -               -               -                -                -                  -                 -

              -    19,459,686               -               -     19,459,686                 -                -                  -                 -


              -    19,459,686               -               -     19,459,686                 -                -                  -                 -




   1,806,505       19,058,474               -        339,313      16,581,426                 -         331,410                   -      1,806,325

              -    16,363,226               -               -     16,363,226                 -                -                  -                 -


              -      204,672                -               -        204,672                 -                -                  -                 -


   1,806,505        2,477,048               -        339,313                -                -         331,410                   -      1,806,325


              -             -               -               -               -                -                -                  -                 -

   1,806,505        2,477,048               -        339,313                -                -         331,410                   -      1,806,325

              -       13,529                -               -         13,529                 -                -                  -                 -

              -      964,107                -               -        964,107                 -                -                  -                 -


   1,806,505       20,022,580               -        339,313      17,545,533                 -         331,410                   -      1,806,325



  (1,806,505)       (562,894)               -       (339,313)      1,914,154                 -        (331,410)                  -     (1,806,325)


 248,152,996       34,732,744   (74,035,893)     (20,591,880)    (40,008,052)     (30,318,287)     (15,365,619)     (2,528,643)      217,581,117

  40,765,170       34,732,744   (74,035,893)     (94,627,773)   (134,635,825)    (164,954,112)    (180,319,730)   (182,848,373)        34,732,744




                                                                                PT Bank Tabungan Negara (Persero) Tbk                       365
Page 368
                                          Information on Capital
                                          and Risk Exposure




Table of Forex Maturity Profile

                                                                                                                    December 31, 2023

                                                                                                                               Maturity Date
 No                    Pos-pos
                                            Balance
                                                                            >1 week to 2   >2 weeks to 1   >1 month to 3   >3 months to 6      >6 months to
                                                           to 1 week
                                                                               weeks          month           months          months            12 months

 I. Neraca
 A.       Asset
      1   Cash                                  32,111             32,111              -               -               -                -                     -

          Placement with Bank
      2                                      19,257,856     19,104,196           153,661               -               -                -                     -
          Indonesia

      3   Placement from other bank           1,969,352      1,969,352                 -               -               -                -                     -

      4   Securities                          4,756,845                 -              -               -               -          188,407            138,629

          a. SUN                              4,456,411                 -              -               -               -                -            138,629

            1) traded                             2,379                 -              -               -               -                -              2,379

            2) available for sale             3,980,972                 -              -               -               -                -                     -

            3) held to maturity                473,061                  -              -               -               -                -            136,250

            4) loans and receivables                  -                 -              -               -               -                -                     -

          b. Corporate Securities              300,434                  -              -               -               -          188,407                     -

            1) traded                                 -                 -              -               -               -                -                     -

            2) available for sale              300,434                  -              -               -               -          188,407                     -

            3) held to maturity                       -                 -              -               -               -                -                     -

            4) loans and receivables                  -                 -              -               -               -                -                     -

          c. Others                                   -                 -              -               -               -                -                     -

      5   Loans                               2,460,281                 -              -               -               -                -            230,955

          a. Not yet due                      2,460,281                 -              -               -               -                -            230,955

          b. Due                                      -                 -              -               -               -                -                     -

      6   Other Receivables                     64,516             64,516              -               -               -                -                     -

          "a. Receivables from
          Securities Purchased under
                                                      -                 -              -               -               -                -                     -
          Agreement to Resell (Reverse
          Repo)"

          b.Others                              64,516             64,516              -               -               -                -                     -

      7   Others                              1,092,189                 -              -       1,092,189               -                -                     -

          Jumlah Asset                       29,633,150     21,170,174           153,661       1,092,189               -          188,407            369,584

 B.       Liabilities
      1   Third Party Funds                  25,415,442     18,662,384           824,462       2,090,700       1,732,429        1,371,955            733,513

          a. Demand deposits                 18,457,944     18,457,944                 -               -               -                -                     -

          b. Saving Deposits                   193,982         193,982                 -               -               -                -                     -

          c. Time Deposits                    6,763,517            10,458        824,462       2,090,700       1,732,429        1,371,955            733,513

            1) Deposit on call                        -                 -              -               -               -                -                     -

            2) Time Deposits                  6,763,517            10,458        824,462       2,090,700       1,732,429        1,371,955            733,513

            3) Others                                 -                 -              -               -               -                -                     -

      2   Liabilities to Bank Indonesia               -                 -              -               -               -                -                     -

      3   Liabilities to other banks                  -                 -              -               -               -                -                     -

      4   Securities Issued                   4,612,840                 -              -               -               -                -                     -

          a. Bonds                                    -                 -              -               -               -                -                     -

          b. Subordination                    4,612,840                 -              -               -               -                -                     -

          c. Others                                   -                 -              -               -               -                -                     -

      5   Fund Borrowings                      750,059                  -              -               -               -                -                     -

          a. Subordinated Loan                        -                 -              -               -               -                -                     -

          b. Others                            750,059                  -              -               -               -                -                     -

      6   Other Receivables                           -                 -              -               -               -                -                     -

          a. Liabilities for Securities
          Sold under Repurchase                       -                 -              -               -               -                -                     -
          Agreement (Repo)

          b. Others                                   -                 -              -               -               -                -                     -




366                PT Bank Tabungan Negara (Persero) Tbk
Page 369
                                                                                               2023 Annual Report




                                                                                                                              (in million IDR)


                                                                December 31, 2022

                                                                            Maturity Date
                  Balance
                                            >1 week to 2   >2 weeks to 1   >1 month to 3    >3 months to 6   >6 months to
> 12 months                     to 1 week                                                                                    > 12 months
                                               weeks          month           months           months         12 months




              -     15,694         15,694             -              -                -                -                 -               -

              -    222,943       222,943              -              -                -                -                 -               -

              -    932,205       932,205              -              -                -                -                 -               -

   4,429,809      4,841,243             -             -              -         128,588           62,270             31,135    4,619,250

   4,317,783      4,544,748             -             -              -         128,588           62,270             31,135    4,322,756

              -             -           -             -              -                -                -                 -               -

   3,980,972      3,831,559             -             -              -                -                -                 -    3,831,559

     336,811       713,190              -             -              -         128,588           62,270             31,135      491,197

              -             -           -             -              -                -                -                 -               -

     112,027       296,495              -             -              -                -                -                 -      296,495

              -             -           -             -              -                -                -                 -               -

     112,027       296,495              -             -              -                -                -                 -      296,495

              -             -           -             -              -                -                -                 -               -

              -             -           -             -              -                -                -                 -               -

              -             -           -             -              -                -                -                 -               -

   2,229,326      1,168,755             -             -              -                -                -                 -    1,168,755

   2,229,326      1,168,755             -             -              -                -                -                 -    1,168,755

              -             -           -             -              -                -                -                 -               -

              -             -           -             -              -                -                -                 -               -


              -             -           -             -              -                -                -                 -               -


              -             -           -             -              -                -                -                 -               -

              -    971,042              -             -       971,042                 -                -                 -               -

   6,659,136      8,151,883     1,170,842             -        971,042         128,588            62,270            31,135    5,788,005



              -   2,938,717     1,917,754       50,021        130,345          811,652           26,105              2,840               -

              -   1,809,479     1,809,479             -              -                -                -                 -               -

              -    102,646       102,646              -              -                -                -                 -               -

              -   1,026,593         5,629       50,021        130,345          811,652           26,105              2,840               -

              -             -           -             -              -                -                -                 -               -

              -   1,026,593         5,629       50,021        130,345          811,652           26,105              2,840               -

              -             -           -             -              -                -                -                 -               -

              -             -           -             -              -                -                -                 -               -

              -             -           -             -              -                -                -                 -               -

   4,612,840      4,658,242             -             -              -                -                -                 -    4,658,242

              -             -           -             -              -                -                -                 -               -

   4,612,840      4,658,242             -             -              -                -                -                 -    4,658,242

              -             -           -             -              -                -                -                 -               -

     750,059       807,763              -             -              -                -                -                 -      807,763

              -             -           -             -              -                -                -                 -               -

     750,059       807,763              -             -              -                -                -                 -      807,763

              -             -           -             -              -                -                -                 -               -


              -             -           -             -              -                -                -                 -               -


              -             -           -             -              -                -                -                 -               -




                                                                           PT Bank Tabungan Negara (Persero) Tbk                    367
Page 370
                                             Information on Capital
                                             and Risk Exposure




                                                                                                                           December 31, 2023

                                                                                                                                       Maturity Date
 No                    Pos-pos
                                               Balance
                                                                                 >1 week to 2    >2 weeks to 1    >1 month to 3    >3 months to 6      >6 months to
                                                                 to 1 week
                                                                                    weeks           month            months           months            12 months

      7   Others                                     145,511                 -               -         145,511                 -                  -                    -

          Total Liabilities                        30,923,852       18,662,384        824,462        2,236,211        1,732,429         1,371,955            733,513

          Difference of Assets and
                                                   (1,290,702)       2,507,791       (670,802)      (1,144,022)      (1,732,429)       (1,183,548)          (363,929)
          Liabilities in the Balance

 II. Administrative Account
          Administrative Account
 A.
          Receivables

      1   Komitmen                                  1,878,434                -               -                -                -                  -                    -

          a. Fasilitas pinjaman yang
                                                             -               -               -                -                -                  -                    -
          belum ditarik

          b. Posisi pembelian spot dan
                                                    1,878,434                -               -                -                -                  -                    -
          derivatif yang masih berjalan

            1) Spot                                          -               -               -                -                -                  -                    -

            2) Derivatif                            1,878,434                -               -                -                -                  -                    -

          c. Lainnya                                         -               -               -                -                -                  -                    -

      2   Kontijensi                                 488,686                 -               -         488,686                 -                  -                    -

          Total Administrative Account
                                                    2,367,120                -               -         488,686                 -                  -                    -
          Receivables

          Administrative Account
 B.
          Liabilities
      1   Commitments                                                        -               -         653,587                 -                  -                    -

          a. Fasilitas kredit yang belum
                                                                             -               -         653,587                 -                  -                    -
          ditarik

          b. Outstanding irrevocable
                                                                             -               -                -                -                  -                    -
          L/C

          c. Outstanding spot and
                                                                             -               -                -                -                  -                    -
          derivative sale position

            1) Spot                                                          -               -                -                -                  -                    -

            2) Derivat                                                       -               -                -                -                  -                    -

          d. Others                                                          -               -                -                -                  -                    -

      2   Contingencies                                                      -               -         476,264                 -                  -                    -

          Total Administrative Account
                                                             -               -               -       1,129,851                 -                  -                    -
          Liabilities

          Difference of Receivables and
          Liabilities in Administrative             2,367,120                -               -        (641,165)                -                  -                    -
          Accounts

          Difference [(IA-IB)+(IIA-IIB)]            1,076,419        2,507,791       (670,802)      (1,785,187)      (1,732,429)       (1,183,548)          (363,929)

          Cumulative Difference                       (53,433)       2,507,791       1,836,989          51,802       (1,680,627)       (2,864,174)        (3,228,103)




Table of Liquidity Coverage Ratio (LCR)                                                                                                                       (in %)


                                                                 2023                                                          2022

                                       Quarter I       Quarter II      Quarter III    Quarter IV      Quarter I      Quarter II     Quarter III       Quarter IV

 Bank - Individual                     1,436,485        1,436,485      17,956,060     12,767,391      1,915,109     23,938,858        238.80%          238.50%




368                PT Bank Tabungan Negara (Persero) Tbk
Page 371
                                                                                                2023 Annual Report




                                                                 December 31, 2022

                                                                             Maturity Date
                  Balance
                                             >1 week to 2   >2 weeks to 1   >1 month to 3    >3 months to 6   >6 months to
> 12 months                     to 1 week                                                                                     > 12 months
                                                weeks          month           months           months         12 months

              -    113,736               -             -       113,736                 -                 -                -            -

   5,362,899      8,518,458     1,917,754        50,021         244,081         811,652            26,105             2,840    5,466,004

   1,296,237       (366,575)     (746,911)      (50,021)        726,961        (683,065)           36,165            28,295      322,001




   1,878,434      2,625,536              -      389,188                -               -         351,737                  -    1,884,612

              -             -            -             -               -               -                 -                -            -


   1,878,434      2,625,536              -      389,188                -               -         351,737                  -    1,884,612

              -             -            -             -               -               -                 -                -            -

   1,878,434      2,625,536              -      389,188                -               -         351,737                  -    1,884,612

              -             -            -             -               -               -                 -                -            -

              -     76,436               -             -         76,436                -                 -                -            -

   1,878,434      2,701,972              -      389,188          76,436                -          351,737                 -    1,884,612




              -    279,023               -             -       279,023                 -                 -                -            -

              -    279,023               -             -       279,023                 -                 -                -            -


              -             -            -             -               -               -                 -                -            -


              -             -            -             -               -               -                 -                -            -

              -             -            -             -               -               -                 -                -            -

              -             -            -             -               -               -                 -                -            -

              -             -            -             -               -               -                 -                -            -

              -     61,173               -             -         61,173                -                 -                -            -

              -     340,196              -             -        340,196                -                 -                -            -


   1,878,434      2,361,776              -      389,188        (263,760)               -          351,737                 -    1,884,612


   3,174,671      1,995,201      (746,911)      339,166         463,202        (683,065)          387,902            28,295    2,206,613

     (53,433)     1,995,201      (746,911)     (407,745)         55,456        (627,608)         (239,707)       (211,412)     1,995,201




                                                                            PT Bank Tabungan Negara (Persero) Tbk                   369

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Names mentioned 175 people and organisations named in the text · linked when the evidence is strong

linked org Bank Tabungan Negara (Persero) Tbk p.3 ×373
linked org Bank Mega p.31 ×7
linked org Mandiri Sekuritas p.36
linked org Valbury Sekuritas p.36
linked org BNI Sekuritas p.36
linked org Trimegah Sekuritas p.36
linked org BCA Sekuritas p.36
linked org Samuel Sekuritas p.36
linked org Angkasa Pura p.38
linked org Mandiri Capital p.43
linked person Oni Febriarto Rahardjo p.60 ×4
linked person Hakim Putratama p.60 ×4
linked person Hirwandi Gafar p.60 ×5
linked person Nofry Rony Poetra p.60 ×5
linked person Eko Waluyo p.60 ×5
linked person Elisabeth Novie Riswanti p.60 ×5
linked person Setiyo Wibowo p.60 ×5
linked person Andi Nirwoto · Director p.60 ×6
linked person Chandra M. Hamzah p.64 ×7
linked person Iqbal Latanro · Commissioner p.70 ×5
linked person Armand B. Arief · Commissioner p.70 ×5
linked person Ahdi Jumhari Luddin p.70 ×3
linked person Sentot A. Sentausa · Commissioner p.70 ×5
linked person Andin Hadiyanto · Commissioner p.70 ×5
linked person Herry Trisaputra Zuna · Commissioner p.70 ×5
linked person Himawan Arief Sugoto · Commissioner p.70 ×5
linked person Mohamad Yusuf Permana · Commissioner p.71 ×5
linked org Bumi Serpong Damai p.85 ×3
linked org Multi Sarana p.86
linked person Padang, Sumatera Barat p.89
linked org PT Angkasa Pura I p.90
linked org PT Angkasa Pura II p.90
linked org PP Properti p.90
linked org Adhi Commuter Properti p.90
linked org PT Waskita Karya Realty p.90 ×3
linked org Sinar Mas p.90
linked org Pindo Deli p.90
linked org PT Alam Sutera Realty p.90
linked org PT Lippo Cikarang p.90
linked org Medco Power Indonesia p.90 ×2
linked org Blue Bird p.90
linked org PT Hutama Karya (Persero) p.91
linked org PT Ciputra Nusantara p.91
linked org Indonesia Kendaraan Terminal Tbk p.91 ×2
linked org BFI Finance Indonesia Tbk p.91 ×2
linked org Yayasan Kesejahteraan p.91
possible person Agus Pramono p.36
possible org Panin Sekuritas p.36
possible org DBS Bank p.36
possible — Morgan Stanley p.36
possible person Erwin Wijaya p.36
possible org Semen Indonesia (Persero) Tbk. p.38 ×3
possible person Dr. H. Mohamad p.76
possible person Dr. H. Mohamad Hidayat p.76 ×2
possible person Dr. Sutomo p.86
possible person Ahmad Yani p.88 ×3
possible person Slamet Riyadi p.89
possible org PP (Persero) Tbk p.90 ×2
possible org PT Pertamina (Persero) p.90
possible org Wijaya Karya (Persero) Tbk p.90 ×2
possible org Adhi Karya (Persero) Tbk p.90 ×2
possible org PT Jasamarga Bali Toll p.90
possible org Perusahan Gas Negara Tbk p.91 ×2
possible org Bank Rakyat Indonesia p.91
possible org Otoritas Jasa Keuangan p.91
unresolved org Bank BTN’s p.3 ×20
unresolved org PT Bank Tabungan p.5 ×4
unresolved org Negara (Persero) Tbk. p.5
unresolved org Bank BTN In p.5
unresolved org Bank Performance Economic Overview p.7
unresolved org Bank Soundness Level p.7
unresolved — Diversity Policy for p.8
unresolved org Compensation to Management p.8
unresolved — Ownership by p.8
unresolved — Organs and Committees under p.8
unresolved org Bank NUMBER OF OFFICES p.9
unresolved org PT Persero p.10
unresolved org Bank Koperasi Tani p.11
unresolved org Bank Affairs. p.11
unresolved org Government of the Republic of Indonesia p.11 ×3
unresolved org Bank BTN’s Vision p.12 ×2
unresolved org Financial Services Authority p.15 ×2
unresolved org BANK INDONESIA p.20 ×17
unresolved org Bank Indonesia Certificates p.25
unresolved org Bank BTN Outstanding Bonds Electronic Issue p.30
unresolved org Bank BTN’s Junior Global Bond p.30
unresolved org Bank Sukuk Table Electronic p.30
unresolved org Bank BJB Convertible Bonds Informations As p.31
unresolved org Bank BTN Securitization p.32
unresolved org Bank BTN Officially Became p.37
unresolved org Bank BTN Won Top PLCs p.37
unresolved org Bank BTN Officially Launched SuperApp BTN Mobile SuperApp p.37
unresolved org Bank BTN Syariah Pontianak Officially Operated Sharia Branch p.38
unresolved org Ministry of SOEs p.38 ×3
unresolved org Bank BTN Encouraged Traditional Market Digitization Ecosystem p.38
unresolved org Bank BTN Supported Millennial Residential Financing p.39
unresolved org Bank Released BTN Call p.40
unresolved org Bank BTN Collaborates p.40
unresolved org PT Pemeringkat Efek Indonesia p.40
unresolved org Bank BTN Housing Projects. With p.40
unresolved org Bank BTN’s Sharia Business p.41 ×4
unresolved org Bank BTN Reviewed Subsidized Housing p.41
unresolved org Bank BTN Mass KPR Akad p.41
unresolved org Bank BTN Launched BTN KPR Propritas Entrepreneurs p.41
unresolved org Bank BTN Inaugurated MSME Processing Center p.42
unresolved org Bank BTN Syariah Held Mass Contract p.42
unresolved org Bank BTN Syariah Sharia KPR Mass Contracts p.42
unresolved org Bank BTN Held BTN Santri Developer Training p.43
unresolved org Bank BTN Jakarta Run Successfully Held Bank BTN p.43
unresolved org Bank BTN Collaborated p.43
unresolved org Bank BTN Highest FLPP Distributor p.43
unresolved org PT Mandiri p.43
unresolved org Bank Indonesia’s p.48 ×4
unresolved org Bank BTN’s Sharia p.53
unresolved person Nixon L. P. Napitupulu · President Director p.60 ×2
unresolved org Bank Rating Approach p.66
unresolved org Bank BTN’s House Price Index p.67
unresolved org Minister of SOEs Regulation p.69
unresolved org Minister of State-Owned Enterprises p.70
unresolved person Prof. Dr. H. Muhammad Quraish Shihab p.74 ×7
unresolved person Hidayat p.76
unresolved person MBA p.76 ×2
unresolved person Mohamad Bagus Teguh Perwira · Member p.76
unresolved person Muhammad Faiz · Member p.76
unresolved person Vice · President Director p.78 ×3
unresolved org Common Name · Company Name p.82
unresolved org Indonesia Stock Exchange p.82 ×2
unresolved org Employee Base Limited p.82
unresolved org Bank Tabungan Negara’s Legal Form p.83
unresolved person Salim p.83
unresolved person H. R. Rasuna Said p.86
unresolved person H. M. Yusuf Singadikane p.86
unresolved person H.M Daud Beureuh p.89
unresolved org Description South Jakarta District Court p.90
unresolved org PT Aviasi Pariwisata Indonesia (Persero) p.90
unresolved org PT Pengembangan Pariwisata Indonesia (Persero) p.90
unresolved org PT Indah Kiat Pulp p.90
unresolved org PT OKI Pulp p.90
unresolved org PT Astakona Megahtama p.90
unresolved org PT Nindya Karya p.90
unresolved org PT Yodya Karya p.90
unresolved org PT Virama Karya p.90
unresolved org PT LEN Industri p.90
unresolved org PT Pupuk Sriwidjaja Palembang p.90
unresolved org PT Mega Akses Persada p.90
unresolved org PT Bandung Indah Permai p.90
unresolved org Bank Kemenag p.91
unresolved org Bank Public Housing Savings Management Agency p.91
unresolved org Ministry of Public Works and Housing p.91 ×2
unresolved org Kementerian PUPR p.91
unresolved org PT Jamkrindo Syariah p.91 ×2
unresolved org PT Askrindo Syariah p.91
unresolved org PT Jasindo Syariah p.91
unresolved org Ministry of Finance p.91
unresolved org Ministry of Religion p.91
unresolved org Ministry of Education p.91
unresolved org PT Rajawali Nusantara Indonesia (Persero) p.91
unresolved org PT Reasuransi Indonesia Utama p.91
unresolved org Bank Negara Indonesia Financial Institution Pension Fund p.91
unresolved org Bank Rakyat Indonesia Financial Institution Pension Fund p.91
unresolved org Yayasan Kesejahteraan Pegawai Otoritas Jasa Keuangan p.91
unresolved org PT Pabrik Gula Rajawali I p.91
unresolved org PT Rajawali Nusantara BTN p.91
unresolved org PT Industri Kereta Api p.91
unresolved org Bank Savings Post p.94
unresolved person Notary Muhani Salim p.94
unresolved org Minister of Justice p.94
unresolved org Bank Indonesia Certificate p.102
unresolved org Bank Guarantee Services Safe Deposit Box BTN p.104
unresolved person Forum Komunikasi · Direktur p.117 ×2
unresolved org Bank Institution p.117

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