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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
01
Great Resilience,
Strong Sustainability
Sustainability Report 2023
PT Bank Rakyat Indonesia (Persero) Tbk
Page 2
Sustainability Report 2023
Introduction PT Bank Rakyat Indonesia (Persero) Tbk.
Table of Contents
Introduction Governance: Social: Environmental: Appendices
Maintaining Good Corporate Empowering The People Nurturing The Planet
Governance
04 About this Sustainability Report 34 Corporate Governance 74 Our People 112 Climate Change Governance 133 ESG Data Tables
05 Message from the Board 50 Materiality and Stakeholder 85 Our Customers 114 Climate Change Strategies 181 Reporting Standards Indices
Engagement
13 A Brief Look at BRI 103 People and Communities 120 Climate Change Risk Management 189 Issued Securities Impact Reporting
56 Risk & Crisis Management Around Us
19 Our Sustainability Strategy 124 Metrics and Targets 210 Assurance Report
02 60 Business Ethics 108 Managing Human Rights
24 Business & ESG Highlights 128 Other Initiatives in Preserving the 215 Feedback Form
66 Information Security / Environment
26 Alignment with SDGs Cybersecurity
32 ESG Ratings & Recognitions 69 Sustainable Finance
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
In This Section
03
04
About This Sustainability Report
05
Message from the Board
13
A Brief Look at BRI
19
Our Sustainability Strategy
Introduction
24
Business and ESG Highlights
26
Alignment with SDGs
32
ESG Ratings & Recognitions
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
About This Sustainability Report
This Sustainability Report reflects BRI's commitment to realizing a more sustainable future through several value creation initiatives, including economic and social values. The report also serves as a means of communication between the Company and its
stakeholders, featuring information on economic and sustainability performance aspects, including the Company's environmental, social and governance (ESG) during the reporting period. [2-2] [2-4] [2-3]
Reporting Period [2-2] [2-3] [2-4] Report Assurance [2-5] [G.1]
The information in this report covers BRI’s sustainability activities and performance for the period 1 January to 31 December This sustainability report has undergone assurance by the independent assurance agency CBC Global Indonesia and
2023. For comparative purposes, some additional historic data, created over the last three years starting from 1 January certified to the international level assurance standard AA1000AS v3 with license number 000-310. The initial assurance
2021 to 31 December 2023 has been included. This report is published annually and there is a restatement of data from the process is carried out based on the Company's procurement service policy, which begins with the selection of an external
previous year. Changes from the previous report are indicated by annotations provided with each data or information. assurer.
The selection of independent parties has been delegated by the Board of Directors to the Sustainability Report preparation
team under the leadership of the Corporate Secretariat. The selection is made by considering expertise, reputation, the
04 absence of potential conflicts of interest and zero business relationship with BRI. Furthermore, verification of samples of
Reporting Standard [G.4] documentary evidence and confirmation is carried out with experts in all relevant work units. A detailed assurance report is
included on page 210.
The BRI 2023 Sustainability Report follows several standards and initiatives in its creation, including Guidelines for Preparing
Sustainability Reports in accordance with Regulation of the Financial Services Authority (POJK) Number 51/POJK.03/2017
on the Implementation of Sustainable Finance for Financial Services Institutions, Issuers and Public Companies, 2021
Global Reporting Initiative (GRI) Standards, Sustainability Accounting Standard Board (SASB). The report also adopts the
International Financial Reporting Standards (IFRS) S1 and S2. Contact Information [2-3]
We would like to extend our utmost appreciation for any input and suggestions that may contribute to the future
improvement of this report. In the first instance, kindly contact Hendy Bernadi by phone on +6221 575 2452 or via
humas@BRI.co.id
Reporting Limitations [2-2]
All information (environmental, social, and economic) presented in this report is owned by PT Bank Rakyat Indonesia
(Persero) Tbk at head office and regional office levels and does not involve any subsidiaries. Although BRI audits
consolidated financial statements, including subsidiaries such as Bank Raya, BRI Remittance, BRI Life, BRI Finance,
BRI Investment Management, BRI Ventures, BRIDS, BRI Insurance, Pegadaian, and PNM, information related to these
subsidiaries is not included in this report (except where otherwise indicated).
Page 5
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Message from the President Commissioner [2-22] [D.1]
Dear Shareholders and Stakeholders,
Let us show our gratitude to God Almighty for, because of His mercy and grace, PT Bank Rakyat
Indonesia (Persero) Tbk completed 2023. We are grateful that the Company has been able to
make the most of the momentum of economic recovery and maintain strong business growth,
without compromising the commitment to realizing sustainable values.
Nevertheless, we should anticipate the uncertainty of challenging global economics conditions,
along with the forthcoming general election in 2024 and the escalating geopolitical tensions.
05 In particular, the International Monetary Fund (IMF) has warned that inflation and debt remain
a threat to the global economy in 2024. However, in its latest report, the IMF projects that the
economies of developing countries will grow faster than those of the developed countries. This
projection is supported by data from Statistics Indonesia that recorded Indonesia's economic
growth in of 2023 at 5.05% (yoy). This figure shows that Indonesia's economic growth remains
high amidst the sluggish global economic growth.
Amid these conditions, the government’s policies and financial sector regulators have
supported fairly robust national economic strength. This is also reflected in BRI's business
growth which reached double digits, BRI Group successfully recorded a net profit of Rp60.4
trillion in 2023, reflecting a growth of 17.5% compared to the previous year. As a bank
committed to serving and fostering the sustainable growth of the Micro, Small, and Medium
Enterprises (MSMEs) sector, BRI has facilitated disbursements to more than 36.9 million Ultra
Micro (UMi) and Micro customers. This demonstrates BRI's consistent efforts in providing
tangible support for economic prosperity distribution and enhancing financial inclusion in
Indonesia.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Message from the President Commissioner
Governance: Responsible Business Practices Indonesia, as the world's largest archipelagic nation, possesses diverse socio-economic backgrounds, encompassing
ethnicities, cultures, languages, and beliefs. In addressing economic equality amid Indonesia's geographical and cultural
The commitment to carrying out sustainable business processes has been solidified by BRI becoming a member of the challenges, the community requires easy and affordable financial access. Therefore, the enhancement of financial inclusion
United Nations Global Compact (UNGC) in March 2023. This membership further strengthens the Company's commitment becomes crucial. Inclusive finance means involving vulnerable and disadvantaged groups in the banking economy.
to conducting its business practices responsibly. The UNGC is a global initiative developed by the United Nations (UN) and Therefore, BRI offers various services to reach them, including the PNM Mekaar program. Thanks to this program, the
has 10 universal principles, including human rights, labor, the environment, and anti-corruption Company has empowered more than 15.1 million underprivileged women customers, thereby supporting the achievement
of SGDs Number (5) for Gender Equality.
Elsewhere, to gain a comprehensive understanding of perspectives and constructive input from stakeholders, BRI organizes
stakeholder engagement forums. Through our stakeholder engagement forum, BRI strengthens its commitment to building BRI's support for easy and inclusive financial access, reaching from the top to the bottom of the societal pyramid, is realized
collaborative and inclusive relationships on the sustainability journey. through the Hybrid Bank BRI business model. This model integrates conventional banking (physical presence) with digital
innovation elements (digital capabilities). The Hybrid Bank BRI model is strengthened by over 7,700 branches and service
In the scope of sustainability governance, BRI is supported by regulations and policies which are the basis for implementing offices, complemented by BRIBrain, formed by combining Artificial Intelligence and Big Data Analysis. Through this business
an environmentally friendly work environment, in line with sustainability principles. BRI has also issued a Sustainability model, BRI has successfully created affordable financial solutions and a well-distributed banking network, connecting
06 Policy and Strategy, with a focus on environmental, social, and corporate governance aspects. Strengthening ESG Indonesia from urban areas to the 3T regions (underdeveloped, frontier, and outermost areas).
governance is also supported by a new organizational structure that is specifically tasked with monitoring and evaluating
the implementation of BRI's sustainability strategy initiatives.
Environment: Net Zero Emission Commitment
In support of BRI's consistency in implementing the ESG roadmap, the Board of Commissioners actively oversees through
joint meetings with the Board of Directors and field visits. This includes approving the Sustainable Financial Action Plan for In supporting the net zero vision adopted both globally and domestically, BRI supports and plays an active role in
BRI in 2023 to ensure the consistent and effective implementation of the ESG roadmap program. realizing Net Zero Emission (NZE). In its commitment, BRI is optimistic that the NZE target can be achieved in 2050 with a
short-term target in 2030. To achieve this goal, BRI has taken the initiative by setting targets based on the global Science-
Based Target Initiative (SBTi) standards and has become the first financial institution in Indonesia to submit a letter of
Social: Financial Inclusivity Expansion as the Foundation of the Economy commitment to obtain approval from SBTi.
In accelerating financial inclusion in Indonesia, BRI designated 2023 as a period of "strengthening retail banking capacity" At the operational level, BRI encourages all employees to take the initiative in adopting a work culture aligned with
with a focus on improving the ecosystem to optimize services to the community, especially in the retail segment. One of sustainability principles, such as optimizing digital tools to reduce paper usage and promoting an energy-efficient culture
the steps taken was the transformation of liabilities into transaction-based products and services. BRI strives to present in the workplace. Additionally, BRI supports emission reduction actions through the implementation of the Green Network
itself as a banking solution that puts customers first, providing services according to customer characteristics and needs. program, including providing electric vehicles for employees and installing solar panels in selected BRI units.
BRI has built digital capabilities through various apps such as BRIMO, BRISPOT and SenyuM mobile, and ensures a physical
presence through BRILink agents, UltraMikro synergy, and digital counsellors.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Message from the President Commissioner
BRI actively participates in government initiatives, such as the carbon trading exchange. Carbon economy and de-carbonization is in
accordance with Minister of SOE Circular Number 6 of 2022 on Implementation of the De-carbonization Program and Implementation
of Carbon Economic Value in SOEs The Board of Commissioners consistently reminds BRI to periodically review the financing portfolio
guidelines, taking into account the carbon risk exposure in specific industrial sectors.
For all BRI's achievements in 2023, the Board of Commissioners would like to thank everyone who gave their trust and support. The
Board of Commissioners would also like to express its highest appreciation for the hard work of all BRI employees in realizing a shared
commitment towards performance oriented sustainable development.
It is hoped that BRI will continue to provide the best performance and improve services for customers so that customers continue to
grow and become more resilient. It is also hoped that BRI will maintain its position as a prominent financial institution in Indonesia.
07 .
Thank you
Jakarta, February 7 2024
On behalf of the Board of Commissioners
Kartika Wirjoatmodjo
President Commissioner
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Message from the President Director [2-22] [D.1]
Dear Shareholders and Stakeholders,
Let us give our gratitude to God Almighty, for because of His grace, PT Bank Rakyat
Indonesia (Persero) Tbk was able to complete 2023. We are also grateful to be able
to release the 2023 Sustainability Report, amidst national challenges and escalating
international geopolitical tensions.
This report presents to its stakeholders, information on the Company's performance
08 and commitment to sustainable growth, especially when related to environmental,
social, and corporate governance (ESG) aspects. This report details the challenges faced
by the Company, the sustainability programs and strategies that have been prepared,
as well as performance achievements, both financial and non-financial, in 2023. Apart
from functioning as a medium for performance dissemination, this report is also a
manifestation of the Company's transparency and openness in building trust with all
stakeholders.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Message from the President Director
Growing Sustainably Through Retail Banking
As a concrete step, within the operational arena, BRI is implementing various initiatives to impact emissions by reducing
In line with the commitment to strengthening the retail banking segment ecosystem, BRI currently has more than 7,700 the use of fossil-based fuels and increasing the number of electric operational vehicles. By the end of 2023, BRI operated 118
work units, more than 740,000 BRILink agents, and more than 27,000 digital advisors ready to assist customers in their electric vehicles and 150 electric motorbikes. BRI also has a public electric vehicle charging station located at the head office.
customer journey. BRI also continues to promote the digitalization of business processes by improving the process In addition, as many as 93 BRI work units have used solar panels as a form of renewable energy electricity use.
engineering, one of which involves serving transactions via the BRImo application. This service aims to spur business
growth and improve customer comfort in transactions. Moving forward, BRImo will be one of the spearheads in BRI consistently and continuously calculates carbon emissions resulting from business activities, operations, and customer
accelerating transaction growth in the retail segment. Until the end of 2023, the financial transactions value through BRImo financing portfolios. In 2023, the Company recorded a decrease in Scope 1 emissions by 1.29% and a decrease in Scope 2
has achieved an increase of 55.8% compared to the previous year. emissions by 1.22%. On the other hand, BRI noted a significant reduction in Scope 3 financed emissions by 7.02%.
BRImo users rose by 32.6% annually, reaching more than 31 million users. In addition, the SenyuM Mobile application from In line with the NZE commitment, BRI is also focused on enhancing its sustainable business portfolio, which includes
Holding UMi plays a strategic role in reaching the ultra-micro community at its core, enabling them to access financial credit disbursement to MSMEs, loans to the green sector, and investments in ESG-based bonds. By the end of 2023, the
services from the three Ultra Micro Holding entities (BRI, Pegadaian, and PNM) directly, anywhere and anytime while sustainable business portfolio reached Rp777.28 trillion, comprising Rp690.43 trillion in business loans disbursed to MSMEs,
conducting their businesses, particularly for savings and investment products. This application has been accessed by more Rp82.32 trillion in loans to the green sector, and Rp4.54 trillion in investments in ESG-based Corporate Bond Investment.
than 36 million micro and ultra-micro customers, over 73 thousand joint sales forces from the three entities, and has been
09 utilized by all BRILink agents and Pegadaian agents. Promoting Collaboration: “Sustainable Minds, Collective Impact”
Through this strategy, BRI has been able to achieve a 3.99% year-on-year increase in third-party funds, reaching Rp1,352.7 BRI understands that the success of climate action and financial inclusion relies heavily on collaboration with our
trillion in 2023, with a composition of low-cost funds (Current Account Saving Account) at 64.55%. This positive trend is also employees and stakeholders. Therefore, at the operational level, the implementation of BRI's ESG roadmap prioritizes two
reflected in the loan growth, which increased by 11.29% year-on-year to Rp1,146.1 trillion in 2023, with credit disbursement things: people and business processes and BRI continues to promote the internalization of a culture of sustainability for all
to the MSME segment reaching 82%. This business performance gain is the result of the Company's efforts to optimize employees through the Sustainability Culture Program. This program focuses on three main aspects, namely Environment,
services and strengthen retail banking capabilities, while continuing to utilize the Company’s extensive network throughout Social, and Governance, which are evaluated through indicators integrated with the daily activities of BRILiaN individuals.
Indonesia. As a form of respect for human rights, BRI has also issued new regulations in accordance with human rights principles in
the field of employment.
Climate Action: BRI’s Net Zero Target BRI continues to build community participation through several programs, two of which are the BRInita (Farming in the
City) program involving community participation to support the improvement of the environmental ecosystem through
BRI understands that adapting business strategies to transition efforts towards a low-carbon economy is a must. BRI has urban farming. Through BRInita, BRI specifically engages women's groups such as Family Welfare Guidance (PKK) and
assessed, managed, and disclosed climate-related risks and opportunities in accordance with the IFRS S2 Climate-related Women Farmer Groups (KWT), and collaborates with BRI Women’s Association (IWABRI). The hope is that these initiatives
Disclosure standards. In line with this, BRI set a Net Zero Emission (NZE) target which is currently in the Science Based can empower the skills and involvement of women, creating a positive impact on the community and the surrounding
Targets initiative (SBTi) validation process. environment.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
In addition, BRI has a program called BRI Menanam program that seeks to build community participation to achieve a
green environment. The BRI Menanam Program oversees the superior potential developed at planting locations and
adapts to the agroecological conditions in each region. It is hoped that this program can become a driver for economic,
environmental, and social aspects for the community. As of the end of December 2023, BRI Menanam has planted 904,196
tree seedlings and is estimated to absorb approximately 780,606 kg CO2eq of carbon.
Regarding progress and achievements towards sustainable growth, the Board of Directors would like to express its deepest
gratitude to everyone who has lent support. The realization is that all of these achievements are the result of the hard work
of all stakeholders.
10
Wassalamualaikum Wr. Wb.
May peace be upon us all.
Jakarta, February 7, 2024
Sunarso
President Director
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
2023 Sustainability Report Responsibilities
Statement Letter of Members of the Board of Directors Regarding Responsibility for the 2023 Sustainability Report of PT Bank Rakyat Indonesia (Persero) Tbk [2-14]
We, the undersigned, hereby declare that all information in the 2023 Sustainability Report of PT Bank Rakyat Indonesia (Persero) Tbk for the year 2023, has been presented completely, and we are fully responsible for the accuracy of the contents of the
Company's Sustainability Report.
This statement was wade with actual.
Jakarta, February 7, 2024
Board of Directors
Sunarso
President Director
11
Catur Budi Harto Viviana Dyah Ayu Retno
Vice President Director Director of Finance
Supari Amam Sukriyanto Handayani
Director of Micro Business Director of Small & Medium Business Director of Consumer Business
Arga Mahanana Nugraha Ahmad Solichin Lutfiyanto Agus Winardono
Director of Digital and Information Director of Compliance Director of Human Capital
Agus Sudiarto Agus Noorsanto Andrijanto
Director of Risk Management Director of Wholesale & Institutional Director of Network & Service
Page 12
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
2023 Sustainability Report Responsibilities
Statement Letter of Members of the Board of Commissioners Regarding Responsibility for the 2023 Sustainability Report of PT Bank Rakyat Indonesia (Persero) Tbk [2-14]
We, the undersigned, hereby declare that all information in the 2023 Sustainability Report of PT Bank Rakyat Indonesia (Persero) Tbk for the year 2023, has been presented completely, and we are fully responsible for the accuracy of the contents of the
Company's Sustainability Report.
This statement was wade with actual.
Jakarta, February 7, 2024
Board of Commissioners
Kartika Wirjoatmodjo
President Commissioner
12
Rofikoh Rokhim Hendrikus Ivo Heri Sunaryadi
Vice President Commissioner/Independent Commissioner Independent Commissioner Independent Commissioner
Rabin Indrajad Hattari Awan Nurmawan Nuh Dwi Ria Latifa
Commissioner Commissioner Independent Commissioner
Paripurna Poerwoko Sugarda Agus Riswanto Nurmaria Sarosa
Independent Commissioner Independent Commissioner Independent Commissioner
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
Informasi Umum [2-1] [C.2] [C.3] BRI and Subsidiaries [2-6] [C.3]
Company PT Bank Rakyat Indonesia (Persero) Tbk.
Market leader for the pawnbroking industry Provider of general insurance
Gedung BRI I
Head Office Jl. Jenderal Sudirman No. 44-46 99.99% 90.00%
Jakarta 10210, Indonesia
President Director Sunarso
National leader in community-
Total Assets based lending
IDR 1,835.25 Trillion
(bank only) 99.97%
99.99%
13
Net Income
IDR 53.15 Trillion
(bank only)
53.19% (Government of the Republic of Indonesia), 46.81% (Public)
Share Ownership
*The main and controlling shareholder of BRI is the Government of the Republic of 54.77% 67.00%
Indonesia through the golden share of Series A Dwiwarna (Golden Share)
Founded on December 16, 1895, in the Central Java town of Purwokerto, Indonesia, BRI has served the Indonesian people
A Digital bank that focuses on
for more than 128 years, becoming a reliable and trusted financial partner for MSME (micro, small and medium enterprises) MSMEs, especially the gig economy
businesses. BRI also boasts an extensive, nationwide network with more than 7 thousand banking service offices supported
by more than 686 thousand e-channels and 740 thousand BRILink agents. [2-6] [C.3] 86.85% 65.00%
BRI offers a variety of financial products and services to suit customer needs, in both the MSME and corporate segments,
ranging from savings products, and loans, to other financial products and services. As a commercial bank that focuses on
serving customers in the MSME segment, BRI also offers a variety of community empowerment programs in the form of
training and mentoring to increase the capacity of MSMEs. Further information regarding products, services and business
activities carried out by BRI is available on the website at https://bri.co.id and through the 2023 Annual Report that is 99.88% 100%
released separately from this Sustainability Report. [2-6] [C.4]
BRI Ownership
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
BRI Network [2-1] [[2-6] [C.3] [C.4]
BRI Hong Kong Representative Office
14
BRI Taipei Branch
BRI New York Agency BRI Timor Leste Branch
BRI Cayman Island Branch BRI Singapore Branch
Sumatera Kalimantan Java Sulawesi and Maluku Bali and Nusa Tenggara Papua
Regional Office: 5 Regional Office: 1 Regional Office: 8 Regional Office: 2 Regional Office: 1 Regional Office: 1
Branch Office: 95 Branch Office: 40 Branch Office: 216 Branch Office: 57 Branch Office: 32 Branch Office: 13
Sub-Branch Office: 105 Sub-Branch Office: 42 Sub-Branch Office: 328 Sub-Branch Office: 42 Sub-Branch Office: 26 Sub-Branch Office: 13
BRI Unit: 1,005 BRI Unit: 379 BRI Unit: 2,801 BRI Unit: 551 BRI Unit: 295 BRI Unit: 86
Cash Office: 75 Cash Office: 23 Cash Office: 341 Cash Office: 36 Cash Office: 20 Cash Office: 10
Teras BRI: 217 Teras BRI: 96 Teras BRI: 478 Teras BRI: 52 Teras BRI: 117 Teras BRI: 17
Teras BRI Cars: 2 Teras BRI Cars: 6 Teras BRI Cars: 59 Teras BRI Cars: 43 Teras BRI Cars: 4 Teras BRI Cars: 1
Teras Kapal BRI: 1 Teras Kapal BRI: 0 Teras Kapal BRI: 1 Teras Kapal BRI: 1 Teras Kapal BRI: 1 Teras Kapal BRI: 0
BRI Payment Point: 2 BRI Payment Point: 3 BRI Payment Point: 42 BRI Payment Point: 2 BRI Payment Point: 1 BRI Payment Point: 0
BRILink Agent: 165,053 BRILink Agent: 56,500 BRILink Agent: 395,383 BRILink Agent: 76,747 BRILink Agent: 39,070 BRILink Agent: 8,065
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
Vision, Mission, and BRIVolution 2.0 [2-23] [C.1]
Vision “THE MOST VALUABLE BANKING GROUP IN SOUTHEAST ASIA
AND CHAMPION OF FINANCIAL INCLUSION”
15 Provide the Best
y To conduct the best banking activities by providing priority services to micro, small and medium segments, improving people’s economy;
Provide Excellent Services
Mission y To provide excellent customer-centric service through professional human resources with a performance-driven culture, reliable and future ready information technology, and a productive
conventional and digital work network, by applying the principles of operational and risk management excellence;
Provide Optimal Advantages
y To give optimal profits and benefits to stakeholders by upholding the principles of sustainable finance and excellent good corporate governance practices.
BRI reviews and evaluates the Company's vision and mission every five years, adapting it to the dynamic development needs according to the times. In 2021, through a board retreat which was attended by all top management (Directors and SEVP)
and independent parties, BRI reviewed and evaluated the Company's vision, mission, and achievement of key indicators. This evaluation included updates to the Company's vision and mission, which were approved by the Board of Directors and Board
of Commissioners, as a guideline until 2025. Dynamics and challenges, both external (climate change and technological developments) and internal, have pushed BRI to adjust its long-term plans and performance strategies. This evaluation also led to
adjustments to the bank’s 2021–2025 corporate plan, known as BRIVolution 2.0, with a focus on the vision of becoming "The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion" by 2025.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
Formulating the Future of BRI BRIVOLUTION 2.0
BRI is currently carrying out a transformation to realize its vision to become "The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion" with a target of a $75 To realize these aspirations, BRI has established 6 main
billion market cap, 90% financial inclusion, and an increasing number of enablers. The goal is supported by the vision of each business directorate and other support directorates formulated strategies, namely:
to maintain the Company's solid and sustainable business growth.
1. Creating New Growth Engine
BRIVOLUTION 2.0 is implemented through 3 (three) phases: Creating a new business engine through several
initiatives such as: Ultra Micro, Business Ecosystem,
hyperlocal micro ecosystem, and a B2B SME
Ecosystem.
Scale up &
Strengthen Scope up Sustain 2. Accelerating CASA Growth
Increasing CASA through several strategic initiatives.
3. Enhancing Cross-Sell to Boost Fee Income
16 Initiatives that support increasing service income
“Scale up new growth engines and beyond
“Strengthen the core for growth” “Sustain top-tier position in Southeast Asia” through the scaling up of wealth business, SME
banking”
2021-2022 2025 Accelerate CASA Growth banking applications, subsidiary cross-selling, as well
2023-2024
as through non-credit financial products such as
insurance, trade finance, pawnbroking and others.
In the "strengthening" stage, BRI devised strategies In the "scaling-up and scoping-up” stage, In the "sustaining" stage, BRI hopes to develop
to strengthen its core business in all aspects BRI and its subsidiaries are focused on new into a bigger and stronger company and to 4. Containing Credit Cost
to achieve future growth. Improvements in levels of growth and expansion of scope, be able to maintain business in a sustainable Managing credit costs by changing and updating
distribution networks, information technology, including product and service offerings through manner. BRI has managed to realize its business credit processes.
human resources, corporate culture, risk digitalization. In 2023, BRI realized this aspirational commitment as "The Most Valuable Banking
management and all business supporting theme by prioritizing "strengthening of retail group in Southeast Asia and Champion of 5. Improving Customer Experience
elements were required to strengthen the banking capabilities" by building a sustainable Financial Inclusion." This milestone serves as Improving customer experience through the use of
foundations of BRI and its subsidiaries. BRI also business ecosystem. In 2024, BRI has set the an important foundation for BRI to continue to the latest technology.
managed to tackle the impact of the COVID-19 target of greater contributions from its subsidiaries progress and continue to create economic and
pandemic by implementing selective growth compared to that of the previous years to achieve social value for every stakeholder. 6. Adapting Cultures & Capabilities
strategies, maintaining asset quality, and profitability targets. Also in 2024, BRI is committed An initiative group that functions as an enabler
increasing efficiency. to becoming a leader in banking transactions by in the transformation process at BRI, specifically
developing digital products and services. regarding the culture and capabilities of HR, IT and
risk management.
Page 17
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
BRI Culture [2-23] [F.1]
BRI has cultural guidelines that have an important influence in Circular Letter of the Minister of State-Owned Enterprises SE-7/MBU/07/2020 on Core Values of Human Resources of State- BRILiaN Ways has the following values:
achieving the Company's vision, namely BRI One Culture which Owned Enterprises (SOEs), is known as AKHLAK. AKHLAK is an acronym for Amanah (Trustworthy), Kompeten (Competent),
1. being honest and sincere and
consists of 3 (three) values; Core Values AKHLAK, BRILiaN Belief, Harmonis (Harmonious), (Loyal) Loyal, Adaptif (Adaptive) and Kolaboratif (Collaborative) and includes the following values:
complying with regulations;
and BRILiaN Ways.
2. having skills and reliability, motivation
to continue learning, developing
oneself and others (continuous
learner);
3. working thoroughly with full
CORE VALUES responsibility oriented towards the
best performance;
Amanah Kompeten Harmonis Loyal Adaptif Kolaboratif 4. building productive collaboration;
5. being open and appreciative of
diversity (respect for diversity);
Integrity, sincerity, Best performance, Care, diversity Commitment, Innovation, Willingness to
AKHLAK consistency, and success, dedication, enthusiasm for collaborate and 6. being proactive, adaptive, innovative
17
trustworthiness achievement, willingness to change, and synergize for and oriented towards sustainable
learning agility, sacrifice, and proactive action better results growth;
and expert in the contribution 7. having empathy, understanding
field customer needs, and providing service
BRI One that exceeds expectations; and
Culture 8. caring about the community and the
BRILiaN environment.
Ways BRILiaN
As the chief values of human resources at SOEs, AKHLAK has become the central point in the work culture within BRI,
PERFORMANCE
both on an internal and external scale. In this context, there are BRILiaN keywords and behavioral guidelines that are
DRIVEN BELIEF
BEHAVIOURS in accordance with the Circular of the Minister of State-Owned Enterprises. By referring to the main values of AKHLAK,
BRILiaN Belief and BRILiaN Ways, they become a guide for the Company to support BRI's performance achievements.
y Through BRILiaN Belief, it is emphasized that BRILiaN people must maintain integrity and act professionally in
performing their duties, upholding respect and mutual trust to provide innovative customer-centric BRI Group services
that provide added value for customers, the community, and stakeholders.
y BRILiaN Ways supports achieving the best performance (performance-driven behavior) and can be adjusted based on
industry type and company strategy.
Page 18
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
A Brief Look at BRI
Culture Squad
In order to optimize the management of BRI's Corporate Culture and the implementation of BRI One Culture in operational Specifically for CAK, serving as a coordinator of CAs and having an understanding and mastery of the culture program
units, an active role from unit leaders is crucial in internalizing BRI's work culture values. To oversee this internalization, the across all functions in the operational unit, such as business, operations, support, risk, and other functions.
role of the Culture Squad becomes pivotal. The Culture Squad consists of the Culture Leader (CL), Culture Accelerator (CAR),
Culture Agent (CA), and Culture Agent Coordinator (CAK), ensuring the success of the culture program that encourages
behaviors to create values and enhance performance sustainably.
The tasks and responsibilities of the Culture Squad include:
1. Culture Leader
y Establishing performance achievement strategies based on behavioral issues and serving as a role model
(motivating and developing CA) that supports the implementation of the Culture Activation Program (CAP) and
other work culture agendas.
y Responsible for ensuring that CA/CAK is selected in the operational unit according to criteria.
18 y Coordinating and supporting CA/CAK in implementing culture programs to bring about behavioral changes that
support performance.
y Monitoring and evaluating the success of the culture program in the operational unit.
y Supporting and ensuring active engagement of all BRILiaN personnel in culture program activities.
2. Culture Accelerator
y Serving as a role model supporting and overseeing the internalization of culture to bring about behavioral changes
in achieving performance.
y Acting as a communication facilitator between CAK/CA and CL and initiating and overseeing collaboration between
functions.
y Responsible for the selection and appointment of CA/CAK in the operational unit.
y Supporting, monitoring, and evaluating the success of the culture program and ensuring the involvement of BRILiaN
personnel.
3. Culture Agent / Culture Agent Koordinator
y Initiating the development of culture programs that support performance achievement in the operational unit.
y Actively participating in socializing and ensuring the understanding and implementation of culture programs by
BRILiaN personnel in the operational unit.
y Implementing and monitoring the success of the culture program in the operational unit.
y Coordinating with CL, CAR, and CAK in implementing culture programs in the operational unit.
y Acting as a BRILiaN Ways ambassador for all workers in the operational unit to implement the 8 (eight) BRILiaN
Ways Behavioral Guidelines.
Page 19
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Our Sustainability Strategy [A.1] [2-24]
Corporate Strategy
ESG Strategy Pillars
Scale up &
Strengthen Scope up Sustain
“The Most Valuable Banking Group
in Southeast Asia and Champion of Environment Social Governance
Financial Inclusion”
Includes an assessment of the Covers all BRI activities Covers all BRI management
19 effectiveness of BRI activities related to the Company's activities from product
in having an impact on the relations with employees, governance, corporate
environment, both directly work environment conditions, governance, business ethics,
and indirectly. and BRI's social position in its and managing information
Sustainability Strategy surrounding environment systems/cyber security, to
realizing sustainable finance
and good corporate finance
Leader in Regional Global
Indonesia Ambition Excounter
Establishing climate change Empowering the People Maintaining good corporate
strategies governance
ESG VISION y Developing Climate Risk y Financial Inclusion & y Sustainable Finance Product
Strategy Customer Excellence & Strategy
“World Class Sustainable Banking y Carbon Emission y Human Rights & Social y Sustainable Finance
Group focusing on Environment, Management on Own Responsibility Governance & Compliance
Social, and Governance dimensions” Operations y Strategic Workforce Planning y Board & Stakeholders
y Green Banking as part of Governance
Decarbonization Strategy y Risk & Control Environment
BRI has set a sustainability aspiration to become a World Class Sustainable Banking Group in line with the BRIVolution
2.0 Aspiration as "The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion". In accordance
with the Circular of the Board of Directors on Sustainability Policy and Strategy, the following are the 3 (three) ESG strategy
pillars that are the focus when implementing BRI's sustainability strategy. [A.1] [2-24] [3-3]
Page 20
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Our Sustainability Strategy
BRI’s Sustainability Journey
2023
2022
2021 y Allocated credit to Sustainable Business
y Established the ESG Division
2018 - 2020 y Enhanced Sustainability Strategy
Activity Categories (KKUB) in both the
MSME sector and Environmentally
2015 - 2017 y Achieved Zero Cyber Security Breach
Aware Business Activities (KUBL)
y Established the Ultra Micro y ESG Ratings: S&P Global CSA, 63;
Ecosystem
Sustainalytics, Low Risk; MSCI, y Issued a Green Bond worth IDR 6
Rating A
trillion
y Joined the Indonesian y Formed the ESG Committee y Listed in the S&P Global
Sustainable Finance Initiative Sustainability Yearbook 2022 y Committed to Science-Based Target
y Issued BRI Sustainability Policy y Established the ESG Desk y Allocated credit to Sustainable
(IKBI) Initiatives (SBTi) related to greenhouse
Business Activity Categories (KKUB)
y Issued Sustainable Credit Policy y Issued the Sustainable Financial y Became a Constituent of the in both the MSME sector and gas emission reduction targets
20 Indonesia ESG Leader Index Environmentally Aware Business
for Palm Oil Sector Customers Action Plan (RAKB) for the Activities (KUBL) y Determined the baseline year for the
period 2019 – 2023 (ESGL Index)
y Joined as a First Mover on y Ratification of the Respectful Company's greenhouse gas emission
Workplace Behavior Policy
Sustainable Banking y Issued a USD 500 million reduction efforts to be 2022
y Improved scores in the Employee
Sustainability Bond Engagement Survey
y Set Net Zero Emission Targets for the
y Conducted Greenhouse Gas y Joined the Partnership for Carbon year 2050
Accounting Financials (PCAF)
(GHG) Emission Calculations initiative
y Issued the Task Force on Climate-
y Conducted Greenhouse Gas
Emission Calculations: Finance Related Financial Disclosures (TCFD)
Emissions Report
y Issued a Green Bond worth IDR 5
trillion y Installed solar panels at BRI workplaces
y Issued Sustainability-Linked Loans
worth USD 1 billion y Joined the United Nations Global
y Issued Financing Policy for Specific
Compact (UNGC)
Sub-Sector: Pulp and Paper
y Issued human rights policy
y Reported on the Indonesian Green
Taxonomy
y Issued policy pertaining to human
y Implemented the BRI Menanam rights principles in employment
Program
y Inaugurated the "BRILiaN Tower"
Building with a "Green & Smart
Building" concept
y Used electric vehicles for operational
activities
y Implemented the Zero Waste to
Landfill program
Page 21
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Sustainable Finance Action Plan
BRI has formulated a Sustainable Financial Action Plan (SFAP) in accordance with the Regulation of Financial Services y Establishing a special work unit at head office which is responsible for implementing sustainable finance at the bank;
Authority Number 51/POJK.03/2017 to implement Sustainable Finance. The implementation of SFAP takes into account y Supervising work unit compliance in implementing sustainable finance;
environmental, social and corporate governance aspects. Activities in the SFAP involve environmentally sound financing, y Supervising business units and operational work units to appoint officials to be responsible for implementing
the BRI Peduli program, and environmentally friendly operational practices. [FS1] sustainable finance in their work units;
y Supervising sustainable finance policies and procedures so that they are in line with changes and development of
BRI's SFAP is prepared by planning meetings with related work units and obtaining approval from the Directors and the bank products, services and technology that are adapted to developments in sustainable finance;
Commissioners. The SFAP is divided into long-term SFAP for 5 years (2018-2023) and short-term SFAP for 1 year (2023). BRI y Supervising internal capacity development programs related to sustainable finance on a regular basis; as well as
routinely conveys and reports the SFAP achievements to the OJK every year. y Managing and conducting periodic reviews and reviewing the effectiveness of the risk management process as the
duties, responsibilities and authority of the Board of Directors related to the implementation of sustainable finance.
The SFAP preparation process is supervised by the Compliance Director and prepared by the ESG Committee which
involves the Risk Management Director, the Finance Director, the SEVP Change Management & Transformation Office, the
Compliance Director, and the ESG Division as committee secretary. The Support Team consists of the Change Management,
the Investor Relations, the Planning, Budgeting & Performance Management Division, the Corporate Secretary, the Micro
21 Business Development, and the Project Management Office Division who also support this process. [E.1]
The role of highest governance in the implementation of sustainable finance is explained as follows: [E.1]
1. Board of Commissioners
The Board of Commissioners has duties, responsibilities, and authority to actively supervise sustainable finance which
refers to the bank's Articles of Association and laws and regulations, such as:
y Giving approval for the sustainable financial policy which is one of the bank's specific policies;
y Giving approval to the Sustainable Financial Action Plan (SFAP);
y Giving approval for the Sustainability Report; and
y Supervising the implementation of the Board of Directors' responsibilities regarding the implementation of
sustainable finance.
2. Board of Directors
The Board of Directors has duties, responsibilities and authority to implement the sustainable finance program that
refers to the bank's Articles of Association and laws and regulations, including:
y Preparing and proposing a draft sustainable finance policy and its amendments to the Board of Commissioners;
y Preparing and proposing the SFAP to the Board of Commissioners;
y Preparing and proposing a sustainability report to the Board of Commissioners;
y Communicating the SFAP to shareholders and all organizational structures in the bank;
y Supervising work units that implement sustainable finance policies and procedures separately from the work units
that oversee its implementation;
Page 22
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Sustainable Finance Action Plan
The following are priority programs and activities based on the SFAP that BRI implemented in 2023, and their achievements. [F.25]
Description of Activities Explanation of Activities Achievements
Acquisition of New Customers in line with BRI has sharpened its business focus to prioritize customers in line with ESG initiatives. The acquisition Customer acquisitions have been carried out in line with sustainability initiatives.
ESG Initiatives will be carried out both in terms of savings, loans (cash loans/non-cash loans), trade finance
acquisitions, and value chains from potential customers.
Syndicated Financing Based on Green Increasing the percentage of sustainable asset growth through a syndicated financing scheme that There is syndicated financing based on green financing for 4 debtors.
Financing prioritizes ESG principles so that it can have a positive impact on society and the environment.
Non-Third-Party Fund funding plan Issuance of non-Third-Party Plan instruments in Rupiah and foreign currency (forex). Issuance of Long-Term Notes (LTN) securities is awaiting a response from PT Kustodian Sentral Efek Indonesia
(KSEI) and the Financial Services Authority (OJK).
Integrating TCFD into Risk Management The Task Force on Climate-related Financial Disclosures (TCFD) is a global standard used by 1. The BRI TCFD report can be downloaded via the BRI website through this link: https://www.ir-bri.com/esg/
companies to disclose risks and opportunities related to climate change issues. The TCFD report also tcfd.html.
serves as a basis that investors can use to assess BRI's ESG performance. 2. Publication of ESG implementation reports is available on the website and can be used by rating agencies in
22 assessing ESG ratings.
BRI Green Network The application of ESG principles aims to prepare BRI work units to support BRI's sustainability agenda Disabled parking and ramps, special counters for the elderly, solar panels and electric vehicles are available in
by implementing ESG initiatives targeted at increasing the Company’s value. several BRI work units spread throughout Indonesia.
BRI Menanam Gradual planting of productive trees that have benefits and are able to realize independence and During 2023, BRI has planted 233,700 trees, thus bringing the total number of trees planted by BRI under the
optimize the potential of superior commodities in BRILiaN Villages. BRI Menanam program to 904,196 trees. This planting effort was distributed across 2,593 BRILiaN villages.
Waste Management Reorganize management of waste generated from operational activities in the BRI Head Office area to The procurement process for waste management vendors was implemented at the BRILiaN Tower and the
be more environmentally friendly so that it can support the zero waste to landfill strategy. Ragunan Information Technology Building.
Implementation of the BRI Green Campaign The Green Campaign, Social, & Governance program is support for realizing BRI's corporate 1. There has been a trend of decreasing waste volume in the head office area in the last few months
sustainability. This initiative is implemented by the ESG Division in collaboration with partners to (supporting environmental aspects).
strengthen the internalization of ESG principles. 2. ESG-related education has been carried out for BRILiaN People (in support of social aspects)
3. There was an increase in the use of knowledge management by workers (in supporting governance
aspects)
Deploy next-gen data & analytics in Human The development of people analytics with a focus on the framework and standards of people A dashboard has been created that can be accessed by personnel to carry out self-service analytics and
Capital for prioritized uses cases analytics and the use case of people analytics. develop several use cases related to Human Capital.
ESG in BRI Human Capital management Preparation of policies, declarations and implementation of Human Capital management oriented 1. Letter of Board of Directors Number 642- DIR/HCS/03/2023 dated March 31, 2023 on Human Rights
towards implementing ESG principles, including through the human rights Policy, the diversity rights Principles in Employment were issued.
policy, and the diversity program. 2. A webinar regarding Respectful Workplace Policy (RWP) was held on June 7, 2023.
3. Data on the results of the Employee Human Rights Self-Assessment Recapitulation results were submitted
on July 31, 2023.
Development of Sabrina 3.0 Presenting the BRI Contact service in the form of a chatbox with a rich variety of information/menus The Sabrina 3.0 service has been launched.
as a means of communication for customers to obtain basic information about BRI products and
services.
Page 23
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Sustainable Finance Action Plan
Description of Activities Explanation of Activities Achievements
Adaptation of ISO 26000 framework (7 Cores ISO 26000 is an international guidance standard for social responsibility that defines social Adaptation of the ISO 26000 framework has been implemented.
Subject) responsibility as the responsibility of an organization for the impact of its decisions and activities on
the society and the environment.
BRI Product Management App The BRI Product Management app is a tool designed to strengthen monitoring and optimize BRI Product Management has been implemented.
governance and productivity of BRI product performance.
Integrated Corporate Solution Platform Qlola is the main portal that combines all corporate segment applications including those that are Feature development on the QLola platform in 2023,including:
(Qlola) useful for corporate segment customers. 1. Improved customer advanced financial dashboard feature
2. Improved loan management limit feature
3. Development of PARI Corporate ecosystem integration
4. Development of Integrated Supply Chain Management Reports and Notifications
5. Enhancement for BG Monitoring feature
6. Development of Qlola ID
7. Integration to Qlola Cash Management
8. Qlola for overseas branches
23
Strengthening BRI Group's ESG Governance Improving ESG Governance in the BRI Group through ESG Framework recommendations that can be Bank Raya's ESG Governance Framework is available (Bank Raya Letter Number B.143/ERM/EPM/09/2023
applied to subsidiaries. dated September 25, 2023).
Integrated AML CFT Database (Watchlist) Tools that contain an AML CFT watchlist database that can be used as a means of screening Integrated AML CFT Database::
prospective customers, Walk in Customer (WIC) customers, and beneficial owners in account opening 1. Development for utilization of watchlist database on custodian platform
and customer transactions. This tool can be used by BRI and its subsidiaries. 2. Development for utilization of the watchlist database on the Bank Raya account opening platform.
3. Development in utilizing the Watchlist Database on the SenyuM platform
4. UAT Microservice International Watchlist passed
Data Security Initiatives Taking steps to increase data security to prevent data leaks at BRI, including implementing Data Loss 1. The procurement process is underway to procure data masking and tokenization components.
Prevention (DLP) and limiting BRI data access. 2. The procurement process with the PLO Division is underway for the data destruction component
Challenges and Opportunities in Sustainable Finance Initiatives [E.5] [2-12] [2-16]
In implementing sustainable finance, there can be both internal and external challenges. To respond to internal challenges, BRI continues to increase consistent and structured trainings on various sustainability topics. The trainings have been carried out at
various levels, including head office, regional offices, branch offices and other work units.
Meanwhile, external challenges involve various aspects, including regulations related to sustainable finance that can affect the market. Advances in digitalization technology are also a demand for the banking sector. Meanwhile, the limited guidance and clear
information on each industry related to sustainable finance is also one of the challenges faced. In responding to external challenges, BRI implements risk management and identifies potential risks from these external factors. [FS6]
Page 24
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Business and ESG Highlights
Economic Aspect [B.1]
Economic Performance [2-6] [3-3] [201-2] [201-4] [C.6] Share Performance
BRI Share Performance vs JCI since IPO
Market Capitalization
As a public company, BRI demonstrates clarity and openness when presenting its financial and non-financial conditions
867.7 Trillion
BBRI 6.635%
to the public, compiling the necessary reports to be submitted to regulators, in accordance with applicable regulations. JCI
Information regarding these financial and non-financial conditions, including a comparison between targets and Rp
achievements, financing targets, and company investments, are fully available through BRI's 2023 Annual Report [3-3] [201-2]
[201-4] 2023
Throughout 2023, BRI optimized office network management by opening, merging, and altering the status of office
networks, thereby amending the number of BRI operational work units from 8,209 in 2022 to 7,755 in 2023. This decision Growth of Share Price 1.060%
24
15.9%
was taken following consideration of the dynamics of internal and external factors that are relevant to the Company's
business. Additionally, no significant changes affected BRI's business and operations [2-6] [C.6]
year-on-year
In 2023, BRI still receives a 3% tax rate reduction incentive from the Indonesian Government in accordance with the
2023
provisions of Law No. 2 of 2020, and there is no recorded income derived from opportunities or financial impacts due to
climate change. [3-3] [201-2] [201-4]
Benefit Distribution
43.5 10.81
Bank’s Financial Performance Dividend Tax Payment
Payment Rp Trillion Rp Trillion
*consists of Corporate Income Tax
85% of 2022 net profit
2023 2023
189.65
paid to the Government
Operating
Income Rp Trillion
Sustainable Financing Activities Sustainable Funding Activities
* bank only figure
2023
Sustainable Lending ESG-based Corporate ESG-based Wholesale
Bond Investment Funding
Profit before tax
Rp 67.07 Trillion
Net Profit
Rp 53.15 Trillion
Rp 772.74 Trillion 4.54
Rp 39.60 Trillion
Rp Trillion
2023 2023 2023
* bank only figure
* bank only figure
2023 2023
Page 25
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Business and ESG Highlights
Governance Aspect [B.3] Social Aspect [B.3] [F.28] [F.30] Environmental Aspect [B.2]
Financial Inclusion
y Joined the United Nations Global Compact
Banking Account Ownership
73.00% 73.10%
The use of financial products & services and BPJS' health insurance ownership
87.30% 88.20% 89.10%
Scope 1 Emission
(ton CO2e) 130,529
67.30% 70.20% 67.80% 84.80%
61.20%
84.00%
79.40% 2023
y Became the first financial institution in Indonesia to
submit a commitment letter to SBTi
355,742
2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023
Scope 2 Emission
Total Rural Urban Total Rural Urban
(ton CO2e)
y Based on research by BRI Research Institute (BRIRINS) in 2023
y BPJS (Social Health Insurance Administration Body) is a government agency authorized and established to administer the social health insurance program for the 2023
y Top 3 Public Listed Companies in Indonesia and Indonesian population.
the ASEAN Asset Class within the ASEAN Corporate
25 Governance Scorecard (ACGS). Number of lending customers in Number of savings customers in
10,434,550
Customer Satisfaction Scope 3 Emission
y the micro and ultra micro segments micro and ultra micro segments -financed emissions
(including Pegadaian and PNM) (including Pegadaian and PNM) Rate
(ton CO2e)
51.66 million 163.76 million 84.66%
2023
y Corporate Governance Perception Index
2023 2023 2023
y The total waste recycled is 591,203 kg, which is
95.21
equivalent to avoiding 441,817 kg of CO2e emissions.
Resolution of Customer Employee Engagement Employee Turnover Rate
Complaint Rate (on a scale of 4) y BRI Menanam has distributed 904,196 tree seedlings
and reached 2,593 villages spread throughout
99.56% 3.49 1.01%
2023
Indonesia with a carbon absorption potential of
The score improved from that 780,606 kg of CO2e.
of the previous year in the Most 2023 2023 2023 y Within the framework of the Green Network
Trusted category.
initiative, BRI operates 150 electric motorcycles and
118 electric vehicles.
CSR Program - Social Return on Investment (SROI) y Mobil Penunjang Sekolah Luar Biasa (Special School
Value Education Support Bus): 2.97 y Solar panels are installed in 93 work units.
y Bank Sampah Saguling (Saguling Waste Bank): 9.42 y Desa BRILiaN (BRILIaN Village): 2.82
y Ini Sekolahku (School Assistance): 9.43 y Lapak Pasar Manis (Manis Market Stall): 2.77
y Sortir Lemon (Lemon Sorting): 6.88 y Bersih-Bersih Kali (Cleaning the River): 2.52
y Rumah Produksi Jeruk (Orange Production House): 3.71
*) The SROI value is the return (in Rupiah) generated from every 1 rupiah of funds invested through the CSR program. BRI’s programs produce an impact above 1, meaning
they have a positive impact on the beneficiaries.
Page 26
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Beyond Profit: Creating a Shared Value and Contributing to SDGs through BRIVOLUTION 2.0
In recent years, there has been a global paradigm shift, where companies are no longer solely focused on financial growth but are also elevating the crucial mission Economic Value Creation: Driving Sustainability
of creating shared value for society and the environment. Recognizing its pivotal role as a financial institution in Indonesia with a primary focus on serving clients in through Innovative Products and Services
the micro, small, and medium-sized enterprise (MSME) segments, BRI has formulated a corporate strategy known as BRIVOLUTION 2.0. The overarching vision of
this strategy is to become "The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion”. BRI's efforts to create sustainable economic value are delivered through the
offering of innovative products and services that effectively address customer
The vision of BRIVOLUTION 2.0 implies two key aspects. Firstly, BRI remains committed to maintaining financial growth. This consistently delivers economic needs. BRI expands the definition of economic value creation, derived from
value to stakeholders, including the government and shareholders, as manifested in the vision of becoming "The Most Valuable Banking Group in Southeast Asia." various business activities, by considering their contribution to the SDGs. These
Secondly, through its business activities and operations, BRI also emphasizes creating a positive impact on the surrounding society and environment, as articulated activities include:
in the vision of being the "Champion of Financial Inclusion.” y Credit disbursement focusing on MSME activities and environmentally
conscious business endeavors.
BRI's efforts to create both economic and social value ultimately contribute to the achievement of its Sustainable Development Goals (SDGs). [2-22] y Financing strategies emphasizing social and environmental aspects, such as
issuing Sustainability Bonds, Green Bonds, and Sustainability-Linked Loans.
y Savings products tailored to customer needs, such as BRI BritAma Savings
and BRI Simpedes Savings.
y Utilization of BRImo as a banking super app, facilitating customers to access
26 online banking services anytime and anywhere.
The Most Valuable Banking Group in y BRILink agents, a banking service that collaborates with customers to reach
Champion of Financial Inclusion
Southeast Asia communities and provide access to financial services.
Economic Value Creation Social Value Creation These activities, beyond being sources of revenue and economic value creation
for BRI, contribute to the achievement of the Sustainable Development Goals.
Driving Sustainability through Innovative Empowering the People & Nurturing the Planet
Products & Services
SDG's Linked-Revenue Sustainable Lending Financial Inclusion & Relationship with
Literacy Communities
Human Capital Management & Emissions Management
Direct Economy Contribution Sustainable Funding
Human Rights and Climate Change
Maintaining Good Corporate Governance
Responsible Governance Data Security and Privacy
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Beyond Profit: Creating a Shared Value and Contributing to SDGs through BRIVOLUTION 2.0
Sustainable Financing Activities in 2023 SDGs Linked-revenue in 2023
MSME Rp690.43 T 11.81%
Management of Biological 48.99% Goal 8
Decent Work and Economic Growth Goal 2
Natural Resources and
Sustainable Land Use
Rp52.82 T Zero Hunger
Environmentally Friendly
Transportation
Rp11.24 T No Proverty Goal 1 1.68%
Eco-efficient Products Rp7.50 T Sustainable cities and Communities Goal 11 1.49%
Industry, Innovation, and Infrastructure Goal 9 1.11%
Renewable Energy Rp6.02 T
Life Below Water Goal 14 0.75%
ESG-based Bond Investment Rp4.54 T Good Health and Well-being Goal 3 0.37%
Environmentally
Friendly Buildings Rp2.04 T Affordable and Clean Energy Goal 7 0.36%
Other Environmentally
Responsible Consumption and Production Goal 12 0.20%
Friendly Business Activities Rp1.93 T
Quality Education Goal 4 0.06%
Pollution Prevention & Control Rp0.55 T Reduced Inequalities Goal 10 0.05%
Conservation of Terrestrial and
Aquatic Biodiversity Rp0.23 T Life on land Goal 12 0.01%
27 Sustainable Water and Partnerships For The Goals Goal 17 0.00002%
Wastewater Management Rp0.003 T
Total SDGs Linked-revenue
Total Sustainable (Based on Interest income dan Fee based income) 66.92%
Financing Rp 777.28 Trillion (67.11% of BRI's Total
Activities Credit and Corporate Bond Investment Portfolio)
Direct Economic Contribution in 2023
Rp 22.23 Trillion
ESG-based Wholesale Funding in 2023 Rp 34.04 Trillion Dividend Payment
Direct Contribution to the Government
Rp 10.81 Trillion
Sustainabillity Linked Loan Rp12.32 T of Indonesia in the form of Dividend and
Tax Payment in 2023
Tax payment
Green Bond Rp8.50 T
Sustainabillity Bond Rp7.70 T
In the fiscal year 2023, BRI contributed to the government in the form of tax payments and dividends totalling Rp34.04
Inclusivity-based Bond Rp5.61 T trillion. By fulfilling its fiscal obligations, BRI actively participated in strengthening the country's financial foundation,
ESG-based Repo Rp5.45 T ultimately contributing to sustainable economic growth and stability. This financial contribution continues to serve as
evidence of BRI's commitment to being a responsible corporate citizen and a key partner to the government in advancing
Indonesia's economy.
ESG-based
Wholesale Rp 39.60 Trillion (57.93% of Total Wholesale Funding) Overall, BRI's contribution to creating economic value has the most significant impact on Sustainable Development Goals
Funding
8 (Decent Work and Economic Growth). This contribution aligns with the achievements of Indonesia's SDGs. One indicator
of SDG 8 achievement is the number of adults with bank and other financial institution accounts. Thus far, Indonesia's
progress has been assessed as showing moderate improvement (the report can be accessed at https://dashboards.
sdgindex.org/profiles/indonesia).
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Beyond Profit: Creating a Shared Value and Contributing to SDGs through BRIVOLUTION 2.0
Social Value Creation: Empowering The People and Nurturing the Planet
As stated in BRIVOLUTION 2.0, the creation of social value is one of BRI's significant objectives toward achieving the Relationship with Communities Pillar
vision of becoming the "Champion of Financial Inclusion." In the pursuit of creating social value, BRI adheres to four pillars,
comprising Financial Inclusion and Financial Literacy, Community Relations, Human Resource Management and Human Recognizing its responsibility, BRI acknowledges the obligation to positively impact the surrounding community through
Rights Fulfilment, as well as Greenhouse Gas Emission Management and Climate Change Management. collaborations with customers, adopted villages, and various communities. Building strong relationships can enhance
community well-being, aligning with the spirit of the SDGs.
Financial Inclusion and Literacy Pillar
All initiatives related to community relationships are detailed in the section "Communities Around Us”.
Strengthening its commitment to enhancing financial inclusion and financial literacy, BRI actively provides banking
products and services that reach all segments of society. Program Contribution SDGs Alignment
BRI Peduli TJSL Program Social Pillar: Contribution to local communities
Comprehensive information regarding financial inclusion and literacy can be found in the section "Communities Around - Ini Sekolahku worth:
Us”. - Fellowship Journalist Scholarship Rp236 billion
- BRI Peduli: Appreciation of Scholarship
28 Education Funds for Achievement Children
Program Impact SDGs Alignment
- Disaster Emergency Response
Extensive banking accessibility 7,775 Branches - BRI Peduli: Empowerment of Women
686,128 E-Channels (ATM dan CRM) - BRI Bertani di Kota (BRInita)
740,818 BRILink Agents
BRI Peduli TJSL Program Economic Pillar: Contribution towards the
++31 Million BRImo Users
• BRI Peduli Desa BRILiaN - MSME Unggul enhancement of community
Crafting affordable lending, saving, and 36.9 million Micro & SME borrowers • Priority Cluster Development Assistance economic growth value as:
insurance products 173 million deposit accounts • Halal Certification and MSME Marketing Rp21 billion
32.3 million AMKKM insurance Digitalization Training
policies • Assistance for Farmer Group Facilities &
Infrastructure
Community empowerment programs with • BUMN Home Training
the aim to create economically independent
and sustainable rural areas and financial BRI Peduli TJSL Program Environmental Pillar: Contribution in caring for nature and
solutions for commodity ecosystems • Program Bersih-Bersih Kali (River Clean Up) the environment is worth:
• BRI Menanam: Grow & Green Rp342 billion
• Jaga Sungai Jaga Kehidupan (Protect the
River Protect Life)
Customer Financial Well-Being Protection y Responsible loan distribution • Assistance in Procurement of Waste Bank
y Fair Marketing Production Facilities and Infrastructure
y Digital Advisor • Coral Reef Transplant Assistance
BRI Menanam • Planting 904,196 tree seedlings
• Potential to absorb 780,606 kgCO2e
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Beyond Profit: Creating a Shared Value and Contributing to SDGs through BRIVolution 2.0
Human Capital Management and Human Rights Pillar Emission Management and Climate Change Pillar
In managing human resources, BRI prioritizes the fulfilment of Human Rights by fostering a work culture that promotes BRI actively manages greenhouse gas emissions and endeavours to address climate change as part of responsible and
mutual respect, and which is free from discrimination, exclusion, bullying, harassment, and various forms of violence, both environmentally conscious business practices.
mental and physical. This approach aims to create an inclusive, conducive, and productive work environment to drive the
Company's sustainability and uphold Human Rights. Detailed information is referenced in the section "Emission Management and Climate Change”.
References to initiatives under this pillar can be found in the section "Our Employees”. Program Contribution SDGs Alignment
Credit Distribution to the Total IDR 82.32 trillion
Environmentally Friendly Business Note: KUBL (Green Sector) distribution per
Program Contribution SDGs Alignment Activity Sector (KUBL) category can be seen on page 70.
y Female Representation y Encourage and accommodate the potential
y Equality of opportunity and rights of women in the Company
for all workers y Supporting the achievement of the Ministry
of State-Owned Enterprises' target, namely
fulfilling a composition of 25% women in
29 leadership positions
y The composition of female leaders is
23.08% Bond issuance that supports Green Bond
y Gender Pay Gap BRI: 2% vs Global average: sustainability 2022: IDR 5 trillion
17% 2023: IDR 6 trillion
y The number of disabled workers is 60
people, of which 25 are women. Sustainability Bond
Respectful Workplace Policy BRI is committed to providing a work 2023: IDR 7.7 trillion
environment that is respectful, free from Green Network 118 electric cars
discrimination, exclusion, harassment, bullying, 150 electric motorbikes
and various other forms of violence, and 93 branches with solar panel
upholds dignity and self-esteem to maintain 441,817 kg CO2e avoided through Zero Waste
productivity. to Landfill Program
Guarantee the Health and Safety Achieved a score of 94.26%, or "satisfactory" Implementation of TCFD TCFD Report: Governance, Strategy, Risk
of workers by implementing the criteria from PT Multi Certification Indonesia Management, Metrics & Targets
Occupational Health and Safety
Management System (SMK3)
Certification
Human Rights Assessment & Policy y PRISMA score of 103 (Good)
y HR commitment pact y 17.22% employee assessment of HR (12,870
y HR general policy of 74,735 employees)
y HR due diligence with PRISMA by y 16.73% vendors assessment of HR (42 of
Kemenkumham 251 vendors)
y HR assessment of employee and
partners.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
Beyond Profit: Creating a Shared Value and Contributing to SDGs through BRIVOLUTION 2.0
Maintaining Good Corporate Governance
Good Corporate Governance (GCG) plays a crucial role in promoting sustainable economic and social development in Data Security and Privacy
business operations. To ensure that the processes of creating economic and social values align with GCG principles, BRI
prioritizes the implementation of responsible corporate governance, as well as securing customer data privacy and ensuring BRI recognizes the importance of prioritizing customer data protection to maintain trust and comply with legal
cyber security. requirements. This involves implementing robust cybersecurity measures, ensuring secure storage and transmission of data,
and adhering to privacy regulations. By safeguarding customer information, BRI not only mitigates risks associated with data
Responsible Governance breaches, but also fulfils its commitment to respecting customer privacy rights.
As a manifestation of responsible governance, BRI incorporates ethical, transparent, and accountable practices at all levels
of the organization. This includes decision-making that considers the sustainability of the Company. BRI consistently
Program Contribution SDGs Alignment
maintains effective communication with external stakeholders, especially shareholders and the community, to foster trust
BRI Cybersecurity Framework (NIST) BRI has established a framework for managing
and confidence.
cybersecurity. The BRI Cybersecurity
Framework (NIST) is organized into an
Program Contribution SDGs Alignment Enterprise Security Architecture (ESA) based
30 on analysis and the current state of cyber
Sustainable Finance Action Plan With its sustainable finance action plan, BRI is threats.
2024-2029 committed to regulatory compliance. With a
thorough sustainable finance strategy, BRI has Data Loss Prevention (DLP) As a commitment to prevent data leakage at
strongly addressed social and climate change BRI, initiatives are being made to increase data
issues. security.
Becoming a signatory to United By joining the UN Global Compact, BRI has
Nations Global Compact (UNGC) strengthened its commitment to sustainable
finance and supporting the achievement of
SDGs.
Sustainability-linked Loan Sustainability-Linked Loans (SLLs) is a
financing product where the loan terms are
tied to the borrower’s achievements of pre-
defined sustainability performance targets
(through SPT and KPI).
By issuing SLLs, BRI takes the opportunity
to engage with customers in terms of
sustainability, achieving both BRI’s and the
customer’s sustainability goals.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESG Highlights Alignment with SDGs ESG Ratings & Recognitions
SDGs Story
Woman and Local Community Enhance Environmental and
Empowerment Health Conditions
615 people were involved in 11.27% average reduction in child
implementing the program, including stunting
women who are members of the PKK,
the Women's Farmers Group, and
IWABRI
49 total urban agriculture trainings
31
Crops and Derivative Products Social and Economic Benefit
BRInita is designed to address spatial constraints in urban areas by as a supporting entity. This collaboration aims to empower and 3.064 kg of vegetables and herbs 64 types of processed products from
promoting transformative urban farming practices through strategic enhance the role of women in improving urban life. harvested through hydroponic and urban farming
land utilization to create social, economic, and environmental benefits. conventional urban farming
In addition to focusing on urban farming, BRInita also provides 42 product certifications (NIB, PIRT,
This initiative targets densely populated and slum areas with the goal various social, economic, and sociological benefits by encouraging 348 kg of fish (lele and nila) and Halal Certification)
of improving environmental and health conditions, empowering productive activities during leisure time, strengthening community harvested through urban fishery
communities, and aspiring to transform these areas into centers for bonds, and promoting a culture of cooperation. This initiative Rp95 million total overall group
education and tourism. Support provided through BRInita includes the contributes to increased community income, conservation of land 3.982 kg of vegetative liquid income
provision of supporting facilities and infrastructure and training, as well as and water resources, improved air quality, a healthy microclimate, organic fertilizer and compost produced
comprehensive monitoring and mentoring. and the infusion of beauty and aesthetics into urban spaces.
90 kg of maggot (used as waste
decomposer and fish food) produced
BRInita has been implemented in 21 locations in Indonesia,
involving environmentally conscious individuals known as local heroes.
These local champions come from women's groups such as the Family
Welfare Empowerment (PKK) and Women Farmers Group (KWT). In its
implementation, BRInita collaborates with the Ikatan Wanita BRI (IWABRI)
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
About This Sustainability Report Message from the Board A Brief Look at BRI Our Sustainability Strategy Business and ESGHighlights Alignment with SDGs ESG Ratings & Recognitions
ESG Ratings & Recognitions
The sustainability parameter based on ESG is progressively becoming a significant factor in investment decision-making for investors, aligning with financial indicators. BRI remains steadfast in improving the implementation of ESG and evaluating its
performance by referencing analyses and ratings from reputable institutions.
PT Bank Rakyat Indonesia (Persero) Tbk
Banks
Sustainability ESG Rating
Yearbook Member 2024 High Risk
S&P Global ESG Score 2023
30.0
92nd Low Risk A A
63
Percentile
Rank
90th ESG Risk Rating
18.8
72nd 63 BBB
63
/100 20.9
ESG Medium Risk
32 Score 52 Position and Score are industry specific and reflect exclusion screening
criteria. Learn more at spglobal.com/esg/yearbook
2021 2022 2023 � 2 years in a row
2020 2021 2022 2021 2022 2023
� The first and only companies in Indonesia
CORPORATE GOVERNANCE ESG Sector Leaders IDX KEHATI Index
The ESG Leaders Index measures
PERCEPTION INDEX
the performance of companies
with favorable ESG assessments CGPI comprises stocks with ESG performance
assessments above the industry average.
and those not involved in
significant controversies.
OVERALL SCORE 95.21
IDX ESG Leaders
Increased from 95.18 in 2022
Top 3 Public Listed Companies
in Indonesia and the ASEAN Asset Class for
95.21 4 consecutive years. BRI has been included in the following 3 KEHATI Indices:
As of now, BRI is a constituent 95.18
95.10 9 SRI KEHATI
of the IDX ESG Leaders Index
9 ESG Quality 45 IDX KEHATI
(ESGL)
2021 2022 2023 9 ESG Sector Leaders IDX KEHATI
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
33
IN THIS SECTION
34
Corporate Governance
Governance: 50
Materiality and Stakeholder Engagement
Maintaining 56
Risk & Crisis Management
Good Corporate 60
Business Ethics
Governance 66
Information Security / Cybersecurity
69
Sustainable Finance
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Corporate Governance Policies And Principles
BRI continues to improve its performance of Good Corporate Governance (GCG) by regularly updating the Company’s
corporate governance policy. An improved GCG will ensure that, as the Company focuses on the business targets it wants
to achieve, it still ensures protection for all stakeholders, including shareholders, employees, customers, suppliers, and
the community at large. BRI believes that consistent implementation of GCG principles will ensure BRI continues to be a
company that grows in a sustainable manner and earns the trust of all stakeholders.
GCG principles implemented by BRI include transparency, accountability, responsibility, independence, and fairness. In
the principle of fairness, BRI is committed to displaying fair and equal behavior to stakeholders, in line with benefits and
contributions provided to the Company. [F.18]
BRI is committed to implementing GCG that positively impacts BRI’s performance and sustainability as its top priority. GCG
implementation has the following objectives: [E.3]
34 a. Supporting the achievement of the Company's vision and mission through significant performance;
b. Providing guidelines for all BRI personnel as they perform their duties and responsibilities in accordance with their
functions within the Company;
c. Providing confidence to shareholders and stakeholders that the Company is run and supervised professionally;
d. Supporting the establishment of policies and decisions taken by management based on the principles of Good
Corporate Governance; and
e. Developing good corporate citizens.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Governance Structure [2-9] [E.1]
BRI implements a two-tier governance structure in which the Board of Commissioners (non-executive directors) serves supervisory functions, while the Board of Directors (executive directors) handles management functions. As of December 31 2023, BRI's
Board of Commissioners has 10 members, 7 of which are Independent Commissioners. Meanwhile, BRI’s Board of Directors consists of 12 members.
BRI’s Governance Structure consists of:
a. The Main Organ, including the General Meeting of Shareholders (GMS), the Board of Commissioners, and the Board of Directors;
b. The Supporting Organ, which consists of Committees under the Board of Commissioners, Committees of the Board of Directors, and work units that support the implementation of GCG.
The following is the organizational structure of BRI:
General Meeting of
Shareholders
BOARD OF COMMISSIONERS
35
BOARD OF MANAGEMENT
PRESIDENT DIRECTOR
VICE PRESIDENT DIRECTOR
INSTITUTIONAL DIGITAL &
SMALL & MEDIUM CONSUMER NETWORK & RISK HUMAN
& WHOLESALE MICRO BUSINESS INFORMATION FINANCE COMPLIANCE
BUSINESS BUSINESS SERVICE MANAGEMENT CAPITAL
BUSINESS TECHNOLOGY
TREASURY CHANGE
HUMAN FIXED ASSETS
& GLOBAL COMMERCIAL ULTRA MICRO MANAGEMENT &
OPERATIONS CAPITAL MANAGEMENT & INTERNAL AUDIT
SERVICE BUSINESS BUSINESS TRANSFORMATION
STRATEGY PROCUREMENT
BUSINESS OFFICE
Directors SEVP
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
General Meeting of Shareholders
(RUPS)
BOARD OF COMMISSIONERS BOARD OF DIRECTORS
Check and Balances
Board of Commissioners Asset and Liability Committee
Audit Committee
Secretariat
Corporate Secretary
Nomination and Risk Management &
Remuneration Committee ESG Committee
Risk Management
36 Monitoring Committee
Lending Committee
Internal Audit Unit
Integrated Governance Capital & Investment Committee
Committee
Lending Policy Committee
Compliance Unit
Information Technology & Data
Governance Steering Committee
Goods and Services
Procurement Committee
Risk Management Unit
Human Capital Committee
Product Committee
External Auditor
Project Management Office
Steering Committee
The General Meeting of Shareholders (GMS) holds the highest authority in corporate governance, albeit not an executive position. The Board of Directors and Board of Commissioners of BRI perform their functions and roles with support from various
committees under their leadership. [2-10] [2-11] [2-15]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Committees under the Board of Commissioners
Committee Responsibility Committee Chair
Audit Committee Overseeing the process of continuous improvement of policies, procedures and practices at all levels within the Company to ensure that company management has been carried out properly Independent Commissioner
in terms of internal control, including the adequacy of the financial reporting process
Nomination and Remuneration Committee y Providing constructive suggestions and input on the management nomination system, and the procedures and talent selection of BRI and its subsidiaries; Independent Commissioner
y Giving input on the results of strategic human capital policy studies;
y Evaluating talent pool policies;
y Giving recommendations for approval of a subsidiary's management in accordance with their authority; and
y Other tasks conveyed in detail to each of the Board of Commissioners Committees.
Risk Management Monitoring Committee Conducting regular evaluation and analysis as to the adequacy of the Company's risk management policies and providing recommendations to the Board of Commissioners for improvements President Commissioner
to the risk management framework and its policies.
Integrated Governance Committee Evaluating and ensuring comprehensive and effective governance that applies the principles of transparency, accountability, responsibility, independence or professionalism, and fairness in an President Commissioner
integrated manner within the Financial Conglomerate.
Committees under the Board of Directors
37
Committee Responsibility Committee Chair
ESG and Risk Management Committee The Risk Management and ESG Committee has the following duties and responsibilities: President Director
y Determining risk management policies, including implementation of risk management policies, risk management strategies and contingency plans if irregular external conditions occur;
y Determining the risk measurement methodology;
y Setting limits and making changes to risk management policies; and
y Determining the value of the risk profile and health level of the bank, including follow-ups if necessary.
The Risk Management and ESG Committee for Integrated Risk Management has the following duties and responsibilities:
y Establishing integrated risk management policies and their changes;
y Determining corrective steps based on the results of the evaluation of the implementation of integrated risk management in the forms of::
a. Integrated risk profile report
b. Report on individual risk profiles of subsidiaries that are members of the BRI financial conglomerate
c. Integrated capital analysis
d. Integrated and/or individual stress testing simulations and contingency plans
The Risk Management and ESG Committee in the ESG Field has the following tasks and responsibilities:
y Conducting a review and evaluation related to the implementation of policies or governance initiatives for ESG parameters and CSR initiatives prepared by the relevant Work Unit, which
are then proposed by the Supporting Committee Team.
y Establishing and recommending work programs (both existing and new) to be categorized as ESG initiatives and CSR initiatives according to existing parameters to the ESG Committee or
through circular approval.
y Reviewing and evaluating the implementation of work programs that fall within the parameters of ESG initiatives and CSR initiatives, including reporting data and information related to
ESG.
y Reviewing ESG Rating reports, Investor concerns, or other Third Parties regarding BRI's ESG and CSR performance and implementation.
y Recommending material issues obtained from the review of ESG Rating reports, Investor concerns, or other Third Parties regarding BRI's ESG and CSR performance and implementation.
y Establishing a follow-up plan based on the results of the review and evaluation, which can then be proposed as a new work program to be further addressed by the relevant Work Unit.
y Providing up-to-date information to the Board of Directors and Board of Commissioners regarding all evolving issues related to ESG and CSR, including legal regulations, global initiatives,
business practices, and other important information related to ESG and CSR.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Committee Responsibility Committee Chair
Lending Policy Committee Assisting the Board of Directors in formulating BRI lending policies and giving suggestions for improvements to lending policies. President Director
Lending Committee Evaluating and/or deciding on lending applications for certain amounts and/or types of credit determined by the Board of Directors. Each lending committee consists of risk
functions and business functions. The
structure and members of these lending
committees are in accordance with the
applicable delegation of credit authority
Asset and Liability Committee Developing and determining asset and liability policies as well as determining fund transfer price (FTP) rates. President Director
Information Technology & Data Governance y Giving direction and recommendations to the Board of Directors regarding planning, governance, development and operations of information technology; and Director of Digital Information Technology
Steering Committee y The Data Governance Committee is a forum that provides direction regarding corporate governance data, as well as providing decisions related to leading issues on data that cannot be & Operations
resolved at the data owner, data steward, or data management office level.
Human Capital Committee Establishing strategic and operational policies in the field of human capital and aiming to boost effectiveness, efficiency and transparency in decision making in human resource management President Director
and improving the quality of human resource management based on the principles of good corporate governance
38
Capital and Investment Committee Being responsible for corporate action and management of subsidiaries Finance Director
Goods and Services Procurement Committee Evaluating and providing decisions on requests for the results of a procurement with a certain value. The Procurement Committee (procure-
ment value > Rp100 billion) is chaired by
the Deputy Main Director
The Procurement Committee
(procurement value > Rp7.5 billion Rp100
billion) is chaired by SEVP Fixed Asset
Management and Procurement
Product Committee y Making decisions on proposals for developing new products/services or developing products/services that are already underway outside the authority of the Director/SEVP for Product Product Committee 1: Chaired by the
Ownership. Deputy President Director
y Making decisions regarding the termination of products/services that are already running outside the authority of the Director/SEVP for Product Ownership.
y Making decisions on bundling products and/or services outside the authority of Director/SEVP for Product Ownership. Product Committee 2 segments: Chaired
y Giving input and recommendations to the Board of Directors regarding product and/or service development strategies. by the Finance Director
Project Management Office Committee Conducting studies and establishing rules, monitoring project stages from planning, implementation, to evaluation of strategic project management based on certain criteria, as well as provid- President Director/Vice President Director
ing support to the processes, systems and human resources that carry out the strategic projects in question.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Composition of the Board of Commissioners
Name Kartika Wirjoatmodjo Rofikoh Rokhim Heri Sunaryadi Rabin Indrajad Hattari Paripurna Poerwoko Sugarda
Position President Commissioner Deputy President Commissioner/Independent Commissioner Independent Commissioner Commissioner Independent Commissioner
Tenure Start Date July 3, 2020 November 30, 2021 February 7, 2022 July 27, 2020 March 1, 2022
Experience y President Commissioner PT Bank Rakyat Indonesia y Deputy President Commissioner/Independent y President Director of PT Bank Rakyat Indonesia y Commissioner of PT Bank Rakyat Indonesia (Persero) y Independent Commissioner PT. Bank Rakyat Indonesia
(Persero) Tbk (2020 - present) Commissioner PT Bank Rakyat Indonesia (Persero) (Persero) Tbk (2021 – present) Tbk (February 2020-present) (Persero) Tbk. (2022-present)
y Deputy Minister of State-Owned Enterprises (2019 Tbk (2021 present) y Board of Commissioners of PT Merdeka Copper Gold y Expert Staff for Industry Affairs at Ministry of SOE y Vice Chancellor for Cooperation and Alumni, Gadjah
present) y Independent Commissioner PT Bank Rakyat Indonesia Tbk (2018-2021) (January 2021 May 2023) Mada University (2014 present)
y President Commissioner of PT Bank Mandiri (Persero) (Persero) Tbk (2017-2021) y Board of Commissioners of PT Indonesian Central y Special Staff V Ministry of SOE (February 2020 January y Head of Asia Pacific Research Center, UGM (2020
Tbk (2019-2020) y Professor of Banking & Finance, Faculty of Economics Securities Depository (2016-2018) 2021) present)
and Business, University of Indonesia (2006-present)
y President Commissioner of PT Hotel Indonesia Natour
39 (Persero) (2015-2017)
Expertise Banking, Finance, Risk Management Finance, Economics, Management Capital Market, Technology, Management Economics, Statistics, Management Law, Social Politics, Management
Gender Male Female Male Male Male
Name Hendrikus Ivo Nurmaria Sarosa Dwi Ria Latifa Awan Nurmawan Nuh Agus Riswanto
Position Independent Commissioner Independent Commissioner Independent Commissioner Commissioner Independent Commissioner
Tenure Start Date August 29, 2019 March 1, 2022 January 20, 2021 March 13, 2023 March 1, 2022
Experience y Independent Commissioner PT Bank Rakyat Indonesia y Independent Commissioner of PT Bank Rakyat y Independent Commissioner PT Bank Rakyat Indonesia y Inspector General, Ministry of Finance (2021-present) y Independent Commissioner PT Bank Rakyat Indonesia
(Persero) Tbk (2019-present) Indonesia (Persero) Tbk (2022-present) (Persero) Tbk (2020-present) y Expert Staff for Tax Regulations and Law Enforcement (Persero) Tbk (2022-present)
y Senior Advisor to the Chairperson of the Board of y Executive Director of PT Selaras Logistik Indonesia y Member of House of Representatives of the Republic (2016 2021) y Expert Staff to the Attorney General of the Republic
Commissioners of the Financial Services Authority (2021) of Indonesia (2014-2019) y Head of Regional Office of the Directorate General of of Indonesia for Intelligence, the Office of the Attorney
(OJK) (2018) y Director of Finance and Corporate Affairs, PT Cardig y Chairperson of Dharma Female Association (DWP) at Taxes, Central Java I (2016) General of the Republic of Indonesia (2018-present)
y Deputy Commissioner for Investigation, Organization Express Nusantara (2020-2021) the Indonesian Embassy in Cairo (2016-present y Director of Intel Cryptography and Production, the
and Human Resources of the Financial Services Office of the Attorney General of the Republic of
Authority (OJK) (2017) Indonesia (2015-2018)
Expertise Banking, Law, Audit ESG, Logistics, Management Law, Social Politics, Regulation Audit, Accounting, Taxation Law, Regulation, Intelligent
Gender Male Female Female Male Male
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Corporate Governance
Composition of the Board of Directors
Name Sunarso Catur Budi Harto Supari Amam Sukriyanto Handayani Agus Winardono
Position President Director Deputy President Director Director of Micro Business Director of Small and Medium Businesses Director of Consumer Business Director of Human Capital
Tenure Start Date December 20, 2019 December 20, 2019 December 4, 2018 April 14, 2021 March 14, 2018 April 14, 2021
Experience y President Director of PT Bank Rakyat y Deputy President Director PT Bank Rakyat y Director of PT Bank Rakyat Indonesia y Director PT Bank Rakyat Indonesia (Persero) y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia
Indonesia (Persero) Tbk (2019 – present) Indonesia (Persero) Tbk (2019-present) (Persero) Tbk (2018-present) Tbk (2021-present) (Persero) Tbk (2017-present) (Persero) Tbk (2021 – present)
y Deputy President Director of PT Bank y Director of Small Business and Networks y BRI Transformation SEVP (2017-2018) y SEVP Fixed Assets Management & y Director of PT Bank Tabungan Negara y President Director PT Prima Karya Sarana
Rakyat Indonesia (Persero) Tbk (January of PT Bank Negara Indonesia, Tbk (Persero) y BRI Network Management SEVP (2017) Procurement of PT Bank Rakyat Indonesia (Persero) Tbk (2016-2017) Sejahtera (2020-2021)
2019 – September 2019) 2017-2019) (Persero) Tbk (2020-2021) y Commercial Director of PT Garuda y Head of Internal Audit Jakarta Regional
y President Director of PT Pegadaian y Director of PT Bank Tabungan Negara y Executive Vice President Corporate Indonesia Tbk (2014-2016) Office 2 PT Bank Rakyat Indonesia (Persero)
(Persero) (October 2017 – January 2019) (Persero) Tbk (2016-2017) Secretary of PT Bank Rakyat Indonesia Tbk (2020)
(Persero) Tbk (2020)
40
Expertise Wholesale Banking, Corporate Banking, Consumer Banking, Wholesale Banking, Risk Micro Banking, Risk Management, Retail Banking, International Business Consumer Banking, Wholesale Banking, Risk Human Capital, Risk Management,
Micro Banking, Risk Management, Business Management, Management Management Banking, Risk Management, Advanced Master Management, Management Economics, Financial management
Administration, Management of Business Administration
Gender Male Male Female Male
Male Male
Name Viviana Dyah Ayu Retno K. Andrijanto Agus Sudiarto Agus Noorsanto Arga M. Nugraha Ahmad Solichin Lutfiyanto
Position Finance Director Director of Network and Services Director of Risk Management Director of Wholesale and Institutional Business Director of Digital and Information Technology Director of Compliance
Tenure Start Date April 14, 2021 June 22, 2022 December 20, 2019 December 20, 2019 April 14, 2021 April 1, 2021
Experience y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia y Director of PT Bank Rakyat Indonesia
(Persero) Tbk (2021 – present) (Persero) Tbk (2022 – present) (Persero) Tbk (2019 – present) (Persero) Tbk (2019-present) (Persero) Tbk (2021 – present) (Persero) Tbk (2018 – present)
y Executive Vice President of Subsidiary y Head of Planning, Budgeting & Performance y Senior Executive Vice President Special y President Director of PT Bank Rakyat y Executive Vice President BRILink Network y Head of Human Capital Policy and
Management of PT Bank Rakyat Indonesia Management Division of PT Bank Rakyat Asset Management of PT Bank Mandiri Indonesia Agroniaga, Tbk (2017-2019) Division of PT Bank Rakyat Indonesia Development Division PT Bank Rakyat
(Persero) Tbk (2019-2021) Indonesia (Persero) Tbk (2021-2022) (Persero) Tbk y Senior Executive Vice President Network (Persero) Tbk (2020-2021) Indonesia (Persero) Tbk (2017-2018)
y Vice President of Desk Subsidiary y Head of Corporate Development & Strategy y President Director of Bank Syariah Mandiri and Services of PT Bank Rakyat Indonesia y Deputy Head of E-Banking Division, y Head of Transaction Banking Division of
Management of PT Bank Rakyat Indonesia Division of PT Bank Rakyat Indonesia (2014-2017) (Persero) Tbk (2016-2017) Retail Payment Division, PT Bank Rakyat PT Bank Rakyat Indonesia (Persero) Tbk
(Persero) Tbk (2018-2019) (Persero) Tbk (2019-2021) Indonesia (Persero) Tbk (2018-2020) (2016-2017)
Expertise Risk Management, Finance & Strategic Finance, Risk Management, Accounting Risk Management, Sharia Banking, Corporate Wholesale Banking, Corporate Banking, Risk IT & Digital Banking, Risk Management, Risk Management, Governance, Risk
Banking, Management, Law Management, Management, Accounting Management Management and Compliance (GRC),
Wholesale Banking, Management
Gender Female Male Male Male Male Male
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
The Effectiveness of the Board of Commissioners and
Directors
Nomination Process for the Board of Commissioners and Directors [2-10]
The appointment of the Board of Commissioners and Directors takes place at the Annual General Meeting of Shareholders In the implementation of sound business practices and in adherence to the principles of GCG and prudence within the
(AGMS). After being appointed for a period of 5 years, members of the Board of Commissioners and Directors may be environment of PT Bank Rakyat Indonesia (Persero) Tbk, the Board of Commissioners has established the Nomination
reappointed for one further term of office for a maximum of 5 years. Policy for members of the Board of Commissioners and Directors through Decree NOKEP:07-KOM/BRI/07/2015, dated July
28, 2015. In general, the Nomination Policy for the Board of Commissioners and Directors includes the following:
The procedure for selecting prospective members of the Board of Commissioners and/or the Board of Directors is regulated
as follows: 1. The Board of Commissioners is authorized to propose candidates for members of the Board of Directors and/or the
Board of Commissioners of the Bank.
The Board of Directors presented the KNR conducted administrative 2. For candidates for the Board of Directors, the Nomination process is conducted for potential candidates from within the
The Nomination and Remuneration Top Talent list based on BRI's Talent screening and selection/interviews for
Committee (KNR) requested the Management System, the results of Bank, namely:
the proposed Executive Candidate
Board of Directors, through a letter, an assessment by an independent a. Directors whose terms are ending but are eligible for reappointment as Directors;
to provide a list of BRI's Top Talents institution, and the outcomes of the BRI
Talent Committee meeting b. Officials one level below the Board of Directors or officials with outstanding achievements;
c. Directors of subsidiaries or joint ventures.
Based on the selection and
The Board of Commissioners The Board of Commissioners held a
meeting results, KNR submitted 3. For candidates for the Board of Commissioners, the Nomination process is conducted for potential candidates from
41 presented the list of Candidates to the meeting to determine the candidates
recommendations for Prospective among the members of the Board of Commissioners whose terms are ending but are eligible for reappointment as
Series A Dwiwarna Shareholders and/ to be proposed to the Series A
Executive Candidates to the Board of
or Cluster Talent Committee Dwiwarna Shareholders and/or Cluster members of the Board of Commissioners.
Commissioners
Talent Committee
4. For potential candidates for the Board of Directors and/or Commissioners, other than officials one level below the Board
of Directors and Directors of subsidiaries, the Nomination process is conducted collectively in a Team formed by the
KBUMN proposed candidates in the
Determination of executive Assessment of the competence and
General Meeting of Shareholders
candidates in the General Meeting of suitability of executives
Series A Dwiwarna Shareholders, simultaneously determining potential candidates for the Board of Directors and/or the
through the authority of Series A
Dwiwarna Shareholders
Shareholders Board of Commissioners to be proposed to the General Meeting of Shareholders.
5. In the Nomination process, the Committee is represented by the Committee Chair, and if the Committee Chair is unable
to attend, they are replaced by one of the Committee members from the Independent Commissioners.
6. This decision also authorizes the Committee Chair or Independent Commissioner to:
Determination of the effective date as corporate executives
y Represent the Committee as a member of the Evaluation Team formed by the Series A Dwiwarna Shareholders.
y Provide recommendations for candidates for the Board of Directors and/or the Board of Commissioners, considering
the fulfillment of integrity, competence, and financial reputation requirements for the candidates.
7. The Committee Chair or Independent Commissioner representing the Committee must avoid conflicts of interest and
must maintain their independence.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
The Effectiveness of the Board of Commissioners and
Directors
Board of Commissioners and Directors Meeting Attendance Diversity in the Board of Commissioners and Directors
A. Board of Commissioners Meeting The diversity policy on the composition of BRI's Board of Commissioners and Board of Directors is in accordance with the
Circular of the Financial Service Authority Number 32/SEOJK.04/2015 concerning Public Company Governance Guidelines.
The Board of Commissioners' meeting is regulated by the Guidelines and Rules of the Board of Commissioners. The Board of The appointment of the Board of Commissioners and the Board Directors is carried out taking into account age, gender,
Commissioners' meeting consists of the Internal Board of Commissioners Meeting and the Joint Board of Commissioners and education, experience, integrity, dedication, understanding of company management issues, knowledge and/or expertise in
Directors Meeting. The Board of Commissioners' meeting must be held regularly at least once a month. The joint meeting the required field and time available in which to carry out their duties and requirements and
with the Board of Directors must be held regularly at least once every four months. Meetings can be held at any time according to laws and regulations.
upon the request of one or more Members of the Board of Commissioners or upon the request of the Board of Directors,
specifying the matters to be discussed. The meeting is valid and has the right to make binding decisions if attended or Female leadership has reached: [2-10]
represented by more than half of the total number of Board of Commissioners members. Based on the meeting attendance
summary, the average attendance of the Board of Commissioners in Board of Commissioners' meetings is 95%.
B. Board of Directors Meeting
30% (3/10 members)
42
on the Board of Commissioners
The policy for the Board of Directors' meetings has been regulated in the Guidelines for the Working Procedures of the Board
of Directors. The Board of Directors is required to hold regular meetings at least once a month. In addition to the Board of
Directors' meetings, together with the Board of Commissioners, the Board of Directors must hold joint meetings at least once
every four months. The Board of Directors' meeting is led by the President Director. If the President Director is not present
17% (2/12 members)
on the Board of Directors.
or unable to attend, then the Vice President Director leads the Board of Directors' meeting. The meeting is valid and has the
right to make binding decisions if attended and/or represented by more than two-thirds of the total number of all members
of the Board of Directors and/or Board of Commissioners of BRI. Based on the attendance summary, the average attendance
of the Board of Directors in the Board of Directors' meeting is 94.93%.
Further information regarding the attendance of the Board of Commissioners and Directors meetings can be found in the BRI
2023 Annual Report.
Board of Commissioners Mandate
Dual positions held by members of the BRI Board of Commissioners refers to the provisions of the Financial Services
Authority Regulation Number 17 of 2023 regarding the Implementation of Governance for Commercial Banks, namely not
holding concurrent positions as members of the Board of Directors, members of the Board of Commissioners or Executive
Officers at:
1. Financial institutions or financial companies, both banks and non-banks.
2. More than 1 (one) non-financial institution or non-financial company, either operating at home or abroad.
All members of the BRI Board of Commissioners hold fewer than 4 mandates.
Page 43
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
The Effectiveness of the Board of Commissioners and
Directors
Board of Commissioners and Directors Expertise
Each member of BRI's Board of Commissioners and Directors has a unique background of experience, education and expertise that helps them carry out decision making efficiently. In addition, BRI continues to improve the competence and skills of each
member of the Board of Commissioners and Directors through various education and training programs, including 24 Executive Education Programs at various top global business schools during 2023. [E.2] [F.22] [FS4]
Board of Commissioners Skills Matrix Board of Directors Skills Matrix
Skills Kartika Rofikoh Rokhim Rabin Indrajad Hendrikus Ivo Dwi Ria Latifa Heri Paripurna Agus Nurmaria Awan Skills Sunarso Catur Budi Supari Amam Handayani Agus Viviana Dyah Andrijanto Agus Agus Arga M. Ahmad
Wirjoatmodjo Hattari Sunaryadi Poerwoko Riswanto Sarosa Nurmawan Harto Sukriyanto Winardono Ayu Retno K. Sudiarto Noorsanto Nugraha Solichin
Sugarda Nuh Lutfiyanto
Banking Wholesale
Banking
Finance
Corporate
Banking
Risk
Management Micro Banking
Economy
43 Consumer
Banking
Statistics
Retail Banking
Law
International
Business
Auditing Banking
Social Politics IT & Digital
Banking
Regulations Sharia Banking
Capital Market Risk
Management
Technology
Governance,
Risk
Intelligence Management,
and
Compliance
ESG
(GRC)
Logistics Human
Capital
Accounting Business
Administration
Taxation
Accounting
Management
Page 44
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
The Effectiveness of the Board of Commissioners and
Directors
Board of Directors Skills Matrix
Skills Sunarso Catur Budi Supari Amam Handayani Agus Viviana Dyah Andrijanto Agus Agus Arga M. Ahmad
Harto Sukriyanto Winardono Ayu Retno K. Sudiarto Noorsanto Nugraha Solichin
Lutfiyanto
Management
Law
Finance
Economy
Financial
Management
44 Advanced
Master of
Business
Administration
Finance &
Strategic
Page 45
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
The Effectiveness of the Board of Commissioners and
Directors
Independence of the Board of Commissioners
To ensure that each member of the Board of Commissioners can carry out their duties objectively without influence of Information regarding conflicts of interest, including cross-board membership, joint ownership with suppliers and other
personal interests or other parties, BRI operates a policy regarding criteria for Independent Commissioners in which at interested parties, controlling shareholders, as well as relationships, transactions, and balances with involved parties, is
least 50% (fifty percent) of the total members of the Board Commissioners are Independent Commissioners. The criteria disclosed in detail in the 2023 BRI Annual Report. [2-15]
referred to are also in line with the provisions of the Financial Service Authority (OJK) Number 33/POJK.04/2014 on the
Board of Directors and the Board of Commissioners of Issuers or Public Companies, as follows:
Association Membership
1. They have not worked or had the authority and responsibility to plan, lead, control or supervise the Company's activities
in the last 6 (six) months, except for re-election as an Independent Commissioner of the Company in the following BRI actively engages with several organizations and associations related to its core business to stay informed about
period. business environment developments, broaden its network, and reinforce BRI's contribution, synergy, and presence in
2. They do not own shares directly or indirectly in the Company. creating a sustainable business climate. Membership in various organizations is a strategic initiative for BRI in conducting
3. They have no affiliation with the Company, members of the Board of Commissioners, members of the Board of banking activities, with careful consideration of Environmental, Social, and Governance (ESG) aspects. However, it is
Directors, or are not significant shareholders of the Company. important to note that BRI does not provide financial contributions beyond routine membership fees. As of the end of 2023,
4. They have no business relationships, directly or indirectly related to the Company's business activities. BRI is formally affiliated with the following associations: [GRI 2-28] [C.5]
45
Meanwhile, those included in affiliated parties in accordance with Law Number 4 of 2023 on Development and No Association Name Objective Role
Strengthening of the Financial Sector are:
1. The Association of State-Owned Developing the Indonesian capital market as an industry capable of Chairperson
Banks (HIMBARA) supporting the national economy
1. Commissioners, Directors, officers, and employees of the bank
2. The Association of Indonesian Formulating policies related to banking Deputy Secretary
2. Those who provide services to the bank, including public accountants, appraisers, legal consultants and other Banks (Perbanas) General
consultants
3. Forum for the Agricultural Serving as a means of exchanging information on Bank Indonesia Treasurer
3. Those who control or are controlled by the bank, either directly or indirectly; and/or Commodities Council (FKDKP) provisions/regulations as well as international banking standards.
4. Those who, according to the assessment of the Financial Services Authority, participate in influencing the management
4. The Association of Indonesian Optimizing functions and professionalism in the implementation of Treasurer
of the bank, either directly or indirectly, including parties who are related by marriage or descent to the second degree, Payment System (ASPI) good corporate governance
both horizontally and vertically, with members of the board of commissioners or equivalent, members of the board of
5. Indonesian Sustainable Finance Supporting the implementation of sustainable finance in Indonesia Chairperson
directors or equivalent, or proxy, officer, or employee of the bank. Initiative (IKBI) as a form of climate change risk mitigation and seizing business
opportunities in the Indonesian economy that is resilient to
The criteria for Independent Commissioners refer to the prevailing laws, regulations and standards, including Law Number climate change, contributing to the achievement of Sustainable
Development Goals (SDGs).
8 of 1995 on the Indonesian Capital Market, which has been amended by Law Number 4 of 2023 on Development and
Strengthening of the Financial Sector; Regulation of the Minister of State-Owned Enterprises on Guidelines for Governance 6. Partnership for Carbon Establishing global collaboration between financial institutions in Member
Accounting Financials (PCAF) developing approaches to measure and disclose greenhouse gas
and Activities of Significant State-Owned Enterprises; Financial Services Authority Regulation Number 33/POJK.04/2014 emissions from loans and investments.
on the Board of Directors and Board of Commissioners of Public Company Issuers; Financial Services Authority Regulation
7. United Nations Global Compact Supporting contributions to SDGs through the ten universal Member
Number 17/2023 on Implementation of Governance for Commercial Banks; Financial Services Authority Circular Number (UNGC) principles of the United Nations Global Compact (UNGC).
13/SEOJK.03/2017 on Implementation of Good Corporate Governance for Commercial Banks; as well as other prevailing
national or international regulations and standards.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Performance Management And Compensation System Of The Board Of Commissioners And Directors
Performance Evaluation Of The Board Of Commissioners [2-18]
The Board of Commissioners prepares a work plan at the beginning of the year and carries out a self-assessment at least financial assessment parameters consist of achieving better competitiveness in terms of obtaining cheaper funds, financing
once a year based on work achievements, and the Key Performance Indicators (KPI) that have been determined that are leadership in innovative industries oriented towards financial inclusion, leadership in the IT banking sector, improving
subsequently reported at the annual GMS. corporate governance, expanding markets and increasing investment, and creating advanced and professional human
resources.
BRI’s Board of Commissioners assessment is carried out internally without involving third parties. This assessment refers to
several regulations, including. Those who assess the performance of the Board of Directors are the Board of Commissioners and shareholders, carried out
through the GMS mechanism. The assessment of the Board of Directors' Collegial KPIs has passed a review process by a
y Regulation of the Financial Service Authority Number: 17 of 2023 on the Implementation of Governance for public accounting firm.
Commercial Banks, Circular of the Financial Service Authority Number 13/SEOJK.03/2017 on Implementation of
Governance for Commercial Banks; Procedure for Implementing Directors' Performance Assessment:
y Regulation of the Financial Service Authority Number 21/POJK.04/2015 on Implementation of Public Company 1 2 3
Governance Guidelines, Circular of the Financial Service Authority Number 32/SEOJK.04/2015 on Corporate Governance
The Board of Directors collectively
Guideline for Public Company; and presents the proposed Key KPIs presented collectively by the The Board of Directors elaborates on
46 Performance Indicators (KPIs) to the Board of Directors are established the collectively determined KPIs to
y Regulation of the Financial Service Authority Number: 4/POJK.03/2016 on Implementation of Governance for General Meeting of Shareholders simultaneously with the submission of form individual KPIs for each Director.
Commercial Banks. (RUPS)/Minister. the Company's Work Plan and Budget.
Based on the results of the reviews and through self-assessment of performance of the Board of Commissioners and
6 5 4
Committees, all work plans that were determined at the beginning of 2023 were implemented 100% in accordance with
After the collectively established KPIs
the targets set. More information regarding evaluation of the Board of Commissioners can be found in the 2023 BRI Annual for the Directors are approved by the
Individual KPIs for the Directors
General Meeting of Shareholders/Minister The Board of Commissioners approves
Report. and the individually presented KPIs are are presented to the Board of
approved by the Board of Commissioners,
the individually presented KPIs for the
Commissioners for approval.
the Board of Directors signs the Annual Directors.
Management Contract, which includes both
the collectively established KPIs and the
individually set KPIs for the Directors.
Performance Evaluation of The Board Of Directors [2-19] [2-20] 7 8 9
The Annual Management Contract The Annual Management Contract,
including the individually set KPIs for The achievement of collectively
Assessment of the performance of the President Director and other Executive Directors is carried out regularly every year containing the collectively established established KPIs for the Directors is
KPIs that has been signed by the Board the Directors, is signed by the Directors
through Collegial KPIs that are in accordance with the Regulation of Minister of SOE Number PER-11/MBU/11/2020 on of Directors is also signed by the Board together with the President Director reported in periodic reports and the
and the Chairman of the Board of Annual Report.
Management Contracts and Annual Management Contracts for Board of Directors of State-Owned Enterprises. of Commissioners and the General
Commissioners.
Meeting of Shareholders/Minister.
The assessment of the performance of the President Director and other Executive Directors consists of financial and 10
non-financial assessment parameters. Financial assessment parameters include Pre-Provision Operating Profit (PPOP),
Return on Equity (ROE) Tier 1 Capital, Capital Adequacy Ratio (CAR), Loan at Risk (LaR), LaR Coverage, Cost of Credit, The calculation of the achievement of the Board of Directors' KPIs
operating expense and income ratio operational, total shareholder return, and market capitalization. Meanwhile, non- collectively and individually is reviewed by the independent party, the Public
Accountant Office (KAP), which audits the Company's Financial Statements.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Performance Management And Compensation System Of The Board Of Commissioners And Directors
Collective Achievement of Board of Directors' KPIs for the Fiscal Year 2023
Completion of the Strengthening Roadmap for BRI The roadmap is available
Pension Fund (2%) (G) according to the timeline.
Category Weight KPI Parameter Realization
Fulfillment of Qualifications for the Risk BOD & SEVP in the risk
Financial 26% PPOP (5%) & PPOP Growth (5%) (C) Rp94.12 T& 13.80% Management Organ (2%) (G) management function, have
fulfilled the qualifications
ROE Tier 1 (4%) (C) 22.94%
Ratio of Women in Nominated Talent (2%) (S) 22.58%
CAR (5%) (G) 25.23%
Young Talent in Nominated Talent (2%) (S) 22.58%
TSR (3%) (C) Rank 2 out of 8 Peers
Market Cap (4%) (C) 867.68 T Achievement 101.80%
Operational 12% LAR (3%) & LAR Coverage (3%) (G) 12.54% & 53.59%
Description: (C) Commercial; (E) Environmental; (S) Social; (G) Governance
COC (3%) (G) 2.38%
Operating Expenses Operating Income (3%) (G) 64.36% Remuneration Policy for the Board of Commissioners and the Board of
Social 7% KUR Realization (4%) (S) Rp163.33 T KUR Disbursed Directors [2-19] [2-20]
Subrogation Recovery Rate (3%) (S) 22.93%
47 BRI determines remuneration policies in accordance with the Regulation of the Financial Service Authority Number 45/
Business Model 21% Average Low-cost Fund (7%) (C) Rp791.53 T
Innovation POJK.03/2015 dated December 23, 2015. The remuneration structure for the Board of Directors is regulated based on the
CASA Ratio (5%) (C) 64.55% Decision of the Board of Commissioners SR.24-KOM/07/2023 dated July 5, 2023, with the approval of the Two-Tone Series A
KPI Realization for UMi Holding (9%) (G) 105.01% Shareholders based on the letter Number SR-23/Wk2.MBU.A/07/2023 dated July 4, 2023.
Technology Leadership 12% Integration of ATM and EDC Payment Systems (3%) Implemented according to the
(C) milestone The remuneration structure of the Board of Commissioners and the Board of Directors includes honorarium and bonuses,
Implementation of IT Master Plan (4%) (G) Implemented according to the allowances, and facilities. The honorarium and tantiem for the President Commissioner are set at 45% of the President Director's
milestone salary, while the honorarium and bonuses for the Vice President Commissioners are set at 42.5% of the salaries of the President
Cyber Security Breach (5%) (G) Zero Incident Director and members of the Board of Commissioners are set at 90% of the honorarium for the President Commissioner
Investment Increase 12% ESG Rating (4%) (E) S&P Global Score: 63 & MSCI
Rating A Meanwhile, the honorarium and the bonuses for the Board of Directors are set proportional to the salaries and bonuses of
the President Director, namely the Vice President Director at 90% and the salaries of other Directors at 85% of the salaries
Risk Management Maturity Index (3%) (G) Index Score 4.03
of the President Director. More information on allowances and facilities for the Board of Commissioners and the Directors
Contribution of Subsidiaries (5%) (C) Rp8.37 T can be found in the 2023 BRI Annual Report.
Talent Development 10% Talent Management Program in the Cluster (2%) (S) Implemented according
to the timeline of the Remuneration adjustments are also associated with performance and risk, encompassing remuneration policies related
Talent Committee program
execution. to the amount and criteria that are variable and deferred. In accordance with Joint Decree of the Board of Directors and
Board of Commissioners Number 09-KOM/BRI/11/2017 and S.1023-DIR/KPS/11/2017 dated November 30, 2017, regarding the
Governance of Remuneration of PT Bank Rakyat Indonesia (Persero) Tbk., the following provisions have been established:
a. For individuals designated as material risk takers (MRT), a portion of their variable remuneration will be deferred.
b. The maximum deferral amount for the Directors and Board of Commissioners is up to 20% of the bonus.
Page 48
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Performance Management And Compensation System Of The Board Of Commissioners And Directors
Variable Compensation Management [2-19] [2-20] Commissioners/Supervisory Board of State-Owned Enterprises under certain conditions determined by the Minister.
The company may defer payment of deferred variable remuneration (malus) in the event of the following conditions:
BRI has a variable compensation program for the Board of Commissioners and Directors, which will be provided in a. Proven occurrence of Individual Fraud.
accordance with performance evaluation results. b. Restatement of the company's financial statements that serve as the basis for determining the provision of variable
remuneration.
Tantiem/Performance Incentives c. The risk rating in the last quarter before the implementation of deferred variable remuneration payment is 4 (Moderate
Tantiem/Performance Incentives are granted to the Board of Commissioners and Directors in a proportional manner, to High) or worse.
among others based on the Board of Commissioners and Directors’ KPI achievements in the respective year.
The proportion of the Tantiem/Performance Incentives amount is proportional to the amount of the President Director,
with the Vice President Director receiving 90%, and other Directors receiving 85% of the President Director's Tantiem/ The Company may defer payment of deferred variable remuneration (malus) in the event of the following conditions:
Performance Incentives. Meanwhile, the proportion of the Tantiem/Performance Incentives amount for the President
Commissioner is set at 45% of the President Director's, the Vice President Commissioner at 42.5% of the President a. Proven occurrence of Individual Fraud.
48 Director's, and Board Commissioners at 90% of the President Commissioner's. b. Restatement of the Company's financial statements that serve as the basis for determining the provision of variable
remuneration.
Long-term Incentives c. The risk rating in the last quarter before the implementation of deferred variable remuneration payment is 4 (Moderate
BRI has provisions for Long-Term Incentives (LTI) for the President Director, other executive Directors, and the Board to High) or worse.
of Commissioners in accordance with the Regulation of the Minister of State-Owned Enterprises Number PER-3/
MBU/03/2023 dated March 24, 2023, regarding the Organization and Human Resources of State-Owned Enterprises, and
the Letter of the Minister of State-Owned Enterprises Number SR-19/DSI.MBU/01/2023 dated January 30, 2023, regarding Shareholding [2-19] [2-20]
the Determination of Performance Targets and Governance of Long-Term Incentives (LTI) for PT Bank Rakyat Indonesia
(Persero) Tbk. The performance measurement period for LTI is conducted on a triennial basis. LTI is granted in the form of Shareholding by the Board of Directors and Commissioners is part of their commitment to responsible management
shares/cash after a vesting period of 3 years based on the performance evaluation of LTI. The allocation of LTI for members and increasing shareholder value. BRI encourages the Board of Directors and Non-Independent Commissioners to own
of the Board of Directors and Non-Independent Commissioners, given in nominal Rupiah, is converted into a certain BRI shares, including through the provision of long-term incentives (LTI). As of December 31, 2023, on average, the share
number of company shares, while Independent Commissioners are given in cash. ownership of the Board of Commissioners is 655,250 shares per member of the Board of Commissioners. Meanwhile,
during the same period, the share ownership of the President Director amounted to 3,234,856 shares, and on average, the
The proportion of the LTI amount is proportional to the LTI amount of the President Director, with the Vice President share ownership of each member of the Board of Directors is 2,145,555 shares.
Director receiving 90%, and other Board members receiving 85% of the President Director's LTI. Meanwhile, the proportion
of the LTI amount for the President Commissioner is set at 45% of the President Director's, the Vice President Commissioner
at 42.5% of the President Director's, and Board Commissioners at 90% of the President Commissioner's.
Based on the Regulation of the Minister of State-Owned Enterprises Number PER-3/MBU/03/2023 dated March 24, 2023,
the Company may postpone the payment of part or all of the Tantiem/Performance Incentives that are deferred (malus) or
recall Tantiem and cash Performance Incentives that have already been paid (clawback) to the Directors and the Board of
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
REVIEW OF SUSTAINABILITY GOVERNANCE
ESG Governance [2-9] [2-13] [2-24] [E.1]
To reinforce its ESG governance, BRI has issued the Circular of the Board of Directors regarding PT Bank Rakyat Indonesia parties’ concerns regarding the performance and implementation of BRI's ESG and CSR programs;
(Persero) Tbk's Sustainability Policy and Strategy. e. Determining material issues and managing the impact of ESG Rating reports, investor concerns or other third-party
concerns on BRI's ESG implementation and CSR performance;
Since 2021, BRI has established ESG governance to directly monitor its ESG performance and disclosures. ESG governance f. Approving a follow-up plan for the results of the review and evaluation so that it can be proposed as a new work
is realized through the establishment of the Risk Management and Environmental, Social & Governance (ESG) Committee. program that will be followed up by the relevant work units; and
The establishment of the Risk Management Committee and the ESG Committee is based on Decision NOKEP 872-DIR/ g. Approving and giving direction on issues related to ESG and CSR programs, including laws and regulations, global
PPM/06/2022 dated 2 June 2022. initiatives, business practices, and other important information related to ESG and CSR program.
The implementation of ESG at BRI is optimized through the establishment of the ESG Division under the Compliance
ESG Committee Membership Structure Director. The ESG Division is tasked with monitoring the performance and impact of economic, environmental, and social
topics, as well as coordinating sustainability and climate change policies at the corporate level. In practice, the ESG Division
President Director collaborates with the risk management team and coordinates with all related work units.
Chairman
49 The ESG Division provides performance results reports directly via the ESG Dashboard to the Board of Commissioners
and Directors and submits them at the GMS. The ESG Division also plays an important role in formulating BRI’s policies,
Vice President Director
ESG Division Head, Environmental, strategies and goals that are in line with sustainable development. [2-9] [2-12] [2-13] [C.1] [2-24] [FS12]
Vice Chairman Social, & Governance, or ESG
(also serving as Permanent Member) Management Unit
Secretary
(also serving as Permanent Member)
COMPLIANCE DIRECTORATE
DIRECTOR
Risk Management SEV Change Management All Directors or SEVPs from
Finance Director Compliance Director & Transformation Office Relevant Departments
Director
Permanent Member Permanent Member Permanent Member Permanent Member Non-Permanent
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) DIVISION
DIVISION HEAD
The ESG Committee has the following duties and responsibilities: [2-12] [2-13] [2-14] [FS12]
POLICY & STRATEGY IMPLEMENTATION & DATA & INFORMATION
a. Approving and providing direction on the results of reviews and evaluations related to the implementation of policies
DEVELOPMENT DEPARTMENT COMMUNICATION DEPARTMENT MANAGEMENT DEPARTMENT
or governance parameters of ESG initiatives and CSR initiatives that have been prepared by the relevant work units that
DEPARTMENT HEAD DEPARTMENT HEAD DEPARTMENT HEAD
are proposed by the Committee Support Team;
b. Determining work programs that fall into the categories of ESG initiatives and CSR initiatives based on the
recommendations of the Committee Support Team; Team Member
c. Approving and providing direction on the results of reviews and evaluations related to the implementation of work (Position level of Team Member is at the highest level, with a maximum of one level below the Department Head)
programs that fall within the parameters of ESG initiatives and CSR initiatives, as well as reporting data and information
related to ESG;
d. Approving and giving direction on the results of reviews related to ESG Rating reports, investors’ concerns or other third
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Materiality Assessment
Materiality Assessment Process [3-1]
Materiality assessment is the foundation of any BRI adopts the principle of double materiality in determining material topics. By applying the principle of double materiality, BRI assesses the Company's ability to identify sustainability factors
sustainable progress as it enables companies to identify that are relevant for long-term value creation, and considers reciprocal relations between external impacts on society or the environment, and internal impacts on the Company’s value.
and prioritize the issues that matter most to the business
and stakeholders. BRI reviews and analyzes material This materiality assessment process has gone through an assurance process from independent third-party CBC Global Indonesia to ensure the credibility of the assessment process and
topics once a year to ensure their relevance to the selection of material topics.
Company.
Summary of Double Materiality Assessment Process
Step 1 Step 2 Step 3
Identification of Sustainability Issues Assessment of Material Sustainability Issues using the Review of Material Topics [2-12] [2-14]
50 Double Materiality Analysis Method
This stage involves the comprehensive collection of The results of the materiality assessment are then reported to
information and analysis to identify the most relevant and Environmental/ Social Materiality Assessment (Inside- the ESG Committee under the Board of Directors. Following
significant social, environmental, and economic issues for the Out), involves assessing sustainability issues that impact the the Board's review, seven topics were approved. The approved
Company. As a result, a total of 15 topics were identified. surrounding communities and environments. material topics are then incorporated into the Company's
strategy and targets.
Financial Materiality Assessment (Outside-In), involves
assessing sustainability issues that impact the Company's
financial performance.
Each sustainability issue assessment process is conducted
through:
y Various stakeholder engagement activities involving
internal and external stakeholders such as investors,
customers, employees, regulators, communities, and other
stakeholders.
y Analysis of various global standards and initiatives.
y Analysis of materials for top management meetings.
ESG Material Topics
Financial Inclusion and Digitalization Emission and Climate Change Human Resources and Human Data Security and Privacy
Management Rights Management
Responsible Investment and Financing Sustainability Governance Community Relations
Page 51
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Materiality Assessment
Materiality Matrix [3-2]
Prioritas
Emission and Climate
Change Management Financial
Social/
Financial Inclusion and Materiality
Environmental
Digitalization Materiality
Academicians,
Topic Outside-in Inside-out Employees Customers Investor Regulator Public Mass Media
etc
Responsible Investment and 1 Financial Inclusion and
Financing Digitalization
Sustainability
(Social/Environmental Materiality)
51 Community Governance 2 Sustainability Governance
Relations
3 Emission and Climate
Change Management
Inside-Out
4 Data Security and Privacy
Occupational Health and Safety Data Security and Privacy
5 Responsible Investment
and Financing
Customer Tax Strategy HR and Human 6 Human Resources
Relationship Rights Management and Human Rights
Management Management
Biodiversity 7 Community Relations
Use of Natural Resources
High Stakeholders Interest Moderate Stakeholders Interest Low Stakeholders Interest
Material Topic Changes in 2023:
y Additional Investment Topics and Responsible Investment and Financing
y Incorporation of anti-corruption topics into sustainability governance topics; the topic of indirect economic and local community influences on community relations topics
Outside-In y Changes in material topic terminology
(Financial Materiality)
Page 52
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Materiality Assessment
Management Of Strategic Priorities [3-1] [3-2]
From the results of the materiality assessment, three topics were found to have a significant impact on company performance (outside-in):
financial inclusion and digitalization, sustainability governance, and data security and privacy.
Topic Background Strategy KPIs linked to BOD Compensation KPI Realization
Financial The topic has a significant business impact based on the results of the double materiality assessment. Through Ultra Micro Holding, the synergy between BRI and its subsidiaries Pegadaian and The realization of KPIs for Ultra Micro 105.01%
Inclusion and PNM has resulted in the formulation of a customer journey aimed at elevating structured Holding, including the number of co-
Digitalization Financial and digital financial inclusion in Indonesia have become increasingly important, as they can and systematic business players within a unified ecosystem. locations, the quantity of digital debtors
deliver various advantages. These include reducing shadow banking and irresponsible finance, contributing (UMi Corner), the quantity of UMi debtors,
to sustainable local and national economic growth, reducing inequality, and ultimately alleviating poverty. The first strategy, the empower phase, is executed by PNM, targeting business groups that and the number of new savings account
have not yet been reached by banking services or are considered unbankable. openings in the UMi segment.
On the other hand, according to BRI's internal research in 2022, there are more than 48 million ultra-micro
business actors in Indonesia in need of financing and empowerment, with approximately 16 million of In the second phase, integrate, customers whose businesses have progressed can access
them yet to receive formal financial services. In this regard, BRI plays a crucial role in serving all customers, services from BRI and Pegadaian, including the introduction of digital financial services.
including micro and ultra-micro business players, in accordance with their needs and business scale.
. In the final phase, upgrade, ultra micro customers have moved up to the micro segment, or
52 from micro to small, and ultimately become customers in the middle segment.
Sustainability The topic has a significant impact based on the results of the double materiality assessment. BRI's strategy in enhancing sustainability governance encompasses various steps designed Improving the ESG (Environmental, Social, S&P Global
Governance to integrate sustainability principles. This includes, among other things, the implementation Governance) Rating Score Score: 63 & MSCI
Sustainability governance is crucial for BRI to ensure that their operational activities align with of nationally and internationally recognized sustainability standards and guidelines, Rating A
sustainability principles, encompassing social, environmental, and economic aspects. Through the including those presented by ESG Rating
effective implementation of sustainability governance, a company can manage risks, strengthen
its reputation, and enhance operational efficiency. The impacts for the Company include increased
competitiveness, reinforced market position, and enhanced trust from stakeholders such as customers,
investors, and the general public. Moreover, effective sustainability governance can open up new
opportunities for environmentally friendly product and service innovations and support the Company's
long-term growth. Therefore, sustainability governance is not only essential for ensuring the Company's
sustainability but also for meeting the expectations and demands of various stakeholders who are
increasingly conscious of sustainability issues.
Data Security The topic has a significant business impact based on the results of the double materiality assessment BRI has established a framework for managing cybersecurity. The BRI Cybersecurity Zero incidents in cybersecurity breaches Zero Incident
and Privacy Framework is integrated into the Enterprise Security Architecture (ESA), which aligns with
Security and data privacy are among the top priorities for BRI, given the responsibility to store and manage the National Institute of Standards and Technology (NIST) Cybersecurity Framework
crucial information such as personal data, financial data, and customer financial transactions. The loss or
misuse of such data can result in financial losses, reputational damage, and legal sanctions according to
applicable regulations. Moreover, operating in a highly interconnected digital environment, the bank faces
the increasing occurrence of cyber-attacks and data security breaches. In this context, ensuring the security
and privacy of data is not only an ethical responsibility for BRI but is also essential for building trust among
customers and other stakeholders.
Note: The Key Performance Indicators (KPIs) included in this materiality table are already encompassed within the Board of Directors (BOD) KPIs, thus serving as parameters for the determination of compensation and remuneration. For details regarding the compensation and remuneration determination process,
please refer to page 47.
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Governance: Social: Environmental: Sustainability Report 2023
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Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Materiality Assessment
Managing Issues Affecting External Stakeholders [3-1] [3-2]
In the top two inside-out topics, BRI measures the results of activities or programs carried out, and quantitatively evaluates
the impact on stakeholders.
Topic Description Related Quantitative Target Quantitative Output
Stakeholder (2023)
Emission BRI needs to pay attention to emissions Investors, BRI Net Zero Emission y Decrease in scope 1
Management and and climate change management as Regulators, 2050 emissions by 1.29%,
Climate Change its operational and business activities Communities equivalent to 1,706 tons
contribute to greenhouse gas emissions of CO2e.
and influence climate change. The y Decrease in scope 2
negative impacts of this issue include emissions by 1.22%,
risks to economic and environmental equivalent to 4,393 tons
stability, as well as potential financial of CO2e.
and non-financial losses for both y Decrease in scope 3
the company and the surrounding emissions by 7.02%,
community. However, by prioritizing equivalent to 788,279
53 sustainable business practices, BRI can tons of CO2e.
mitigate its negative impact, enhance
the company's image, and create new BRI Green Network Addition of 90 electric
opportunities for sustainable business vehicles, 100 electric
growth. motorcycles, and the
installation of solar panels
in 93 units.
Responsible BRI needs to focus on enhancing Customers, Sustainable Financing BRI's sustainable financing
Investment and responsible financing and funding Investors, Portfolio (Lending portfolio at the end of
Financing activities, as this not only strengthens Regulators and Corporate Bond December 2023 reached
the company's reputation as a Investment) Rp777.3 trillion, equivalent
financial institution committed to 67.1% of the total
to social and environmental disbursed credits and
investments in ESG-based
sustainability but also creates
corporate bonds. This
new opportunities for sustainable
portfolio comprises credit
business. By prioritizing financing that disbursements to the
considers social, environmental, and MSME sector amounting
good governance aspects, BRI can to Rp690.4 trillion, credit
generate a significant positive impact disbursements to the
on both society and the environment green sector totaling
while expanding its customer base Rp82.3 trillion, and an
concerned with these issues. investment portfolio in
ESG-based corporate
bonds amounting to
Rp4.54 trillion.
BRI Menanam Collaborating with KUR
customers and BRILiaN
Village communities to
plant 233,700 productive
plant seedlings.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Stakeholder Engagement [2-12] [2-29] [FS2] [E.4] [3-1]
In materiality assessment, stakeholder involvement is a crucial consideration. Stakeholder involvement is not limited to A summary of various channels that BRI regularly uses to interact with BRI's diverse stakeholder groups is as follows: [2-29]
a supporting element, but is an integral part of the entire materiality assessment process. Stakeholder aspirations are [E.4]
considered crucial and to gain in-depth understanding, BRI held a Stakeholder Engagement Forum in December 2023.
This event was attended by various significant stakeholders, such as customers, employees, suppliers, mass media, non-
Customers
profit organizations (NGOs), and so on. Materiality questionnaires were distributed to explore perspectives and input from
Resources: Topic:
stakeholders. [FS12] y Service & Contact Center Division. y Financial Inclusion and Digitalization
y Corporate Secretary Division. y Data Security and Privacy
y Responsible Investment and Financing
Basis for Determination: y Community Relations
y Economic relations.
Response from BRI:
Methods of Engagement and Identification of Positive and y Innovation of products and services according to needs and technological develop-
Negative Impacts: ments;
Number of Stakeholders Involved Criteria for Assessment and Stakeholder Selection y Providing and delivering information on products and services;
y Call center services (any time),
y Customer Satisfaction Survey (every two years), y Storage and protection of customer data according to regulations;
y Need y Website & Frontline Information (at least once a year), y Providing customer complaint services, both manual and digital services, as well as
y Materiality questionnaire (once a year), and resolution mechanisms; and
y Diversity y Dissemination of the implementation of sustainable finance
607
y Stakeholder Engagement Forum (once a year).
y Willingness to participate
54 stakeholders y Impact on BRI and
y Dependence on BRI
Employees
Resources: Topic:
y Human Capital Strategy & Policy. y HR and Human Rights Management
y Human Capital Business Partner Division. y Sustainability Governance
y Responsible Investment and Financing
Stakeholder Engagement Forum Discussion and Feedback Materiality Questionnaire Basis for Determination: y Community Relations
y Legal, and
y Achievement of the Company’s goals. Response from BRI:
y The initiative comprises two BRI conducts regular discussions BRI distributed materiality y Formulation of Collective Labor Agreements;
focus group discussion sessions with investors throughout the questionnaires online to obtain Methods of Engagement and Identification of Positive and y Providing training and developing employee capabilities, as well as establishing an
involving nine stakeholder year to gather aspirations and a broader perspective from Negative Impacts: assessment center;
y Internal media (portal), hotline via telephone and email (any time), y Conducive and productive work environment; and
categories. address investor concerns stakeholders. y Employee satisfaction survey (once a year), y Periodic reviews and surveys of employee welfare.
y External stakeholders include y Materiality questionnaire (once a year), and
customers, supply chain y Stakeholder Engagement Forum (once a year).
partners, business partners,
investors, government and
NGOs, academics, and the Investors
general public. Resources: Topic:
y Internal stakeholders y Investor Relation. y Sustainability Governance
are represented by the y Corporate Secretary Division. y Emission Management and Climate Change
y Responsible Investment and Financing
Human Capital, Culture & Basis for Determination: y Data Security and Privacy
Transformation Division. y Economic relations, y HR and Human Rights Management
y Ownership, and
y Legal. Response from BRI:
y Providing regular information on BRI's performance;
Methods of Engagement and Identification of Positive and y Communication both directly and through analysis to ensure delivery of material
Negative Impacts: information; and
y Performance Reporting (periodic meetings), y GMS.
y Organizing a GMS (at least once a year), and
y Stakeholder Engagement Forum (once a year)
Page 55
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Stakeholder Engagement
Regulators Nonprofit Organization (NGO)
Resources: Resources: Topic:
y Compliance Division. Topic: y Division in charge. y Community Relations
y Data Security and Privacy y Responsible Investment and Financing
Basis for Determination: y HR and Human Rights Management Basis for Determination: y HR and Human Rights Management
y Legal relations. y Community Relations y Social relations and social license,
y Responsible Investment and Financing y Supporting the implementation of social responsibility, and Response from BRI:
Methods of Engagement and Identification of Positive and Negative y closeness to the Company. y Providing information and submitting performance reports and implement-
Impacts: Response from BRI: ing other activities: Annual Report, Sustainability Report, CSR Report, and
y Reporting and notification to Bank Indonesia regarding compliance with Basel y Adjustment of internal policies and regulations according to regulations issued by Methods of Engagement and Identification of Positive and Negative Impacts: other reports.
Standards (at least once a year); the government; y Strategic cooperation in BRI's concern for social aspects, partnership program
y Reporting compliance with sharia aspects to the National Sharia Council (at y Implementation of GCG principles in all work units; and reporting, and CSR (at least once a year).
least once a year); y Submission of performance reports and implementation of other activities:
y Providing ATMs for people with disabilities (at least once a year); Report of the Sustainable Financial Action Plan, Annual Report, Sustainability
y Preparation of SFAP and a Sustainability Report (at least once a year); as Report, CSR Report, and other reports.
well as
y Stakeholder Engagement Forum (once a year).
55
Suppliers Academics
Topic:
Resources: y HR and Human Rights Management Resources: Topic:
y Fixed Asset Management & Procurement y Data Security and Privacy y Division in charge. y Sustainability Governance
y Procurement & Logistic Operation Division. y Financial Inclusion and Digitalization y Community Relations
Basis for Determination: y Responsible Investment and Financing
Basis for Determination: Response from BRI: y Social relations, and y HR and Human Rights Management
y Economic and legal relations. y Focus group discussions to find out input and concerns from suppliers;
y Providing input and independent views.
y Sustainability reports and adaptation to various reporting frameworks related to
environmental, social and governance; as well as Response from BRI:
Methods of Engagement and Identification of Positive and Negative Methods of Engagement and Identification of Positive and Negative Impacts:
y Dissemination regarding the Company's policies, such as employment policies, y Giving insight into business development and growth;
Impacts: y Stakeholder Engagement Forum (once a year).
anti-corruption, environment, and so on y Analyze the impacts arising from business in the era of digitalization
y Seminars and dissemination (when needed),
y Materiality questionnaire (once a year), and
y Stakeholder Engagement Forum (once a year).
Mass Media
Topic:
Resources:
y Responsible Investment and Financing
y Corporate Secretary Division.
y Community Relations
y Marketing & Communication Division.
y Emission Management and Climate Change
Basis for Determination: Response from BRI:
y Social relations and social license. y Providing information to the general public regarding BRI’s latest activities
and programs.
Methods of Engagement and Identification of Positive and Negative Impacts:
y Press releases and media gatherings (when necessary, at least once every three
months), and
y Stakeholder Engagement Forum (once a year).
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Governance: Social: Environmental: Sustainability Report 2023
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Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Navigating Uncertainty: BRI’s Risk Management Approach [2-12] [ 2-16]
Risk Governance
With the rapid developments in the external and internal Risk Management Oversight Committee (RMOC)
banking environment, risk management for banks BRI’s RMOC assists the Board of Commissioners to
Board of Commissioners and Directors
has become increasingly complex. To better adapt to evaluate its risk management, and ensure it is conducted
these developments, BRI is required to manage risks under proper procedures and methodologies, so that BRI
in an integrated and systematic manner. The Board of Risk Management Pillars activities are controlled within acceptable limits.
Commissioners and the Board of Directors of BRI are Active Supervision of the
Adequacy of Policies,
Board of Directors Adequacy of Risk Mnagement Adequacy of internal
responsible for the effectiveness of risk management and the Board of Procedures and process and Risk Management controls Risk Management Committee (RMC)
Commissioners Limit Determination Information system
implementation at BRI and play a key role in supporting The Risk Management Committee is responsible for risk
and overseeing its successful implementation across all management policies, strategies, and contingency plans
business units. The Board of Directors appoints a specific during abnormal external conditions.
director, in this case, the Director of Risk Management, to
Board of UKO & SKMR
oversee and control the risk management process on a Commissioners Board of Directors’ Committees Identification Independent
Risk Management Work Unit (RMWU)
bank-wide basis. Supervision Supervision Function Measurement, Assurance The RMWU has the authority and responsibility to carry
Function Monitoring, Control
56 out BRI’s risk management process, and is independent
The Board of Commissioners evaluates the Board of Risk Management Risk Management & ESG Committee from the bank’s Operational Work Unit, Internal Audit
Lending Policy Business Risk
Directors’ policies and risk management implementation Monitoring
Committee Taking Work Unit , and Compliance Work Unit.
Committee
Credit Risk Strategic Risk
to ensure that they effectively manage BRI's business
Business Risk
BRI
risks. The Board of Commissioners is assisted by BRI’s Market Risk Compliance Risk
Taking
Internal Audit
Internal Audit Work Unit (IAWU)
Integrated
Risk Management Oversight Committee (RMOC), Lending Work Unit The Internal Audit Work Unit serves to evaluate and
Governance
Committee
Committee Operation
to fulfill its duties and responsibilities in evaluating Liquidity Risk ReputationRisk enhance the effectiveness of risk management, internal
and ensuring the implementation of the Company's controls, and governance processes.
Operational Risk Intragroup Risk
Integrated Risk Risk Management
risk management continues to meet the elements Audit Committee Management Information System
of sufficient procedures and methodologies for risk Legal Risk Insurance Risk Committee
management. This ensures that the Company's
activities remain controlled within acceptable risk limits
and are beneficial to the Company. Both the Board
of Commissioners and members of RMOC possess
competence and expertise, including certification in the
field of Risk Management in accordance with minimum
standard requirements.
Page 57
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Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Navigating Uncertainty: BRI’s Risk Management Approach
Risk Management Process
Each BRI operational work unit is responsible for implementing BRI’s risk management process through an operational and
business activities internal control system. BRI’s Risk Management Policy is the main guide to implementing operational risk
management and capital management including identifying, measuring, monitoring, and controlling risks.
This process is continuously conducted via three lines of defense with all risk taking units being the first line, the compliance
and risk management unit the second, and the internal audit unit as the third line.
Stress-Testing
BRI conducts stress-testing simulations at least once every quarter to evaluate vulnerabilities that may not be detected
normally, but may become significant under extreme conditions.
Risk Audit and Review
BRI has identified key risk indicators for all types of risks and established risk limits that reflect BRI's risk appetite. The
57 determination of risk appetite is made through a statement known as the Risk Appetite Statement (RAS), which is
quantitative, qualitative, and includes zero tolerance aspects related to BRI's business goals and objectives. Periodically, BRI
reviews the RAS and risk limit parameters at the corporate level (bank-wide).
In accordance with Financial Services Authority Regulation No. 18/POJK.03/2016 on the Implementation of Risk
Management for Commercial Banks, the Internal Audit Work Unit (SKAI) conducts periodic risk management reviews,
typically once a year. This process is carried out to ensure that all risk assessments (Credit Risk, Market Risk, Liquidity
Risk, Operational Risk, Legal Risk, Reputation Risk, Strategic Risk, and Compliance Risk) have been adequately performed.
Additionally, SKAI regularly conducts audit activities for each operational unit within BRI. SKAI submits reports routinely to
the President Director and the Audit Committee, with copies sent to the Compliance Director.
Furthermore, BRI conducts a self-assessment of the Company's risk profile. The assessment for the fourth quarter of 2023
indicates that BRI's risk rating is at a Low to Moderate level. As a financial conglomerate, BRI also performs integrated
risk assessments, and the integrated risk profile for the second semester of 2023 is rated at a Low to Moderate level. This
assessment demonstrates that BRI has successfully maintained a level of risk management in line with the business
development and competition in the banking sector in Indonesia. BRI also ensures that the Board of Commissioners and
Directors receive various types of education, including risk management. [2-12]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Navigating Uncertainty: BRI’s Risk Management Approach
Managing Emerging Risks
BRI is confronted with various risks that have been identified and are anticipated to impact its future business. Based on the findings of the study, there are two categories of risks that BRI will face in the short and long term in the future. These risk categories
are related to the environment and technology, and they are outlined as follows:
Category Risk Definition and Description of Risk Risk Impact Preventive Measures
Environment The failure to The risk of climate and environmental change has The failure to undertake climate change mitigation actions has the potential to BRI has taken mitigation steps on both the operational and business sides through the
mitigate climate become an international focus in recent years. Mitigation cause material losses for the Company, both on the operational and business analysis of climate change scenarios, as outlined in the Task Force on Climate-Related
change actions that lack focus and are carried out in an sides of BRI. The lack of climate change mitigation also impacts BRI's borrowers Financial Disclosure (TCFD) report. On the operational side, one of BRI's climate change
unstructured manner will weaken BRI's plans to achieve in disaster-affected areas caused by climate change, thereby affecting the credit mitigation actions involves incorporating electric vehicles into its operational activities. On
the target of net-zero emissions (NZE). Failure to take quality extended to them. the business side, BRI is developing decarbonization strategies, including the establishment
mitigating actions against climate change will have a of sustainable financing facilities known as Sustainability-Linked Loans. This facility provides
significant impact on increasing environmental risks, such incentives to customers capable of achieving ESG-based Key Performance Indicator targets.
as rising sea levels, floods, wildfires, heatwaves, shifting BRI also has established ESG-based financing policies in the Palm Oil and Pulp & Paper
seasonal cycles, and others. This will undoubtedly affect subsectors.
the quality of the credit disbursed.
58 Technology Cybersecurity risks The advancement of artificial intelligence, biotechnology, The threats of attacks and cybersecurity are of significant concern at BRI to In an effort to mitigate these risks, BRI has established a specialized division to handle digital
and other technologies is currently providing ensure the security of the digital data implemented by the Company remains data security, namely the Digital Risk Division. The Company maximizes the use of BRI's
convenience in all aspects of life. However, the well-managed. A digital ecosystem is necessary to prevent activities outside the digital ecosystem, such as Digital Office, BRI Drive, corporate email, and a short link system
complexity of these new technologies also increases ecosystem managed by the Company. called BRI Short LINK (BRISILK).
the risks associated with existing technologies, such as
cyberattacks on sensitive data. Cyber disruptions can
manifest as threats from viruses, hacking, data leaks,
malware, and the like.
Technology Responsible The use of AI technology in e-KYC is commonly Such misuse can result in financial losses for customers and tarnish the bank's As a mitigation effort, BRI periodically undergoes updates and reviews of the e-KYC
Artificial employed by banks to provide convenience for reputation. technology and algorithms to ensure their effectiveness in detecting visual and audio
Intelligence (AI) customers in interacting with the bank. However, manipulation technologies, such as deep fakes. The integrated use of AI in banking services,
currently, vulnerabilities in AI are still identified that could for both internal operations and customer communication, encompasses several use cases,
be exploited by criminal actors. including:
y Chatbots and virtual assistants for text-based customer service.
y Robocalls for real-time, one-way or two-way voice-based communication.
y Anti Money Laundering measures for the prevention of money laundering based on
customer transaction behavior (future plan).
y Transaction recommendations based on customer behavior to analyze transaction
patterns, subsequently providing recommendations for frequently conducted
transactions (future plan).
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Navigating Uncertainty: BRI’s Risk Management Approach
Risk Culture Internal Risk Culture related to Risk Awareness Culture
BRI regularly identifies and measures risks through Risk Control Self-Assessments (RCSA), at the beginning of each The implementation of risk culture is closely related to BRI One Culture in that it strengthens cultural transformations,
semester, considering Key Performance Indicators (KPI), management concerns, future business plans, historical data and is in line with BRIVolution 2.0 in which BRILian people have an important role in protecting themselves, looking after
on operational risk events, and evaluations of control weaknesses. RCSA is a qualitative and predictive operational risk co-workers, and supporting BRI. In building its risk culture BRI mandates three activities for all work units through a Culture
management tool used to identify and measure risks by considering the dimensions of impact and likelihood. RCSA aims Activation Program (CAP):
to enable workers to proactively identify and report potential risks across the organization. RCSA is implemented at the BRI
Head Offices, Regional Offices, Special Branch Offices, Overseas Branch Offices, and Branch Offices that also represent BRI 1. Protect Your Password
Units, Sub-Branch Offices and Priority Service Centers. y All employees must maintain the confidentiality of their passwords/PINs/Data
y Employees must not share passwords/PINs
Every employee in BRI units involved in risk management functions has KPIs related to risk management. Additionally, risk 2. Scrutinizing Documents
management metrics are also incorporated into the Collegial KPIs of the Board of Directors. y Customer/debtor documents must be validated and meet BRI’s requirements, and are to be input in accordance
with the source document’s application and established document structuring procedures.
3. Disclosure of Fraud Indications
y 100% of the frauds submitted to BRC/URC have been followed up on.
59
The internalization of a Risk Awareness Culture for all BRI employees is also implemented through a series of routine
self-learning activities, instructions, and continuous outreach. BRI realizes that the success of these activities can only be
achieved through the inculcation of BRI’s work culture by all its managers and employees. Details of BRI’s Risk Awareness
Culture can be found in the 2023 BRI Annual Report.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
BRI’s Code Of Ethics [2-23]
BRI officially joined the United Nations Global Compact (UNGC) on March 12, 2023, demonstrating the Bank’s Code of Ethics Systems and Procedures
determination to run a sustainable business. A Circular of BRI’s Board of Directors on Corporate Governance, book 6 of the
BRI Code of Ethics explains policies that regulate the elements of the BRI’s Code of Ethics and its implementation. BRI’s Code of Ethics applies to all BRI personnel at all levels of the organization. All BRI personnel, including the Board of
Directors, the Board of Commissioners, and all employees, are required to know, understand and implement the BRI Code
The implementation of the Company’s Code of Ethics is divided into the Bank’s Code of Ethics and the BRILiaN Individual of Ethics in accordance with the prevailing regulations. The Director of Compliance and compliance staff (Compliance
Code of Ethics. The Bank's Code of Ethics serves a guideline that explains business ethics and corporate behavior, while the Division and RRM Regional Office) are responsible for internalizing the Code of Ethics.
BRI personnel Code of Ethics serves a guideline that explains business ethics and individual behavior. [2-23] [2-24]
The elements in the Bank's Code of Ethics are as follows: Regional Management
Compliance Director Compliance Division
1. Compliance with Laws and Regulations, including the implementation of Anti-Money Laundering (AML), Counter and Compliance (RMC)
Financing of Terrorism (CFT), and Prevention of Funding for the Proliferation of Weapons of Mass Destruction
(PFPWMD);
2. Relationship with BRI Individuals: fair treatment and application of a respectful workplace policy;
60 3. Relationship with Customers: protecting the confidentiality of customer data and personal information; To enforce the Code of Ethics, BRI requires all BRILiaN Personnel to create an annual Code of Ethics Statement and disclose
4. Relationship with Competitors and Business Partners: upholding healthy competition and anti-monopoly principles, annual conflicts of interest through the BRISTARS application or other media. Each year, the Board of Directors, Board of
as well as providing fair treatment to business partners; Commissioners, and all employees sign the Anti-Fraud Statement within the BRILiaN Improvement Forum. Additionally,
5. Relationship with Shareholders and Investors: contributing optimal value, protecting shareholder rights, and ensuring the signing of the integrity pact is carried out by the procurement committee, user work units, vendors, or partners. [2-23] [2-24]
transparency in information disclosure;
6. Relationship with Regulators: maintaining integrity and accuracy in the Bank's reporting; The Code of Ethics is disseminated and communicated to BRI's internal and external stakeholders, where the commitment
7. Relationship with Society and the Environment: upholding human rights, addressing climate change, and prohibiting of the Board of Directors and the Board of Commissioners as role models in implementing the BRI Code of Ethics greatly
involvement in political activities; influences the success of its implementation for all BRI personnel. To ensure effective implementation, BRI also conveys the
8. Ethics as a Business Group; Company's Code of Ethics through: [2-23] [2-24]
9. Control of Gratuities, Bribery, and Corruption.
y BRI official website (ir-bri.com/coc.html) which can be accessed publicly, including by business partners;
The elements in the BRILiaN Individual Code of Ethics are as follows: y Landing Page on the BRISTARS app;
1. Compliance with Laws, Regulatory Policies, and Internal Bank Policies; y Collective Labor Agreement between the BRI Worker Union and BRI Management; [407-1]
2. Behavior of BRILiaN Individuals: protecting the Bank's assets, maintaining information security, complying with y Posters, videos, and other advertising media in the Company’s offices.
insider trading prohibitions, and reporting violations through the whistleblowing system;
3. Relationship with Customers: providing fair treatment and protecting customer data;
4. Relationship with Competitors and Business Partners;
5. Relationship with Colleagues, (including BRI Group Employees): complying with respectful workplace policies;
6. Relationship with Regulators;
7. Relationship with Society and the Environment;
8. Control of Gratuities, Bribery, and Corruption.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
Whistleblowing System (WBS) The WBS can also be used to convey complaints/grievances from external stakeholders regarding BRI's business activities.
The complaint mechanism at BRI ensures that external stakeholders can use the WBS to convey their complaints. [2-25]
BRI provides reporting facilities for BRI employees and external parties such as customers, work partners and BRI
stakeholders to report any behavior or indications of violations of the Code of Ethics as they refer to GCG principles WBS report management is conducted by the WBS Management Unit which falls under the responsibility of the President
and the prevailing regulations. Through this WBS system, BRI ensures the confidentiality of the reporter's identity if the Director and is supervised by the Board of Commissioners through the Audit Committee. The WBS Management Unit is
reporter chooses to keep their identity confidential when making a report through the BRI whistleblowing system. WBS responsible for managing and following up on reports indicating violations. [2-25] [2-26] [2-29]
implementation is carried out with the following flow:
Types of violations that can be reported through the Whistleblowing System are: [2-27]
y Fraud
y Gratification
y Ethical Violations
y Violations of the Code of Ethics
y Violations of Accounting Processes and Financial Reporting
y Indications of Violations by BRI's Executives & Subsidiaries
Code Approval
61 The informant submits an
Report &
Password
indicative report of violations WBS Management Unit Leader
Verification of WBS report by
through SMS, WhatsApp, email, The Audit Committee carries out
WBS Officer
or letter validation
Rejected Followed-up
Mail: PO BOX 1895 JKP 10900 SMS: 0811 8200 600
The Reporting Flow Mechanism of
the Whistleblowing System Email: whistleblower@corp.bri.co.id Website:
Rejections are The WBS Management Unit appoints https://whistleblowing-system.bri.co.id/
updated in the system an Investigation Work Unit to carry out
the Investigation
The Investigation Work Unit
The work unit has the authority to
Officials of WBS Management Unit submits a report of the results of
carry out follow-up improvements
Update report status the investigation to the authorized
and report them to
work unit, forwarded to WBS
WBS Management Unit
Management Unit
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
Sanctions for Violations of the Code of Ethics External Party Verification
If the result of an investigation has proven there has been a violation of the Code of Ethics, the perpetrator will be subject to The due diligence process and the precautionary principle are an integral part of the elements of the Code of Ethics. To
sanctions in accordance with the Circular of BRI Board of Directors on Disciplinary Regulations. ensure compliance with the formulation of the Company's Code of Ethics, BRI arranges for a review by an independent
third party, including for certification. BRI also refers to international instruments in its Code of Ethics in the form of the
Sanctions for disciplinary violations of the Code of Ethics are classified as follows: United Nations (UN) Guiding Principles on Business and Human Rights. [2-23]
a. Forms of Disciplinary Correction BRI obtained the ISO 37001:2016 Anti-Bribery Management System certification for the procurement of goods and services
i. Verbal Reprimand; in 2020. In 2023, BRI successfully maintained the ISO ABMS certification through the implementation of the ISO 37001:2016
ii. Coaching Letter; Anti-Bribery Management System recertification for the procurement of goods and services.
iii. Written Warning; and
iv. Final Written Warning.
Certification Name Validity period
62 b. Forms of Occupational Punishment
ISO 37301 Compliance Management System 2023-2025
i. Demotion of 1 Position Group (TJ 1);
ii. Demotion of 2 Position Groups (TJ 2); and ISO 37001 Anti-Bribery Management System 2023-2026
iii. Termination of Employment. ISO 9001 Quality Management System 2023-2026
Sanctions are given according to the category of violation (light, medium or serious) and affect remuneration and individual
performance assessments.
In 2023, there were 29 indications of violations that were reported and resolved. There were no reports submitted by the
public, including any related to the environment, no reports were legally completed, and no contracts were terminated
with business partners. During the reporting period, there were no significant cases of non-compliance with laws and
regulations that resulted in fines or non-monetary sanctions. [2-27] [205-3] [3-3] [SASB FN-CB-510a.1] [F.16]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
Relationships Between BRI and Brilian Personnel with Work Partners Crime Prevention Procedures
BRI partner management involves the process of registration, selection, supervision, and evaluation of partner performance. Anti-Money Laundering, Counter Financing of Terrorism, and Prevention of Funding for the Proliferation of
This management refers to the Circular of the Board of Directors on Procurement of Goods and/or Services Book 11 on Weapons of Mass Destruction (AML, CFT, and PFPWMD) Policy
Management of BRI Vendors. In implementing this, BRI has developed a vendor management app that is integrated with
BRISMILE and covers the entire process from registration, selection, monitoring, and maintenance, to evaluating partner Responsibility for implementing the AML, CTF, and PFPWMD programs sits with the Special Work Unit (SWU) at every
performance. The app ensures that BRI has a database that supports the procurement of goods and services. [FS1] [FS5] [205-2] level of the organization. BRI’s Head Office SWU is implemented by the Compliance Division, a structural work unit at BRI. In
performing its duties, the Compliance Division reports and is responsible to the BRI Compliance Director.
In selecting new suppliers, BRI sets criteria that adhere to the principle of minimizing the risks of negative social impacts.
BRI has integrated its Code of Ethics with the Company’s procurement principles and policies and strives to disseminate the BRI is committed to complying with all the prevailing laws, regulations and provisions related to preventing money
Code of Ethics to suppliers. The signing of the integrity pact is carried out by the procurement committee, user work units, laundering and the financing of terrorism. In doing so, BRI has developed and implemented the Anti Money Laundering &
vendors, partners, and decision-making officials at each stage of the procurement process. [3-3] [FS1] [FS3] [FS5] [F.19] [205-2] [408-1] Counter Financing of Terrorism (AML & CFT) programs which have been approved by BRI's Board of Directors and Board of
Commissioners. These programs include policies, procedures, internal controls, and systems that comply with Laws of the
Furthermore, in 2023, there were 254 vendors holding the Certificate of Registration (SKT). To obtain the SKT document, Republic of Indonesia concerning Prevention of Money Laundering and Prevention of Terrorism Financing, Bank Indonesia
vendors are required to fulfill the specified criteria outlined in the Fixed Asset Management Policy, as well as the Regulations, and Regulations of the Financial Services Authority (OJK), with storage period for all documents related to
63 Procurement and Registration Terms for BRI's Goods and Services Providers, which includes signing an Anti-Bribery preventing money laundering/terrorist financing set at 5 years.
Declaration. BRI also continues to consider environmental and social criteria as added value in supplier selection, with a
specific focus on Human Rights, including the prohibition of employing underage workers or No Child Labor. [2-6] [204-1] [FS3] AML, CFT, and PFPWMD procedures include:
[B.3] [B.1e] [3-3] [FS1] [FS3] [FS5] [F.19] [205-2] [408-1] CDD procedures involve stringent steps to ensure compliance and identify risks and contain a policy for accepting and identifying prospective
Customer Due Diligence customers/customers/walk-in customers (WIC), requests for data and information, supporting documents, a verification process for prospective
(CDD) customers, and identification of beneficial owners.
To ensure that the procurement process is carried out in accordance with prevailing regulations, BRI regularly audits the EDD procedures involve additional steps to identify risks in greater detail. EDD is carried out thoroughly, especially in relation to managed care
Enhanced Due Diligence
procurement of goods and services to ensure that the process complies with these prevailing regulations and procedures. (EDD) services (trusts), as well as procedures for high-risk categories.
The audit is carried out by both BRI's internal and external auditors. BRI involved its partners in a Vendor Anti-Bribery Determining customers who are categorized as Politically Exposed Persons (PEPs) and grouping prospective Customers, and/or WIC based on the
Politically Exposed Persons (PEPs) level of risk of money laundering and/or terrorist financing.
Survey, as an educational effort that includes disseminating BRI's vision and mission; dissemination of ISO 37001:2016 and
an evaluation of its partners. BRI also organized communication forums to obtain input from partners to improve the Non-face-to-face Customer Due Diligence (CDD) procedures involve customer verification and checking supporting documents. Verification is
Non-face-to-face CDD conducted using biometric factors such as face recognition and retina scans. The required supporting documents include identification documents
Company’s procurement process. [FS9] and sample signatures.
Management of Business Relations with This section includes transaction delays and temporary suspension of transactions, rejection, cancellation and/or closure of business relationships
Prospective Customers, Customers, WIC, with prospective customers, and refunds of remaining customer funds.
and/or Transactions
Monitoring prospective customer profiles, customer transaction activities, as well as compiling a List of Suspected Terrorists and Terrorist
Updating and Monitoring Organizations (LSTTO) and List of Funding for the Proliferation of Weapons of Mass Destruction (LGPWMD).
Cross Border Correspondent Banking Procedures for managing cross border correspondent banking and payable through account.
Fund Transfer Procedures for Fund Transfers, information requests, and reporting on Fund Transfers.
Senior officials of BRI are authorized to make decisions to continue or terminate business relationships and/or
transactions with customers, politically exposed persons (PEP), or beneficial ownerships (BO) that fall under high-risk
criteria. The implementation of AML, CFT, and PFPWMD is also subject to supervision and monitoring by OJK (Financial
Services Authority). Additionally, BRI conducts an annual independent examination to ensure the effectiveness of the
implementation of the AML, CFT, and PFPWMD programs. The last examination was conducted in July 2023.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
AML-CFT Program
Green Financial Crime Prevention
To prevent the use of BRI as a medium for the purpose of money laundering and terrorism financing, BRI carries out pre-
employee screening procedures when recruiting new workers as part of implementing Know Your Employee (KYE). BRI has taken concrete steps to prevent financial crimes related to environmental issues. The AML, CFT and
PFPWMD policies of BRI include provisions for the identification of suspicious transactions related to green financial
crime. BRI has also developed alert parameters for suspicious financial transactions in the AML CFT 3.1 system.
BRI continues to make continuous improvements to the implementation of the AML-CFT program, both internally and at Additionally, BRI has established the Green Finance Crime Task Force, involving the Compliance Division and
the group level. Several improvement initiatives that have been carried out include: other relevant divisions, to facilitate the exchange of information regarding customers indicated or associated with
transactions or activities related to green financial crime.
a. Developing a suspicious transaction monitoring system that utilizes information technology and artificial intelligence
(AI), such as AI for Monitoring Transaction Systems through Graph Technology, Integrated AML CFT Screening
(Watchlist Screening on Account Opening & Transaction Platforms), Risk-Based Approach (RBA) Bankwide, RBA
Customer, AML-CFT System (Menu STR, CTR, IFTI Reporting), Sipesat Reporting Tools, and Tools for Response and Anti-Fraud Policy
Impact Analysis in Compliance Testing on BRIPEDIA.
64 b. Strengthening database screening and customer identification by utilizing the PEP PPATK app. In enforcing GCG, BRI has implemented a series of anti-fraud policies and strategies. This policy reflects the management's
c. Reviewing risk assessments of Money Laundering Crimes and Terrorism Financing Crimes using a risk-based approach commitment to controlling potential fraud and shows the seriousness of the Board of Commissioners and the Board of
(RBA) in accordance with the latest National Risk Assessment (NRA) and Sectoral Risk Assessment (SRA). Directors in providing zero tolerance for all forms of fraud, both from internal and external parties. This is regulated in detail
d. Optimizing the implementation of the AML-CFT program in regional offices and branch offices by increasing the role of in the Circular of the Board of Directors concerning Guidelines for the Implementation of Operational Risk Management
Regional Risk Management & Compliance and Branch Risk & Compliance. (Book V: Anti-Fraud Strategy). [3-3]
AML and CFT Trainings Supervision of fraudulent acts within BRI's internal scope is the responsibility of the Fraud Management & Recovery Desk
as part of the Operational Risk Division under the Director of Risk Management. BRI involves the Directorate of Digital
BRI has designated the AML, CFT and PFPWMD programs as mandatory material in education for new workers and Banking and Information Technology in its efforts to prevent fraud by external parties. [3-3]
other regular training to increase workers' understanding of the implementation of AML, CFT and PFPWMD. In 2023, BRI
organized a Webinar on the AML-CFT 3.1 System and EDD and BO Field Recording in the NDSI Application, and a Webinar Internally, BRI requires the Board of Directors, Commissioners, management, and all employees to sign an anti-fraud
on Invitations for Socialization and Discussion regarding the Implementation of Fund Transfer CDD/EDD Procedures. BRI commitment. Externally, BRI continues to update technology as a fraud prevention measure. BRI provides additional legal
also collaborates with the Professional Certification Institute (PCI) to provide Level 1 and Level 2 Compliance Certification aid for employees who face legal problems from third parties related to alleged fraud in carrying out their duties. However,
for Compliance employees. the provision of legal aid and protection does not apply if the employee is a party reported by the Company and/or has
been found guilty by the Company.
BRI calls on all employees to avoid involvement in all forms of fraudulent activities, communicated through a series of
outreach programs. Although a survey regarding operations with potential risks of gratification has not been carried out,
BRI is aware that every employee in each division has the same potential and risks related to gratification. In 2023, BRI held
dissemination and training on anti-fraud and anti-corruption policies for all employees (100%) and governance bodies and
has disseminated these policies to business partners. [205-1] [205-2]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Integrity in the Workplace Our Commitment to Ethical Business Practices
Anti-Gratification Policy
BRI strictly prohibits giving and receiving gratuities in any form, in line with the prevailing laws. BRI's commitment to
prohibiting the practice of gratification has continued to be strengthened with the issuance of the Anti-Bribery and
Gratification Control Policy. This policy is a guideline for all BRILiaN personnel to prevent the practice of gratification and
bribery that can harm BRI's interests and violate GCG principles. The Anti-Bribery and Gratification Control provisions also
contain a prohibition on direct or indirect political contributions, charitable contributions, and sponsorship.
In implementing its anti-gratification program, BRI has formed the BRI Gratification Control Unit (BRI GCU) which is
responsible for compiling provisions for gratification control, designing outreach programs, managing reports on acceptance
and rejection of gratification, as well as analyzing and administering these reports. This unit is specifically integrated within
the Compliance Division. [3-3]
65 Employees who accept or reject gratuities are required to report to BRI's GCU. Gratification reporting to UPG is done
digitally via the GCG Online System and electronic mail with an address at upg.bri@corp.bri.co.id. The report is then
forwarded to the Corruption Eradication Commission (KPK) via the Online Gratification (OG) application. On average,
reports must be received no later than seven business days from the deadline of thirty business days. Through the GCG
online system, every employee has access to technical governance, such as signing a Code of Ethics compliance statement
and making annual disclosures.
Reporting of giving or receiving gratuities can be reported through: [3-3]
Letter to BRI Compliance Division
Human Capital System (BRISTARS) Email: upg.bri@corp.bri.co.id BRI Building 2, 10th floor,
GCG Online System Jl. Jenderal Sudirman Kav. 44-26
In supporting the anti-gratification program, BRI employees submitted 61 gratification complaint reports to the Compliance
Division in 2023. BRI continues to raise its employees' awareness of gratification by internalizing anti-bribery and controlling
gratification through socialization of provisions, e-learning, and communication materials in the form of videos. [205-3] [205-1]
[3-3]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Cyber Resilience Protecting Our Information Assets
Information Security Governance
Director of Digital and Information Technology Structure of Data Governance Committee
IT Strategy & Application Digital Banking Enterprise Data IT Infrastructure & Director of Digital and Information Technology Chair
Information Security
Governance Division Management & Development & Management Operation Division Division
Operation Division Operation Division Division
Director of Network and Services Vice Chairman (also serving
as Permanent Member)
The Information Technology Steering Committee is the Central Office Committee responsible for providing guidance
and recommendations to the Board of Directors on the planning, governance, development, and operational aspects of Department Head, Data Strategy & Governance Secretary (also serving as
Permanent Member)
information technology. The Data Governance Committee serves as a forum that provides guidance on data governance
and makes decisions regarding prominent issues related to data that cannot be resolved at the level of Data Owners and y Director of Finance Permanent Member
Data Stewards, or at the level of the Data Management Office. y Director of Compliance
y Division Head, Enterprise Data Management
In carrying out their responsibilities, both the Information Technology Steering Committee and the Data Governance
Committee adhere to the Board of Directors' Decree, which regulates the objectives, organization, tasks, authorities, Board of Directors or SEVP of related fields Non-Permanent Member
66 responsibilities, and working procedures related to their functions.
Structure of Information Technology Steering Committee In handling information security, BRI has specifically formed an Information Security Work Unit, led by the Chief Information
Director of Network and Services Chair Security Officer (CISO). The CISO is experienced in the security field and has several certifications such as Certified
Information Systems Auditor (CISA) and Certified Information Systems Security Professional (CISSP). Under the Director of
Department Head, IT Governance Management Vice Chairman (also
serving as Permanent
Digital & Information Technology, this work unit has the following responsibilities:
Member)
y Security Architecture Design;
Department Head, IT Governance Management Secretary (also serving
as Permanent Member) y Operational Security;
y Cyber Risks and Cyber Intelligence;
y Director of Risk Management Permanent Member y Data Loss and Fraud Prevention;
y SEVP, Fixed Asset Management & Procurement y Identity and Access Management;
y Division Head, IT Strategy & Governance
y Division Head, Application Management & Operation y Management, Investigation and Forensics Program; and
y Division Head, Digital Banking Development & Operation y Security Governance.
y Division Head, Enterprise Data Management
y Division Head, IT Infrastructure & Operation
y Division Head, Information Security
y Division Head, Operational Risk
y Division Head, Digital Risk
y Division Head, Distribution Network
y Division Head, Service & Contact Center
y Board of Directors or SEVP of related fields; or Non-Permanent Member
y Division Head, related fields
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Cyber Resilience Protecting Our Information Assets
Information Security Processes And Infrastructure
BRI's cybersecurity management refers to policies related to information security in accordance with the Regulation of In the Respond and Recover pillars, BRI has a Cyber Security Incident Response Team (CSIRT), which will respond
the Financial Service Authority (OJK) Number 38/POJK.03/2016 on the Implementation of Risk Management in the Use to information security problems or incidents. BRI has a protocol for informing the public if an incident occurs, and
of Information Technology by Commercial Banks, ISO 27001: 2013, PCI-DSS, and NIST. BRI also has provisions regarding collaborates with cyber security experts who have global experience in responding to incidents to conduct cyber incident
the security of customer data based on the Circular of the Financial Service Authority (OJK) Number 14/SEOJK.07/2014 forensics and investigations.
on Confidentiality and Security of Consumer Data and/or Personal Information. BRI determines cyber incidents based on
their impact, including regulatory sanctions, data classification, media publications, and services disrupted as a result of the BRI has a set governance for responding to information security incidents that is in line with BRI's Disaster Recovery Plan
incident. (DRP) and Business Continuity Plan (BCP) as outlined in the Circular on Business Continuity Management. The BCP must
be tested at least once a year, involving end-users (end-to-end).
BRI has established a framework for managing cyber security. The BRI Cybersecurity Framework is organized into an
Enterprise Security Architecture (ESA), which refers to the National Institute of Standards and Technology (NIST) Cyber
Security Framework. The ESA is designed based on the latest cyber threat analysis and conditions. Information Security Certification
Certification Type Coverage
67 ISO 27001 BRIAPI, Big Data, Managing Event & Cyber Threat Monitoring, Card
Identify Protect Detect Respond Recover Production, Spacecraft Operation, dan Data Center Facility
ISO 20000 Surveillance Brinets Express, Brilink Mobile, BRImo, Extend Scope Brispot
• Maturity • Security • Security Operation Cyber Incident • IT Recovery
Assessment on Governance Center Response Team (CSIRT) Orchestration
the dimensions of • Awareness and • Threat Intellegence • Strategic Post- External Verification
IT-Security Training • Brand protection Cyber-Attact
• Data Secuity, Analysis
• Gap Analysis Account and Access
and Definition Management To ensure the security of the IT infrastructure and information security management systems, throughout 2023, BRI carried
of Roadmap and • End Point Security
associated action • Application Security out verification by external parties, such as Penetration Testing and Vulnerability Assessment.
plan • Network Security
• Perimeter Security
The ESA consists of the pillars Identify, Protect, Detect, Respond and Recover for information security. The Identify pillar
consists of gap analysis, maturity assessment, and preparation of BRI's security roadmap. In the Protect pillar, BRI applies
various information security technologies and security governance. BRI also has a special function/section in the form of
the Security Operations Center (SOC), which monitors cyber threats continuously (24 hours, every week, for 365 days),
reflected in the Detect pillar. BRI continues to conduct proactive monitoring through threat intelligence services from
international providers. To monitor and mitigate the threat of brand misuse, BRI has a brand protection program to monitor
misuse of the BRI brand on social media. BRI also collaborates with third parties to identify its system vulnerabilities and
independently reviews the bank’s information security in the form of vulnerability assessment penetration tests and
cyberattack simulations (red team).
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Cyber Resilience Protecting Our Information Assets
Increasing Workers' Information Security Awareness and Capability
To increase BRI employees' awareness of information security, BRI regularly implements awareness raising programs Information Security Escalation Process
through various forms and media, including:
BRI has a BRI CSIRT (Cyber Security Incident Response) framework which is regulated in the Cyber Security Incident
1. Privacy Infographics: BRI has distributed a series of infographics through posters and publications regarding personal Management Policy. Were an incident to occur, BRI employees can follow the escalation process as follows:
data protection for all BRI employees to increase awareness and instill a culture of personal data protection in all
operational activities. Pre-Incident Mitigation Techniques Post-Incident
2. Privacy Podcast: The EDM Division, in collaboration with relevant stakeholders, has launched a podcast with the theme
Whistleblower Service Function Work Unit CSIRT CSIRT CSIRT CSIRT
"Implementation of Personal Data Protection and Bank Secrecy in Work Units". and Contact Center
Encountering or Preparation and Detection and Mitigation Report and
Reporting or handling incidents Planning Analysis Evaluation
experiencing events
3. Dissemination and Internalization of Personal Data Protection Culture: This was carried out at the head office and that have the potential
that can be completed by Single
Point of Contact Staff
to, or have jeopardized
Mitigation
branch offices through a series of events throughout 2023. the bank's cyber
security Techniques
IT Help Desk Information
4. E-learning: BRI has made the topic of information security one of the modules in e-learning for all employees. Security Function Risk
Management and
5. Email phishing campaign: BRI has also launched an email blast to campaign against phishing threats Escalation of reporting or
handling incidents
Governance
6. Workshop Privacy Readiness of the BRI Group: This workshop aims to provide the BRI Group with an understanding Communication
68 of the obligations that must be complied with after the passing of the Law on Personal Data Protection, as well as IT Work Unit Information
Security Function
increasing the BRI Group's understanding of the technical implementation of the provisions of the Law on Personal Data Escalation of IT work unit
Director of DTI Management Team
technical support handling CSIRT Coordinator
Protection in each organization. This workshop was attended by guest speakers from the Ministry of Communications Escalation occurs Proposed Disaster BCM Disaster
when an incident Declaration and BCM Declaration and
Activation Critical
and Information of the Republic of Indonesia, held on May 3 2023. Cyber Incident Response is categorized as Activation
Team Information Security Very High or when it
(CSIRT) escalates and cannot
be contained, thus
Escalation of handling that falling into the Very
requires coordination between IT High category.
Work Units and others
Handling of Information Security Violations
Violations of information security/cybersecurity form part of the disciplinary actions of BRI employees as stated in the
Circular on Disciplinary Regulations. Perpetrators of the violations can be processed using fundamental violation metrics
with the codes TSI-19 (failure to maintain the security of IT space and systems in accordance with applicable regulations)
and TSI-20 (failure to maintain user names, passwords, or other IT data access security).
Violators may receive disciplinary sanctions which have an impact on performance evaluations (reduction of employee
evaluation scores (0.25 0.75), salary cuts (10–15%), and other sanctions.
In the pursuit of executing the Corporate strategy for the period 2021 – 2025, the Directorate of Digital and Information
Technology has formulated an IT Roadmap, which is accessible in the BRI Annual Report for the year 2023.
Page 69
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Responsible Financing Products and Policies
BRI’s main business activity of providing loans to customers includes the potential to impact the environment and society, The following is the lending approval procedure carried out by considering ESG:
both directly and indirectly. Therefore, BRI implements ESG factor analysis during customer credit applications and
conducts such analysis for facility applications. This is carried out to assess the risk of customer business activities related to Prosedur Persetujuan Kredit
ESG and sustainability aspects, considering their capacity, commitment, and track record.
Environmental Aspect
In order to mitigate environmental risks arising from financing activities, such as biodiversity risks, greenhouse gas emission Marketing Law and Operational
Compliance Working Unit
risks, and natural disaster risks, BRI implements requirements including environmental permitting documents, PROPER Supervising and
Identifying and
checking the
ratings, green industry standards, waste management, GHG emissions, protection of priority areas, as well as sector-specific considering business
Reviewing
completeness
compliance from Lending
feasibility of Lending Analysis Risk Management
environmental certification documents. prospective debtors
prospective debtors Committee of ESG-related
documents according
including those Managing lending by Approval process to the requirements Monitoring lending
related to ESG issues paying attention to according to provided by the portfolio [FS2]
Social Aspect ESG factors. [FS2] applicable authorities. analyst
The implementation of social risk mitigation in financing is carried out through various means, including customer [FS2][FS15]
69 management analysis, involvement in incidents of forced labor, child exploitation, human rights violations, interaction with
local and indigenous communities, labor rights, as well as policies and implementation related to health and safety.
Governance Aspect
Good Corporate Governance is a form of BRI's compliance with regulators and the implementation of Good Corporate BRI is committed to avoiding several sectors stated in the Negative/Exclusion List Policy, including but not limited to:
Governance. Governance risk management in BRI financing is implemented, among other things, by checking involvement
in incidents of corruption, gratuities, and money laundering. y Cultivation and industry of class 1 narcotics such as marijuana, heroin, cocaine, morphine and opium;
y Chemical weapons manufacturing industry;
In providing lending, BRI refers to the Loan Portfolio Guidelines (LPG). The LPG sets credit requirements, including for the y Industrial chemical industry and any chemical industry that destroys the ozone layer;
use of checklists related to ESG. ESG itself is one of the key indicators in Know Your Customer (KYC) that confirms whether y Alcohol and malt liquor industry;
a prospective debtor has issues related to environmental, social, legal or litigation matters. The results of the KYC process y Gambling and/or casinos;
are outlined in the Business Analysis Memorandum (MAB) document. The LPG also regulates sector classification (SC), y Trade in protected animals and marine biota;
sector acceptance criteria (SAC), and sector limits. [FS2] [FS5] [FS11] [2-12] [FS15] y Direct export of mining products, especially seeds (raw material or cores); and
y Illegal logging.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Responsible Financing Products and Policies
BRI has also adjusted its lending policy for the green sector in line with the implementation of Sustainable Finance, Since 2015, providing lending to customers in the plantation and forestry sectors has been in line with the Moratorium
especially in relation to the Sustainable Business Activity category. on Land Clearing issued by the government. To that end, BRI always explains to every customer from these two sectors
that the lending provided cannot be used to finance the opening of new land. The relevant divisions always monitor the
BRI adopts an externally-based ESG policy as a form of support in achieving sustainable finance. This is manifested through implementation of these provisions and correspond with relevant customers if there are violations.
conducting ESG risk analysis on issued sub-sector policies. In efforts to preserve the environment, including deforestation
prevention, biodiversity protection, and human exploitation prevention, BRI currently maintains specific sub-sector policies Sustainability-Linked Loan
as follows:
As a form of support for clients' efforts to implement ESG principles, BRI issues specific financing policies for clients
y Sustainable Palm Oil Sector Financing Policy [FS1] [FS3] [FS5] [FS11] committed to sustainability principles, known as Sustainability-Linked Loans (SLL). Through SLLs, BRI provides incentives to
This policy requires that debtors and prospective debtors in the palm oil sector have an Indonesian Sustainable Palm clients who successfully achieve the predetermined sustainability KPI targets. Conversely, there are disincentives for clients
Oil (ISPO) or Roundtable on Sustainable Palm Oil (RSPO) certification, or at least have been registered in the ISPO who fail to meet these KPIs. SLLs also serve as a means for BRI to communicate steps and progress in ESG implementation
certification process. Other requirements involve compliance with the protection of priority areas, management of to stakeholders.
greenhouse gas emissions, compliance with the provisions for the production and use of chemicals, management of
70 resources such as land and water, respect for local and indigenous communities, respect for labor rights, adequate Financing Review [FS2] [FS3] [FS5]
implementation of Occupational Health and Safety (OHS) procedures, as well as other provisions in accordance with
those regulated in the policy. BRI continues to review every project that receives financing. Based on the Decision of the Board of Directors (KPB) on
General Bank Lending Policies. Supervision is carried out by reviewing lending documents submitted by the debtor. Regular
y Pulp & Paper Sector Financing Policy monitoring and evaluations are carried out at least once a year to ensure the implementation of sustainable financial
This policy requires debtors in the pulp and paper sector to apply green industry principles, manage waste and principles by customers. One of the methods used is the site visit method. Meanwhile, if a customer's PROPER rating drops
greenhouse gas emissions, One of them is to ensure that the processed wood raw materials come from government- from Blue to Red or Black, BRI will conduct special correspondence to monitor the customer's efforts to restore the rating.
recognized legal sources, and customers in this sector must have the Timber Legality Verification Certification (SVLK).
This policy also requires borrowers in the pulp and paper sector to manage waste and greenhouse gas emissions, For customers or debtors who do not meet ESG requirements, BRI will request information and conduct regular follow-
have clear SOPs regarding raw material suppliers, respect the rights of local communities, comply with the use of by- ups. Observation and collection of information regarding warnings, violations, or ESG-related issues will also be carried out
products, and comply with other provisions in accordance with as regulated in the policy. [FS1] [FS2] as BRI gradually updates debtor ESG compliance data. Monitoring information is recorded in the Customer Visit Report
and the evaluation results are used to review financing to debtors. BRI will also take any necessary approaches, including
In addition to the policies above, BRI considers and regularly monitors customers' PROPER ratings. PROPER is a portfolio management, compliance with regulations, and others. [FS2] [FS3] FS5]
program from the Indonesian Ministry of Environment and Forestry (MEF) that evaluates a company’s performance in
environmental management. This program is specifically implemented for the corporate segment, especially the textile and The results of the review are periodically conveyed through BRI's internal channels, while the distribution of financing
clothing industries that have environmental impacts on their business operations. PROPER ratings received are Gold, Green is reported annually in accordance with the framework. The Annual Report includes eligible assets by project category
and Blue. Gold reflects environmental management that exceeds requirements with sustainable community development. and the remaining balance of undistributed proceeds. BRI has not carried out any special audits related to social and
Green indicates environmental management above requirements with the adoption of a management system. Blue environmental risks. [FS4] [FS9] [FS11]
indicates management efforts in accordance with MEF standards.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Responsible Financing Products and Policies
Sustainable Business Activities [B.1d] [FS7] [FS8] [F.3] Sustainable Funding Portfolio
With a strong commitment to solidify its role as a pioneer in implementing ESG principles, BRI conducts Sustainable In enhancing the implementation of Environmental, Social, and Governance (ESG) principles in the financial aspect, BRI has
Business Activities consisting of two main components: sustainable financing and sustainable funding. BRI's sustainable undertaken sustainable funding activities by issuing a series of bonds and loans based on ESG as follows:
financing activities portfolio includes Sustainable Lending and Bond Investment. Meanwhile, BRI's sustainable funding
activities portfolio comprises bonds and loans. ESG-based Bond
BRI has successfully issued a number of ESG-based bonds. The ESG-based Bond portfolio of BRI until 2023 is as follows:
Sustainable Financing Portfolio [B.1d] [FS7] [FS8] [F.3] [F.26]
BRI demonstrates its commitment to sustainable development through sustainable financing activities, which consist of
ESG-based Wholesale Funding
Sustainable Lending and Bond Investment. Sustainable Lending involves providing credit to Micro, Small, and Medium
Rp 39.60 Trillion
Enterprises (MSMEs) and credits for the Green Sector. In addition to Sustainable Lending, BRI also allocates Sustainable 57.93% from total wholesale funding
Financing in corporate bond investment, particularly through ESG-based Corporate Bond Investment.
Sustainable Financing Activities
Green Bond Inclusivity-based Securities Sustainability Bond ESG-based Repo Sustainability-Linked Loan
Rp 777.28 Trillion
Rp 8.50 Trillion Rp 5.61 Trillion Rp 7.70 Trillion Rp 5.45 Trillion Rp 12.32 Trillion
67.11% 12.44% from total wholesale funding 8.21% from total wholesale funding 11.27% from total wholesale funding 7.97% from total wholesale funding 18.03% from total wholesale funding
71 from BRI’s total corporate
lending and bond investment
BRI Green Bonds
Sustainable Lending ESG-based Bond Investment BRI has issued Green Bonds in accordance with the Regulation of the Financial Service Authority No. 60/POJK.04/2017 on
Rp 772.74 Trillion Rp 4.54 Trillion Issuance and Requirements for Environmentally Friendly Debt Securities (Green Bond) and which follow BRI's Green Bond
67.42% 37.25% Framework. Use of proceeds is allocated a minimum of 70% for financing Environmentally Responsive Public Activities
From BRI’s total lending from BRI’s total corporate
bond investment (ERPA) and a maximum of 30% for financing other general activities, such as the micro, health, and social sectors. BRI has
also selected and evaluated financing portfolios and pipelines that meet the specified requirements.
MSME Green Sector
Rp 690.43 Trillion Rp 82.32 Trillion BRI issued Green Bond Phase I in 2022 with an issuance value of Rp5 trillion and recorded oversubscription of 4.4 times.
60.24% 7.18% In 2023, BRI issued Green Bond Phase II worth Rp6 trillion. This issuance is divided into three series, namely Series A (370
From BRI’s total lending From BRI’s total lending
days) with a coupon of 6.10 percent, Series B (2 years) with a coupon of 6.35 percent, and Series C (3 years) with a coupon
of 6.30 percent.
Eco-efficient Products Environmentally Environmentally Management of
Renewable Energy Friendly Friendly Buildings Biological Natural Green Bond Date Listing Due Date Value Coupon
Rp 6.02 Transportation Rp 2.04 Resources and
Rp 7.50 Series A Stage I July 21, 2022 July 30, 2023 Rp2.50 trillion 3.70%
Trillion Rp 11.24 Trillion
Sustainable Land Use
Trillion Rp 52.82
Trillion
Trillion Series B Stage I July 21, 2022 July 20, 2025 Rp2.00 trillion 5.75%
Series C Stage I July 21, 2022 July 20, 2027 Rp0.50 trillion 6.45%
Conservation of Sustainable Water Other Environmentally
Pollution Prevention
Terrestrial and Aquatic and Wastewater and Control
Friendly Business Series A Stage II October 13, 2023 October 22, 2024 Rp1.35 trillion 6.10%
Biodiversity Management Activities
Rp 0.23 Rp 0.003
Rp 0.55 (EFBA) Series B Stage II October 13, 2023 October 12, 2025 Rp4.15 trillion 6.35%
Trillion Trillion Trillion Rp 1.93
Trillion Series C Stage II October 13, 2023 October 12, 2026 Rp0.50 trillion 6.30%
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Corporate Governance Materiality and Stakeholder Engagement Risk & Crisis Management Business Ethics Information Security / Cybersecurity Sustainable Finance
Responsible Financing Products and Policies
Securities for Inclusive Financing Purposes
BRI 2022 Medium Term Notes 2019 Sustainability Bond
BRI published Medium Term Notes in November 2022 as its commitment to developing sustainable financial practices. BRI issued Sustainability Bonds in March 2019, the first environmentally friendly bonds in Indonesia. As the largest
All proceeds from the issuance of these securities are used for inclusive financing as intended in the Regulation of Bank Sustainability Bond offering in Southeast Asia, it has proved a real contribution to BRI's role in carrying out sustainable
Indonesia Number 23/13/PBI/2021 on Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, business activities. The issuance of BRI Sustainability Bonds complies with the ASEAN Sustainability Bond Standards
Sharia Commercial Banks and Sharia Business Units. Inclusive Financing is the provision of funds provided by the Bank for (ASEAN SUS) with a nominal value of US$500 million and a term of five years.
MSMEs, MSME Corporations, and/or Low-Income Individuals in rupiah and foreign currency.
Sustainability-Linked Loan
BRI issued Bank BRI Medium Term Notes Phase I 2022 with an issuance value of R 5 trillion and all proceeds were used to One of BRI's sustainable financial implementations in financing is manifested in the form of the sustainability Linked Load
distribute micro segment financing. This issuance is divided into two series, namely Series A (2 years) with a coupon of 6.60 (SLL) policy. Through the SLL policy, BRI establishes Key perfomance indicators (KPIs) for sustainability for its customers.
percent and Series B (3 years) with a coupon of 6.98 percent.
On August 30, 2022, BRI successfully secured a syndicated loan in the form of SLL from domestic and international banks
totaling one billion United States Dollars (USD 1,000,000,000) facilitated by the Facility Agent PT Bank HSBC Indonesia and
72 Due Date Date Listing Due Date Value Coupon coordinated by UOB. Withdrawals on the loan were made three times, as follows:
Series A November 24, 2022 November 24, 2024 Rp2.00 trillion 6.60%
1. Facility A amounting to AS$200,000,000 (full amount) from 10 (ten) banks with a Compound SOFR interest rate and a
Series B November 24, 2022 November 24, 2025 Rp3.00 trillion 6.98%
loan period of 12 (twelve) months from September 15, 2022, which will mature on September 15, 2023.
2. Facility B is AS$300,000,000 (full amount) from 9 (nine) banks with a Compound SOFR interest rate and a loan term of
36 (thirty-six) months starting September 15, 2022, which will mature on September 15, 2025.
2023 BRI IV Subordinated Bonds 3. Facility C amounting to AS$500,000,000 (full amount) from 11 (eleven) banks with a Compound SOFR interest rate and
a loan period of 48 (forty-eight) months starting September15, 2022, which will mature on September 15, 2026.
BRI, in July 2023, issued Subordinated Bonds IV. Apart from being an obligation to fulfill BRI's complementary capital, it was
also an effort to realize its vision of becoming a Champion of Financial Inclusion. All proceeds from the issuance of these
securities are used entirely for Inclusive Financing such as financing for MSMEs, MSME Corporations, and/or Low-Income
Individuals in accordance with the Regulation of Bank Indonesia No. 23/13/PBI/2021 2021.
BRI issued Subordinated Bonds IV with an issuance value of Rp500 billion and recorded an oversubscription of 1.77 times.
BRI IV Subordinated Bond has a tenure of 5 years with a coupon of 6.45 percent.
2023 BRI IV Date Listing Due Date Value Coupon
Subordinated Bonds
Series A July 6, 2023 July 6, 2028 Rp0.50 trillion 6.45%
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
73
Social:
IN THIS SECTION
74
Empowering Our People
85
The People
Our Customers
103
People and Communities Around Us
108
Managing Human Rights
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
About Our Employees
Prevention from Discrimination and Harassment
With its diverse group of employees, BRI is committed to upholding the principles of equality, diversity and anti-
discrimination in career development so that they can have equal opportunities regardless of gender, age, ethnicity, religion,
race or other discriminatory aspects. BRI has an anti-discrimination policy in all aspects of human resources management,
including recruitment, career development, remuneration, and more.
In line with this, BRI has a Respectful Workplace policy that is comply with Minister of SOE's Circular Letter No. SE-3/
MBU/04/2022 on Respectful Workplace Policies at State-Owned Enterprises, that is an anti-discrimination policy covering
all aspects of human resources management. [GRI 3-3]
This policy aims to create a work environment that prioritizes mutual respect and is free from discrimination, exclusion, or
restrictions, bullying and harassment, as well as various other forms of violence, both mental and physical, with the aim
of creating an inclusive, conducive and productive work environment to encourage the Company's sustainability, while
upholding high human rights principles. [GRI 3-3]
74
Respectful Workplace Policy Principle
Recognizing and respecting A guarantee from work unit Create and build a work
differences in a diverse work leaders that no employee is environment with respect
environment with various ethnic treated differently because of for each other and no
backgrounds, races, nationalities, their personal characteristics, discrimination, violence or
skin colors, ages, religions, and has equal and fair access harassment in any form.
genders, disabilities, viewpoints, to company facilities and
or other individual characteristics infrastructure.
and points of view, to encourage
a productive work environment.
Talk Show Respectful Workplace Policy
On June 7, 2023, BRI communicated the provisions of its Respectful Workplace Policy to all its employees through
BRI condemns all forms of harassment, both sexual and non-sexual, as well as discrimination by anyone in the workplace a Respectful Workplace Policy Talk Show. The event was attended by all our employees, online and at the venue.
or in work-related activities. BRI considers such behavior unacceptable and contrary to the Company’s values that put an External parties, including personnel from the Ministry of SOE also participated.
emphasis on creating an inclusive and safe environment for all our employees. [GRI 3-3]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
About Our Employees
Composition of Employees
BRI’s provisions for employees refer to Law Number 13 of 2003 on Employment, and on 30 December, 2022, adapted the year 2023, the composition of female employees increased at every level of position. Women are also given equal
Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation. BRI’s Collective Labor Agreement (CLA) is opportunities as men to occupy managerial positions. In 2023, 25.17% of employees at the Junior, Middle, and Top
updated every two years to clarify the rights and obligations of the Company, trade unions and employees, maintain and Management levels were women. This composition represents an increase compared to 2022, which was 22.67%.
improve harmonious working relations between the Company and trade unions, and implement the principles of healthy
industrial relations. [GRI 3-3] [GRI 2-30] [GRI 407-1] Employees with Disabilities [FS4] [F.18]
BRI had 77,739 employees as of December 31, 2023, with 60,084 permanent employees (77.29%), 17,027 contract employees BRI provides equal opportunities for people with disabilities to be involved in BRI business activities by adjusting their work
(22.13%), and 448 trainees (0.58%). All of them are full-time employees without any part-time or uncertain working hours. and types of tasks according to each individual's level of expertise and skills. [GRI 3-3] [FS4] [F.18]
Out of the permanent employees, 39,939 employees, or 66.47% from BRI's permanent employees, are members of BRI
Labor Union (all members of the Labor Union are permanent employees). In this regard, all negotiation outcomes will This commitment is realized through various recruitment programs for prospective employees with disabilities, both in
apply to all BRI employees regardless of their Labor Union membership. regular recruitment and joint recruitment, in the SOE FHCI Joint Recruitment process which is carried out every year. BRI
also takes a number of steps toward implementing equal opportunity recruitment and selection, including:
In terms of gender, the demographic composition of BRI employees in 2023 is 60.8% male and 39.2% female. Regarding
75 education, the majority of employees have attained higher education (Bachelor's and Diploma degrees), totaling 96%. All y Carrying out placement tests to determine interests, talents and abilities;
information about BRI employees from 2021 to 2023 is compiled based on the headcount method by the Human Capital y Providing assistance in the process of filling out application forms and other necessary processes;
Business Partner Division and detailed in the data table on page 163.[2-1] [2-7] [2-8] [2-30] [B.1] [C.3] [F.18] y Providing tools and forms of tests that are appropriate to disability conditions;
y Providing flexibility in the timing of taking tests according to the conditions of people with disabilities; and
Support for Female Employees y Other onboarding programs.
BRI actively supports gender equality by providing a platform for female employees to develop their skills and roles in a BRI is committed to supporting comfort and safety at the workplace for employees with disabilities by providing supporting
professional environment. Gender equality is one of the commitments of BRI and SOEs in Indonesia as a whole. work equipment and physical and non-physical public facilities specifically for those employees. BRI also provides special
training and capacity strengthening, as well as a career management system based on our Talent Development System to
Through the BRILiaN Women Leaders Indonesia (BWLI) program in Human Capital Development (HCD), BRI contributes support the career development of employees with disabilities.
to the efforts made by the Ministry of SOE to increase the number of female leaders in the BRI Group, and supports the
achievement of the Ministry's target of having 25% of SOE leadership positions filled by women by 2023. BWLI is the latest
internal development program that supports BRI selected female leaders by providing a forum for leadership learning and
networking.
BRI is committed to creating comprehensive diversity by supporting employees from various backgrounds, including
diverse experiences, ages, abilities, thoughts, and perspectives. The recruitment of female workers at BRI has increased,
reaching a total of 25,921 individuals in the year 2023. [GRI 401-1] [F.18]
BRI is committed to providing equal opportunities to all of its employees, without discriminating based on gender. In
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Exploring Potentials: Talent Management Initiative
Employee Recruitment Performance Evaluation and Fair Compensation
BRI strengthens its competitiveness by recruiting talented individuals through the BRILiaN Development Center. Through In 2023, 100% of BRI employees received training and reviews of their perfor-
this center, BRI oversees system preparation and digitization of the recruitment process for BRILiaN personnel, and mance and career development. [GRI 404-3]
maximizes their potential to develop into great talents and great leaders. BRI organizes selection (talent attraction) of the
best people from across Indonesia through various programs, such as: Career development programs and employee performance evaluation are mutually exclusive activities. Through employee
evaluation, BRI examines and measures employee abilities in accordance with current and future responsibilities. This
1. BRILiaN Scholarship Program (BSP), a program for undergraduate students with certain BRI employee recruitment allows BRI to develop employee development programs that suit their needs. Employee performance reviews are carried
criteria. out every semester and annually through individual performance evaluation (Individual KPI), team-based performance
2. BRILiaN Creativity Contest Program (BCCP), an individual and team competition for BRI internal and external (Divisional KPI), as well as through regular communication and feedback through Continuous Professional Development
participants to create innovative ideas with a positive impact on the nation and BRI, and the (CPD). By combining these elements, BRI has a structured platform for more in-depth discussions on individual and team
3. BRILiaN Internship Program (BIP), that provides work experience in the administrative and frontline fields. achievements regarding work areas that need improvement, so that it can align its organizational strategy with future goals.
[FS4]
BRI upholds the principle of equality by implementing a performance-driven remuneration strategy and increasing wages
76 for employees based on work performance (merit increases). Incentives and bonuses are given to boost employee
motivation, while salaries and remuneration are considered by taking into account position classification, length of
service, workload, and achievements. This helps the career development of female employees without the risk of gender
discrimination. BRI also pays attention to cost factors and the regional minimum wage so that all BRI employee salaries are
above the regional minimum wage. [GRI 3-3] [GRI 405-2]
The implementation of competitive remuneration is a BRI principle at every position level, including entry level. BRI
provides wages above the minimum wage standard to all employees as an investment to improve the quality of its human
resources. Rewards to employees are delivered through salaries, allowances, incentives, and other benefits as tokens of
appreciation from BRI. [GRI 202-1] [F.20] [FS4]
BRI implements a remuneration policy outside the Board of Commissioners and the Board of Directors in accordance
with Decision of the Board of Directors NOKEP: 208-DIR/SDM/08/2011 on Workers' Wages, including annual salary
adjustments and bonus systems. BRI's remuneration strategy pays attention to effective best practices in the banking
industry and comparisons with the market. BRI regularly participates in the annual banking Total Reward Survey through
an independent consultant as a reference and for adjusting remuneration. [2-19]
To implement the principle of externally competitive remuneration, BRI collaborates with Willis Towers Watson for
benchmarking and salary surveys according to demand. There is no other relationship between BRI and the remuneration
consultant, and the Company ensures compliance with all prevailing regulations regarding its remuneration system. [2-20]
Page 77
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Exploring Potentials: Talent Management Initiative
Long-Term Incentives For Employees
Apart from providing remuneration, BRI also provides benefits to permanent and non-permanent BRI employees in all To increase employee sense of ownership, BRI provides long-term and short-term incentives in the form of share ownership
operational areas as follows: [GRI 401-2] through two programs; the Employee Stock Allocation Program (ESA), and the Employee Stock Option Program (ESOP)
which were implemented in 2016.
Type of Benefit Name of Program Indefinite Specific Time Work
Time Work Agreement
1. Employee Stock Allocation (ESA)
Agreement
This share ownership program is provided in four stages to all levels of employees who meet the criteria set by BRI,
Life Insurance BPJS Ketenagakerjaan, BPJS Yes According to the including length of service, individual performance, and track record of workers in performing their responsibilities. This
Kesehatan, Bereavement Damages Contents of the
program was repeated in 2023 as a continuation of the previous ESA program.
Agreement
Health Insurance Health Care and Social Security Yes According to the 2. Employee Stock Option Plan (ESOP)
Agency (BPJS Kesehatan) Contents of the This plan offers share purchase options at a special price to BRI's high potential talents and value creators.
Agreement
Disability and Incapacity Health Care and Social Security Yes According to the
77 Dependents Agency (BPJS Kesehatan) Contents of the
Agreement Program Jumlah Saham
Maternity leave Maternity leave Yes According to the ESA 959,959,300
Contents of the ESOP 148,926,100
Agreement
Pension Preparation Pension Preparation Period Optional According to the
Contents of the
Agreement
BRI ensures equal pay equity for all employees by establishing the highest salary-to-median compensation ratio without
the highest value in 2023 at 24.29. There has been a 17% increase in the total compensation for the highest individual and
a 30% increase in the median total compensation for employees (excluding individuals with the highest pay), resulting in
an annual total compensation ratio change of 57%. In 2023, about 9.98% of the total BRI workforce received promotions,
comprising approximately 7,762 individuals. [GRI 2-21]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Employees’ Wellness and Mental Health Management
BRILiaN Communities
Mental Health Management
BRI is committed to supporting employees' wellness and mental health to create a workplace culture that fosters
engagement, productivity, and loyalty, aligning with our Core Values AKHLAK BASIC (BRILiaN Assistance Center)
The BASIC application is a dedicated service designed to assist employees in accessing human capital services such as
general consultations, coaching, counseling, financial consultations, health consultations, and the wellness center.
Family-friendly Workplace
BRILiaN Center
y Childbirth and Childcare Supports
BRI provides support to employees for pregnancy and childcare, encompassing various facilities and policies. Employees BRI has established the BRILiaN Center, a facility for employees to engage in physical activities (Fitness Center), hone their
are entitled to a paid maternity leave of 3 months, enabling them to focus on childcare after giving birth. BRI also grants talents and skills, and participate in work-life balance programs.
paid leave to male employees after their wives give birth, for a maximum of 3 working days following the child's birth.
Additionally, BRI offers a comfortable breastfeeding room and childcare center, allowing employees to meet work Pension Program
demands while ensuring the well-being of their families.
y Other Leave or Time-off from Work Policies BRI pays special attention to the welfare of its employees, especially for those entering retirement. The BRI Pension
78 BRI provides leave and time-off entitlements to employees in accordance with legal regulations, while ensuring Program aims to provide the mental readiness, knowledge, insight and skills needed for post-retirement. The program also
that employees' rights are aligned with the agreed-upon terms in the Collective Labor Agreement (PKB) and labor includes entrepreneurship training for retired employees who have successfully set up their own businesses. [GRI 3-3, 404-2]
regulations. Employees can request annual leave, block leave (mandatory 5 consecutive days as part of annual leave),
and other paid leaves for various purposes, such as marriage, menstruation, as well as caring for sick or deceased family The BRILiaN Leader Retirement Program (BLRP) is an example of post-employment training that 601 people
members. joined in 2023.
y Working Arrangement Policy
BRI has implemented a remote working policy. With this policy, employees have the flexibility to work remotely, Apart from training, BRI also provides fair post-employment benefits as part of employee retirement preparations. The
eliminating the need to come to the office or hold face-to-face meetings with other employees. In line with this process of assessing the estimated liabilities for post-employment benefits and long-term employee benefits includes
initiative, BRI also provides several remote working locations (BRIWork) that can be used by employees. BRIWork is service marks, long leave, retirement programs, a post-employment BPJS health program, and other benefits. Employee
located at RO Jakarta 3 Building, Bintaro Branch, Bekasi Branch, and Dewi Sartika Bogor Branch. Additionally, BRI has benefit provisions are based on the Company’s regulations, and the minimum requirements of Law Number 13 of 2003
adopted flexible working hours for units and divisions with regular intensive work periods. on Employment, to ensure the suitability and adequacy of employee benefits. The Projected Unit Credit method is used to
determine post-employment benefits and long-term employee benefits. Every employee must participate in the pension
Physical Wellness Management program through contributions from the Company (50%) and the employee (50%). [GRI 201-3]
y Regular Medical Check-up As of December 31, 2023, the total employee benefits liability was Rp18.88 trillion, which consisted of several components
BRI provides health check-up packages for employees at least once every two years, which include physical such as the re-measurement value of defined benefit pension liabilities Rp1.25 trillion and the remeasurement value of old
examinations. age benefit liabilities Rp85 billion. BRI uses appraisal services from independent actuaries in calculating defined benefits and
other pension programs. [GRI 201-3]
y Health Facilities
BRI provides health facilities in the form of Health Insurance for employees and their family members, covering
guarantees for primary outpatient care, advanced outpatient care, childbirth, dental care, general health examinations,
as well as benefits for eyeglass replacement.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Promoting Sustainable Learning: Strategies in Employee Development
Employee Development Program
BRI’s career development program adheres to the principle of equal opportunity. Every BRI has established various talent development programs to answer the demand for future competencies, including: [GRI 404-2]
employee enjoys the same opportunity to grow and develop through various career
development programs, regardless of factors such as company needs, intended job family,
employee capabilities, performance predicate, talent classification and position availability. Name of Program Description Aim of the Program Total
Participants in
BRI has a Corporate University with campuses throughout Indonesia registered as a 2023
company Job Training Institute (JTI) with the Ministry of Manpower and Transmigration BRILiaN Young Leader Development program for selected young 1. Talent Development Synergy with the Ministry of SOE 42 participants
Services. BRI Corporate University also has an employee education and research institution Indonesia (BYLI) BRILiaN personnel that provides exclusive 2. Accelerating BRI's young talent who have strong potential
career acceleration and development 3. Upgrading competence and skills in leading an organization,
registered with the Ministry of Manpower, making it possible for employees to obtain official
opportunities so they can master the communication, solving problems and decision making
training certificates. [FS4] competencies, knowledge and skills needed to 4. Sharpening strategy development skills, overseeing the
become Indonesian leaders. Company’s operations and developing the Company
In an effort to strengthen individual development for employees, the Human Capital 5. Providing training in building networking both inside and
outside the Company
Development Division, in collaboration with BRI Corporate University, has organized the 6. Promoting nationalism and professionalism.
79 Professional Coach Certification Program in accordance with the International Coaching
BRILiaN Bright Educational program for permanent BRI 1. The Company's commitment is through development 7 Employees
Federation (ICF) standards. Currently, Certified Internal Coaches serve as Leaders as Coaches,
Scholarship Program employees to take a master's degree program programs for BRI's top talent to increase insight, knowledge, (MPA Program)
providing coaching sessions to BRI's talents and other development programs as needed. (BBSP) abroad, funded by the Company. BBSP is and gain exposure through global networking.
given to top talents according to their annual 2. Supporting increasing employee capabilities (top talent) as
performance with the aim of providing world- successor candidates in accordance with the field of science
class learning, global exposure, and networking and master's study
opportunities at the top 30 best universities in 3. Preparing the Company's best employees as BRI's future
the world. leadership cadre .
As of the end of 2023, the Professional Coach Certification Program has educated
185 candidates for professional coaching. BRILiaN Next Leader BNLP is an educational program to prepare 1. Acquiring high-quality employees in accordance with 52 employees
Program (BNLP) new employees from internal sources at the established competencies, sourced from internal BRI staff.
Corporate Title Junior Manager level so they 2. Providing education as preparation for becoming future
can demonstrate maximum performance in leaders of BRI.
accordance with BRI’s operational standards 3. Accelerating BRI employees who align with established
and values. competencies.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Promoting Sustainable Learning: Strategies in Employee Development
To prepare special talented employees, BRI has designed a Systematic Development Program based on "three prongs,"
and a set of competencies from the Human Capital Development Division. The program is expected to encourage the
independence of BRILiaN personnel to build their own careers. In this regard, BRI’s BRILiaN Development Plan (BDP)
platform helps employees improve their performance and that of the Company. The BDP program is also supported by
the BRILiance app, which allows users to collect aspirations and discuss with trainers regarding career and competency
development aspirations, and by the Learning Wallet, which allows users to choose development and training programs
according to their needs. [FS4]
Employee education and training is carried out both internally and in collaboration with external companies certified by
the National Professional Certification Agency (NPCA). The objective is to enhance the quality and credibility of the training.
80
Improving Understanding of Sustainable Finance [GRI 404-2] [FS4] [2-24] [F.1]
To improve employee understanding of sustainable finance, BRI integrates the concept of sustainable finance into
its online learning (e-learning) curriculum. An overview of sustainable finance is one of the BRISMART e-learning
modules that can be accessed by employees. In 2023, 40,362 employees took online sustainable financial literacy
training with a pass rate of 99.78%.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Promoting Sustainable Learning: Strategies in Employee Development
Employee Engagement Grievance Mechanism
BRI is committed to maintaining a conducive work environment, including measuring the level of employee engagement BRI provides a Whistleblowing System (WBS) facility to report violations, including acts of discrimination, exclusion or
through our Employee Engagement Survey (EES), which is not only a tool for measuring the level of engagement, but also restriction, sexual and non-sexual harassment, bullying, and various other forms of violence. Perpetrators who are proven to
a medium for capturing aspirations in improving human capital management. The EES is a survey that all employees take have committed violations will be sanctioned, including termination of employment.
part in that reflects the attitudes, behavior, and relationships between workers, their jobs, and BRI. The Engagement Index
shows the level of employee involvement and commitment to BRI as measured by the average employee score on a scale BRI also provides internal communication facilities for employees through the Human Capital Call Center, BRI HC Assistant
of 1 to 4. This scale includes employee pride in being part of the Company, the desire to remain part of the Company, and and the BASIC menu on the BRIStars app, which is managed by the Human Capital Division. Through this channel,
employee perseverance in providing the best for the Company. employees can convey questions, complaints, suggestions and concerns they may have. In special cases, employees can
carry out coaching with BRI's internal coaches, and counseling with external counselors. BRI guarantees the confidentiality
BRI's Employee Engagement Framework measures quality from the following aspects: of data submitted during coaching and counseling sessions. [GRI 2-26]
1. Understanding of the Company's vision, mission, goals and strategy and their relationship with employee motivation;
2. Leadership credibility;
81 3. Internal communication and collaboration; and
4. Employee welfare that includes employee empowerment; safe and comfortable work environments; learning and
growth opportunities; fair compensation and benefits; attention, recognition, and appreciation; balance between work
life and personal life, as well as overall job satisfaction.
The results of the employee engagement survey are as follows
Description 2023
Engagement 3.49
Scope 100%
Employee engagement plays a role in achieving job satisfaction. One of the indicators of employee satisfaction can be seen
from BRI’s turnover rate. In 2023, the turnover rate was 1.01%, indicating BRI's positive performance in retaining employees
compared to similar industries.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Occupational Health and Safety
OHS Management [F.21]
BRI is committed to employee health and safety through its Occupational Health and Safety Management System Standard Operating Procedures (SOP) for BRI's K3 implementation are regulated in provision No. SO.55-ORD/05/2023 that
(OHSMS) in all work units. The Operational Risk Division (ORD) under the Risk Management Directorate, which is part of includes the following elements:
the BCM Department, is responsible for all aspects of OHSMS, including the preparation, refinement, and implementation 1. Assessment of OHS risks and hazards in the workplace or Hazard Identification Risk Assessment Determining Control
of OHS. The ORD Division Head has the main responsibility for implementing and supervising OHS. The OHSMS policy is (HlRADC) indicators
approved by the Board of Directors through Circular Letter Number: SE.58-DIR/ORD/11/2022 Book 4, which covers various 2. Risk assessment to determine the level of risk of work-related accidents or diseases that have been identified
aspects related to Occupational Health and Safety Management. BRI also involves employees in formulating the SMK3 3. Establishment of an Emergency Response Team in each work unit in stages to:
policy. In brief, these regulations cover the following: a. Conduct regular OHS outreach and emergency response trials, and
b. Emergency response trials at least once a year.
1. The provisions are formulated based on government regulations and the ISO 45001:2018 standard concerning 4. Reviewing and improving OHSMS performance is carried out to ensure the suitability and effectiveness of OHSMS
Occupational Health and Safety Management Systems. implementation. Reviews are carried out on planning, implementation, monitoring and evaluation.
2. The provisions apply to BRI employees and non-employees, such as building managers and vendors/suppliers within 5. Monitoring and evaluation of OHSMS is carried out periodically through inspection, testing, measurement and internal
the BRI operational environment. audit activities on OHSMS implementation.
3. This policy aims to mitigate and control risks in operational activities such as work accidents and work-related diseases, 6. The escalation process in the flow of reporting, analysis and investigation of work accidents is disseminated to all
82 and also regulates OHS mitigation and control efforts in the process of procuring company goods and services. employees, starting from reporting OHS incidents to implementing risk management, providing first aid, carrying out
4. The OHSMS coordination structure consists of:: investigations, to taking corrective action.
a. The Occupational Health and Safety Advisory Committee (OSHAC), which involves elements of management and 7. OHSMS is part of the rights and obligations of every employee so HR management is important in implementing
workers, was formed based on Indonesia laws and regulations and validated by Indonesia’s Manpower Services. the OHS program. To internalize OHS culture for employees, BRI carries out OHS education and outreach using the
b. An Emergency Response Team. following methods:
a. Face-to-face training, webinars, online learning;
OHSMS certification was carried out once again on August 3-4, 2023 to ensure that the implementation of b. Communication media (letters, infographics, videos, podcasts, etc.); as well as
OHSMS at BRI is in accordance with national laws and regulations. Based on the assessment results of PT Multi c. Emergency response trials at least once a year
Certification Indonesia, BRI received a score of 94.26%, or satisfactory criteria, which indicates that BRI has been 8. BRI takes preventive and control measures for operational activity risks such as work accidents and work-related
entitled to a gold certificate. diseases for all related parties, and for the Company's procurement of goods and services.
BRI continuously carries out performance monitoring to evaluate the effectiveness of action plans against predetermined OSHAC’s activities are reported quarterly to the Jakarta Manpower Department as proof of requirement fulfillment and
targets, and improve mitigation actions in the future. The monitoring results are reported to the government and related supervision of OHSMS implementation. To ensure that the implementation of OHSMS at BRI is comprehensive and
parties. BRI also carries out internal and external audits through independent parties regarding the implementation of three complies with applicable standards, several OSHAC members have been certified for a number of competency areas,
OHS in accordance with ISO 45001. namely:
1. General OHSE Expert from Ministry of Manpower,
BRI's efforts to create a safe, comfortable, and conducive working environment have yielded effective results, as reflected in 2. Class D, C, B, and A fire extinguishers,
the low employee absenteeism rate, which was only 1.16% of total working days in 2023. 3. First Aid for Accidents,
4. Junior OHS Experts, and
5. Environmental Certificate.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Occupational Health and Safety OHS Promotion and Emergency Culture
BRI organizes regular safety dissemination and
training sessions to ensure that employees
Hazard Identification, Risk Assessment, and Several actions taken as part of BRI's strategy to manage the risk of work accidents in operational environments include: understand safety protocols and are able to identify
Determining Control (HIRADC) and overcome potential dangers independently.
In addition to risk assessments, BRI also invests in
HIRADC is carried out periodically and includes work Risk Mitigation Actions Note Quantitative Target adequate safety equipment to mitigate risks, such
areas, descriptions of processes/goals/activities, nature as providing light fire extinguishers (APAR), OHS
Tired eyes, eye 1. Eyes stretching Medium risk level according to Low-risk rate
of processes/goals/activities, external and internal legal boxes in every room, first aid rooms and the
irritation, increased 2. Anti-radiation glasses HIRADC documents
aspects, OHS hazards, risk impacts, inherent risks before vision loss BRIMEDIKA Clinic.
control efforts (inherent risks), types of controls, and Fire 1. Automatic circuit breaker Medium risk level according to Low-risk rate
remaining associated risks. 2. Warning sign electrical safety HIRADC documents The executive management's top-down
3. Emergency response procedure commitment to implementing OHS is carried out
4. Emergency Response Team
BRI has designed a Priority and Action Plan (PAP) related through a risk awareness delivery program and
Electric shock 1. Electrical equipment inspection Medium risk level according to Low-risk rate
to OHS, which is based on Government Regulation No. an Occupational Health and Safety Integrity
2. Disseminating information on the HIRADC documents
50 of 2012 and validated by the Ministry of Manpower, to safe use of electrical equipment Pact. This pact strengthens a culture of safety,
83 mitigate risks in accordance with control priorities. PAP Fatigue, 1. Ergonomic body position sticker Low risk level according to Low-risk rate encourages compliance with OHS standards, and
musculoskeletal while working HIRADC documents creates a work environment that respects employee
BRI has also carried out Occupational Health and Safety
disorders 2. Safety meetings, dissemination of health and safety.
Certification, audited by PT Multi Certification Indonesia, ergonomics information
which has been appointed as an OHS Management 3. Stretching while working
Regarding the threat of disaster, BRI carries out
System audit institution from the Ministry of Manpower
Virus transmission 1. Social distancing system High risk level according to Low-risk rate outreach and trials according to potential risks.
and Transmigration of the Republic of Indonesia, (COVID-19) 2. WFH HIRADC documents This includes ensuring employee understanding of
and Accreditation from the National Accreditation 3. Antigen
4. Vaccination
the Emergency Response Plan, and the readiness
Committee.
5. Mask wearing of Crisis Management Team (CMT) members to
mitigate disturbances/disasters.
Potential disaster threats in all BRI work unit areas are
identified through the BRI Threat and Disaster Risk In building a culture of work safety awareness and
Assessment (TDRA) process. The process is carried out response to emergency situations, BRI promotes
regularly and updated according to potential threats risk awareness through letters, standing banners,
and disasters that may occur in each region, based on infographics, videos, webinars, and training. On July
historical data and predictions from relevant agencies. 8, 2023, BRI provided emergency response training
The results of the TDRA assessment are used as a basis to Emergency Response Team BM BRI 2 and Floor
for determining emergency response equipment and Warden at the Head Office.
trial activities that are adapted to threats and disasters.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Sustainability Culture Program : Sustainable Minds, Collective Impact [F.1]
In 2023, BRI introduced Sustainability Culture Program (SCP), an internalization program to raise awareness on sustainability
among BRI employees. This program focuses on Environment, Social, and Government aspects, evaluated through selected
indicators that are related to the daily activities of BRI employees.
For Environmental aspect, BRI employees contribute in reducing the company's greenhouse emission by effectively use
the operational vehicle and electricity. In Social aspect, SCP focuses on human capital development area, using education
and training metrics as the indicator. In Governance aspect, SPC underscores the importance of understanding BRI's set of
policies and procedures, as well as violations evaluation, that can affect the good governance practice at work.
SCP was held throughout the year, divided by two categories: the headquarters, and regional offices. Monitored periodically,
BRI ensured that SCP ran well in 2023 and created positive impact on increasing awareness on sustainability among BRI
employees.
84
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Extensive Banking Access [FS15]
Indonesia, the world's largest archipelagic nation (with over 17,000 islands), is home to a population of more than 270 Through the hybrid bank business model, BRI is capable of providing affordable and easily accessible financial solutions
million people, characterized by a remarkable diversity. This diversity is demonstrated in the variety of ethnicities, cultures, for all segments of society. BRI integrates the conventional banking model, relying on physical presence, with elements
languages, and societal beliefs. Amidst this diversity, Bank Rakyat Indonesia (BRI) is dedicated to serving and addressing the of digital innovation. This business model is reinforced by BRIBrain, formed by combining artificial intelligence and big
financial needs of the entire spectrum of society, encompassing each and every social, economic, and cultural background. data analytics as a mechanism for accurate and precise business decision-making. Moreover, the use of various digital
[FS16] innovations aims to enhance the quality of the digital products and services offered by BRI.
BRI plays a pivotal role in efforts to enhance financial inclusion, ensuring that all segments of society have easy and
affordable access to financial products and services. Additionally, it supports equitable economic growth across the nation.
BRI is committed to providing access to affordable financial products and services, tailored to the needs of its customers.
HYBRID BANK
Services must be capable of reaching those who have been underserved by financial institutions, such as individuals with
limited access to financial services, low-income individuals, economically disadvantaged women, students, Indonesian Digitizing Core
~7,755 Outlets
migrant workers, people with disabilities, and the elderly. In order to reach every stratum of society, BRI has established Digitize existing services and transactions (business
+686,128
process) to boost productivity & unleash the
potential E-Channel
priority initiatives, including:
85 Digital Loan Mobile Banking • +1.000 Branches & Sub Branches
Underwriting Super Apps • +6.600 Micro Outlets
Outlets • 860 Cash Offices & Payment Points
Extensive Banking Access
Smart Virtual • 12.263 ATM
Providing and expanding access to financial products and services evenly, through BRI work units, digital banking Assistance
for Customer E-Channel • 9.007 CRM
• +664.8001 EDCs
applications, and smart agent services. BRI's services must be capable of reaching all segments of society, including • 57 E-Buzz
underserved groups.
Digitizing Ecosystem
+740.000 Agents
Financial Products and Services Build ecosystem to offer products and services
beyond core business to leverage new liquidity, BRI Branchless Banking
new opportunities, and new sources of growth
Continuously developing and offering affordable financial products and services tailored to customer needs, including
Digital Ecosystem Ventures Capital
savings, loans, and insurance products. platform (B2B, • Simple Financial Transaction Services (i.e., money
B2B2C) transfer, cash withdrawal, billing payment)
• Loan Referral
• Saving Referral
• Micro Insurance Referral
Digital Partnership
Non-Financial Support & Collaboration
Providing non-financial support in the form of community empowerment programs to enhance financial literacy,
improve financial well-being, and scale up the businesses of customers. Specifically, businesses owned by customers
from underserved groups. New Digital Propositions
~27,000
Create and launch an independent greenfield digital (~73,000 UMi Holding)
bank to tap the untapped segment and embedded
in customer’s life Experienced Financial Advisors
Customer Well-being
Digital
loan BRI Digital Advisors
Safeguarding the financial well-being of customers, including ensuring that customer loans are calculated based on
Digital Acquisition, Digital
their ability to repay. BRI also ensures fair treatment for all customers by adhering to the principles of a Fair Marketing Digital Digital Digital Transaction, and Digital Education
Saving Bank
Saving
Digital Capabilities
Communication Policy: Transparency, Fair Treatment, Reliability, Confidentiality, and Consumer Data Security, as well as
handling complaints and resolving customer disputes in a simple, fast, and affordable manner.
Physical Presences
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Conventional Access
BRI's banking network spans widely across Indonesia, serving as the
backbone of the national economy with a deep presence in various
regions, from major cities to remote villages. BRI continues to reach
Indonesian communities, both in urban areas and in 3T regions
(remote, frontier, outermost), with over 7,700 branch offices spread
throughout Indonesia. Additionally, BRI operates 4 Bahtera Seva
vessel hubs to ensure banking services are accessible to communities
residing in island regions.
On September 13, 2021, BRI, along with Pegadaian and Permodalan
Nasional Madani (PNM), formed Ultra Micro Synergy (UMi) to
86 expand public access to financial services. UMi aims to empower
communities to access banking products and services. This ecosystem
has been developed through the integration of three development
phases: empowerment, integration, and upgrading, where each
customer can access financial products and services from three entities
simultaneously: BRI, Pegadaian, and PNM.
To accommodate the need for financial service access, Ultra Micro Sumatera Kalimantan Java Sulawesi and Maluku Bali and Nusa Tenggara Papua
Synergy has built SenyuM outlets, which integrate financial services
Branch Office: 95 Branch Office: 40 Branch Office: 216 Branch Office: 57 Branch Office: 32 Branch Office: 13
and products between BRI, PNM, and Pegadaian. These SenyuM Sub-Branch Office: 105 Sub-Branch Office: 42 Sub-Branch Office: 328 Sub-Branch Office: 42 Sub-Branch Office: 26 Sub-Branch Office: 13
outlets provide convenience for customers of the three entities to BRI Unit: 1,005 BRI Unit: 379 BRI Unit: 2,801 BRI Unit: 551 BRI Unit: 295 BRI Unit: 86
Cash Office: 75 Cash Office: 23 Cash Office: 341 Cash Office: 36 Cash Office: 20 Cash Office: 10
access comprehensive financial services in one place without the Teras BRI: 217 Teras BRI: 96 Teras BRI: 478 Teras BRI: 52 Teras BRI: 117 Teras BRI: 17
need to visit each office. As of 2023, there are 1,018 co-location SenyuM Teras BRI Cars: 2 Teras BRI Cars: 6 Teras BRI Cars: 59 Teras BRI Cars: 43 Teras BRI Cars: 4 Teras BRI Cars: 1
Teras Kapal BRI: 1 Teras Kapal BRI: 0 Teras Kapal BRI: 1 Teras Kapal BRI: 1 Teras Kapal BRI: 1 Teras Kapal BRI: 0
outlets spread across Indonesia, ready to serve customers. BRI Payment Point: 2 BRI Payment Point: 3 BRI Payment Point: 42 BRI Payment Point: 2 BRI Payment Point: 1 BRI Payment Point: 0
Page 87
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
E-Channel BRI
BRI E-Channel plays a crucial role in providing access to financial services across Indonesia. With over
686 thousand BRI E-Channels, including ATMs, CRMs, EDCs, and E-Buzz, spread across the nation,
including in 3T (frontier, outermost, and underdeveloped) regions, it enables people to easily conduct ATM
12,263 units
E-Buzz
57 units
CRM
9,007 units
EDC
664,801 units
banking transactions without needing to visit branch offices.
Agent [FS16]
BRILink Agents are a cornerstone of BRI's financial inclusion strategy. They are crucial partners in bringing banking services to
areas that may be challenging to access through conventional service offices. BRILink Agents are customers who collaborate
with BRI and are capable of serving the community by facilitating banking transactions without the need to visit a BRI office.
87 As independent partners of BRI, BRILink Agents operate in various layers of society, ranging from remote villages to urban
areas. Their responsibilities encompass a range of services, including account opening, cash withdrawals, bill payments, digital
financial transactions, and providing recommendations for loan applicants. The presence of BRILink Agents not only facilitates
public access to banking services but also brings benefits to the agents themselves. BRILink Agents receive a sharing fee for
each transaction conducted, presenting the potential for additional income. With a spirit of economic empowerment, BRILink
agents serve as a bridge between the community and the banking world, reinforcing the concept of financial inclusion and
enhancing well-being throughout Indonesia. Through a close partnership with BRILink agents, BRI continues to demonstrate its
commitment to being a bank that is not only nationally significant but also close to the hearts of the people.
Sumatera Kalimantan Java Sulawesi & Maluku Bali & Nusa Tenggara Papua
Transaction Volume
Number of Transaction 165,053 Agents 56.500
56,500 Agents 395.383
395,383 Agents 76,747 Agents
76.747 39,070 Agents
39.070 8,065 Agents
8.065
22,28%
22.28% 7.63%
7,63% 53.37%
53,37% 10,36%
10.36% 5,27%
5.27% 1,09%
1.09%
Rp1,427.6
Trillion
Rp1,297.7
740.818
740,818 Trillion
BRILink Agents 1,096.61
million
2022 2023
Page 88
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Digital Points of Access
BRI recognizes the necessity of digital transformation in delivering excellent service to customers. In addition to conventional banking access, BRI is developing digital point of access to make banking services more accessible to customers.
BRImo QLOLA: Ease of managing the supply chain for BRI Bank customers with Qlola Cash Management
BRImo is BRI's digital banking super app that provides
convenience for customers to conduct transactions using QLola by BRI is a recent product innovation, presenting an integrated business solution platform that streamlines customer access to various BRI
only their smartphones. BRImo can be accessed anytime products and services with just a single login.
and anywhere and, in addition to common transactions
such as transfers and bill payments, customers can also Supply Chain Management (SCM) is one of the features in Qlola by BRI, providing invoice management services to facilitate customer supply chains.
open savings accounts, manage loans, invest, top up
e-wallets, purchase mobile credit, and access information This feature integrates BRI services with payment systems and loan facilities.
about various attractive promotions.
The SCM feature in Qlola by BRI collaborates with various principal companies, making it easier for customers to transact with SME partners. SCM in Qlola by BRI offers tools
and functions to manage and coordinate the flow of invoices from suppliers to principals and from principals to distributors with the aim being to enhance efficiency, reduce
88 costs, and improve overall collaboration in the supply chain.
BRI Customers As a forward-looking step, BRI will continue to develop a user-friendly and reliable platform, enhancing digital supply chain financing services and integrating them with
Transaction Volume Number of Transaction
using BRImo flagship features such as fund transfers and payments usable by various segments, from wholesale to small-scale businesses (SMEs).
Rp4,158
Trillion
3,088.8 Mn Rp31.6 Mn
Rp2,669
Trillion Rp23.8 Mn
1,825.4 Mn
Transaction Volume User
Vendor Financing Distributor Financing
2022 2023 2022 2023 2022 2023 6,788,672 billion 52.117
52,117
47,313
47.313
5,070,180 billion Invoice Invoice
2022 2023 2022 2023 Supplier Principal Distributor
• Vendor Financing Approval
• DF Financing Application
• Transfer of AP and AR
receivables
Vendor Financing • Transfer of AR receivables Distributor Financing
Proposal with DF backup Approval
Page 89
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Mobile SABRINA
SenyuM Mobile is an application accessible to all segments of society, especially the ultra-micro segment. SenyuM Mobile Sabrina is a virtual assistant based on artificial intelligence (AI)
offers ease of access for customers to various financial products and services from BRI, Pegadaian, and PNM. Some of the technology developed by BRI to provide convenient services and
accessible services include savings products (Simpedes UMi BRI), investments (Tabungan Emas Pegadaian), and a referral information to customers and potential customers. Sabrina can assist
system for financing, ranging from PNM's Mekaar group and pawn services from Pegadaian, to loans from BRI. Currently, customers in obtaining information about products, promotions, and
SenyuM Mobile can be downloaded via Android-based smartphones by visiting the Google Play Store. the nearest BRI ATM/Branch locations, and has been integrated with
BRImo, allowing customers to check account balances and transaction
Since September 30, 2023, BRI has expanded the scope of SenyuM Mobile, allowing end users access to the application information.
(SenyuM Mobile Self-Serve) to access a more comprehensive range of products. These products include loans, savings, and
investments offered by the three entities. By the end of 2023, a total of 1.9 million customers had utilized SenyuM Mobile to Sabrina also serves as one of the frontlines in facilitating customer
access financial services. inquiries and complaints regarding the banking services provided by
BRI. The number of messages sent by users to Sabrina reached 55.6
89 million during 2023, 19.12 million messages in 2022, making Sabrina
Percentage of Customer Acquisition through SENYUM Mobile Based on Product 2023 the most preferred channel for users to contact BRI. The fallback rate,
Numbers of indicating unanswered user questions by Sabrina, continued to decrease from 29.46% in 2022 to 17.8% in 2023. This positive
Customer Acquisition
3.73% performance is supported by user satisfaction survey, where in 2023, approximately 69.8% of users expressing satisfaction
1,959,449 3.46%
with the services provided. This figure increased from 2022, with 57.7% satisfaction rate.
Mekaar Lending 73,062
8.58%
Simpedes UMI 67,702
Pegadaian Gold Savings 168,048
59.90%
242,627 24.34% Pawn Lending 476,990
2022 2023 BRI Lending 1,173,647
Page 90
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Financial Products and Services
In addition to conducting business and operations like any other bank, BRI consistently endeavors to support government programs, one of which involves enhancing financial inclusion in Indonesia. BRI is committed to ongoing innovation by providing
various types of financial products and services that not only meet the broad financial needs of customers but also reach out to communities that have not yet or are underserved by banking services. BRI continues to strive to ensure that all layers of society
in Indonesia have access to banking services, anytime and anywhere.
Saving Products
Simpedes Simpedes UMi Simpedes TKI
Total Accounts: 133.46 Million Total Accounts: 13.5 Million Total Accounts: 72 Thousand
A savings product for the community that can be A specialized product for the ultra-micro community, Dedicated to migrant workers to facilitate their
served in all BRI branches, equipped with BRI Card particularly aimed at Pegadaian and PNM customers transaction processes, including the distribution or
which functions as an ATM card and a debit card. who do not yet have a deposit account with BRI. The collection of migrant workers' salaries.
product can be accessed with a general Simpedes
savings book and a personal Simpedes GPN-labeled
90 ATM card.
Simpedes BISA BritAma BritAma Junio
Total Accounts: 298 Thousand Total Accounts: 23.46 Million Total Accounts: 2.28 Million
Rp
A savings product with 3 main features in a single Includes e-banking facilities and a real-time online A savings product designed for children to cultivate
account opening: savings/transactions (main system, allowing customers to transact anytime and a savings culture from an early age, equipped with
account); investments (term deposit and DPLK); anywhere. BritAma is equipped with complimentary e-banking facilities, financial planning features (Junio
protection (micro-insurances AM-KKM, Rumahku, accident insurance, e-banking features, and Rencana), personal accident insurance, and a visually
and business premises damage). competitive interest rates. appealing debit card.
Rp
BritAma Bisnis Simpanan Pelajar (SimPel) TabunganKu
Total Accounts: 553 Thousand Total Accounts: 30.26 Million Total Accounts: 17.09 Million
A savings product prioritized for business use, A savings product designed for students with easy A savings product for individual customers with easy
providing greater flexibility in transactions, clearer and simple requirements. This service offers several and lightweight requirements, issued in collaboration
transaction record-keeping, and enhanced benefits attractive features within the context of education with banks in Indonesia to encourage a savings
to support customers' business needs. and financial inclusion to promote a culture of early culture.
savings.
Page 91
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Lending Products
Kupedes (BRI Commercial Micro Loans) KUR (Government Subsidized Loans) Mikro KUR Super Mikro PNM Mekaar
Outstanding: 212.3 T Debtors: 4.7 Million Outstanding: 219.9 T Debtors: 8.8 Million Outstanding: 2.8 T Debtors: 578 Thousand Outstanding: 11.8 T Debtors: 4.06 Million
Products intended for individual micro-enterprises Financing provided to startup micro-entrepreneurs Special financing for new customers, targeting Launched in 2015, Mekaar is a capital loan service
(both business entities and individuals) in need of with loans ranging from Rp10 million to Rp100 workers affected by job loss or housewives with for economically vulnerable women engaged in
financing within the Kupedes ceiling limit. Applicable million per borrower, in the form of Working Capital productive businesses. The maximum loan is Rp10 MSMEs with limited access to working capital/
to all sectors including agriculture, industry, trade, and Credit (KMK) with a maximum loan period of 3 million with a loan period of up to three years or up business financing.
others. years or Investment Credit (KI) with a maximum to five years for Investment Credit (KI).
loan period of 5 years.
91 PNM Mekaar Syariah PNM ULaMM PNM ULaMM Syariah Product of Pegadaian
Outstanding: 29.76 T Debtors: 10.67 Million Outstanding: 2.86 T Debtors: 58 Thousand Outstanding: 1.27 T Debtors: 48 Thousand Outstanding: 67.6 T Debtors: 7.1 Million
A group-based empowerment service based on A capital loan service for micro and small businesses The disbursement of financing adheres to Islamic Pegadaian's loan products are broadly divided into
Islamic principles, compliant with fatwas and/or through direct financing to individuals and businesses. principles based on fatwas and/or Shariah two categories: pawn and non-pawn products.
Shariah compliance statements from the National ULaMM provides training, consultation, mentoring, compliance statements from the National Sharia
Sharia Board of the Indonesian Ulema Council, aimed as well as financial management and market access Board of the Indonesian Ulema Council for MSME
at economically vulnerable ultra-micro women support for clients. entrepreneurs.
entrepreneurs.
BRIGUNA Purna KPR Green KPR Subsidi
Outstanding: Outstanding:
Debtors: 131 Thousand Debtors: 89 Outstanding: 9.46 T Debtors: 69 Thousand
10.24 Billion 95.46 Billion
Loans provided to prospective borrowers/debtors Homeownership loans specifically designed for Homeownership loans (KPR) for low-income communities
with repayment derived from a fixed income financing the purchase of new homes with a green (MBR) with a maximum family income (husband + wife)
of Rp8 million per month* for families purchasing their
source or pension funds. housing concept. first home, or those without a home, or have not received
housing subsidies before. The house must be occupied and
cannot be sold or rented out for the first five years.
Page 92
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Insurance Products
AMKKM
Policy: 14.6 Million
Micro Insurance - Health, Accident, and Life Insurance is an
insurance with affordable premiums and can be claimed
quickly through BRILink.
Asuransi Mikro:
RumahKu & Kerusakan Tempat Usaha/KTU
92
Policy: 17.7 Million
Asuransi Mikro Rumahku provides protection against
damage to the insured residence or business premises due
to one or more perils listed in the policy.
Asuransi Mikro KTU (General Insurance) provides
compensation in the form of money if the insurance
participant experiences damage to the business premises
due to one or more disasters listed in the policy.
Page 93
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Non-financial Support [F.26]
As a bank committed to financial inclusion and literacy, BRI recognizes that empowering micro, small, and medium Empowering customers is crucial to achieving sustainable financial inclusion. To attain this goal, BRI has developed an
enterprises (MSME) is not only about access to financial products and services. Empowering MSME also involves opening innovative framework that considers two critical aspects: the level of entrepreneurship, and literacy. Through a holistic
doors of opportunity through various empowerment programs to provide an understanding of the challenges faced by approach, BRI's framework categorizes customers into three levels of entrepreneurship: 'Unfeasible Unbankable,' 'Feasible
MSME businesses and offer sustainable solutions. Unbankable,' and 'Feasible Bankable.' Each entrepreneurship level has distinct empowerment program approaches,
depending on the literacy level of each individual.
In this dynamic era, where technological advancements, global markets, and social changes occur rapidly, MSME needs
to be encouraged to adapt and thrive. BRI, as a partner to MSME, serves not only as a financial institution but also as an y Customers with unfeasible unbankable entrepreneurship levels are those who do not meet the criteria for financial
accelerator that provides guidance, mentoring, and other resources to assist MSME practitioners. institution financing and are considered financially unviable by conventional banking due to their high level of risk.
Customers at this level are focused on obtaining basic literacy programs such as an introduction to banking products
The significance of empowering MSME for BRI goes beyond business growth and is closely tied to social responsibility and and services, as well as an understanding of basic financial management, followed by knowledge of business literacy.
a strategic role in building an inclusive economic ecosystem. By empowering MSME, BRI contributes to shaping a more y Customers with feasible unbankable entrepreneurship levels are those who meet the criteria for financial institution
93 resilient, competitive, and sustainable society. Thus, MSME empowerment is not just a mission but also a path towards a financing but are not yet financially viable for conventional banking. Customers at this level are directed to receive
better future, where every small enterprise can grow into a reliable and sustainable economic force. business literacy programs such as managerial capacity enhancement, insights into legal/compliance aspects, and an
understanding of industry and market comprehension, followed by basic literacy programs.
y Customers with feasible bankable entrepreneurship levels are those who meet the criteria for financial institution
financing and are financially viable for conventional banking. Customers at this level are focused on receiving a larger
Entrepreneurship Level Literacy Rate
portion of business literacy programs, followed by digital literacy programs such as Literacy for MSMEs aimed at Going
Modern, Going Digital, and Going Global.
Basic Literacy Business Literacy Digital Literacy
FRAMEWORK
Feasible
Bankable y Financial inclusion y Increased managerial Literacy to MSME
By understanding that each individual has unique qualities and challenges, this framework provides a foundation for the
(introduction to capacity business players
banking products y Legal and with the goals of:
development of more effective and targeted empowerment programs. Through collective efforts, we can ensure that every
and services) compliance y Go Modern
Feasible
y Basic financial y Culture of innovation y Go Digital
customer, regardless of their entrepreneurship and literacy levels, has fair and sustainable access to financial resources that
Un-bankable management y Knowledge of the
industry and market
y Go Global support economic growth and shared prosperity.
conditions
y Long term mindset
Unfeasible y Business scale
Un-bankable
Literacy Business Literacy Digital Literacy
Entities
Page 94
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Empowering Ultra Micro Business Groups [FS16]
BRI's successful role in providing integrated financial solutions for the community is reflected in its contribution to The manifestation of UMi synergy to serve customers is reflected through three main initiatives, including:
enhancing financial inclusion in Indonesia. Since 2021, BRI has embarked on a journey with PT Pegadaian and PT
Permodalan Nasional Madani (PNM) in a synergistic holding company called Holding Ultra Mikro (UMi). This step aligns
27,047 2,434 44,106
with BRI's spirit to improve economic performance and proactively achieve national financial inclusion targets. Mantri (Micro (Marketing Officer - CRO, AO (Account Officer)
Marketing Officers Marketing Officer) BRI Fronting, Marketing Executive)
The presence of UMi opens broader access to affordable financial solutions, supporting national economic growth. With
these initiatives, BRI continues to play a pioneering role in bringing positive change to the financial industry in Indonesia.
Empowerment of Underprivileged Women Through the UMi Ecosystem
The key to improving financial inclusion begins with a profound understanding of the needs of customers and potential Through PNM Mekaar, the UMi ecosystem provides access
customers, as well as understanding the obstacles they face in meeting their banking service needs. UMi provides a more to capital, coaching, and capacity building, especially for 15.1 Million Rp 42.0 Trillion
housewives. Female Debtors
comprehensive and structured empowerment concept for ultra-micro business actors, known as the Ultra Micro Business
94 Journey, with the expectation that micro and ultra-micro business practitioners can move up the ranks.
As of December 2023, PNM Mekaar has successfully disbursed loans to 15.1 million customers with total outstanding debts
Empowering customers Integrating customers Elevating customers to a reaching IDR 42.0 trillion. This program not only provides financial capital but also provides intellectual and social capital as
to become independent into a broader community higher level of microfinance
a boost to empower vulnerable women's groups. BRI is determined in its continuing support for the Ultra Micro Business
entrepreneurs (Community and various products (Fund services (Advancement
(UMi) group through various progressive initiatives. One flagship program is group literacy enhancement that allows
Empowerment through PNM) development through BRI and together with BRI)
Pegadaian) Mekaar customers to engage by opening UMi Simpedes Accounts. Financial literacy education is realized through weekly
group meetings (PKM) guided by the Business Capacity Development Division (PKU) Akbar.
During the empowerment phase, PNM and BRI collaborate to help guide prospective unbanked, ultramicro customers Additionally, BRI targets specific segments to support female micro, small, and medium-sized enterprise (MSME)
toward financial independence—especially entrepreneurs in the women-focused PNM Mekaar financial empowerment practitioners who already have bank accounts and business registration numbers (NIB). This effort is accompanied by
program. financial and digital literacy training, with active participation from entrepreneurs in the Mekaar Group.
In the integration phase, Pegadaian and BRI address the individual lending needs of customers who have transitioned to BRI runs an additional collaborative initiative with Grab Indonesia through the development of the UMi business
becoming banked. With their empowerment and enhancement, BRI can then upgrade these ultra micro customers to the community to create synergy supporting local economic growth.
micro segment.
BRI runs an additional collaborative initiative with Grab Indonesia through the development of the UMi business
Notable financial brands in Indonesia that empower, integrate, and upgrade customers and foster financial inclusivity community to create synergy supporting local economic growth. In line with the digital transformation trend, BRI utilizes
through ultra-microfinance include UMI tailored Mobile Banking Solutions (Senyum Mobile), the Ultra Micro service center social media as an education and collaboration platform. Through the establishment of the SenyuM Community accounts
(SenyuM Outlets), UMI Savings Account (Simpedes UMI), Tabungan Emas (gold savings), Gadai Emas (gold pawn), BRI on Instagram and Facebook,
Loans, and PNM Mekaar.
Page 95
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
BRI has successfully formed an active social media community Desa BRILiaN (BRILiaN Village)
where these accounts serve not only as information sources
for UMi customers but also as platforms for collaboration in BRI has a special program targeting villages across Indonesia to develop flagship businesses in each of these villages. This incubation program aims to create role models in village
digital financial literacy with the Creative Economy Agency development through the implementation of excellent leadership practices and a collaborative spirit to optimize the village's potential based on Sustainable Development Goals (SDGs).
(Bekraf ) and the Financial Services Authority (OJK). Through this program, BRI also optimizes the role of Village-Owned Enterprises (BUMDes) and encourages citizen participation as intermediaries in financial literacy and inclusion
activities in the village, serving as BRILink and UMi Agents. BRI also deploys 1 (one) BRI Marketing Unit (Mantri) in each village to assist agents in developing their businesses. As of 2023,
Additionally, BRI has designed the BRILink Mekaar Agent the "BRILiaN Village" program has been actively followed by 3,178 villages that are moving, initiating, and committed to progress through planned programs.
formation program to expand service reach. By focusing on
agent formation, BRI has accelerated financial service access
for UMi groups and created a robust network at the local level.
Combination of 4 Ecosystem Aspects
Village-Owned Enterprises (BUMDes) Digital Innovation Sustainability
Social Empowerment in UMi [F.28]
The active role of BUMDes as a mover of village Digitalization in villages can be implemented optimally, Villages that are creative in solving Resilient villages that are able to improve the welfare
The presence of UMi in facilitating integrated banking access not only has the
95 economies by utilizing village funds for productive including digital finance and the use of BRI digital products community social problems. of their people with the village's superior sectors on an
potential to accelerate grassroots economic development but also promotes
activities. (BRILink, Web Pasar.id, Stroberi). ongoing basis.
social empowerment in the community through various available programs.
1 Group-based Literacy Enhancement Program
• 12.8 million Mekaar customers have participated in opening UMi
Simpedes accounts.
• Financial literacy education through Weekly Group Meetings
(PKM) conducted by the Business Capacity Development Division
(PKU) Akbar.
Targeted Small Business Course for Female Entrepreneurs DESA BRILiaN BUMDes Business Profile
2
• 1,015,000 customers now possess bank accounts and business
registration numbers (NIB).
• Over 2,027 Financial and Digital Literacy Training sessions have
been conducted, with participation from more than 113,125 female COMMERCE FISHERIES
424 BUMDes 32 BUMDes
UMi entrepreneurs from Mekaar Groups.
3 UMi Business Community Development with Grab Indonesia SERVICES LIVESTOCK
• 8,691 UMi businesses have joined the program across 8 cities 717 BUMDes 48 BUMDes
(Samarinda, Garut, Pekalongan, Sidoarjo, Kediri, Cilacap, Bantul,
Tasikmalaya).
AGRICULTURE AND
4 Marketing through Social Media/Social Media Marketplace PLANTATION
VILLAGE TOURISM
867 BUMDes
• Establishment of the SenyuM Community Accounts on Instagram 139 BUMDes
and Facebook as platforms for UMI customer education and
collaborative digital financial literacy with BI and OJK.
8,017 followers on Instagram Sumatera Kalimantan Jawa Bali & Nusa Tenggara Sulawesi Maluku & Papua TOTAL MANUFACTURING OTHERS
753 BUMDes 198 BUMDes
23,000 followers on Facebook 766 Desa 157 Desa 1,547 Desa 180 Desa 378 Desa 49 Desa 3,178 Desa
5 Formation of BRILink Mekaar Agents BRILiaN BRILiaN BRILiaN BRILiaN BRILiaN BRILiaN BRILiaN
• The acquisition of BRILink Mekaar has reached 151,950 agents
with a total transaction value of Rp41 trillion.
Page 96
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Our People Our Customers People and Communities Around Us Managing Human Rights
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Rumah BUMN Klaster Hidupku klasterkuhidupku.bri.co.id
Rumah BUMN serves as a collaborative platform for state-owned enterprises (BUMN) to actively shape the digital Klaster Hidupku is a marketing strategy for BRI's products and services to micro-communities through the formation of
economic ecosystem. Through mentoring programs, Rumah BUMN is committed to enhancing the capacity and business groups based on common interests, environmental conditions, and/or familiarity, referred to as Business Clusters.
capabilities of Micro, Small, and Medium-sized Enterprises (MSME), providing empowerment according to their Business Clusters have several criteria, such as:
entrepreneurial levels. With the presence of Rumah BUMN, it is expected that the MSME participating in this program
can experience improvements in entrepreneurial mindset transformation (Go Modern), the use of social media (Go 1. A minimum of eight business practitioners;
Digital), e-commerce penetration through local markets (Go Online), and preparation for exports (Go Global). Currently, 2. Similar geographical areas among business practitioners, such as being with the same RT, RW, and/or village; and
BRI has successfully established 54 Rumah BUMN, serving as business development centers for over 400,000 BRI MSME 3. Uniformity in the type of business or commodity.
practitioners, with more than 12,000 training sessions conducted.
BRI provides assistance and builds facilities and infrastructure to support the development of MSME businesses that
are part of the Business Clusters. Regular bazaars are held every month to introduce the products of supported MSME,
expanding their market and inspiring more MSME practitioners to join BRI's Business Clusters. The management of
96 Business Cluster data is done digitally through an application and a website containing information about Featured Clusters
that receive incentives from BRI's Mantri and support from facilities and infrastructure.
0.8%
Tourism
2.6% 0.1%
Service Others
8.9% 23,243 Business Clusters
Fisheries 82.7% in Production Segment
17.3% in Non-production Segment
10.2%
Commerce
Business Cluster Inclusion
279,497 Business Cluster Members
85.4% (238,678) Members Have BRI Accounts
30.6%
Industry
46.6%
Agriculture
Page 97
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
pasar.id [FS16] took place in 382 locations across Indonesia, where among these were 5 Main Simpedes People's Party events held in
Bandung, Denpasar, Makassar, Malang, and Yogyakarta. Additionally, Simpedes People's Party Territory events took place in
BRI collaborates with third parties through the Pasar.ID website to support the microeconomy, especially traditional 15 cities, including Medan, Bukittinggi, Palembang, Tasikmalaya, Purwokerto, Pekanbaru, Pati, Gresik, Lampung, Singkawang,
markets. This website serves as an online buying and selling platform that facilitates transactions for market managers, Samarinda, Kendari, Palu, Madiun, and Sorong. Other points were organized at the BRI Branch Office level, spread across
traders, and market visitors. Pasar.ID provides comprehensive information about traditional markets and the shops within 382 cities, districts, or sub-districts. The PRS event was successfully attended by 4,945 MSME actors and 264,195 visitors. PRS
them to assist consumers in choosing shopping locations based on their location preferences. During 2023, transactions 2023 was even more vibrant, with a variety of special prizes and the Simpedes Harvest Drawing the highlight of the year's
conducted through this site reached 113,983 with a total amount of Rp9.63 billion, covering 7,133 traditional markets and celebrations.
221,371 traders. The 2.71% YoY increase in the number of traders is a result of BRI's efforts to acquire flagship markets in
various regions. BRI also provides specialized training and mentoring related to Pasar.ID features that facilitate day-to-day
transactions. Transactions can be conducted through WhatsApp and BRI's banking applications such as BRI EDC, BRImo, Commodity Platform PARI (Pasar Rakyat Indonesia)
and BRILink Agents. [FS6] [FS13] [FS14]
BRI collaborates with third parties to provide solutions for commodity-based ecosystem participants to easily access BRI's
This website was established in response to the Value Proposition – Social Value of Pasar.ID digitally integrated services through the Indonesian People's Market Commodity Platform (PARI). In 2023, BRI focused on
97 ecosystems that include eggs, fish, shallots, coffee, milk, feed, cashews, pineapples, cassava, rice, bananas, and mangoes.
Covid-19 pandemic, encompassing: [FS13] [FS14] Website:
1. Providing a virtual space as a connection 1. Digitalizing traditional market businesses to The number of acquisitions reached 73,716 users with 305,655 transactions, an advance fund of Rp6.9 trillion, and a total
between market sellers/traders and buyers to enhance the economy and turnover of traders. gross merchandise value of Rp25.2 trillion. This platform involves 27,647 farmers and 15,848 collectors.
comply with physical restrictions. 2. Creating new job opportunities for motorcycle
2. Increasing the turnover of market traders taxi drivers around the market as market
affected by the Covid-19 pandemic. couriers. LOCALOKA
3. Offering new job opportunities to those who 3. Establishing the Pasar School to enhance the
lost their jobs due to the Covid-19 pandemic. business management capabilities of traders With the advances in technology and continuously evolving customer demand, BRI does not have its own local market
and market managers.
platform. However, with a concentrated amount of money in the groceries business segment, there is an opportunity to
4. Serving as a digital companion in facing
seize the wholesale business by integrating local market features into the AgenBRILink ecosystem. Localoka, a local market
the new normal era and supporting the
platform managed by BRI, provides a solution for MSMEs to market their products online. The integration of the BRILink
movement towards a cashless society.
Mobile application with the local market is expected to have a positive impact on increasing sales potential and profits
for AgenBRILink. Moreover, expanding Localoka's collaboration with corporations to become sellers is a strategic step
Pesta Rakyat Simpedes supporting Localoka's initial goal as a local ecosystem platform. The presence of corporate sellers adds value to BRI's MSME
customers who have become or will become sellers on the Localoka platform, and this collaboration expands business
Pesta Rakyat Simpedes is an annual event presented by BRI Simpedes Savings. This activity serves as a campaign for BRI opportunities and increases AgenBRILink on Localoka, giving AgenBRILink the opportunity to purchase goods at more
Simpedes Savings and the empowerment of MSME customers with an attractive and educational package. The 2023 competitive wholesale prices through corporate sellers partnering with Localoka.
Simpedes People's Party was organized using a hybrid method, both offline and online, via streaming. This year's PRS
agenda carries the theme "Confidently Seize Opportunities," signifying that BRI Simpedes Savings is here to encourage
MSMEs to maximize all new business opportunities and become winners in the future. The Simpedes People's Party 2023
Page 98
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
UMKM EXPO(RT) BRILiaNPRENEUR brilianpreneur.com
In the community empowerment journey, UMKM EXPO(RT) Community Activation. BRILIANPRENEUR 2023 received appreciation from Business Matching
BRILIANPRENEUR is a forum for local MSME participation on the global President Joko Widodo and Minister of SOE, Erick Thohir, who also came to
stage (go global). This program introduces superior products and a variety the event. The President said that MSMEs should be able to dominate the
of MSMEs from all over Indonesia to the international market. In 2023,
BRILIANPRENEUR adopted the theme "Crafting Global Connections” as a
local market, and contribute to the global market, as 61% of the national GDP
is contributed by MSMEs, and 97% of the workforce in Indonesia is employed
USD 81.3 million
Sales Value
demonstration of BRI's ambition and commitment to encouraging local by MSMEs. (target: USD 80 million)
MSMEs to establish relations with international markets by promoting their
products abroad or through business collaboration. Through UMKM EXPO(RT) BRILIANPRENEUR, 243 business matchings
In 2023, the annual BRILIANPRENEUR exhibition was held on 7-10
have been carried out by 86 buyers from various countries such as Malaysia,
Singapore, Australia, Canada, Taiwan, the United Arab Emirates, and others,
86
Global Buyers
December at the Jakarta Convention Center as part of a series of events to along with 172 MSME participants. BRI’s positive business matching (target: 80 buyers)
98 commemorate BRI’s 128th Anniversary. More than 700 MSMEs attended, performance is improving every year. In the 2023 program, the Business
with 500 MSME exhibitions displayed from five different categories: Home Matching sales value reached US$81.3 million or Rp1.26 trillion (@Rp15,500
Decor and Craft, Food and Beverage, Accessories and Beauty, Fashion
and Wastra, and Healthcare/Wellness. The exhibition also included a
per US$), increasing from US$76.7 million of the previous year. Through this
event, as the bank with the largest MSME portfolio, BRI will continue to create
30
Country Buyers
number of interesting events such as the Offline and Online Expo, Best an ecosystem for MSMEs with the main aim of boosting national economic (target: 25 countries)
MSME Product Showcase, Business Matching, Consultation Corner, MSME growth.
Award, Entertainment & Art Installation, Live Shopping, Creative Lab, and
Page 99
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Customer Well-being
Empowerment of Indonesian Migrant Workers Fair Marketing Policy
To optimize remittance transactions of Indonesian migrant workers in various countries, BRI, through its subsidiary BRI is committed to providing fair treatment to all customers. This is achieved by implementing the principles of BRI's Fair
BRIRemittance, has developed online remittance services through collaborations with partners who have digital platforms Marketing Communication Policy, which includes transparency, fair treatment, reliability, confidentiality, and the security of
and financial technology (fintech). BRI focuses on financial inclusivity and literacy for migrant workers by cooperating with customer data and information. These principles are applied by all BRI employees directly serving customers.
Bank Indonesia and the Trade and Economic Office (KDEI) to provide education on the importance of cashless money
transfers to and from Indonesia. With the support of over 100 partners in various countries, BRI aims to accelerate the Clarity and transparency in communication form the foundation for providing information to customers. Therefore, BRI has
development of remittance services effectively and sustainably, enhancing the efficiency of cross-border currency exchange. established consistent standards of fair treatment for all customers, regardless of background or financial status. Service
reliability ensures that every transaction is conducted with integrity and accuracy.
As an additional effort to support migrant workers, BRI promotes financial inclusion programs by facilitating education and
training for migrant workers through digital counselors and affordable financial services. In doing so, BRI not only plays a As a commitment to providing equal services to customers, BRI strives to provide adequate information. This information
99 role in facilitating financial transactions but is also committed to enhancing the understanding and financial well-being of includes product and service names, types, benefits, requirements, associated costs, interest or profit-sharing calculations,
Indonesian migrant workers worldwide. and the validity period of products and services. All information is available in clear and complete Indonesian, both in
writing and orally, upon customer request, and information about BRI's products and services can be accessed at BRI's
branch offices or through the official BRI website at www.bri.co.id. To date, there have been no withdrawals of BRI's products
and services.
BRI's commitment to fair marketing policies is not only a manifestation of business responsibility but also a form of loyalty
to the interests and financial well-being of each customer.
Customer Privacy Protection Management
BRI implements personal protection for every personal data processing activity in the data life cycle, including collection,
processing, storage, and destruction of personal data. The implementation of personal data protection is carried out with
the Privacy Operational Life Cycle approach:
y Governance: Enterprise Data Management (EDM) is an end-to-end data management division that oversees initiatives
related to data security and privacy. BRI manages personal data following guidelines in internally established policies
and procedures, including:
> Privacy protection-related policies;
> Information security governance policies;
> Standard operating procedures related to personal data protection.
> Standard operating procedures related to bank secrecy.
Page 100
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Internal BRI policies are designed to ensure the compliance of all individuals involved in personal data processes, including > Sustain: BRI is committed to maintaining compliance with personal data protection regulations and continuously
BRI management, electronic system providers, and personal data controllers. All systems processing personal data of improving personal data protection practices. One way is by continuously conducting training and increasing
employees, vendors, partners, contractors, and other third parties involved in the acquisition, transmission, dissemination, awareness for all employees, both at the head office and branches. To ensure the implementation of personal data
and deletion of personal data are expected to comply with applicable laws and regulations, best practices, and specific processing guidelines, procedures, and measures, BRI conducts audits of personal data protection in accordance
provisions applicable to the banking industry. [3-3] with applicable policies, taking into account the scale and operational characteristics of BRI's business.
> Respond: BRI has an incident response procedure to address personal data breaches promptly and effectively. In
y Assess: BRI continually evaluates its current privacy management processes and builds an understanding of how these addition, as a form of transparency regarding personal data processing, BRI has prepared and published a privacy
processes and procedures align with best practices and applicable compliance requirements. BRI conducts gap analysis, notice that can be accessed at the following link: https://bri.co.id/web/guest/privacy.
organizes data recording and processing activities, assesses the impact of personal data protection, and maps and
inventories data. BRI processes personal customer data according to the purposes stated in the BRI privacy notice, complying with the legal
y Protect: BRI has technical and organizational measures to protect personal data from unauthorized access or use, basis applicable to personal data processing. As a commitment to maintaining and protecting customer data, BRI is aware
including the implementation of encryption, tokenization, and data loss prevention. These technical procedures serve of the protection and use of customer data by monitoring customer approvals for marketing purposes.
to prevent unauthorized access, collection, use, disclosure, copying, alteration, and deletion that are illegal or contrary to
100 applicable laws.
Financial Advisor and Digital Counselor
To ensure privacy for the managed personal data, BRI adheres to the principles of personal data protection, namely:
> Limited, Specific, Legally Valid, and Transparent: Personal data collection is done with clear limitations, for Through BRI's digital counselors, BRILian information agents play a role in disseminating knowledge to the public about
specific purposes, and which are legally valid and transparent. the Company's digital products and services. More than 44,000 BRI Loan Officers function as financial advisors and digital
> Purpose Limitation: Processing personal data is carried out according to predetermined purposes. counselors. Their presence can strengthen customer readiness to access financial products offered by BRI. This initiative is
> Guarantee of Personal Data Subject Rights: Processing personal data is carried out while guaranteeing the rights an integral part of the Culture Activation Program (CAP), reflecting the commitment of BRI employees to internalize direct
of personal data subjects. involvement in the Company's business. Digital counseling activities include:
> Data Accuracy: Processing personal data is accurate, complete, non-misleading, up-to-date, and accountable.
> Data Security: Processing personal data is enacted by protecting the security of data from unauthorized access,
Increasing the Number of New Expanding the Number of Transactions Educating on Safe Transaction
unauthorized disclosure, unauthorized alteration, misuse, destruction, and/or loss of personal data. 1 2 3 Practices
Accounts Through BRI Digital Products
> Notification of Personal Data Processing Purposes: Processing personal data involves clearly notifying the
Conducting outreach and education on Conducting outreach and education on the Ensuring secure transactions at ATMs,
purposes and activities of processing, as well as the risks of failure in protecting personal data. opening BRI savings accounts (both digitally features in BRImo (transfers, digital wallets, BRImo, etc.
and through branch units) for customers Briva payments, etc.) for customers.
> Data Retention Limitation: Personal data can be destroyed, deleted, and/or reviewed after the retention period and potential customers.
ends, or based on the request of the personal data owner unless otherwise specified by regulations.
Conducting outreach and education Conducting outreach and education on Maintaining the confidentiality of PINs and
> Accountability: Processing personal data is completed responsibly by fulfilling the implementation of personal data on the use of digital platforms (BRImo, how to shop on Pasar.id, QR Pedagang, and periodically changing PINs.
protection principles and can be clearly proven. Smart Billing, Junio Smart, and others) for others for customers.
customers.
Conducting outreach and education on Conducting outreach and education for
how to perform financial transactions customers to maintain the confidentiality
through IB Bisnis, CMS, and others for of personal data such as mother's maiden
customers. name, PIN, OTP, CVV. Avoiding the use of
public Wi-Fi, etc.
Page 101
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Calculation of Loan Needed Customer Complaint Handling
BRI is committed to help customers in maintaining their financial health of all customers. This commitment takes the form BRI has continued to improve its customer complaint service by launching the BRImo Help Center features 28 complaint
of policies related to repayment capacity calculations applied to ensure that customers only take loans within their financial groups, allowing customers to file complaints from anywhere, anytime, so they do not need to visit BRI offices.
capabilities. Additionally, BRI provides a loan calculator, accessible through the BRI website, before customers apply for
loans at BRI. In this way, BRI emphasizes the principles of openness and responsibility in assisting customers in achieving
their financial goals. With clear and transparent information, customers can make informed financial decisions and avoid
debt traps.
Responsible Debt Collection Process
BRI emphasizes its commitment to providing quality service and engages its customers through a respectful and fair credit
101 collection policy. This process focuses not only on protecting BRI's interests but also on ensuring that customers' rights and
privacy are maintained according to applicable rules. To maintain the quality of the collection process, BRI implements
reliable internal controls, where the goal is to ensure that every action taken in handling problematic credit aligns with
ethical standards and applicable regulations.
BRI not only relies on internal policies and controls but also pays special attention to training and mentoring for employees.
Through training, certification, mentoring, and coaching, BRI employees have a good understanding of credit collection
procedures and handling of problematic credits, while also being sensitive to customer needs.
In an effort to provide sustainable solutions, BRI has a credit restructuring program. This program aims to assist debtors
Furthermore, BRI continues to enhance the customer experience by speeding up the service level agreement (SLA) for
facing payment difficulties by considering criteria such as good faith, cooperation, and the sustainability of cash flow. In
complaint resolution, using robotic processing automation technology, improving business processes, and using solution
addition to restructuring, BRI also offers alternative solutions through the transfer mechanism with debt sales (cessie). This
forum mechanisms. In addition, BRI expedites the resolution of customer complaints using the hashtag "#urgent" on
step is taken carefully to ensure that every solution provided remains fair and beneficial to all parties involved. Overall,
BRICare.
BRI is not just a financial institution but a committed partner to maintaining the integrity and financial well-being of its
customers through a credit collection process that is respectful and fair.
BRI maintains consistency in handling customer complaints, with a complaint resolution rate reaching 99.56%. Complaint
types involve grievances, information, and maintenance, with a total of 4,751,604 complaints from all BRI communication
channels. Of this total, 4,730,478 complaints were successfully handled, while 21,126 complaints are still in process.
Customer complaint resolution regarding the security and confidentiality of data has become a key performance indicator
(KPI) for the Service and Contact Center Division, where every step in the implementation of complaint procedures and
resolution is directly reported to the Director of BRI's Network and Services. [GRI 3-3] [F.27]
Page 102
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Building a Better Future through Customer Excellence and Banking for All
Customer Satisfaction Management [F.30] [2-24] [F.1] [F.17] Other Commitments in Increasing Financial Inclusion
BRI pays full attention to customer opinions through various offline and online channels for improving service development Partnership
to enhance customer satisfaction. These efforts have resulted in the customer satisfaction rate for BRI in 2023 reaching
84.66%. This achievement exceeds the 80% target that had been set. Customer satisfaction surveys are conducted via BRI is committed to maintaining open and respectful relationships, as well as collaboration with internal and external
WhatsApp blasts to customers who have conducted transactions with BRI. In this survey, BRI maintains the confidentiality parties to enhance financial inclusion. Internally, BRI will continue to develop and train all employees directly serving less
of customer data by sending messages directly from BRI and not disclosing customers' mobile phone numbers to privileged groups. Development and training programs will cover loan analysis techniques, sales techniques, product
surveyors. knowledge, and community development modules. Externally, BRI will collaborate with key stakeholders, including the
government, regulators, and other external parties with similar goals in promoting financial inclusion in Indonesia.
Moreover, BRI assesses service quality through the Service Quality Index (SQI), achieving a score of 4.4044 with a Diamond
category in 2023. The increase in the SQI reflects BRI's services remaining at the highest level in the banking industry. To
measure the consistency of service quality, BRI uses the mystery shopping method to obtain an accurate and objective Good Governance
overview of the service quality of branch units, including People (customer service, tellers, and security guards), Process,
102 E-Channel (ATM/CRM), and Premises. BRI is committed to strengthening Good Corporate Governance to ensure the necessary processes and outcomes required
to achieve the Company's goals, related to financial inclusion. In 2023, the CEO and other executive directors adhered to
Several initiatives carried out by BRI to improve service quality include: specific Key Performance Indicators (KPIs) related to UMi, including targets for the number of co-locations, digital debtors,
UMi debtors, and the number of new savings account openings in the UMi segment. The achievement of these KPIs also
1. Enhancement of People Capabilities, through improving the quality assurance of collaboration with third parties, serves as one of the determinants of remuneration received by the CEO and other executive directors.
conducting periodic Test Product Knowledge (TPK) for operational and service personnel at BRI, and refining and
enhancing programs and assessment parameters for service and operational aspects (SOLVE).
2. Development of Service Culture, through the BRI Service Excellence Award (BSEC), an annual competition to identify
the best frontliners and work units in the field of service and operations. This event stimulates enthusiasm in providing
the best service to customers.
3. Improvement of Service Processes, through business process engineering involving the simplification of procedures and
the arrangement of service process flows at work units to facilitate and expedite service delivery to customers.
4. Enhancement and improvement of Premises, through activities focused on repairing and perfecting the infrastructure
facilities of work units so that customers feel more comfortable when conducting transactions.
5. Training staff to prevent aggressive sales techniques and disrespectful treatment towards target groups.
6. Interacting with external parties to expand reach or develop inclusive financial markets.
7. Establishing a role or special committee at the executive or operational level to oversee financial inclusion.
Page 103
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
BRI Peduli: Corporate Social Responsibility
The following is BRI's strategies in organizing the CSR programs. [GRI 3-3]
" BRI's commitment to social and environmental
responsibility (TJSL) is embedded in all work Vision To be at the forefront of corporate social responsibility practices to provide sustainable value and benefits for stakeholders.
units in all corners of Indonesia."
Mission y To carry out corporate social responsibility to support BRI's business with good, well-planned, strategic, broad-impact and sustainable governance and
management.
y To create blended value for BRI and stakeholders.
BRI established BRI Peduli TJSL as a platform for the y To improve BRI's reputation among stakeholders
implementation of programs aimed at generating positive impacts
in the economic, social, and environmental domains while
simultaneously enhancing relationships with the community Pilar The implementation of BRI Peduli’s CSR programs refers to three main pillars, the Social Pillar, the Economic Pillar and the Environmental Pillar, all guided by the Legal Pillar.
as one of the Company's key stakeholders. Furthermore,
the execution of TJSL aligns with the global community's
commitments outlined in the 17 Sustainable Development Goals
(SDGs). [GRI 3-3] [F.25]
103 Social Economy Environment Law
Promoting the fulfillment of basic Promoting the fulfillment of basic human Building public awareness to protect
In its approach, BRI Peduli TJSL adopts the triple bottom line human rights to improve the standard rights to improve the standard of living the Earth and preserve all its natural BRI refers to Minister
concept and emphasizes long-term programs that provide of living and welfare in society. and welfare in society. resources. of SOE Regulation No.
sustainable blended value for both the community and the PER-06/MBU/09/2022
dated 8 September,
Company. BRI establishes empowerment programs, capacity- Initiative: Initiative: Initiative:
2022, on Amendments
building initiatives, and strategic infrastructure development y Assistance for education and health y Improvement of capacity and skills for y Preservation of nature and to Minister of State-
to promote economic self-sufficiency in the community while facilities MSME actors environmental conservation Owned Enterprises
y Scholarships for high-achieving students y Provision of supporting equipment for y Integrated and responsible waste
creating market opportunities for businesses. In accordance Regulation Number
y Improvement of community nutrition and business groups management
prevention of stunting y Increased public awareness of Per-05/MBU/04/2021
with the Ministry of State-Owned Enterprises regulations, the
y Emergency disaster response assistance environmental cleanliness on Social and
implementation of the TJSL program is also focused on the fields y Empowerment of women's groups y Organizing urban farming ecosystems Environmental
of education, environment, and the development of micro and Responsibility
small enterprises (MSEs). The management of BRI Peduli TJSL Beneficiary: Beneficiary: Beneficiary: Programs for State-
Owned Enterprises.
is carried out systematically and comprehensively to ensure the Society, vulnerable groups, students, teachers, MSMEs Society
women and people with disabilities
success of the program can be achieved seamlessly, covering the
planning, execution, monitoring, and reporting processes.
Program Program Program
y Ini Sekolahku/School Assistance y BRI Peduli’s BRILiaN villages - Superior y River Cleanup
program MSMEs y BRI Menanam Grow & Green
y Journalist Fellowship Scholarship y Priority Cluster Capacity Development y Guard the River, Guard Life
y Scholarships for high-achieving students Assistance y Assistance for the Procurement
y Emergency disaster response y Halal Certification and Digital Marketing of Waste Bank Facilities and
y BRI Peduli Empowerment of Women's Training for MSMEs Infrastructure
Groups y Support for Agricultural Group Facilities and y Assistance for Coral Transplantation
y BRI Urban Farming (BRINITA) Infrastructure
y Training for Rumah BUMN
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
BRI Peduli: Corporate Social Responsibility
CSR Program Planning
Planning for BRI Peduli’s CSR programs refers to the Minister of State-Owned Enterprises of the Republic of Indonesia SROI
IKM Score
Program Name Value Importance Category Performance Category
Regulation Number: PER-01/MBU/03/2023 dated 3 March, 2023, on Special Assignments and Social and Environmental Index Index
Responsibility Programs for State-Owned Enterprises, which was adopted into the Company's internal regulations through Construction of an Orange Production House and Orange 3.71 83.53 Good (B) 81.59 Good/Satisfied (B)
Monument in Brilian Karang Bunga Village
Circular Number: SE. 24-DIR/CSC/06/2023 on the Implementation of the Social and Environmental Responsibility Program
Support for an Education Support School (SLB) Mobilization for 2.97 93.49 Very Important 91.44 Very Good/Satisfied
of PT Bank Rakyat Indonesia (Persero), Tbk, dated 22 June 2023. In planning BRI Peduli’s CSR programs, BRI pays attention Pemprov Central Java (A) (A)
to the principles of efficiency and effectiveness so that they are distributed in an efficient and targeted manner. The Development of Boon Pring Tourism in Brilian Sanankerto Village, 2.82 90.27 Very Important 83.99 Satisfied (B)
Malang (A)
preparation of the BRI Peduli’s CSR programs is carried out by taking into account the following: [GRI 3-3]
Construction of Culinary Traders Stalls in the Parking Lot of Pasar 2.77 89.40 Very Important 88.65 Very Good/Satisfied
Manis Purwokerto (A) (A)
a. Impacts and risks of the Company’s activities d. Sustainability orientation and expected impact Cleaning the Senjoyo River in Salatiga 2.52 90.27 Very Important 88.42 Very Good/Satisfied
(A) (A)
b. Emerging needs and potentials e. Focus and direction of sustainable development
Average 4.88 89.79 Very Important 87.50 Good/Satisfied (B)
c. Local excellence and wisdom (A)
Note: • The SROI value shows the return for every one Rupiah of funds invested through BRI’s CSR programs.
• The CSI score shows program performance (on a 1-100 scale) based on Minister for Empowerment of State Apparatus - Bureaucratic Reform of the Republic of Indonesia Regulation Number 14 of 2017.
BRI also focuses on employee involvement in every CSR activity and program. BRI wants every employee to contribute
104 to the empowerment of communities near BRI’s work units. In an effort to ensure the implementation of the BRI Peduli The SROI and IKM values for several BRI Peduli CSR programs in the presented table indicate a satisfactory performance. In
program and its success, BRI prepared a road map designed as a guide to keep the program effective and on target. the IKM calculation, the average importance level of the program is 89.68, or Very Important (A). Meanwhile, the average
satisfaction level of beneficiaries with the program performance reached 87.50, or Good/Satisfied (B). This shows that the
program is aligned with their interests and needs. In addition, the average SROI value is 4.88, indicating that the program
has successfully created positive changes in the community environment. [413-2]
Monitoring and Evaluation of CSR Programs
Communication with the community regarding BRI’s CSR programs begins with the planning process, socialization through
community leaders, program implementation and services, impact assessment, program sustainability, program monitoring Award 1 2
Awards 3
Awards
and evaluation. Monitoring and evaluation maintain effectiveness and improve the implementation of BRI’s CSR programs
Anugerah CSR Republika Top CSR Awards TJSL & CSR Awards
2023 2023 2023
in the future. Regular communication is carried out through routine meetings or other communication channels with the
Republika Majalah Top Business BUMN Track
government, related institutions, and community leaders to monitor local issues and developments. BRI is also actively
involved by using the Community Satisfaction Index (IKM) to evaluate the program's suitability with community needs, and
Social Return on Investment (SROI) to assess the impact generated by the program. This impact measurement allows BRI Number of Event Organizer
Awards
to manage programs with a focus on any necessary changes and added value provided to stakeholders and the Company.
1 TOP CSV AWARDS 2023 TRAS N CO Indonesia
[GRI 2-25, 3-3, 413-1,413-2] [F.23]
3 B-Universe CSR Awards 2023 Group Holding BTV, Beritasatu.com, Investor Daily, Jakarta Globe,
IKM Score Investor.id
Program Name SROI
Value Importance Category Performance Category
Index Index 2 PR Indonesia Awards 2023 PR Indonesia
Support for waste processing facilities in Saguling Cimahi 9.42 90.92 Very Important 87.25 Good/Satisfied (B)
10 Nusantara CSR Awards 2023 La Tofi School of Responsibility
(A)
School Assistance at SDN 006 Meral Tanjung Balai Karimun 7.93 92.82 Very Important 91.04 Very Good/Satisfied
(A) (A)
Sorting tool assistance for Poktan Al Barokah's lemon sorting 6.88 87.59 Good (B) 87.59 Good/Satisfied (B)
Page 105
Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
BRI Peduli: Corporate Social Responsibility
Social Pillar
Fulfillment of Quality Basic Human Rights in a Just and Equal Manner
1. Ini Sekolahku (School Assistance) [GRI 203-1] 2. Scholarships for Outstanding Children in BRILiaN Villages in 3. BRI Peduli: Empowering Women's Groups
Commemoration of the 78th Independence Day of the Republic of
The "Ini Sekolahku" program is a leading initiative of BRI Peduli in the Empowering women is a crucial step in boosting their roles so they can
Indonesia
education sector, implemented to provide support to schools, especially contribute more to society. The involvement of women in this program
in remote, frontier, and outermost (3T) areas, and has been running Education is one of the key sectors in the implementation of promotes equality and enhances opportunities for women to access
since 2021. Through this program, BRI aims to improve inadequate the BRI Peduli CSR program. High-quality education is crucial in resources, enhance their competencies, and enable them to play a more
educational infrastructure, support teaching and learning activities, and shaping a generation of excellence. In line with BRI's BRILiaN Village significant role in the economic, social, political, and cultural spheres.
create comfortable learning environments for students and teachers, empowerment initiatives aimed at strengthening village economic As part of BRI's effort to empower self-reliant women, BRI created its
across Indonesia. systems, BRI provides special scholarship assistance to outstanding Women's Group Empowerment Assistance Program. This year marks
children in BRILiaN Villages throughout Indonesia. Running for two years the third year of the program's implementation, with an achievement of
as of 2023, the program provides support and motivation for children in supporting 36 women's business groups.
BRILiaN Villages to pursue higher education.
105
1,800 outstanding students
Scholarship in 109 BRILiaN Villages
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
BRI Peduli: Corporate Social Responsibility
Economic Pillar
Creating Inclusive Job Opportunities, Businesses, and Industries
1. Assistance in Building Production Houses and an Orange Statue in 2. Assistance in Building Stalls for Culinary Traders in the Parking Lot 3. Halal Certification and Digital Marketing Training Program for
BRILiaN Village, Karang Bunga, Barito Kuala of Pasar Manis Purwokerto MSMEs
Karang Bunga Village, Banjarmasin City, is a prominent BRILiaN Village As support for MSMEs and in an effort to provide public facilities for the Indonesia Law Number 33 of 2014 mandates halal certification for all
that highlights the potential of its sweet-flavored orange farming. Initially community, BRI initiated the construction of culinary stalls in a Pasar products circulating in the country. However, many MSME products
managed individually, the village’s orange farming was later developed Manis Purwokerto parking lot. This initiative provides opportunities for are not halal certified due to the complicated procedures and high
into a business cluster in 2021. The business expansion included the culinary MSMEs around the market to trade, while transforming the certification costs for traders. Recognizing this, BRI, with a focus on the
development of derivative products such as orange ice cream and parking area into a culinary center at night. This assistance not only MSME business segment, initiated efforts to obtain halal certification.
orange juice. To support this development, BRI provided production enhances local culinary creativity, but also encourages the community Through the BRI Peduli program, BRI provides halal certification
equipment and assistance in building production houses, and to visit and enjoy culinary delights from the area. Through this program, assistance to 200 MSMEs, including BRI micro customers and MSMEs
commissioning a monument of an orange as a tribute to the village's BRI simultaneously enhances branding and brings in new customers participating in training at the BRI BUMN House. The goal is to assist
fruit production. The orange production houses serve as a storage through the use of digital apps. MSMEs in delivering quality and safe products to consumers.
106 facility, and for processing ice cream and orange juice. Karang Bunga
ice cream and orange juice are now sold in and around Banjarmasin.
With this support, BRI hopes that the Karang Bunga orange cluster will
continue to thrive.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
BRI Peduli: Corporate Social Responsibility
Environmental Pillar
Sustainable Ecosystem Management and Preservation
1. BRI Menanam (Plant) Grow & Green Program 2. Assistance in Procuring Facilities & Infrastructure for the Ciamis 3. BRI Peduli River Cleanup Program
Central Waste Bank
Through the BRI Menanam Grow & Green initiative, BRI actively The River Cleanup Program is one of BRI's initiatives toward maintaining
engages in tree planting activities at various locations in Indonesia. According to data from the Ministry of Environment and Forestry environmental sustainability. Activities within this program include
This long-term program, spanning four years, is carried out through of the Republic of Indonesia for the year 2022, Indonesia produces river normalization, physical facility construction, and education about
collaboration with foundations and environmental activist farming approximately 68.7 million tons of waste in a year. Household waste healthy environments. Additionally, the program encourages better
groups. In its implementation, BRI provides seedlings, while the contributes the most, reaching 38.28% of the total. Recognizing the waste processing through training, and by providing waste processing
foundations and farming groups are responsible for land preparation, importance of effective waste management for local communities, machines. The year 2023 marks the third year of the program's
and seed planting, as well as monitoring and recording tree growth. BRI provides facilities and infrastructure for waste management to the implementation. Over these three years, BRI has provided assistance to
This program reflects BRI's commitment to make a positive impact Ciamis Central Waste Bank in West Java. The Ciamis Central Waste Bank 29 river communities across Indonesia. The program aims to restore the
on both society and the environment, through productive farming of also serves as an educational platform for the community regarding functions of rivers and improve the economic conditions in surrounding
durian, clove, coffee, and mangroves. The assistance not only contributes waste sorting activities to reduce residues entering landfills. BRI areas through environmental management.
107 to environmental sustainability, but also to the well-being of local contributed a press machine and a waste transport vehicle to the waste
communities. bank, aiming to improve its waste management operations.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Human Rights Management
Human Rights Policies and Commitment [2-23]
BRI implements human rights principles through carefully designed, comprehensive regulations. The guidance, known as The implementation of human rights policies across BRI operations is regulated through the Policy on Human Rights
the Human Rights Policy Framework, ensures effective compliance with human rights throughout BRI's organization and Principles in Employment, the Respectful Workplace Policy (RWP), as well as the Health and Safety Policy (K3). Within
business chain which includes both internal and external parties by involving business partners, customers, communities, these policies, provisions are included for BRI's own operations (employees, activities, products, or services), suppliers, and
and the people. The goal is to create an environment that respects and protects the basic rights and dignity of every partners. In terms of employment, BRI's human rights policy refers to Law No. 13 of 2003 regarding Manpower and adapts
individual. to the Government Regulation in Lieu of Law (Perpu) No. 2 of 2022 concerning Job Creation dated December 30, 2022. The
Collective Labor Agreement (CLA) at BRI is also one of the written instruments for enforcing human rights in the workplace,
In line with the United Nations (UN) Human Rights Declaration and the United Nations Guiding Principles on Business and reviewed and updated periodically every two years. The aim is to clarify the rights and responsibilities of the Company,
Human Rights (UNGPs on BHR), BRI is committed to upholding 10 (ten) areas of human rights in the realm of operational labor unions, and workers; foster and enhance harmonious labor relations; and implement principles of healthy industrial
and business activities, including in the workforce, business partners, or the Company’s supply chain. relations. The CLA also includes provisions mandating notification of changes in company operations to all employees,
communicated no later than 30 days before such changes take effect.
1 No Human Trafficking Adhering to the International Labour Organization (ILO) Convention 138 on the Minimum Age for Admission to
Employment, BRI sets the minimum age limit of 18 years for prospective BRI workers as a measure to support efforts to
108 2 No Forced Labor
prevent practices that contradict human rights principles. At every stage of recruitment, promotion, and employee rotation,
written agreements between the parties ensure the absence of coercion. These efforts are made to prevent the risks of
3 No Child Labor
child labor, young workers exposed to hazardous work, or forced labor within BRI's operational team and suppliers. [F.19]
4 Privacy Protection
5 Equal Remuneration Human Rights Training And Education
6 Rights in Collective Bargaining
In order to communicate the impact to stakeholders, BRI undertakes various efforts, including:
7 Right to Association 1. BRI conducts regular training and communication sessions for employees to enhance their knowledge, understanding,
and awareness of human rights principles.
8 Equality and Nondiscrimination
2. BRI communicates the implementation of human rights respect and its impact on stakeholders through various media
and communication channels. This awareness campaign is carried out in accordance with corporate communication
9 Sustainable Operating Environment
standards and regulations applicable at BRI.
10 Occupation Health and Safety (OHS) 3. BRI reports its human rights respect practices to external stakeholders through sustainability reports.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Human Rights Management
Human Rights Assessment Human Rights Management
Human rights assessment is a crucial step in preventing and mitigating potential hazards associated with individuals in BRI exercises due diligence in managing potential operational impacts on human rights throughout the Company's
every operational activity. Therefore, since 2023, BRI has been conducting human rights assessments on both internal and business processes. Therefore, BRI conducts comprehensive human rights due diligence by identifying and assessing
external organizational operational processes and business activities. The assessments are carried out periodically based the potential impacts and risks of all BRI operational activities, value chains, or other activities related to BRI's business,
on priorities and needs, to identify risks related to human rights practices. In the human rights assessment, BRI maps the including new business relationships (mergers and acquisitions). BRI also pays attention to vulnerable groups.
frequency (likelihood) and impact (severity) of each risk to illustrate the evaluation results regarding inherent risks and
those that still exist.
Rights Holder Vulnerable Group Human Rights Risk
Employee y Female worker y Discrimination
In 2023, a total of 12,870 employees and 42 suppliers participated in the human rights assessment. Through this y Part time worker y Abuse
y Workers with Disabilities y Health and Safety
assessment, BRI identified various human rights risks and has established mitigation and remediation procedures. [3-3] y Remuneration
y Work-life balance
y Human Resource Development
Suppliers/third parties y Supplier workforce y Human trafficking
y Female worker y Forced labor
y Child labor y Underage workers
y Discrimination
109 y Abuse
y Health and Safety
y Employee Privacy
y Local Community
y Freedom to associate
The comprehensive human rights testing process within
the internal and external scope of the organization refers to Human Rights
Directorate Letter No. B.1470-DIR/ESG/07/2023 dated July 13, Commitment
2023, regarding the Human Rights Policy of PT. Bank Rakyat
Indonesia (Persero) Tbk. It is executed through a framework
comprising: 1) Human Rights Commitment; 2) Impact and Risk Communication Risk and
of Impact to the Impact
Identification; 3) Impact and Risk Assessment; 4) Mitigation Stakeholders Identification
and Remediation; and 5) Impact Communication. Human Rights
Policy
BRI has undergone a human rights due dilligence process
through the self-assessment method established by the
Ministry of Law and Human Rights of the Republic of
Risk and
Indonesia, conducted via the PRISMA application in October Mitigation and Impact
Remediation Assessment
2023. Based on this thorough assessment process, BRI has
been categorized as 'Green' in the implementation of human
rights, indicating compliance with the Standard Business and
Human Rights Risk Assessment Indicators.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Our People Our Customers People and Communities Around Us Managing Human Rights
Human Rights Management
Human Rights Mitigation And Remediation
Human rights risk mapping through the human rights due diligence process is carried out systematically and periodically, BRI has developed proactive steps to mitigate human rights violations in operational and business activities across all its
ensuring its continued relevance over time. Human rights issues covered in risk mapping include forced labor, human work units. This procedure refers to national and international legislation. In line with the UN Guiding Principles on Business
trafficking, child labor, freedom of association, collective bargaining rights, fair remuneration, discrimination, and others. and Human Rights (UNGPs), BRI has established standards and procedures to address human rights issues and support the
Through this risk mapping, BRI has identified a number of aspects that need to be considered in fulfilling human rights in recovery process from adverse impacts that arise. These remediation efforts include: [2-26]
the internal and external domains, including: [3-3]
y Apologies;
1. Internal Aspect y Restitution;
BRI ensures that there are no cases of human trafficking, forced labor, or child labor in all company operational y Rehabilitation;
environments. In terms of personnel, BRI is committed to building a safe and comfortable work environment for all BRI y Guarantees of non-recurrence;
personnel. This fulfillment can be felt physically through the availability of supporting infrastructure. For nonphysical y Financial/non-financial compensation to prevent future violations; and
aspects, BRI's efforts are realized by fulfilling employees' basic rights, providing a forum for competency development, y Legal avenues
and promoting diversity, equality, and inclusive values. BRI also has regulations to prevent acts of discrimination or
harassment. BRI specifically regulates the rights and freedoms to be involved in trade unions and policies regarding BRI has developed a violation reporting system (whistleblowing system/WBS) as a forum for complaints and grievances
110 protection for the privacy of BRI’s employees. regarding human rights risks, indications, or incidents. This system guarantees the confidentiality of the identity of the
informant and all parties. BRI personnel, customers, work partners, and other external stakeholders can report human
2. External Aspect rights through the following whistleblowing system:
In monitoring the supply chain and mitigating possible negative impacts on human rights, BRI prioritizes vendors/
suppliers and work partners who are committed to carrying out operations responsibly. To achieve this goal, BRI
formulates a supply chain policy and requirements applied to work partners, which include ethical business practices,
fulfillment of human rights and labor rights, environmental considerations, data privacy, health and safety, and vendor/ Whistleblowing System
supplier diversity. Assessment of assignment risks and evaluation of vendor/supplier controls is carried out to verify SMS/Whatsapp: 08118200600 Email: whistleblower@corp.bri.co.id Website: https://whistleblowing-system.bri.co.id
compliance with BRI's human rights policies and standards. [3-3]
Every report with relevant evidence will receive a follow-up, and if proven legally, the reported person will be given
sanctions according to the applicable policies. In the period 2021 to 2023, there were no cases of discrimination reported
within BRI so no corrective action was taken. In addition, there were no risks or incidents of human trafficking, child labor,
forced labor, or violations of freedom of association or collective bargaining, both within BRI's operational environment and
suppliers. [406-1, 408-1, 409-1] [F.19]
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
111
In This Section
112
Climate Change Governance
114
Climate Change Strategies
120
Climate Change Risk Management
Enviromental: 124
Nurturing The Planet
Metrics and Targets
128
Other Initiatives in Preserving the Environment
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Governance
Every Bit of Warming Matters, Every Year Matters, Every Choice Matters
Risk Management & ESG Committee
Climate change has given rise to significant environmental damage, including the melting of glaciers, a rise in sea levels,
as well as increased frequency and intensity of extreme weather events. These changes can devastate ecosystems, ESG Risk Management Integrated Risk Management *)
Board
biodiversity, and natural resources. Given the urgency of the climate crisis, addressing climate change requires collective Oversight
action from individuals, organizations, and governments worldwide. We all have a responsibility to reduce greenhouse gas
Board Of Directors
emissions and mitigate the impacts of climate change. Taking measures to combat climate change is essential for protecting
not only the environment but also the economy, health, and social well-being. This is a global problem that demands a
global solution, and together, we can ensure a sustainable future for generations to come. Operations Division ESG Division Risk Management Division Business Strategy Division
Support for the Coordination of climate Support for the integration of Division Support for
Management implementation of risk issues Climate Risk into Risk resilience when building an
Role decarbonization Management investment portfolio
As Indonesia's leading financial institution, BRI acknowledges the importance of its roles and responsibilities in this matter. strategy
BRI is committed to urgently addressing the climate crisis and actively contributing to the successful transition towards
a sustainable net-zero society. BRI’s climate change response governance structure consists of the Board and Group
management. To ensure an effective response to climate change, BRI has clearly outlined the responsibilities and roles
112 of both the Board and management. Within this structure, seamless communication takes place, allowing a thorough
*) Climate change risk management has not been integrated with Subsidiaries
understanding of the impact of climate change-related risks and opportunities on its business model.
ESG Committee
y Oversees climate-related issues relevant to BRI
y Advises on the implementation and monitoring of climate strategy
Risk Management Committee Integrated Risk Management Committee
y Oversees BRI’s enterprise risk profile (including the ESG rating y Oversees BRI’s integration of risk management (including
as part of reputation risk) ESG risk management in subsidiaries)
Board of Directors
y CEO and Vice CEO become the chairman / Vice Chairman of the committee, and the other Board of Directors are the committee members
y Oversee the overall direction, supervision, and control of the Group and its management
y Delegate responsibilities to management for climate strategy implementation
ESG Division Risk Management Division
y Execution of climate strategy y Collaboration with ESG to map and assess climate risks and
y Coordination between risk, operational and business for opportunities by analyzing climate change scenarios
effective climate strategy implementation
Operations Division Business Strategy Division
y Identification and response to physical risks for BRI’s offices y Maintenance of financed emission policies and engagement
and outlets with BRI’s portfolios in achieving BRI’s financed emissions
y Budget planning for climate change management initiatives reduction targets
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Governance
Board Oversight Role of the Management
BRI's Commitment to Sustainable Finance BRI Management has been proactively addressing climate change issues since 2016. This is evidenced by:
• Establishment of a specialized unit within the Risk Management Division in 2016: BRI recognizes the risks associated
Since 2015, the Board of Directors of BRI has demonstrated its commitment to sustainable finance by actively engaging in with climate change and is committed to addressing them seriously.
sustainability issues, including climate change. This commitment is concretely expressed through: • Increased level of responsibility related to climate change to the Division level in 2020: Demonstrates BRI's enhanced
• Integration of climate change into the responsibilities of the Risk Management Director: Recognizing climate change as commitment to tackling the challenges of climate change.
a material aspect requiring prioritization. • Formation of the ESG Division under the supervision of the Compliance Director in 2023: Reflects BRI's stronger
• Issuance of the inaugural policy for the Board of Directors on climate change: This policy underscores the significance commitment to ESG and ensures that these issues are integrated into the entire company's operations.
of climate change and encourages the implementation of strategic measures to address it.
• Regular discussions on climate change in board meetings: High-level commitment ensures that climate change issues ESG Division
are systematically and comprehensively discussed. The ESG Division plays a crucial role in:
Risk Management & ESG Committee [FS12] • Developing governance structures and implementing climate policies to provide BRI with a clear framework for
managing risks and opportunities related to climate change.
113 In 2021, BRI established the Risk Management & ESG Committee to enhance focus and oversight on sustainability issues, • Conducting a comprehensive review of current policies, procedures, and practices.
including climate change. This committee convenes regularly, at least once every six months, to ensure systematic • Researching international best practices and consulting with external experts to ensure that BRI's policies and
discussions on ESG issues. The committee is led by the CEO, a high-level leader emphasizing the importance of ESG for BRI, governance structures align with global standards.
and ensuring that the committee wields significant influence. The Risk Management & ESG Committee comprises board • As the initiator and coordinator of climate policy implementation, the Head of the ESG Division has a specific
members with the expertise and experience necessary to make informed decisions regarding ESG developments. responsibility for achieving BRI's Net Zero Target 2050, with KPI for emission reduction incorporated into the
performance assessment system.
The authority and responsibilities of the ESG Committee include:
• Approval of sustainability policies, strategies, and implementation roadmaps: Empowering the committee to guide Coordination and Collaboration with Management Teams
BRI's efforts in achieving its sustainability goals. The ESG Division does not operate independently but actively coordinates with all relevant units to address issues related
• Approval of net-zero emissions targets and decarbonization measures: Reflecting BRI's commitment to combating to climate change. This is achieved by identifying key areas to be addressed in climate policy and governance structures.
climate change and reducing greenhouse gas emissions.
• Collaborating with the risk management team to identify, measure, and effectively mitigate climate change.
The ESG Committee actively monitors and evaluates BRI's performance in ESG, including ensuring the committee receives • Supporting sustainable projects and activities with the business to achieve emission reduction targets.
up-to-date information on BRI's progress in ESG, reviewing the integration of climate change into formal risk management • Engaging the entire operational hierarchy in planning and implementing climate change initiatives.
processes, and monitoring progress in addressing climate change issues through periodic reports.
To ensure that BRI achieves its ESG goals, the Strategy Division also regularly monitors and reports ESG performance to the
Board Commitment Board of Directors.
As a follow-up to ensuring that ESG becomes an integral part of BRI's strategy and operations, the BRI Board demonstrates
its commitment by incorporating ESG-related Key Performance Indicators (KPIs), including the BRI's ESG Rating/Score, into
the performance evaluation system.
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
Climate Change Poses Risks but also Creates Opportunities BRI Approach to Climate Change Scenario Analysis
Indonesia is committed to reducing carbon emissions to mitigate global temperature rise by increasing the target of Climate change poses significant risks to businesses across various sectors. To assess and mitigate the potential impacts of
Enhanced Nationally Determined Contribution (E-NDC) to 32%, equivalent to 912 million tons of CO2, by 2030, compared climate change on operations, supply chains, assets, and financial performance, BRI has conducted scenario analyses. This
to the previous 29% target. Anticipating more carbon-related regulations in the near future, these developments will impact proactive step was taken to understand the potential consequences of climate change and implement necessary measures.
Indonesia's industries and, inevitably, financial intermediaries. BRI has identified and analyzed climate risk, categorizing
it into transition risk and physical risk according to TCFD recommendations. This analysis is integrated into the risk
management and business strategies across the organization, enhancing the ability to withstand and adapt to climate-
Scenario Analysis Methodology
related challenges, thereby bolstering our climate resilience.
Sector Materiality Climate Scenario Material Climate-related Climate Change Scenario
BRI has become a catalyst in the government's agenda to drive energy transition in Indonesia, by participating in the Assessment Analytical Choices Issues Analysis
inaugural carbon market opened by the President of the Republic of Indonesia on September 26, 2023. BRI purchased
carbon units totaling 4,501 tons of CO2, the acquisition of which is also utilized to enhance BRI's internal awareness of
1 Portfolio understanding 3 Scenario construction 4 Climate-related issues 5 Understand impacts of
transition risks. These carbon units have been retired for the year 2023. The portfolios were Based on the chosen identification climate-related issues
categorized by asset class sectors in materiality Material climate-related Climate change scenario
and sector based on assessments, pathway issues were then identified analysis was conducted
114 Quantis’ sector classification selection and analytical based on 1) market review; based on data retrieved
and the International choices were made to 2) industry characteristics; from models including
Standard Industrial construct a scenario. and 3) locations of BRI CLIMADA, ISIMP database,
Introduction of carbon pricing may Classification (ISIC). operation and portfolio GCAM5.3 +NGSF etc., to
+/- CapEx: Investment hurdles affected by internal and understand the impacts of
increase the energy cost of operations and
external carbon prices. the climate-related issues
Policy & highly impact the return on investment in Pathways
Legal some industries. Ambitious climate-related +/- CapEx: Value of assets based on emissions, energy, 2 Exposure and emissions IPCC RCPs, IEA, NGFS
policies are expected. or water intensity; carbon price. analysis pathways
+/- Assets (intangible): Increase in brand value for The financial exposure and pathways
timely response to national decarbonization strategies sectoral emissions of BRI’s time horizon, assumptions
Technological advancement presents an or vice versa. portfolios were examined
to identify specific sectors
Transition Technology opportunity to support transition towards a +/- Assets (intangible): Needs in attraction and retention
with high climate-related
lower-carbon economy. of competent employees.
Risks risks and opportunities.
Impact On BRI
- Liabilities: Impact on credit rating due to failure in
Customer and investor preference meeting regulatory requirements.
Reputation alteration; increase of negative feedback + CapEx: Purchase of equipment or new technologies
from stakeholders. to manage transition risk, adaptation, and conservation/
efficiency efforts.
+ Liabilities: Impact on stock price due to the ability to
Customer behavior alteration; change
tap into customers first, which can lead to strong brand
BRI is currently enhancing its approach to climate-related risk scenario analysis by conducting Climate Risk Stress Testing
Market in demand and supply for products and
services. recognition. (CRST) in line with the Financial Services Authority (OJK) of Indonesia. BRI will release its first analysis of CRST during 2024.
+ OpEx: Costs to improve energy or water conservation and
Heatwaves, Flooding, Tropical Cyclones,
Acute Wildfires.
efficiency capabilities.
- Assets (tangible): Physical damage or impairment of assets
Physical due to weather events.
Risks
+ CapEx/OpEx: Purchase of equipment or new technologies
Chronic Temperature Rise, Sea level rise, Water stress for physical risk mitigation, Expenses to address physical
risks (e.g., insurance premiums, recovery expenses).
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
Sector Materiality Assessment The share of Exposure and Carbon Emissions of Each Industrial Sector
Share of Exposure
Portfolio Understanding
Share of Emission
50%
The 3 largest sectors for investment are (1) wholesale trade and commission trade, except
for motor vehicles and motorcycles, (2) agriculture, hunting, forestry & fishing, and (3) public 40%
administration and defense; compulsory social security,all of which account for 62.73% of the
total investment. However, the sectors with the largest exposures do not necessarily face the 30%
largest physical/transition climate-related risks. Sector emissions should also be considered in
the materiality assessment. As for materiality by sector emissions, sectors with high portfolio 20%
emissions usually face larger climate transition risks. (1) Agriculture, hunting, forestry, and
fishing, (2) electricity, gas, and water supply, and (3) wholesale trade and commission trade 10%
are the three largest greenhouse gas (GHG) emitting sectors, accounting for 69.75% of total
emissions. 0%
Wholesale Agriculture, Public Manufacturing Other Real Estate Financial Electricity, Gas Construction Mining and
Trade and Hunting, Administration Community, Activities Intermediary and Water Quarrying
Commission Forestry & & Social, and Supply
115 Trade Fishing Defense Personal
Services
Exposure and Emission Analysis Economic carbon intensity of Each Industrial Sector
The analysis of carbon intensity has revealed that the (1) electricity, gas, and water supply,
(2) agriculture, hunting, forestry & fishing, and (3) mining and quarrying sector have the 0.33
three highest carbon intensities in the entire asset portfolio. BRI is planning to establish
an engagement strategy that boosts businesses' participation in green activities instead of
excluding industrial sectors with high carbon intensity to reduce carbon emissions.
0.14
0.12
0.04 0.05 0.05
0.01 0.01 0.02 0.02
Real Estate Financial Wholesale Public Other Construction Manufacturing Mining and Agriculture, Electricity,
Activities Intermediary Trade and Administration & Community, Social, Quarrying Hunting, Forestry & Gas and Water
Commission Defense and Personal Fishing Supply
Trade Services
Low carbon intensity High carbon intensity
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Governance: Social: Environmental: Sustainability Report 2023
Introduction Maintaining Good Corporate Governance Empowering The People Nurturing The Planet Appendices PT Bank Rakyat Indonesia (Persero) Tbk.
Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
Climate Scenario Analytical Choices & Material Climate-related Issues
Scenario Construction Climate-related issues identification
In the climate scenario analysis, the following analytical choices have been made as the basis for the scenarios that have Relevant climate-related issues are selected based on the geographic location of BRI’s operations, their effects on BRI’s
been established. Each of the publicly available scenarios provides a range of pathways, each accompanied by a set of key operations, and the nature of material sectors for analysis under the formulated scenarios. Climate-related issues are
characteristics formulated on a scientific basis by the providing organizations. On this basis, BRI has selected the relevant typically classified into two major categories and six subcategories in total.
pathways to form a holistic view of a plausible future, with one representing a low-emission future (2°C or lower scenario),
and one representing a high-emission future (above 2°C scenario).
+2oC globally
Low emission scenario High emission scenario
Temperature rise Policies
Risk Provider
Pathways Pathways +0.9°C if average daily temperature More stringent emission disclosure obligations
Physical Risk Scenario IPCC SSP1 – 2.6 SSP5 – 8.5
Flooding Carbon price
Transition Risk Scenarios IEA Net Zero Emissions by 2050 Scenario (“NZE”) Stated Policy Scenario +13.5% annual damage from river floods by 2050 Estimated carbon price as USD 66,04/tCO2 dan USD 387,22/tCO2
116
(“STEPS”) by 2030 and 2050 respectively
NGFS Orderly Pathways Hot House World
Heatwaves Market
+ 10.5% of population exposed to heatwaves by 2050 Technology advancement in more energy efficient equipment
Sea level rise Reputation
+4.4mm/year Corporates to loss reputation for financing carbon intensive
activities
+4oC globally
Temperature rise Sea level rise
+1.4°C if average daily temperature + 11.2mm/year
Flooding Droughts and wildfires
+80.3% in annual expected damage from river floods by 2050 +9% annual probability for Indonesia to experience a year with
a severe drought by 2090s, Increasing probability of wildfire due
to droughts
Heatwaves Tropical cyclones
The likelihood of experiencing heatwaves is 96% higher, Median + 7.6% of 1-in-100-year expected damage from tropical cyclone
of 200 days with Heat Index >35°C by 2050
Operation
Physical damage of BRI’s assets, demand for building resilience of BRI’s assets, blockage of access to BRI’s offices, data centers and branches
under extreme weather, higher energy demand to maintain a comfortable environment for offices and branches
Page 117
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
Transition Risk Scenario Analysis on Portfolio
Low emission A high carbon price scenario assumes full
Carbon cost projection calculations reflect the financial cost per ton of greenhouse gas emissions related to potential future pricing or tax hikes. This varies based on the choice of implementation of policies in line with the
scenario
scenario, as well as the industrial sector. High carbon cost projections indicate that a company’s carbon costs will rise, increasing its exposure to climate risks. Therefore, financial Paris Agreement goal of 2°C
institutions should pay close attention to managing industrial sectors with a high carbon cost projection since the soundness of asset portfolios may deteriorate if carbon costs are high
in their portfolios.
A low carbon price scenario assumes full
High emission implementation of countries’ NDCs, most
By selecting the relevant pathways, BRI has analyzed two scenarios to form a holistic view of a plausible future, with one representing a 2°C-aligned future, and the other representing of which are not expected to meet the Paris
scenario
a high-emissions future scenario, reflecting the carbon cost’s characteristic of changing according to the scenario and base year. The analysis shows that the stronger the scenario, the Agreement goal of limiting climate change
higher the total carbon cost of companies within each asset portfolio. This means that as greenhouse gas emission reduction targets rise and relevant regulations become stronger, under +4°C scenario.
companies’ financial burdens within the asset portfolio increases.
117 NFGS - Hot House World (High Emission Scenario) NFGS - Orderly Pathways (Low Emission Scenario)
(in Trillion Rupiah)
(in Trillion Rupiah)
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
-
- 2025 2030 2040 2050
2025 2030 2040 2050
Agriculture, Hunting, Forestry & Fishing Agriculture, Hunting, Forestry & Fishing
Mining and Quarrying Construction Mining and Quarrying Construction
Electricity, Gas, and Water Supply Electricity, Gas, and Water Supply
Public Administration & Defense Financial Intermediary blic Administration & Defense Financial Intermediary
Wholesale Trade dan Commission Trade Wholesale Trade dan Commission Trade
Other Community, Social and Personal Services Real Estate Activities Other Community, Social and Personal Services Real Estate Activities
Manufacturing Manufacturing
The carbon price projection Data is extracted from GCAM 6.0 +NGFS.
Page 118
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
Physical Risk Scenario Analysis
Extreme Heatwaves Highlight
The map highlights provinces and regencies in Indonesia that are exposed to higher heatwave risks, with the highest risk predicted in South Sumatra province.
Located in Southeast Asia, Indonesia is positioned as one of the most vulnerable
countries to experience extreme heatwaves, a prolonged period of excessively hot
weather often accompanied by high humidity. This phenomenon brings severe
impacts on human health, ecosystems, and infrastructure. The country is expected to Below 0.5oC 0.6oC Above 0.7oC
experience high temperatures regularly, and the likelihood of heatwaves dramatically
increases by 96% under the high emission scenario.
118
SSP1-2.6 SSP5-8.5
BRI has also conducted assessments of its overseas branches that are exposed to extreme heatwaves.
New York Branch Hong Kong Branch Cayman Islands Branch Singapore Branch Timor-Leste Branches Taiwan Branch
Change in mean temperature by 2050 Change in mean temperature by 2050 Change in mean temperature by 2050 Change in mean temperature by 2050 Change in mean temperature by 2050 Change in mean temperature by 2050
Low emission scenario High emission scenario Low emission scenario High emission scenario Low emission scenario High emission scenario Low emission scenario High emission scenario Low emission scenario High emission scenario Low emission scenario High emission scenario
Below 2.0 3.0 4.0 5.0 Above Below 1.5 2.0 2.5 Above Below 1.0 1.5 2.0 Above Below 1.0 1.5 2.0 Above Below 1.0 1.5 2.0 Above Below 1.0 1.5 2.0 2.5 Above
0.1oC 5.3oC 0.1oC 2.7oC 0.1oC 2.2oC 0.1oC 2.2oC 0.1oC 2.2oC 0.1oC 2.7oC
Source: Climate Impact Explorer
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Strategy
BRI has also conducted assessments of its overseas branches that are exposed to flooding.
Flood Zone Highlight
New York Branch Hong Kong Branch
Due to its geographical characteristics, Indonesia is exposed to a high risk of flooding, attributed to extreme weather
events and sea level rises. Flooding poses impacts on BRI's operations, potentially blocking access to branches and causing Land projected to be below annual
Land projected to be below annual
physical damage. The results indicate that the capital, Jakarta, accounts for approximately 25% of the projected national flood level in 2050
flood level in 2050
climate change cost. The city is susceptible to flooding due to water inundation from sea level rises and increased rainfall.
Although BRI's headquarters and data center are in Central Jakarta and South Jakarta, respectively, with direct impacts
relatively small, there remains a risk of disruption to BRI's operations. This is particularly relevant for 3.9% of branches in
coastal areas, with the majority located in the city of Surabaya.
The map highlights provinces and regencies that are exposed to high flooding risks.
Low emission scenario High emission scenario Low emission scenario High emission scenario
119 Singapore Branch Cayman Islands Branch
SSP5-8.5
Land projected to be below annual Land projected to be below annual
flood level in 2050 flood level in 2050
Low emission scenario High emission scenario Low emission scenario High emission scenario
SSP1-2.6
Timor-Leste Branches Taiwan Branch
Land projected to be below annual Land projected to be below annual
flood level in 2050 flood level in 2050
Low emission scenario High emission scenario Low emission scenario High emission scenario
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Risk Management Board of Commissioners & Directors
Risk Management Framework
Risk Management Pillar
Active Supervision of the Board Adequacy of Policies, Adequacy of MR Process & Risk
of Directors and Board of Procedures, and Setting Limits Management Information Adequacy of Internal Control
Commissioners System
Through an evolutionary process, BRI has prioritized stakeholder engagement, actively
seeking input from customers, investors, regulators, and industry experts. These
engagements have enabled BRI to better understand stakeholder expectations and
incorporate diverse perspectives into its risk management approach. The integration UKO & SKMR Independent
Board of Commissioners Board of Directors Committee Identification, Measurement,
Committee Oversight function Monitoring, Control
Assurance
of climate-related risks into BRI’s risk management practices shows the bank’s
commitment to responsible banking and sustainable finance. By effectively managing Risk Management Risk Management & ESG Committee Credit Policy
Monitoring Committee Credit Risk Business Risk Taking
climate risks, BRI aims to enhance its resilience, safeguard its stakeholders’ interests, and Credit Risk Strategic Risk Committee
Compliance Risk Risk Analytics & Control
BRI
contribute to global efforts in mitigating climate change. This ongoing journey reflects Integrated Governance Market Risk
Internal Audit
Committee Reputation Risk Credit Committee
Unit
BRI’s dedication to continuously improving its risk management framework and staying Liquidity Risk Operation
Intragroup Risk
at the forefront of sustainable banking practices. Operational Risk Insurance Risk Integrated Risk Information Systems MR
Audit Committee Committee
Legal Risk Climate Change Risk
Scenario analyses could be considered the first step in understanding the impacts of
120 relevant climate-related risks on BRI’s operations and investment portfolio. The results The Director in charge of MR
Subsidiaries
Subsidiary’s Board of
Commissioners Subsidiaries Subsidiary IAU
are used as the basis for understanding the potential risks and impacts of the relevant
climate-related risk.
Subsidiary SKMR
Integrating climate-related risk into existing enterprise risk management systems
Credit Strategic
Risk Capacity Maximum
Risk Level Market Compliance
Risk Tolerance
Risk Capacity
Risk Appetite
Risk Tolerance Climate Risk Profile Liquidity Reputation
Operational Intragroup
Risk Appetite RAS =
Downside Legal Insurance
Risk,
Current/ Pessimistic
Target Risk Loan Portofolio Guideline
Profile Risk Profile/
RKAP ≈ Climate Risk Policy Sub sector loan policy
Normal,
Business as Exclusion List
usual
RAS ≠
Business Credit approval procedure
Target Climate Risk Review
Financing Review, monitoring, and evaluation
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Risk Management
Integrating Climate Risk to Risk
Profile
Risk Profile Type Climate Risk Type Key Driver Response Activities
BRI incorporates an evaluation of both risks and • Carbon Pricing • Engaging with portfolios to encourage the adoption of
opportunities posed by climate change within its Policy & legal • National decarbonization strategies policy & legal related to carbon pricing, decarbonization
• Climate related disclosure obligation strategies, and climate disclosure
business operations. Specifically, during the identification
Credit Risk
and response phases of managing climate-related • Increased market demand for greener products • Giving advice on portfolios to shift into green infrastructure
risks, BRI not only pinpoints potential threats but also Market • Changing customer behavior • Developing green banking products and services
• Market demand for green finance
recognizes opportunities linked to climate change. This
approach positions climate change not merely as a • Carbon pricing • Actively implementing BRI’s carbon neutrality strategy
crisis, but as a transformative juncture for fostering new Policy & legal • National decarbonization strategies • Strengthening the application of global standards within
• Climate-related disclosure obligation the climate change response framework
business ventures and achieving enhanced growth.
Compliance Risk
To assess climate change risks and opportunities, BRI Market • Market demand for green finance • Developing green banking products and services in
accordance with regulations
has categorized the impact and duration of each risk
121 to gauge the required response urgency. This involved Policy & legal • National decarbonization strategies • Revamping strategies and implementation to meet the
assigning high, medium, or low classifications for impact needs of stakeholders
• Securing customer and investor confidence by
on the Business Resilience Initiative (BRI), and short- Market • Increased market demand for greener products strengthening environmental management
Reputation Risk
term, medium-term, or long-term classifications for the • Disclosing the climate change issues through TCFD report
• Risk of loss of trust and confidence in investors and SR
duration of each identified risk. BRI addresses each risk Reputation • Opportunity to enhance reputation & brand value
comprehensively by tailoring responses to the identified
key drivers associated with each potential risk.
• Increased demand for lower-carbon technology • Expanding lower-carbon technology related investment
Technology • Monitoring lower-carbon technology and research trends
Market • Increased demand for lower-carbon technology • Conversion to renewable energy
Operational Risk
• Heatwaves • Establishing a Business Continuity Plan (BCP)
Acute • Flooding • Executing mock exercises and emergency evacuation drills
• Tropical cyclones • Developing climate change response strategy according to
• Wildfires the physical risk and chronic scenario analysis
• Temperature rise
Chronic • Sea level rise
• Water stress
• Increased market demand for greener products • Identify the ESG risks within products and services
Strategic Risk Market • Changing customer behavior • Revamp the composition of green products and services
• Market demand for green finance
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Risk Management
Climate Risk Assessment As most BRI branches, specifically 7,749 out of 7,755 branches, along with 3 offices and 2 data centers, are located in Indonesia, the impact of
climate-related risks in the country has the greatest effect on BRI's operations. Analyses focus on the impacts on BRI's operations in Indonesia. In the
BRI assesses material risks based on the severity of impact and the likelihood of the risk exercise, physical risks on this page illustrate risks identified under the high emission scenario, in which transition risks illustrate risks identified under
concluding in a risk level for material climate-related risks on operations. the 2°C aligned scenario. Physical risks under the low emission scenario are deemed to be low, whereas transition risks under the high emission
scenario are deemed to be irrelevant, as it is expected that policies/risks related to low-carbon transition will be irrelevant under a fossil fuel-driven
economy.
Severity × Likelihood = Risk level
Risk Level per Scenario
Time Risk
Severity Risk Period Trend
The level of impact that directly or indirectly affects BRI’s operating performance or its financial Low Emission High Emission
condition
Carbon pricing High N/A M-L +
Policy &
Legal National decarbonization strategies High N/A S-M -
Likelihood
The frequency of the risk impacting on BRI’s operating performance or its financial condition Climate-related disclosures obligations Medium N/A S-M -
Technology Increased demand of lower-carbon technology Low N/A M-L +
Increased adoption of renewable energy Low N/A M-L =
122 Transition
Risk
Increased market demand for greener products Low N/A S-M =
High
Severity
Market
Changing customer behavior Low Low M-L =
Medium Medium N/A =
Market demand for green finance M-L
Risk of loss of trust and confidence in investors Medium Low M-L +
Low Reputation
Opportunity to enhance reputation and brand value Medium Low M-L =
Likelihood +
Heatwaves Low High M-L
Flooding Low High M-L +
Acute
Tropical cyclones Low Medium S =
Risk Level Description
Physical
Risk Wildfires Low Low S =
A high-risk level refers to risk that is expected to deliver long-term adverse impacts on BRI’s
Temperature rise Low High L =
High operations and business strategies and that may cause changes in business direction or
strategies
Chronic Sea level rise Low High L =
Water stress Low Medium L +
A medium risk level refers to risk that is expected to deliver a long-term
Medium impact on BRI’s operations and business strategies.
Time Period S Less than 5 years M 5 - 10 years L Over 10 years
A low risk level refers to risk that is expected to deliver short-term impact on BRI’s
Low operations and that requires one-off measures to adapt to the existing operation model or
Risk Trend - Decrease over time = Remain stable over time + Increase over time
on-going monitoring of risk
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Climate Change Risk Management
Climate Risk Policy and Review on Loan Portfolio
BRI has a climate risk policy applied to financing policies covered in the Generally Accepted Risk Criteria, exclusion list, and
Sub-Sector Financing Policy. Detailed policies and credit approval procedures can be found on page 69.
Assessment of Risk and
Control Self-Assessment (RCSA)
Qualitative and predictive risk
management tool used to identify and
measure risk (including climate change
Operational Risk Management Process - Related to Climate Change related risk) based on the dimensions of
impact and likelihood
Assessment of Risk Management
The operational risk management process is carried out in accordance with governance set out in the operational risk Adequacy of New Bank Products
management framework and uses tools in accordance with regulatory provisions and best practices. The process of The application of the risk management
measuring and calculating operational risk is carried out through the following activities: process for each New Bank Products issuance
plan at BRI is carried out by considering
climate change issues
Recording Operational Risk Losses
in the Loss Event Database (LED)
123 Business Continuity Plan (BCP) Implementation
LED BRI includes the process of recording
data on loss events due to climate
change, both financial and non-financial,
01
which include actual losses, potential
Business Impact Analysis (BIA) BIA to assess the impact of business activities/ losses including corrective actions, and
processes in the event of a disruption/disaster incident handling
Key Risk Indicator Monitoring (KRI)
KRI is a Risk Management tool in the form of
02 Determination Strategy From the results of the BIA, a Recovery a quantitative indicator that could provide early
Recovery Strategy is determined to achieve the information on increasing or decreasing risk and/or
decreasing the effectiveness of controls against
predetermined RTO (Recovery Time Objective) target
predetermined thresholds
Risk Assessment Plan (RAP)
Develop BCP procedures to determine structure,
03 Development Business Risk strategy preparation
Continuity Procedure format and components that need to be included in activities carried out by Regional Risk
BCP Management with the output being a
list of main risks, work unit priorities
based on risks due to climate change,
and risk control activity plans
To ensure that BCP implementation can be carried out
04 Socialization and Trials properly, socialization & trial activities must be Disaster Threat Risk Assessment
routinely carried out BRI implements a Disaster Threat Risk Assessment as
an implementation of Business Continuity Management (BCM)
to protect the security and safety of employee lives, protect the
lives of customers and other stakeholders within BRI's operational
work units (disaster management plan), as well as maintain the
continuity of business/operational activities, which most
importantly, maintain BRI assets and have an adequate response
in situations of natural disturbances/disasters due to climate
change (Business Continuity Plan (BCP)
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Metrics and Targets
What Gets Measured, Gets Managed
Scope 1 & 2 (Operational Emissions)
Measurement is a critical component of improvement. Without measuring performance,
492,370 486,271
it would be difficult to determine whether progress is made or whether the desired results
BRI's Greenhouse Gas (GHG) emission management strategy refers to ISO 14064 with a calculation
are being achieved. By measuring and managing progress over time, it becomes easier to methodology based on the Intergovernmental Panel on Climate Change Guidelines (IPCC) from 2006, which
make data-driven decisions and to continuously improve performance. BRI measures and was updated in 2019. BRI's emission calculations involve branch offices throughout Indonesia, employing a
manages both Scope 1 & 2 and Scope 3 emissions. Scope 1 & 2 emissions are generated from consolidated approach that takes into account financial and operational controls. The calculated gas is CO2,
355,742
360,135
Reduction of 42%
BRI operations, while Scope 3 financed emissions are incurred by its investment and lending with a Global Warming Potential (GWP) value of 1 (CO2 equivalent). [3-3] [305-1] [305-2] [305-3] [305-5]
activities, and account for the majority of the bank’s total GHG emissions. [305-1, 305-2, 305-3]
BRI has set a target to reduce Scope 1 & 2 emissions by 42% by the year 2030, with the goal of achieving Net
Zero Emission (NZE) in operations by 2050.
BRI is the first institution in Indonesia to join the Partnership of Carbon Accounting Financials
(PCAF) and utilize its methodology to measure and disclose financed emissions1. The PCAF
130,529
132,235
Net Zero
methodology was devised based on the Greenhouse Gas Protocol - a global accounting Target
Emissions in tons of CO2e 2022 2023 Decrease (%)
standard for greenhouse gas emissions - and provides consistent and validated measurement
2022 2023 2030 2050 Scope 1 132,235 130,529 1.29%
standards.
124 Base Year Short-term Target Scope 2 360,135 355,742 1.22%
Scope 1
Furthermore, BRI has followed the SBTi’s coverage requirements for financed emission Scope 2
Note:
measurement per asset type, including corporate loans, electricity generation project finance, • Scope 2 emission factors: Directorate General of Electricity, Ministry of Energy and Mineral Resources (DJK-ESDM) in 2019
• Fuel emission factor: Oil and Gas Institute (Lemigas) Energy and Mineral Resources in 2021.
commercial real estate, listed equity, and bonds. • Other emission sources use emission factors agreed by the IPCC.
• Ozone depleting substances (ODS), biogenic emissions, NOx, SOx, VOC (volatile organic compound gas), PM (particulate matter), and other significant gases contributing to air emissions have not been considered in this calculation. [305-1] [305-2] [305-3] [305-5]
[305-6] [305-7]
Scope 3 (Financed Emissions)
BRI Financed Emission Measurement Approach
Since 2022, BRI has been measuring Scope 3 financed emissions attributable to financing and investments. The measurement scope is focused on activities required by the SBTi
(Science-Based Targets initiative). BRI's financing for 2023 is estimated to reach 10,434,550 million tons of CO2e. BRI has disclosed the physical emissions intensity for asset classes
and sectors with available Sectoral Decarbonization Approach (SDA) pathways from SBTi. BRI plans to measure and report progress annually and expand the scope coverage as
methodologies become available. [3-3] [305-3] [304-5] [305-5]
Scope 3 (Financed Emissions) 2022 2023
Choosing a Category
Emission (tons of CO2e) Emission (tons of CO2e)
fixed point in Measure of Calculate BRI’s
Calculate BRI’s
time for company-level portfolio’s 11,222,829 Asset class
measurement, share of
or project-level absolute Bond investment 437,036 460,841
and sector emissions
GHG emissions emissions Business loans 6,776,501 6,358,055
mapping
10,434,550
Listed equity 381 881
Electricity generation project finance 3,872,508 3,504,669
Commercial real estate 136,403 110,104
Emissions in tonCO2e
2022 2023 Total 11,222,829 10,434,550
Note:
The calculation and reporting of financed emissions refer to the Global GHG Accounting and Reporting Standard, The Partnership for Carbon Accounting Financials (PCAF) standard, and SBTi. [3-3] [305-3]
Page 125
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Metrics and Targets
Target Setting Methodology
More than 4,500 companies worldwide have committed to establishing science-based targets through SBTi, indicating the A profound understanding of specific emission sources in each sector enables BRI to design more specific and efficient
increasingly widespread adoption of these standards in environmental impact reduction efforts. In this context, BRI, as the solutions. Consequently, BRI can achieve emission reductions more effectively and have a positive impact in supporting
largest financial institution in Indonesia, became the first bank to submit a commitment letter for approval from SBTi. In global efforts to address climate change.
alignment with this commitment, BRI supports its corporate clients in setting emission reduction targets in accordance with
SBTi standards. Through this engagement, BRI aims to achieve carbon neutrality by the year 2050. [3-3] [305-4] [305-5] Referring to the SBTi guidelines for financial institutions, the following outlines the SDA approach adopted by BRI.
Target Paper & Pulp, Commercial Real Estate, Power Generation, and Power Generation
BRI has set Scope 3 (Finance Emissions) targets according to SBTi’s criteria for Scope 3 Portfolio Targets. Project Finance
FI-C15 - Requirement to Set Target(s) on Investment and Lending Activities: All financial institutions shall set Base Year 2022
targets on their investment and lending activities as required by FI-C16, irrespective of the share of quantified
Calculating Baseline Emission
Scope 3 portfolio emissions as compared to the total emissions or Scope 1,2 and 3 emissions of the financial Intensity to Establish SDA Targets Measure GHG Calculate
Select
Calculate decarbonization
emissions financial institution’s
institution. FIs may choose from the applicable methods for target setting, by asset class. per loan and share
emission pathway and set
intensity an emissionbased
FI-C16 - Portfolio Target Boundary: Financial institutions shall set targets on all “Required Activities” in the investment of emissions
SBT
125 Required Activities and Methods Table following the minimum boundary coverage requirement.
Establishment of Carbon Neutrality Setting targets and reduction pathways based on scenarios below 2oC
Targets
As part of its sustainable business practices, BRI has developed a methodology for setting emission reduction targets, taking Temperature Ratings Method
into consideration factors such as: BRI utilizes the Temperature Ratings Methodology to establish emission reduction targets for various other sectors in
• The bank's contribution to GHG emissions: BRI utilizes internationally recognized methodologies, such as the corporate financing where the SDA approach is not applied. This method measures the extent to which companies have
Greenhouse Gas Protocol, to calculate emissions. adopted carbon emission reduction targets in line with scientific global warming goals. The method provides temperature
• The bank's ability to reduce emissions: BRI formulates various strategies to reduce emissions both directly and indirectly. ratings to associate carbon emission targets with estimated global temperature increases and offers an intuitive perspective
• National and international emission reduction goals: BRI aligns its targets with broader objectives, such as Nationally on the impact of a company's emission reduction on climate change. The higher the emission reduction targets, the lower
Determined Contributions (NDC) and the Paris Agreement. the temperature score and temperature rating of BRI's asset portfolio.
Considering these factors, BRI measures and sets carbon emission reduction targets using the SBTi methods, namely the Formulating greenhouse gas emission reduction targets using the Temperature Ratings Methodology involves:
Sectoral Decarbonization Approach (SDA) and Temperature Ratings Method.
1 2 3
Target protocol: Company protocol: Portfolio protocol:
Sectoral Decarbonization Approach (SDA) mapping target identify, filter, and aggregate aggregation of multiple
ambition multiple target scores into company scores into one
BRI establishes emission reduction targets for each industry sector based on the principles of the Sectoral Decarbonization levels to temperature one company score portfolio score
outcome
Approach (SDA). This approach places specific emphasis on carbon intensity as the key indicator in determining reduction
targets. The effectiveness of this approach is evident as different economic sectors contribute differently to greenhouse gas
emissions, leading to varied speeds in achieving net-zero emissions. To formulate greenhouse gas (GHG) emission reduction targets using the Temperature Ratings Methodology, BRI
categorizes sectors within the loan, bond, and listed equity portfolios, setting carbon reduction targets based on their
respective temperature ratings. BRI is committed to progressively reducing the portfolio's temperature score toward
the 2040 goal, which is a temperature rating of 1.75% for Scope 1&2 and 2.0% for Scope 1&2&3.
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Metrics and Targets
Our Progress
Sectoral Decarbonization Approach (SDA) Target and Pathway of Reduction for Each Industrial Sector Based on SDA
In the effort to achieve the net-zero target by 2050, BRI
has conducted calculations of the carbon intensity from
financed emissions. BRI establishes specific targets and Paper and Pulp Commercial Real Estate
pathways for industrial sectors, such as paper & pulp,
commercial real estate, power generation, and power 1.075 0.123
0.117
generation project finance, using the base year 2022. 0.959
Reduction
Reduction
Generally, in 2023, there was a decrease in emission 33%
46.4%
intensity in the sectors financed by BRI, except for Reduction
the power generation project finance industry, which Reduction
experienced an increase from the base year. This 71.6%
80.8%
phenomenon can be explained by the settlement of
126 companies that had set carbon emission reduction 0% 0%
targets among the targeted companies calculated in the
previous year. 2022 2023 2030 2040 2050 2022 2023 2030 2040 2050
These changes result from the dynamics of changes
in our financed emission portfolio and are part of our
commitment to continuously monitor, assess, and adjust Power Generation Project Finance Power Generation
strategies to achieve the set emission reduction targets.
BRI remains committed to actively supporting the 0.548 0.545 0.858
transition towards amore sustainable economy. 0.816
Reduction Reduction
40.8% 40.61%
Reduction
Reduction
81.0% 80.6%
0% 0%
2022 2023 2030 2040 2050 2022 2023 2030 2040 2050
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Metrics and Targets
Our Progress
The Formulation of GHG Emission Reduction Targets Using the Temperature Ratings Methodology
Temperature Ratings Method (TRA) Loan
In setting emission reduction targets for portfolios that do not follow the
Sectoral Decarbonization Approach (SDA), BRIemploys the Temperature Ratings Scope 1, 2 Scope 1, 2, 3
Methodology to establish and manage emission reduction targets. In 2023, there Annual Reduction Rate (OC/ year) 0.0783 Annual Reduction Rate (OC/ year) 0.0656
is atrend of decreasing temperature ratings in BRI's loan portfolio compared to
2022. To achieve future targets, BRI has planned concrete steps, such as improving 3.5
3.16oC 3.14oC
3.5
3.18oC 3.18oC
energy efficiency in operations, investing in renewable energy sources, and 3 2.77 C
o
3 2.85oC
collaborating with our borrowers to accelerate the transition to environmentally 2,5 2,5
friendly business practices. 2o C
2 1.75oC 2
1,5 1,5
Our commitment extends beyond target setting; it involves regular monitoring
1 1
and evaluation of progress. We are preparedto adapt to scientific developments
and the evolving demands of climate change. We are open to dialogue and 0,5 0,5
127 sharing information with stakeholders regarding our efforts, achievements in
achieving emission reduction targets, and the positive impact on climate change. 2022 2023 2027 2040 2022 2023 2027 2040
Bond & Listed Equity
Scope 1, 2 Scope 1, 2, 3
Annual Reduction Rate (OC/ year) 0.0756 Annual Reduction Rate (OC/ year) 0.0661
3.5 3.5 3.19oC 3.18oC
3.11oC 3.09oC
3 2.73 C
o 3
2.86oC
2,5 2,5
2o C
2 1.75 C
o 2
1,5 1,5
1 1
0,5 0,5
2022 2023 2027 2040 2022 2023 2027 2040
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Other Initiatives in Preserving the Environment
BRI has conducted an inventory of the pollutant absorption impact of the BRI Menanam Program:
As a testament to its commitment to climate change adaptation, especially in the
absorption of air pollutants, BRI has launched the BRI Menanam program. This initiative
The estimated absorption of
pollutant gases in 2023
780,606
kgCO2e
kgCO2e
involves the planting of plant seedlings in various locations across Indonesia. The BRI
Menanam Program has two primary objectives: to reduce the impact of air pollution
equivalent to
and to empower communities through the cultivation of economically beneficial plant
varietiesThe program engages various stakeholders, including micro customers such as Emissions from combustion of Emissions from
KUR beneficiaries, Mekaar groups, and BUMDES. In the implementation and maintenance 372,671 195 vehicle
of plant seedlings, BRI collaborates with entities such as BUMDES, Mekaar farming groups, and local community liter
organizations. Seed distribution occurs during the disbursement of micro customer credits and at 2,593 BRIliaN gasoline-powered vehicles fueled by gasoline for 1 year
128 Villages locations throughout Indonesia.
Emissions from an average of
The selected plant varieties for the BRI Menanam program not only aim to absorb air pollutants but also
intend to have economic benefits for communities. Plant varieties include avocado, durian, mango, and others.
170 households
using electricity for
As of December 2023, BRI Menanam program has successfully planted 904,196 seedlings of productive trees one year
distributed to BRIliaN Micro and Village customers. From the activities, the estimated carbon dioxide absorption is
780,606 kgCO2e.
BRI Menanam has also distributed plant seedlings to urban areas with limited land. In these urban areas, the
implementation of BRI Menanam utilizes the concept of urban farming.
Horticultural seedlings are provided to more than 1,000 PNM Mekaar groups in DKI Jakarta Province. As of
December 2023, a total of 1,141,462 horticultural seedlings have been successfully distributed to PNM Mekaar
groups.
904,196 1,141,462
seedlings of productive trees horticultural plant seedlings have been
have been planted distributed to the PNM Mekaar group.
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Other Initiatives in Preserving the Environment
Zero Waste to Landfill Program [F.13] [F.14] [F.15] [F.5]
BRI has established waste management and routine monitoring that includes a series of activities, from sorting, disposal, The amount of recycled waste reached 591,203 kg, equivalent to a reduction in emissions of 441,817 kgCO2e. BRI also
collection, and transportation, to processing. The Zero-Waste to Landfill program is BRI's focus with a vision that this launched the BRILiaN Green Day campaign, an initiative carried out every week that requires all BRILiaN personnel to use
program can be implemented in all work units to avoid emissions. The Zero-Waste to Landfill program is an effective waste tumblers and personal cutlery. This step aims to reduce the production of plastic waste from food and drink packaging
management model that reduces the accumulation of waste in office environments. The waste produced will be reused or or containers. During the COVID-19 pandemic, the use of disposable masks increased significantly. Realizing the potential
recycled so that no waste ends up in final disposal sites which pollute the environment. [B.3] threat of waste from disposable masks, BRI took the initiative to manage non-infectious mask waste. By providing special
dropboxes for mask waste at several points at the head office, the waste is processed into reusable items such as basins,
In the management process, BRI classifies waste into four categories, including : flowerpots, and other items. During the reporting period, there were no recorded waste spills. [B.3] [F.15] [F.12]
Emission Avoidance [3-3]
129 Digital Products and Services
Changes in people's behavior due to the COVID-19 pandemic have shifted many activities to digital
Glass, metal, plastic Paper platforms and opened up opportunities to reduce emissions. In implementing the ISO 14064
Greenhouse Gases method, BRI calculates customer emissions by comparing transaction behavior
at branch offices and digital platforms. BRI also conducted a digitalization survey by distributing
questionnaires to customers to understand customer types, in 2023. The information obtained includes
the average distance to an ATM or BRI work unit, the type of vehicle used, the fuel efficiency of the
majority of vehicles, and the use of smartphones as an applicable solution for daily transactions, as well
Residue Organic as a solution for reducing emissions. [305-3][305-5] [F.7]
Type of Service Frequency Avoided Emissions
(in thousands) (kgCO2e)
BRImo 3,088,817 597,105
Description 2023 BRI Merchant 318,283 61,528
Total Waste recycled/reused 591,203 BRIMOLA 10,819 2,091
Total waste discharged 16,563 BRILink 1,096,611 211,988
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Other Initiatives in Preserving the Environment
Implementation of the Green & Smart Building Concept [F.7]
Since its inauguration in 2022, BRILiaN Tower has received a gold category Greenship Certificate from the Green Building
Council of Indonesia. BRI continues to make optimization efforts by targeting BRILiaN Tower to receive the gold category Kaseya: Shutdown with Prompt
Greenship Certificate version 1.2. The building, which is located on an area of 8,200 m2 on Jalan Gatot Subroto in South This is an automated procedure designed to shut down a computer by displaying a confirmation prompt twice, giving the
Jakarta, recorded electricity savings of up to 19.49% accompanied by an emission reduction rate of 19.49%. user the option to turn off or not turn off the computer. This program aims to deactivate personal computers (PCs) that are
still online after working hours to increase the efficiency of BRI's electricity usage.
Apart from the BRILiaN Tower, BRI is also targeting the implementation of the green building concept in the construction
of other branch offices. In 2023, Menara BRI in Medan, North Sumatra applied for Greenship Certification with the target of
obtaining a gold category certificate from GBCI.
In 2023, energy intensity per BRI worker reached 24,271 mega joule (MJ), an increase/decrease of 7.1% compared to that in
Energy 2022. This increase/decrease was partly caused by the recovery of operational activities that returned to normal patterns by
returning to work from the office. Even though operational activities have returned to normal, BRI continues to implement
BRI has implemented various strategies to reduce energy use in office operations that not only helps reduce energy use, but various energy efficiency programs and efforts to control energy use.
also reduces greenhouse gas emissions. Several steps taken to improve the efficiency of electricity use include: [3-3]
130 y Implementing a work culture of saving electrical energy when there is no work activity The types of energy included in the intensity calculation are fuel, electricity, and energy consumption from within the
y Use of energy saving LED lights organization. The total number of employees calculated in energy intensity also includes outsourced employees, with
y Adjustment of elevator operating hours in the office the overall data related to fuel use obtained from company financial reports and energy use records that have been
y Operating electric vehicles for operational activities. implemented in work units. BRI does not sell energy to the public, does not use energy for heating or steam, and has not
identified fuel consumption from renewable resources. [3-3] [302-1] [302-2] [302-3] [302-4] [302-5]
BRI implements steps to save fuel oil use for operational vehicles, such as limiting vehicle age and regular maintenance, as
an effort to boost fuel consumption efficiency. BRI also promotes the use of environmentally friendly, non-subsidized fuel Water [F.8]
to control the volume of fuel use in operational vehicles. As an emission reduction initiative and a step towards renewable
resources, BRI operates 118 electric cars and 150 electric motorbikes. Evaluations are underway to measure the energy BRI relies on various natural resources in its operations and understands the importance of water as a crucial component
savings obtained from these practices. [3-3] in its various business activities. Water is a primary need to support vital functions in various BRI facilities such as places of
worship, toilets, canteens, and so on. Given the limited sources of clean water, BRI has implemented a water saving policy
To improve transparency, BRI has begun recording energy usage in each work unit. It is hoped that this initiative can be which provides direction to all parties on the most efficient use of water. BRI also carries out regular inspections of water
implemented comprehensively and increase the accuracy of the Company’s energy recording, where the reporting period installations to prevent leaks, water turbidity, or other serious damage.
was set with 2022 as the base year. The energy data is converted using a methodology and energy conversion factors from
the Ministry of Energy and Mineral Resources. Although BRI has not yet identified the reduction in energy required for As part of its sustainability efforts, BRI applies the principle of preserving the environment. Therefore, BRI does not use
products and services sold, the Company has carried out calculations of financed emissions. [3-3] [302-1] [302-2] [302-3] [302-4] [302-5] groundwater or river water, so as to avoid the impact of water stress. BRI relies on third party services in providing water
such as the Regional Drinking Water Company (PDAM) and the Jaya Regional Public Drinking Water Company (PAM) that
comply with Indonesian National Standards (SNI) regarding the quality of clean water that is safe for use in offices.
In 2023, BRI recorded water usage intensity per employee of 19.93 m3. This calculation also involves outsourced employees.
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Climate Change Governance Climate Change Strategies Climate Change Risk Management Metrics and Targets Other Initiatives in Preserving the Environment
Other Initiatives in Preserving the Environment
Paperless Campaign [F.5] Through these efforts, BRI has succeeded in reducing paper consumption in the Company's operational activities, and,
based on financial reporting data for 2023, a 40% decrease in paper use per worker was recorded. During the reporting
BRI continues to encourage efficient use of paper by adopting technology systems developed by the Company. This period, there was no separation of recording the use of input materials from recycling and there was no use of reclaimed
approach involves optimal integration of information systems for the benefit of customers and BRI's internal operations, products. [305-6]
assisted by applications that support operational efficiency.
The following are several paperless applications implemented by BRI:
1. e-Tax: Tax reporting app for customers, making BRI the first banking institution in Indonesia to use a similar application
(app);
2. e-Form: An app to replace paper-based service methods for frontline workers in BRI work units;
3. e-Statement: An app that provides information to customers via registered email addresses;
4. New Account Swap: Helping customers connect loan and checking products without having to have two separate
accounts;
131 5. Automated Teller Machines (ATMs) without printed receipts: Reducing paper use in banking transactions;
6. BRISPOT: An Android-based app connected via the internet to facilitate fast and paperless microloan decisions;
7. MY BRI: An Android-based app connected via the internet to facilitate fast and paperless consumer loan decisions;
8. BRIStars: BRI internal app that includes e-office features as a means of online correspondence and other personnel
menus;
9. BRISMART: Online learning management system application for BRI internal purposes;
10. BRIOPRA (BRI Digital Operation Risk Management Information System): An app for identifying and managing risks,
including the Risk and Control Self-Assessment (RCSA), the Main Risk Indicator (IRU)/Key Risk Indicator (KRI), the
Incident Management (MI), MR Forum, and maturity modules;
11. BRISIM (BRI Digital Management Information System): A web-based app for presenting BRI performance data and
information that can be accessed via mobile devices. BRISIM is expected to make it easier for employees to monitor
performance anywhere and at any time, including when outside the office;
12. BRIMEN (BRI Digital Management Information System): The concept of storing credit documents electronically with
physical documents stored in one place that is centralized, standardized and integrated with the system.
13. BRImo: Mobile banking app (super apps) which has a mutation check feature with a period of up to the last 5 years.
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
132
In This Section
133
ESG Data Tables
181
Reporting Standards Indices
189
Issued Securities Impact Reporting
Appendices 210
Assurance Report
215
Feedback Form
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PROFILE DATA
WORK UNIT
BRI Operational Work Unit Description Unit 2021 2022 2023
[GRI 2-6] [C.2]
Head Office # 1 1 1
Regional Office # 18 18 18
Branch Offices & Special Branch Offices* # 451 449 453
Overseas Branch / Representative Office # 6 6 6
Sub-Branch Office** # 588 579 556
Overseas Sub-Branch Office** # 3 3 3
BRI Unit # 5,222 5,156 5,117
Cash Office** # 525 506 505
133
Teras BRI** # 1,697 1,370 977
Teras Keliling # 132 117 115
Teras Kapal # 4 4 4
Number of Operational Work Units # 8,647 8,209 7,755
*) According to the Office Memorandum B.63.e-PPM/ODV/OD2/08/2023 dated August 3, 2023, regarding the submission of approval for changes in KCK supervision.
**) In accordance with POJK No. 12/POJK.03/2021 concerning Commercial Banks, there are adjustments for bank office networks consisting only of Head Offices, Regional Offices, Branch Offices and Sub-Branch Offices. In accor-
dance with the POJK, the types of BRI Unit, Teras BRI and BRI Cash Offices are included in the category of Sub-Branch Offices.
Description Unit 2021 2022 2023
ATM # 14,463 13,863 12,263
CRM # 7,407 8,007 9,007
EDC # 203,027 497,976 664,801
BRILink Agent # 503,151 627,012 740,818
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COMPANY SCALE
Company Scale Description Unit 2021 2022 2023
[GRI 2-6] [B.1] [C.3]
Net Profit Rp Billion 32,215 47,828 53,153
Revenue Rp Billion 152,228 162,155 189,646
Total Assets Rp Billion 1,572,761 1,750,995 1,835,249
Total of Third-Party Funds Rp Billion 1,127,849 1,300,776 1,352,683
Total Liabilities Rp Billion 1,286,343 1,457,373 1,536,512
Equity Rp Billion 286,418 293,622 298,737
Non Third-Party Funds Rp Billion 158,495 156,597 183,829
Number of Operational Work Units # 8,647 8,209 7,755
Quantity of Products or Services Sold. # 343 305 331
Note: During the reporting period, there were no products or services recalled. [F.29]
134 EMPLOYMENT
Gender [GRI 2-7] [C.3] Description Unit 2021 2022 2023
Male Person 48,354 46,411 47,262
Female Person 34,364 28,324 30,477
Total Person 82,718 74,735 77,739
Note: The composition of workers does not include outsourced workers. [GRI 2-7, 2-8]
Employment Status [GRI 2-7] [C.3] Description Gender Unit 2021 2022 2023
Male Person 40,843 40,296 39,875
Permanent Employee
Female Person 20,142 19,913 20,209
Male Person 7,456 6,021 7,135
Contract Employee
Female Person 14,164 8,326 10,072
Male Person 55 94 252
Trainee
Female Person 58 85 196
Total Person 82,718 74,735 77,739
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Description Gender Unit 2021 2022 2023
Placement Location [GRI 2-7] [C.3]
Male Person 8,312 8,231 9,121
Jakarta
Female Person 6,254 5,342 6,084
Male Person 9,367 9,021 9,021
Sumatra
Female Person 6,036 4,905 5,136
Male Person 5,242 4,978 4,960
West Java
Female Person 2,832 2,218 2,359
Male Person 8,144 7,777 7,912
Central Java and Yogyakarta Special Region
Female Person 5,755 4,738 4,927
Male Person 6,754 6,296 6,271
East Java
Female Person 5,211 4,175 4,684
Male Person 10,495 10,069 9,936
Eastern Indonesia and Central Indonesia
Female Person 8,270 6,940 7,281
135 Male Person 40 39 41
Others
Female Person 6 6 6
Total Person 82,718 74,735 77,739
Level of Education [GRI 2-7] [C.3] Description Gender Unit 2021 2022 2023
Male Person 0 0 0
Elementary School
Female Person 0 0 0
Male Person 0 0 0
Junior High School
Female Person 0 0 0
Male Person 697 605 509
Senior High School
Female Person 523 441 640
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Description Gender Unit 2021 2022 2023
Male Person 5,327 5,026 4,701
Diploma I-III
Female Person 5,165 3,935 4,026
Male Person 41,188 39,615 40,745
Bachelor Degree
Female Person 28,283 23,523 25,334
Male Person 1,135 1,159 1,297
Post-Graduate
Female Person 393 425 477
Male Person 7 6 10
Doctor
Female Person 0 0 0
Total Person 82,718 74,735 77,739
ECONOMIC PERFORMANCE
136
Realization Target Realization Percentage
Achievement of Economic Performance Performance
[F.2] [GRI 201-1] 2021 2022 2023
Total Assets 1,572,761 1,750,995 1,784,060 1,835,249 102.87%
Total Earning Assets 1,504,797 1,573,609 1,647,277 1,684,737 102.27%
Total Loans 943,703 1,029,803 1,148,713 1,146,083 99.77%
Third-Party Funds 1,127,849 1,300,776 1,340,304 1,352,683 100.92%
Total Revenue 152,194 162,432 202,145 189,122 93.56%
Total Cost 112,758 103,012 122,708 122,050 99.46%
Net Profit 32,215 47,828 52,209 53,153 101.81%
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Description Unit 2021 2022 2023
Direct Economic Value Obtained and
Distributed [GRI 201-1] Interest Income Rp Billion 119,828 123,835 146,918
Non-Interest Income Rp Billion 32,401 38,320 42,728
Non-Operating Income Rp Billion -203 277 -524
Total Direct Economic Value Obtained Rp Billion 152,025 162,432 189,122
Non-Interest Operational Costs Excluding Employees Rp Billion 24,817 27,302 30,526
Employee Costs (Excluding Outsourced Employees) Rp Billion 29,961 29,316 26,519
Dividend Payment to the Government Rp Billion 12,125 14,046 23,234
Credit Interest and Bank Interest Rp Billion 24,008 22,830 38,484
Payments to Government (Taxes) Rp Billion 20,171 20,133 22,111
Investment Spending to the Public Rp Billion 270 285 342
Economic Value Directly Distributed Rp Billion 111,353 113,912 141,216
Economic Value Retained Rp Billion 40,673 48,520 47,906
137
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Financial Performance Ratio
Realization (%) Target (%) Realization (%) Percentage (%)
[F.2] [GRI 201-1] Performance
2021 2022 2023
Performance Ratio
Non-Performing Earning Assets and Non-Performing Non-Earning 1.77 1.72 2.05 1.95 105.13%
Assets to Total Earning Assets and Non-Earning Assets
Non-Performing Earning Assets to Total Earning Assets 1.77 1.72 2.22 1.95 113.85%
Allowance for Impairment Losses of Financial Assets to Productive 4.93 6.11 5.16 5.24 101.55%
Assets
NPL Gross 3.08 2.82 2.84 3.12 90.94%
NPL Net 0.70 0.73 0.65 0.76 85.65%
Return on Asset (ROA) 2.23 3.03 3.09 3.12 100.99%
Return on Equity (ROE) 14.09 16.76 17.90 18.25 101.98%
Net Interest Margin (NIM) 6.89 6.80 6.98 6.84 97.99%
138
Efficiency Ratio (Operating Cost and Operating Income) 74.30 64.20 65.62 64.35 101.97%
Liquidity Coverage Ratio (LCR) Value
a. Individual LCR 219.33 199.72 100.00 161.64 161.64%
b. Consolidated LCR 218.33 199.40 100.00 162.46 162.46%
Loan to Deposit Ratio (LDR) 83.67 79.17 85.71 84.73 98.86%
Capital Adequacy Ratio (CAR) 25.28 23.30 24.72 25.23 102.04%
Credit Cost Nett 2.45 1.28 1.02 0.89 114.07%
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SUPPLY CHAIN AND SUSTAINABLE PROCUREMENT PRACTICES
Transaction Value of
Segment Unit 2021 2022 2023
Procurement of Goods and
Services for BRI’s Suppliers Domestic Suppliers % 98.00 99.35 97.27
[GRI 204-1] [B.1e]
Overseas Suppliers % 2.00 0.65 2.73
Total Vendors by Region and
Region Property Vehicle Office Ma- Furniture Inventory IT Printing Advertising Other Goods Other Total Vendor
Type of Vendors in 2023 chines Consulting
(with SKT) [GRI 204-1] [B.1e] Services
Aceh 0 0 0 0 0 0 0 0 0 0 0
Lampung 1 0 0 1 0 0 0 0 0 0 2
Bandung 2 0 1 0 2 4 2 0 0 0 11
Banjarmasin 0 0 0 0 0 0 0 0 0 0 0
139 Pekanbaru 2 0 0 0 1 0 0 0 0 0 3
Yogyakarta 5 0 0 3 0 0 1 0 0 0 9
Malang 1 0 0 1 0 0 0 0 0 0 2
Denpasar 3 0 0 0 0 0 0 0 0 0 3
Manado 0 0 0 0 0 0 0 0 0 0 0
Surabaya 5 0 0 1 0 0 0 0 0 0 6
Semarang 8 0 4 2 4 1 1 0 0 0 20
Kantor Pusat 42 4 7 7 12 80 11 5 6 13 187
Medan 3 0 0 0 0 0 0 0 0 1 4
Jayapura 0 0 0 0 0 0 0 0 0 0 0
Makassar 0 0 0 0 0 0 0 0 0 0 0
Padang 0 0 0 0 0 0 0 0 0 0 0
Palembang 6 0 0 0 0 0 0 0 1 0 7
Total 78 4 12 15 19 85 15 5 7 14 254
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PORTION OF CREDIT DISTRIBUTION
Non-Performing Loan (NPL)
Description Unit 2021 2022 2023
Rate
[SASB FN-CB-410 a.2] [FS6]
NPL Rate % 3.08 2.82 3.12
Loan by Segment
Segment Unit 2021 2022 2023
[SASB FN-CB-410 a.2] [FS6]
Rp Trillion 396.96 449.63 496.55
Micro
% 42 44 43
Rp Trillion 149.38 161.72 182.36
Consumer
% 16 16 16
Rp Trillion 204.14 216.88 228.06
Small
% 22 21 20
140
Rp Trillion 20.80 20.95 32.28
Medium
% 2 2 3
Rp Trillion 172.42 180.62 206.84
Corporation
% 18 18 18
Rp Trillion 943.70 1,029.80 1,146.08
Total
% 100 100 100
Loan by Region in Indonesia
Region Unit 2021 2022 2023
[“[SASB FN-CB-410 a.1] [FS6]
Rp Trillion 243.45 241.08 306.55
Jakarta
% 25.8 23.41 26.75
Rp Trillion 150.23 166.43 183.10
Sumatra
% 15.92 16.16 15.98
Rp Trillion 81.86 87.75 88.94
West Java
% 8.67 8.52 7.76
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Region Unit 2021 2022 2023
Rp Trillion 116.16 128.81 140.41
Central Java and Yogyakarta Special Region
% 12.31 12.51 12.25
Rp Trillion 116.29 126.48 136.61
East Java
% 12.32 12.28 11.92
Rp Trillion 219.43 238.59 260.79
Eastern Indonesia and Central Indonesia
% 23.25 23.17 22.76
Rp Trillion 16.27 40.66 29.68
Others
% 1.72 3.95 2.59
Rp Trillion 943.70 1,029.80 1,146.08
Total
% 100 100 100
141
Loan by Region Outside
Region Unit 2021 2022 2023
Indonesia
[SASB FN-CB-410 a.1] [FS6]
Rp Trillion 6.8 8.25 8.38
New York
% 56.62 55.56 50.76
Rp Trillion 4.45 5.59 6.88
Singapura
% 37.06 37.64 41.65
Rp Trillion 759.35 0.86 0.95
Timor Leste
% 6.32 5.79 5.74
Rp Trillion N/A 0.15 0.31
Taiwan
% N/A 1.01 1.85
Rp Trillion 12.01 14.85 16.52
Total
% 100 100 100.00
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Loan by Business Sector
Business Sector Unit 2021 2022 2023
[FS6]
Rp Trillion 0.69 0.38 1.52
Government Administration and Mandatory Social Security
% 0.07 0.04 0.13
Rp Trillion 91.88 100.31 102.53
Processing Industry
% 9.74 9.74 8.95
Rp Trillion 44.63 47.68 53.70
Community, Socio-Cultural, Entertainment and Other Individual Services
% 4.73 4.63 4.69
Rp Trillion 3.44 3.52 4.22
Health Services and Social Activities
% 0.36 0.34 0.37
Rp Trillion 0.76 0.75 0.86
Education Services
% 0.08 0.07 0.08
Rp Trillion 1.15 01.01 1.00
Individual Services Serving Households
142 % 0.12 0.1 0.09
Rp Trillion 15.57 24.7 31.41
Undefined Activities
% 1.65 2.4 2.74
Rp Trillion 31.81 31.02 33.73
Construction
% 3.37 03.01 2.94
Rp Trillion 34.83 36.31 30.37
Electricity, Gas and Water
% 3.69 3.53 2.65
Rp Trillion 220.93 225.43 239.69
Recipient of Credit Not Field of Business
% 23.41 21.89 20.91
Rp Trillion 17.59 20.96 22.38
Accommodation Provider and Provision of Meals and Drinks
% 1.86 02.04 1.95
Rp Trillion 8.13 14.52 15.85
Financial Intermediary
% 0.86 1.41 1.38
Rp Trillion 309.28 327.17 361.13
Wholesale and Retail Trade
% 32.77 31.77 31.51
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Business Sector Unit 2021 2022 2023
Rp Trillion 8.69 10.14 10.88
Fishery
% 0.92 0.98 0.95
Rp Trillion 8.2 14.48 31.81
Mining and excavation
% 0.87 1.41 2.78
Rp Trillion 117.19 142.81 166.64
Agriculture, Hunting and Forestry
% 12.42 13.87 14.54
Rp Trillion 9.2 9.38 11.65
Real Estate, Rental Business and Service companies
% 0.97 0.91 1.02
Rp Trillion 19.74 19.23 26.70
Transportation, Warehousing and Communication
% 02.09 1.87 2.33
Rp Trillion 0.00 0.00 0.00
Others
143 % 0.00 0.00 0.00
Rp Trillion 943.70 1,029.80 1,146.08
Total
% 100 100 100
Micro & SME Loan
Description Unit 2021 2022 2023
[FS6]
Total Outstanding Loans to the Micro Segment Rp Trillion 396.96 449.63 496.55
Total Outstanding Loans to the MSME Segment* Rp Trillion 771.28 849.18 939.25
Total Outstanding Loans Rp Trillion 943.70 1,029.80 1,146.08
Percentage of Loans to the Micro Segment % 42 44 43
Percentage of Loans to the MSME Segment % 82 82 82
*) MSME credit segment is BRI's total loans excluding the corporate credit segment
Micro Loan
Description Unit 2021 2022 2023
[GRI 203-2] [SASB FNCB-240 a.2]
Total Outstanding Micro Loans Rp Trillion 190.30 251.50 219.90
Total Outstanding Loans Rp Trillion 880.67 9,437.00 1,146.08
Percentage % 21.61 2.67 19.19
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Distribution of Micro KUR Loan
Description Unit 2021 2022 2023
by Sector
[GRI 203-2] [SASB FNCB240 a.2]
Production Rp trillion 96.36 132.08 84.46
Non-Production Rp trillion 66.83 83.19 55.74
Total Rp trillion 163.19 215.27 140.20
Micro KUR Loan Debtors by
Description Unit 2021 2022 2023
Sector
[GRI 203-2] [SASB FNCB240 a.2]
Production Debtor 3,175,086 3,580,759 3,776,093
Non-Production Debtor 2,145,740 2,260,228 5,018,037
Total Debtor 5,320,826 5,840,987 8,794,130
144 KUPEDES Performance
Description Unit 2021 2022 2023
Number of Customers Million Debtor 2.73 2.84 4.64
Outstanding Rp billion 131,760 129,216 212,332
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ENVIRONMENTAL PERFORMANCE
BORROWERS ENVIRONMENTAL PERFORMANCE
Customers with PROPER
Rating Unit 2021 2022 2023
Rating
[SASB FN-CB-410a.2] [FS8] [FS10] [FS11]
Gold Debtor 10 10 16
Green Debtor 7 7 7
Blue Debtor 37 42 46
Total Debtor 54 59 69
Financing Value for
Rating Unit 2021 2022 2023
Customers with PROPER
Rating Gold Rp Trillion 15.00 13.53 13.38
145 [SASB FN-CB-410a.2] [FS8] [FS10] [FS11]
Green Rp Trillion 3.60 5.32 9.27
Blue Rp Trillion 31.40 45.85 63.05
Total Rp Trillion 50.0 64.70 85.70
Customers with ISPO/RSPO
Certification Unit 2021 2022 2023
Certification*
[SASB FN-CB-410a.2] [FS8] [FS10] [FS11]
RSPO Debtor 14 14 16
In the RSPO Process Debtor 0 0 0
ISPO Debtor 28 27 25
In the RSPO Process Debtor 14 12 8
Total Debtor 56 53 49
*) Data includes customers in the corporate segment
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Financing Value for
Certification Unit 2021 2022 2023
Customers with ISPO/RSPO
Certification* RSPO Rp Trillion 14.60 17.19 18.90
[SASB FN-CB-410a.2] [FS8] [FS10] [FS11]
In the RSPO Process Rp Trillion 0.00 0.00 0.00
ISPO Rp Trillion 12.96 14.06 14.88
In the ISPO Process Rp Trillion 5.52 4.07 2.74
Total Rp Trillion 33.07 35.32 36.52
*) Data includes customers in the corporate segment
**) There was a restatement in 2021 with a wider scope of identification (applies to RSPO & ISPO)
SUSTAINABILITY BOND AND FINANCING
Allocation of Use of Funds
Description Unit 2021 2022 2023
for Issuance of Sustainability
146 Bonds
[FS7] [FS8] Rp Billion 2,213 1,948 3,218
Green Projects
% 31.06 25.68 41.74
Rp Billion 1,311 1,505 1,912
KUPEDES
% 18.40 19.84 15.46
Rp Billion 840 964 770
Micro KUR
% 11.79 12.72 10.00
Rp Billion 35 40 36
Subsidized KUR
% 0.49 0.53 0.47
Rp Billion 1,872 2,148 1,709
Super Micro KUR
% 26.27 28.33 22.18
Rp Billion 853 979 782
Tangguh KMK
% 11.97 12.90 10.15
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Sustainable Funding Products
[B.1d] [FS7][ FS8] Description Unit 2021 2022 2023
Green Bond Rp Trillion N/A 10.0 8.5
Sustainability-Linked Loan Rp Trillion N/A 15.6 12.3
Inclusivity-based Securities Rp Trillion N/A 0.0 5.6
ESG-based Repo Rp Trillion N/A 1.6 5.5
Sustainability Bond Rp Trillion 7.1 7.8 7.7
Total ESG-based Wholesale Funding Rp Trillion 7.1 35.0 39.6
2023
Sustainable Products Product Categories
per Segment Per Segment Unit Total Loan Sustainable loan Product Description
Outstanding Total in Each Composition in
[B.1d] [FS7][ FS8]
Segment each segment
147
Consumer Loan
Green Mortgage Rp Trillion 0.10 9.56 51.50 19% KPR Green Financing: Home Ownership Loans (KPR) specifically allocated for financing the
purchase of new homes with a green housing concept.
Government Rp Trillion 9.46
Subsidized Mortgage KPR Subsidi: KPR for Low- Income Communities (MBR) with a total household income
(husband + wife) not exceeding Rp8 million per month. The conditions include being for
the firs home or not having received housing subsidies before, must be occupied, and
cannot be sold or rented out for the first 5 years.
Corporate Loan
Corporate Loan to Rp Trillion 78.05 78.05 206.84 38% Comprising green loans to the corporate segment engaged in activities based on renewable
Green Sectors energy, sustainable land management, eco-friendly transportation, environmentally friendly
buildings, as well as other environmentally conscious business activities.
MSME Loan (Productive)
Medium Loan to Rp Trillion 2.17 692.60 692.60 100% Kredit Hijau Segmen Medium: Loans allocated to the SME segment involved in activities
Green Sectors based on renewable energy, sustainable land management, eco-friendly transportation, and
other environmentally conscious business activities.
Business Loan to Rp Trillion 690.43
Micro and SMEs Kredit Usaha Segmen UMKM: Comprising social loans for communities with fixed incomes,
engaging in productive small and medium-scale business ventures.
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Credit Distribution to
Description Unit 2021 2022 2023
Sustainable Business Activities
Category MSMEs Rp Trillion 543.40 616.07 690.43
[FS7] [FS8] [FS11]
Renewable Energy Rp Trillion 5.60 7.10 6.02
Pollution Prevention & Control Rp Trillion 0.03 1.75 0.55
Environmentally-Friendly Transportation Rp Trillion 14.90 12.10 11.24
Environmentally-Friendly Building Rp Trillion 2.30 1.44 2.04
Management of Natural Resources and Sustainable Land Use Rp Trillion 43.20 51.80 52.82
Conservation of Land and Water Biodiversity Rp Trillion 0.67 0.58 0.23
Sustainable Water & Waste Management Rp Trillion 0.010 0.005 0.003
Eco-efficient Products Rp Trillion 4.10 3.98 7.50
Other Environmentally Friendly Business Activities Rp Trillion 0.09 0.06 1.93
148
Credit Distribution to Non-
Description Unit 2021 2022 2023
Renewable Energy and New
Renewable Energy Sectors Non-Renewable Energy Rp Trillion 25.00 21.03 21.60
[FS11]
New & Renewable Energy Rp Trillion 5.60 7.10 5.90
Total Financing Rp Trillion 30.60 28.13 27.50
ENERGY USE
Energy Use
Description Unit 2021 2022 2023
[GRI 302-1] [GRI 302-2] [GRI 302-3] [GRI 302-4]
[F.6] Use of Fuel Liter 45,496,514 44,922,960 42,927,942
Electricity Use kWh 353,912,904 404,925,311 403,192,231
Total Energy Used MJ 2,911,960,958 3,074,957,680 2,919,627,648
Energy Intensity per Office MJ/office/year 336.76 374,584 376,483
MJ/employee
Energy Intensity per Employee 25,710 26,078 24,271
/year
Note: The calculation standards and conversion factors used for energy calculations are sourced from the Ministry of Energy and Mineral Resources. Energy data has been verified by an
independent third party.
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Cost of Energy Use
Description Unit 2021 2022 2023
[F.6]
Electricity Use Rp 553,037,000,000 579,663,972,351 574,118,412,662
Fuel Use Rp 381,640,000,000 441,235,670,170 526,974,322,479
Water Use
Description Unit 2021 2022 2023
[F.8]
Water Use m3 1,949,046 1,944,879 2,396,993
Water Use Performance % -37 -2 23
Water Use Intensity m /employee
3
17.20 16.49 19.93
Paper Use
Description Unit 2021 2022 2023
[F.5]
149 Paper Use per Work Unit* kg/work unit 226.89 248.72 149.04
Paper Use per Employee** kg/employee 17.32 17.31 9.61
*) All work units in Indonesia
**) All employees including outsourced employees
Waste Disposal
Description Unit 2022 2023
[F.13] [F.14] [F.15]
Total Waste Reuse/Recycle/Recovery kg 237,957 591,203
Total Waste Disposed (Landfill)* ton 18.784 9,093
*) Bank-wide waste generation is extrapolated based on the waste generation data per employee at BRI’s head office. Waste at the head office was sent to landfill in January to July 2023. From August 2023 onwards, with the launch of the Zero Waste
to Landfill program, all waste generated were diverted from landfill via composting, recycling and RDF Technology.
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EMISSION CONTROL
Emission Control in All Work Units
Description Unit 2021 2022 2023
[GRI 305-1][GRI 305-2] [GRI 305-3] [GRI 305-4] [GRI 305-5]
Emissions from Scope 1: Mobile and Stationary Combustion (Positive Emissions)* Ton CO2e 114,108 126,515 125,120
Emissions from Scope 1: Fugitive & Refrigerant (Positive Emissions)* Ton CO2e 5,720 5,409
Emissions from Scope 2 (Positive Emissions)* Ton CO2e 320,066 360,135 355,742
Scope 3 Emissions: Financed Emissions Ton CO2e 11,222,829 ** 10,434,550
19,135 121,156
Scope 3 Emissions: Purchased Goods and Services*** Ton CO2e
(Coverage 44.16%) (Coverage 100%)
Scope 3 Emissions: Waste Generated in Operations**** Ton CO2e 9,680 8,937
Scope 3 Emissions: Business Travel Ton CO2e 1,497 3,267 8,272
Emission Intensity of Scope 1 and 2 TonCO2e/Work Unit 50.2 60.0 62.7
Emission Intensity of Scope 1 and 2***** TonCO2e/Employee 3.8 4.2 4.0
TonCO2e/Outstanding
150 Financed Emissions Intensity 0.10
in Million Rupiah
*) Positive emissions are emissions resulting from Scope 1 banking operational activities that come from the use of fuel and refrigerant and Scope 2 that come from electricity usage in all BRI offices in Indonesia. Use of these
energy sources is still under BRI's control.
**) There is a restatement of Scope 3 emissions: Financed Emissions figures for the year 2022 due to an improvement in data quality for the manufacturing sector. Initially, emissions calculations were based on a revenue
approach, and now they utilize publicly available data.
***) Spend-based emission factors are adopted to estimate emissions associated with: Purchased goods and services, capital goods, Upstream transportation and distribution. The Scope 3 Emissions: Purchased Goods and
Services' coverage reached 44.16% in 2022 and reached 100% in 2023.
****) Bankwide waste generation is extrapolated based on data on waste generation per employee at the BRI head office. Waste at the head office is sent to the landfill from January to July 2023 From August 2023 onwards, with
the launch of the Zero Waste to Landfill program, all generated waste has been diverted from landfills through composting, recycling, and the RDF technology.
*****) To support validity of emission intensity per employee, outsourced employees are included in the calculation of total employee intensity. This is due to the fact all the energy produced by the company is used by all BRI
Scope 3 Emissions: Financed employees, including outsourced employees
Emission by Asset Class
[GRI 305-1] [GRI 305-2] [GRI 305-3] [GRI 305-4] [GRI 305-5] Description Unit 2022* 2023
Bond Investment Metric Ton CO2e 437,036 460,841
Business Loans Metric Ton CO2e 6,776,501 6,358,055
Listed Equity Metric Ton CO2e 381 881
Electricity Generation Project Finance Metric Ton CO2e 3,872,508 3,504,669
Commercial Real Estate Metric Ton CO2e 136,403 110,104
Total Metric Ton CO2e 11,222,829 10,434,550
*) There is a restatement of the Scope 3: Financed Emissions figures in 2022 because there is an improvement in data quality for the manufacturing sector, from previously calculating emissions using a revenue approach to using
published data.
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Description Unit 2022 2023
Scope 3 Emissions: Financed Emission by
Sectoral Assets Agriculture, forestry and fishing Ton CO2e 222.456 114,347
[GRI 305-1] [GRI 305-2] [GRI 305z-3] [GRI 305-4] [GRI 305-5]
Construction Ton CO2e 94.265 39,104
Electricity, gas, steam and air conditioning supply Ton CO2e 7.141.849 6,286,465
Finance and insurance Ton CO2e 1.744 2,360
Manufacturing Ton CO2e 2.594.548 2,028,631
Mining and quarrying Ton CO2e 1.027.462 1,848,358
Real estate Ton CO2e 136.403 110,104
Transportation and storage Ton CO2e 4.103 5,181
Total Ton CO2e 11.222.829 10,434,550
151 Avoided Emission Description Unit 2022 2023
[GRI 305-1] [GRI 305-2] [GRI 305-3]
Zero Waste to Landfill program* kgCO2e 164,375 441,817
Digitalization of Products and Services kgCO2e 1,224,807 872,713
*) This calculation does not include waste that is classified as “other”, such as tissues, Styrofoam, masks, etc., due to the absence of emission factors for RDF technology.
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SOCIAL PERFORMANCE
ULTRA-MICRO SYNERGY
Number Co-Location of Ultra
Micro (UMi) Region Unit 2021 2022 2023
[F13]
Medan Unit 5 71 71
Pekanbaru Unit 4 31 31
Padang Unit 2 25 25
Palembang Unit 5 39 41
Bandar Lampung Unit 2 34 34
Jakarta 1 Unit 1 13 12
Jakarta 2 Unit 12 39 39
Jakarta 3 Unit 9 63 64
152
Bandung Unit 29 127 127
Semarang Unit 10 72 72
Yogyakarta Unit 19 77 78
Surabaya Unit 9 55 55
Malang Unit 12 90 90
Denpasar Unit 7 74 74
Banjarmasin Unit 5 49 49
Makassar Unit 12 86 88
Manado Unit 9 54 54
Jayapura Unit 1 14 14
Total Unit 153 1,013 1,018
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TJSL - COMMUNITY ENGAGEMENT AND DEVELOPMENT
BRI Peduli TJSL Program
Program Unit 2021 2022 2023
Distribution
[F.4] [F.25]
Rp Million 186,597 196,678 236,170
Social
% 68.99 69.01 69.06
Rp Million 13,703 16,008 21,366
Economic
% 05.07 5.62 6.25
Rp Million 70,159 72,313 84,462
Enviromental
% 25.94 25.37 24.70
Rp Million 270,460 284,999 341,998
Total
% 100.00 100.00 100.00
153 Budget Allocation for BRI
Program Unit 2021 2022 2023
Peduli TJSL Community
Development Program Charitable Donations % 45.44 49.00 48.50
[F.25]
Community Investments % 46.70 46.00 45.65
Commercial Initiatives % 7.86 6.00 5.85
Total % 100.00 100.00 100.00
TJSL Contribution Type
Type of Contribution Unit 2022 2023
[F.25]
Cash Contribution* Rp million 0 0
In-Kind Giving (product or service donation, project / collaboration or similar
Rp million 284,999 341,998
programs)**)**
Management Overhead (consulting and research fees) Rp million 1,588 1,925
*) BRI does not provide cash assistance to the community. The entire contribution of TJSL is implemented through community development programs and strategic infrastructure development.
**) Represents the total realized funds of the TJSL program.
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FINANCIAL INCLUSION AND LITERACY
Total Saving Account Opening
Types of Products Unit 2021 2022 2023
Through Digital Channels
[FS8]
BritAmaX # 2,412,752 2,457,756 2,458,486
BritAma # 178,800 5,996,039 6,088,968
BritAma Bisnis # 385,773 475,795 539,002
Simpedes # 540,823 5,991,077 6,690,281
Simpedes BISA # 9,438 79,979 298,526
Total # 1,138,507 15,000,646 16,075,263
Distribution of Teras BRI
[SASB FN-CB-240a.4] [FS13] [FS14]
Region Unit Unit 2021 2022 2023
Teras BRI # 57 57 56
154
Bandar Lampung Teras BRI Keliling # 0 0 0
Teras Kapal # 0 0 0
Teras BRI # 175 98 45
Bandung Teras BRI Keliling # 26 25 25
Teras Kapal # 0 0 0
Teras BRI # 112 94 72
Banjarmasin Teras BRI Keliling # 7 6 6
Teras Kapal # 0 0 0
Teras BRI # 150 151 117
Denpasar Teras BRI Keliling # 4 4 4
Teras Kapal # 1 1 1
Teras BRI # 203 195 152
Jakarta Mobile Teras BRI # 21 21 21
Teras Kapal # 1 1 1
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Region Unit Unit 2021 2022 2023
Teras BRI # 27 19 17
Jayapura Mobile Teras BRI # 1 1 1
Teras Kapal # 0 0 0
Teras BRI # 124 59 10
Makassar Mobile Teras BRI # 0 0 0
Teras Kapal # 0 0 0
Teras BRI # 195 170 127
Malang Mobile Teras BRI # 5 5 5
Teras Kapal # 0 0 0
Teras BRI # 48 47 42
Manado Mobile Teras BRI # 43 43 43
155 Teras Kapal # 1 1 1
Teras BRI # 90 75 42
Medan Mobile Teras BRI # 15 3 1
Teras Kapal # 0 0 0
Teras BRI # 49 49 46
Padang Mobile Teras BRI # 0 0 0
Teras Kapal # 0 0 0
Teras BRI # 53 46 38
Palembang Mobile Teras BRI # 0 0 0
Teras Kapal # 0 0 0
Teras BRI # 96 61 35
Pekanbaru Mobile Teras BRI # 1 1 1
Teras Kapal # 1 1 1
Teras BRI # 88 85 71
Semarang Mobile Teras BRI # 0 0 0
Teras Kapal # 0 0 0
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Region Unit Unit 2021 2022 2023
Teras BRI # 101 78 41
Surabaya Mobile Teras BRI # 8 8 8
Teras Kapal # 0 0 0
Teras BRI # 129 86 66
Yogyakarta Mobile Teras BRI # 1 0 0
Teras Kapal # 0 0 0
Teras BRI # 1,697 1,370 977
Total Mobile Teras BRI # 132 117 115
Teras Kapal # 4 4 4
156
Total BRI Kapal Performance
Region Form Unit 2021 2022 2023
[FS7]
Total Savings
Account # 7,478 7,967 8,997
Balance Rp Billion 16.97 18.54 22.94
Seva I (Thousand Islands Region)
Total Credit
Debtors # 708 715 716
Credits Rp Billion 16.63 21.74 25.06
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Region Form Unit 2021 2022 2023
Total Savings
Account # 3,174 1,928 1,874
Balance Rp Billion 11.20 5.68 7.34
Seva II (East Nusa Tenggara Labuan Bajo Islands Region)
Total Credit
Debtors # 798 851 886
Credits Rp Billion 15.49 20.53 25.25
Total Savings
Account # 5,912 6,321 6,262
Balance Rp Billion 13.60 9.15 9.49
Seva III (Anambas Islands Region)
Total Credit
Debtors # 281 246 242
157
Credits Rp Billion 6.93 6.38 8.21
Total Savings
Account # 37,808 25,944 20,536
Balance Rp Billion 40.35 43.93 43.33
Seva IV (South Halmahera Islands Region)*
Total Credit
Debtors # 1,075 1,117 912
Credits Rp Billion 23.57 26.01 24.17
Total Savings
Account # 54,372 42,160 37,669
Balance Rp Billion 82.12 77.3 83.1
Total*
Total Credit
Debtors # 2,862 2,929 2,756
Credits Rp Billion 62.62 76.28 82.69
*) There is a restatement from the BRI Manado Regional Office regarding the performance of Teras BRI in 2022 through Letter No.B.79.e-RO-MND/ROP/ONS/01/2024 dated January 25, 2024.
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BRI Customers Mobile Service
Types of e-Banking Unit Unit 2021 2022 2023
Users (e-Banking)
BRImo User # 14,154,835 23,845,612 31,616,014
BRIZZI User # 21,690,465 33,687,521 23,756,098
Qlola Cash Management User # 43,483 47,313 52,117
Amount of Mobile Service
Type of Services Unit 2021 2022 2023
Transactions (e-Banking)
[FS8]
BRImo Financial Transaction Thousands 869,100 1,825,397 3,088,817
BRILink Thousands 929,380 1,078,040 1,096,611
Merchant BRI Thousands 172,792 192,377 318,283
BRIMOLA Thousands 7,888 8,541 10,819
BRIZZI Thousands 244,766 155,069 171,200
ATM BRI Thousands 4,238,503 4,093,869 3,521,211
158
Qlola Cash Management Thousands 44,964 50,638 53,869
Volume of Mobile Service
Type of Services Unit 2021 2022 2023
Transactions (e-Banking)
[FS8]
BRImo Financial Transaction Rp Billion 1,344,786 2,669,091 4,158,849
BRILink Rp Billion 1,143,618 1,297,654 1,427,583
Merchant BRI Rp Billion 106,941 151,458 230,663
BRIMOLA Rp Billion 9,387 11,584 15,102
BRIZZI Rp Billion 6,818 4,747 6,190
ATM BRI Rp Billion 3,531,318 3,098,560 2,972,941
Qlola Cash Management Rp Billion 3,807,810 5,070,180 6,788,672
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COMMUNITY DEVELOPMENT
Distribution of BRILink Agents
Region Unit 2021 2022 2023
[FS8]
Agent 109,636 137,037 165,053
Sumatra
% 21.79 21.86 22.28
Agent 265,676 335,270 395,383
Java
% 52.80 53.47 53.37
Agent 39,897 48,685 56,500
Kalimantan
% 7.93 7.76 7.63
Agent 53,720 63,218 69,798
Sulawesi
% 10.68 10.08 9.42
Agent 23,002 29,205 39,070
Bali and Nusa Tenggara
% 4.57 4.66 5.27
159
Agent 5,592 6,540 6,949
Maluku and North Maluku
% 1.11 1.04 0.94
Agent 5,628 7,057 8,065
Papua
% 1.12 1.13 1.09
Agent 503,131 627,015 740,818
Number
% 100.00 100.00 100.00
BRILink Agent Transaction
Description Unit 2021 2022 2023
[FS8]
Number of BRILink Agents Agent 503,151 627,012 740,818
Transaction Volume Million 929.38 1,078.04 1,096.61
Page 160
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EMPLOYEE RECRUITMENT
Recruitment of Workers and New BIP Description Gender Unit 2021 2022 2023
Frontliners Based on the Process [GRI 401-1]
Internal Hires* % 91.84 94.42 83.38
Male Person 2,431 1,579 3,436
External Recruitment
Female Person 2,912 1,246 6,256
Male Person 35,922 26,534 22,685
Internal Recruitment
Female Person 24,231 21,227 25,921
Total Person 65,496 50,586 58,298
* ) The percentage of open positions filled by internal candidates.
Description Age Unit 2021 2022 2023
<30 years old Person 5,253 2,058 9,464
160 External Recruitment 30-50 years old Person 81 766 225
>50 years old Person 9 1 3
<30 years old Person 13,625 14,369 21,048
Internal Recruitment 30-50 years old Person 43,060 31,023 25,332
>50 years old Person 3,468 2,369 2,226
Total Person 65,496 50,586 58,298
Recruitment of External New Employees Recruitment Path Gender Unit 2021 2022 2023
and BIP Frontliner by External Recruitment Male Person 112 92 220
Path [GRI 401-1]
BFLP Female Person 92 83 297
Total Person 204 175 517
Male Person 507 1,342 3,094
Marketing Officer, Administration Officer, and
Female Person 786 1,113 6,015
Frontliners
Total Person 1,293 2,455 9,109
Male Person 1.714 38 10
Others Female Person 2.002 21 27
Total Person 3.716 59 37
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Recruitment Path Gender Unit 2021 2022 2023
Male Person 2,333 1,472 3,324
Fresh Graduates Female Person 2,880 1,217 6,339
Total Person 5,213 2,689 9,663
Male Person 98 107 18
Experienced Female Person 32 29 11
Total Person 130 136 29
Male Person 2,431 1,579 3,342
Total Female Person 2,912 1,246 6,350
Total Person 5,343 2,825 9,692
Recruitment of External New Employees Region Gender Unit 2021 2022 2023
and BIP Frontliner by Region [GRI 401-1]
Male Person 563 354 420
161
Jakarta & Banten Female Person 520 245 697
Total Person 1,083 599 1,117
Male Person 588 230 560
Sumatra Female Person 420 195 969
Total Person 1,008 425 1,529
Male Person 210 255 666
West Java Female Person 229 106 1,137
Total Person 439 361 1,803
Male Person 378 213 504
Central Java and Yogyakarta Special Region Female Person 494 233 1,075
Total Person 872 446 1,579
Male Person 340 123 519
East Java Female Person 230 127 989
Total Person 570 250 1,508
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Region Gender Unit 2021 2022 2023
Male Person 832 404 752
Eastern Indonesia and Indonesia Female Person 539 340 1,404
Total Person 1,371 744 2,156
Male Person 2,911 1,579 309
Total Person 2,432 1,246 245
Total Person 5,343 2,825 9,692
Recruitment of External New Employees Age Group Gender Unit 2021 2022 2023
and BIP Frontliner by Age Group [GRI 401-1]
Male Person 2,370 1,260 3,281
<31 Female Person 2,883 798 6,183
Total Person 5,253 2,058 9,464
162
Male Person 52 313 152
31-40 Female Person 27 446 73
Total Person 79 759 225
Male Person 2 6 3
41-50 Female Person 0 1 0
Total Person 2 7 3
Male Person 7 0 0
>50 Female Person 2 1 0
Total Person 9 1 0
Male Person 2,431 1,579 3,436
Total Female Person 2,912 1,246 6,256
Total Person 5,343 2,825 9,692
Page 163
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EMPLOYEES COMPOSITION
Composition of New
Citizenship Unit 2021 2022 2023
Employees by Citizenship
[GRI 405-1]
Indonesian Person 82,718 74,735 77,739
East Timorese Person 20 20 24
American Person 7 7 7
Singaporean Person 6 7 14
Others Person 11 11 11
Total Person 82,762 74,780 77,795
Composition of Employees by
Designation Group Gender Unit 2021 2022 2023
Designation Group
[GRI 405-1] Male Person 86 87 90
163
Top Management Female Person 18 22 27
Total Person 104 109 117
Male Person 541 603 1,238
Middle Management Female Person 151 166 353
Total Person 692 769 1,591
Male Person 2,107 2,623 2,013
Junior (1st Level Management) Female Person 653 906 744
Total Person 2,760 3,529 2,757
Male Person 45,620 43,098 43,921
Non-Management Female Person 33,542 27,230 29,353
Total Person 79,162 70,328 73,274
Male Person 48,354 46,411 47,262
Female Person 34,364 28,324 30,477
Grand Total
Total Person 82,718 74,735 77,739
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Composition of Employees by
Designation Group Usia Unit 2021 2022 2023
Age Group
[GRI 405-1]
< 30 Person 0 0 0
31-40 Person 63 1 4
Top Management 41-50 Person 6 55 72
> 50 Person 35 55 41
Total Person 104 109 117
< 30 Person 1 0 0
31-40 Person 203 181 779
Middle Management 41-50 Person 157 339 554
> 50 Person 331 249 258
Total Person 692 769 1,591
< 30 Person 69 44 84
164 31-40 Person 302 2,592 2,124
Junior (1st Level Management 41-50 Person 1,885 552 333
> 50 Person 504 341 216
Total Person 2,760 3,529 2,757
< 30 Person 25,023 12,559 21,264
31-40 Person 2,163 43,180 38,619
Non-Management 41-50 Person 41,532 10,513 10,142
> 50 Person 8,914 4,076 3,249
Total Person 79,162 70,328 73,274
< 30 Person 25,093 12,603 21,348
31-40 Person 2,731 45,954 41,526
Grand Total 41-50 Person 43,580 11,459 11,101
> 50 Person 9,784 4,721 3,764
Total Person 82,718 74,735 77,739
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Composition of Marketing
Marketing Officer Gender Unit 2021 2022 2023
Officer
[GRI 405-1]
Male Person 19,673 19,410 19,357
RM Micro (Mantri) Female Person 7,596 7,770 7,690
Total Person 27,269 27,180 27,047
165 Male Person 4,512 4,459 3,884
Small RM (Small + Program + Retail) Female Person 1,080 1,104 964
Total Person 5,592 5,563 4,848
Male Person 91 95 132
Middle RM Female Person 13 11 22
Total Person 104 106 154
Male Person 350 902 918
Consumer RM Female Person 172 584 596
Total Person 522 1,486 1,514
Male Person 893 1,033 1,487
Funds RM (Funds + PBO) Female Person 1,605 1,735 2,048
Total Person 2,498 2,768 3,535
Male Person 25,519 25,899 25,778
Total Female Person 10,466 11,204 11,320
Total Person 35,985 37,103 37,098
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Composition of Female
Designation Level Unit 2021 2022 2023
Employees by Designation
Level Composition of Female Employees of All Employees % 42.77 37.90 39.20
[GRI 405-1]
Composition of Female Employees at Junior, Middle and Top Management Levels % 23.14 22.67 25.17
Composition of Female Employees at Junior Level (First Level) Management % 24.57 24.83 26.99
Composition of Female Employees at Top Management Level % 17.82 19.05 23.08
"Composition of Female Employees at Revenue Generating Level
% 30.09 28.94 30.51
Functions"
Composition of Female Employees at STEM (Science, Technology, Engineering, and
% 24.87 23.73 25.34
Mathematics)-related Level
Composition of Employees
Work Unit Gender Unit 2021 2022 2023
with Disabilities
[GRI 405-1]
Male # 15 17 15
Head Office
Female # 12 11 10
166
Male # 20 23 20
Regional Office and Special Branch Office
Female # 17 18 15
Male # 35 40 35
Total
Female # 29 29 25
Freedom of Association
Description Unit 2021 2022 2023
[2-30]
# 42,798 41,978 39,939
Employees affiliated with the Labor Union
% 70.2 69.71 66.47%
Total Employees # 82,718 74,735 77,739
Page 167
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EMPLOYEE WAGES Designation Gender Unit 2021 2022 2023
Average Wage of Employees by Male Rp Million 46.03 47.28 57.75
Gender Top Management
Female Rp Million 43.27 43.40 55.97
[GRI 202-1]
Male Rp Million 23.38 24.35 23.98
Middle Management
Female Rp Million 22.70 24.23 24.63
Male Rp Million 12.31 12.79 14.04
Junior (1st Level Management)
Female Rp Million 12.32 12.57 13.85
Male Rp Million 4.71 5.16 5.80
Non-Management
Female Rp Million 3.93 4.51 4.72
Wage Indicator by Gender Description Designation Group Gender Unit 2021 2022 2023
[GRI 202-1]
167 Male Rp Million 15.56 15.80 18.90
Management
Female Rp Million 14.90 14.96 18.25
Average Wage
Male Rp Million 4.71 5.16 5.50
Non-Management
Female Rp Million 3.93 4.51 4.72
Average Wage and Other Male Rp Million 78.64 78.71 79.88
Management
Incentives Female Rp Million 74.65 74.32 77.33
Note: Data restatement was conducted due to changes in wage categorization.
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Employee Compensation Ratio
Description Unit 2021 2022 2023
[GRI 2-21]
Highest and lowest employee salaries Times 36.67 47.14 66.20
Highest and lowest Directors' salaries Times 1.18 1.25 1.18
Highest and lowest Commissioner’s salaries Times 1.11 1.11 1.11
Highest salary for Directors and employees Times 2.24 2.36 3.16
Description Unit 2022 2023
The median value of compensation without the highest value Rp 41,065,783 53,357,364
The average value of compensation without highest value Rp 58,938,722 60,159,121
Change in the annual compensation ratio % 18.86 24.2
168
Average Hiring Cost
Description Unit 2021 2022 2023
Average Hiring Cost Rp 6,604,808 2,031,631 8,676,201
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EMPLOYEE DEVELOPMENT AND TRAINING
Number of In-class and
Description Unit 2021 2022 2023
E-Learning Education/Training
Participants Number of Participants participant 3,809,382 2,957,075 2,800,792
[GRI 404-1] [F.22]
Number of Hours Hour 4,186,683 8,653,464 9,128,524
Average Hours of Education/
Description Unit 2021 2022 2023
Training
[GRI 404-1] [F.22]
All participants Hour 41 78 84
Male Hour 41 74 81
Gender
Female Hour 40 84 90
<30 years old Hour 39 86 96
169 Age Group 30-50 years old Hour 40 74 81
>50 years old Hour 54 83 95
Education / Training
Designation Group Description Unit 2021 2022 2023
by Designation Group
[GRI 404-1] [F.22]
Number of Participants # 574 251 342
Top Management Total Training Hours hour 7,722 15,351 19,085
Average Training Hours hour 13.5 61.0 56
Number of Participants # 22,057 12,333 9,275
Middle Management Total Training Hours hour 337,846 1,554,855 1,093,975
Average Training Hours hour 15.3 126.0 118
Number of Participants # 47,758 97,776 99,347
Junior Management and Officer Total Training Hours hour 589,831 7,083,257 8,015,464
Average Training Hours hour 12.4 72.0 81
Number of Participants # 23,463 110,360 108,964
Average Total Training Hours hour 311,800 8,653,464 9,128,524
Average Training Hours hour 13.7 78.0 84.0
Page 170
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Types and Scope of
Types of Training Vendor Name Unit 2021 2022 2023
Training
[GRI 404-1] [F.22]
Intern Bank Audit LSP BRI participant 120 228 184
Wealth Management MCI participant 354 5 16
Treasury Dealer LSP BRI participant 66 4 2
General Banking LSP BRI participant 805 1,430 1,779
Risk Management* BSMR & LSPP participant 3,119 1,731 29
Compliance LSP BRI participant 402 1,063 -
Credit LSP BRI participant 1,340 423 730
Human Capital LSP BRI participant - 3 -
IT LSP BRI participant 15 19 6
Funding & Service LSP BRI participant 70 31 95
*) There is a suspension of the implementation of MR certification by BNSP, including LSPP, for all conventional banks.
170
Competency Development Description Unit 2022 2023
Costs
Competency Development Costs Rp Million 699,846 992,124
Average Competency Development Cost per Employee Rp Million 5.94 9.11
EMPLOYEE TURNOVER
Recapitulation of Employee
Description Unit 2021 2022 2023
Turnover
[GRI 404-1]
Employee Turnover Rate % 3.58 2.88 3.24
Employee Resignation Rate % 1.84 1.12 1.01
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Employee Turnover Rate
Description Uraian Unit 2021 2022 2023
[GRI 404-1]
Male % 2.06 3.03 1.75
Female % 5.68 2.65 4.66
<30 years old % 0.45 0.71 0.46
30-50 years old % 3.30 2.13 2.60
Employee Turnover Rate
>50 years old % 27.63 21.31 20.73
Top Management (VP SEVP) % 3.23 2.56 2.97
Middle Management (AM AVP) % 13.50 1.38 4.82
Operation (Assistant Officer) % 21.42 1.02 17.86
Male % 1.94 1.03 0.91
Female % 1.72 1.25 0.98
<30 years old % 0.51 0.19 0.20
30-50 years old % 2.24 1.24 1.12
Employee Resignation Rate
>50 years old % 6.17 3.43 2.48
Top Management (VP SEVP) % 1.86 1.09 1
171 Middle Management (AM AVP) % 1.73 2.77 1.02
Operation (Assistant Officer) % 1.29 0.34 0
Employee Turnover Rate by
Region Description Unit 2021 2022 2023
Region
[GRI 404-1]
Recruitment of New Employees Person 1,083 599 1,117
Jakarta
Number of quitting employees Person 172 149 110
Recruitment of New Employees Person 1,008 425 1,529
Sumatra
Number of quitting employees Person 691 159 92
Recruitment of New Employees Person 439 361 1,803
West Java
Number of quitting employees Person 183 113 65
Recruitment of New Employees Person 872 446 1,879
Central Java and Yogyakarta Special Region
Number of quitting employees Person 142 124 152
Recruitment of New Employees Person 570 250 1,579
East Java
Number of quitting employees Person 141 113 133
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Region Description Unit 2021 2022 2023
Recruitment of New Employees Person 1,371 744 2,156
Eastern Indonesia and Central Indonesia
Number of quitting employees Person 247 221 219
Recruitment of New Employees Person 5,343 2,825 9,692
Total
Number of quitting employees Person 1,576 879 771
Employee Engagement Trend
Description Unit 2021 2022 2023
Employee Engagement Scale 4 3.48 3.48 3.49
Employee Coverage % 100 100 100
Active Employee Engagement % 92 92 93
Male % 91 92 93
172 Gender
Female % 93 93 94
<30 years old % 90 91 89
Age 30-50 years old % 92 92 93
>50 years old % 95 94 95
Employee Satisfaction Survey
Description Unit 2023
Satisfaction Index # 3.35
Coverage % 77.64
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LEAVE POLICY
Data on Maternal Leave
[GRI 401-3] Description Gender Unit 2021 2022 2023
Male Person - 37,494 35,165
Number of employees entitled to maternity leave
Female Person - 17,891 30,477
Male Person 1,509 2,901 1,142
Number of employees who take maternity leave
Female Person 2,640 1,088 2,282
Male Person 1,509 2,901 1,142
Returning after taking maternity leave
Female Person 2,640 1,088 2,265
The rate of employees who take maternity leave
Female Person 100.00 100.00 99.50
and return to work and can be retained
Absenteeism Rate
Description Unit 2020 2021 2022 2023
[GRI 404-1]
173 Absentee Rate % 1.31 1.51 2.44 1.16
Number of days in a year day 242 243 242 236
Total Employees Person 88,184 82,718 74,735 77,739
Note: The absentee rate calculation has included both permanent and contract workers, and the data has been verified by a third party. Assurance documents are available in the appendix on page 210.
CUSTOMER SERVICE AND SATISFACTION
Customer Satisfaction Survey
[F.30] Description Unit 2021 2022 2023
Customer Satisfaction Rate % 89.28 83.58 84.66
Customer Complaint Resolution Rate % 99.53 99.53 99.56
BRI Service Quality vs Banking
Industry in Indonesia Description Unit 2021 2022 2023
Banking Industry Service Quality Index (Carre) # 4.29 4.25 4.35
BRI’s Service Quality Index (Carre) # 4.29 4.30 4.40
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CONFIDENTIALITY AND SECURITY OF CUSTOMER DATA
Data on Customer Complaints
Types of product/service Sources of Number/Total Percentage Resolved Percentage Unresolved Percentage In process Percentage
[GRI 418-1] [F.24]
Complaints
2023
Banking Customer 2,051,666 43.18% 2,030,540 98.97% 0 0% 21,126 1.03%
Availability of Information Customer 1,731,108 36.43% 1,731,108 100.00% 0 0% 0 0.00%
Non-Banking Customer 965,206 20.31% 965,206 100.00% 0 0% 0 0.00%
Service-Quality Customer 3,624 0.08% 3,624 100.00% 0 0% 9 0.25%
Jumlah Total Customer 4,751,604 100.00% 4,730,478 99.56% 0 0% 21,126 0.44%
2022
Banking Customer 1,422,935 30.73% 1,401,123 98.47% 0 0% 21,812 1.53%
174
Availability of Information Customer 2,330,290 50.33% 2,330,290 100.00% 0 0% 0 0.00%
Non-Banking Customer 873,079 18.86% 873,079 100.00% 0 0% 0 0.00%
Service-Quality Customer 3,939 0.09% 3,936 99.92% 0 0% 3 0.08%
Jumlah Total Customer 4,630,243 100.00% 4,608,428 99.53% 0 0% 21,815 0.47%
2021
Banking Customer 1,420,052 29.3% 1,397,306 98.4% 0 0% 22,746 1.60%
Availability of Information Customer 2,488,589 51.4% 2,488,589 100.0% 0 0% 0 0.00%
Non-Banking Customer 933,230 19.3% 933,230 100.0% 0 0% 0 0.00%
Service-Quality Customer 3,561 0.1% 3,558 99.9% 0 0% 3 0.08%
Jumlah Total Customer 4,845,432 100% 4,822,683 99.5% 0 0% 22,749 0.47%
Page 175
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Settlement of Customer
Description Unit 2021 2022 2023
Complaints
[GRI 418-1] [GRI 2-25] [F.24] Transaction Volume # 22,319,002,423 38,585,019,160 72,970,667,382
Number of Complaints # 4,845,432 4,630,243 4,751,604
Complaint Percentage % 0.02% 0.01% 0.01%
Resolved Complaints # 4,822,683 4,608,428 4,730,478
Resolving Percentage % 99.53% 99.53% 99.56%
There is a restatement of data in the form of an increase in the number of transactions across all channels since the year 2021.
Complaints Regarding Security
Description Unit 2021 2022 2023
of Customer Data
[GRI 404-1] [F.22] Complaints* from External Parties # 0 0 0
Complaints* from Government # 0 0 0
*) Substantiated complaints concerning breaches of customer privacy and losses of customer data
Information Security Incident
Description Unit 2021 2022 2023
175
Number of Information Security or Cybersecurity Violations # 0 0 0
Fines or Sanctions for Information Security or Cybersecurity Violations Rp 0 0 0
Number of Customers Affected by the Violations # 0 0 0
MANAGING HUMAN RIGHTS
Human Rights Assessment
Category Unit 2023
Internal
Employee assessed # 12,870
Total Employee # 74,735
Percentage % 17.22
External
Supplier/Business Partner # 42
Total Supplier/Business Partner # 251
Percentage % 16.73
Page 176
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GOVERNANCE
CORPORATE GOVERNANCE PERFORMANCE INDEX
Corporate Governance
Aspect Unit 2021 2022 2023
Performance Index
Governance Structure # 33.72 26.58 31.54
Governance Process # 34.38 36.38 31.24
Governance Outcome # 27.00 32.22 32.43
Total Score # 95.10 95.18 95.21
Global Systemically Important
BIS Leverage Ratio
Bank (MPE)
Aspect Unit 2021 2022 2023
176
(Basel III) Tier 1 Capital Rp 231,982,044 234,727,964 238,956,599
(Basel III) Total Exposure Rp 1,409,290,543 1,596,292,951 1,749,457,664
(Basel III) Leverage Ratio % 16.46 14.70 13.66
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ANTI-FRAUD STRATEGY & MANAGEMENT OF WHISTLEBLOWING SYSTEM (WBS)
Compliance Level of State
Obligation Designation Unit 2021 2022 2023
Officials' Wealth Report
Obligations (LHKPN) Board of Commissioners employee 8 11 11
Employees With LHKPN Obligation Directors employee 16 12 12
BRI employee employee 235 270 105
employee 8 11 11
Board of Commissioners
% 100 100 100
employee 16 12 12
Employees Already Report LHKPN Directors
% 100 100 100
177 employee 235 270 105
BRI employee
% 100 100 100
employee 0 0 0
Board of Commissioners
% 0 0 0
employee 0 0 0
Employees That Have Not Reported LHKPN Directors
% 0 0 0
employee 0 0 0
BRI employee
% 0 0 0
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Number of Whistleblowing
Description 2021 2022 2023
System Reports and Follow-up
Actions Number of reporting 116 107 50
[GRI 205-3]
Proven 47 62 29
Follow-up Not Proven 60 41 16
Cannot Be Followed-up - - -
Violation Category in
Whistleblowing System Category Unit 2023
Employee Violations of the Code of Ethics
178 Conflict of Interest # 5
Discrimination or Harassment # 0
Violations of Customer Information Security # 1
Corruption & Bribery # 16
Anti-Money Laundering Violations # 0
Others # 7
Status
Total Violations # 29
In process # 0
Settled # 29
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Number of Follow Up Fraud
Description Designation Unit 2021 2022 2023
Cases
[GRI 205-3]
Board of Commissioners and
employee - - -
commissions
Employees Involved in Fraud
Permanent Employee employee 191 388 98
Non-Permanent Employee employee 17 5 2
Board of Commissioners and
employee - - -
commissions
Having Been Completed with Disciplinary
Punishment Process Permanent Employee employee 188 272 66
Non-Permanent Employee employee 17 3 1
Board of Commissioners and
employee - - -
commissions
In Settlement Process at Bank's Internal
(Disciplinary Punishment) Permanent Employee employee - 8 10
Non-Permanent Employee employee - - -
179
Board of Commissioners and
employee - - -
commissions
Not Yet Resolved
Permanent Employee employee 3 108 22
Non-Permanent Employee employee - 2 1
Board of Commissioners and
employee - - -
commissions
Having Been Followed Up Through Legal Process
Permanent Employee employee - - 9
Non-Permanent Employee employee - - 4
CONTRIBUTION AND OTHER SPENDING
Contribution and Other Spending
Description Unit 2021 2022 2023
Lobbying, representation of interests, etc Rp 0 0 0
Note: BRI prohibits political contributions to organizations based on our Code of Conduct and Internal Policy.
Campaigns and local, regional, national political candidates / organizations Rp 0 0 0
Trade associations/tax exempt groups Rp 0 0 0
Other expenses (e.g. expenses for counting votes for elections or referendums) Rp 0 0 0
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
TAX REPORTING
Description Unit 2021 2022
Tax Reporting
Domestic Others Domestic Others
Number of Employees Person 86,058 95 74,735 105
Revenue Rp Million 185,985,834 940,302 202,710,231 1,581,523
Profit (Loss) Before Tax Rp Million 40,540,297 550,273 65,536,208 614,553
Income Tax Accrued Rp Million 12,882,902 119,123 13,103,645 125,386
Income Tax Paid Rp Million 19,512,364 100,905 24,473,827 84,337
180
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
GRI Standard Index
Statement of Use : PT Bank Rakyat Indonesia (Persero) Tbk has reported in accordance with the GRI Standards for the period 1 January until 31 December 2023.
GRI 1 Used : GRI 1: Foundation 2021
Applicable GRI Sector Standard : GRI G4 Financial Services
Omission
GRI Sector Standard Ref.
GRI Standard Disclosure Location
No.
Requirement Omitted Reason Explanation
General Disclosures
GRI 2: General 2-1 Organizational details
13-14, 75
Disclosures 2021
2-2 Entities included in the organization’s sustainability reporting 4
2-3 Reporting period, frequency and contact point 4
2-4 Restatement of information 4
2-5 External assurance 4, 210-214
2-6 Activities, value chain, and other business relationship 13-14, 24, 63, 133, 134
181 2-7 Employees 75, 134-136, 163
2-8 Workers who are not employees 75, 134, 163
2-9 Governance structure and composition 35-40, 49
2-10 Nomination and selection of the highest governance body 36, 41-42
2-11 Chair of the highest governance body 36-40
2-12 Role of the highest governance body in overseeing the management
23, 49-50, 54-59, 69
of impacts
2-13 Delegation of responsibility for managing impacts 49
2-14 Role of the highest governance body in sustainability reporting 11-12, 49-50
2-15 Conflict of interest 36, 45
2-16 Communication of critical concerns 23, 56-59
2-17 Collective knowledge of the highest governance body 43-44
2-18 Evaluation of the performance of the highest governance body 46
2-19 Remuneration policies 46-48, 76
2-20 Process to determine remuneration 46-48, 76
2-21 Annual total compensation ratio 77, 170
2-22 Statement on sustainable development strategy 5-8, 22
2-23 Policy commitments 15, 17, 60-62, 108-110
2-24 Embedding policy commitments 19-20, 49-53, 60-65,
80, 102
2-25 Processes to remediate negative impacts 61, 104, 177
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Omission
GRI Sector Standard Ref.
GRI Standard Disclosure Location
No.
Requirement Omitted Reason Explanation
2-26 Mechanisms for seeking advice and raising concerns 61, 81, 110
2-27 Compliance with laws and regulations 61-62
2-28 Membership associations 45
2-29 Approach to stakeholder engagement 54-55, 61
2-30 Collective bargaining agreements 75, 168
Material Topics
GRI 3: Material 3-1 Process to determine material topics 50-55
Topics 2021
3-2 List of material topics 51-53
Economic Performance
GRI 3: Material 3-3 Management of material topics 24
Topics 2021
182 GRI 201: Economic 201-1 Direct economic value generated and distributed 136-138
Performance
2016
201-2 Financial implications and other risks and opportunities due to climate
24
change
201-3 Defined benefit plan obligations and other retirement plans 78
201-4 Financial assistance received from government 24
Indirect Economic Impacts
GRI 3: Material 3-3 Management of material topics 92, 102
Topics 2021
GRI 203: Indirect Economic Impacts 203-1 Infrastructure investments and services supported 105-106
2016
203-2 Significant indirect economic impacts 143-144
Indirect Economic Impacts
GRI 3: Material 3-3 Management of material topics 63
Topics 2021
GRI 204: Procurement Practices 204-1 Proportion of spending on local suppliers 63, 139
2016
Anti-corruption
GRI 3: Material 3-3 Management of material topics 64-65
Topics 2021
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Omission
GRI Sector Standard Ref.
GRI Standard Disclosure Location
No.
Requirement Omitted Reason Explanation
GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption 64-65
205-2 Communication and training about anti-corruption policies and 63-64
procedures
205-3 Confirmed incidents of corruption and actions taken 62, 65, 180-181
Energy
GRI 3: Material 3-3 Management of material topics 130
Topics 2021
GRI 302: Energy 2016 302-1 Energy Consumption Within the Organization 130-131, 148-149
302-2 Energy consumption outside of the organization 130-131, 148-149
302-3 Energy intensity 130-131, 148-149
302-4 Reduction of energy consumption 130-131, 148-149
302-5 Reductions in energy requirements of products and services 130-131
183 Emissions
GRI 3: Material 3-3 Management of material topics 124-125
Topics 2021
GRI 305: Emissions 2016 305-1 Management of material topics 124-127, 150-151
305-2 Energy indirect (Scope 2) GHG emissions 124-127, 150-151
305-3 Other indirect (Scope 3) GHG emissions 124-127, 150-151
305-4 GHG emissions intensity 124-127, 150-151
305-5 Reduction of GHG emissions 124-127, 150-151
305-6 Emissions of ozone-depleting substances (ODS) 124, 131
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air 124
emissions
Employment
GRI 3: Material 3-3 Management of material topics 75
Topics 2021
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 75, 160-162
401-2 Benefits provided to full-time employees that are not provided to 77
temporary or part-time employees
401-3 Parental leave 175
Training and Education
GRI 3: Material 3-3 Management of material topics 78
Topics 2021
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
Omission
GRI Sector Standard Ref.
GRI Standard Disclosure Location
No.
Requirement Omitted Reason Explanation
GRI 404: Training and Education 404-1 Average hours of training per year per employee 171-175
2016
404-2 Programs for upgrading employee skills and transition assistance 78-80
programs
404-3 Percentage of employees receiving regular performance and career 76
development reviews
Non-Discrimination
GRI 3: Material 3-3 Management of material topics 109-110
Topics 2021
GRI 406: Non Discrimination 2016 406-1 Incidents of discrimination and corrective actions taken 110
Freedom of Association and Collective Bargaining
GRI 3: Material 3-3 Management of material topics 60
Topics 2021
184 GRI 407: Freedom of Association 407-1 Operations and suppliers in which the right to freedom of association 60, 75
and Collective Bargaining 2016 and collective bargaining may be at risk
Child Labor
GRI 3: Material 3-3 Management of material topics 63, 110
Topics 2021
GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor 63, 110
Forced or Compulsory Labor
GRI 3: Material 3-3 Management of material topics 110
Topics 2021
GRI 409: Forced or Compulsory 409-1 Operations and suppliers at significant risk for incidents of forced or 110
Labor 2016 compulsory labor
Local Community
GRI 3: Material 3-3 Management of material topics 104
Topics 2021
GRI 413: Local 413-1 Operations with local community engagement, impact assessments, 104-107
Communities 2016 and development programs
413-2 Operations with significant actual and potential negative impacts on 104
local communities
Customer Privacy
GRI 3: Material 3-3 Management of material topics 67
Topics 2021
GRI 418: Customer Privacy 2016 418-1 Substantiated complaints concerning breaches of customer 176-177
privacy and losses of customer data
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Governance: Social: Environmental: Sustainability Report 2023
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
Omission
GRI Sector Standard Ref.
GRI Standard Disclosure Location
No.
Requirement Omitted Reason Explanation
Sector Disclosure
GRI G4 Financial Services FS1 Policies with certain environmental and social components 21, 63, 70
FS2 Procedures for assessing and screening environmental and social risks 52, 69, 70
in business lines
FS3 Processes for monitoring client implementation and compliance with 63, 70
environmental and social requirements included in agreements or
transactions
FS4 Processes for improving staff competency to implement environmental 43, 70, 75-76, 79-80
and social policies and procedures as applied to lines of business
FS5 Interactions with clients/investments/business partners regarding 63, 69-70
environmental and social risks and opportunities
FS6 Portfolio percentage for business lines by specific area size (eg 23, 97, 140-143
micro/SME/large) and by sector
185 FS7 The monetary value of products and services designed to provide 71, 146-148, 156-157
specific social benefits for each line of business broken down by
purpose or objective
FS8 The monetary value of products and services designed to provide 71, 145-148, 154, 158-159
specific environmental benefits for each line of business broken down
by purpose or objective
FS9 Scope and frequency of audits to assess implementation of 63, 70
environmental and social policies and risk assessment procedures
FS10 Percentage and number of companies held in the portfolio of 145-146
institutions with which the reporting organization interacts on
environmental or social issues
FS11 Percentage of assets that are subject to positive and negative 69-70, 145-146, 148
environmental social issues
FS12 A voting policy on where environmental or social issues are shared 49, 54, 113
where the reporting organization has the right to vote to share or
receive suggestions on voting
FS13 Access points in low-populated or economically disadvantaged 97, 154-156
areas by type
FS14 Initiatives to improve access to financial services for disadvantaged 97, 154-156
people
FS15 Policies for the fair design and sale of financial products and services 69, 85
FS16 Initiatives to improve financial literacy by type or beneficiary 85, 94, 97
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
Financial Service Authority (OJK) Reference [G.4]
SEOJK Reference Disclosure Page
Circular No. 16/ A.1 Descriptions of Sustainability Strategy 19-20
SEOJK.04/2021
B.1 Economic Aspects 24, 63, 71, 75, 134, 139, 147
B.2 Environmental Aspects 25
B.3 Social Aspects 25, 63, 129
C.1 Vision, Mission and Sustainability Values 15, 49
C.2 Company's Address 13, 133
C.3 Scale of Business 13, 14, 75, 134-136
C.4 Products, Services and Business Activities Conducted 13-14
C.5 Membership of Associations 45
C.6 Significant Changes in Organization 24
D.1 Explanations from the Board 5-10
E,1 Responsibility in the Implementation of Sustainable Finance 21-23, 35, 49
186 E.2 Development of Finance-Related Competency 43-44
E.3 Risk Assessment on the Implementation of Sustainable Finance 34
E.4 Stakeholder Relations 54-55
E.5 Issues Surrounding the Implementation of Sustainable Finance 23
F.1 Activities in Building a Culture of Sustainability 17, 49, 80, 84, 102
F.2 Comparison between Production Target and Performance, Portfolio, Financing Target, or Investment, Income and Profit and Loss 136-138
F.3 Comparison between Portfolio Targets and Performance, Financing Targets, or Investments in Financial Instruments or Projects Compatible with Sustainable Finance 71
F.4 Environmental Cost 153
F.5 Use of Environmentally Friendly Materials 129, 131, 149
F.6 Amount and Intensity of Energy Used 148-149
F.7 Efforts and Fulfillment of Energy Efficiency and Use of Renewable Energy 129-130
F.8 Water Usage 130, 149
F.11 Amount and Intensity of Emissions Produced by Type 150-151
F.12 Emission Reduction Efforts and Achievements 129-130
F.13 The amount of waste and effluent produced by type 129, 149
F.14 Waste and effluent management mechanisms 129, 149
F.15 The spill occurred 129, 149
F.16 Number and material of environmental complaints received and resolved 62
F.17 Commitment to provide equivalent products and/or services to consumers 102
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SEOJK Reference Disclosure Page
F.18 Equal Employment Opportunity 34, 75
F.19 Child Labor and Forced Labor 63, 108, 110
F.20 Regional Minimum Wage 76
F.21 Decent and Safe Working Environment 82-83
F.22 Employee Capability Training and Development 43-44, 171-172, 177
F.23 Impact of Operations on Surrounding Communities 95, 104
F.24 Public Complaints 176-177
F.25 Environmental Social Responsibility Activities (TJSL) 22, 103, 153
F.26 Innovation and Development of Sustainable Financial Products/Services 71, 93-100
F.27 Safety Evaluated Products/Services for Customers 101
F.28 Impact of Product/Service 25, 95
F.29 Number of Products Recalled 134
187 F.30 Customer Satisfaction Survey on Sustainable Financial Productsand/or Services 25, 102, 175
G.1 Written Verification from Independent Party 4, 210-214
G.2 Feedback Form 215
G.3 Response towards Feedback on Previous Year's Sustainability Report 215
G.4 List of Disclosures According to Financial Services Authority Regulation Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers,
188-189
and Public Companies
Referensi Sustainability Accounting Standard Board (SASB)
Code Description Response
Keamanan Data
FN-CB-230a.1 (1) Number of data breaches There was no breach data in the reporting period.
(2) Percentage of personally identifiable information
(3) Number of accounts affected
FN-CB-230a.2 Approaches to dealing with data security risks BRI strengthens information security by establishing information security governance, escalation processes, and actions for
handling violations which can be seen on page 66-68.
Financial Inclusion and Capacity Building
FN-CB-240a.1 Loan amount that is eligible for small business and community development programs BRI provides inclusive financial products and services for the micro, consumer, small, medium and vulnerable groups seg-
ments which can be found on page 85-100 and 140-144.
FN-CB-240a.2 Amount of eligible and non-accrual loans to promote small business and community development
FN-CB-240a.3 Number of accounts that previously did not have a bank account or faced limited banking access BRI presents Student Savings (SimPel) products where students can save easily at school and at no cost. In 2023, SimPel's
total accounts will reach 35,034,544 accounts
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Code Description Response
FN-CB-240a.4 Number of participants in financial literacy programs BRI has customer literacy programs ranging from basic literacy to digital literacy such as Desa BRILiaN, klusterhidupku,
linkMSME,MSME EXPO(RT) which can be seen on page 85-100.
Integration of ESG Factors in Credit Analysis
FN-CB-410a.1 Commercial and credit opening by industry Credit per business sector can be seen on page 142-143.
FN-CB-410a.2 Approaches to including environmental, social and governance (ESS) factors in credit analysis BRI refers to the Loan Portfolio Guidelines (LPG) which requires ESG aspects in the KYC process for prospective debtors. BRI
also has financing policies that pay attention to ESG aspects such as green sector, palm oil, pulp and paper policies, which
can be seen on page 69-70.
Financed Emission
FN-CB-410b.1 Absolute financed emissions, divided into (1) Scope 1, (2) Scope 2, and (3) Scope 3 BRI has calculated financed emissions which can be seen on page 124-127 and 150-151.
FN-CB-410b.2 Gross exposure for each industry by asset class
FN-CB-410b.3 Percentage of gross exposure included in the calculation of financed emissions
FN-CB-410b.4 Description of the methodology used to calculate financed emissions
188 Business Ethic
FN-CB-510a.1 Total losses due to legal proceedings relating to fraud, insider trading, antitrust, anti-competitive conduct, market manip- There are no cases or losses resulting from legal proceedings related to the activities mentioned
ulation, malpractice, or other related financial industry violations
FN-CB-510a.2 Whistleblowing policies and procedures Whistleblowing policies and procedures can be seen on page 61.
Systemic Risks Management
FN-CB-550a.1 Global Systemically Important Bank (G-SIB) score, by category The G-SIB score can be seen on page 178.
FN-CB-550a.2 Approaches to stress test BRI routinely carries out stress-testing simulations at least once every quarter to evaluate vulnerabilities that may not be
visible under normal conditions, but can become a significant risk when extreme conditions occur.
Sustainable Banking Assessment (SUSBA) References
Indicator Disclosure Page
Objective Sustainability strategy and stakeholder engagement 5-10,17-23
Participation in sustainable finance initiatives 22-23, 54-55
Policies Public statements about ESG 22-23, 69-71
Public statements on specific sectors 22-23, 28-32
Processes ESG risk assessment and transaction approval 28-30, 69-70, 145-146
Client oversight and engagement 69-70
Communities Responsibilities towards ESG 22-23, 49
Environmental & social staff training, and performance evaluation 41-42
Products ESG integration in products and services 145-146
Portfolio ESG risk assessment and mitigation at portfolio level 114-123
Disclosure of ESG risk exposure and targets 114-124, 142-146
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
189
Issued Securities
Impact Reporting
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
Green Bond Phase I Impact Report
01. Introduction 03. Summary of the Framework
PT Bank Rakyat Indonesia (Persero) Tbk ("BRI"), as the largest bank in Indonesia focusing on the micro, small, and BRI has formulated the framework for the BRI Environmental Vision Bond (Green Bond) before its issuance in July 2022.
medium segments, continues to contribute to the country, particularly by supporting the government's strategies for To ensure the framework's compliance with applicable regulations and standards, BRI collaborated with the Sustainable
economic growth. BRI actively participates in programs related to financial literacy, financial inclusion, and social and Development Goals Hub at the University of Indonesia (SDGs UI) to obtain a Second Party Opinion. The issuance of BRI's
economic resilience. In the post-pandemic economic recovery era, BRI consistently provides the best services by nurturing, Green Bond in Indonesian Rupiah is conducted in accordance with the Financial Services Authority Regulation No. 60/
empowering, optimizing competencies, and supporting the Indonesian community to enhance family and societal well- POJK.04/2017 concerning the Issuance and Requirements of Environmentally Friendly Debt Securities ("Green Bond")
being. The vision is to become "The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion" (POJK 60). The structured framework encompasses four main focuses, including the Use of Proceeds, Process for Project
by 2025. Evaluation & Selection, Management of Proceeds, and Reporting.
BRI also actively participates as a growth agent aligned with various government programs to reduce economic inequality,
such as addressing disparities in wealth distribution. The bank is committed to the conservation of natural resources and Use of Proceeds
the environment, including sustainable natural resources and land, water and irrigation management, and other sustainable
A minimum of 70% financing for Environmentally A maximum of 30% financing for other general activities,
economic growth initiatives to improve the quality of life and the environment for both BRI and the Indonesian community Responsive Public Activities (ERPA) such as the micro sector, health, and social initiatives
in general.
190
Various business activities and efforts undertaken by BRI sustainably align with the principles of the United Nations
Environmentally Responsive Public Activities (ERPA)
Sustainable Development Goals (UN SDGs), reflecting BRI's commitment to Environmental, Social, and Governance (ESG)
principles. The issuance of Green Bonds as a source of bank liquidity serves as an example of ESG implementation in BRI's No Activities No Activities
banking activities. The Sustainable Environmental Vision Bond I Bank BRI Phase I, 2022, is the first Green Bond issued by a
1 Renewable Energy 7 Sustainable Water & Waste Water Management
bank in Indonesia.
2 Energy Efficiency 8 Climate Change Adaptation
3 Pollution Prevention & Control 9 Products that Can Reduce Resource Use Resources &
02. Issuance Details Produce Less Pollution
4 Biological Resources Management & Sustainable 10 Environmentally Friendly Building
In 2022, BRI issued the Green Bond I Phase I, 2022, with an emission value of IDR 5 trillion, experiencing an oversubscription Land Use
of 4.4 times during the bookbuilding process.
5 Land & Water Biodiversity Conservation 11 Other environmentally friendly business activities
6 Environmentally Friendly Transportation
Summary of Bond Transactions
Name Sustainable Environmental Bonds I Bank BRI Phase I Year 2022
Value Rp 5 Trillion Project Evaluation and Selection Process
Series Tenor Listing Date Due Date Coupon Value
A 370 days July 21, 2022 Juli 30, 2023 3.70% Rp2.5 Trillion
B 3 years July 21, 2022 July 20, 2025 5.75% Rp2.0 Trillion
C 5 years July 21, 2022 July 20, 2027 6.45% Rp0.5 Trillion Identification Pre-screening Review Allocation
Rating
Listing
*has matured
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Management of Proceeds Proceeds
y Proceeds from the issuance will be managed collectively and then allocated to (ERPA), with a minimum allocation of Eligible Sectors Financing Type Allocation Percentage Description
70%. (Rp Billion)
y The creation of a special account or separate records in the financial statements and sustainability reports. Renewable Energy Refinancing 2,413.25 48.26%
y Assets allocated for financing purposes will be actively managed, both individually and as part of a portfolio. Biological Resources Management Refinancing 1,634.83 32.70% 100% utilized Series A
y If there are assets that are not relevant to the framework or have discontinued financing, they will be redirected to other & Sustainable Land Use proceeds
assets. Employment Generation Refinancing 374.24 7.48% 100% utilized Series A
y Proceeds pending realization may be placed in safe and liquid financial instruments. proceeds
Socioeconomic advancement and Refinancing 577.71 11.57% 100% utilized Series A
Reporting empowerment proceeds
Allocation Reporting
BRI reports the allocation of proceeds periodically, at least once a year, within one year after the issuance, and whenever
191 there is a material change in KUBL, accompanied by a review report by environmental experts.
Green Category Social Category
Proceed Allocation
(Rp Billion) (Rp Billion)
Impact Reporting
BRI issues periodic reports on the impact of projects/assets financed to the extent that it can be practically calculated and 2,413.25
measured in accordance with the environmental expert review.
19%
1,634.83
04. Allocation Report
577.71
374.24
As of the reporting period on December 31, 2023, BRI maintains a 100% allocation of proceeds from the issuance of Bank
BRI Green Bond, Phase I Year 2022. The acquired proceeds are earmarked for refinancing several projects already existing in 81%
BRI's financing portfolio, which contribute to both environmental and social benefits.
Renewable Energy Biological Resources Employee Socioeconomic
Management & Generation advancement and Green Social
In accordance with the provisions of POJK 60 and following the established framework, BRI undergoes a selection and Sustainable Land empowerment
Use
evaluation process for the portfolio and pipeline of BRI's financing related to sectors that meet the criteria in the Green
Bond Framework. The detailed allocation is as follows:
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
05. Impact
Referring to the Bank BRI Green Bond Phase I framework, the environmental impact (as applicable based on eligible KUBL Eligible Sectors Alignment with SDGs Brief Description & Impact Indicators
sectors) and social impact are as follows: Socioeconomic KUR program is intended to support the development of non-bankable Micro businesses.
advancement and The businesses financed through the proceeds from the issuance of Green Bond Phase I are
empowerment estimated to generate more than ±19,000 jobs across various regions in Indonesia.
Green Categories
Eligible Sectors Alignment with SDGs % of Eligible Project Type Brief Description & Impact Indicators
Kupedes by Region Kupedes by Sector
Assets
Renewable Energy 59.61% Power Generation Estimated environmental impact generated: 5% 1% 7% 0%
• Renewable energy produced per year: 4% 16%
1,669,000 MWh.
11%
• Avoided GHG emissions per year: 1,469,471 3%
Ton CO2eq.
Biological Resources 50.39% Financing for Sustainable BRI has financed a responsibly managed oil palm
Management & and Environmentally plantation project certified under ISPO/RSPO.
Sustainable Land Friendly Oil Palm
Use Plantation Investments.
192 72% 81%
Sumatera Bali, NTT Agriculture Retail Trade
Jawa Sulawesi Fishery Health & Social Services
Social Categories
Kalimantan Papua
Eligible Sectors Alignment with SDGs Brief Description & Impact Indicators
Employee Creating job opportunities in the MSME segment, with an estimated total of 5,200 new jobs
Generation distributed across Indonesia.
Kupedes by Region Kupedes by Sector 06. Conclusion
2% 1% 7%
7% 12% 2% The Green Bond Report represents BRI's commitment as a pioneer in sustainable finance in Indonesia. BRI is dedicated
to continuously meeting the established and applicable criteria related to green bonds to maintain the trust of investors,
15% regulators, and the public in general towards BRI as an ESG-focused financial institution.
5% In accordance with the Green Bond framework prepared by BRI, at least 70% (actual realization: 80.96%) of the activities
financed by BRI Green Bond Phase I 2022, meet the criteria as KUBL and have a positive impact on the environment
through emission reduction, resource management, and renewable energy.
59% 90%
Sumatera Bali, NTT Agriculture Retail Trade
Jawa Sulawesi Fishery Health & Social Services
Kalimantan Papua
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Appendix I
Review Report by Environmental Expert
SDGs Hub of the University of Indonesia, as the Environmental Expert selected to review the Report on Bank BRI Green About SDGs Hub University of Indonesia
Bond, Phase I Year 2022 (Green Report) which includes some supporting data regarding the issuer of Bank BRI Phase I
Sustainable Green Bond I Year 2022. Environmental Experts have competency experience and relevant certificates in SDGs HUB UI was established and inaugurated in Jakarta on April 29, 2019, by Prof. Bambang Brodjonegoro, the
environmentally sound activities (attached-Appendix I). Minister of National Development Planning (Bappenas). SDGs HUB UI serves as a hub or focal point for all activities
and programs related to the achievement and implementation of Sustainable Development Goals (SDGs) at the
Management Responsibilities University of Indonesia, nationally, regionally, and internationally, covering topics related to economic, social, and
Management's responsibility for the preparation and presentation of the Green Bond Report 2022 is following Bank BRI's environmental issues. Additionally, SDGs HUB UI is designated as the main coordinator for the UN Sustainable
Green Bond Framework. Development Solutions Network (SDSN) in Indonesia, with SDSN headquartered at Columbia University, New York.
Responsibilities of Environmental Experts SDGs HUB UI operates under the Institute for Sustainable Earth and Resources (ISER) at the Faculty of Mathematics
and Natural Sciences (FMIPA) at UI. Currently, SDGs HUB UI has engaged in various collaborations with development
The responsibility of the Environmental Expert is to review the Green Bond Report and several other supporting
partners such as think tanks, government agencies, international organizations, and philanthropy. The scope of
documents following the provisions of the Financial Services Authority Regulation Number 60 of 2017 (“POJK 60”) Article 10
cooperation that SDGs Hub UI can undertake includes consultancy and assistance in the preparation of spatial
Paragraph 1. The review that we carry out includes the suitability of the implementation of the selection of Environmentally
plans, policies, training and capacity building, investments and innovations, and impact investment and efficiency.
Friendly Business Activities projects (“KUBL”) as stated in the Green Bond Framework, distribution of proceeds from the
193 In executing its tasks and projects, SDGs HUB UI bridges clients with experts who have diversified backgrounds and
2022 Green Bond issuance to selected KUBL projects, and the availability of environmental impact estimates from the
expertise.
financed KUBL project. 100% of the proceeds from the issuance of the Green Bond Phase I 2022 have been allocated and
reported in the Green Bond Report Phase I 2022, and there has been no change to the projects financed. Environmental
SDGs Hub UI has experience in formulating Environmental Opinions for the Green Bond Framework for BRI and PT
experts only review the environmental impacts contained in the 2022 Green Bond Report compiled by the Team at Bank
Pegadaian. The Environmental Experts at SDGs HUB UI have an excellent reputation in Green Bond work recognized
BRI, based on data provided by recipients of the 2022 Phase I Green Bond issuance funds.
by OJK and Bank Indonesia. This is evident from the invitations extended to SDGs HUB UI as speakers in External
Verifier discussions on Green Bond issuances in the Indonesian capital market conducted by OJK and as speakers
Review results
from Bank Indonesia in the Completion of Studies and Assessments related to the Development of Environmental,
Based on the review that has been done, it can be concluded: Social, and Governance (ESG) Instruments.
1. The selection of KUBL projects in the distribution of proceeds from the 2022 Green Bond issuance is following the
Green Bond Framework. Environmental Experts in Green Bond SDGs HUB UI:
2. The proceeds from the issuance of Green Bond Phase I 2022, 100% have not changed from the funds allocated to y Prof. Drs. Jatna Supriatna, Ph.D : Expert in Climate Change, Sustainable Economy
finance the two approved KUBL sectors (attached - Appendix II). y Dr. Triarko Nurlambang, MA : Expert in Sustainable Development (SDGs), Public Policy
3. The ongoing project has an estimated positive impact on the environment (attached – Appendix II), according to the y Dr. Sri Mariati, MSc : Expert in Socio-Economy, Investment, Sustainable Economy
indicators predetermined by Bank BRI. These indicators are obtained through calculations that are consistent and in y Dr. Mahawan Karuniawan, MSc : Expert in Environmental, Climate Change and Sustainable Development
accordance with existing best practices. y Dr. rer. pol Sonny Mumbunan, MSc : Expert in Economy, Environment, Climate Change, and Climate Change Policy
4. Regarding the social impact measurement, it is proposed to use a relevant method such as the SROI (Social Return on y and. Dr. Berly Martawardaya, MSc : Expert in Sustainable Economy, Business and Finance, and Banking.
Investment).
For more information, contact us via sdgshub@ui.ac.id.
Jakarta, January 31st 2023
SDGs HUB UI Coordinator SDGs HUB UI Advisor
Dr. Triatko Nurlambang, MA Prof. Dr. Jatna Supriatna, M.Sc
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Appendix II
Usage of Proceeds from Issuance
Proceeds Flow Environmental Benefits of Financed Projects
BRI has allocated 100% of the proceeds from the issuance of Bank BRI Green Bond, Phase I Year 2022 to finance KUBL All Green Sector projects have positive environmental impacts, as per the indicators predefined by Bank BRI. These
projects in accordance with Financial Services Authority (OJK) Regulation No. 60/POJK.04/2017. The proceeds obtained are indicators are obtained through a consistent identification and calculation process in accordance with established best
intended for the refinancing of several projects already present in BRI's financing portfolio that deliver environmental and practices. Projects financed through the issuance of BRI Green Bond Phase I 2022 comply with OJK Regulation No. 60/
social benefits. These projects include: POJK.04/2017 and contribute to the achievement of the Sustainable Development Goals ("SDGs").
The following is a summary of environmental benefits in 2023 from projects financed by the proceeds of the issuance of
BRI Green Bond Phase I 2022:
Percentage
KUBL Green Activities Project Types Allocation of Project Value (in Rupiah)
Proceeds Financing Investment in Oil Palm Land with
Green Category 80.96% 4,048,075,265,728 Indicators Hydropower Plant Environmentally Friendly and Sustainable
Renewable Energy Hydropower Plant 48.26% 2,413,243,009,316 Production Processes
194
Management of Biodiversity Financing 32.70% 1,634,832,256,412 Renewable Energy Generated 1,669,000 MWh N/A
and Sustainable Land Use Investment in Oil
Palm Land with Avoidable GHG Emissions 1,469,471 ton CO2e /year N/A
Environmentally
Possessing environmental certifications as N/A Having ISPO or RSPO certification
Friendly and
required for sustainable purposes within
Sustainable
the respective industry
Production
Processes
MSME (Non-Green) 19.04% 951,952,993,790
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Green Bond Phase II Impact Report
01. Introduction 03. Summary of the Framework
BRI is committed, as outlined in the Company's business strategy, to not only have a positive impact on the Company BRI has formulated the framework for the Green Bond I before its issuance in July 2022. To ensure the framework's
itself but also on the environment and societal life. To realize and continue this positive impact, BRI channels lending to compliance with applicable regulations and standards, BRI collaborated with the Sustainable Development Goals Hub at
green and social categorized business sectors, inviting the participation of the national financial market in the Green Bond the University of Indonesia (SDGs UI) to obtain a Second Party Opinion. The issuance of BRI's Green Bond in Indonesian
Phase II in 2023. The Green Bond Phase II in 2023 was successfully issued for an amount of Rp 6 trillion, constituting a Rupiah is conducted in accordance with the Financial Services Authority Regulation No. 60/POJK.04/2017 concerning
part of the Sustainable Public Offering (PUB) format with a total limit of Rp 15 trillion. The Green Bond Phase II in 2023 is a the Issuance and Requirements of Environmentally Friendly Debt Securities ("Green Bond") (POJK 60). The structured
continuation of the Green Bond Phase I in 2022. framework encompasses four main focuses, including the Use of Proceeds, Process for Project Evaluation & Selection,
Management of Proceeds, and Reporting.
BRI acknowledges that maintaining and further improving sustainable finance implementation will have a broad impact
on the Indonesian economy, drive innovation, and especially have a direct impact on society. The implementation of
Sustainable Financial Action Plans (RAKB) will continue to be promoted to support Sustainable Development Goals Use of Proceeds
(SDGs). This is also in line with BRI's vision for 2025 to become "The Most Valuable Banking Group in Southeast Asia and
Champion of Financial Inclusion." A minimum of 70% financing for Environmentally Aware A maximum of 30% financing for other general activities,
Business Activities (KUBL) such as the micro sector, health, and social initiatives
195 BRI also avoids extending credit to sectors suspected of engaging in illegal logging, illegal drug sales, labor exploitation, child
exploitation, human rights violations, money laundering, destruction and annihilation of prehistoric sites, trade of protected
plants and animals, illegal fishing, and other businesses conflicting with the laws of Indonesia. Environmentally Aware Business Activities (KUBL)
No Activities No Activities
1 Renewable Energy 7 Sustainable Water & Waste Water Management
2 Energy Efficiency 8 Climate Change Adaptation
02. Issuance Details 3 Pollution Prevention & Control 9 Products that Can Reduce Resource Use Resources &
Produce Less Pollution
In 2023, BRI issued the Green Bond I Bank BRI Phase IIf for the year 2023 with an emission value of Rp 6 trillion, recording 4 Biological Resources Management & Sustainable 10 Environmentally Friendly Building
an oversubscription of 2.63 times. Land Use
5 Land & Water Biodiversity Conservation 11 Other environmentally friendly business activities
Summary of Bond Transactions
6 Environmentally Friendly Transportation
Name Sustainable Environmental Bonds I Bank BRI Phase II Year 2023
Value RP6 Trillion
Series Tenor Listing Date Due Date Coupon Value Project Evaluation and Selection Process
A 370 days October 17, 2023 October 27, 2024 6,10% Rp1.35 Trillion
B 2 years October 17, 2023 October 17, 2025 6,35% Rp4.15 Trillion
C 5 years October 17, 2023 October 17, 2026 6,30% Rp0.50 Trillion
Identification Pre-screening Review Allocation
Rating idAAA (Pefindo)
Listing Indonesia Stock Exchange
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04. Allocation Report
Management of Proceeds As of the reporting period on December 31, 2023, BRI maintains a 100% allocation of proceeds from the issuance of Bank
y Proceeds from the issuance will be managed collectively and then allocated to KUBL, with a minimum allocation of BRI Green Bond I, Phase II Year 2023. The acquired proceeds are earmarked for refinancing several projects already existing
70%. in BRI's financing portfolio, which contribute to both environmental and social benefits.
y The creation of a special account or separate records in the financial statements and sustainability reports.
y Assets allocated for financing purposes will be actively managed, both individually and as part of a portfolio. In accordance with the provisions of POJK No. 60/POJK.04/2017 on The Issuance and Requirements Green Bond and in
y If there are assets that are not relevant to the framework or have discontinued financing, they will be redirected to other accordance with the established Green Bond Framework. 80.59 percent of the proceeds obtained are used for refinancing
assets. green activities, while 19.41 percent of the proceeds obtained are allocated for refinancing social activities. The detailed
y Proceeds pending realization may be placed in safe and liquid financial instruments. allocation is as follows:
Reporting
Allocation Reporting
BRI reports the allocation of proceeds periodically, at least once a year, within one year after the issuance, and whenever
196 there is a material change in KUBL, accompanied by a review report by environmental experts.
Green Category Social Category
(Rp Billion) (Rp Billion)
Impact Reporting
BRI issues periodic reports on the impact of projects/assets financed to the extent that it can be practically calculated and 3,520
measured in accordance with the environmental expert review.
1,392 992
191
Renewable Energy Biological Resources Employment Generation Socioeconomic advancement
Management & Sustainable and empowerment
Land Use
The allocation for the Green Category is 80.59%, The allocation for the Social Category is 19.41%,
equivalent to Rp 4.91 trillion. The financed projects equivalent to Rp 1.09 trillion. The financed
fall into two categories: Renewable Energy and projects fall into the categories of Employment
Sustainable Resource Management & Land Use. Generation and Socioeconomic Advancement and
Empowerment.
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05. Impact
Referring to the Bank BRI Green Bond Phase II framework,in 2023, the environmental and social impacts are in accordance Eligible Sectors Alignment with Brief Description & Impact Indicators
SDGs
with the qualified sectors, namely:
Socioeconomic KUR program is intended to support the development of non-bankable Micro businesses and is
advancement and estimated to create more than 3,000 jobs in various regions of Indonesia.
Green Categories empowerment
Eligible Sectors Alignment with % of Eligible Project Type Brief Description & Impact Indicators
KUR by Region KUR by Sector
SDGs Assets
Renewable Energy 22,84% Power Generation Estimated environmental impact generated: 1% 1% 3%
11% 0%
• Renewable energy produced per year:1,134,272 28%
MWh.
• Avoided GHG emissions per year: 998.670
27%
11%
Ton CO2eq.
Biological Resources 57,75% Financing for Sustainable BRI has financed a sustainable oil palm
Management & and Environmentally plantation project that adopts the best domestic 5% 56%
Sustainable Land Friendly Oil Palm and global practices and standards in responsible 2%
Use Plantation Investments. palm oil production, namely possessing ISPO or
RSPO certification.
12%
197 44%
Accommodation & Leisure Retail Trade
Sumatera Bali, NTT
Agriculture Transportation
Jawa Sulawesi
Social Categories Papua
Fishery Finance
Kalimantan Health & Social Services
Eligible Sectors Alignment with Brief Description & Impact Indicators
SDGs
Employee Generation Creating job opportunities in the MSME segment, with an estimated total of 8,800 new jobs
(Kupedes Credit) distributed across Indonesia. 06. Conclusion
The Impact Report on BRI Green Bond I Phase II in 2023 demonstrates the commitment and realization of sustainable
Kupedes by Region Kupedes by Sector
finance implementation in line with the United Nations Sustainable Development Goals, particularly points 7, 8, 10, 12, and
2%
11% 1% 0%4% 13. BRI continues to encourage active participation from all relevant parties to support and advance the national economy
2% 26% 11% through the implementation of sustainable finance.
10%
10%
4% The issuance of BRI Green Bond I Phase II in 2023 is part of the Sustainable Public Offering (PUB) amounting to Rp15 trillion,
4% which was positively responded to by investors, marked by an oversubscription of 2.63 times.
BRI has also undergone external review by environmental experts, stating that at least 70% (actual: 80.59%) of the activities
48% 60%
financed by green bonds have met the criteria as Environmentally Aware Business Activities (KUBL) and have a positive
Accommodation & Leisure Agriculture
Sumatera Bali, NTT Health, Education & Social Services Fishery impact on the environment, in accordance with the previously established framework. This confirms the credibility of BRI
Retail Trade Others
Jawa Sulawesi
Transportation Finance
Green Bond’s compliance and commitment to meeting Green Bond requirements.
Kalimantan Papua Energy
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Appendix I
External Report Review
SDGs Hub, University of Indonesia, as the Environmental Expert chosen to review the Sustainable Environmental Bond Jakarta, January 17, 2024
Report I BRI Bank Phase II 2023, which includes several supporting data related to the issuance of Sustainable Bonds I
BRI Bank Phase II 2023. External Review has relevant experience and diploma competencies in environmentally friendly SDGs HUB UI Coordinator SDGs HUB UI Advisor
activities (attached-Attachment I).
Management Responsibilities
Management's responsibility for the preparation and presentation of the Green Bond Report 2022 is following Bank BRI's
Dr. Triatko Nurlambang, MA Prof. Dr. Jatna Supriatna, M.Sc
Green Bond Framework.
External Responsibilities Experts
The responsibility of the External Review is to review the annual Green Bond report and several other supporting
documents following the provisions of Financial Services Authority Regulation Number 18 of 2023 Article 13. Our review
includes the suitability of the implementation of the selection of Environmentally Friendly Business Activities ("KUBL")
198 projects as stated in the Green Bond Framework or in POJK 18 of 2023 replacing POJK 60 of 2017, it is stated that Green
Bond is Environmental EBUS, distribution of funds from the issuance of Green Bond 2023 to selected KUBL projects; and
the availability of environmental impact estimates from funded KUBL projects. Funds from the issuance of Green Bond
Phase II 2023 have been allocated 100% and reported in the Green Bond Report Phase II 2023, and there are no changes to
the projects financed. We only review the environmental impacts contained in the 2023 Green Bond Report prepared by
the Team at Bank BRI, based on data provided by recipients of Phase II 2023 Green Bond issuance funds.
Review results
Based on the review that has been done, it can be concluded:
1) The selection of KUBL projects in the distribution of proceeds from the 2023 Green Bond issuance is following the Green
Bond Framework.
2) The proceeds from the issuance of Green Bond Phase II 2023, 100% have not changed from the funds allocated to
finance the two approved KUBL sectors.
3) Renewable energy projects that have been funded are not yet operational; the impact calculation is only an assumption
from the financing from Green Bond Phase I 2022, which is already underway. Even though the indicators used follow
the KUBL previously determined by Bank BRI, these indicators are obtained through consistent calculations and follow
existing best practices.
4) Regarding the social impact measurement, it is proposed to use the SROI (Social Return on Investment) method.
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ESG Data Tables Reporting Standards Indices Issued Securities Impact Reporting Assurance Report
Appendix II
Usage of Proceeds from Issuance
Proceeds Flow Environmental Benefits of Financed Projects
BRI has allocated 100% of the proceeds from the issuance of Bank BRI Green Bond, Phase II Year 2023 to finance KUBL All Green Sector projects have positive environmental impacts, as per the indicators predefined by Bank BRI. These
projects in accordance with Financial Services Authority (OJK) Regulation No. 60/POJK.04/2017. The proceeds obtained are indicators are obtained through a consistent identification and calculation process in accordance with established best
intended for the refinancing of several projects already present in BRI's financing portfolio that deliver environmental and practices. Projects financed through the issuance of BRI Green Bond Phase II 2023 comply with OJK Regulation No. 60/
social benefits. These projects include: POJK.04/2017 and contribute to the achievement of the Sustainable Development Goals ("SDGs").
The following is a summary of environmental benefits in 2023 from projects financed by the proceeds of the issuance of
BRI Green Bond Phase II 2023:
Percentage
KUBL Green Activities Project Types Allocation of Project Value (in Rupiah)
Proceeds
Green Category 80.59% 4,912,338,469,291
Financing Investment in Oil Palm Land with
Renewable Energy Hydropower Plant 22.84% 1,392,177,558,185 Indicators Hydropower Plant Environmentally Friendly and Sustainable
199 Production Processes
Management of Biodiversity Financing Investment 57.75% 3,520,160,911,106
and Sustainable Land Use in Oil Palm Land
Renewable Energy Generated 1,134,272 MWh N/A
with Environmentally
Friendly and Avoidable GHG Emissions 998,670 ton CO2e N/A
Sustainable
Production Processes Possessing environmental certifications as N/A Having ISPO or RSPO certification
MSME (Non-Green) 19.41% 1,182,919,283,778 required for sustainable purposes within
the respective industry
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Medium Term Notes Bank BRI Year 2022
01. Introduction 03. Summary of the Framework
Since its establishment in 1895, PT Bank Rakyat Indonesia (Persero) Tbk ("Bank BRI") has been a key driver of the As stated in the Use of Proceeds section of the Information Memorandum for the Medium Term Notes Bank BRI 2022, the
Indonesian economy, particularly in the micro, small, and medium-sized enterprise (MSME) segment. BRI continues to proceeds from the issuance of these securities are allocated for inclusive financing as defined in Bank Indonesia Regulation
contribute to improving the welfare of the community by supporting government policies to ensure financial literacy, Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia
especially financial inclusion, in order to achieve social and economic resilience. BRI's commitment to this is reflected in Commercial Banks, and Sharia Business Units, as well as Regulation Number 24/3/PBI/2022 amending Bank Indonesia
its vision for 2025 to become "The Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion." Regulation Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios for Conventional Commercial
Providing services to communities that are not yet fully digitized, especially in the three special 3T areas (Frontier, Banks, Sharia Commercial Banks, and Sharia Business Units, and Member of the Board of Governors Regulation
Outermost, and Deprived), requiring special attention to enhance financial literacy, is one of the strategies consistently Number 24/6/PADG/2022 concerning the Implementation Regulation for Macroprudential Inclusive Financing Ratios for
pursued by BRI. Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units, in accordance with prevailing laws
and regulations. Inclusive financing refers to the provision of funds by the bank to MSMEs, MSME Corporations, and/or
As a manifestation of BRI's role in developing sustainable financial practices, BRI has launched financing policies considering MSME Cooperatives in both local and foreign currencies.
Environmental, Social, and Governance (ESG) aspects. In order to promote financial inclusion, BRI strives to bring financial
services closer to all layers of society. BRI currently has 627 thousand BRI-Link agents spread across more than 58 thousand Reporting
villages.
200 Allocation Reporting
With a focus on financial inclusion and new sources of growth, BRI completed the establishment of the Ultra Micro (UMi) BRI reports the allocation of proceeds periodically, at least once a year, within one year after the issuance accompanied by a
holding in 2021. Its aim is to provide access to financial services to micro and ultra-micro communities in Indonesia. The review report by external experts who are competent in their fields.
ultra-micro holding was formed as an effort to provide sustainable and integrated services to all Indonesian citizens.
Impact Reporting
BRI issues periodic reports on the impact of projects/assets financed to the extent that it can be practically calculated and
measured practically according to the review of external experts who are competent in the field.
02. Issuance Details
In 2022, BRI issued the Bank BRI Medium Term Notes for the year 2022 with an emission value of Rp 5 trillion, and all
proceeds were utilized for disbursing financing to the micro and ultra-micro segments.
Summary of Bond Transactions
Name Bank BRI Medium Term Notes Year 2022
Value RP5 Trillion
Series Tenor Listing Date Due Date Coupon Value
A 2 years November 24, 2022 November 24, 2024 6.60% Rp2.0 Trillion
B 3 years November 24, 2022 November 24, 2025 6.98% Rp3.0 Trillion
Rating idAAA (Pefindo)
Listing Indonesia Stock Exchange
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04. Allocation Report 05.Impact
As of the reporting period on December 31, 2022, BRI has allocated 100% of the proceeds from the issuance of the Medium Based on the categories of inclusive financing stipulated in Bank Indonesia Regulation Number 23/13/PBI/2021 concerning
Term Notes Bank BRI 2022. The funds obtained are designated for inclusive financing, as categorized in Bank Indonesia Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia
Regulation Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios for Conventional Commercial Business Units, and Bank Indonesia Regulation Number 24/3/PBI/2022 concerning Amendments to Bank Indonesia
Banks, Sharia Commercial Banks, and Sharia Business Units, and Regulation Number 24/3/PBI/2022 amending Bank Regulation Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios for Conventional Commercial
Indonesia Regulation Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios for Conventional Banks, Sharia Commercial Banks, and Sharia Business Units, the issuance of Bank BRI's Medium Term Notes in 2022 has
Commercial Banks, Sharia Commercial Banks, and Sharia Business Units. The proceeds amounting to Rp 5 trillion are social impacts based on eligible sectors, namely:
utilized for disbursing bank financing in the micro and ultra-micro business segments in November 2023.
The allocation details are as follows: Social Categories
Social Category
Eligible Sectors Alignment with Brief Description & Impact Indicators
(Rp Billion)
SDGs
3.203
Employee Generation Creating job opportunities in the MSME segment, estimated at 26,000 jobs spread across
(Kupedes Credit- Indonesia.
201 1.797 Micro Segment)
Kupedes by Region Kupedes by Sector
8% 2% 10% 12%
2% 9%
6%
Employment Generation Socioeconomic advancement and
empowerment 4%
The allocation for the Social Category is 100%
or Rp5 Trillion. Projects financed fall under the 70% 77%
categories of Employment Generation and
Socioeconomic advancement and empowerment. Sumatera Bali, NTT Fishery Retail Trade
Java Sulawesi Agriculture Health & Social Services
Kalimantan Papua
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06. Conclusion
The Medium Term Notes report demonstrates the realization of BRI's commitment to enhancing sustainable financial
Eligible Sectors Alignment with Brief Description & Impact Indicators
SDGs inclusion in Indonesia, aligning with the goals of the Government and Regulators. BRI will strengthen collaboration with all
Socioeconomic The KUR program is intended to support the development of non-bankable micro enterprises relevant stakeholders in the allocation, utilization, and monitoring processes of the proceeds from the issuance of Medium
advancement and and is estimated to create more than 132,000 jobs in various parts of Indonesia. regions of Term Notes to continuously meet the criteria established in applicable regulations and standards.
empowerment Indonesia.
(KUR Micro-Micro
Segment)
The issuance of Medium Term Notes is one of BRI's endeavors to realize the vision of becoming the Champion of Financial
Kupedes by Region Kupedes by Sector
Inclusion. BRI has also successfully attracted investor interest in the securities used for financial inclusion purposes.
1% 10% 1% 14%
3% 5% 16%
3% BRI has obtained a review from external experts (SDGs-Hub University of Indonesia), stating that all proceeds from this
issuance are exclusively used for inclusive financing and have a positive social impact on the development of community
welfare.
202
78% 69%
Sumatera Bali, NTT Fishery Retail Trade
Java Sulawesi Agriculture Health & Social Services
Kalimantan Papua
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Appendix I
External Report Review
SDGs Hub Universitas Indonesia is the External Review chosen to review the 2022 Bank BRI Medium Term Notes Report to level of education and literacy, (c) level of social inequality in terms of income, gender, and access for marginalized
ensure the suitability of the use of funds in the Information Memorandum, which includes several supporting data related groups, (d) food security, (e) community participation, (f ) security and social justice.
to the issuance of Bank BRI Medium Term Notes. External Reviewers have relevant experience and diploma competencies
in social and environmental activities (in attachment I).
Jakarta, January 19st, 2024
Management Responsibilities
Management's responsibility for preparing and presenting the Bank BRI Report 2023 Medium Term Notes annual report is
under the Bank BRI Medium Term Notes Memorandum Information. SDGs HUB UI Coordinator SDGs HUB UI Advisor
External Responsibilities Review
The External Review's responsibility is to review the 2022 Bank BRI Medium Term Notes annual report and several other
supporting documents according to the use or distribution of the 2022 Bank BRI Medium Term Notes (MTN) proceeds
with an issuance value of IDR 5 trillion, and all proceeds are used for financing distribution to the micro and ultra-micro Dr. Triatko Nurlambang, MA Dr. Sri Mariati, MSi.
203 segments. Since 1 June 2020 with POJK 30/2019, MTN issuance must be submitted to the OJK. Based on this, our review
includes compliance with the implementation of what is written in the Information Memorandum provided. Funds from
the issuance of the 2022 Bank BRI MTN have allocated 100% of the funds from the issuance of the 2022 Bank BRI Medium
Term Notes, namely Series A, amounting to 2 trillion Rupiah, and Series B, amounting to 3 trillion Rupiah, and there are no
changes to the projects financed. We only conducted a review of the social and environmental impacts contained in the
annual Medium Term Notes Bank BRI Report 2023 report prepared by the Team at Bank BRI.
Review results
Based on the review that has been done, it can be concluded:
1) The selection of sectors for the distribution of funds resulting from the publication of the 2022 Bank BRI Medium Term
Notes is under the Information Memorandum.
2) 100% of the funds resulting from the publication of the 2022 Bank BRI Medium Term Notes Report have not changed
from the funds that have been allocated to finance the two sectors that have been approve.
3) In the Employment Generation sector, which has been funded at 35.94% through the new financing mechanism, the
social and environmental impacts have not yet been calculated. The calculation can use standard methods such as
Social Return on Investment (SROI), Poverty and Social Impact Analysis (PSIA), Comparative Analysis, Cost Benefit
Analysis, or other analytical methods to calculate social impacts under existing best practices. Even though it has created
jobs in the MSME segment with an estimated 26,000 jobs spread across Indonesia through the Kupedes Credit-Micro
Segment, the social impact needs to be taken into account.
4) In the socioeconomic advancement and development sector (Micro KUR-Micro Segment), with a new financing
mechanism of 64.06%, there is no recorded impact calculation, even though it has created more than 132,000 jobs in
various regions in Indonesia. Several things can be used as indicators, such as: (a) Community welfare and health, (b)
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Appendix II
Utilization of Proceeds from the Issuance of Bank BRI Medium Term Notes 2022
Proceeds Flow Sector (Eligible Category) Estimated Social/Environmental Benefits
Employment Generation Creating jobs in the MSME segment, estimated at 26,000 jobs distributed across
BRI has allocated 100% of the proceeds from the issuance of Bank BRI Medium Term Notes 2022. The proceeds obtained various regions in Indonesia.
are designated for inclusive financing as categorized in Bank Indonesia Regulation Number 23/13/PBI/2021 regarding Socioeconomic Advancement and The People's Business Credit (KUR) program is intended to support the
Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Empowerment development of non-bankable Micro businesses and is estimated to create more
Business Units, and Bank Indonesia Regulation Number 24/3/PBI/2022 amending Bank Indonesia Regulation Number than 132,000 jobs in various regions of Indonesia.
23/13/PBI/2021 regarding Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia
Commercial Banks, and Sharia Business Units. The proceeds of Rp5 trillion are utilized for the disbursement of bank
financing in the micro and ultra-micro business segments in November 2023. The allocation details are as follows:
Proceeds Allocation
Sector (Eligible Category) Loan Type Allocation Percentage
(Rp Billion)
204
Employment Generation New Financing for 1,797 35.94%
November 2022
Socioeconomic Advancement New Financing for 3,203 64.06%
and Empowerment November 2022
Environmental Benefits of Financed Projects
ased on the inclusive financing categories outlined in Bank Indonesia Regulation Number 23/13/PBI/2021 regarding
Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia
Business Units, and Bank Indonesia Regulation Number 24/3/PBI/2022 amending Bank Indonesia Regulation Number
23/13/PBI/2021 regarding Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia
Commercial Banks, and Sharia Business Units, the issuance of Bank BRI Medium Term Notes 2022 has social impacts
based on eligible sectors, namely:
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Bank BRI Subordinated Bonds IV Year 2023
01. Introduction 03.Summary of the Framework
PT Bank Rakyat Indonesia (Persero) Tbk was established in 1895 and has consistently been a key driver of Indonesia's In accordance with the designated use of funds outlined in the Prospectus for Bank BRI's Subordinated Bonds IV 2023,
economy, especially in the micro, small, and medium-sized enterprises (MSMEs) segment. BRI continues to strive to be at the proceeds from the issuance of these securities are entirely earmarked specifically for Inclusive Financing. This includes
the forefront of improving societal well-being by supporting government policies related to increasing financial literacy to financing for MSMEs, MSME Corporations, and/or Low-Income Individuals (PBR), in accordance with Bank Indonesia
achieve national financial inclusion. BRI's dedication to the MSME segment is reflected in its 2025 vision to become "The Regulation No. 23/13/PBI/2021 regarding Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks,
Most Valuable Banking Group in Southeast Asia and Champion of Financial Inclusion." Sharia Commercial Banks, and Sharia Business Units.
In developing sustainable financial practices, BRI is committed to supporting the financial needs of the community through Inclusive Financing refers to the provision of funds by the Bank for MSMEs, MSME Corporations, and/or Low-Income
BRI-Link Agents spread across Indonesia, especially in the 3T regions (Frontier, Outermost, and Deprived). The role of Individuals (PBR) in both local currency and foreign currency.
BRI-Link Agents has become increasingly significant in providing access and formal financial services, with BRI having 740
thousand agents in over 58 thousand villages as of the end of December 2023.
Reporting
To promote financial inclusion and enhance the integration of financial services for the public, BRI is developing a hybrid
bank, combining digitalization in banking while continuing to provide conventional services to bring financial services Allocation Reporting
205 closer to all segments of society. This strategy further strengthens the Ultra Mikro holding formed to improve community BRI reports the allocation of proceeds periodically, at least once a year, within one year after the issuance by external
access in remote areas to sustainable and integrated banking products. experts.
Impact Reporting
BRI issues periodic reports on the impact of projects/assets financed to the extent that it can be calculated and measured
02.Issuance Details practically according to the review of external experts.
In 2023, BRI issued Bank BRI Subordinated Bond IV Year 2023 with an issuance value of Rp 500 billion, and all proceeds are
used for financing distribution to the micro and ultra-micro segments.
Summary of Bond Transactions
Name Bank BRI Subordinated Bonds IV Year 2023
Value Rp500 Billion
Series Tenor Listing Date Due Date Coupon Value
A 5 Year July 6, 2023 July 6, 2028 6.45% Rp500 Billion
Rating idAA (Pefindo)
Listing Indonesia Stock Exchange
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04. Allocation Report 05.Impact
As of the reporting period on December 31, 2023, BRI has allocated 100% of the proceeds from the issuance of Bank BRI Based on the category of inclusive financing, such as financing for MSMEs, MSME Corporations, and/or Low-Income
Subordinated Bonds IV, 2023. The obtained proceeds are designated for Inclusive Financing, following the provisions of Individuals (PBR), in accordance with Bank Indonesia Regulation No. 23/13/PBI/2021, the issuance of Bank BRI Subordinated
Regulation No. 23/13/PBI/2021 on Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia Bonds IV, 2023 has social impacts aligned with eligible sectors, namely:
Commercial Banks, and Sharia Business Units. The allocation details are as follows:
Social Categories
Fund Allocation Fund Allocation Eligible Sectors Alignment with Brief Description & Impact Indicators
Eligible Category Loan Type SDGs
(Rp Billion) Portion
Employee Creating job opportunities in the MSME segment, estimated at 3,700 jobs spread across
Employment Generation New Financing for the period of July 2023 414.72 82.94%
Generation Indonesia.
(Kupedes Credit-
Socioeconomic advancement and New Financing for the period of July 2023 85.38 17.06% Micro Segment)
empowerment
Kupedes
Kupedes
Berdasarkan
by Region
Wilayah Kupedes
Kupedes
Berdasarkan
by Sector
Sektor
2%
206 13% 17% 18%
24%
Social Category (Rp Billion)
9% 1%
414.72
4%
48% 64%
414.72
Sumatera Bali, NTT Agriculture Retail Trade
Jawa
Java Sulawesi Fishery Health & Social Services
Kalimantan Papua
Employment Generation Socioeconomic advancement and
empowerment
The allocation for the Social Category is 100%
or Rp500 Billion. Projects financed fall under
the categories of Employment Generation and
Socioeconomic advancement and empowerment.
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06.Conclusion
BRI Subordinated Bonds 2023 Report is a manifestation of BRI's commitment to enhancing sustainable financial inclusion
Eligible Sectors Alignment with Brief Description & Impact Indicators
SDGs in Indonesia, aligning with the goals of the Government and Regulators. BRI will strengthen collaboration with all relevant
Socioeconomic The KUR program is intended to support the development of non-bankable micro enterprises stakeholders in the allocation, utilization, and monitoring processes of the proceeds from the Subordinated Bonds issuance,
advancement and and is estimated to create more than 1,300 jobs in various parts of Indonesia. regions of
ensuring continued adherence to established criteria in regulations and applicable standards.
empowerment (KUR Indonesia.
Micro-Micro
The issuance of Subordinated Bonds, besides fulfilling BRI's supplementary capital requirements, is also an effort by BRI to
Kupedes by Region Kupedes by Sector
realize its vision of becoming "The Most Valuable Banking Group in Southeast Asia & Champion of Financial Inclusion." BRI
1% has successfully attracted investor interest in the BRI Subordinated Bonds, evident from the oversubscription in the book
11%
23% 21% 25% building process, reaching 1.77 times.
10%
BRI has received a review from external experts (SDGs-Hub Universitas Indonesia), stating that the entire proceeds
5% 2%
from this issuance are exclusively used for inclusive financing and have positive social impacts on the development of
community welfare.
207
50% 52%
Sumatera Bali, NTT Agriculture Retail Trade
Java Sulawesi Fishery Health & Social Services
Kalimantan Papua
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Appendix I
External Report Review
SDGs Hub University of Indonesia, as the External Reviewer chosen to review the 2023 Bank BRI Subordinated Bonds 4) In the socioeconomic advancement and development sector (Micro KUR-Micro Segment), with a new financing
IV Report to ensure the suitability of the use of funds in the Prospectus, which includes several supporting data related mechanism of 17.06%, there is no recorded impact calculation, even though it has created more than 1300 jobs in various
to the issuance of 2023 Bank BRI Subordinated Bonds IV. The External Reviewer has relevant experience and diploma regions in Indonesia. Several things can be used as indicators, such as (a) Community welfare and health, (b) level of
competencies in social and environmental activities (attachment I). education and literacy, (c) level of social inequality in terms of income, gender, and access for marginalized groups, (d)
food security, (e) community participation, (f ) security and social justice.
Management Responsibilities
Management's responsibility for preparing and presenting the 2023 Bank BRI Subordinated Bonds IV annual report is in Jakarta, January 19st , 2024
accordance with the Bank BRI Subordination IV Bond Prospectus.
External Responsibilities Review
The responsibility of the External Review is to review the annual report of the 2023 Bank BRI Subordinated Bonds IV Report
and several other supporting documents according to the funds obtained, which are intended for inclusive financing. SDGs HUB UI Coordinator SDGs HUB UI Advisor
Inclusive financing refers to provisions Number 23/13/PBI/2021 concerning Macroprudential Inclusive Financing Ratios
208 for Conventional General Banks, Sharia Commercial Banks, and Sharia Business Units. Inclusive financing is the provision
of funds provided by the Bank for MSMEs, MSME Corporations, and/or PBR in Rupiah and Foreign Currency. Our review
includes compliance with the implementation as written in the Prospectus. Funds from the issuance of BRI have allocated
100% of the proceeds from the issuance of 2023 Bank BRI Subordinated Bonds IV, and there are no changes to the projects Dr. Triatko Nurlambang, MA Dr. Sri Mariati, MSi.
financed. We only reviewed the social and environmental impacts in the 2023 Bank BRI Subordinated Bonds IV annual
report prepared by the Team at Bank BRI.
Review results
Based on the review that has been done, it can be concluded:
1) The selection of sectors for distribution of funds from the issuance of 2023 Bank BRI Subordinated Bonds IV Report is
under the Prospectus.
2) 100% of the proceeds from the issuance of 2023 Bank BRI Subordinated Bonds IV Report have stayed the same from the
funds that have been allocated to finance the two approved sectors.
3) The Employment Generation sector, which has been funded by 82.94% through a new financing mechanism, still needs
to calculate its social and environmental impacts. Standard methods can be used, such as Social Return on Investment
(SROI), Poverty and Social Impact Analysis (PSIA), Comparative Analysis, Cost Benefit Analysis, or other analytical
methods to calculate social impacts by existing best practices. Even though it has created jobs in the MSME segment
with an estimated 3700 jobs spread across Indonesia, the social impact needs to be considered.
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Appendix II
Usage of Proceeds from the Issuance of Bank BRI Subordinated Bonds 2023
Proceeds Flow Sector (Eligible Category) Estimated Social/Environmental Benefits
Employment Generation Creating job opportunities in the MSME segment, estimated at 3,700 jobs spread
BRI has allocated 100% of the proceeds from the issuance of Subordinated Bonds IV Bank BRI 2023. The proceeds obtained across Indonesia.
are designated for inclusive financing in accordance with the provisions of Regulation Number 23/13/PBI/2021 regarding Socioeconomic Advancement and The People's Business Credit (KUR) program is dedicated to supporting the
Macroprudential Inclusive Financing Ratios for Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Empowerment development of non-bankable Micro businesses and is estimated to create more
Business Units. Inclusive financing involves providing proceeds by the Bank for MSMEs, MSME Corporations, and/or Low- than 1,300 jobs in various regions of Indonesia.
Income Individuals in both Rupiah and Foreign Currency. The detailed allocation is as follows:
Proceeds Allocation
Sector (Eligible Category) Loan Type Allocation Percentage
(Rp Billion)
Employment Generation New Financing for 414.72 82.94%
July 2023
209 Socioeconomic Advancement New Financing for 85.38 17.06%
and Empowerment July 2023
Environmental Benefits of Financed Projects
Based on inclusive financing categories such as financing for MSMEs, MSME Corporations, and/or Low-Income Individuals
(PBR) according to Bank Indonesia Regulation No. 23/13/PBI/2021, the issuance of
Subordinated Bonds IV Bank BRI 2023 has corresponding social impacts based on eligible sectors:
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Independent Assurance Statement [2-5] [G.1]
INDEPENDENT ASSURANCE STATEMENT
PT. Bank Rakyat Indonesia (Persero) Tbk
Sustainability Report 2023
Statement No : 02/IAS/CBC/I/2024
Type 2, Moderate Level
Scope of Engagement in Assurance
CBC Global Indonesia (“CBC Global Indonesia”, “us” or “we”) were commissioned by PT Bank Rakyat Indonesia (Persero) Tbk (“bank
BRI”) with the objective to provide assurance of bank BRI’s 2023 Sustainability Report (the “Report”) in relation with accordance to GRI
Sustainability Reporting Standards (GRI Universal Standards and GRI-G4 FS), POJK No.51/POJK.03/2017, SEOJK
No.16/SEOJK.04/2021, SASB, SUSBA, TCFD, and the adherence to AA1000 Accountability Principles (2018) with assurance over the
Subject Matter presented in the Report, for the reporting year ended 31st December 2023. This statement is intended to be used by
210 stakeholders & management of bank BRI.
The scope and limitation of our work is restricted to the following areas:
1. Subject Matters
- Financial Inclusion and Digitalization
- Data Security and Privacy
- Sustainability Governance
- Human Resources and Human Rights Management
- Emission and Climate Change Management
- Responsible Investment and Financing
- Community Relations
2. AA1000 Principles (2018)
Our assurance engagement was planned and performed to meet the requirements of a Type 2 “moderate level” of assurance as defined
by AA1000 Assurance Standard (AA1000AS) v3 to evaluate the nature and extent of bank BRI’s adherence to all four AA1000
AccountAbility Principles (2018): Inclusivity, Materiality, Responsiveness and Impact, where sufficient evidence has been obtained to
support our statement such that the risk of our conclusion being in error is reduced, but not reduced to very low, but not zero.
We have not performed any work, and do not express any conclusions, on any other information outside of the Subject Matter
that may be published in the Report or on bank BRI’s website for the current reporting period or for previous periods and assumed that the
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financial data and figures provided by bank BRI has been audited by independent parties therefore, presentation of financial data and
figures in the report NOT within the scope of assurance.
Responsibilities of the Management of bank BRI
The Management of bank BRI is responsible for the preparation of the Subject Matter in accordance with the Reporting Criteria. The
responsibility includes designing, implementing and maintaining internal control relevant to the preparation of Subject Matter information
that is free from material misstatement, whether due to fraud or error.
Responsibilities, Competencies and Independency of CBC Global Indonesia
Our responsibility is to plan and perform our work to obtain assurance over whether the Subject Matter information has been prepared in
accordance with the GRI Universal Standard, GRI-G4 FS, POJK No.51/POJK.03/2017, SEOJK No.16/SEOJK.04/2021, SASB, SUSBA,
TCFD and to report to bank BRI in the form of an independent assurance conclusion, based on the work performed and the review progress.
We must also express a conclusion over whether the Report adheres to the AA1000 Principles (2018) and comment on the nature and
211
extent of each Principle individually. All this engagement was carried out by an independent team of sustainability assurance professionals
whose already obtained the Certified Sustainability Report Assurer (CSRA) and any relevant certifications.
CBC Global Indonesia is bounded by rules of conduct and professional practice relating to independence and quality overseen by
AccountAbility (www. accountability.org/standards/licensing/ AA1000 as licensed-providers) and has established policies and procedures
that are designed to ensure that our team maintain independence and integrity. We had no financial interest in the operation of bank BRI
other than for the assessment and assurance of this report. We don’t accept or assume responsibility (legal or otherwise) or accept liability
for or in connection with any other purpose for which it may be used, or to any person by whom the independent assurance opinion
statement may be read.
Methodology
We conduct the following assurance procedures and activities:
• Pre-engagement to ensure the independence and impartiality of the assurance team.
• Kick-off meeting and initial analysis of the report draft.
• Review, assess and evidence the reliability and quality of sustainability performance and disclosed information as specified in the
Report content for the reporting period of 1st of January up to 31st of December 2023.
• Evaluate the adherence of report content, disclosure and presentation against the criteria of standard, principles, and indicators
using references from AA1000AS v3, AA1000AP (2018) (AccountAbility Principles), GRI Universal Standards and GRI G4
Financial Services Sector Disclosure (GRI-G4 FS), POJK No.51/POJK.03/2017, SEOJK No.16/SEOJK.04/2021, SASB, and
TCFD. Adopt IPCC Guidelines for calculation methodology of energy used and emission.
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• Conduct in-depth interview on compliance, governance, risk management, business continuity management topics with the
representatives of the relevant functions/divisions of the bank BRI concerning sustainability strategy and policies for material issues
and the implementation of these across the bank BRI’s business.
• Obtain an understanding of internal control relevant to the engagement in order to design procedures that are appropriate in the
sustainability program and strategy.
• Obtained an understanding of how the identified sustainability information is gathered, collated and aggregated internally and
enquiries of management of bank BRI to gain an understanding of the processes for determining material issues for key stakeholder
groups, internally and externally.
• Performed limited substantive testing, on a sample basis, of the sustainability information identified, to verify the assumptions,
estimations and computations bank BRI made and to check that data had been appropriately measured, recorded, collated and
reported.
• Compare the subject matter presented in the report to corresponding information in the relevant underlying sources on a sample
212 basis.
• Evaluate the subject matter presented in the report to determine whether they are in line with our overall knowledge of, and
experience with, the sustainability performance of the group.
• Discuss and analysis data and reports with management of bank BRI and data contributor to determine whether there are any
material misstatement of fact or material inconsistencies based on our understanding obtained as part of our assurance engagement.
Finding and Conclusions
From the assurance program and the evidence, we have obtained, a detailed review against the AA1000 AccountAbility Principles of
Inclusivity, Materiality, Responsiveness and Impact, the GRI Universal Standards, GRI-G4 FS, POJK No.51/POJK.03/2017, SEOJK
No.16/SEOJK.04/2021, SASB, and TCFD is set out below:
INCLUSIVITY
An assessment was made to investigate the engagement of all key stakeholders within the bank BRI. The presentation of stakeholder’s
inclusivity in the report is fairly identified and covers all bank BRI’s inclusivity material issues. The stakeholder’s engagement has been
held through communication based on various methods and approaches with the contributions of all key stakeholders includes their internal
and external stakeholders to develop an accountable and strategic sustainability topic.
MATERIALITY
An assessment was made to investigate the material information disclosed by the bank BRI. The report fairly covers the bank BRI’s material
issues by using materiality matrix and boundary mapping through the stakeholder’s inclusivity process. The materiality topics shows in the
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report provide a fair and sufficient information and aligned with risk management within the company which enables its stakeholders to
make a professional judgment about bank BRI’s performance and management.
RESPONSIVENESS
An assessment was made to investigate the transparency act of the bank BRI on material sustainability topics and their related impacts.
The report covers bank BRI’s responsiveness issues. All the information related to the responses from management to its stakeholder’s
inputs and complaints have been included in the report and any others company’s mechanisms transparently and appropriateness the
responses to a strategic stakeholder engagement management. Besides, the engagement with the Indonesia Sustainable Finance (IKBI)
indicated the bank BRI’s commitment towards sustainability issues.
IMPACT
The Report content discloses data and information indicating the impacts of the bank BRI’s decisions, activities, and services on the
economy, environment, and society. An assessment was made to investigate the practice of the bank BRI to monitor, measure and be
213 accountable for how their actions affect their broader ecosystems. In overall, disclosures of impacts in the Report content are rather balance
and adequate with both metric and qualitative information. However, the Company still needs to integrate comprehensively the identified
impacts into key management processes to conduct an impact assessment on the other stakeholders, including its organizational strategy,
governance, goals, objectives, and operations.
GRI STANDARDS PRINCIPLES
The Report has prepared in accordance with GRI Universal Standards and GRI-G4 FS, where all disclosure of each material topic is
presented in the Report. The disclosures of management approach for each material topic in general is fairly disclosed. The Management
of bank BRI has applied the principles for defining the report’s quality (balance, comparability, accuracy, timeliness, clarity, and reliability)
and the principles for defining the report’s content (stakeholder inclusiveness, sustainability context, materiality, and completeness) and
supporting documents were adequately presented during the assurance program.
Adherence to POJK No.51/POJK.03/2017, SEOJK No.16/SEOJK.04/2021, SASB, SUSBA and TCFD
The report has followed or complied to all POJK No.51/POJK.03/2017, SEOJK No.16/SEOJK.04/2021, SASB, SUSBA, and TCFD reporting
guidelines. In terms of the adherence against the regulations, bank BRI has developed more policies and initiatives on environment
concerns. The bank BRI is advised to improve their risk and impact analysis on sustainability and also improve the assessment on high-
risk lending sectors with negative impacts towards social and environment issues. Besides, the bank BRI should also present the
sustainability matrix and target more comprehensively.
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Opinion Statement
Our professional and certified team of sustainability report assurer has assured this report in accordance with the AA1000AP (2018),
AA1000AS v3 and GRI Standards. From the review progress, we conclude that the bank BRI’s Sustainability Report 2023 provides a fair
view of the all the bank BRI’s programs and performances during 2023. The extent to which the GRI Standards has been applied in the
Report and conclude this report has been prepared in accordance with GRI Universal Standards.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. We conclude that the
data in 2023 for all material topics performance indicators are fairly represented and there is nothing has come to our attention that would
lead us to believe that the subject matter in the Report for the year ended 31 December 2023, in all material respects, is not prepared in
accordance with the applicable criteria.
Recommendations
Based on the examination of 2023 fiscal year, BRI has conducted internal calculation of its greenhouse gas (GHG) emissions, covering
214
scope 1, 2, and 3 inventories, using established emission factors. BRI has also initiated the development of an automation system /
dashboard related to GHG emissions. In the upcoming period, it is expected that the system implementation in the GHG emissions
calculation process can be enhanced to improve the reliability of calculation results and increase confidence in decision-making regarding
GHG emissions.
For and on behalf of:
Jakarta, January 31st, 2024
Dr. Ari Purwanti, Ak., CA., CSRA
Operational Manager
PT CBC Global Indonesia
The Icon Horizon Broadway Blok M.5 No.3 BSD City, Tangerang, Indonesia 15345
Tel: (62)(21) 87780058
Email: services@cbcglobalindonesia.com
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Feedback Form [G.2] [G.3]
The 2023 Sustainability Report of PT Bank Rakyat Indonesia (Persero) Tbk provides an overview of financial performance and sustainability. The Company did not record any feedback to the previous year's Sustainability Report.
1. This report is easy to understand
Disagree Neutral Agree
2. Laporan ini sudah menggambarkan informasi aspek material Perusahaan, baik dari sisi positif dan negatif
TidDisagree Neutral Agree
3. Please rank the importance of the following material topics:
(Score 1=highest priority to 7=least priority)
y Financial Inclusion and Digitalization ( )
y Sustainability Governance ( )
y Data Security and Privacy ( )
y Responsible Investments and Financing ( )
y Emission and Climate Change Management ( )
215 y Human Resources and Human Rights Management ( )
y Community Relations ( )
4. Please provide your suggestions/comments on this report.
Full Name
Occupation
Name of Institution/Company
Stakeholder Category
Investor Customer Employee Community Government Other
Please send the feedback form back to
Hendy Bernadi
Head of Corporate Secretariat Division
BRI I Building
Jl. Jenderal Sudirman No. 44-46
Jakarta 10210, Indonesia
Phone : +6221 575 1966
Faksimili : +6221 570 0916
*In previous reports, BRI noted that no input was received, leading to the absence of follow-up actions [G.3]
Page 216
PT Bank Rakyat Indonesia (Persero) Tbk. Gedung BRI I Jl. Jenderal Sudirman No. 44−46 Jakarta 10210, Indonesia Tel. : (62−21) 251 0244, 251 0254 Fax. : (62−21) 250 0065, 250 0077 Website : www.bri.co.id
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Financial Services Authority
p.4 ×9
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p.6 ×2
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p.7
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p.13
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Minister of State-Owned Enterprises SE-
p.17 ×3
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p.17
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Bank Sampah Saguling
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PT Multi Certification Indonesia
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Indonesia (Persero) Tbk
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PT Selaras Logistik Indonesia
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PT Cardig
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Prima Karya Sarana Rakyat Indonesia (Persero) Tbk
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PT Garuda
p.40
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Bank Syariah Mandiri
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Bank Indonesia
p.45 ×2
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p.46
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p.48 ×2
unresolved
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Minister of State-Owned Enterprises Number SR-
p.48
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p.49 ×3
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