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       Building Growth
through Business Strengthening

               2023 ANNUAL REPORT
       PT Bank Pembangunan Daerah Jawa Timur Tbk.
Page 2

          
Page 3
                            12
                            12
                                 34
                                      34
                                           45
                                                68                                                    Building Growth
                                                                                                      through Business
                                                     12
                                                                34
                                                                       45
                                                      VALID

                                                     00 /0    FROM


                                                                0     EXPIR              68
                                                                     00 /0    ES
                                                                                   END

                                                                                   0




                                                                                                      Strengthening
          Building Growth
   through Business Strengthening

                  2023 ANNUAL REPORT
          PT Bank Pembangunan Daerah Jawa Timur Tbk.




2023                                                                                          In building the sustainable growth of PT Bank Pembangunan Daerah
                                                                                              Jawa Timur Tbk. (Bank Jatim), Bank Jatim always strives to improve the
Annual Report                                                                                 capabilities of all organs in carrying out their business activities. This was
                                                                                              implemented by increasing business growth, technological innovation,
                                                                                              and efficiency. The Bank’s focus on achieving sustainable business
                                                                                              growth was by implementing various strategies, including changing
                                                                                              business models, repositioning networks, changing organizational
                                                                                              structures, improving human resource (HR) management, and
                                                                                              increasing cyber security. Bank Jatim’s transformation program has
                                                                                              been able to produce targeted performance as demonstrated by an
                                                                                              increase in the Bank’s profits and assets.




                                                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                               2023 Annual Report
                                                                                                                                                                          1
Page 4
Theme
Continuity




                   2022                            2019
               Annual Report                    Annual Report




                   2021                            2020
               Annual Report                    Annual Report




    PT Bank Pembangunan Daerah Jawa Timur Tbk
2   2023 Annual Report
Page 5
2022                    Innovations and investments made by PT Bank Pembangunan Daerah Jawa Timur Tbk (Bank Jatim)
                        by developing JConnect as a Digital Banking Branding in 2021 was implemented in 2022. JConnect
                        applications that had been developed include JConnect Sipandai, JConnect EKMG, JConnect
Modernizing The         Eloan, JConnect Mobile Banking and Jconnect Internet Banking. These various applications
Service to Increase     provided service convenience for the community which in turn had a significant positive impact on
                        business growth in 2022.
Business Growth



2021                    Changes in the marketplace and society require banks to change towards digital banking, or services
                        that are run with the support of Information Technology. Until 2021, PT Bank Pembangunan Daerah
                        Jawa Timur Tbk. had been innovating and investing in technology to remain competitive in the era
Consistent Business     of the industrial revolution 4.0, especially in the current situation of the COVID-19 pandemic and
Development through     the new normal. This was intended to facilitate service to customers, optimize business processes
                        and strengthen IT Security. As a form of Bank Jatim’s commitment to provide banking services
Synergy and Digital     availability, innovation, and ease of access for customers and the public, Bank Jatim proudly
Connectivity            presented “JConnect”, a Digital Banking Branding reflecting Bank Jatim’s digital transformation
                        with the spirit of connecting all needs and easy access to services banking.

                        JConnect was also able to increase the effectiveness of Bank Jatim’s synergy with various partners
                        through digitalbased applications, namely with various Bank Jatim merchants used by educational
                        institutions, local governments, social assistance and hospitals as well as with various digital
                        ecosystems in Indonesia.

                        The synergies and digital connectivity encouraged the implementation of consistent business
                        development. During the current COVID-19 pandemic, digital banking transactions experienced a
                        significant increase. People preferred to do banking transactions through their respective gadgets,
                        without having to come to the bank service office, and it could be done anytime and anywhere in
                        real time online.




2020                    2020 became a tough challenge for the world. The outbreak of COVID-19 affected global economic
                        conditions as a result of outbreak control policies through restrictions on the movement of people
                        and goods implemented by various countries. In line with the global economy, the dynamics of
Facing Challenges,      the national economy throughout 2020 were also affected by the COVID-19 pandemic. Banking
Creating                industry activity throughout 2020 was classified as quite restrained due to weak demand for loan as
                        reflected in the slower performance of loan growth in the banking sector compared to the previous
Opportunities           year, although deposits grew significantly compared to the previous year. This led to a lower bank
                        intermediation performance compared to the previous period.

                        Various global and national economic conditions as well as the banking industry had become
                        a challenge for PT Bank Pembangunan Daerah Jawa Timur Tbk. to optimize the strength they
                        owned. The resilience and relatively high capital adequacy of the Bank as well as the ownership of a
                        captive market and accessibility of government spending in East Java Province was able to capture
                        various opportunities that existed. These various opportunities included the large market share of
                        Bank Jatim, especially civil servants, the high population of millennials as internet and e-commerce
                        users, and the development of supporting infrastructure for economic development in East Java
                        Province which was still the main focus. Optimizing the Company’s strengths had been able to
                        produce the targeted performance. In 2020, the Company was able to increase profits and assets
                        amidst challenging conditions throughout 2020.




2019                    After being able to maximize performance and enhance sustainable synergy towards digital
                        transformation in 2018, Bank Jatim now has the theme “Capturing Opportunities to Provide Added
                        Values towards Sustainable Excellent Performance”. This theme is analogous to the interconnected
Capturing               lines which illustrate the digitalization process of the Bank in each of its operations.
Opportunities to
                        Meanwhile, the red arrow-shaped block represents the commitment of Bank Jatim to achieve
Provide Added           performance growth in a sustainable manner.
Values Towards
Sustainable Excellent
Performance

                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                       2023 Annual Report                3
Page 6
Table of Contents


Performance                                             Report of Directors
Highlights                                              and Board of Commissioners


    Theme Explanation                               1    Report of Directors
    Theme Continuity                                2
                                                         and Board of Commissioners

    Table of Contents                               4    Board of Directors’ Report                           36
    Overview of The Company                         8    Board of Commissioners’ Report                       52
    Milestones                                     10    Responsibility of 2023 Annual Report                 64
    Our Best Contribution                          12

                                                         Company Profile

                                                          Corporate Identity                                  68
    Performance Highlights
                                                          Name and Address of
                                                                                                              69
    Important Achievements 2023                    18     Branch Offices and Sharia Branch Offices

    Summary of Financial Overview                  20     Company Brand                                       71
     Financial Summary and Financial Ratios        20     Company Brief History                               72
     Operations Highlights                         25      Description of Name Change                         73
     Stock Information                             25     Vision, Mission & Corporate Culture                 74
     Corporate Actions                             27      Vision                                             74
     Termination Action While Trading of Stock     27      Mission                                            74
     (Suspension) and/or Removing of Stock
     (Delisting)                                           Review of The Vision and Mission by The Board
                                                                                                              75
                                                           of Commissioners and The Board of Directors
    Bond, Sukuk and/or Convertible Bonds           27
    Information                                            Corporate Culture                                  76

    Other Funding Sources Information              28     Business activities                                 79

    Company Analysis Report                        28      Business Activities According to the Articles of
                                                                                                              79
                                                           Association and Executed
    Important Events in 2023                       29
                                                           Products and Services                              80

                                                          Operational Area                                    94

                                                          Association Membership List                         97

                                                          Organizational Structure                            98




       PT Bank Pembangunan Daerah Jawa Timur Tbk
4      2023 Annual Report
Page 7
Company                                                      Management Discussion and
Profile                                                      Analysis of Bank Performance


 Profile of The Board of Directors                     100    Chronology of Issuance and/or Listing of Other
                                                                                                                 151
                                                              Securities
 Profile of The Board of Commissioners                 109
                                                              Information on Using the Services of Public
 Profile of The Board of Sharia Supervisory            117                                                       152
                                                              Accounting and Public Accounting Firm
 Profile of Executive Officer                          121    Supporting Institutions and/or Professions         152
 Employee Profiles                                     141    Award and Certification                            154
  Number of Employees by Gender                        141    Information Available on the Website               161
  Number of Employees by Position Level                141

  Number of Employees by Range of Age                  141    Management Discussion
  Number of Employees by Education Level               142    and Analysis of Bank Performance
  Number of Employees by Employment Status             142    Economic Review                                    164
 Shareholders Composition                              143      Global Economic Analysis                         164
  Composition of 20 Largest Shareholders               144      National Economic Analysis                       166
  Composition of Shareholders 5% or More               145      Banking Industry Analysis                        168

  Composition of Public Shareholders Less than 5%      146      Bank Jatim’s Position in the Banking Industry
                                                                                                                 170
                                                                Analysis
  Share Ownership of Directors and Board of
                                                       147    Operational Review                                 171
  Commissioners

  Shares Ownership of the Senior Management            148      Bank Strategy                                    171
                                                                Marketing Aspect                                 174
  Classification of Shareholders                       148
                                                                  Marketing Strategy In 2023                     174
 Main and Controlling Shareholders                     148
                                                                  Market Share                                   174
 List of Subsidiaries, Associated Entities and Joint
                                                       148      Operation Review Per Business Segment            177
 Venture Company

 Company Group Structure                               149        Operating Segment                              177

 Information of Bank Business Group                    149        Geographic Segments                            209
                                                              Financial Review                                   211
 Chronology of Share Issuance                          149
                                                                Financial Performance                            211
 Chronology of Issuance and/or Listing of Bond         151




                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                            2023 Annual Report     5
Page 8
Human                                                         Information
Capital                                                       Technology


      Financial Position Report                         211      Maximum Limit For Providing Credit and
                                                                                                                284
                                                                 Providing Large Funds
      Statement of Profit and Loss and Other
                                                        227
      Comprehensive Income                                       Transaction Spot and Derivative Transactions   287
      Cash Flow Report                                  233
    Ability to Pay Debt and Receivable Collectibility   235
                                                               Human Capital
    Fund Interest Rate                                  239
    Quality Analysis of Productive Assets               242    Human Capital Management Strategy                288
    Basic Loan Rate                                     243    Human Capital Management Strategy Policy
                                                                                                                290
    Bank Capital Structure                              250    and Implementation

    Information on Capital and Risk Exposure            251      Recruitment                                    290

    Material Commitments Related to Capital Goods                Competency Development                         292
                                                        264
    Investment
                                                                 Career Development                             296
    Capital Expenditure Investment                      264
                                                                 Performance Assessment                         297
    Commitment and Contingent                           265
                                                                 Remuneration and Long Term Compensation        297
    Information and Material Facts After the
                                                        266
    Accountant’s Report Date                                     Pension Program                                299
    Business Prospects and Future Strategies 2024       266    Employee Engagement Survey                       299
    Achievement of Targets and Future Targets           269    Human Capital Information System                 300
    Policies, Announcements and Payment of
                                                        274    Culture Internalization                          302
    Dividend
    Realization of Use of Public Offering Proceeds      275    Human Capital Management Structure               303

    Material Information Regarding Investment,                 Human Capital Work Plan 2024                     304
    Expansion, Divestment, Merger/Consolation
                                                        275
    Businesses, Acquisitions, Debt / Capital
    Restructuring
    Information on Material Transactions that                  Information Technology
    Contain Conflict of Interest and/or Transactions    275
    with Affiliated Parties
                                                               Information Technology Strategy                  308
    Changes in Legal Regulations and its Impact on
                                                        279    Information Technology Innovation                309
    Banks
    Changes in Accounting Policies                      280    Information Technology Infrastructure            310

    Bank Soundness Level                                281    Information Technology Governance                311

    Business Continuity Information                     281    Information Technology Management Structure      314

    Taxation Aspects                                    282    Information Technology Work Plan                 315

    Response to Changes in Monetary Policy
                                                        283
    Directions




      PT Bank Pembangunan Daerah Jawa Timur Tbk
6     2023 Annual Report
Page 9
Corporate                                                    Corporate Social
Governance                                                   Responsibility


 Corporate Governance                                            Access to Company Information and Data             469
                                                                 Code of Conduct                                    476
 Achievements in Implementing Corporate
                                                       320       Performance-Based Long-Term
 Governance                                                                                                         479
                                                                 Compensation Policy
 Basic For Corporate Governance Implementation         320
                                                                 Whistleblowing System                              481
 Structure and Mechanism of Corporate
                                                       322       Anti Corruption Program                            484
 Governance
  Structure of Company Organs                          322       Management of State Official Wealth Reports
                                                                                                                    487
                                                                 (LHKPN)
  Governance Soft Stucture                             323
                                                                 Total Internal Frauds and Remedies                 488
  Corporate Governance Mechanism                       324
                                                                 Provision of Funding for Social and/or Political
    Shareholders                                       324                                                          489
                                                                 Activities
    General Meeting of Shareholders                    324       Provision of Funds to Related Parties and
                                                                                                                    489
                                                                 Provision of Large Funds
    Board of Directors                                 334
                                                                 Bank Strategic Plan                                489
    Board of Commissioners                             348
                                                                 Share Buyback and Bond Buyback                     489
    Sharia Supervisory Board                           382
                                                                 Transactions Containing Conflicts of Interest      489
    Nomination and Remuneration of the Board of
                                                       386
    Commissioners and Board of Directors                         Internal Disputes                                  490
    Policies on Diversity of Board of
                                                       388       Prevention of Insider Trading                      490
    Commissioners and Board of Directors
                                                                 Transparency of Financial and Nonfinancial
    Transparency of Share Ownership of Directors                                                                    491
                                                       390       Conditions
    and Board of Commissioners
                                                                 Implementation of Sustainable Finance,
    Organs and Committees Under the Board of                                                                        491
                                                       392       Including Implementation of Social and
    Commissioners                                                Environmental Responsibility
    Organ and Committee Under the Board of
                                                       415    Implementation of Public Company
                                                                                                                    491
    Directors                                                 Governance Guidelines
    Implementation of Governance In Provision of              Governance Principles for Banks Issued by The
    Remuneration for Commercial Banks In               444                                                          500
                                                              Basel Committee In Banking Supervision
    Accordance With POJK 45/POJK.03/2015
                                                              Good Corporate Governance Assessment                  500
    Public Accountant                                  448
    Internal Control System                            449
    Risk Management                                    453
                                                              Corporate Social Responsibility
    Compliance Function                                464
    Anti-Money Laundering Program, Prevention of
    Terrorism Funding & Prevention of Funding for      466
                                                              OJK Index                                             505
    The Proliferation of Weapons of Mass Destruction
                                                              Financial Statements                                  526
    Lawsuit                                            467
    Administrative Sanctions Imposed to Companies,
    Members of the Board of Commissioners
                                                       468
    and the Board of Directors by Capital Market
    Authorities and Other Authorities



                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                           2023 Annual Report         7
Page 10
Overview
of The Company




      Total Assets

    Rp
        103,85
                         Trillion




    Established Date                            Business Fields            Number of Office
     August 17, 1961                                Finance                 1 Head Office and
                                                                          1.819 Office Network




Products & Services
                                                                  Deposit Products




                                                                  Consumer Loan




                                                                  Medium and Corporate Loan




    PT Bank Pembangunan Daerah Jawa Timur Tbk
8   2023 Annual Report
Page 11
                  HEAD OFFICE ADDRESS

      JALAN BASUKI RACHMAD 98 – 104,
                     SURABAYA 60271




                                                       Share Ownership

                                               51,13%       Goverment of East Java
                                                            Province
                                               28,35%       38 Pemda District/ City
                                                            Goverment
Number of Employee                             20,52%       Public
4.544 Employees




     Treasury Products             Business Services                    Instituional Services




      Sharia Financing               Sharia Fund                         E-Channel & Other
         Products                 Products & Services                         Services




                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                               2023 Annual Report   9
Page 12
Milestones




                              1961-2014                                            2015-2018




               1961                                                   2015
     Establishment of PT Bank Pembangunan Daerah Djawa      •   Launching of Jatim Priority (Premium Service for
     Timur.                                                     Priority Customers) product, Simpanan Pelajar
                                                                (Simpel) Saving Product, SiUMI Saving & Loan
               1976                                             product (SiUMI Program is dedicated for Micro and
                                                                Small Entrepreneurs), and Siklus Nelayan Saving
                                                                Product.
     Change of Status into Regional Owned Enterprise.       •   Bank Jatim and Indonesian Regional Government
                                                                Rural Banks Association (Perbamida) agreed to sign a
                                                                Memorandum of Understanding (MoU) related to the

               1990
                                                                Linkage Program facility to Rural Banks (BPR).


     Status upgrade to Foreign Exchange Bank.
                                                                      2016

               1999
                                                            •   Launching of Program Loan Agreement
                                                            •   Launching of Mobile Bank Jatim
                                                            •   Launching of Sipandai Product
     Change of status from Regional Owned Enterprise
     (BUMD) to Perseroan Terbatas (Incorporated Company).
                                                                      2017
               2007                                         •   Opening of Batam Branch ;
                                                            •   Launching of New Products, including:
     Establishment of Sharia Business Unit of Bank Jatim        - Yuan Remittance
                                                                - Giro Plus
                                                                - Jatim Indag Card
                                                                - Smile Premium Link
               2012                                             - Jempol Link (Bancassurance in cooperation with
                                                                   PT Asuransi Jiwa Sinarmas MSIG Life.
     Initial Public Offering on July 12, 2012.


                                                                      2018
               2014                                         •   Launching of Smart ID Card program for Civil
                                                                State Apparatus together with Sumenep Regency
     Establishment of 44 Micro Business Units.                  Government
                                                            •   Launching of Revolving Fund Loans (Hulu Hilir
                                                                Agromaritim Loans for Maritime and Fisheries Sector)
                                                            •   Launching of Remittance Transaction
                                                            •   Launching of Virtual Account




         PT Bank Pembangunan Daerah Jawa Timur Tbk
10       2023 Annual Report
Page 13
                       2019-2021                                                 2022




          2019                                                      2022
•   Inauguration and launching of BJTM Connect            •   Launching of the JConnect Invest application with
•   Launching of jatimcode (payment feature for Bank          the initial offering of product SBR011 with a total
    Jatim Mobile Banking through QR Code scan)                offering of 4 retail SBN series throughout 2022.
•   Launching of e-Form Loan Portal                       •   Launching of JConnect Remittance, a remittance
•   Bank Jatim and UINSA jointly broke a MURI record          transaction from Malaysia through a channel (Agent
    in mass academic community’s activation of 5,000          or application) belonging to Bank Jatim’s partners,
    securities accounts                                       namely MTA – Merchantrade Asia.
•   Cooperation with GoPay and Grab                       .
•   Female Volleyball Team achieved hat-trick and
    emerged Champion of Livoli of Main Division.



         2020
•   Launching of the Jatim Code QRIS (Quick Response
    Code Indonesian Standard) as the development of
    Mobile Banking payment features;
•   Launching of loan products to BUMDES (Village
    Owned Enterprises) which is an integral part of the
    East Java Micro Loan;
•   Bank Jatim won various awards, including Top of The
    Top BUMD 2020 and The Most Profitable Regional
    Bank.




         2021
•   Launching of Priority E-Jatim.
•   Continuous digital banking development through
    J-Connect.




•   Expansion of Tax Payment Services through the
    marketplace.




                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                        2023 Annual Report     11
Page 14
Our Best
Contribution




                                                 Having Adequate Digital
                                                 Banking Technology
                                                 Infrastructure to Compete
                                                 with the Industry

                                                 Amid various competitive challenges in the banking industry, such as
                                                 changes in people’s living patterns and increasingly diverse customer
                                                 needs, the banking industry continued to compete in providing
                                                 maximum service to their customers or clients. This was the case with
                                                 Bank Jatim, which over time continued to maintain its existence in
                                                 the banking industry in Indonesia. One of the absolute requirements
                                                 to remain existing and superior in such a tight competitive climate
                                                 was to improve service quality, because only with excellent service,
                                                 customer satisfaction, bank image, and positive financial performance
                                                 can be achieved. For this reason, Bank Jatim continued to innovate
                                                 to strengthen the bank’s position as one of the leading players in the
                                                 national banking industry.


                                                 Bank Jatim continued to provide excellent services, especially
                                                 digitalization through the JConnect service, which continued to bring
                                                 additional features. In 2023, Bank Jatim launched JConnect Pro.
                                                 Through JConnect Pro, people can now open a Bank Jatim account
                                                 online anytime and anywhere without having to come to the bank
                                                 office. Just by filling in their personal data and verifying it with video
                                                 banking, customers can have a Bank Jatim account.




     PT Bank Pembangunan Daerah Jawa Timur Tbk
12   2023 Annual Report
Page 15
Synergy with Various Parties

Bank Jatim contributed to regional economic development           Besides supporting East Java Provincial Government
through synergy with the central and regional governments         programs, the Bank also established an integrated business
in supporting strategic programs and projects for regional        conglomerate with sister companies/East Java MSME Bank and
economic development. Bank Jatim encouraged business              BPR Perbamida. Bank Jatim also strengthened synergy with
performance by supporting the implementation of the East          the East Java High Prosecutor’s Office. Moreover, Bank Jatim
Java Provincial Government’s Nawa Bhakti Satya program as         also established synergies with various parties, including RSU
well as national strategic projects in East Java Province. This   Brimadika for Employee Health Services, Bank NTB Syariah
was implemented through several programs including Jatim          for strengthening Sharia Services, Surabaya State University
Sejahtera, Jatim Harmoni, Jatim Berdaya, Jatim Agro, Jatim        (UNESA) for the Business and Academic Sectors, as well as
Kerja, Jatim Cerdas dan Sehat, and Jatim Amanah.                  synergy with Bank Lampung.




                                                                                                Nawa Bhakti
                                                                                                  Satya
                                                                                                East Java Provincial
                                                                                                   Government




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   2023 Annual Report       13
Page 16
Relatively High Levels
of Bank Capital
                                                                                                                      Rp        CAR

The Capital Adequacy Ratio (CAR) of Bank Jatim for 5 (five)
consecutive years had been at a safe level, namely around
21%. The level of Bank Jatim’s CAR ratio showed that the
bank’s capital structure could balance market risk, credit risk,
and operational risk where the ratio was higher than the BI/OJK

                                                                                                                                21%
minimum adequacy ratio and the Bank’s capital structure had
complied with BI/OJK regulations of 14%. This shows that the
Bank had managed the Bank’s capital well and had sufficient
capital to protect against solvency risks.
                                                                             2019      2020      2021       2022      2023




        Inauguration of Foreign                                            The villages selected as Foreign Exchange Pendulum
        Exchange Producing Village                                         Villages in 2023 are:


                                                                                     Ngindeng Village, Ponorogo
                                                                               1
        In 2023, the Governor of East Java inaugurated the Foreign                   (PT Enha Sentosa Indonesia).
        Exchange Producing Village assisted by Bank Jatim. The
                                                                                     Trayang Village, Nganjuk
        definition of this program is to form a village that has certain       2
                                                                                     (PT Astana Shoga Asia).
        superior commodities, export quality, capable of mobilizing
        the village as an initiator of the creation of export activities             Plosorejo Village, Blitar
                                                                               3
        in East Java, either independently or in collaboration with                  (Kampung Cokelat).
        offtakers who are also in the East Java region. In determining
                                                                                     Wates Village, Kediri
        the formation of a Foreign Exchange Producing Village there            4
        are several criteria as follows:                                             (PT Tropikal Jaya Sukma – P. Sumali).
        1. Have a superior product.                                                  Kedunggalar Village, Ngawi
        2. Villages are unique.                                                5
                                                                                     (UD Simple Wood - KUPS MJS)
        3. There is a community producing superior local products
             that are export-oriented..                                              Wonorejo Village, Malang
                                                                               6
                                                                                     (PT Pameling Agro Nusantara –
        Meanwhile, the objectives of Pendulum Foreign Exchange                       Koperasi Konsumen Pameling Makmur
        Village are:                                                                 Mandiri).
        1. Increase export activities in East Java in the context of
                                                                                     Mujing Village, Pacitan
             empowering East Java, as well as improving the quality of         7
                                                                                     (PT Indo Bumi Lavanaa - Bumdes Manunggal)
             the trade balance of East Java Province.
        2. Increase the brand image with a branding system and                       Tegalrejo Village, Probolinggo
                                                                               8
             create an ecosystem that supports export-oriented SME                   (CV Dua Putri Sholehah)
             business processes (from upstream to downstream).




        PT Bank Pembangunan Daerah Jawa Timur Tbk
14      2023 Annual Report
Page 17
Table of Capital Structure                                                                                                            (in IDR million)


                        Bank Jatim Capital Adequacy Position                                       2023              2022          2021

 Core Capital (CET 1)                                                                           11.025.184         10.346.392     9.297.192

 Supplementary Capita (Tier 2)                                                                     516.010            437.563          415.071

 Total Core Capital and Supplementary Capital                                                   11.541.194        10.783.955      9.712.263

 Risk Weighted Assets (RWA) for Credit Risk                                                     40.764.771         34.567.488    32.790.641

 Risk Weighted Assets (RWA) for Operational Risk                                                 4.083.746          8.917.841     8.397.351

 Risk Weighted Assets (RWA) for Market Risk                                                         49.106            108.144           98.936

 Total Risk Weighted Asset                                                                      44.897.623         43.593.473    41.286.928

                                                           CAPITAL ADEQUACY RATIO (%)

 CET 1 Ratio                                                                                       24,56%             23,73%           22,52%

 Minimum capital adequacy ratio for credit risk and operational risk                               25,73%             24,80%           23,58%

 Minimum capital adequacy ratio for credit risk, market risk and operational risk                  25,71%             24,74%           23,52%




FOREIGN EXCHANGE
PRODUCING VILLAGE                                                                                                   December 2023

Forming a village that has certain superior commodities, export                                        Appreciation and Branding are given to
quality, is able to mobilize as a producer the creation of export                                      Foreign Exchange Producing Villages
activities in East Java, both independently and in collaboration
with offtakers who are also in the East Java region.

                                                                                                 September 2023

                                                                                     There is 1 Village in Launching stage III
               May 2023                                                              Tegalrejo Village (Probolinggo)


There are 3 villages in the launch stage l: Ngindeng
Village (Ponorogo), Trayang Village (Nganjuk), and                                  03                                           04
Plosorejo Village (Blitar)


                        01                                             02

                                                                                               August 2023

                                                                                There are 4 villages in the 2nd stage of the launch,
                                                                                Wates Village (Kediri), Kedunggalar Village (Ngawi),
                                                                                Wonorejo Village (Malang), and Mujing Village
                                                                                (Pacitan)




                                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                    2023 Annual Report          15
Page 18
PERFORMANCE
Highlights




     PT Bank Pembangunan Daerah Jawa Timur Tbk
16   2023 Annual Report
Page 19
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   17
Page 20
Important Achievements
2023




     COMMERCIAL AND                              CONSUMER LOAN       MICRO LOAN
     CORPORATE LOAN                                  IN 2023           IN 2023
         IN 2023


         Rp
              7,06                                 Rp
                                                      30,26           Rp
                                                                         7,62
              trillion                                   trillion          trillion

            increase                                    increase        increase


               6,80%                                        9,23%          44,02%
     compared to 2022                            compared to 2022   compared to 2022




            RETAIL AND
            MEDIUM LOAN IN 2023
                                                 increase

            Rp
                6,64                              41,32%
                         trillion
                                         compared to 2022




            SHARIA FINANCING
            IN 2023                              increase


            Rp
                2,19                              14,94%
                         trillion

                                         compared to 2022




     PT Bank Pembangunan Daerah Jawa Timur Tbk
18   2023 Annual Report
Page 21
                                  PERFORMANCE
                                     HIGHLIGHTS




SHARIA INTEREST INCOME
IN 2023
                                 increase

Rp
  7,36                             6,90%
     trillion
                          compared to 2022




TOTAL ASSET
IN 2023                          increase

Rp
  103,85                           0,80%
           trillion

                          compared to 2022




     PT Bank Pembangunan Daerah Jawa Timur Tbk
                            2023 Annual Report    19
Page 22
Summary
of Financial Overview
Financial Summary and Financial Ratios

Tabel of Financial Highlights                                                                                       (in million rupiah)


                      Description                          2023            2022           2021          2020            2019

                                                   STATEMENT OF FINANCIAL POSITION

 ASSET

 Cash                                                      2,652,775      1,988,262      2,023,077     2,511,548       2,729,776

 Current account with Bank Indonesia                       7,971,412     10,786,740      8,805,300     3,659,968       5,734,527

 Current account with other banks                            491,330       303,129        211,681       237,715          111,479

 Allowance for impairment losses                              (1,077)          (441)          (238)          (53)              (25)

 Current accounts with other banks. net                      490,253       302,688        211,443       237,662          111,454

 Placements with Bank Indonesia and other banks            5,234,721      6,916,329      9,917,695     6,884,658     11,989,584

 Allowance for impairment losses                              (5,026)        (3,154)        (1,763)         (795)          (2,357)

 Placements with Bank Indonesia and other banks. net       5,229,695      6,913,175      9,915,932     6,883,863     11,987,227

 Receivables of spot and derivatif                                  -           361               -             -                  -

 Securities                                               16,323,831     23,217,671     32,388,966    14,666,737       9,568,245

 Allowance for impairment losses                                (511)          (400)        (5,943)       (8,118)          (5,174)

 Securities, net                                          16,323,320     23,217,271     32,383,023    14,658,619       9,563,071

 Securities sold under a repurchase agreement              8,303,663      4,095,066               -             -      1,038,432

 Receivable from marketable securities purchased under                    7,822,847      3,420,685    12,573,044       5,837,520
                                                           6,247,318
 resale agreement

 Other receivables                                           223,138       286,147        230,019       131,932            81,265

 Loans granted and sharia financing

   Related parties                                           184,848       134,871        182,889       285,595          320,896

   Third parties                                          54,576,055     46,061,786     42,566,670    41,195,171     38,031,404

 Number of loans granted                                  54,760,903     46,196,657     42,749,559    41,480,766     38,352,300

 Allowance for impairment losses                          (1,364,905)    (1,318,612)    (1,831,417)   (1,454,721)       (980,134)

 Loans granted. net                                       53,395,998     44,878,045     40,918,142    40,026,045     37,372,166

 Accrued interest income                                     685,734       646,125        793,900       555,020          416,420

 Prepaid expenses                                            207,452       166,661        134,200       227,932          285,522

 Fixed assets

   Acquisition cost                                        2,230,878      2,109,260      1,906,263     1,882,572       1,595,455

   Accumulated depreciation                                (953,165)      (825,010)      (762,052)     (676,592)        (572,026)

 Net book value                                            1,277,713      1,284,250      1,144,211     1,205,980       1,023,429

 Deferred tax asset, net                                     472,123       502,238        627,211       591,676          522,638

 Tax receivables                                                  777           493            412             65                  -

 Other assets, net                                           373,402       140,998        115,775       356,098            52,866

 TOTAL ASSETS                                            103,854,773    103,031,367    100,723,330    83,619,452     76,756,313




         PT Bank Pembangunan Daerah Jawa Timur Tbk
20       2023 Annual Report
Page 23
                                                                                                             PERFORMANCE
                                                                                                                HIGHLIGHTS




                      Description                         2023          2022           2021           2020           2019

                                           LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY

LIABILITIES

Obligations due immediately                                 987,604      872,514        593,875        484,834        357,565

Deposits from customers

   Related parties                                        12,644,538   15,295,405    17,719,735     14,373,446     14,940,917

   Third parties                                          63,205,317   64,630,285    63,668,950     52,412,975     45,604,955

Total deposits from customers                             75,849,855   79,925,690    81,388,685     66,786,421     60,545,872

Deposits from other banks

   Related parties                                           56,694      141,996        360,169        238,860        137,819

   Third parties                                           2,503,627    3,168,842     3,756,367      2,576,134      2,750,611

Amount of deposits from other banks                        2,560,321    3,310,838     4,116,536      2,814,994      2,888,430

Securities liabilities sold under repurchase agreements    7,915,163    3,891,346              -              -     1,037,094

Borrowings                                                  596,977      631,464        655,288        631,355      1,870,246

Taxes payable                                               143,245       90,783        165,476         93,135         63,766

Accrued expenses                                            504,748      520,840        478,647        484,666        433,507

Other liabilities                                           779,314      472,054        529,738        596,630        538,275

TOTAL LIABILITIES                                         89,337,227   89,715,529    87,928,245     71,892,035     67,734,755

TEMPORARY SYIRKAH FUNDS

Deposits from customers

   Related parties                                             3,764       2,302          3,021          1,686               -

   Third parties                                           2,343,291    1,839,390     1,810,161      1,680,173               -

Amount of deposits from customers                          2,347,055    1,841,692     1,813,182      1,681,859               -

Deposits from other banks

   Third parties                                             19,422       28,285         71,364         40,610               -

Total deposits from other banks                              19,422       28,285         71,364         40,610               -

TOTAL TEMPORARY SYIRKAH FUNDS                              2,366,477    1,869,977     1,884,546      1,722,469               -

EQUITY

Share capital:

   Series A: nominal value of IDR250 (full amount) per
   share

   Series B: nominal value of IDR250 (full amount) per
   share

Authorized:

   Series A: 24,000,000,000 shares

   Series B: 12,000,000,000 shares

Issued and fully paid:

   Series A - 11,934,147,982 shares

   Series B - 3,081,350,100 shares                         3,753,875    3,753,875     3,753,875      3,753,875      3,750,593

   Additional paid-in capital - net                         532,734      532,734        532,734        532,734        528,753

Fixed asset revaluation surplus                             788,049      789,998        749,717        754,382        748,183

Remeasurement of defined employee benefit liability -
                                                           (117,777)    (100,912)      (163,811)      (197,081)      (276,061)
net of deferred tax




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report     21
Page 24
                      Description                             2023            2022           2021          2020          2019

Unrealized gain financial assets measured at fair value                       (115,048)       213,177       125,753             20
through other comprehensive income - net of deferred            (63,958)
tax

Retained earnings

General reserve                                               5,788,041      5,042,390      4,301,777     3,546,323     2,893,565

Unappropriated                                                1,470,105      1,542,824      1,523,070     1,488,962     1,376,505

TOTAL EQUITY                                                 12,151,069     11,445,861     10,910,539    10,004,948     9,021,558

TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS
                                                            103,854,773    103,031,367    100,723,330    83,619,452    76,756,313
AND EQUITY

                                   STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Interest and sharia income                                    7,357,284      6,882,651      6,655,168     6,088,742     5,839,016

Interest and sharia expenses                                 (2,316,184)    (1,965,595)    (1,977,487)   (2,031,472)   (1,839,415)

INTEREST AND SHARIA INCOME-NET                                5,041,100      4,917,056      4,677,681     4,057,270     3,999,601

OTHER OPERATING INCOME

Reversal for impairment- losses on financial assets                    -              -       361,666              -             -

Current accounts, savings and deposits administration
                                                                193,996        184,480        172,779       162,607       155,360
fees

Collection of loans written-off                                 127,264         56,653         55,003        55,055        77,973

Loan administration fees                                         30,880         42,511         34,055        41,357        45,993

Fees and commissions from other than loans                       22,093         11,105          5,225         5,613        14,795

Others                                                          274,187        238,820        177,629       153,239       179,859

TOTAL OTHER OPERATING INCOME                                    648,420        533,569        806,357       417,871       473,980

OPERATING EXPENSES

Salaries and employee benefits                               (1.762.643)    (1,674,698)    (1,644,897)   (1,544,532)   (1,459,394)

General and administrative                                   (1.182.987)    (1,229,388)    (1,078,820)     (684,216)     (683,957)

Allowance for impairment losses on financial assets           (694,136)       (404,659)      (819,201)     (567,751)     (370,265)

Unrealized losses from changes in fair value of
                                                                       -              -              -             -             -
securities, net

Other expenses                                                (194,713)       (201,054)      (150,020)     (162,365)     (163,386)

TOTAL OTHER OPERATING EXPENSES                               (3,834,479)    (3,509,799)    (3,692,938)   (2,958,864)   (2,677,002)

INCOME FROM OPERATIONS                                        1,855,041      1,940,826      1,791,100     1,516,277     1,796,579

NON-OPERATING INCOME (EXPENSES)

Tax service fees                                                  6,444          6,084          4,684        10,063        12,796

Gain on sale of fixed assets                                      5,608          5,274          3,952         2,670           393

Gain on sale of securities - net                                  8,698          2,757            131              -             -

Gain on foreign exchange                                          2,390               -         3,497         2,255         2,440

Other non-operating income                                       33,901        158,513        404,119        16,688        58,490

Non-operating expenses                                          (19,339)       (83,405)      (269,509)      (40,586)       (6,565)

Unrealized gain from changes in fair value of securities,                             -              -             -             -
                                                                       -
Net

TOTAL NON OPERATING INCOME (EXPENSES)                            37,702         89,223        146,874        (8,910)       67,554

INCOME BEFORE TAX EXPENSES                                    1,892,743      2,030,049      1,937,974     1,507,367     1,864,133

TAX EXPENSES - NET                                            (422,638)      (487,225)      (414,904)       (18,405)    (487,628)

CURRENT YEAR PROFIT                                           1,470,105      1,542,824      1,523,070     1,488,962     1,376,505

OTHER COMPREHENSIVE INCOME




         PT Bank Pembangunan Daerah Jawa Timur Tbk
22       2023 Annual Report
Page 25
                                                                                                                    PERFORMANCE
                                                                                                                       HIGHLIGHTS




                      Description                               2023           2022           2021           2020           2019

Items that will not be reclassified to profit or loss:

   Revaluation surplus (deficit) of fixed assets                   (1,949)       40,281         (4,665)         6,199         74,239

   Remeasurement of employee benefit liability                    (21,898)      100,163         41,074        100,536       (289,357)

   Beginning balance adjustment                                          -      (19,678)              -              -               -

   Related income taxes                                             5,033       (17,586)        (7,804)       (21,556)        57,871

Items that will be reclassified subsequently to profit
or loss:

   Unrealized gain (loss) on financial assets measured at                      (400,611)       103,326        155,226              25
                                                                   63,074
   fair value through other comprehensive income

   Beginning balance adjustment                                          -       (3,730)              -              -               -

   Related income taxes                                           (11,984)       76,116        (15,902)       (29,493)             (5)

OTHER COMPREHENSIVE INCOME - NET OF TAX                            32,276     (225,045)       116,029        240,405       (157,222)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR                         1,502,381     1,317,779      1,639,099      1,729,367      1,219,283

BASIC EARNINGS PER SHARE (IN FULL AMOUNT)                           97,91        102,75        101,43           99,16          91,80

                                                            STATEMENT OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts of interest, sharia, fees and commissions              7,324,150     7,030,426      6,421,514      5,950,142      5,793,913

Receipts of other operating income                                521.156       476,364        384,463        153,239        396,007

Collection of loans written-off                                   127.264        56,653         55,003         55,055         77,973

Receipts from non-operating income                                 60.386       172,136        416,380         29,007         74,120

Payment for non-operating expenses                                (19,337)      (82,913)      (269,509)       (40,586)        (6,565)

Payment of interest, sharia, fees and commissions              (2,310,264)   (1,931,344)    (1,983,506)    (1,799,442)    (1,832,032)

Payment of salaries and employee benefits                      (1,763,167)   (1,659,597)    (1,644,897)    (1,490,765)    (1,427,754)

Payment of general and administrative expenses                 (1,283,327)   (1,296,665)    (1,211,045)      (544,941)      (777,253)

Payment of taxes                                                 (368,455)     (389,372)      (378,098)      (378,774)      (581,512)

Cash flow from operating activities before changes in
                                                                2,288,406     2,375,688      1,790,305      1,932,935      1,716,897
operating assets and liabilities

Changes in operating assets and liabilities:

Placements with Bank Indonesia and other banks                     (1.500)       (7,000)              -       112,000       (112,000)

Tagihan spot dan derivatif                                               -             -              -              -               -

Loans                                                          (9.193.797)   (4,347,656)    (1,268,793)    (3,128,466)    (5,038,885)

Marketable securities sold under repurchase agreement          (4,208,597)   (4,095,066)              -     1,038,432       (471,540)

Reverse repo bill                                               1,575,529    (4,402,162)     9,152,359     (6,735,524)    (5,837,520)

Other assets and other receivables                               (166,678)     (117,044)       235,620       (282,585)       (53,071)

Liabilities due immediately                                       115,091       278,638        109,040        127,269       (146,873)

Deposits from customers                                        (3,570,473)   (1,434,484)    14,733,587      7,922,408      9,629,941

Deposits from other banks                                        (759,380)     (848,777)     1,332,296        (32,826)     2,153,322

Liabilities of marketable securities sold under
                                                                4,023,817     3,891,346               -    (1,037,094)       470,394
repurchase agreement

Other liabilities                                                 200,981       (39,476)        77,535       (146,658)        27,092

Net cash flows from (used to)                                  (9,696,601)   (8,745,993)    26,161,949      (230,109)      2,337,757

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of marketable securities                               6,948,323     8,846,760    (17,722,229)    (4,943,265)    (1,774,238)




                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                             2023 Annual Report     23
Page 26
                        Description                    2023           2022           2021          2020          2019

Acquisition of fixed assets                             (149,298)     (248,269)       (70,838)      (32,487)      (22,126)

Fixed asset sold                                           5,608         5,274          4,556         2,671           393

Net cash used in investing activities                  6,804,633     8,603,765    (17,788,511)   (4,973,081)   (1,795,971)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds (payments of) from borrowings                    43,578       (23.825)        23,933    (1,238,891)    1,144,682

Penambahan Pinjaman                                             -             -              -             -             -

Proceeds from additional paid-up capital                        -             -              -        7,263        14,209

Payment of lease liability                                 6,316       (21,111)              -         (886)             -

Payment of cash dividends                               (797,173)     (782,457)      (733,508)     (723,747)     (683,865)

Net cash is used in financing activities                (747,279)    (827,393)      (709,575)    (1,956,261)      475,026

Net increase in cash and cash equivalents             (3,639,247)    (969,621)      7,663,863    (7,159,451)    1,016,812

Cash and cash equivalents at the beginning of the
                                                      19,988,131    20,957,752     13,293,890    20,453,366    19,437,785
year

Effect of foreign currencies exchange rate change               -             -              -          (25)       (1,231)

Cash and cash equivalents at end of year              16,348,884    19,988,131     20,957,753    13,293,890    20,453,366

Cash and cash equivalents consist of:

Cash                                                   2,652,775     1,988,262      2,023,077     2,511,548     2,729,776

Current accounts with Bank Indonesia                   7,971,412    10,786,740      8,805,300     3,659,969     5,734,527

Current accounts with other banks                        491,330       303,129        211,681       237,715       111,479

Placements with Bank Indonesia and other banks         5,233,367     6,910,000      9,917,695     6,884,658    11,877,584

Total cash and cash equivalents                       16,348,884    19,988,131     20,957,753    13,293,890    20,453,366

                                                      FINANCIAL RATIO (%)

Minimum Capital Adequacy Ratio (CAR)                     25.71%        24.74%          23.52%        21.64%        21.23%

Earning Asset Quality                                     4.31%         2.55%           3.31%         3.48%         2.83%

Non-Performing Loans (NPL-Gross)                          2.49%         2.83%           4.48%         4.00%         2.77%

CKPN Against Earning Assets                               1.72%         1.62%           2.10%         1.93%         1.50%

Fulfillment of PPAP / CKPN                               71.72%        73.04%          67.93%        59.48%        52.84%

Profit Against Income                                    18.32%        18.92%          20.40%        21.70%        21.76%

Liabilities to Equity                                   735.22%       800.16%         823.17%      735.78%       750.81%

Liabilities to Total Assets                              86.02%        88.89%          89.17%        88.04%        88.25%

Net Interest Margin (NIM)                                 5.57%         5.11%           5.11%         5.55%         6.11%

Ratio of Fee Based Income to Total Operating Income       6.10%         6.32%           5.50%        12.37%         8.86%

Operating Costs / Operating Income (BOPO)                77.27%        76.15%          75.95%        77.76%        71.40%

Return on Asset (ROA)                                     1.87%         1.95%           2.05%         1.95%         2.73%

Return on Equity (ROE)                                   13.96%        16.24%          17.26%        18.77%        18.00%

Cost to Income Ratio (CIR)                               39.56%        38.41%          38.83%        36.91%        33.52%

Net Interest Margin (NIM)                                 5.57%         5.11%           5.11%         5.55%         6.11%

Cost Efficiency Ratio                                    52.53%        50.64%          52.82%        50.93%        52.65%

Loan to Deposits Ratio (LDR)                             70.03%        56.50%          51.38%        60.58%        63.34%

Legal Lending Limit (LLL)                                       -             -              -             -             -

Minimum Statutory Reserves (IDR)                          8.85%         4.75%           5.73%         0.00%         9.63%

Minimum Statutory Reserves (Foreign Currency)             6.62%         7.39%           7.36%         8.22%         9.21%

Net Open Position (NOP)                                   0.43%         3.26%           0.84%         0.90%         1.37%




        PT Bank Pembangunan Daerah Jawa Timur Tbk
24      2023 Annual Report
Page 27
                                                                                                                                                 PERFORMANCE
                                                                                                                                                    HIGHLIGHTS




Operations Highlights

Table of Operational Highlights of Bank Jatim                                                                                                            (in million Rupiah)


                       Description                                    2023                   2022                 2021                  2020                  2019

                                                                CONVENTIONAL

 CREDIT/LOAN

 Corporate and Syndicated Medium Loan*                                         -         10,320,231             9,691,297             9,748,903             8,711,965

 Retail and Micro Loan Programs *                                              -            6,272,869           4,981,888             4,173,152             3,578,740

 Consumer Loan                                                    30,256,043             27,698,345            26,313,613           25,989,907            24,659,762

 Micro Loan **                                                      7,617,655               5,289,479                      -                     -                     -

 Retail and Medium Loans**                                          6,635,264               4,695,043                      -                     -                     -

 Commercial and Corporate Loans**                                   7,064,083               6,614,321                      -                     -                     -

 THIRD PARTIES FUND/DEPOSITS

 Current Account                                                  20,750,151             23,477,047            25,862,874           21,039,158            23,721,437

 Savings                                                          28,016,300             23,118,307            24,264,622           22,285,619            21,669,322

 Deposit                                                          26,827,854             30,543,334            31,088,576           23,316,556            13,509,606

 OTHER SERVICES

 Treasury                                                         36,430,876             43,251,010            45,281,074           33,911,368            29,707,332

                                                                      SHARIA

 Funding                                                            2,602,606               2,065,118           1,985,795             1,826,436             1,645,508

 Sharia Financing                                                   2,187,858               1,903,471           1,762,368             1,607,359             1,401,833

 Sharia Other Services                                              1,216,406                998,163            1,964,752             1,378,999               875,545

* In 2023, it was adjusted to the organizational structure and became part of Micro Credit, Retail and Medium Credit as well as Commercial and Corporate Credit.
** From 2019 to 2021 it was still part of Corporate and Syndicated Medium Credit as well as Retail Micro Credit and Programs.




Stock
Information
Table of Prices, Volume and Capitalization of Bank Jatim Stock 2022-2023

                                                 Price per share                                        Number
                                                                                                                                                         Market
                                                                                                       of shares               Trading Volume
       Year                                                                                                                                           Capitalization
                        Opening             Highest             Lowest             Closing            outstanding                  (Shares)
                                                                                                                                                       (IDRBillion)
                         (IDR)               (IDR)               (IDR)              (IDR)               (shares)

                                                                                   2023

 Quarter I                   710               755                685                 735            15,015,498,082               139,115                  11,036

 Quarter II                  735               745                740                 645            15,015,498,082               104,445                    9,684

 Quarter III                 650               660                635                 635            15,015,498,082               113,499                    9,534

 Quarter IV                  640               640                600                 625            15,015,498,082               224,325                    9,384

                                                                                   2022

 Quarter I                   750               830                735                 790            15,015,498,082               250,951                  11,862

 Quarter II                  785               800                735                 740            15,015,498,082               230,962                  11,111

 Quarter III                 740               740                705                 705            15,015,498,082               114,949                  10,586

 Quarter IV                  710               730                675                 710            15,015,498,082                78,922                  10,661




                                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                               2023 Annual Report                       25
Page 28
   Graph of Bank Jatim Stock Closing Price for 2022-2023


   Share Closing Price (IDR)

                           800


                           780         790


                           760
                                                     740
                           740                                                                      735


                           720                                                          710
                                                                         705

                           700


                           680


                           660                                                                                   645
                                                                                                                                    635
                           640
                                                                                                                                                  625
                           620


                           600
                                     Quarter I    Quarter II          Quarter III    Quarter IV   Quarter I   Quarter II          Quarter III   Quarter IV

                                                               2022                                                        2023




  Graph of Bank Jatim Stock Trading Volume in 2022-2023




                           300.00

                                       250,952
                          250.000
Trading Volume (Shares)




                                                   230,962
                                                                                                                                                 224,325

                          200.000



                          150.000                                                                 139,115
                                                                        114,949                                                    113,499
                                                                                                              104,445
                          100.000
                                                                                       78,922


                           50.000



                                 0
                                      Quarter I    Quarter II          Quarter III   Quarter IV   Quarter I   Quarter II          Quarter III   Quarter IV

                                                                2022                                                       2023




                             PT Bank Pembangunan Daerah Jawa Timur Tbk
  26                         2023 Annual Report
Page 29
                                                                                                                                                  PERFORMANCE
                                                                                                                                                     HIGHLIGHTS




  Graph of Price and Trading Volume of Bank Jatim Stock in 2022 – 2023




                           300.00                                                                                                                           800
                                       790
                                    250,952                                                                                                                 780




                                                                                                                                                                  Stock Closing Price (IDR)
                          250.000
Trading Volume (Shares)




                                                       230,962                                                                                              760
                                                                                                                                                224,325
                                                         740
                                                                                                         735                                                740
                          200.000
                                                                                                                                                            720
                                                                          705          710
                          150.000                                                                      139,115                                              700

                                                                        114,949                                                      113,499                680
                                                                                                                    104,445
                          100.000
                                                                                     78,922                                                                 660
                                                                                                                      645
                                                                                                                                      635                   640
                           50.000                                                                                                                 625
                                                                                                                                                            620

                                0                                                                                                                           600
                                    Quarter I         Quarter II    Quarter III   Quarter IV          Quarter I    Quarter II    Quarter III   Quarter IV

                                                                 2022                                                         2023

                            Trading Volume (Shares)                               Stock Closing Price (IDR)




  Corporate Actions

  In 2023 Bank Jatim did not carry out corporate actions related to activities that affect the number of outstanding stock, including
  stock splits, stock mergers, stock dividends, bonus stock, and changes in the nominal value of stock.



  Termination Action While Trading of Stock (Suspension)
  and/or Removing of Stock (Delisting)

  As of December 31, 2023, Bank Jatim has never been subject to sanctions for temporarily suspending stock trading (suspension)
  and/or delisting stock (delisting).




  Bonds, Sukuk
  and/or Convertible Bonds Information

  As of December 31, 2023, Bank Jatim has not issued bonds/sukuk/convertible bonds. Thus, there is no information regarding bonds/
  sukuk/ convertible bonds.




                                                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                         2023 Annual Report              27
Page 30
Other Funding Sources
Information
As of December 31, 2023, Bank Jatim has not issued other securities, so there is no information on the chronology of issuance and/
or listing of other securities.




Company Analysis
Report


   No                             Name                               Recomendation                 Target Price                      Date

     1.      Panin Sekuritas                                   Neutral                                     -              February 20, 2023

     2.      Sadif Investment                                  Buy                                      693               August 18, 2023

     3.      Sinarmas Sekuritas                                Buy                                      725               July 28, 2023

     4.      BRI Danareksa                                     Buy                                      850               July 5, 2023

     5.      Mandiri Sekuritas                                 Neutral                                  800               February 17, 2022

     6.      RHB Research                                      Buy                                     1000               December 9, 2022

     7.      Binaartha Sekuritas                               Hold                                     740               December 23, 2022

                                                                         RESUME

 As of December 2023, Bank Jatim continues to show good growth in assets which grew 0.80% yoy and productive assets which grew 18.54% yoy.
 For the Income Statement, Net Interest Income decreased by -1.13%. This was due to interest income results that were not in line with credit growth
 plus interest expenses that increased by 26.97%. Provisions rose 71.54% yoy and the Non-Performing Loan (NPL) ratio fell from 2.83% to 2.49% due
 to the resolution of problem loans and write-off credits.
 • In terms of Third Party Funds (TPF), they experienced growth of -4,37% yoy. Decreased savings from Current Accounts which fell -11.46%,
    Deposits experienced a decrease of -10.49%. In terms of savings, there was an increase of 9.38%. Savings have increased because it is a reflection
    of the growth in users of the JConnect mobile banking application, which has been downloaded by 606 thousand, up 30% with a total transaction
    volume of 3.3 trillion in 2023. Bank Jatim recorded a net profit of 1.47 trillion or a decrease of -4. 71% yoy.
 • The position of Bank Jatim’s Loan to Deposit Ratio (LDR) in 2023 will increase from 56.50% to 70.03% because it is in line with credit growth.
    RoE fell to -2.28%, RoA fell to -0.08%, this was because the asset side increased without being accompanied by profit growth. Meanwhile, Net
    Interest Margin (NIM) increased to 5.11% from 5.57%. The BOPO ratio increased to 77.27% due to high interest expenses and the addition of new
    employees.
 • Bank Jatim’s target for 2024 is, assets grow 9.29% and DPK grows 13.02%. In order to optimize credit growth, Bank Jatim took the initiative to
    shift from treasury placement to credit so that credit is targeted to grow 23.66%, because it is supported by an increase in the number of Account
    Officers (AO). Thus, because the loan yield is higher than the treasury yield, it will have an impact on the LDR and NIM ratios increasing so that
    net profit before tax will be targeted to grow by 15.82% yoy.




          PT Bank Pembangunan Daerah Jawa Timur Tbk
28        2023 Annual Report
Page 31
                                                                                                 PERFORMANCE
                                                                                                    HIGHLIGHTS




Important Events
In 2023

19 January                           02 February                                17 March




Bank Jatim and RSU Brimadika         Bank Jatim supported the Ministry of       Bank Jatim launched Tabungan Santri
collaborated on Employee Health      Finance Program through MSME and           to exploit the potential of the Sharia
Services.                            KUR assistance.                            economy.




20 January                           08 March                                   20 March




Bank Jatim started 2023 by           Bank Jatim signed a business synergy       Bank Jatim supported the East
implementing the CSR of Bank Jatim   cooperation agreement with Bank            Java Provincial Government’s trade
Peduli.                              NTB Syariah as a step to strengthen        mission in East Kalimantan.
                                     Sharia Services.




01 February                          13 March                                   07 April




Bank Jatim won the ASEAN Asset       Bank Jatim achieved Rank A in the          Bank Jatim held the JConnect
Class PLCs award for the Bank’s      2023 Sustainability Report.                Ramadhan Festival with MSME
consistency in implementing GCG.                                                owners to encourage digital financial
                                                                                literacy.




                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                          2023 Annual Report      29
Page 32
 12 April                                  25 May                                 23 June




 Bank Jatim distributed dividends          Bank Jatim enlightened Kangean         Bank Jatim proved its contribution to
 of IDR797 billion, increasing Bank        Island through the CSR of PJU Solar    the country so that it received High
 performance.                              Cell.                                  Dividend Appreciation.




 15 May                                    30 May                                 27 June




 Bank Jatim introduced JConnect            The Governor of East Java              Bank Jatim became the first bank to
 Remittance in Hong Kong to support        inaugurated the Foreign Exchange       implement Digital Population Identity
 the East Java Province trade and          Pendulum Village assisted by Bank      (IKD) for Banking in Indonesia.
 investment mission.                       Jatim.


 17 May                                    9 June                                 15 July




 Bank Jatim and UNESA signed an            Bank Jatim won an award at the         Bank Jatim held the 2023 Sharia
 MoU in the Business and Academic          2023 Indonesia Financial Top Leader    Town Hall Meeting to strengthen
 Sectors.                                  Awards.                                Sharia Performance.




 21 May                                    12 June                                31 July




 PT Enha Sentosa Indonesia                 Bank Jatim provided promotional        Bank Jatim and the Ministry
 successfully exported ginger to four      facilities and market access for its   of Villages, Development of
 countries after receiving full support    fostered MSMEs to take part in Trade   Disadvantaged Regions and
 from Bank Jatim.                          Missions.                              Transmigration collaborated in
                                                                                  ASEAN SOMRDPE Indonesia 2023 to
                                                                                  support village and rural progress.



      PT Bank Pembangunan Daerah Jawa Timur Tbk
30    2023 Annual Report
Page 33
                                                                                                   PERFORMANCE
                                                                                                      HIGHLIGHTS




10 August                               20 September                              18 October




Bank Jatim collaborates with the        Bank Jatim won the 2023 ICAII Award       Bank Jatim received a Certificate of
High Prosecutor’s Office of East Java   for implementing the Five Pillars of      Appreciation for the inauguration of
Province.                               Transformation.                           Trans Jatim Corridor III.




20 August                               29 September                              18 October




Bank Jatim launched JConnect Pro in     Bank Jatim received an award from         Bank Jatim received the Jatim
celebration of its 62nd anniversary.    the Ministry of Home Affairs.             Bangkit Awards for Bank Jatim’s
                                                                                  support in recovering from the
                                                                                  impact of the pandemic.


25 August                               06 October                                06 November




Bank Jatim won the 2023 Infobank        Bank Jatim launched the Dual              Bank Jatim Successfully achieved
Award for its continued positive        Banking Leveraging Model to               Gold Rank ASRRAT 2023.
performance.                            improve the performance of the
                                        Sharia Business Unit.


18 September                            17 October                                10 November




Bank Jatim won the Top 50 Best          Bank Jatim implemented CSR and            Bank Jatim won the Road to CNBC
Issuers.                                branding to Pasar Induk Among Tani        Indonesia Awards 2023 as the
                                        to commemorate the 22nd anniversary       Best Regional Bank for the Bank’s
                                        of Batu City.                             performance.




                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                            2023 Annual Report       31
Page 34
 21 November                               12 December                            15 December




 Bank Jatim provided ambulance             Bank Jatim reach the first MURI        Bank Jatim was leading innovation
 assistance and facilitated financial      record in Indonesia with 2,312         by being a pioneer in Indonesia
 transactions abroad to support East       debtors signing a mass consumer        in implementing IKD and was also
 Java migrant workers.                     credit agreement. Bulk Consumer        visited by the Directorate General
                                           Credit Agreement. This mass contract   of Population and Civil Registration
                                           event aims to inform the public        (Ditjen Dukcapil), the Ministry of
                                           regarding Bank Jatim’s readiness to    Home Affairs, and the World Bank.
                                           support economic growth in East
                                           Java through the Consumer Credit
                                           sector.




 27 November                               14 December                            15 December




 Bank Jatim ranked first in the 2022       President Jokowi attended the          Bank Jatim Sharia Business Unit
 Annual Report Awards.                     inauguration of Pasar Induk Among      received 3 (three) awards in the 2023
                                           Tani with optimal support from Bank    BPKH Award.
                                           Jatim.

 30 November




 Bank Jatim collaborated with Bank
 Lampung.




      PT Bank Pembangunan Daerah Jawa Timur Tbk
32    2023 Annual Report
Page 35
                             PERFORMANCE
                                HIGHLIGHTS




PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report    33
Page 36
REPORT OF
DIRECTORS
and Board of
Commissioners




     PT Bank Pembangunan Daerah Jawa Timur Tbk
34   2023 Annual Report
Page 37
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   35
Page 38
Board of Directors’
Report




     BUSRUL
     IMAN
     President Director




         PT Bank Pembangunan Daerah Jawa Timur Tbk
36       2023 Annual Report
Page 39
                                                                                                   REPORT OF DIRECTORS
                                                                                           AND BOARD OF COMMISSIONERS




    Respected Shareholders and other Stakeholders,
    We thank God Almighty for the blessings and gifts, so Bank Jatim could go through
    big challenges in 2023 and recorded good performance.



Transformation Program of Bank Jatim was the main pillar in           Receivable Financing Loans, Local Government Loans and
supporting Bank’s target achievement and one of the efforts to        Trade Finance Loans.
achieve Bank Jatim’s vision and mission, which was the 1st firm   4. Micro, Retail and Program Loan Products included East
and high-competitive BPD.                                             Java Retail Loans, Laguna Micro Loans, BPR Linkage Loans,
                                                                      People’s Business Loans (KUR), Loans to Cooperatives for
In this occasion, allow us to submit the implementation               Members (KKPA), Loans to Cooperatives (KKOP), KUMK
report of Bank management during 2023, comprising of Bank             SU-005/ Government Investment Loans (KIP), Cattle
performance, business prospect analysis, development of               Breeding Business Loans (KUPS), Food and Energy Security
the implementation of corporate governance, Committee                 Loans (KKPE), East Java Micro Loans, Fintech Linkage
performance assessment under the Board of Directors, and the          Loans, SiUMI Loans, and BPR RC Loans (Current Accounts)
changes of the Directors’ composition.                            5. Treasury Products included General Foreign Exchange
                                                                      (Telegraphic Transfer), Bank Notes and Deposit on Call.
                                                                  6. Trade Finance products included Export, Import and
Analysis of Bank Performance                                          Domestic Transactions (SKBDN).
                                                                  7. Business services included Bank Reference, National
As a company engaged in the banking sector, the aims and              Clearing, Real Time Gross Settlement (RTGS), Rupiah
objectives of Bank Jatim are to carry out business in the field       Collection, Foreign Exchange Collection, Giralization, BPD
of financial and insurance activities, especially banking, in         Net Online, East Java Electronic Transfer System (JETS),
accordance with the provisions of the applicable laws and             Jconnect Invest, and Remittance Transaction.
regulations. In accordance with the vision and mission, Bank      8. Services, Bill Payment, Salary Payroll and Trade Transaction
Jatim developed competitive and professionally managed                Services.
products and services in order to encourage regional economic     9. Sharia Financing Products included General financing, iB
growth. The Bank owned both conventional and sharia products          Griya Barokah KPR, Prosperous KPR, Sharia Multipurpose,
and services as follows:                                              iB Barokah Gold, Gold Metal Ownership, Linkage Program,
                                                                      Umroh iB Maqbulla, iB Barokah Property Construction
1. Savings products included Rupiah Current Accounts,                 Working Capital Financing, iB Barokah Land Acquisition
   Foreign Currency, Current Accounts, Rupiah Deposits,               Financing, Capital Financing of Working Pattern of iB
   Foreign Currency Deposits, Simpeda Savings, Cycle                  Barokah Presidential Decree, iB Barokah Bonded Investment
   Savings, Hajj Savings, My Savings, Student Savings                 Collateral Financing (ITIB), iB Barokah Receivable Financing
   (SIMPEL), Laku Pandai Savings (SiPandai) and Cycle                 (Factoring), Syndicated Financing, Employee and Personal
   Retirement Savings.                                                Financing, Bank Guarantees and Halal Industrial Area
2. Consumer Loan products included Multipurpose Loans,                Financing.
   Employee Loans & Personal Loans, Car Allowance                 10. Sharia funding products and services included iB Barokah
   Programs for Motor Vehicle Loans, Cash Collateral Loans,           Current Account, Simpel iB Savings, My iB Savings, iB
   Gold Collateral Loans and Property Loans.                          Amanah Umroh Savings, Sipandai iB Barokah Savings,
3. Commercial, Corporate and Syndicated Products included             Santri Savings, iB Barokah Savings, Barokah Prosperous
   Transactional Contract Contractor Loans, Standby Loans,            Savings, iB Amanah Hajj Savings, Barokah iB Plan Savings,
   Contractor Loans, General Installment Working Capital              Retirement Savings iB Barokah, Barokah Deposits, Virtual
   Loans, Current Account Working Capital Loans, Investment           Accounts, Payment Points, E-Channels (SMS Banking,
   Loans, Property Construction Loans, Syndicated Loans,              J-Connect Mobile and JConnect Internet Banking) and iB
   Loans to Regional Public Service Agencies (BLUD),                  Barokah Endowments.




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report        37
Page 40
11. E-channels and other services included SMS Banking             Operations Division, General Division, Product Development
    (3366), JConnect Internet Banking, JConnect Mobile             Division and Credit Administration Unit. The Compliance
    Banking, JConnect E-Kmg, JConnect E-Loan, Laku Pandai          Directorate was supported by Compliance & APU PPT Division,
    Services (Sipandai Bank Jatim), Info Bank Jatim (14044),       Legal Division and Policy and Procedures Division. All Divisions
    ATM Cards Bank Jatim Debit, Bank Jatim Flazz Card (Co-         had contributed to the performance achievements of their
    Branding), Safe Deposit Box, Electronic Civil Servant Card     respective Directorates and the Bank’s overall performance.
    (KPE), Virtual Account, East Java E-Samsat, National Digital
    Samsat (Signal), East Java Code QRIS and BJTM Connect.         Human Capital and Its Management

Indeed, as a banking company, Bank Jatim could not be              In conducting its operational activities, Bank Jatim had
separated from the customers or markets it served. Bank            4,544 employees with details of education level, such as
Jatim targeted all groups of age without exception, including      342 people with non-strata education, 3,872 people with
productive ages (millennials) and non-productive ages (retirees)   bachelor’s degrees, 325 people with master’s degrees, and
in all Bank working areas, including the DKI Jakarta and Batam     5 (five) people with doctoral degrees. In 2023, Bank Jatim
Provinces. To serve and establish relationships with a market      had provided education to 4,999 employees out of 5,242
that was broad and diverse and had a long-term dimension,          employees or conducted training to develop competency for
Bank Jatim created easier access for its customers. This effort    95.38% of employees. This could be completed with the aid of
was conducted by expanding the office network and expected         e-Learning technology and content that was easily accessible,
to provide education to customers about banking products that      flexibly both from place and time. In terms of composition,
could support their business development. As of December           60.5% of educational programs that had been implemented
2023, Bank Jatim had 1 Head Office and 1,819 office networks       were supporting business competencies and 39.5% were
spread throughout East Java. Bank Jatim also had a business        supporting business competency. Competency development
network in large city areas such as Jakarta and Batam.             activities recorded that 1,576 employees had participated in
                                                                   the certification program and 4,913 people had taken part in
Effective Organizational Structure                                 the improvement program of the non-certification competency.
Strengthening
                                                                   Apart from competency development, Bank Jatim also carries
The implementation of the Bank’s management could be seen          out career development which is implemented with the aim of
in the organizational structure of Bank Jatim, which was divided   preparing, developing and retaining employees so that they
into 6 (six) Directorates under the President Director, such as    can display their best performance, both now and in the future.
Micro, Retail and Medium Directorate, Finance, Treasury and        Currently the Bank has a tiered career development program
Global Services Directorate, Risk Management Directorate,          or promotion program for employees from first level officials to
IT and Digital Directorate, Operations Directorate, and            executive officers which is implemented to meet the needs of
Compliance Directorate. Each Directorate was divided into          vacant positions.
several Divisions, which supported the implementation of the
duties of the relevant Directors. The President Director was       Information Technology Innovasion
supported by Corporate Secretary and Internal Audit Division.
Also, the President Director was supported by several SEVPs        Bank Jatim realized that the need for digitalization services
including SEVP Corporate, Syndication and Institutional,           was increasing. Bank Jatim had innovated and invested in
SEVP Consumer Banking, SEVP Sharia Business, SEVP                  technology to remain competitive in the development of digital
Corporate Transformation, and SEVP Network and Services.           banking technology. Currently, several products and services
The Micro, Retail and Medium Directorate was supported by          had been launched to ease services for the public, such as
Retail and Medium Credit Division and Micro Credit Division.       being the first Bank in Indonesia in implementing the Digital
The Finance, Treasury and Global Services Directorate was          Population Identity (IKD), SIPD, such as an integrated SP2D
supported by Accounting and Financial Management Division,         application for Regional Government Expenditure, JConnect
Treasury Division and International Banking Division. The Risk     Pro, CMS, such as an application for Village Government
Management Directorate was supported by Credit Risk Analyst,       expenditure, which made easily funds distribution to village
Credit Risk Division, and Credit Restructuring and Settlement      partners, Customer Self Service, Siskeudes Link and E-Bansos.
Division. The IT and Digital Directorate was supported by
Information Technology Division, Digital Banking Division dan
Security IT Unit. The Operations Directorate was supported by




        PT Bank Pembangunan Daerah Jawa Timur Tbk
38      2023 Annual Report
Page 41
                                                                                                         REPORT OF DIRECTORS
                                                                                                 AND BOARD OF COMMISSIONERS




Economic Analysis                                                      than the growth in the second quarter of 2022 which was
                                                                       5.73% (yoy). This slowdown was influenced by seasonal factors,
                                                                       the lack of religious holidays and the absence of holidays
The overall infrastructures owned by Bank Jatim operated               throughout the third quarter of 2023 which could encourage
effectively in supporting the implementation of the Board of           consumption activity.
Directors’ duties, especially in economic conditions in 2023, which
were still experiencing uncertainty. In the midst of these economic    Also, in terms of expenditure, GDP components mostly
conditions, the Board of Directors had been able to run the Bank’s     continued to grow, but other components contracted, such as
business well. Further, Bank performance was influenced by             government consumption, exports, and imports. Consumption
various factors, especially macro economic conditions.                 of Non-Profit Agencies Serving Households (LNPRT) increased
                                                                       6.2%, although slowing down compared to the previous
In terms of the global economy, official data regarding the            quarter, Gross Fixed Capital Formation (PMTB) also grew
magnitude of world economic growth until January 2024 had              5.8%. Household consumption continuously developed at
not yet been definitively provided by various sources. However,        5.1%, which was in accordance with the firmness of people’s
in its Quarter III-2023 Monetary Policy Report, Bank Indonesia         purchasing power along with controlled inflation.
predicted economic growth in 2023 of 2.9%. The Quarter III-
2023 Indonesian and World Economic Development Report by               Related to production, business sectors almost grew
Bappenas stated that the global economic recovery tends to             positively, excluding for Education Services and Government
retard, which is reflected in the unequal speed of global economic     Administration, contracted 2.1% and 6.2%, respectively.
growth in Quarter III-2023 and influenced by, such as, tight           Government administration was one of the sectors experiencing
financial conditions, vulnerable trade growth, lower optimism          contraction in Quarter III-2023. The underperformance of
in the business aspect and consumers, escalated geopolitical           this sector was affected by the lower realization of employee
tensions after the Russia-Ukraine war, the development of the          expenditure in the National Revenue and Expenditure (APBN),
Palestine-Israel conflict, the impact of tightening monetary policy,   and the absorption capacity of employee expenditure in
and extreme weather. Further, the United States economy grew           Quarter III-2023 was lower than Quarter III-2022.
by 2.9% (yoy); China developed 4.9% (yoy); Japan’s economy
retarded 1.2% (yoy); South Korea increased 1.4% (yoy); and             Generally, national banking performance was still quite good as
Singapore extended 1, 1% (yoy). Most countries’ central banks          reflected in a number of banking performance indicators, which
inclined to maintain their interest rates, which was in accordance     remained good and at a safe level. The Bank Indonesia’s Board
with relieving inflation. Energy commodity prices were on a positive   of Governors (RDG) meeting dated December 20-21, 2023
trend, though they were lower than 2022. Additionally, agricultural    decided to maintain BI 7-Day Reverse Repo Rate (BI7DRR) at
commodity prices were still sloping, and metal base prices were        6.00%, the deposit facility interest rate 5.25%, and the lending
varied, as well as precious metal prices were strengthening.           facility interest rate at 6.75%. This decision was consistency of
                                                                       monetary policy to ensure low and controlled inflation and to
In most countries, central banks tended to maintain their              maintain economic recovery and exchange rate stability.
interest rates as inflation subsides. The Federal Reserve held
the rate of increase in the Fed Funds Rate (FFR) interest rate at      Resilience of banking liquidity was still maintained, supported by
a range of 5.25%-5.50% throughout Quarter III-2023, which was          growth in Third Party Funds (DPK) of 6.54% (yoy) in September
the highest level in the last 22 years. This policy was stipulated     2023. The ratio of Liquid Assets Ratio to Third Party Funds (AL/
by considering the fluctuation in inflation since the Covid-19         DPK) remained high, such as 25.83%. This liquidity development
lockdown, which had sharply declined from an annual rate of            had a positive impact on the development of banking interest
9.1% in June 2023 to 3.7% in September 2023. However, this             rates, and 1 (one)-month bank deposit interest rates and credit
inflation rate was still above the Fed’s target of 2% in the mid of    interest rates in September 2023 were maintained at 4.28%
the continued price increasing signal.                                 and 9.36%, respectively. Bank Indonesia’s stress-test results
                                                                       also showed that banking resilience remains firm in dealing
In the midst of retarding global conditions, the Indonesian            with global pressures. Bank Indonesia will continuously affirm
economy positively improved in Quarter III-2023, though it             synergy with the Financial System Stability Committee (KSSK) in
experienced a slowdown to 4.94% (yoy), lower than the growth           mitigating various risks that potentially disrupt financial system
in Quarter II-2022, which was 5.73% (yoy). This slowdown was           stability and economic growth momentum.
influenced by seasonal factors, the lack of religious holidays
and the absence of holidays throughout Quarter III-2023, which         Determination of Credit, Savings and
could boost consumption activity.                                      Competitive Interest Rates

In the midst of slowing global economic conditions, the                Based on economic and industrial analysis and taking into
Indonesian economy in the third quarter of 2023 grew positively        account existing challenges, Bank Jatim has set a market target
even though it experienced a slowdown to 4.94% (yoy), lower            in the form of increasing DPK and Credit. The targets for DPK




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report          39
Page 42
and credit distribution in 2023 are IDR 78.20 trillion and IDR 54.76 trillion, respectively. This increase was carried out, among other
things, by collaborating on Sponsorship Events in Bank Jatim’s working areas, opening accounts at schools and one student account,
collaborating with other banking institutions/entities/companies, as well as implementing Digital Population Identity (IKD for Banking
in collaboration with Directorate General of Population and Civil Registration, Ministry of Home Affairs.


To achieve market target, Prime Lending Rate for 2023 was determined as follows:


Table of Prime Lending Rate

                                          Bank Jatim Prime Lending Rate as of December 2023
                                                      Based on Business Segment

                                                                                                             Consumer Loan
     Corporate Loan                   Retail Loan              Micro Loan
                                                                                                    KPR                            Non KPR

           7.68%                          8.21%                  13.40%                            8.22%                              9.58%



In addition, bank Jatim also set competitive and competitive interest rates for time deposits and current accounts presented as
follows:


Table of Savings Interest Rates as of December 2023					

                                   Tier                                                              Interest Rate

                                                              SIMPEDA

 0 - < IDR1 million                                                                                           0.00%

 IDR1 million - < IDR10 million                                                                               0.50%

 IDR10 million - < IDR50 million                                                                              0.75%

 IDR50 million - < IDR500 million                                                                             1.00%

 ≥ IDR500 million                                                                                             1.50%

                                                                SIKLUS

 0 - < IDR1 million                                                                                           0.00%

 IDR1 million - < IDR10 million                                                                               0.75%

 IDR10 million - < IDR50 million                                                                              1.00%

 IDR50 million - < IDR500 million                                                                             1.25%

 ≥ IDR500 million                                                                                             1.50%

                                                      SIKLUS MIKRO KECIL (SIUMI)

 0 – IDR500 thousand                                                                                          0.00%

 > IDR500 thousand                                                                                            1.50%

 SIKLUS NELAYAN (SiNyal)

 0 – IDR500 thousand                                                                                          0.00%

 > IDR500 thousand                                                                                            0.50%

                                                            HAJJ SAVING

 All Nominal                                                                                                  1.00%

                                                            TABUNGANKU

 0 – IDR500 thousand                                                                                          0.00%

 >IDR500 thousand – IDR1 thousand                                                                             0.25%

 >IDR1 thousand                                                                                               1.00%
                                                                    Notes:
                                                                    Interest was calculated on a daily basis and according to the applicable tiering
                                                                    Interest was paid according to the payment period




        PT Bank Pembangunan Daerah Jawa Timur Tbk
40      2023 Annual Report
Page 43
                                                                                                          REPORT OF DIRECTORS
                                                                                                  AND BOARD OF COMMISSIONERS




                                  Tier                                                          Interest Rate

                                                          SIKLUS PRIORITAS

 0 - < IDR500 thousand                                                                                0.00%

 IDR500 thousand - < IDR7,5 thousand                                                                  1.50%

 IDR7,5 million - < IDR100 million                                                                    1.75%

 IDR100 million - < Rp IDR1 billion                                                                   2.00%

 ≥ IDR1 billion                                                                                       2.25%

                                                        LAKU PANDAI SAVING

 All Nominal                                                                                          0.50%

                                                              SIKLUS PENSIUN

 0 - < Rp250 thousand                                                                                 0.00%

 Rp250 thousand - < Rp7,5 million                                                                     1.25%

 Rp7,5 juta million - < Rp100 million                                                                 1.50%

 ≥ Rp100 million                                                                                      1.75%

                                                               SIKLUS VALAS

 USD

 < USD100                                                                                             0.00%

 > USD100 - ≤ USD10.000                                                                               0.05%

 > USD10.000 - ≤ USD100.000                                                                           0.15%

 > USD100.000                                                                                         0.25%

 SGD

 < USD100                                                                                             0.00%

 > USD100 - ≤ USD10.000                                                                               0.05%

 > USD10.000 - ≤ USD100.000                                                                           0.15%

 > USD100.000                                                                                         0.20%

 EUR

 0 - EUR300                                                                                           0.00%

 > EUR300                                                                                             0.10%

 JPY

 All Nominal                                                                                          0.00%

 HKD

 All Nominal                                                                                          0.00%



Table of Time Deposit Interest Rates as of December 2023

                                                                               Tenor (Month)
                 Tier
                                        1 Month    2 Months      3 Months       6 Months       12 Months      18 Months    24 Months

 ≥IDR2,5 million- IDR1 billion          2.70% pa   2.80% pa       2.90% pa       3.00% pa       3.10% pa        3.15% pa    3.15% pa

 >IDR1 billion                          2.75% pa   2.85% pa       2.95% pa       3.05% pa       3.15% pa        3.15% pa    3.15% pa




                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                           2023 Annual Report     41
Page 44
Table of Foreign Exchange Interest Rates as of December 2023				

                                                                                                    Tenor (Month)
                         Tier
                                                               1 Month                   3 Months            6 Months               12 Months

 USD

 ≥ USD 1.000 - ≤ USD 100.000                                                                          0.75% pa

 > USD 100.000                                                                                        1.00% pa

 SGD

 ≥ SGD1.000                                                                                           0.10% pa

 EUR

 ≥ EUR750                                                                  Each placement had to be approved by the Division in charge

 JPY

 ≥ JPY100.000                                                              Each placement had to be approved by the Division in charge

 HKD

 ≥ HKD7.500                                                                Each placement had to be approved by the Division in charge

 AUD

 ≥ AUD2.000                                                                                           0.50% pa

 CNY

 ≥ CNY7.000                                                                                           0.70% pa


Notes: Above the counter rate, the branch sought approval from the Head Office



Table of On Call Deposit Interest Rates as of December 2023					

                  Tier                                                                       Interest Rate

                                            0,75% below the market interest rate of Government Banks, Regional Development Banks or Private Banks
 Deposit On Call (Rupiah)
                                            obtained from LHBU or Reuters




Table of Current Account Interest Rates as of December 2023					

                           Tier                                                                      Interest Rate

                                                                           RUPIAH (IDR)

 Calculation of progressive daily giro service

 IDR0 - IDR5 million                                                                                     0.00%

 > IDR5 million - IDR100 million                                                                         0.50%

 > IDR100 million - IDR1 billion                                                                         0.75%

 > IDR1 billion - IDR500 billion                                                                         0.90%

 > IDR500 billion - IDR750 billion                                                                       1.25%

 > IDR750 billion                                                                                        1.75%

 Escrow Account Current Account                              Same as Rupiah current accounts, and had to be included in the Cooperation Agreement (PK)

                                                                                 FOREX

 USD Forex Current Account

 ≤ USD1.000,00                                                                                           0.00%

 > USD1.000,00 - ≤ USD10.000,00                                                                          0.05%

 > USD10.000,00 - ≤ USD100.000,00                                                                        0.15%

 > USD100.000,00                                                                                         0.25%




          PT Bank Pembangunan Daerah Jawa Timur Tbk
42        2023 Annual Report
Page 45
                                                                                           REPORT OF DIRECTORS
                                                                                   AND BOARD OF COMMISSIONERS




                       Tier                                          Interest Rate

 SGD FOREX CURRENT ACCOUNT

 ≤ SGD1.000,00                                                             0.00%

 > SGD1.000,00 - ≤ SGD10.000,00                                            0.05%

 > SGD10.000,00 - ≤ SGD100.000,00                                          0.15%

 > SGD100.000,00                                                           0.20%

 EUR FOREX CURRENT ACCOUNT

 EUR                                                                       0.10%

 JPY Forex Current Account

 JPY                                                                       0.00%

 AUD Forex Current Account

 AUD 15.000 - < AUD 150.000                                                0.20%

 ≥ AUD 150.000                                                             0.50%

 HKD FOREX CURRENT ACCOUNT

 HKD 78.000 - < HKD 780.000                                                0.20%

 ≥ HKD 780.000                                                             0.50%

 CNY FOREX CURRENT ACCOUNT

 CNY 72.000 - < CNY 720.000                                                0.20%

 ≥ CNY 720.000                                                             0.50%



Table of Profit Sharing Ratio

                           Product                  Profit Sharing Ratio               Profit Sharing Realization

 Individual Wadiah Current Account                         0.00%                                 0.00%

 Wadiah General Office/Government Current Account          0.00%                                 0.00%

 Private General Wadiah Current Account                    0.00%                                 0.00%

 Government General Mudharabah Current Account             5.00%                                 0.51%

 My Savings iB                                             0.00%                                 0.00%

 Smart Practice Savings                                    0.00%                                 0.00%

 Simple Savings                                            0.00%                                 0.00%

 Student Savings                                           0.00%                                 0.00%

 Amanah iB Umrah Savings                                   0.00%                                 0.00%

 Amanah Hajj Savings                                      10.00%                                 1.02%

 Barokah Savings                                          12.50%                                 1.27%

 Prosperous Barokah Savings                                4.00%                                 0.41%

 iB Barokah Plan Savings                                  25.00%                                 2.54%

 iB Barokah Pension Savings                               15.00%                                 1.52%

 Deposit 1 Month                                          36.00%                                 3.66%

 Deposit 3 Months                                         38.00%                                 3.86%

 Deposit 6 Month                                          41.00%                                 4.16%

 Deposit 12 Month                                         42.50%                                 4.32%




                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                          2023 Annual Report        43
Page 46
Strategic Policy and Strategy                                       3. Strengthen the monitoring and evaluation process for the
                                                                        settlement of non-performing loans, among others, by
                                                                        evaluating the Key Performance Indicator (KPI) of the non-
The Board of Directors leads the formulation of the bank’s              performing loan settlement work unit
strategy directly through various meetings between the Board        4. Evaluate division performance to be more effective and
of Directors and key management as stated in the bank’s                 efficient.
Business Plan (RBB). The Board of Directors always ensures that     5. Improved Service Level Agreement (SLA).
the strategy has been implemented effectively through various       6. Evaluate the implementation of the new organizational
Coordination Meetings, provision of direction, and reporting            structure.
mechanisms.                                                         7. Improving the quality of human resources through training
                                                                        activities.
In line with the Bank’s policy direction and taking into account    8. Improvement of remuneration.
the latest developments in economic conditions, the Bank            9. Evaluation and implementation of rewards and punishments.
focuses on implementing the following strategies:                   10. Improve the new employee recruitment system.
1. Change of business model from per credit scheme to               11. Strengthening the company’s work culture through change
     segmentation based on ceiling.                                     agent training.
2. Network repositioning especially the Surabaya area and           12. Establish a work culture in KPI in 2023.
     Class 1 Branches.                                              13. Roadmap for GCG improvement to be ranked 2nd in 2023.
3. Changes in organizational structure are adjusted to the          14. Maintain the average risk profile rating at 2.
     development of the business.                                   15. Improvement in the quality of service standards to be
4. Increase non-organic assets by corporate action to invest in         ranked 2nd among BPD throughout Indonesia in 2023.
     financial institutions and capital participation in bank NTB
     Syariah which is continued to the bank Business Group          The Bank’s strategy for Sharia Business Units includes DPK
     (KUB) stage.                                                   and Financing strategies. DPK Syariah’s strategy of increasing
5. Increase fee-based income by adding Bank Jatim’s                 CASA and fee based income is carried out by implementing
     e-channel feature.                                             two strategic approaches, namely maintenance of existing
6. Increase the collection of Non-Local Government Funds            customers and acquisition of new customers. Strategic
     (Pemda) by increasing the Current Account Saving Account       financing steps are carried out by optimizing the disbursement
     (CASA).                                                        of syndicated financing, accelerating the financing proposal
7. Strengthen the monitoring and evaluation process for non-        process, optimizing analyst staff, approaching the MSME
     performing loan settlement, among others, evaluating the       community, optimizing the distribution of BMT/BPRS financing
     Key Performance Indicator (KPI) of the non-performing loan     and establishing cooperation with various agencies.
     settlement work unit.
8. Improve the management of Human Resources (HR), among
     others, by conducting workload analysis and mapping HR         Achievement of Performance Targets
     needs, compiling talent pool mechanisms and career paths
     for HR by paying attention to the mission of becoming          Based on the strategy that has been implemented, in 2023 Bank
     an IT-based and Digital bank, and compiling programs to        Jatim has produced good performance in accordance with the
     improve the competence and quality of human resources by       target. From the operational side, total Micro Loan distribution
     conducting training for customers by launching J-Connect       in 2023 will be IDR7.62 trillion, an increase of 44.02% compared
     as BankJatim’s digital banking branding.                       to 2022 which was IDR5.29 trillion. Total Retail and Medium
9. Improve cyber security among others, by managing cyber           Loan distribution in 2023 will be IDR6.64 trillion, an increase
     security, mandatory cyber risk assessment, mandatory           of 41.32% compared to the previous year which amounted to
     testing of the Bank’s information technology vulnerability,    IDR4.70 trillion. Total distribution of Commercial and Corporate
     assessment of cyber maturity level, and implementation of      Loan in 2023 will amount to IDR7.06 trillion, an increase of 6.80%
     the Bank’s cyber security testing.                             compared to 2022 which amounted to IDR6.61 trillion. Total
10. Sustainable implementation of Corporate Culture, risk           Consumer Loan in 2023 will reach IDR30.26 trillion, an increase
     culture development, compliance culture, service culture,      of 9.23% compared to 2022 which was IDR27.70 trillion.
     and marketing culture.
                                                                    In the Sharia segment, the realization of Sharia TPF in 2023
To support the focus of this strategy, Bank Jatim also formulates   was IDR2.60 trillion, an increase of IDR537.49 billion or 26.03%
strategic policies as follows :                                     compared to 2022 of IDR2.07 trillion. The increase in Sharia TPF
1. Network repositioning, especially in the Surabaya area and       mainly came from growth in Deposito Barokah amounting to
    Class 1 Branches.                                               IDR381.34 billion. Apart from TPF, in the sharia segment there
2. Changes in organizational structure are adjusted to the          has also been an increase in sharia financing. Total financing
    development of the business.                                    realized in 2023 was IDR2.18 trillion, an increase of IDR284.39
                                                                    billion or 14.94% compared to 2022 of IDR1.90 trillion.


        PT Bank Pembangunan Daerah Jawa Timur Tbk
44      2023 Annual Report
Page 47
                                                                                                       REPORT OF DIRECTORS
                                                                                               AND BOARD OF COMMISSIONERS




Good achievements can also be seen from the financial side.          Important Things to Happen in the
In 2023, Bank Jatim’s net interest and sharia income was             Future and Business Prospects
recorded at IDR7,357,284 million, an increase of 6.90% from
last year’s IDR6,882,651 million. For the financial year ending
December 31, 2023, Bank Jatim’s total assets amounted to             According to the World Economic Outlook (IMF, October
IDR103.854.773 million, an increase of 0.80% from last year’s        2023), global economic growth in 2023 is expected to be at
IDR103,031,367 million. Equity in 2022 reach IDR12,151,069           the level of 2.9%, Latin America at 2.3%, Europe at 1.2%, and
million, an increase of 6.16% compared to the previous year          Middle-East Africa at 3.4%. meanwhile, economic growth in
which reached IDR11,445,861 million.                                 developing countries in Asia is projected to grow 4.8% in 2024.
                                                                     The solid economic outlook for Asia is shown by, among others,
In general, Bank Jatim has met the expectations of its               Indonesia rising again to become an upper-middle income
Stakeholders. Various targets that have been set have been           country, which shows the large potential for consumption and
realized in 2023. Credit provided reached 100.04% with a             investment. The high commitment in structural reforms shown
realization of IDR 54.76 trillion in 2023. In terms of income, the   by several Asian countries such as India, Indonesia, Thailand,
achievement of interest income was 104.44% with a realization        and the Philippines is also expected to further accelerate the
in 2023 of IDR 7. 36 trillion. The CAR ratio in 2023 will be         growth of the Asian region, and in turn the global economy.
25.71%, with a target achievement of 118.26%.                        India’s economic growth is expected to continue solidly in
                                                                     2024, the highest among G20 countries. India, which accounts
In the future, Bank Jatim will continue to implement the             for three-quarters of South Asia’s economic output, is expected
strategies that have been determined, and is committed to            by the IMF to grow by 6.1 percent this year and increase by
being able to play an active role in the BPD transformation          2024.
program which has high resilience and competitiveness while
continuing to act as an agent of development in the region           Indonesia’s economy is showing economic resilience and a
through inclusive and sustainable growth.                            strong recovery amidst global challenges. Indonesia’s economic
                                                                     growth projection for 2024 is expected to be maintained at
Obstacles Faced by Banks and Efforts to                              5.2%. National political stability is expected to be maintained
Overcome Them                                                        and it encourges public and business optimism to continue
                                                                     economic activities and the positive trend of new job openings.
Despite showing good performance, the Bank also faced                In addition, improving the level of public welfare will also
various obstacles. These obstacles include the digitalization        be a driving factor for consumption in 2024. Government
of business processes that have not been optimal and the             consumption in 2024 is projected to grow relatively high.
security of information technology systems that must be              The holding of simultaneous elections and regional elections
improved continuously. To overcome these obstacles, the              in 2024 is one of the pillars of the growth of government
Bank has a strategy, namely by improving cyber security,             consumption in 2024.
among others, by managing cyber security, mandatory cyber
risk assessment, mandatory testing of the bank’s information         The capacity and development of the financial services sector
technology vulnerability, assessment of cyber maturity level,        in 2024 will still be influenced by global and national economic
and implementation of the Bank’s cyber security testing.             sentiment. The future development of the banking industry
                                                                     faces some challenges and opportunities that could shape a
In addition, the quality of the Bank’s human resources is also       profound transformation in the way banks operate and interact
still inadequate. To overcome these obstacles, the Bank has          with customers. One of the main trends is the use of digital
improved the management of Human resources (HR). This is             technologies that continue to grow, such as artificial intelligence
carried out, among others, by conducting workload analysis           (AI), data analytics, and blockchain technology. Banks are
and mapping HR needs, compiling talent pool mechanisms               striving to improve operational efficiency and provide a more
and career paths for HR by paying attention to the mission           personalized and seamless customer experience by leveraging
of becoming an IT and Digital-based bank and compiling               these technological innovations. A concrete example of
programs to improve the competence and quality of human              this development can be seen in the application of artificial
resources by conducting training for customers by launching          intelligence in credit risk analysis. Banks are using AI algorithms
J-Connect as Bank Jatim’s digital banking branding.                  to evaluate customers’ credit profiles more accurately and
                                                                     quickly, enabling them to make smarter credit decisions. This
                                                                     not only improves the credit approval process but also reduces
                                                                     risk for banks.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report           45
Page 48
In addition, the development of fintech and the integration of        3. Optimization and improvement of information technology-
digital finance are important factors in formulating the future of       based products and services while taking into account the
the banking industry. The adoption of digital payments, peer-            principles of prudential banking and security.
to-peer lending platforms, and app-based financial services is        4. Market expansion and deepening to improve business and
becoming more common. Banks are striving to adapt to this                achieve financial inclusion through service improvement
trend by providing more digitally accessible banking services,           and optimization of network roles including smart selling
including online account opening, instant money transfers, and           agents.
financial management through mobile applications.                     5. Increased profitability through increasing CASA ratio,
                                                                         improving credit quality, sustainable foreign exchange
Considering those mentioned above, Bank Jatim’s policies and             financial services, and developing other digital-based and
strategies steps will focus on the following internal advantages:        customer-oriented.
1. Adequate digital banking technology infrastructure to              6. Expansion and increase cooperation with various parties, to
    compete with the industry.                                           increase business in the field of funds and credit/ financing.
2. Synergy with various parties, such as fintech, local               7. Maintain good relations with customers, especially
    governments, and other related parties.                              shareholders by providing full support for government
3. Diversified financial product and service offerings for a             programs and playing an active role in strategic projects,
    wide variety of customer segments.                                   especially in East Java Province.
4. Having good relationships and synergies with shareholders,         8. Improving digital-based service, building ecosystems
    especially the Provincial Government and Regency/ City               and supporting facilities both with local governments
    Governments.                                                         and the private sector aimed at accelerating Bank Jatim’s
                                                                         performance.
By utilizing its internal advantages, Bank Jatim is optimistic that
it has good prospects in the future. The opportunities for Bank
Jatim in 2024 are as follows:                                         Corporate Governance
1. Shifting public behavior in the use of banking technology.
2. The demographic landscape of the millennial population             The implementation of Corporate Governance at Bank Jatim
     who are active users of the internet and e-commerce, as          always refers to applicable regulations. The implementation
     well as the potential of the digital economy and finance.        of good corporate governance (GCG) can encourage good
3. The positive climate of sustainable economic growth in             performance in the Bank’s business activities. To improve
     East Java.                                                       the implementation of Bank Jatim’s governance sustainably,
4. There are still many market opportunities from local               Bank Jatim always applies the five principles of GCG, namely
     government and private ecosystems.                               transparency, accountability, responsibility, independence, and
5. The potential market share of Bank Jatim, especially Civil         fairness. These five principles are implemented through fulfilling
     Servants (PNS).                                                  the interests of shareholders and giving equal treatment to
6. Regional-based economic development programs in East               all shareholders; sustainability and durability; implementing
     Java Province.                                                   disclosure and transparency; and carrying out the duties and
7. Utilization of Artificial Intelligence (AI) and new technologies   responsibilities of the Board of Commissioners in carrying out
     in improving operational efficiency and customer                 the function of supervision and providing advice to the Board
     experience.                                                      of Directors.


Based on the analysis of its advantages and opportunities, the        In fulfilling the interests of shareholders, the Bank has adhered
formulation of the Bank’s business development strategy in            to shareholder rights, including the fair and timely payment
2024 is focused on the following:                                     of dividends. New shareholders originating from this Public
1. Loan distribution/ financing activities, especially to             Offering will acquire the same and equivalent rights as existing
    productive and potential economic sectors balanced                shareholders of the Company, including the right to receive
    with the development and improvement of facilities and            dividends. The amount of dividends to be distributed is linked
    infrastructure supporting business activities (improvement        to the Bank’s profits for the respective financial year, considering
    of provisions and supporting technology) while still taking       the Company’s profit level, and without diminishing the rights of
    into account prudential banking principles.                       the General Meeting of Shareholders of the Bank to determine
2. Utilization of strategic projects, to encourage economic           otherwise in accordance with the Bank’s Articles of Association.
    growth and improve business performance through                   In addition to dividend distribution, the Bank has also fulfilled
    productive loan distribution to strategic sectors and             the following shareholder rights:
    MSMEs, especially in East Java Province.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
46      2023 Annual Report
Page 49
                                                                                                      REPORT OF DIRECTORS
                                                                                              AND BOARD OF COMMISSIONERS




1. Series A shares confer special rights to their holders in        proper, accountable manner, and in accordance with applicable
   terms of quorum attendance and approval at the General           legal regulations.
   Meeting of Shareholders (GMS) for:
   a. Attending and approving the appointment, dismissal,           One of the continuous expectations of customers that Bank
       and approval of resignations of the Board of Directors       Jatim consistently realizes is the provision of equal services
       and Board of Commissioners.                                  for all, without discriminating based on background, ethnicity,
   b. Attending and approving changes to the Articles of            race, gender, religion, political views, and so on. Furthermore,
       Association involving the issuance of equity securities      equality is also extended to customers falling into the category
       or changes in the subscribed and paid-up capital.            of special needs, including those with disabilities, such as those
   c. Attending and approving the contribution of shares in         experiencing physical, intellectual, mental, and/or sensory
       the form of assets other than cash, whether tangible or      limitations. Bank Jatim’s commitment to providing the best
       intangible.                                                  products and services, including equal treatment, is driven by
   d. Attending and approving mergers, consolidations,              the awareness that customers have these rights.
       acquisitions, separations, and filing for bankruptcy and
       the dissolution of the Bank.                                 Bank Jatim collaborates with suppliers/vendors/business
2. Except for the special rights as mentioned above,                partners to fulfill the goods and services needed in its
   shareholders of series B have the same rights.                   operations. This policy is adopted because the Bank cannot
                                                                    meet all its needs for goods and services independently. To
The Bank has conducted the Annual General Meeting (AGM)             obtain goods and services with the best quality and in line with
in a timely manner. The Annual General Meeting for the              the required criteria and specifications, all suppliers affiliated
2022 Fiscal Year was held on April 12, 2023. The Annual             with Bank Jatim must meet prerequisites and general policies
General Meeting was carried out successfully, adhering to the       as stipulated in the Board of Directors Decree No. 060/03/34/
predetermined agenda.                                               DIR/UMM/KEP, dated October 4, 2021, regarding the Standard
                                                                    Operating Procedure (SOP) for Procurement of Goods/Services
Bank Jatim has treated all shareholders equally. Unless otherwise   at PT Bank Pembangunan Daerah Jawa Timur Tbk. Specifically,
specified in the Articles of Association, holders of Series A       the SOP governs electronic procurement, including the
and Series B shares have equal rights, and each share carries       management of provider data through the Vendor Management
one voting right. All shareholders have equal rights to obtain      System (VMS).
information related to the Bank. Bank Jatim provides equal
treatment to all shareholders in providing information required     The presence of Bank Jatim directly benefits the community
by investors or shareholders to avoid inside information that is    by providing various banking products and services throughout
known only to the Majority Shareholders.                            the regions of districts/cities in East Java. In addition to direct
                                                                    benefits in the form of banking services, the presence of Bank
In ensuring sustainability and resilience, Bank Jatim has           Jatim also provides several indirect benefits to the community.
measured sustainability performance and reported it in              These benefits are realized through the implementation
the Sustainability Report annually. The Bank consistently           of Corporate Social Responsibility and Environmental
engages stakeholders in determining material sustainability         Responsibility (CSR & ER) programs. CSR & ER represent Bank
issues faced by the Bank, communicating them to the Board           Jatim’s commitment to participating in sustainable economic
of Commissioners. Stakeholders are defined as entities or           development to improve the quality of life and the environment,
individuals influenced by the company’s activities, products,       benefiting the bank itself, the local community, and society at
and services. Conversely, their existence also influences the       large.
Bank in achieving the success of implementing strategies and
goals.                                                              The operational activities of the banking industry do not have a
                                                                    direct impact on environmental sustainability. Nevertheless, as
Stakeholder engagement is directed towards the Bank’s               a credit provider, banks have a significant role and responsibility
business interests while considering corporate social               in promoting environmental sustainability by carefully assessing
responsibility, environmental concerns, and prioritizing            projects financed by their debtors. In this regard, banks must
communication with various strategic partners. The stakeholder      ensure that the projects undertaken by debtors do not have
engagement process includes Bank Jatim’s efforts to meet the        the potential, let alone factual, negative impacts on the
expectations of each stakeholder using available resources in a     environment.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report           47
Page 50
Bank Jatim is committed to supporting sustainable development,         of ethics, the management has established a transparent and
which aims to guarantee the integrity of the environment, as           fair reporting mechanism through the Whistleblowing System.
well as the safety, capacity, well-being, and quality of life for
both the current and future generations. This goal can only            Regarding the Bank’s resilience, the Board of Commissioners
be achieved through development processes that prioritize              emphasizes the effectiveness of risk management and internal
the harmony between economic, social, and environmental                control systems. Through the Risk Monitoring Committee and
aspects. Harmony is crucial because development efforts solely         the Audit Committee, the Board of Commissioners ensures
targeting economic growth can lead to social disparities and a         that risk management and internal control systems operate
decline in the quality of the environment with all its implications.   effectively.


The implementation of sustainable finance and sustainable              Bank Jatim consistently applies the necessary information
development is realized by Bank Jatim by referring to                  disclosure for stakeholders. Regarding share ownership, the
various applicable regulations. One such regulation is the             Bank has disclosed information such as shareholders with 5%
Sustainable Finance OJK Regulation, which mandates banks               or more ownership, direct and indirect ownership of major
to develop a Sustainable Finance Action Plan (RKAB) since              shareholders and/or large shareholders, and the ownership
the regulation came into effect on January 1, 2019. Following          of shares by the Directors and Board of Commissioners,
this, based on the Technical Guidelines for Banks Related to           both direct and indirect. The Bank also discloses information
the Implementation of OJK Regulation No.51/POJK/03/2017                through its annual report, which includes the company’s vision,
regarding the Implementation of Sustainable Finance for                mission, objectives, financial and non-financial performance,
Financial Services Institutions, Issuers, and Public Companies         dividend policies, detailed biographies of all Directors and
issued by the Financial Services Authority (OJK), Bank Jatim           Board of Commissioners, attendance details of each Director
continues to extend credit to sectors that adhere to the               and Board of Commissioners in all meetings held throughout
Sustainable Business Activity Criteria (KKUB), prioritizing efforts    the year, remuneration amounts for each member of the
towards sustainable use of natural resources.                          Board of Directors and Board of Commissioners, related party
                                                                       transactions, and details of the Public Accountant’s office along
In addition to having financing policies aligned with the              with audit and non-audit fees.
Sustainable Business Activity Criteria (KKUB), Bank Jatim’s
contribution to environmental sustainability is also manifested        In addition to the annual report, the Bank also provides
through environmentally friendly office operations, adhering to        corporate information through quarterly reports, financial
the 3R principle (Reduce, Reuse, and Recycle). This principle          statements available on the Bank’s website. The public can
is realized through effective management related to the use            access all financial and non-financial reports submitted by Bank
of raw materials/paper, energy (oil and electricity), and water.       Jatim transparently through various available channels, in a
                                                                       timely, complete, and accurate manner.
Bank Jatim respects and upholds the differences among
individuals, whether in terms of gender, class, ethnicity,             The Bank’s information disclosure is carried out through internal
religion, race, social status, political views, physical condition,    and external communication. Bank Jatim maintains internal
and more. Diversity is considered a certainty and contributes to       communication networks between the Bank’s management
making social life more colorful. In line with this principle, Bank    and employees and ensures the effective implementation of
Jatim is committed to treating all employees equally in terms of       communication within the organization. Considering this, Bank
work opportunities, performance evaluations, including career          Jatim has developed several communication channels, including
advancement, competency development, remuneration,                     the Bank Jatim Magazine, the human resources intranet portal,
and more. Based on this commitment, the Bank provides                  and internal information media providing information to all
equal opportunities for employment and filling positions               Bank Jatim employees about various company activities and
based on the capacity and competence of employees. Equal               information needed in daily operations.
employment opportunities are also maintained by Bank Jatim
in the employee recruitment process.                                   Bank Jatim uses various communication channels both
                                                                       internally and externally to build the company’s image through
The Bank has provided contact details through its website or           print media, electronic media, broadcast media, display media,
Annual Report, allowing stakeholders to use them to convey             and others. To facilitate the public in obtaining the latest
complaints, suggestions, or possible violations of their rights. In    information about the company, Bank Jatim has a corporate
enhancing the implementation of Good Corporate Governance              website accessible through www.bankjatim.co.id, which
(GCG) at Bank Jatim, the management is committed to running            also serves as a service portal. On the Bank Jatim website,
the company professionally based on behavior that aligns with          detailed information about Bank Jatim, ranging from history,
the code of ethics. Therefore, if there are violations of the code




        PT Bank Pembangunan Daerah Jawa Timur Tbk
48      2023 Annual Report
Page 51
                                                                                                     REPORT OF DIRECTORS
                                                                                             AND BOARD OF COMMISSIONERS




organizational structure, vision and mission, management,          Performance Assessment of
network, achievements, fund products, credit products, and         Committees under The Board of
Bank Jatim services, both conventional and sharia, can be          Directors
found. Additionally, the website also includes information on
CSR disbursements and the latest information/news about
Bank Jatim.                                                        Throughout the year 2023, the Board of Directors assessed that
                                                                   the committees under its purview had fulfilled their duties and
To maintain the trust of shareholders and stakeholders, the Bank   responsibilities effectively.
Jatim Investor Relations team directly engages with investors,
analysts, and shareholders to present the Bank’s performance.      ASSET LIABILITY COMMITTEE (ALCO)
Bank Jatim is committed to always being transparent in             ALCO is a decision-making committee for managing assets
providing reports, both periodic and incidental reports, to        and liabilities in line with defined objectives. In order to reduce
regulators in accordance with regulations in a timely manner.      and eliminate risks, especially Liquidity Risk, Interest Rate Risk,
                                                                   and Exchange Rate Risk in banking, active cooperation and
Regarding the responsibilities of the Board of Commissioners,      participation from various decision-makers on both the asset
the Board of Commissioners is the Bank’s governance body           and liabilities sides are essential. Successful collaboration
responsible for general and/or specific oversight as stipulated    relies on each decision-maker understanding their role and the
in the Articles of Association, providing advice to the Board      impact of their decisions on overall business profitability. In the
of Directors, and ensuring that the Bank adheres to good           course of 2023, ALCO held 15 (fifteen) meetings
corporate governance principles. The Board of Commissioners
is accountable to the General Meeting of Shareholders in           RISK MANAGEMENT COMMITTEE
overseeing the Board of Directors’ policies on the Bank’s          The Risk Management Committee is established to maintain
overall operations, which refer to the approved business           risk exposure within acceptable and beneficial limits, ensuring
plan, and ensuring compliance with all applicable regulations.     that the Bank’s business activities remain controlled and adhere
Throughout 2023, the Board of Commissioners has provided           to the principle of prudence. Throughout the year 2023, the
recommendations and fulfilled its duties and responsibilities      Risk Management Committee held 5 (five) meetings.
through forums such as Internal Board of Commissioners
Meetings and Board of Commissioners Meetings with the              HUMAN RESOURCES MANAGEMENT COMMITTEE
Board of Directors.                                                The Human Resources Management Committee is formed to
                                                                   achieve optimal results in deciding critical matters related to
Regarding the composition of the Board of Commissioners, the       Human Capital, both strategically, in terms of policies, and
Bank currently has 75% Independent Commissioners out of the        in alignment with the Human Capital management system
total number of Commissioners in the bank. The composition         following the Bank’s Business Plan. Throughout the year 2023,
of Independent Commissioners as of December 31, 2023,              the Human Resources Management Committee held 20
amounts to 3 (three) out of 4 (four) positions in the Board of     (twenty) meetings.
Commissioners.
                                                                   INFORMATION TECHNOLOGY COMMITTEE
To enhance the role of the Board of Commissioners in performing    The Information Technology Committee is part of the IT
supervisory functions, the Board of Commissioners is assisted      governance structure, providing recommendations while
by three committees: the Audit Committee, Remuneration and         considering efficiency factors to minimize risks associated with
Nomination Committee, and Risk Monitoring Committee.               IT usage and to safeguard the interests of the Bank and its
                                                                   customers. As a manifestation of the IT governance structure
Regarding the development of corporate governance                  to minimize risks associated with IT usage and protect the
implementation in 2023, the Bank carried out periodic GCG          interests, the IT Steering Committee (ITSC) is formed as an
assessments according to the provisions of OJK Regulation          embodiment of the commitment of the Board of Directors
13/SEOJK.03/2017 dated March 17, 2017, concerning the              and Bank Jatim’s management in actively overseeing IT
Implementation of Governance for Commercial Banks. In              management. As regulated in POJK MRTI, the ITSC plays
2023, the Bank conducted an assessment in the first semester,      a role in assisting the Board of Directors in establishing the
resulting in a score of 2,14. The assessment results were          Information Technology Strategic Plan and the Bank’s policies
followed up to improve the effectiveness of the implementation     related to IT usage. During the year 2023, the IT Committee
of good corporate governance continuously.                         held 2 (two) meetings.”




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     2023 Annual Report           49
Page 52
CREDIT OR FINANCING POLICY COMMITTEE                               PRODUCT AND NETWORK COMMITTEE
The Credit or Financing Policy Committee is a committee
formed by the Board of Directors in the context of managing        Product Committee
credit policy which aims to support healthy credit provision and   The Product Committee is a committee formed by the Board of
contains elements of internal control starting from the initial    Directors to discuss, determine and evaluate business strategies
stage of the credit activity process up to the credit monitoring   through product development, both digital and non-digital and
stage by paying attention to the precautionary principle.          both conventional and sharia, including the development of
During 2023, the Credit or Financing Policy Committee has          products that have not existed before and the development of
held 1 (one) meeting.                                              follow-up products, including conducting product evaluations
                                                                   (continued products, developed, discontinued, closed).
CREDIT COMMITTEE                                                   Throughout 2023, there were no product committee meetings
                                                                   held and the process of updating internal provisions regarding
Conventional Credit Committee                                      changes to the grand design Organizational Structure. Updating
The Credit Committee is an operational committee formed            of the Product Committee SOP has been carried out and the
by the Board of Directors to evaluate and/or provide credit        Product Committee SOP has been issued with a Decree from
decisions for the amount and type of credit determined by the      the Directors of PT Bank Pembangunan Daerah Jawa Timur Tbk
Board of Directors by taking into account business development     Number 062/03/80/DIR/PGP/KEP Date 29 December 2023.
without neglecting the principle of prudence including credit
restructuring and settlement.                                      Network Committee
                                                                   The Network Committee plays a role in preparing the
Financing Committee                                                implementation of development, status changes and/or closure
Operational committee formed by the Board of Directors to          of the network as well as determining branch and sub-branch
evaluate and/or provide financing decisions for the amount         classes in network classification. The Network Committee
and type of financing determined by the Board of Directors by      functions as a forum for managing policies and monitoring
taking into account business development without abandoning        the effectiveness of the Bank’s network to ensure success in
the principle of prudence including restructuring and financing    creating optimal profits. During 2023, the Network Sector
settlement.                                                        Committee held 3 (three) meetings.
• Credit Implementation Committee
     During 2023, the Credit Implementation Committee held
     24 (twenty-four) meetings.                                    Changes in the Composition of
• Credit Restructuring Committee                                   Members of The Board of Directors
     During 2023, the Credit Restructuring Committee held 6
     (six) meetings.                                               During 2023, there were changes in the composition of
• Term Loan Facility (TLF) Committee                               members of the Board of Directors. Changes in the composition
     During 2023, the Credit Settlement Committee held 1           of members of the Board of Directors were carried out based
     (one) meeting.                                                on the Bank’s needs. Changes in the composition of members
• Financing Implementation Committee                               of the Board of Directors are as follows:
     During 2023, the Financing Implementation Committee
     held 5 (five) meetings.
• Financing Restructuring Committee
     During 2023, the Financing Restructuring Committee held
     1 (one) meeting
• Committee Delete Financing
     During 2023, the Committee Delete Financing held 2 (two)
     meetings.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
50      2023 Annual Report
Page 53
                                                                                                                                       REPORT OF DIRECTORS
                                                                                                                               AND BOARD OF COMMISSIONERS




Composition of The Board of Directors before the Annual GMS for Financial Year 2022


The composition of the Board of Directors of Bank Jatim before the 2022 Annual GMS is 6 (six) people consisting of 1 (one) President
Director and 5 (five) Directors as follows:


Busrul Iman                  : President Director
Tonny Prasetyo *)            : Director of Operations
Edi Masrianto                : Director of Finance, Treasury & Global Services
R. Arief Wicaksono           : Director of Micro, Retail, and Medium
Zulhelfi Abidin **)          : Director of IT & Digital
Eko Susetyono                : Director of Risk Management
*) appointed as a temporary replacement for the Director of Compliance, so that the position of Director of Operations is temporarily released to fulfill aspects of independence.
**) appointed to concurrently serve as Director of Operations. This is in accordance with the Decree of the Board of Commissioners No.061/10/DKM/KEP dated December 13,
    2022




Composition of The Board of Directors after the Annual GMS for Financial Year 2022

On April 12, 2023, the 2022 Annual GMS approved and appointed Tonny Prasetyo as Compliance Director and Arif Suhirman as
Operations Director. So, the composition of the Board of Directors of Bank Jatim after the 2022 Annual GMS is 7 (seven) people
consisting of 1 (one) President Director and 6 (six) Directors as follows:


Busrul Iman                     :   President Director
Tonny Prasetyo *)               :   Director of Compliance
Edi Masrianto                   :   Director of Finance, Treasury & Global Services
R. Arief Wicaksono              :   Director of Micro, Retail & Medium
Zulhelfi Abidin                 :   Director of IT & Digital
Eko Susetyono                   :   Director of Risk Management
Arif Suhirman **)               :   Director of Operations
*) Effectively passed the fit and proper test by the Financial Services Authority as stated in the Decision of Members of the Board of Commissioners of the Financial Services
    Authority Number KEPR-38/D.03/2023 dated 26 May 2023.
**) Effectively pass the fit and proper test by the Financial Services Authority as per the Decree of the Members of the Board of Commissioners of the Financial Services
    Authority Number KEPR-132/D.03/2023 dated 11 October 2023.




Closing

The Board of Directors would like to express their gratitude to the Board of Commissioners for being an important part of Bank
Jatim’s business activities in the 2023 Financial Year. The supervision and advice provided by the Board of Commissioners gave
direction for the policies taken by management. The Board of Directors also expressed its thanks to stakeholders and shareholders.


Bank Jatim continues to make improvements on all fronts as a commitment to increase its contribution to building the regional
economy, which will ultimately impact the national economy. Going forward, Bank Jatim will always carry out the implementation of
the strategies that have been determined, and is committed to being able to play an active role in the BPD transformation program
that has high resilience and competitiveness while continuing to act as an agent of development in the region through inclusive and
sustainable growth.




                                                                      Surabaya, January 2024
                                                                 On behalf of the Board of Directors




                                                                               Busrul Iman
                                                                             President Director




                                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                   2023 Annual Report                         51
Page 54
Board of
Commissioners’
Report




     PT Bank Pembangunan Daerah Jawa Timur Tbk
52   2023 Annual Report
Page 55
                                                                                                    REPORT OF DIRECTORS
                                                                                            AND BOARD OF COMMISSIONERS




    Dear Shareholders and Stakeholders,
    Praise to the presence of Allah SWT, for the blessings of the mercy and grace, Bank
    Jatim can record good performance in 2023.



The Board of Commissioners expresses its appreciation to the       issued 15 (fiveteen) letters of approval which were the authority
Board of Directors for being able to maintain and provide good     of the Board of Commissioners as regulated in the Articles
performance amidst conditions of incomplete post-pandemic          of Association and applicable regulations. Some of these
economic recovery and global uncertainty due to geopolitical       agreements are conveyed as follows.
dynamics.                                                          1. Audit Plan for the Internal Audit Division for the 2023
                                                                       Period;
On this occasion, the Board of Commissioners carries out the       2. Implementation of the Annual General Meeting of
company’s mandate to submit supervisory reports and provide            Shareholders for the 2022 Financial Year of PT Bank
advice to the Board of Directors throughout 2023. In this              Pembangunan Daerah Jawa Timur Tbk;
report, we present an assessment of the performance of the         3. Adjustment of the Bank Jatim Business Plan for 2023;
Board of Directors, views on business prospects prepared by        4. Submission of Key Performance Indicator (KPI) Data for
the Board of Directors, views on the implementation of Bank            Bank Jatim Management in 2022;
governance, as well as composition and changes composition         5. Procurement of a Public Accounting Firm (KAP) in the
of members of the Board of Commissioners. In the following,            context of Auditing Bank Jatim’s Financial Reports as part
we submit a report on the supervision and provision of advice          of the Bank Business Group (KUB) Due Diligence Process
from the Board of Commissioners to the Bank’s management               with Bank NTB Syariah;
for the 2023 financial year.                                       6. Revised Bank Jatim Bank Business Plan for 2023;
                                                                   7. Replacement of the Vice President of Internal Audit;
                                                                   8. Sharia Supervisory Board (PDPS) training for Sharia
Performance Assessment of Board of                                     Supervisory Board Candidates
Directors                                                          9. Sharia Supervisory Board (DPS) certification;
                                                                   10. Changes in Credit or Financing Product and Activity Policies
Before conveying the Board of Commissioners’ views on the              (KPA PAP);
performance achievements of the Board of Directors, the            11. Appointment of a Public Accountant and Public Accounting
Board of Commissioners will convey the frequency and method            Firm to audit the Financial Report of PT Bank Pembangunan
of providing advice to the Board of Directors as well as the           Daerah Jawa Timur Tbk for the 2023 Financial Year;
Board of Commissioners’ supervision of the formulation of          12. Process of Providing Credit to Related Parties;
alternatives and implementation of strategies. Providing advice    13. Bank Jatim Business Plan for 2024;
from the Board of Commissioners to the Board of Directors          14. Proposed Company Handbook (BPP) Policies & Procedures
is carried out formally and informally in various means, both          for Capital Participation Activities; And
through online and offline meetings, as well as in writing.        15. Anti-Bribery Management System Policy (SMAP).
Formal advice is provided through Joint Meetings of the
Board of Commissioners together with the Board of Directors.       The Board of Commissioners always carries out its duties,
Meanwhile, informal advice is provided through on-site visits      obligations and responsibilities in order to supervise the
and sharing sessions. During 2023, the Board of Commissioners      formulation of alternatives, determination and implementation
has held 20 (twenty) joint meetings with the Board of Directors.   of the Bank’s strategy in accordance with applicable laws and
                                                                   regulations and the Bank’s Articles of Association. Supervision
The Board of Commissioners provided recommendations                of the formulation of the Bank’s strategy is carried out by
and carried out the duties and responsibilities of the Board       supervising the preparation of the Bank’s Business Plan (RBB)
of Commissioners. During 2023, the Board of Commissioners          and providing approval for the Corporate Plan and Business




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     2023 Annual Report         53
Page 56
Plan. Meanwhile, supervision of strategy implementation is                                                                                                                                                                                                   creates the top 10 (ten) global challenges that can be identified
carried out through monitoring and providing advice and                                                                                                                                                                                                      in the form of, 1) energy and environmental security, 2) conflict
direction to the Board of Directors in carrying out the Bank’s                                                                                                                                                                                               and poverty, 3) competing in the new era of globalization,
business activities.                                                                                                                                                                                                                                         4) global imbalance, 5) the emergence of new powers, 6)
                                                                                                                                                                                                                                                             exclusion economy in the middle east, 7) global companies,
In providing an assessment of the performance of the Board of                                                                                                                                                                                                global impact, 8) global health crisis, 9) global governance
Directors, the Board of Commissioners considers several aspects                                                                                                                                                                                              impasse, and 10) global poverty.
as a basis for the assessment. These aspects include economic
conditions, operational performance achievements, and the                                                                                                                                                                                                    Based on IMF projections in the World Economic Outlook
company’s health level. An assessment of the performance of                                                                                                                                                                                                  Update January 2023 and previous editions, it projects that
the Board of Directors can be conveyed as follows.                                                                                                                                                                                                           recovery Gross Domestic Product (GDP) growth will form a
                                                                                                                                                                                                                                                             V curve after the COVID-19 pandemic. World GDP growth
Economic Conditions                                                                                                                                                                                                                                          reached 2.8% in 2019, -3.1% in 2020, increasing to 6.2% in
                                                                                                                                                                                                                                                             2021, decreasing to 3.5% in 2022, falling again to 3.0% in
Global economic conditions are identified by major shifts that                                                                                                                                                                                               2023, and is projected to fall again to 2.9% in 2024. Meanwhile,
are shaking our world which can be felt now after the Covid-19                                                                                                                                                                                               Indonesia’s V curve appears flatter, where in 2019 it grew 5.0%,
pandemic. These include, increasing income inequality,                                                                                                                                                                                                       in 2020 it decreased to -2.1%, in 2021 it grew again 3, 7%,
technology driving changes in employment, increasing                                                                                                                                                                                                         in 2022 it increased to 5.3%, in 2023 it decreased to 5%,
protectionism, increasing migration, and the increasing                                                                                                                                                                                                      meanwhile in 2024 it is projected to reach 5%.
influence of social media and a post-truth world. In turn, it


The World Uncertainty Index before the Gaza war on October 7 2023 appears in the following diagram:

     60,000


                                                                                                                                                                                                                                                                                                                                                                                  55,685
     50,000



     40,000




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           30,702
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       29,344
     30,000




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         26,500
     20,000




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    17,905
                                                                                                                                                                                                                                                                                                                                                                                                                          11,889




     10,000



         0
              2010q1
                       2010q2
                                2010q3
                                         2010q4
                                                  2011q1
                                                           2011q2
                                                                    2011q3
                                                                             2011q4
                                                                                      2012q1
                                                                                               2012q2
                                                                                                        2012q3
                                                                                                                 2012q4
                                                                                                                          2013q1
                                                                                                                                   2013q2
                                                                                                                                            2013q3
                                                                                                                                                     2013q4
                                                                                                                                                              2014q1
                                                                                                                                                                       2014q2
                                                                                                                                                                                2014q3
                                                                                                                                                                                         2014q4
                                                                                                                                                                                                  2015q1
                                                                                                                                                                                                           2015q2
                                                                                                                                                                                                                    2015q3
                                                                                                                                                                                                                             2015q4
                                                                                                                                                                                                                                      2016q1
                                                                                                                                                                                                                                               2016q2
                                                                                                                                                                                                                                                        2016q3
                                                                                                                                                                                                                                                                 2016q4
                                                                                                                                                                                                                                                                          2017q1
                                                                                                                                                                                                                                                                                   2017q2
                                                                                                                                                                                                                                                                                            2017q3
                                                                                                                                                                                                                                                                                                     2017q4
                                                                                                                                                                                                                                                                                                              2018q1
                                                                                                                                                                                                                                                                                                                       2018q2
                                                                                                                                                                                                                                                                                                                                2018q3
                                                                                                                                                                                                                                                                                                                                         2018q4
                                                                                                                                                                                                                                                                                                                                                  2019q1
                                                                                                                                                                                                                                                                                                                                                           2019q2
                                                                                                                                                                                                                                                                                                                                                                    2019q3
                                                                                                                                                                                                                                                                                                                                                                             2019q4
                                                                                                                                                                                                                                                                                                                                                                                      2020q1
                                                                                                                                                                                                                                                                                                                                                                                               2020q2
                                                                                                                                                                                                                                                                                                                                                                                                        2020q3
                                                                                                                                                                                                                                                                                                                                                                                                                 2020q4
                                                                                                                                                                                                                                                                                                                                                                                                                          2021q1
                                                                                                                                                                                                                                                                                                                                                                                                                                   2021q2
                                                                                                                                                                                                                                                                                                                                                                                                                                            2021q3
                                                                                                                                                                                                                                                                                                                                                                                                                                                     2021q4
                                                                                                                                                                                                                                                                                                                                                                                                                                                              2022q1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2022q2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                2022q3
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         2022q4
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  2022q1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           2022q2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    2022q3




                                                                                                                          Source: https://worlduncertaintyindex.com | World Uncertainty Index-221229




On the national economic side, Indonesia’s challenges from                                                                                                                                                                                                   challenges from domestic factors include increasing subsidies
external factors include US monetary policy (taper tantrum) to                                                                                                                                                                                               (pertalite, diesel, Pertamax, biodiesel, LPG), direct cash
control inflation, the Ukraine-Russia war, in the form of rising oil                                                                                                                                                                                         assistance and other social assistance, increasing political
prices and agricultural/food commodities as well as increasing                                                                                                                                                                                               tensions, as well as social tensions, high youth unemployment,
logistics costs, Israel’s indiscriminate attacks on Gaza, US-                                                                                                                                                                                                recovery is slow, growth is still slow. around 5% until 2024, as
China conflict, and China’s economic slowdown. Meanwhile,                                                                                                                                                                                                    well as weakening political and economic institutions.




          PT Bank Pembangunan Daerah Jawa Timur Tbk
54        2023 Annual Report
Page 57
                                                                                                                    REPORT OF DIRECTORS
                                                                                                            AND BOARD OF COMMISSIONERS




The ups and downs of the Indonesian economy compared to the world economy in terms of GDP growth shows that the average
of Indonesian economic growth is above world economic growth. When the world economy declines sharply or experiences a
recession, Indonesia’s economic growth only slows down slightly, but when the world economy recovers, the Indonesian economy
takes longer to recover. The economic crisis occurred in Indonesia was mostly caused by internal factors, as shown in the following
diagram:


       12
                               10.9
                                                      9.9
           8                                                                            8.2
                                                                  7.0
                5,7                                                                                                  6.2                   6.0
                                                                                                      4.9                            5.0      5.3
           4                                                                                                               5.0
                                          5.0                                                                                          3.7        5.1
                                                         2.2                                                       4.6
                                                                                        3.1                                                   3.1 3.0
                                                                    2.5                        2.8
           0                 1.4
                                           0.6              0.4
                                                                                                                                           -2.1
                                                                                                                  -1.3
           -4         -2.2
                                                                                                                                       -3.1


           -8


       -12
                                                                                              -13.1

       -16
                 1961
                 1962
                 1963
                 1964
                 1965
                 1966
                 1967
                 1968
                 1969
                 1970
                 1971
                 1972
                 1973
                 1974
                 1975
                 1976
                 1977
                 1978
                 1979
                 1980
                 1981
                 1982
                 1983
                 1984
                 1985
                 1986
                 1987
                 1988
                 1989
                 1990
                 1991
                 1992
                 1993
                 1994
                 1995
                 1996
                 1997
                 1998
                 1999
                 2000
                 2001
                 2002
                 2003
                 2004
                 2005
                 2006
                 2007
                 2008
                 2009
                 2010
                 2011
                 2012
                 2013
                 2014
                 2015
                 2016
                 2017
                 2018
                 2019
                 2020
                 2021
                 2022
                2023*
                                                                   Indonesia          World

* Q1-Q3.
Sources : World Bank; and BPS-Statistics Indonesia | GDP_GROWTH_INA_WORLD-1961-2023-230808




From the side of banking industry, digital transformation                       Performance Achievements
is the use of information technology that began in the mid-
21st century, in the form of information systems enabling easy
access to resource components such as servers, applications                     In the midst of these economic conditions, the Board of
and databases via internet networks, the internet of things                     Directors was able to face the challenges and opportunities
and artificial intelligence. All of them are employed to                        that occurred by recording good performance in 2023. From
encourage gradual functional improvements in business                           the operational side, Total distribution of Commercial and
processes throughout the organization’s value chain. Digital                    Corporate Credit in 2023 will amount to IDR7.06 trillion, an
transformation enables organizations to increase business                       increase of 6.80% compared to 2022 which amounted to
flexibility and resilience, lower costs, increase profitability,                IDR6.61 trillion. Total Consumer Credit in 2023 will reach
reduce environmental impact, increase customer satisfaction,                    IDR30.26 trillion, an increase of 9.27% compared to 2022 which
and deliver greater economic and social value to stakeholders.                  was IDR27.69 trillion. From Micro, Retail and Program Credit, in
Thus, digital transformation refers to the application of                       2023 credit will be distributed amounting to IDR14.25 trillion,
digital technology to transform services or businesses. This                    an increase of IDR7.98 trillion or 127.32% compared to 2022 of
is achieved by replacing manual (non-digital) processes with                    IDR6.27 trillion.
digital processes or replacing outdated digital technology with
more up-to-date digital technology.




                                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                     2023 Annual Report         55
Page 58
In the Sharia segment, the realization of Sharia DPK in 2023        Outlook on Business Prospects as
was IDR 2.60 trillion, an increase of IDR 537 billion or 20.65%     Prepared by The Board Of Directors
compared to 2022 of IDR 2.06 trillion. The number of Bank
Jatim UUS DPK customers in 2023 was 297,498 customers, an
increase of 32,828 customers or 12.40% compared to 2022.            Global economic challenges are marked by concerns about
The amount of Sharia Financing in 2023 was IDR 2.18 trillion,       the world economic slowdown, increasing debt burdens,
an increase of IDR 284 billion or 14.94% compared to 2022 of        inflation threats, and geopolitical tensions. The International
IDR 1 .90 trillion. Good achievements can also be seen from         Monetary Fund (IMF) identifies 7 factors weakening global
the financial side. In 2023, Bank Jatim’s net interest and sharia   growth, including the war in Ukraine, inflation, recession, debt
income was recorded at IDR 140,126 million, an increase of          difficulties, China, social instability, and fragmentation. The
16.04% from 2022 which amounted to IDR 120,756 million.             World Economic Forum (WEF) identifies a turbulent global
                                                                    context, including ongoing COVID-19 pandemic impacts, risks
Profit for the current year in 2023 reached IDR1,470,105            to economic recovery, economic divergence, social cohesion
million, a decrease of -4.71% compared to 2022 which reached        erosion, geopolitical tensions, climate action failure risks, and
IDR1,542,824 million. The decrease in profit for the year has       secure digitization.
no effect on the increase in total assets and total equity. In
2023, Bank Jatim’s total assets will amount to IDR103,854,773       World GDP growth projections for 2024 post-COVID-19
million, an increase of 0.80% from 2022 which amounted to           recovery show a decline from 3.0% in 2023 to 2.9% in 2024
IDR103,031,367 million. Equity in 2023 will reach IDR12,151,069     globally, with the U.S. projected to decrease from 2.1% to
million, an increase of 6.16% compared to the previous year         1.5%, China from 5.0% to 4.2%, while Indonesia is projected to
which reached IDR11,445,861 million.                                remain relatively flat at 5.0% in both 2023 and 2024. The release
                                                                    from https://worlduncertaintyindex.com indicates that the
The Bank Health Level                                               World Uncertainty Index was 26.50 in Q4 2022. Subsequently,
                                                                    before the Gaza conflict on October 7, 2023, it experienced
In addition to operational and financial performance, the Bank’s    a decrease, reaching 17.90 in Q3 2023. On the other hand,
Health Level is a consideration for the Board of Commissioners      domestic economic challenges in Indonesia include increasing
in evaluating the performance of the Directors. The bank            subsidies (pertalite, solar, pertamax, biodiesel, LPG), direct
conducts a self-assessment of the Bank Health Level using           cash assistance, and other social aid. Political tensions are on
a Risk-based approach, guided by the Financial Services             the rise, as are social tensions. High youth unemployment,
Authority Regulation No. 4/POJK.03/2016 regarding the               slow economic recovery, and a growth rate expected to remain
Assessment of General Bank Health Level. The assessment             around 5% until 2024 are additional challenges. Additionally,
covers risk and bank performance, which can be seen from the        political and economic institutions are weakening.
final rating assessment (composite rating). The Bank Health
Level assessment employs a risk-based bank rating approach,         The development direction of banking digitization is expected
considering 4 risk factors: Risk Profile, Good Corporate            to accelerate with the issuance of Financial Services Authority
Governance (GCG), Earnings, and Capital.                            Regulation (POJK) No. 12/POJK.3/2021 on Commercial Banks
                                                                    accommodating Digital Banks. Globally, the dynamics of the
The individual self-assessment results for Bank Health Level in     digital financial and banking industry respond to the emergence
East Java as of December 31, 2023, position it at a composite       of Digital Bank.
rating of 2 (Healthy), reflecting the overall health of the bank,
capable of facing significant negative influences from changes      Considering the economic conditions, the Board of
in business conditions and other external factors. Weaknesses,      Commissioners is confident that the business prospects
if any, are generally considered less significant.                  prepared by the Board are appropriate. They believe Bank Jatim
                                                                    will capitalize on opportunities, such as changes in consumer
                                                                    behavior due to technological disruption, supported by the
                                                                    active use of the internet and e-commerce by the millennial
                                                                    and Generation Z populations in East Java. Collaboration
                                                                    with various parties, including the government, financial/non-
                                                                    financial industries, and the large market potential of Bank
                                                                    Jatim, such as Civil Servants (PNS) and growing SMEs, are seen
                                                                    as opportunities.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
56      2023 Annual Report
Page 59
                                                                                                       REPORT OF DIRECTORS
                                                                                               AND BOARD OF COMMISSIONERS




View on Bank Governance Application                                The risk management framework at Bank Jatim involves the
                                                                   Board of Commissioners overseeing risk through the Audit
                                                                   Committee and Risk Monitoring Committee, the Board
The implementation of good governance principles plays a           overseeing risk policies through related committees, and
crucial role in gaining the trust of investors and stakeholders,   operational levels having the Risk Management Work Unit
reducing capital costs, strengthening the capital market and       (SKMR) working with business units and the Compliance
financial services sector, expanding employment opportunities,     Work Unit (SKK) performing risk identification, measurement,
and promoting economic growth in line with sustainable             mitigation, and control functions. The duties, responsibilities,
development principles. By implementing good governance,           and authority of the Board of Commissioners related to active
it is expected that Bank Jatim can enhance its competitiveness     supervision in risk management activities include, among
in the banking industry and contribute positively to the           others, evaluating and approving risk management policies,
preservation of the environment and social welfare.                assessing the accountability of the Board of Directors in
                                                                   implementing risk management policies, and evaluating as
Good Governance implementation can be driven by ethics and         well as deciding on Director requests related to transactions
regulations. Ethical-driven initiatives stem from the awareness    requiring the approval of the Board of Commissioners.
of Bank Jatim’s individuals, both executives and employees, to
prioritize the Bank’s long-term survival, stakeholder interests,   The Board of Commissioners assesses that Bank Jatim
and avoid short-term profit-seeking practices. Regulatory-         has actively engaged in the identification, measurement,
driven initiatives mandate compliance with governance              monitoring, and control (self-assessment) processes, with the
practices required by prevailing laws and regulations. Both        following elaboration:
approaches complement each other in creating a healthier           1. The Bank Health Level uses a Risk-Based Bank Rating
business environment.                                                   (RBBR) approach that includes an assessment of risk profile,
                                                                        governance, profitability, and capital. Throughout 2023,
The Board of Commissioners actively oversees the Bank’s                 the Bank has timely reported its Health Level during the
management to ensure compliance with prevailing laws and                first and second semesters of 2023 to the regulator.
regulations, providing necessary advice/opinions on strategic      2. Risk Profile that involves the management of 8 types of
actions to achieve the Bank’s objectives. The Board believes            risks - credit risk, market risk, liquidity risk, operational risk,
that GCG implementation in the company has been effective.              legal risk, reputational risk, strategic risk, and compliance
This can be observed in the following GCG components.                   risk. In 2023, Bank Jatim reported the results of the self-
                                                                        assessment of risk profiles for the first, second, third, and
Risk Management                                                         fourth quarters of 2023 to the regulator on time.
                                                                   3. Consolidated Risk Profile of Sharia Business Unit that
In risk management implementation, Bank Jatim consistently              encompasses the management of 10 types of risks. During
complies with applicable regulations and laws. The Bank’s risk          2023, Bank Jatim reported the consolidated risk profile
management is governed by a Product and Activity Policy                 for the Sharia Business Unit for the first, second, third, and
(KPA) and Risk Management Standard Operating Procedures                 fourth quarters of 2023 to the regulator on time.
(SOP), following the Financial Services Authority Regulation
(POJK) and Basel provisions, and banking best practices. The       Risk Management Implementation is carried out within the
Bank reviews these policies regularly to anticipate changes in     framework of Enterprise Risk Management (ERM), providing
business conditions, regulations, and internal bank conditions.    the basis for proactive and forward-looking risk management
Bank Jatim has also developed a Recovery Plan and Recovery         processes. ERM aims to achieve healthy and sustainable
Options to prevent, recover, and improve the financial condition   business growth while comprehensively managing capital.
and business continuity of the Bank in case of financial stress,   ERM integrates risk through aligning risk appetite with
as regulated in OJK Regulation No.14/POJK.03/2017 on action        business strategy. The main goal of implementing Enterprise
plans for systemic banks.                                          Risk Management (ERM) is to enable the Bank to achieve its




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report              57
Page 60
business targets and plans while adhering to the principles of       Internal Control System
caution, maintaining good financial performance, and ensuring
compliance with applicable regulations. This is realized through
the establishment of a strong risk culture that serves as the        The Internal Control System (SPI) is a supervisory mechanism
foundation for control mechanisms within the ERM framework.          continuously established by Bank Jatim’s management. An
Additionally, the bank prepares risk mitigation measures to          effective SPI is a crucial component in management and serves
align risk exposure with the predetermined risk appetite.            as the foundation for the Bank’s healthy and secure operational
                                                                     activities. The effective implementation of an internal control
The Enterprise Risk Management (ERM) framework refers to             system can help the Bank’s management safeguard its assets,
and aligns with the risk management scope established by the         enhance the Bank’s compliance with applicable laws and
Financial Services Authority (Otoritas Jasa Keuangan), which         regulations, and reduce losses, deviations, and violations of
includes, among others:                                              prudential aspects.
1. Active supervision by the Board of Commissioners and
    Directors;                                                       The establishment of a reliable and effective internal control
2. Adequacy of policies, procedures, and limit determinations;       system in the Bank is the responsibility of all risk-taking units,
3. Adequacy of the risk identification, measurement,                 supporting units, and the Internal Audit Unit. The internal
    monitoring, and control processes, as well as the risk           control system for risk refers to the overall internal control
    management information system; and                               system covering:
4. Comprehensive internal control system                             1. The Bank implements the internal control system effectively
                                                                         in the application of Risk Management, referring to
According to the Financial Services Authority regulations, there         established policies and procedures. The implementation
are 8 (eight) types of risks, which include Credit Risk, Market          of the principle of segregation of duties (four eyes principle)
Risk, Liquidity Risk, Operational Risk, Legal Risk, Strategic            has been adequate and consistently executed.
Risk, Compliance Risk, and Reputation Risk. According to the         2. A comprehensive internal control system in the application
regulation of OJK No. 18/POJK.03/2016 on the Implementation              of risk management.
of Risk Management for Commercial Banks, Article 23 stipulates       3. Implementation of a review of the application of risk
the obligation for the Bank to submit its Risk Profile Report to         management.
the OJK every three months (quarterly) to various management         4. The results of the reassessment by the Risk Management
levels, including the Board of Commissioners and the Financial           Unit are presented to the Board of Commissioners, Internal
Services Authority.                                                      Audit Unit, Risk Management Director, Audit Committee,
                                                                         and other relevant Directors as input for the improvement
Furthermore, the Bank discusses the findings of audits as a              of the risk management framework.
basis for risk evaluation and minimizing occurring risks. The        5. Corrections to the findings of internal and external audits
self-assessment of the Bank’s risk profile as of December 2023           monitored by the Internal Audit Unit. Audit findings that
is rated as 2 (PK-2) with a low to moderate inherent risk rating         have not been addressed are communicated by the Internal
and a Quality of Risk Management Implementation (KPMR)                   Audit Unit to the Board of Directors for necessary actions.
rating of Satisfactory. The Board of Commissioners, through the      6. Responsiveness to weaknesses and/or deviations occurring
Risk Monitoring Committee, evaluates that the adequacy of risk           by applicable internal and external regulations.
management is effective and sufficient, reflected in:
1. Adequacy of risk management policies and procedures,              The implementation of a reliable and effective internal control
     as well as effective risk limit determinations, including the   system was the responsibility of all parties involved in the Bank
     establishment of methods for measuring and managing risk        organization, including the following:
     information systems, determining and setting risk limits,       1. The Board of Directors was responsible for creating
     risk rating assessments, contingency planning in worst-             and maintaining an effective internal control system
     case scenarios, and the establishment of internal control           and ensuring that the system ran safely and reliably in
     systems in risk management implementation.                          accordance with the internal control objectives set by the
2. Adequacy of risk identification, measurement, monitoring,             Bank. Meanwhile, the Director in charge of compliance and
     and control processes, and an adequate Risk Management              risk management functions had to play an active role in
     Information System.                                                 preventing irregularities by establishing policies related to
                                                                         the principle of prudence and disseminating information to
                                                                         all employees.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
58      2023 Annual Report
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                                                                                                      REPORT OF DIRECTORS
                                                                                              AND BOARD OF COMMISSIONERS




2. The Board of Commissioners of the Bank was responsible            Whistleblowing System
   for supervising the implementation of internal control in
   general, including the Board of Directors’ policies that
   stipulate such internal control.                                  The success of implementing a comprehensive anti-fraud
3. The Internal Audit Work Unit evaluated and played an active       strategy was highly dependent on the commitment and
   role continuously for improving the effectiveness of the          enthusiasm of the Board of Commissioners and Directors to
   Internal Control System in relation to the implementation         foster an anti-fraud culture and awareness at all levels of the
   of Bank operations which had the potential to cause losses        Bank’s organization. One of them was by making a written
   in achieving targets set by bank management. In addition,         commitment called an Anti-Fraud Declaration signed by the
   Banks needed to pay attention to the implementation of            Board of Commissioners, Directors and all employees at the
   independent internal audits through adequate reporting            Bank’s organizational level. Regarding the implementation of
   channels, and the expertise of internal auditors, especially      the Whistleblowing System (WBS), the Board of Commissioners
   regarding the practice and application of risk assessments.       had a role in reviewing the results of special audit reports from
4. Every bank officer and employee had to understand and             the WBS report.
   implement the internal control system established by
   bank management. Effective internal control increased the         Actions for prevention and detection as well as identification
   responsibilities of bank officers and employees, promote          of potential risk vulnerabilities constituted an early warning
   an adequate risk culture and compliance culture, and              system (EWS) for the operational processes. Identification of
   accelerate the identification process of unhealthy banking        findings that indicated fraud was implied in whistleblowing
   practices and to the organization through an efficient early      policies and mechanisms. Through this mechanism, it was
   detection system.                                                 expected that a violation could be detected early and there
5. Bank external parties included the Financial Services             would be an increase of the level of participation of employees,
   Authority, Bank Indonesia, external auditors and bank             customers and other stakeholders in reporting a violation. Also,
   customers who had an interest in the implementation of            they could use it as an early warning for the possibel violation.
   reliable and effective bank SPI.                                  As a form of Bank Jatim’s commitment to implementing anti-
                                                                     fraud strategies and violation complaint mechanisms and
The Board of Directors periodically reviewed Branch operational      ensuring protection for whistleblowers who have good faith,
performance reports (Branch Leaders), in this case evaluating        the Bank is obliged to:
performance results and examining audit results such as              1. Banks are obliged to protect whistleblowers.
problems with weaknesses in the Internal Control System,             2. The protection provided by banks to whistleblowers is
errors in Financial Reporting or other irregularities (fraud). The       intended to encourage the courage of whistleblowers to
Board of Commissioners and Directors provided direction on               report fraud complaints clearly, in detail and transparently.
the results of the audit report on the adequacy of the internal      3. Whistleblower protection includes protection of the
control system that was carried out by the Internal Audit Work           whistleblower’s identity and the contents of the report.
Unit by holding regular coordination meetings related to             4. The bank is committed to protecting whistleblowers who
issues that were obstacles in the Bank’s operations and the              have good intentions and the bank will comply with all
achievement of the bank’s performance including discussions              relevant laws and regulations as well as applicable best
regarding the results of the Internal Audit findings in a certain        practices in providing protection to whistleblowers.
period. The Board of Commissioners assessed that the internal        5. All fraud complaint reports will be guaranteed confidentiality
control system was effective and adequate.                               and security by the Bank and whistleblowers can obtain
                                                                         information regarding the progress of their complaints.
                                                                     6. The bank provides protection to internal bank employee
                                                                         whistleblowers from dismissal, demotion, discrimination,
                                                                         intimidation and other protections in accordance with
                                                                         applicable laws.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report         59
Page 62
Bank Jatim continues to strive to increase the understanding          organ that carries out company management (management
and awareness of employees and other parties to report                organ), each of which Each has clear authority and responsibility.
violations through whistleblower facilities expecting that they       To optimize the implementation of its duties and obligations,
will be able to create a clean work environment with integrity.       the Board of Commissioners is assisted by supporting organs
In this regard, the following steps have been taken:                  in the form of three committees, namely the Audit Committee,
1. Carrying out an Anti Fraud Strategy (SAF) program,                 Risk Monitoring Committee, and Remuneration and Nomination
     including surprise audits (Operational and Credit).              Committee.
2. Conducting socialization regarding the implementation of
     anti-fraud strategies and whistleblowing systems during          In accordance with the principles of sustainable finance, Bank
     exit meetings regarding audit results and employees,             Jatim gives equal attention to economic, environmental and
     including new employees.                                         social aspects or topics in running its business. Discussion of
3. Providing material related to the implementation of                these topics is conveyed through the Bank Business Plan (RBB)
     anti-fraud strategies and whistleblowing systems in the          and Sustainable Financial Action Plan (RAKB), both of which
     employee promotion program education schedule.                   contain short-term and long-term plans and strategies for Bank
4. Developing the SAF system.                                         Jatim. To get the best plan and strategy, Bank Jatim, which is
                                                                      in the OJK Regional Office IV Surabaya area, needs to consult
The Board of Commissioners viewed that the management of              to get direction and approval from the OJK as the regulator.
the Whistleblowing System at Bank Jatim had been running
well. In 2023, there were 777 reports through whistleblower
facilities. Of the 777 reports, 776 of them had not been resolved     Performance Assessment of Committees
further, because the reports were not included in fraud/meet          Under the Board of Commissioners
the elements of fraud, in the category of customer service
complaints and related to bank operational questions. There           In supervising the company, the Board of Commissioners
was 1 (one) report through the whistleblower facility which had       is assisted by 3 (three) Committees under the Board of
been followed up and had the status “Completed”.                      Commissioners. The three committees are the Audit
                                                                      Committee, Remuneration and Nomination Committee, and
Sustainability Governance                                             Risk Monitoring Committee. Since 2021, Bank Jatim has refined
                                                                      and published the Committee Charter under the Board of
What is no less important, the implementation of GCG in               Commissioners as follows:
accordance with applicable provisions and legislation, as
well as referring to best practice standards from leading             1. Audit Committee Charter through Board of Commissioners
corporations, will enable Bank Jatim to respond to challenges            Decree No. 061/04/DKM/KEP dated 28 June 2022;
and demands from stakeholders and shareholders. Armed with            2. Risk Monitoring Committee Charter through Board of
all this, the Bank is optimistic that it will be able to record the      Commissioners Decree No. 061/05/DKM/KEP dated 28
best performance on an ongoing basis.                                    June 2022.


As part of the Financial Services Institution in Indonesia,           In general, for all the work programs of the three Committees
Bank Jatim implements GCG by referring to the governance              under the Board of Commissioners as stated in the Annual
guidelines issued by Bank Indonesia and the Financial Services        Work Plan of the three Committees for 2023, the Board of
Authority (OJK), both in the form of Financial Services Authority     Commissioners assesses that they have carried out their
Regulations and Financial Services Authority Circular Letters.        respective functions and have been well realized. Apart
In addition, the Bank also adopted the ASEAN Corporate                from that, all studies, opinions and recommendations from
Governance Scorecard published by the ASEAN Capital                   each Committee have also been accepted by the Board
Markets Forum.                                                        of Commissioners and are taken into consideration in the
                                                                      decision-making process on proposals submitted by the Board
Bank Jatim’s governance structure refers to Law no. 40 of             of Directors. Likewise, in terms of communication and working
2007 concerning Limited Liability Companies, which states             relations, the three Committees during 2023 have been well
that the Company’s organs consist of the General Meeting of           established and intense and complement each other to discuss
Shareholders (GMS), Directors and Board of Commissioners.             issues at Bank Jatim and monitor the progress of follow-up
In line with this, the Bank’s management system adopts a              settlements carried out by the Board of Directors.
2 (two) body model (two tier system), namely the Board of
Commissioners as a company organ that carries out supervision
(supervisory organ) and the Board of Directors as a company




        PT Bank Pembangunan Daerah Jawa Timur Tbk
60      2023 Annual Report
Page 63
                                                                                                       REPORT OF DIRECTORS
                                                                                               AND BOARD OF COMMISSIONERS




Audit Committee                                                      3. Assist the Board of Commissioners in conducting
                                                                        performance assessments in accordance with the
                                                                        remuneration received by each member of the Board of
The Audit Committee is directly responsible to the Board of             Directors and/or members of the Board of Commissioners;
Commissioners, whose main function is to assist the Board of         4. Review, provide opinions and recommendations regarding
Commissioners in carrying out its supervisory responsibilities          proposals for providing variable remuneration for
over the financial reporting process, internal audit process,           Management from the Board of Directors to the Board
internal control system, implementation of risk management,             of Commissioners as well as provide recommendations
and compliance system with internal regulations and laws                regarding salary/remuneration systems, provision of
and regulations. which is enforced. The activities of the Audit         allowances and facilities for employees;
Committee during 2023 are as follows:                                5. Assist the Board of Commissioners in assessing the
1. Holding 8 (eight) Audit Committee meetings;                          performance of members of the Board of Directors and/
2. Carrying out 5 (five) working visits in the context of active        or members of the Board of Commissioners based on
    supervision to the Bojonegoro, Lamongan, Blitar, Kepanjen           benchmarks that have been prepared as evaluation
    and Sumenep branch office networks which have a                     material;
    moderate to lower composite level credit and operational         6. Provide recommendations to the Board of Commissioners
    risk profile;                                                       regarding the policies and criteria required in the
3. Carrying out 24 (twenty four) work visits in the context of          nomination process; And
    active supervision to work units at the head office that have    7. All Committee members have participated in at least one
    a moderate to low risk profile and a significant contribution       competency development activity related to banking/
    to the achievement of the Bank’s Business Plan for 2023;            auditing.
4. Carrying out 96 (ninety six) internal discussions with
    related work units, as well as joint discussions with the Risk   Risk Monitoring Committee
    Monitoring Committee;
5. Review financial reports and information, both in-house/          The Risk Monitoring Committee was formed by the Board of
    unaudited and audited, that will be published;                   Commissioners in order to assist the Board of Commissioners
6. Prepared 3 (three) quarterly reports on Committee activities      in carrying out their duties and responsibilities in supervising
    and submitted them to the Board of Commissioners;                and providing advice to the Board of Directors. With the
7. Prepare a report on the results of the evaluation of the          aim of obtaining adequate confidence, that the second line
    implementation of the provision of audit services on Bank        in the three lines of defense has carried out its functions in
    Jatim’s annual historical financial information for the 2022     implementing risk management, internal control systems and
    financial year by KAP PKF (Paul Hadiwinata, Hidayat,             compliance systems in integrated governance practices and
    Arsono, Retno, Pailingan & Partners);                            implemented effectively and efficiently.
8. Prepare the Audit Committee’s Annual Work Plan and
    performance indicators (KPI) for 2024; And                       Apart from that, it also ensures that the implementation of
9. All Committee members have participated in at least one           bank risk management continues to meet the elements of
    competency development activity related to banking/              adequate risk management procedures and methodologies,
    auditing.                                                        so that bank business activities at all levels of the organization
                                                                     remain controlled within acceptable limits and can minimize
Remuneration and Nomination Committee                                potential losses and benefit the bank. The activities of the Risk
                                                                     Monitoring Committee during 2023 are as follows:
The Remuneration and Nomination Committee is directly                1. Holding 8 (eight) Risk Monitoring Committee meetings;
responsible to the Board of Commissioners, whose main                2. Carrying out 6 (six) working visits in the context of active
function is to assist the Board of Commissioners in carrying out         supervision to the Ponorogo, Bojonegoro, Lamongan,
responsibilities related to nominating candidates for members            Blitar and Kepanjen and Sumenep Branch Office networks
of the Board of Commissioners and members of the Board of                which have a credit, operational and legal risk profile with a
Directors, as well as determining remuneration policies for the          moderate to lower composite level;
Board of Commissioners and Directors. The activities of the          3. Carrying out 18 (eighteen) work visits in the context of
Remuneration and Nomination Committee during 2023 are as                 active supervision to work units at the head office that have
follows:                                                                 a moderate to low risk profile and a significant contribution
1. Hold 6 (six) Remuneration and Nomination Committee                    to the achievement of the Bank’s Business Plan for 2023;
     meetings;
2. Review the remuneration policy for members of the Board of
     Directors and/or members of the Board of Commissioners;




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report          61
Page 64
4. Carrying out 96 (Ninety six) internal discussions with related   Composition of The Board of
   work units, as well as joint discussions with the Audit          Commissioners before the Annual GMS for
   Committee;                                                       Financial Year 2022
5. Reviewed 3 (three) drafts of the creation and/or updating
   of the Company’s Guidebook (BPP) proposed by the
   Board of Directors which mandatory required written              The composition of the Board of Commissioners prior to the
   approval from the Board of Commissioners and prepared            2022 Annual GMS was 5 (five) people consisting of 1 (one)
   recommendations, including:                                      President Commissioner, 3 (three) Independent Commissioners
   a. BPP Product and Activity Policy (KPA) Credit or               and 1 (one) Commissioner as follows:
       Financing;
   b. BPP Product and Activity Policies (KPA) and Standard          Suprajarto                        :    President Commissioner
       Operating Procedures (SOP) for Capital Involvement; And      Candra Fajri Ananda               :    Independent Comissioner
   c. Company management Integrity Pact regarding Anti-             Muhammad Mas’ud                   :    Independent Comissioner
       Bribery Management System (SMAP);                            Heru Tjahjono                     :    Commissioner
6. Review quarterly reports on Compliance Directorate               Sumaryono                         :    Independent Commissioner
   activities and quarterly risk profiles to be reported to the
   Board of Commissioners;                                          Composition of The Board of
7. Prepare a work program complete with a time line,                Commissioners after the Annual GMS
   including preparing the Risk Monitoring Committee’s key          for Financial Year 2022
   performance indicators (KPI) for the 2024 period;
8. All Committee members have participated in at least one          On April 12, 2023, the 2022 Annual GMS agreed to dismiss
   competency development activity related to banking,              Heru Tjahjono as Commissioner and appointed Muhammad
   governance or risk management.                                   Mas’ud as Independent Commissioner and Adhy Karyono
                                                                    as Commissioner. So, the composition of the Board of
                                                                    Commissioners after the 2022 Annual GMS was 5 (five)
Changes in the Composition of The                                   people consisting of 1 (one) President Commissioner, 3 (three)
Board of Commissioners                                              Independent Commissioners and 1 (one) Commissioner as
                                                                    follows:
During 2023, there was a change in the composition of the           Suprajarto*                   :       President Commissioner
members of the Board of Commissioners. Changes in the               Adhy Karyono**                :       Commissioner
composition of the members of the Board of Commissioners            Candra Fajri Ananda           :       Independent Commissioner
were made based on the needs of the Bank. Changes in the            Muhammad Mas’ud               :       Independent Commissioner
composition of the members of the Board of Commissioners            Sumaryono                     :       Independent Commissioner
were as follows:                                                    * Resigned from office on December 19, 2023 (died)
                                                                    ** effectively passed the fit and proper test by the Financial Services Authority
                                                                       based on Decision of Members of the Board of Commissioners of the Financial
                                                                       Services Authority Number KEPR-151/D.03/2023 dated November 24, 2023.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
62      2023 Annual Report
Page 65
                                                                                                      REPORT OF DIRECTORS
                                                                                              AND BOARD OF COMMISSIONERS




Closing

On this occasion, the Board of Commissioners would like to thank and express appreciation to the Directors, management and all
employees. The Board of Commissioners addressed its highest appreciation for the performance that had been achieved in the 2022
Fiscal Year. The Board of Commissioners was also grateful for the trust given by shareholders to be an important part of Bank Jatim’s
business journey. To other stakeholders, the Board of Commissioners would like to thank them for the cooperation that had been
going on so far. Going forward, the Board of Commissioners really expects that all levels of the Bank can continue to formulate the
right strategy and be able to lead the Bank towards better growth.




                                                    Surabaya, January 2024
                                             On behalf of the Board of Commissioners




            Adhy Karyono                                                                         Candra Fajri Ananda
             Commissioner                                                                     Independent Commissioner




        Muhammad Mas’ud                                                                                Sumaryono
     Independent Commissioner                                                                 Independent Commissioner




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report        63
Page 66
Responsibility of
2023 Annual Report


                       We, the undersigned, state that all information in the 2023 Annual Report of
                 PT Bank Pembangunan Daerah Jawa Timur Tbk. has been published in complete version,
                       and we are fully responsible for the accuracy of the contents of this report.


                                       This statement was made with actual facts.



                                                 Surabaya, January 16, 2024




                                                   Board of Directors




                                                      Busrul Iman
                                                   President Director




        Tonny Prasetyo                               Edi Masrianto                        R. Arief Wicaksono
     Director of Compliance                Director of Finance, Treasury            Director of Micro, Retail & Medium
                                                & Global Services




        Zulhelfi Abidin                             Eko Susetyono                            Arif Suhirman
     Director of IT & Digital             Director of Risk Management                     Director of Operations




     PT Bank Pembangunan Daerah Jawa Timur Tbk
64   2023 Annual Report
Page 67
                           Board of Commissioners




    Adhy Karyono                                               Candra Fajri Ananda
     Commissioner                                           Independent Commissioner




  Muhammad Mas’ud                                                   Sumaryono
Independent Commissioner                                    Independent Commissioner




                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                       2023 Annual Report   65
Page 68
COMPANY
Profile




     PT Bank Pembangunan Daerah Jawa Timur Tbk
66   2023 Annual Report
Page 69
                                  COMPANY
                                   PROFILE




PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report    67
Page 70
Corporate
Identity


                                                       Business Fields                          Nick Name
                                                       Finance                                  Bank Jatim




                                                       Date of Establishment                    Legal Basis of Establishment
                                                       August 17, 1961                          Notarial Deed Anwar Mahajudin
                                                                                                No. 91 dated August 17,
                                                                                                1961 and strengthened by
 Company Name                                          Stock Code                               the Decree of the Minister of
 PT Bank Pembangunan                                                                            FOwnershipinance Number
                                                       BJTM
 Daerah Jawa Timur Tbk.                                                                         BUM.9-4-5 dated August 15,
                                                                                                1961.
                                                       Authorized Capital
 Contact Address                                       Rp9.000.000.000.000
 Call Center : 14044
                                                                                                Listing on The Indonesia
 SMS                                                                                            Stock Exchange
 Banking     : 3366                                    Issued and Fully Deposited               July 12, 2012
 Telp        : (031) 5310090-5310099                   Capital
 Faks.       : (031) 5310838
                                                       A total of 15,015,498,082
 Email       : info@bankjatim.co.id
                                                       shares with a par value of               Call Center
 SWeb        : www.bankjatim.co.id,
                                                       IDR3,753,874,520,500
               www.bankjatim.id                                                                 14044




             Office Network Data                       SMS Banking
                                                                                            Company’s Address
                                                       3366
                                                                                                Head Office
     1       Head Office                                                                        Jalan Basuki Rachmad
                                                       Situs Web                                98 – 104, Surabaya 60271
     48      Branch Office                             www.bankjatim.co.id
                                                       www.bankjatim.id                         Corporate Secretary
                                                                                                Wioga Adhiarma Aji
     173     Sub-branch Office                                                                  Corporate Secretary
                                                       Number of Employees                      Kantor Pusat Bank Jatim
                                                       As of December 2023 as many as           Jl. Basuki Rachmat
     216     Functional Offices                        4,544 people (including Outsourced
                                                       Personnel)                               no. 98-104 Surabaya
                                                                                                Email: corsec@bankjatim.co.id
     199     Payment Point
                                                                                                Investor Relation
                                                       Ownership
                                                                                                Derry Widya Ariyanta
     854     ATM                                       East Java Provincial                     Corporate Secretary
                                                       Government (51,13%)                      Kantor Pusat Bank Jatim
     94      CRM                                       38 District/City Government              Jl. Basuki Rachmat
                                                       (28,35%)                                 no. 98-104 Surabaya
                                                       Society (20,52%)                         Email: iru@bankjatim.co.id
     39      Car Cash ATM


     196     Sharia Service Office
                                                        @bankjatim              bankjatim    @bank_jatim          bank jatim




           PT Bank Pembangunan Daerah Jawa Timur Tbk
68         2023 Annual Report
Page 71
                                                                                                                          COMPANY
                                                                                                                           PROFILE




Name and Address of Branch Office
and Sharia Branch Offices

                                                           BRANCH OFFICE

       NAME                   ADDRESS                     PHONE                      FAX                    EMAIL AND WEB
Surabaya a Main      Jl. Basuki Rakhmad 98-104,    (031) 5310090-99        (031) 5470159            Bankjatim.cabut@gmail.com
Branch               Surabaya                                                                       www.bankjatim.co.id
Banyuwangi Branch    Jl. Basuki Rahmat no. 156     (0333) 421755/ 426755   (0333) 421555            umumsdmbanyuwangi@gmail.com
                     Banyuwangi                                                                     www.bankjatim.co.id

Jember Branch        Jl. A. Yani no. 3A RT 01 RW   (0331) 484605-07        (0331) 428376/ 481502    akuntansi.bpdjember@gmail.com
                     03 Patrang Jember 68137                                                        www.bankjatim.co.id

Malang Branch        Jl. Jaksa Agung Suprapto      (0341) 321961           (0341) 325085/ 365212    bankjatim_malang@yahoo.com
                     26-28 Malang                                                                   www.bankjatim.co.id

Madiun Branch        Jl. Jawa No. 43 Madiun        (0351) 464432/          (0351) 463665/ 491499    bankjatim_madiun@yahoo.com
                                                   459202/476328/ 476315                            www.bankjatim.co.id

Kediri Branch        Jl. P. Kusuma Bangsa No.      (0354) 680270           (0354) 682924            bankjatimkediri@gmail.com
                     122 Kediri                                                                     umum.bjkediri@gmail.com
                                                                                                    www.bankjatim.co.id
Pamekasan Branch     Jl. Panglima Sudirman No. 5   (0324) 322451/ 322923   (0324) 322932            bankjatim.pamekasan@gmail.com
                     Pamekasan                                                                      www.bankjatim.co.id
Bojonegoro Branch    Jl. Mastrip 70 Bojonegoro     (0353) 882137/ 889753   (0353) 881028/ 891772    bankjatim_bojonegoro2004@yahoo.
                                                                                                    com
                                                                                                    www.bankjatim.co.id
Lumajang Branch      Jl. Alun-alun Barat 4         (0334) 881683/ 882111   (0334) 882830            bankjatimlmj@gmail.com
                     Lumajang                                                                       www.bankjatim.co.id

Ngawi Branch         Jl. Yos Sudarso 32            (0321) 862217           (0321) 861952            bankjatim.ngawi@gmail.com
                     Kel. Margomulyo                                                                umum.bankjatimngawi@gmail.com
                     Kec. Ngawi Kab. Ngawi                                                          www.bankjatim.co.id
Jombang Branch       Jl. K.H. Wakhid Hasyim 36,    (0321) 862217           (0321) 861952            bankjatim.jombang@gmail.com
                     Kec. Jombang,                                                                  www.bankjatim.co.id
                     Kab. Jombang
Kraksaan Branch      Jl. Raya PB. Sudirman 144,    (0335) 841382/ 843184   (0335) 841124/ 842451    bankjatim_kraksaan@yahoo.com
                     Kraksaan                                                                       www.bankjatim.co.id

Probolinggo Branch   Jl. Soekarno-Hatta 311        (0335) 422552/ 421879   (0335) 422314            bjprob@gmail.com
                     Kel. Tisnonegaran Kec.                                                         www.bankjatim.co.id
                     Kanigaran Kota Probolinggo

Blitar Branch        Jl. HOS Cokroaminoto 36-      (0342) 801462/          (0342) 802262/ 801353    bankjatimblitar@gmail.com
                     38, Blitar                    806089/807333                                    www.bankjatim.co.id

Tulungagung Branch   Jl. I Gusti Ngurah Rai 1,     (0355) 321105/          (0355) 321104/ 320407    bankjatim.tulungagung@gmail.com
                     Tulungagung                   321106/327581                                    www.bankjatim.co.id

Tuban Branch         Jl. Basuki Rakhmad 13 Tuban (0356) 322725             (0356) 321169            bankjatimtuban017@gmail.com
                                                                                                    www.bankjatim.co.id
Mojokerto Branch     Jl. A. Yani No. 20, Mojokerto (0321) 321261/ 323002   (0321) 396112/ 395950/   umum.mojokerto@gmail.com
                                                                           395501                   www.bankjatim.co.id

Sumenep Branch       Jl. Trunojoyo 49 Sumenep      (0328) 662557/ 662487   (0328) 665780            bjsumenep018@gmail.com
                                                                                                    www.bankjatim.co.id

Sampang Branch       Jl. K.H. Wakhid Hasyim 111,   (0323) 321226/          (0323) 321493/ 325006    bankjatim_sampang@yahoo.com
                     Sampang                       323400/325004                                    bjtmsampang@gmail.com
                                                                                                    www.bankjatim.co.id
Bangkalan Branch     Jl. K.H. Moh. Kholil 38       (031) 3095502/          (031) 3095722            bankjatim_bangkalan@yahoo.com
                     Demangan Bangkalan            3093416/3099085                                  www.bankjatim.co.id

Pasuruan Branch      Jl. Pahlawan No. 18           (0343)421061/           (0343) 426085/ 432797    bankjatim_pasuruan@yahoo.com
                     Pasuruan                      411609/426086/ 431957                            www.bankjatim.co.id

Nganjuk Branch       Jl. Gatot Subroto 8 Nganjuk   (0358) 325100/          (0358) 324420            bankjatim_nganjuk@yahoo.com
                                                   325101/323910                                    www.bankjatim.co.id




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          2023 Annual Report         69
Page 72
                                                               BRANCH OFFICE

Trenggalek Branch      Jl. Panglima Sudirman           (0355) 791676/ 791675    (0355) 792945             bankjatim_trenggalek@yahoo.com
                       No. 145 Trenggalek                                                                 www.bankjatim.co.id

Ponorogo Branch        Jl. Diponegoro No. 42-44        (0352) 461157/ 461158/   (0352) 484260/ 485485     bankjatim020@gmail.com
                       Ponorogo                        484222                                             www.bankjatim.co.id
Pacitan Branch         Jl. A. Yani No. 82 Pacitan      (0357) 881320/ 881321    (0357) 882889/ 886456     cabang_pacitan@bankjatim.co.id
                                                                                                          www.bankjatim.co.id

Gresik Branch          Jl. Dr. Sutomo 181, Gresik      (031) 3982311/3982313/   (031) 3973976/ 3990937    bankjatim_gresik@yahoo.com
                                                       3980580                                            bankjatim.gresik@gmail.com
                                                                                                          www.bankjatim.co.id
Sidoarjo Branch        Jl. Jend. A. Yani 29 Sidoarjo   (031) 8956108/ 8956109   (031) 8921631             bankjatim_sidoarjo@yahoo.com
                                                                                                          www.bankjatim.co.id
Lamongan Branch        Ruko Permata Lamongan           (0322) 321810/           (0322) 321494             bankjatimlamongan28@gmail.com
                       Jl. PB Sudirman No 72           322769/311633/ 318508                              www.bankjatim.co.id
                       Lamongan
Situbondo Branch       Jl. Basuki Rahmat 235           (0338) 674982/ 672123/   (0338) 672017             bankjatim_situbondo@yahoo.com
                       Situbondo                       674983                                             www.bankjatim.co.id

Bondowoso Branch       Jl. Letnan Karsono No.1         (0332) 427456/ 427447    (0332) 423524             bankjatim_bondowoso@yahoo.com
                       Bondowoso                                                                          www.bankjatim.co.id
Magetan Branch         Jl. Pahlawan No. 2 Magetan      (0351) 895378/ 891441/   (0351) 894715/ 895384     bankjatim.magetan@gmail.com
                                                       895333                                             www.bankjatim.co.id

Dr. Soetomo            Jl. Airlangga No. 1-9           (031) 99453111/          (031) 5020121             bj.sutomo@gmail.com
Surabaya Branch        Surabaya                        5012107                                            www.bankjatim.co.id
Perak Surabaya         Jl. Perak Timur 262-264         (031) 3282635-37         (031) 3282508/ 3299063    bankjatim_perak@yahoo.com
Branch                 Surabaya                                                                           www.bankjatim.co.id

Kangean Branch         Jl. Sriwijaya No. 431           (0327) 312200/ 312030/   (0327) 312040             bankjatim034@yahoo.co.id
                       Kec. Arjasa Kep. Kangean        312161                                             www.bankjatim.co.id
                       Sumenep
Jakarta Branch         Jl. Thamrin Boulevard           (021) 29625615-17        (021) 29625618            cabangjakarta.umum@gmail.com
                       CT.LD1 No.1 CT.LD02                                                                www.bankjatim.co.id
                       Jakarta Pusat
Batu Branch            Jl. Panglima Sudirman           (0341) 511205/ 511206    (0341) 590522 /598550     bankjatimbatu@gmail.com
                       No. 88 Kel. Pesanggrahan                                                           umumbankjatimbatu@gmail.com
                       Kec. Batu Batu                                                                     www.bankjatim.co.id
Bawean Branch          Jl. Kawedanan No. 3,            (0325) 422470/           (0325) 422471             bpdjatim.bawean@gmail.com
                       Sangkapura Bawean               422770/423801/ 421558                              www.bankjatim.co.id

Pare Branch            Jl. Kusuma Bangsa No. 6         (0354) 397850/ 397851    (0354) 392799             bankjatimpare042@gmail.com
                       Pare                                                                               www.bankjatim.co.id
HR. Muhammad           Jl. HR. Muhammad No. 29         (031) 99147557/          (031) 99147868/ 99147763 bjtm.hrm@gmail.com
Surabaya Branch        Surabaya                        99141887                                          www.bankjatim.co.id


Kepanjen Branch        Jl. Kawi No. 28, Kepanjen       (0341) 398140            (0341) 398141             bankjatim_kepanjen@yahoo.co.id
                                                                                                          www.bankjatim.co.id
Batam Branch           Jl. Pembangunan Komplek         (0778) 8071030           (0778) 7602059            bankjatimcabangbatam@gmail.com
                       Ruko Citra Mas Penuin                                                              www.bankjatim.co.id
                       Blok A-05 Kel. Batu Selicin
                       Kec. Lubuk Baja Kota Batam
                                                            SHARIA BRANCH OFFICE
Surabaya Sharia        Jl. Dr. Soetomo No. 37          (031) 99543971           (031) 99543971            umum.kcssurabaya@gmail.com
Branch                 Surabaya                                                                           www.bankjatim.co.id
Kediri Sharia Branch   Jl. Diponegoro No. 50B          (0354) 7418278/7418279 7418277/7418424             bankjatimsyariah_kediri@yahoo.com
                       Kediri                                                                             www.bankjatim.co.id
Malang Sharia          Jl. Soekarno Hatta Grand        (0341) 491333/492333     (0341) 2996502/2996503    bankjatimsyariahmalang@gmail.com
Branch                 Ruko Kav. 13-14 Malang                                                             www.bankjatim.co.id
Gresik Sharia Branch   Jl. R.A. Kartini No. 220 – 222 (031) 3982011             (031) 3982027             bankjatimsyariah_gresik@yahoo.com
                       Gresik                                                                             www.bankjatim.co.id
Madiun Sharia          Jl. Hos Cokroaminoto            (0351) 476677            (0351) 476666             jatimsyariahmadiun@gmail.com
Branch                 No. 128 Kota Madiun                                                                www.bankjatim.co.id
Jember Sharia          Jl. Gajah Mada 278 Jember       (0331) 410614            (0331) 410613             bjsyariahjember@gmail.com
Branch                                                                                                    www.bankjatim.co.id
Sidoarjo Sharia        Jl. Sunanjar Priyo Sudarmo      (031) 8924148/8925898    (031) 99704074/99704084   bankjatimsyariah.cabangsidoarjo@
Branch                 No. 138-148 Blok A-B                                                               gmail.com
                       Sidokare Sidoarjo                                                                  www.bankjatim.co.id


        PT Bank Pembangunan Daerah Jawa Timur Tbk
70      2023 Annual Report
Page 73
                                                                                                     COMPANY
                                                                                                      PROFILE




Company
Brand


LOGO MEANING:



                                                               5
                                                               FEATHERS




The inspiration for the formation of the Bank Jatim logo
is the Garuda Bird’s wings flapping upwards as a sign of
                                                                    5 Spirits of Bank Jatim
being ready to fly. The Garuda bird is the national symbol
of Indonesia. In Javanese mythology, the Garuda Bird is
the “Bird of Life” or bird of life that brings glory. Wings                  PRO      F   ESIONAL
are aerodynamic limbs and act as a counterweight when
flying. This function is to be reflected in the logo of Bank        PARTNERSH         I   P
Jatim with the hope that Bank Jatim can fly high towards
the desired goals, and there is a balance between funds                         CA    R   E
obtained from the public / government and channeled in
                                                                                      S   ERVICE
the form of credit / financing so as to create a populist
economy.
                                                                            TRUS      T   WORTHY
The First is the Brand Personality of Bank Jatim, which is
reflected in 5 (five) Wings on the Bank Jatim logo. The
Five Wings represent 3 (three) Pillars and 2 (two) main
                                                                    3 Pillars and
bases of banking. The three banking pillars include Agent
                                                                    2 Main Foundations of Banking
of Development, Institutional Endurance and Services.
The two pillars of banking include good corporate
governance and risk management.                                     3 PILLARS
                                                                    • Agent of Development
                                                                    • Institutional Endurance
                                                                    • Services

                                                                    2 MAIN FOUNDATIONS OF BANKING
                                                                    • Good Corporate Governance
                                                                    • Risk Management




                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                          2023 Annual Report    71
Page 74
Company
Brief History




PT Bank Pembangunan Daerah Jawa              to a Regional Owned Enterprise and             Based on Article 2 of the Minister of
Timur Tbk (“Bank”) was established           the change in the name of PT Bank              Home Affairs Regulation No. 1 of 1998
under the name PT Bank Pembangunan           Pembangunan Daerah Djawa Timur was             concerning the Form of a Regional
Daerah Djawa Timur on August 17,             changed to Bank Pembangunan Daerah             Development Bank Legal Entity, then
1961 in Surabaya with the legal basis of     Jawa Timur.                                    on     March    20,   1999   the    Regional
establishment based on deeds drawn                                                          Representative Council (DPRD) of the
up by Notary Anwar Mahajudin, No.91          Operationally   and   in   line   with   its   Province of the East Java Province
dated August 17, 1961, which equipped        development, in 1990 the East Java             ratified the Regional Regulation of the
with an operational basis for the Decree     Regional Development Bank upgraded             Province of East Java No. 1 of 1999
of the Minister of Finance No. BUM. 9-4-5    its status from a Commercial Bank to a         concerning Changes in the Legal Entity
dated August 15, 1961.                       Foreign Exchange Commercial Bank,              of the East Java Regional Development
                                             this was stipulated by the Decree of the       Bank from a Regional Company (PD)
With the existence of Law no. 13 of          Board of Directors of Bank Indonesia No.       to a Limited Liability Company (PT) of
1962 concerning the Basic Provisions         23/28 / KEP / DIR dated August 2, 1990 .       the East Java Regional Development
for Regional Development Banks, which                                                       Bank    which    on    August      19,   2016
require that Regional Development Banks      To strengthen capital, on December 29,         has    been     amended      according     to
be established by a Regional Government      1994, East Java Provincial Regulation No.      theRegionalRegulationoftheProvince
Regulation,   the   East   Java   Regional   26/1994 was enacted concerning the             of East Java No. 7 of 2016 concerning
Government issued Regional Regulation        First Amendment to East Java Provincial        Amendments to the Regional Regulation
No. 2 of 1976 dated July 10, 1976. Based     Regulation No. 9/1992 concerning the           of the Province of East Java Province No.
on the regional regulation, the status of    East Java Regional Development Bank,           1 of 1999 concerning the Change in the
the Regional Development Bank from a         by changing the capital structure /            Legal Entity of the East Java Regional
Limited Liability Company was changed        ownership.                                     Development Bank from a Regional




       PT Bank Pembangunan Daerah Jawa Timur Tbk
72     2023 Annual Report
Page 75
                                                                                                                       COMPANY
                                                                                                                        PROFILE




Company to a Limited Liability Company at the East Java               granted approval from Ministry of Law and Human Rights based
Regional Development Bank.                                            on decree No.AHU-22728. AH.01.02. Tahun 2012 dated April
                                                                      30, 2012, registered on the Company list according to Limited
This change in status of legal form was based on the notarial         Company Law with registration No.AHU0038044. AH.01.09
deed No.1 dated May 1, 1999 of R. Sonny Hidayat Julistyo,             Tahun 2012 dated April 30, 2012, as well as by Decision Letter
S.H., which has been approved by the Minister of Justice of           of the Capital Market and Financial Institutions Supervisory
the Republic of Indonesia in Decision Letter No.C2.8227.              Agency (BAPEPAMLK) dated November 29, 2012 that declared
HT.01.01. TH.99 dated May 5, 1999 and was published                   effective registration statement to become a public company
in the State Gazette of the Republic of Indonesia No.42,              and changed its name to PT Bank Pembangunan Daerah Jawa
dated May 25, 1999 in Supplement of the Republic of                   Timur Tbk.
Indonesia No.3008/1999,thenlaterofficiallybecame PT Bank
Pembangunan Daerah Jawa Timur.                                        Bank Jatim made several amendments to the Articles of
                                                                      Association as approved at the 2022 Annual General Meeting
The Sharia Operating Unit started its commercial operations on        of Shareholders (GMS) of PT Bank Pembangunan Daerah
August 21, 2007 in accordance with the approval letter from           Jawa Timur Tbk. based on Deed No. 25 dated April 12, 2023,
Bank Indonesia No. 9/75/ DS/Sb dated April 4, 2007 for the            made before Notary Sitaresmi Puspadewi Subianto SH. The
establishment of the Bank’s Sharia Unit.                              amendments to the Articles of Association are stated based on
                                                                      the Deed of Restatement of Meeting Resolutions of PT Bank
In line with the economic growth and to comply with the               Pembangunan Daerah Jawa Timur Tbk. No 15 dated May 09,
requirement to be Regional Champion BPD, with one of the              2023, made before Sitaresmi Puspadewi Subianto SH, Notary
indicators is to strengthen the capital structure, an amendment       in Surabaya, who has received Notification Receipt from the
of Article of Associations was taken based on Extraordinary           Ministry of Law and Human Rights of the Republic of Indonesia
General Meetings of Shareholders Decision Deeds No.89 dated           Number: AHU-0026675.AH.01.02.TAHUN 2023 dated May 15,
April 25, 2012 of Fathiah Helmi, S.H., Notary in Jakarta and          2023.




     Description of Name Change

     Following a brief history description, PT Bank Jatim has changed its name 3 (three) times since it was first established, from
     the name PT Bank Pembangunan Daerah Jawa Timur to Bank Pembangunan Daerah Jawa Timur in 1976 based on Regional
     Regulation no. 2 of 1976 dated July 10, 1976. Then it changed to PT Bank Pembangunan Daerah Jawa Timur based on the
     Decree of the Minister of Justice of the Republic of Indonesia Number C2- 8827.HT.01.01. Th.99 dated May 5, 1999, and
     the State Gazette of the Republic of Indonesia dated May 25, 1999 Number 42, Supplement to the State Gazette of the
     Republic of Indonesia Number 3008/1999. Finally changed to PT Bank Pembangunan Daerah Jawa Timur Tbk according
     to the Letter of the Minister of Law and Human Rights of the Republic of Indonesia Number AHUAH.01.10-31887 dated
     August 31, 2012, and became a Public Company by listing 20% shares on the Indonesia Stock Exchange with the Ticker
     Code or BJTM Stock Code.




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          2023 Annual Report          73
Page 76
Vision, Mission
& Corporate Culture




             VISION
 To Become “BPD No.                                ”
                    in Indonesia




                                                  MISSION
                                                 Accelerating performance and healthy
                                                 business transformation into a digital bank
                                                 with highly competitive human resources;

                                                 Contributing to the economic growth of East
                                                 Java;

                                                 Applying sustainable finance principles.




     PT Bank Pembangunan Daerah Jawa Timur Tbk
74   2023 Annual Report
Page 77
                                                                                                    PROFIL
                                                                                               PERUSAHAAN




                                                                     Vision Explanation

                                                        To become a BPD Bank that contributes significantly to
                                                        regional economic growth in a sustainable manner as
                                                        well as a BPD that has a competitive advantage so that
                                                        it is able to compete and even outperform other banks,
                                                        especially Regional Development Banks.




                                                                    Mission Explanation

                                                        The Bank in carrying out its business activities is focused
                                                        on increasing the acceleration of performance growth
                                                        and the Bank continues to transform so that it remains
                                                        relevant in its efforts to grow above the average
                                                        banking industry. In an effort to accelerate performance
                                                        growth, it is supported by Human Resources (Human
                                                        Capital), which is one of the Bank’s strategic resources
                                                        to be continuously nurtured and developed so that it
                                                        has the capacity and capability to produce superior
                                                        performance in competition, especially against Regional
                                                        Development Banks.

                                                        The Bank continues to innovate more diverse digital
                                                        banking products and services so that the products are
                                                        easily accessible and can meet the expectations of the
                                                        community, especially in the East Java region.

                                                        In order to contribute to the economic growth of East
                                                        Java, the Bank has a duty to continue to strive to
                                                        participate in developing MSMEs and contribute to
                                                        strategic government projects as well as economic
                                                        activities in the context of regional development.

                                                        In applying the principles of sustainable finance, the Bank
                                                        in carrying out its business activities seeks to implement
                                                        financial practices that are more environmentally friendly
       Review of The Vision                             and prioritize financial transactions for environmentally
     and Mission by the Board                           friendly business projects.
      of Commissioners and
      the Board of Directors                            Sustainable finance is defined as the overall support
                                                        of the financial services industry for sustainable growth
 In order to ensure the suitability of the Vision and
                                                        resulting from the harmony between economic, social
   Mission of Bank Jatim which has been running
                                                        and environmental interests.
  so far, Bank Jatim always reviews the Vision and
Mission periodically. In 2023, the Vision and Mission
 of Bank Jatim have been discussed and approved
   by the Board of Commissioners and Directors
during the final presentation for the preparation of
  the 2024-2028 Corporate Plan and it is decided
               that it remains relevant
             for the current conditions.




                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                   2023 Annual Report          75
Page 78
                                               CORPORATE CULTURE


                                                         Exellence
      Always provide and present everything exceeded expectations. In the other words, constantly develop and make
               improvements in all areas to achieve optimum added value, and the best results continuously.
                                                      Key behaviors:




 Fast & Simplicity                                                 Agile & Business Savvy
 Always be responsive over the dynamics of change by               Working fast, nimble, agile, responsive and proactive in
 meeting customer needs, and presenting customer                   capturing business opportunities, which is conducted by
 friendly products and services, behavior guidelines:              all employees with continuous improvement, behavior
 • Always consistently take initiatives to offer and provide       guidelines:
      the best quick, precise, and easy solution.                  • Always seek and seize opportunities to contribute
 • Always provide products and services which are                      added value to the company growth continuously.
      accurate, safe, convenient, value added, and meet the        • Always work diligently in performing the tasks and
      standard that exceed customer expectations.                      proactive in capturing the opportunities exist.
 • Always simplify the existing problems to provide the            • Always keep focused and be discipline in executing
      best solution, quickly and precisely to the customer.            the priority tasks.
                                                                   • Evaluating and monitoring both to the work process
                                                                       and the results of performance on a regular basis, to
                                                                       be able to identify opportunities for improvement.
                                                                   • Always be patriotic, have a winning mentality and the
                                                                       courage to make a breakthrough.
                                                                   • Have a flexible spirit which is appropriate to business
                                                                       environment and customer needs.




                                                       Professional
                 Performing and mastering duties and responsibilities, and commit to achieve optimal results,
                                                      key behaviors:




 Execution & Risk Taker                                            Proactive & Accountable
 Carry out management decisions with the courage to take           Taking the initiative to carry out alternatives based on the
 the necessary risks, behaviors guidelines:                        principles and values, openly and responsibly, behaviors
 • Accomplish the tasks completely, accurately and on              guidelines:
     time.                                                         • Set a high standard as a benchmark of the performance,
 • Work smart, which is efficient and effective, by                    and to achieve the performance standard with best
     optimally utilizing resources to achieve maximum                  effort and full responsibility.
     results.                                                      • Always maintain a high working passion and spirit.
 • Manage work systematically through the process of               • Foster a sense of belonging and be responsible for
     planning, organizing, evaluating, and continuously                every action and decision made.
     monitoring as well.                                           • Be responsible to contribute in the achievement of the
 • In an effort to provide the best results, have the                  vision and mission of the Bank Jatim.
     courage to take necessary risks carefully, so as not to
     put the company interests aside.
 • Have self-confidence over the opportunities and
     results.




     PT Bank Pembangunan Daerah Jawa Timur Tbk
76   2023 Annual Report
Page 79
                                                                                                                 COMPANY
                                                                                                                  PROFILE




                                                         Integrity
           To be consistent in thought and behavior, be honest to themselves and others based on ethical values,
                                                       key behaviors:




Honesty                                                          Trust
Uphold honesty, sincerity, openness with regard to the           Mutual respect and open attitude among fellow members
principles of prudence, behaviors guidelines:                    of the company based on confidence, honesty and good
• Always speak and act on the truth, according to the            faith in the execution of the work, behaviors guidelines:
    fact and reality.                                            • Treat co-workers, customers and all stakeholders with
• Act honest, sincere, open, humble, simple, ethical,                 respect and courtesy.
    keep promises and commitments made, and to act               • Keep an empathetic communication between
    appropriately in the right situation.                             coworkers so as to create mutual understanding in
• Maintain a sincere intention and full compliance,                   interpersonal relationships.
    act solely for the best interests of the Bank Jatim          • Create and maintain a conducive and comfortable
    unconditionally, and without any ulterior motives.                climate of working environment.
• Maintain transparency in every action and                      • Carry out the mandate given with full commitment and
    decisionmaking, by providing relevant information                 responsibility to build a sustainable trust, and put any
    correctly and accurately, while upholding the principles          corporate interests above personal or group interests.
    of privacy and confidentiality.                              • Establishing cooperation between individuals and
• Have the courage to recognize the limitations and                   between work units to jointly strive to achieve
    mistakes, and be willing to make improvements.                    organizational goals.
• Be a role model in all circumstances, to serve, to             • Provide assistance and positive support for fellow
    accept criticism, and be willing to listen more.                  coworkers, and contributes actively to achieve shared
• Comply with the rules, policies and procedures, and                 goals.
    prevailing regulation wisely and responsibly.                • Respect the differences between employees, and
• Make wise decisions in various situations by sticking to            make the differences as a starting point to create
    the applied rules and policies.                                   synergy.
• Uphold the principles and stance which is believed to
    be right, and not easy to change, even under pressure
    or difficult situations.
• Work with dedication, protect the honor and interests
    of personal and the company, and always uphold the
    professional code of ethics.
• Avoid opportunities that enables the conflict of
    interest.
• Be a role model and benchmark for others by
    consistently doing what the talked.
• Use company property in a responsible manner.
• Make decisions objectively and free from pressure or
    influence from any party.
• Have the courage to put forward suggestions, opinions
    and criticism objectively and openly.




                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                         Synergy
          Mutually beneficial cooperation undertaken with a commitment to increase the added value for both parties,
                                                        key behaviors:




 Respect                                                           Collaboration
 Implement mutual appreciation, respect and guide                  Together create added value to create growth and
 sincerely to uphold the values of decency, behaviors              development of the company, behaviors guidelines:
 guidelines:                                                       • Be positive result oriented.
 • Implement mutual appreciation, respect and guide                • Work together to achieve the shared goals and or
     sincerely to uphold the values of decency, behaviors             agreements.
     guidelines.                                                   • Very like to discuss and maintain effectiveness.
 • Always be positive think to others.                             • Have a high sense of belonging.
 • Respect and uphold honor of others.                             • Appreciate, give recognition, and have a high standard
 • Avoid self-destructive Behavior.                                   of work ethic.
 • Appreciate the uniqueness of themselves, develop
     and overcome weaknesses.




                                                       Innovation
     Creativity or the ability to produce something new and make something already become better continuously according
                                                to customer needs, key behaviors:




 Eager to Learn                                                    Creativity
 The behavior of employees which constantly improve                Always create something new and develop ideas to
 their knowledge that enable the company to grow in a              achieve better results, behaviors guidelines:
 sustainable manner, behavior guidelines:                          • Be Innovative in creating opportunities to achieve
 • Have a high curiosity, optimistic, sincere, consistent              beyond expectations performance.
     and visionary.                                                • Be creative, innovative, proactive and responsive in
 • Perform continuous improvement.                                     providing the best solution.
 • Always be sensitive to customer needs, and proactively          • Always focus on providing services with specific added
     identify.                                                         value as customer needs.
 • Constantly develop competency levels in order to                • Always be innovative and oriented to provide solutions
     meet the development and progress of the profession               which meet customer needs.
     demands.                                                      • Be empathetic to customer complaints and problems,
 • Have a good work ethic to become a true learner.                    and responsive to provide the best solution for each
 • Have entushiasm to keep learning as a part of life,                 complaint.
     and carry out the process of changing Behaviour to be         • Have a strong stance and be intuitive.
     better.                                                       • Be flexible, elaborative, imaginative, initiative, and
 • Like to meet new people, discuss, reflect, and make                 selfconfident.
     changes.                                                      • Have broad interests and never get bored.




      PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                       COMPANY
                                                                                                                        PROFILE




Business
Activities

Business Activities According to
the Articles of Association

Bank Jatim conducts business in the banking sector in
accordance with Article 3 Paragraph 1 in the Articles
of Association based on the Deed of Restatement of
Meeting Resolutions No. 15 dated May 9, 2023, made
before Notary Sitaresmi Puspadewi Subianto, SH., Notary
in Surabaya, who has received the Decree of the Minister
of Law and Human Rights of the Republic of Indonesia
Number: 0026675.AH.01.02.TAHUN 2023 Concerning
Approval of Amendment of the Articles of Association
of Limited Bank of PT Bank Pembangunan Daerah Jawa
Timur Tbk. The purpose and objective of the Bank is
to carry out business in the field of financial activities,
particulary banking, in accordance with the provisions of
the prevailing laws and regulations.




Primary Business Activities


To achieve the goals and objectives of Bank Jatim, the Company carries out its main activities as follows:
a. Collect funds from the community in the form of deposits,         f.   Provide a safe place to store goods and securities;
     such as current accounts, time deposits, certificates           g. Carry out business activities in the form of foreign exchange;
     of deposits, savings, and/or other similar forms, both          h. Carry out receivable transfer activities;
     conventionally and based on sharia principles;                  i.   Carry out goods and securities safekeeping activities;
b. Distribute funds in the form of loan or financing based on        j.   Carry out other with approval from the Financial Services
     the sharia principles;                                               Authority;
c.   Carry out activities in field of the payment system;            k.   Provide financing and/or carry out other activities including
d. Invest funds in other banks, borrow funds from, or                     those based on the sharia principles in accordance with the
     lend funds to other banks, either with a letter, means               applicable provisions;
     of telecommunication, money order, check, or other              l.   Commence other banking business in accordance with
     instruments;                                                         the prevailing laws and regulations, both in domestic and
e. Issue and/or carry out Securities transactions for the benefit         overseas.
     of the Bank and/or Customer;




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
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Supporting Business Activities

To complement primary business activities, Bank Jatim also carries out the following supporting business activities:
a. Purchase part of or all the collateral, either through an          c.   Perform temporary capital investments activities outside
     auction or outside of an auction based on voluntary                   financial services institutions to overcome the consequences
     handover by the collateral owner or based on the authority            due to loan failures or financing failures, based on
     to sell outside of the auction from the collateral owner in           sharia principles, with the provision of withdrawing the
     which the debtor does not fulfill their obligations to the            investments;
     company, with a condition that the purchased collateral          d. Collaborate with Financial Services Institutions and Non-
     have to be immediately disbursed;                                     Financial Institutions in providing financial services to
b. Perform capital investments activities in financial services            Customers;
     institutions or other companies that support the banking         e. Act as the founder of pension funds and manager of
     industry by fulfilling the provisions set by the Financial            pension funds in accordance with the applicable pension
     Services Authority;                                                   fund regulations.



On-Going Business Activities

All business activities have been carried out by the Bank in accordance with the Articles of Association.



Products and Services

Bank Jatim’s business activities include various savings products, loan products, and various conventional and sharia services which
are described as follows:



Deposit Products

Rupiah Current Account                                                Rupiah Deposits

Giro or current account is a deposit that can be withdrawn at         Deposits, or often referred to as time deposits, are a bank’s
any time by using check/ transfer form and other payment order        product similar to savings services commonly offered to the
facilities, or by way of transfer. Bank Jatim’s current account is    public. Funds in deposits are guaranteed by the government
online at all of its branches so that withdrawals and deposits        through the Indonesia Deposit Insurance Corporation (IDIC)
can be made at all branches while Bank Jatim’s check/transfer         under certain terms and conditions.
form in Rupiah can be cleared anywhere (Intercity Clearing).
                                                                      Foreign Currency Deposits
Foreign Currency Current Account
                                                                      Foreign currency deposits only accept funds in foreign
Current accounts are deposits which can be withdrawn at any           currencies, such as USD, in accordance with banking
time by using a check/ bilyet giro, other means of payment            regulations. The interest rates offered in foreign currency
orders or by book-entry. Bank Jatim current accounts are online       deposits are generally lower than the rates of Rupiah deposits.
at all Bank Jatim branches, so withdrawals and deposits can be
made at all Bank Jatim branches and Bank Jatim checks/bilyet          Simpeda Savings
giro can be cleared anywhere (Intercity Clearing) with foreign
currency (USD).                                                       Simpeda is a Regional Development Deposit product that
                                                                      has been online in all Bank Jatim’s branches. This product
                                                                      implements a daily-calculated interest rate which provides a lot
                                                                      of convenience and benefits at such a low cost. The total prize
                                                                      of IDR12.5 billion per year is drawn three times a year, twice for
                                                                      the national level and once for the regional level.



         PT Bank Pembangunan Daerah Jawa Timur Tbk
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Siklus Savings                                                        Hajj Savings
                                                                      Bank Jatim’s Hajj Savings is a savings product in the form of
With this savings product, Bank Jatim contributes to the
                                                                      deposit which aims to specifically help alleviate the Muslim
development of saving tradition as a means to manifest a              community, especially those wishing to take the Hajj pilgrimage
prosperous family. This product is suitable for customers who do      to the Holy Land of Mecca to perform the fifth pillar of Islam.
not want prizes but expect competitive interest.


Micro and Small Enterprise Siklus Savings (SIUMI)                     TabunganKu
To foster the productive economic sector, specifically through        TabunganKu is a savings product for individuals with easy and
the Micro, Small & Medium Enterprises, Bank Jatim launches            simple requirements, which are jointly issued by Indonesian
the SiUMI (Micro and Small Enterprise Siklus Savings) Program         banks to foster the culture of saving and improve public welfare.
consisting of SiUMI Savings and SiUMI Loans.                          This product is not subjected to administrative fees.


Fishermen Siklus Savings (SINYAL)                                     Simpanan Pelajar (SIMPEL)
In line with the vision of the Central Government to actuate          This is a special savings for students from the level of
Indonesia as the World Maritime Axis, the Ministry of Maritime        elementary school to senior high school under the name of
Affairs & Fisheries, in collaboration with the Financial Services     Student Savings/ Simpanan Pelajar (SIMPEL). With a low initial
Authority (OJK), launched the JARING (Reach, Synergy,                 and affordable follow-up deposits, SIMPEL is packaged to
and Guideline) program which is expected to give positive             provide financial education and inclusion to encourage the
contribution to the maritime sector. In accordance with the           saving culture from early age. SiMPEL is a savings product
role of Bank Jatim in supporting the government programs,             for students jointly issued by Indonesian banks with easy and
it is necessary to develop and improve existing products to           simple requirements, and equipped with attractive features, to
manifest a specific savings for those in the maritime sectors,        encourage saving culture from early age.
especially fishermen.
                                                                      Simpanan Laku Pandai (Sipandai)
Siklus Prioritas Savings                                              Simpanan Laku Pandai is Bank Jatim’s savings product that
Siklus Prioritas Savings is aimed at Jatim Prioritas customers        allows the customers to conduct financial transactions without
or customers who have a minimum fund of IDR250 million                having to go to the Bank, and simply through the SiPandai Bank
with relatively high interest rates. Various convenience and          Jatim agent. Therefore, it is easier for people to connect with
exclusive banking facilities are provided for the holders of          the Bank to obtain Financial Services.
Jatim Prioritas debit card, including health services, discounts
at various merchants, Jatim Prioritas magazine, exclusive event       Siklus Pension Savings
invitations, and so on.                                               This is a savings product in the Rupiah currency aimed at
                                                                      customers of the pensioner segment and used as a means of
Foreign Currency Siklus                                               receiving pension payment from pension fund disbursement
One of the strategies pursued by Bank Jatim is to create a            companies (PT Taspen, PT Asabri, Pension Fund Companies,
Foreign Currency Siklus Savings product with the applicable           and other Pension Fund institutions partnering with Bank
foreign currencies (USD and SGD). This program is expected            Jatim). This product can be opened at all Bank Jatim’s office
to increase the growth of third-party funds’ customers and/or         network, i.e. branch offices, subbranch offices, service offices,
outstanding third-party funds in general.                             and functional Office.


Siklus Bunga Plus                                                     Consumer Loans Products
This Siklus Savings Marketing Program provides benefits in the
form of direct goods without drawing, in which the customers can      Multiguna (Multipurpose) Loan
still enjoy their savings interest at the end of the lockup period.
Simply by placing funds of a certain nominal, customers can           Consumptive sector loan facilities provided to members of
directly select the desired item without the drawing process. The     the public who had a fixed income and other income, which
lock-up or holding period is according to the customer’s choice,      could be used for all purposes as long as they did not conflict
starting from 1 to 60 months.                                         with applicable laws and regulations. The Bank provided
                                                                      Multipurpose loan facilities for the Board of Commissioners,




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report         81
Page 84
Directors and Committee Members of Bank Jatim with                     Gold Guarantee Loan
procedures according to regulatory provisions and interest rates
above the cost of funds (COF). The features of multipurpose
loan products include:                                                 Gold Guarantee Loan is a loan that is guaranteed with cash
a. Multiguna Loan – Employee                                           collateral in the form of gold bullion, gold jewelry, gold coins
b. Multiguna Loan – Retired                                            and gold coins or in other forms that can be used as collateral.
c.   Multiguna Loan - Pre Retirement Employees
d. Multiguna Loan - Pre Retirement ENT                                 Property Loan
e. Multiguna Loan - Contract Workers, First Aid, Honorary
     Workers and Village Apparatus                                     The loan facility was provided to prospective borrowers or
f.   Multiguna Loan - Retirement Widow/ Widower                        debtors for the purchase or ownership of property, including
g. Multiguna Loan – Education                                          propertybacked consumer loans (Planted Houses/ Flats/
h. Multiguna Loan - Employee Professional Allowance/                   Apartments/Shop Houses/Office Houses) for both new and
     Performance Allowance/Remuneration                                used purchases from developers or non-developers. Property
i.   Multiguna Loan - For the Board of Commissioners,                  loan Facilities include:
     Directors, and Committee Members of Bank Jatim                    a. Purchase or ownership of property.
j.   Multiguna Loan - Retired Bank Jatim                               b. Renovation or construction of property on own land.
                                                                       c.   For other consumption, it is a cash loan facility for
Employee Loan & Personal Loan Car Allowance                                 other consumptive needs such as purchasing a vehicle,
Program                                                                     educational expenses, and others.
                                                                       d. Take Over, Take Over plus Top Up.
Employee Loan                                                          e. Purchase or ownership of Bank auction property, a loan
Loan facilities provided to Bank employees for all purposes as              facility for the purchase or ownership of property auction
long as they did not conflict with laws and regulations.                    results at the Bank.
                                                                       f.   Purchase or ownership of family property, a loan facility
Personal Loan Car Allowance Program (CAP)                                   that accommodated the purchase or ownership of property
Loan facilities that were used to procure official vehicles for Bank        dedicated to your beloved family.
employees with certain positions, were provided in accordance
with the provisions of the Bank’s Car Allowance Program.               Commercial, Corporate and Syndication
                                                                       Loan
Motor Vehicle Loan
                                                                       Transactional Pattern Contractor Loan
Motor Vehicle Credit (KKB) is a loan facility provided to
prospective borrowers or debtors, either directly or indirectly,       Transactional Working Capital Loans for contractors were
for the purchase/ownership of new or used motorized vehicles           working capital loan facilities for contractors to complete a job
used either for consumptive purposes or to support business            based on a work contract with a certain ceiling, the repayment
operations or refinancing.                                             of which came from the payment of the relevant project terms.


Cash Collateral Credit                                                 Standby Loan Contractor Loans

Cash Collateral Credit (CCC) is a loan that is guaranteed by           The Contractor’s Working Capital Loan with the Standby Loan
cash collateral in the form of Bank Deposits/Current Accounts/         pattern was a working capital loan facility for a Contractor
Savings.                                                               to complete a job based on a Work Contract with a certain
                                                                       ceiling which could be disbursed revolving per project or work
                                                                       contract, and the repayment of the loan was sourced from the
                                                                       payment of the relevant Project term.




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                                                                                                                    COMPANY
                                                                                                                     PROFILE




Installment General Working Capital Loan                           Receivable Financing Loan


Working Capital Loan Installment loan facility provided for        Receivable Financing loan is a type of loan facility given to
working capital purposes where the disbursement can be done        the holders of receivables/ bills whose returns are clear and
simultaneously and is non revolving in which the payment is        can be confirmed. The receivable financing loan facility aims
made in installments.                                              to provide assistance for the customers/prospective customers
                                                                   who are in need of working capital as their receivables/bills
Current Account Working Capital Loan                               cannot be billed/disbursed yet at that time. The advantage of
                                                                   this loan is in its quick process.
Current account working capital loan is a working capital
financing facility given to the customers to fulfill the lack of   Regional Government Loan
their working capital, which expires within a maximum period
of 1 year.                                                         This loan facility is provided for the Regional Government within
                                                                   and outside the East Java Region in the form of investment
Investment Loan                                                    loans. The loans can be used to finance the development of
                                                                   facilities and infrastructure as the Regional assets that can
Investment loan is a medium/long-term loan given to customers      generate revenues for the repayment of loans, as well as to
for purchasing capital goods and service for the purposes          provide benefits for community services and/or working capital
of rehabilitation and establishment of new businesses. The         loan to cover the lack of Regional Cash Flow in the same year
settlement of loans shall be sourced from the yields of business   budget, with certain limit that can be disbursed in accordance
using the financed capital goods.                                  with the regional financing needs. The advantage of this loan
                                                                   is that it can significantly accelerate the development in the
Property Construction Loan                                         region.


Property Construction loan is a working capital loan facility      Trade Finance Loans
provided by the Bank to the customers, specifically Developers
who are in the process or will undergo a job on property           Loan facilities provided to debtors engaged in export and
projects.                                                          import with due observance of the aspects of sound lending.


Syndicated Loan                                                    Micro, Retail dan Loan Program

Syndicated Loan is a loan given to the debtors by 2 (two) or       Retail Jatim Loan
more Banks/NonBank financial institutions, with the same terms
or conditions for all syndicated participants, which is agreed     Jatim Retail loan was one of the productive loan schemes
within a documentation and administrated by an institution         owned by Bank Jatim to support prospective debtors in
called an agent.                                                   obtaining capital assistance, especially MSME debtors with a
                                                                   maximum loan limit of IDR1 billion.
Loan to Regional Public Service Agencies
(Badan Layanan Umum Daerah – BLUD)                                 Micro Laguna Loan

This is a loan facility given to Regional Work Units or each       A loan given to micro businesses for business development
Work Unit within the Regional Work Units in the Regional           so that they can increase into small and medium enterprises
Government aimed to provide services to the community              directly to individuals or business groups.
in the form of goods and/or services which are sold without
prioritizing profit and instead based on the principles of
efficiency and productivity.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
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Linkage BPR Loan                                                  Food Security And Energy Credit (KKPE)


A loan facility provided by Bank Jatim to micro and small         Investment credit and / or working capital that is provided in
entrepreneurs through the Rural Bank (BPR) Perbamida and          order to support the implementation of the Food and Energy
Perbarindo, both who are already members of APEX or not yet       Security Program in the fields of agriculture, plantation, livestock
APEX members.                                                     and marine and fisheries which receive interest subsidies from
                                                                  the Government.
People’s Business Credit (KUR)
                                                                  Micro Jatim Loan
Loan/financing for working capital and/ or investment to
Micro, Small, Medium Enterprises and Cooperatives (UMKMK)         A working capital loan and/or investment in the productive
in productive and feasible but not bankable business fields       sector provided for business development to micro and small
with a credit limit of up to IDR500 million guaranteed by the     entrepreneurs.
Guarantee Company and criteria for potential borrowers to
receive KUR in accordance with Government regulations.            Fintech Linkage Loan

Credit To Cooperatives For Its Members                            A working capital loan that is given to a group of micro-
(KKPA)                                                            entrepreneurs to meet the needs of expenses that run out in
                                                                  one cycle of business activity.
A working capital loan provided by a bank to cooperatives,
both primary and secondary cooperatives, to be distributed        SiUMI Loan
to their members. In addition, Bank Jatim is also collaborating
with PTPN X and PTPN XI regarding the distribution of KKPA        A working capital and/or investment loan provided by the Bank
credit for the Sugarcane Sector.                                  for micro and small scale productive business actors who have
                                                                  a Micro, Small Business License (IUMK) and a SIKLUS ATM card
Credit To Cooperative (KKOP)                                      with data on potential debtors.


A working capital loan and / or investment credit provided        Credit BPR RC (Newspaper Account)
by the Bank to cooperatives, both primary and secondary
cooperatives to meet the needs of cooperatives as institutions.   A loan facility to BPR that is given for working capital purposes
                                                                  where the withdrawal can be made at any time through the
KUMK Su-005/Government Investment Credit                          checking account up to a certain limit by using a check/bilyet
(KIP)                                                             giro.


Credit/financing whose source of funds is from the State          Treasury Products
Revenue and Expenditure Budget (APBN) which is used
to finance activities to increase production and/or control       General Foreign Exchange (Telegraphic Transfer)
production carried out by micro and small businesses.
                                                                  Telegraphic transfer is a sale and purchase transaction on
Cow Breeding Business Credit (KUPS)                               foreign currency in the form of general (non-cash) foreign
                                                                  exchange. Bank Jatim offers telegraphic transfer for USD,
A loan provided by implementing banks to Cattle Breeding          GBP, SGD, JPY, HKD, EUR, and CNY currencies. The types of
Business Actors who receive interest subsidies from the           telegraphic transfer transactions provided by the Bank are as
Government. What is meant by Cattle Breeding Business             follows:
Actors are livestock companies, cooperatives, groups/groups
of breeders conducting Cattle Breeding Businesses.                Fx Today (Foreign Exchange Today)
                                                                  FX Today transaction is a sale and purchase transaction on
                                                                  foreign currency with the time of delivery of funds conducted
                                                                  on the day/date of the transaction.




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Fx Tom (Foreign Exchange Tomorrow)
                                                                          b. D/P: the service of forwarding documents on orders
FX Tom transaction is a sale and purchase transaction on                      from the Exporter/Seller to the bank to be billed for the
foreign currency with the time of delivery of funds conducted in              payment to the Importer/Buyer bank on a show basis.
1 (one) working days following the day/date of the transaction.       2. Letter of Credit (LC) Advising
                                                                          Forwarding receipt of LC Master or Amendment LC to the
Fx Spot (Foreign Exchange Spot)                                           recipient of the Export LC/ seller.
FX Spot transaction is a sale and purchase transaction on             3. Transferable Letter of Credit
foreign currency with the time of delivery of funds conducted in          Carry out transferable LCs at the request of the Exporter of
2 (two) working days following the day/date of the transaction.           Bank Jatim customer as the first Beneficiary.
                                                                      4. Takeover of Export Notes (Discount)
Fx Forward (Foreign Exchange Forward)                                     Post shipment financing services provided by Bank Jatim
FX Forward transaction is a sale and purchase transaction on              on the basis of the export documents presented and
foreign currency with the time of delivery of funds conducted in          have complied with the LC (Complete and Comply with)
more than 2 (two) working days following the day/date of the              provisions.
transaction.                                                          5. Provide Assistance and Advisory services to the customers
                                                                          concerning international trade transactions conducted in a
Bank Notes                                                                manner that guarantees the security of both customers and
                                                                          Bank Jatim.
Bank Notes is a sale and purchase transaction on foreign
currency in the form of paper money or cash. The foreign              Bank To Bank Transaction Export
currencies served by the Bank are:                                    1. Forfaiting
•   USD                                                                   It is export receivable sales transaction services between
•   GBP                                                                   Bank Jatim and other banks.
•   EUR
•   SGD                                                               Import
•   JPY
•   HKD                                                               Bank Jatim provided solutions for import transactions to
•   CNY                                                               customers so that they could purchase goods more safely,
•   SAR                                                               because payment could be made after the goods arrive at the
•   AUD                                                               port or the billing document for the purchase of the goods is in
•   MYR                                                               accordance with the requirements.


Deposit On Call                                                       Bank to Customer Transaction Impor
                                                                      1. Letter of Credit Issuing
On-Call Deposits is a deposit of a certain nominal to the Bank            Issuance of the LC Master or Amendment LC for the benefit
carried out in accordance with the applicable provisions, with a          of the Importer/Buyer to the Advising Bank/Exporting
period of less than 1 (one) month.                                        Bank.
                                                                      2. Shipping Guarantee
Trade Finance Product                                                     Import services in accelerating the process of releasing
                                                                          goods/ cargo releases at the port so that the imported
Export                                                                    goods can be used immediately, based on a letter of
                                                                          guarantee issued by Bank Jatim. This could provide
Bank Jatim could provide financing for customer export                    benefits for importers, namely reducing or reducing the
transactions from before delivery of goods (Pre Shippment                 burden of warehouse rental costs/ demurrages that must
Financing) to after delivery of goods (Post Shipment Financing).          be borne.
                                                                      3. Provide Assistance and Advisory services to the customers
Bank to Customer Transaction Export                                       concerning international trade transactions conducted in a
1. Documentary Collection                                                 manner that guarantees the security of both customers and
    a. D/A: namely the service of forwarding documents on                 Bank Jatim.
          orders from the Exporter/ Seller to the bank to be billed
          for the payment to the Importer/Buyer bank through
          acceptance according to a certain agreed period of time.



                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report        85
Page 88
Bank to Bank Transaction Impor                                       Inkaso Rupiah
1. UPAS Financing
     It is a transaction service for the purchase of imported        Is the delivery of scripts (Cheques, Billet, Giro, Wesel) to Banks
     debt by PT Bank Pembangunan Daerah Jawa Timur Tbk,              interested in getting payments because they cannot be settled
     in which Bank Jatim acts as Funding Bank for the Usance         through clearing facilities (Banks are interested outside the
     Payable at Sight transactions.                                  clearing area) using Rupiah currency.


Domestic Transactions (SKBDN)                                        Inkaso Valas

In the transaction of trade in domestic goods and services, of       Is the delivery of scripts (Cheques, Billet, Giro, Wesel) to Banks
course, it also requires certainty of receipt of payments or even    interested in getting payments because they cannot be settled
acceleration of receipt of payments. All of the above export and     through clearing facilities (Banks are interested outside the
import solutions could be applied to domestic transactions.          clearing area) using forex currency (USD).


Term Loan Facility (TLF)                                             Giralization

Term Loan Facility (TLF) is a committed loan facility provided       Giralization is a payment made by the customers that is carried
to commercial banks with a maximum term of 1 (one) year and          out automatically by the Bank by debiting the current account/
as a form of product diversification effort as well as to increase   savings account of the relevant customers based on the debit
Bank Jatim’s potential interest income.                              order signed by the customers.


Business Services                                                    BPD Net Online

Bank Reference                                                       This is a transfer facility between BPDs throughout Indonesia
Bank Reference is a statement issued by Bank Jatim which             that is incorporated in ATM Bersama in Real Time.
explains that the undersigned person/company is truthfully
a customer of Bank Jatim. Bank References can be used by             Jatim Electronic Transfer System (JETS)
customers to participate in certain project auctions.
                                                                     Jatim Electronic Transfer Sistem (JETS) enables all transactions
National Clearing                                                    to be connected online; for example, transfers between BPRs
                                                                     or to commercial banks.
National Clearing is the credit funds transfer between Banks
through clearing without the obligation to make physical paper       JConnect Invest
(Paperless) exchanges. The transfer can be done within all
regions of Indonesia.                                                JConnect Invest was a mobile-based online securities
                                                                     investment platform that could be downloaded on the Playstore
Real Time Gross Settlement (RTGS)                                    and Appstore and integrated with distribution partners and
                                                                     the Ministry of Finance. The JConnect Invest application was
RTGS-based fund transfer system enables the Bank to carry            registered with the Financial Services Authority and provided
out various electronic transactions of fund payments/transfer        Retail Government Securities (SBN) investment products with
instantly/online with an integrated settlement of transaction.       offers on the primary market. Products that can be ordered
                                                                     through the Jconnect Invest application include:
                                                                     1. ORI (Obligasi Ritel Indonesia)
                                                                         One of the Government Securities (SBN) instruments offered
                                                                         to individuals or Indonesian Citizens through Distribution
                                                                         Partners in the Primary Market with a predetermined
                                                                         minimum volume.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
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2. SBR (Saving Bond Ritel)                                            the Bank’s Teller or through the entire e-Channel, and has been
    A type of Government Bond (SUN) or SBN specifically               online throughout all Branches of the Bank. Various types of bill
    offered to individuals or individuals whose nature is similar     payments include:
    to savings or bank deposits, because they cannot be traded        •   Water (PDAM) Bill Payment
    back on the secondary market.                                     •   Electricity (PLN) Bill Payment
3. SR (Sukuk Ritel)                                                   •   Phone Bill Payment
    Sharia investment products offered by the Government to           •   Payment for Education Fees
    individual Indonesian Citizens, as a safe, easy, affordable       •   Internet Bill Payment
    and profitable investment option.                                 •   Subscription TV Bill Payment
4. ST (Sukuk Tabungan)                                                •   Payment for Surabaya Container Terminal (TPS)
    Sharia investment products issued by the Government to            •   Multi Finance Bill Payment
    individual Indonesian citizens that are safe, easy, affordable,   •   Credit Card Bill Payment
    profitable, and shariacompliant which are similar in nature       •   Payment for Airline or Train Tickets
    to savings or bank deposits, because they cannot be resold        •   E-Commerce Transactions Payment
    on the secondary market.
                                                                      Salary Payroll
Transaksi Remittance
                                                                      Salary payroll is a type of services provided by Bank Jatim to its
This is a service from Bank Jatim to send funds in a foreign          customers. The mechanism of salary payroll is by transferring
currency at home and abroad. This service makes it easier for         certain amount of salary from a holding account on behalf of an
the Customers to make transactions with business partners and         institution or a company to a salary recipient’s savings account.
family abroad. Remittance Transactions provide convenience
and smoothness that can be carried out in Bank Jatim Branch           Trade Transaction Services
Offices and Sub-Branch Offices throughout East Java, Jakarta,
and Batam. This transaction serves foreign exchange transfers         Domestic Letter of Credit (SKBDN)
in USD, EUR, GBP, SGD, JPY, HKD, AUD, and CNY.                        The domestic letter of credit (SKBDN) is an instrument issued
                                                                      by an issuing bank at the request of the buyer/applicant, which
Institutional Services                                                consists of the bank’s commitment to pay a sum of money to
                                                                      the seller/ recipient if the issuing bank receives documents in
Tax Services                                                          accordance with the SKBDN requirements. SKBDN is used to
                                                                      support domestic trade transactions. Bank Jatim can serve the
Tax is one of the services provided by Bank Jatim to its              needs both from the sides of the applicant and recipient of the
customers. Tax Service is related to the status of Bank Jatim         SKBDN.
as an Operational Bank V (BO V) or as a Perception Bank (Tax
Payment Bank). The Bank’s online service system has been              Letter of Credit (L/C)
authorized by the Directorate General of Central Taxes and its        Letter of Credit is an instrument issued by a bank on behalf of
validity is recognized. The types of tax services offered are as      one of its customers, which authorizes a person or a company
follows:                                                              as the recipient of said instrument to withdraw a money order
•   Property Tax                                                      from the bank or on one of its correspondent banks for the
•   Customs for Land and Building Rights                              interest, based on the conditions/ requirements stated on the
•   Other Regional Taxes                                              instrument.
•   Vehicle Tax
•   Value-Added Tax (VAT)                                             Foreign Exchange Transfer (Remittance)
•   Income Tax                                                        Bank Jatim provides Foreign Exchange Transfer Services to
•   Non-Tax Revenue                                                   facilitate and simplify transactions for its customers. Foreign
                                                                      Exchange Transfers are unconditional payment orders sent
Bill Payment                                                          from sending banks from within or outside the country to
                                                                      recipient banks in the form of Foreign Exchange at the request
Bill payment is one of the services provided by Bank Jatim to         and for the interests of order givers, by using authenticated
its customers. This payment service can be performed through          means (SWIFT, Tested Telex, and Tested Facsimile).




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report          87
Page 90
Export/Import Tax Receipt (Edi System)                               KPR Sejahtera
EDI System aims to provide assistance in terms of export and
import documents, namely the Goods Import Notification               House ownership financing by the support of Housing
(PIB) and Goods Export Notification (PEB) services. Customs          Financing Liquidity Facility (FLPP), including KPR Sejahtera for
administration is able to process customs notification in the        Landed House and KPR Sejahtera for Multi-level Housing/Flats,
customs service computer system that can further be transmitted      issued by the Bank with murabahah contract.
electronically; hence, the same data will immediately be available
at the computer system of the Directorate General of Customs         Multiguna Sharia
and Excise without having to undergo the re-entry process.
                                                                     Providing financing in the consumer sector and for other
Sharia Financing Products                                            purposes as long as it did not conflict with applicable legal
                                                                     regulations, which could be given to members of the public
General Financing                                                    who had a fixed income and other income using murabaha and
                                                                     ijarah contracts. Features of multipurpose financing products
Investment Financing is a facility provided to finance investments   include:
or procurement of capital goods that are not consumables up          a. Multipurpose Financing - Employees
in one business cycle Working Capital Financing is a facility        b. Multipurpose Financing - Pensioners
provided to finance and fulfill the working capital needs in order   c.   Multipurpose Financing - Employee Pre-Retirement
to perform the business activities and usually are consumables       d. Multipurpose Financing - ENT PreRetirement
up in one production cycle, such as for the procurement of raw       e. Multipurpose Funding - Contract Labor, First Aid, Honorary
materials or to finance the lack of other operational costs.              Staff and Village Devices
                                                                     f.   Multipurpose Financing - Widow/ Widower Pension
KPR iB Griya Barokah                                                 g. Multipurpose Financing - Education
Consumption financing consists of:                                   h. Multipurpose      Financing    -   Employee      Professional
a. Financing provided by the Bank for the ownership of                    Allowances/Performance Allowances/Remuneration
     Landed House, including Financing for consumption               i.   Multipurpose Financing - For the Board of Commissioners,
     backed by Landed House.                                              Directors and Committee Members of BankJatim
b. Financing provided by the Bank for the ownership of               j.   Multipurpose Financing - Bank Jatim Retired Employees
     the multi-level housing/flats, including Financing for
     consumption backed by the multi-level housing/flats.            Emas iB Barokah
c.   Financing provided by the Bank for the ownership of
     Shophouses or Home Offices, including Financing for             Financing for the customers with the principle of Qardh provided
     consumption backed by the Shophouses or Home Offices.           by the Bank to the Customer according to an agreement, which
d. Purchase of building materials and other supporting               is included with Mortgage (Marhun) as collateral for all or parts
     materials for renovation/repair of landed houses, multi-        of the customer’s debts (Rahin) to the Bank (Murtahin).
     level housing/flats, home offices or shophouses.
e. Purchase of lands along with the building materials for           Gold Ownership
     landed houses, multi-level housing/flats, home offices, or
     shophouses (indent).                                            Financing provided for the gold ownership with murabahah
f.   Take over from other Banks or financial services institutions   principle.
     with additions and/or without additions (Top Up).
g. Top up for property renovations or other consumption              Linkage Program
     needs for existing customers.
                                                                     BPRS is a financing facility given by the Bank to the BPRS
                                                                     and/or its members by implementing the akad mudharabah
                                                                     principle. PKPA/PKOP is a financing facility given by the Bank
                                                                     to a cooperative and/ or its members by implementing the
                                                                     akad mudharabah principle.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
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Linkage Fintech Financing                                            Debt Financing (Anjak Piutang) iB Barokah


Financing facilities provided to the customer via fintech            Transfer service for settlement of shortterm receivables or claims
companies based on sharia principles.                                from corporates / sellers (customers) to the Bank, which then
                                                                     collects the receivables from the debtors (Corporate Partners
Umroh iB Maqbulla                                                    / Buyers) which can be accompanied by short-term financing
                                                                     facilities to the Corporate / Seller (Customer) designated as
Financing provided for Multiservice Financing for Umrah with         bailout of corporate / seller (customer) liquidity needs in the
Ijarah principle.                                                    amount of receivables based on sharia principles.


Working Capital Financing for iB Barokah                             Financing Sindication
Property Construction
                                                                     Financing provided by several banks or financial institutions
Working capital financing facilities provided by the Bank to the     to meet the needs of an object of financing from customers
customer (Developer) who are or will be working on property          in the form of investment and working capital, in which this
projects based on sharia principles.                                 condition requires one of the syndicated participants to act as
                                                                     the Lead Manager (Imamus Syarik) in handling and managing
iB Barokah Land Procurement Financing                                the syndicated financing.


Financing facility to purchase simple residential land whose         Employee and Personal Financing
construction uses the Property Construction Financing facility
based on sharia principle.                                           Financing facilities provided by the Bank to the Board of
                                                                     Commissioners, Directors, Permanent Employees, Permanent
iB Barokah Contractor Financing                                      Non- Career Employees, MLE, Prospective Employees,
                                                                     Committee Members, Retired Employees and the Personal
Types and forms of financing:                                        Loan Car Allowance Program (CAP), which are used for
a. Transactional financing is a working capital financing facility   consumptive purposes and for other purposes as long as they
    for the Contractor to complete a project based on a Work         do not conflict with applicable legal regulations and based on
    Contract with a certain limit where repayment of financing       sharia principles.
    comes from payment of the relevant Project terms based
    on the sharia principles.                                        Bank Guarantee
b. Line Facility is a working capital financing facility for the
    contractor that can be disbursed on a revolving basis            Guarantee service provided to the guaranteed party (customer)
    per project if the customer/potential customer obtains a         which contains the Bank’s obligation to pay to the party
    project based on a work contract whose source of financing       receiving the guarantee if the customer fails to promise based
    payments mainly comes from the terms of the said project.        on the kafalah contract.


Financing with Investment Associated with iB                         Halal Industrial Area Financing
Barokah (ITIB)
                                                                     Halal industrial area financing was financing in the context of
Placement of a number of funds sourced from the owner of the         purchasing new warehouse assets or new factories for individual
bound investment funds managed by the Bank as collateral for         customers and/or MSMEs located in the Halal Industrial Area
financing provided to the Customer for a certain period based        (KIH).
on a mudharabah muqayyadah contract.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report          89
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Sharia People’s Business Credit (KUR) Financing                        Sipandai iB Barokah Savings


A working capital financing and/or investment to individual            A savings product with the Wadi’ah principle aimed at people
customer/individual, business entities and/or business groups          who don’t know, use and/or get banking services and other
that are productive and viable but do not have additional              financial services, especially in East Java.
collateral or additional collateral is not sufficient and is carried
out in accordance with the sharia contracts.                           Student Savings

Sharia Fund Products and Services                                      A savings product with the Wadi’ah principle aimed at students/
                                                                       administrators in Islamic boarding schools whose withdrawals
Giro iB Barokah                                                        can only be made according to certain agreed conditions,
                                                                       but cannot be withdrawn by check, giro, and/or other means
Savings products with the Wadi’ah principle and the                    equivalent to that.
Mudharabah principle, in which withdrawals could be made at
any time by using a Check/Bilyet Giro (BG), other means of             Barokah Savings
payment orders or by way of transfer. In practice, the iB Barokah
Current Account was administered by Bank Jatim Syariah in an           Savings product with the principle of Mudharabah (profit
account commonly called a Current Account.                             sharing) between the Bank and the Customer in accordance
                                                                       with the agreed ratio, which withdrawals can be made at any
Tabungan Simpel iB                                                     time but cannot be withdrawn by check, demand deposit slip,
                                                                       and/or other means equivalent to that.
“Simpanana Pelajar (Student Savings)” or SIMPEL became
a savings product based on the Wadi’ah principle that was              iB Barokah Sejahtera Savings
exchanged for students under 17 years of age and who did not
yet have a ID card issued jointly by banks in Indonesia. It was easy   This is a savings program that is combined with Barokah Savings
and simple account opening requirements as well as attractive          and provides benefit in the form of goods as a reward and/
features, as an effort to educate and financial inclusion to           or souvenir for opening iB Barokah Sejahtera Savings account.
encourage a culture of saving from an early age. The withdrawal        The account holder will still obtain profit savings at the end of
could be made at any time and the bank was not required to             the period.
provide compensation except in the form of a voluntary bonus.
                                                                       Savings Hajj iB Amanah
Tabunganku iB
                                                                       Savings products with the principle of Mudharabah (profit
Savings products with the Wadiah principle issued jointly by           sharing) are intended for the general public who wish to
banks in Indonesia in which customer deposits were treated as          carry out the pilgrimage where withdrawals can only be
safekeeping and withdrawals could be made at any time. As              made according to certain agreed conditions, but cannot be
for the withdrawal, it could only be made according to certain         withdrawn by check, giro, and/or other means equivalent to
agreed conditions, but could not be withdrawn by check,                that.
demand deposit slip, and/or other means equivalent to that.
                                                                       Saving Plan iB Barokah
Umroh iB Amanah Savings
                                                                       Savings products with the principle of Mudharabah (profit
Tabungan Umroh iB Amanah or Umroh iB Amanah Savings                    sharing) intended for the general public who wish to save their
is aimed at public in general who wish to carry out umrah              funds in order to realize all future plans and withdrawals cannot
pilgrimage. Withdrawal can only be made under certain                  be withdrawn by check, demand deposit slip, and/or other
requirements and cannot be done by checks, transfer forms,             means equivalent to that.
and/ or other instruments equivalent to such mentioned before.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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iB Barokah Pension Savings                                        JConnect Internet Banking


Savings products with the Mudharabah principle (profit sharing)   It is an electronic channel (e-channel) service allowing the bank
are intended for retired customers in the IDR currency which      to provide services to the customers through internet media
are used as a means of receiving pension payments for pension     that can be accessed anytime and anywhere, comfortably and
fund channeling institutions.                                     safely because it used dynamic PIN Token technology (always
                                                                  changing for every transaction).
Barokah Deposits
                                                                  JConnect Mobile Banking
Savings products with the Mudharabah principle (profit sharing)
where withdrawals can only be made at a certain time according    It is one of Bank Jatim’s product and service innovations based
to the agreement between the Depositor and the Bank based         one-channel, which allows the Bank to provide services to its
on the mudharabah principle.                                      customers via mobile phones using a mobile application on the
                                                                  Android and iOS platforms that use internet data packages for
Virtual Account                                                   transactions.


Virtual account is a service provided to the Bank’s customers     Jconnect e-KMG
in the form of a facility to identify the receipt of payment of
customer’s bills to a counterparty.                               This is one of the online multipurpose / consumer loan
                                                                  application service innovations for State Civil Apparatus (ASN)
Payment Point                                                     and employees whose payroll is at Bank Jatim. The application
                                                                  for multipurpose loan is done online through an application
This is a cooperation between the Bank and a third party in       based on Android and iOS.
order to receive bills payment through cash and non-cash
deposits. The bills covered by this program are, among others,    JConnect e-Loan
telephone bills, electricity bills, and tuition fees.
                                                                  This is one of the innovative online productive loan application
E-Channel (SMS Banking, J-Connect Mobile                          services for the general public. Productive loan applications are
dan J-Connect Internet Banking)                                   made online through android and iOS-based applications.


The e-Channel service covers banking transaction activities       Layanan Laku Pandai (SiPandai Bank Jatim)
through mobile phone or the Internet.
                                                                  This particular service is a program from the Financial Services
Wakaf iB Barokah                                                  Authority (OJK) to facilitate communities that are not accessible
                                                                  to banks (unbanked people). Bank Jatim collaborates with
Waqf services intended for the general public who wish to         SiPandai agents to serve customers/communities in areas that
make waqf through projects that have been provided by Bank        are not accessible by banks’ service offices to conduct cash
Jatim Syariah Nazhir partners. This service can be accessed by    withdrawal transactions, transfers, cash deposits, and other
customers through Android and iOS applications where waqf         transactions. SiPandai agents use Android based applications
payments are made through a virtual account that is connected     to serve these customers/communities.
to the iB Barokah Giro account, Nazhir Bank Jatim Syariah
partner.                                                          Info Bank Jatim (14044)

E-Channel & Other Services                                        Bank Jatim Info serves as the Bank’s Call Center with a phone
                                                                  number or shortcode of 14044. Customers can contact this
SMS Banking (3366)                                                number from house phones as well as from mobile phones.
                                                                  It provides a wide range of information related to the Bank
SMS Banking is one of the innovations of e-Channel based          Jatim’s products, services, and other relevant information.
products and services by Bank Jatim which enables the Bank
to provide services to its customers through mobile phones by
using both plain-text and mobile application modes.




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report          91
Page 94
Bank Jatim ATM Card and Debit Card                                E-Samsat Jatim


The Bank Jatim ATM card can be used for cash withdrawal           Annual STNK (Vehicle Registration Letter) ratification services
transactions, telephone payments, water, PBB, electricity,        and payment of Motor Vehicle Taxes and SWDKLLJ (Jasa
SMS Banking registration and transfers between Bank Jatim         Raharja) for the East Java province through the e-Channel of
accounts, between accounts among members of ATM Bersama           Bank Jatim, namely: ATMs, Tellers, PPOB, SiPANDAI Agents,
and ATM Prima, as well as balance checks and can be used for      JConnect Mobile and JConnect Internet Banking, as well
shopping at merchants. -merchants bearing the GPN (National       as other collecting agent channels such as the Tokopedia
Payment Gateway) logo.                                            marketplace, the GoJEK online transportation application, and
                                                                  the modern retail channel Indomaret.
Bank Jatim Flazz Card (Co-Branding)
                                                                  Samsat Digital Nasional (Signal)
Multifunctional Card Based/Chip Based Electronic Money
using RFID technology so that transactions become faster and      Annual STNK (Vehicle Registration Letter) validation services
more convenient. The result of the collaboration between Bank     and payment of Motor Vehicle Taxes and SWDKLLJ (Jasa
Jatim Co-Branding and BCA.                                        Raharja) throughout Indonesia through the e-Channel of Bank
                                                                  Jatim and other banks that become the members of SIGNAL,
Safe Deposit Box                                                  namely: ATMs, Tellers, Mobile Banking and Internet Banking by
                                                                  first accessing the SIGNAL application. Android and iOS based.
Safe Deposit Box is Bank Jatim’s service in the form of tenancy
of boxes specifically designed to store assets/ securities with   Jatim Code QRIS
small, medium and large sizes.
                                                                  The JConnect Mobile application can be used by customers
Civil Servants Electronic Card (KPE)                              to make purchases/payments by scanning QRIS installed at
                                                                  merchants or stores that have QRIS installed, both East Java
Bank Jatim presents various supporting facilities to optimize     Code QRIS and QRIS from other Payment System Service
the Civil Servants Electronic Card (KPE) function for banking     Providers (PJSP). Jatim Code QRIS can also be scanned by
activities. KPE can also function as a Bank Jatim ATM card with   applications from other PJSPs such as OVO, Shope Pay, Dana,
the exact same service as that of the other customers of Bank     Gopay, and others.
Jatim.
                                                                  BJTM Connect
Virtual Account
                                                                  Leading technology that makes it easier for customers in every
Bank Jatim Virtual Account is a special identification number     banking transaction with a strategic location, long operational
aimed for customer business partners as a payment tool for        time and more flexibility with services on holidays.
business partners to customers. With every deposit made in
Bank Jatim Virtual Account, the system will automatically
record to the Main Account by including data of the Number
and Name of the Virtual Account.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                  COMPANY
                                   PROFILE




PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report    93
Page 96
Operating
Area
As of December 31, 2023, Bank Jatim owned 1 Head
Office and 1,819 office networks consisting of Branch
Offices, Sub-Branch Offices, Functional Offices,
Payment Points, Cash Cars/Counters and ATMs/CRM.




Table of Bank Jatim Offices per Region in 2023

  Office Location      KC   KCP    KK     PP    KM      KCS   KCPS   KKS   KLS   PPS   KMS   ATM   ATMS   CRM   CRMS

 Surabaya               4    24     28    15      2      1      3     1    28     2      1   103      5    12     2

 Banyuwangi             1     6     11     4      2       -     1      -    7      -     -    28      1     4      -

 Jember                 1     6      6     5      -      1       -     -    7      -     1    24      1     2     1

 Malang                 1      5     9    14      2      1       -    1     6     1      1    30      3     2     2

 Madiun                 1      5     9     7      1      1       -     -    6      -     1    34      1     3     1

 Kediri                 1      7     9     9      2      1       -    1     8     1      1    30      2     1     2

 Pamekasan              1      2     2     3      -       -      -     -    3      -     -    14      -     1      -

 Bojonegoro             1      4     7     9      -       -      -     -    5      -     -    27      -     3      -

 Lumajang               1      4     6     2      1       -      -     -    5      -     -    22      -     3      -

 Ngawi                  1      8     4     3      2       -      -     -    9      -     -    20      -     1      -

 Jombang                1      3     7     7      1       -     1      -    4      -     -    18      1     3      -

 Kraksaan               1      2     5     2      1       -      -     -    3      -     -    10      -     1      -

 Probolinggo            1      3     3     2      2       -     1      -    4      -     -    20      1     1      -

 Blitar                 1      5     7    13      1       -     1     1     6      -     -    21      2     3      -

 Tulungagung            1      4     5     5      1       -      -     -    5      -     -    16      -     5      -

 Tuban                  1      5     4     3      -       -      -     -    6      -     -    24      -     1      -

 Mojokerto              1      3     4     4      1       -     1      -    4      -     -    24      1     1      -

 Sumenep                1      2     4     4      -       -      -     -    3      -     -    20      -     1      -




          PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                                                   PROFILE




Table of Office Network for the last 5 years

                        Office Type                                   2023                2022                   2021               2020                 2019

 Head Office (KP)                                                            1                    1                  1                  1                    1

 Conventional Branch Offices (KC)                                           41                   41                41                  41                  41

 Sharia Branch Office (KCS)                                                  7                    7                  7                  7                    7

 Conventional Sub Branch Office (KCP)                                   163                     162               182                162                  162

 Sharia Sub-Branch Office (KCPS)                                            10                   10                10                  10                  10

 Functional Office (KK)                                                 212                     212               211                209                  209

 Sharia Functional Office (KKS)                                              4                    3                 2                    -                   -

 Sharia Service Office (KLS)                                            196                     195               195                195                  191

 Payment Point (PP)                                                     191                     196               248                247                  249

 Payment Point Syaria (PPS)                                                  8                    8                 8                   9                  10

 Car Cash (KM)                                                              32                   36                97                  92                  92

 Sharia Car Cash (KMS)                                                       7                    7                 7                   6                   6

 Automatic Teller Machine (ATM)*                                        828                     815               780                753                  742

 Sharia Automatic Teller Machine (ATM)                                      26                  26                 25                  24                  23

 Cash Recycle Machine (CRM)                                                 84                  58                 51                  25                    -

 Cash Recycle Machine (CRM) Syaria                                          10                   7                  7                   2                    -

 Cash Deposit Machine (CDM)                                                  -                    -                  -                   -                  2

 Total                                                                1.820               1.784                  1.852              1.783                1.745

*Bank Jatim Automated Teller Machines (ATMs) are incorporated with 81,569 ATM BERSAMA network terminals, 101,313 PRIMA ATM terminals, 695,971 Electronic Data Capture




  Office Location          KC     KCP       KK       PP     KM      KCS          KCPS   KKS       KLS     PPS      KMS       ATM      ATMS       CRM       CRMS

 Sampang                     1        1       4        2       1        -          1        -         2      -           -     13            1       1           -

 Bangkalan                   1        3       4        6        -       -           -       -         4      -           -     11            -       3           -

 Pasuruan                    1        7       5        7       1        -           -       -         8      -           -     30            -       1           -

 Nganjuk                     1        4       5      14        1        -           -       -         5      -           -     19            -       2           -

 Trenggalek                  1        3       6        3        -       -           -       -         4      -           -     19            -       1           -

 Ponorogo                    1        4       6        4       1        -           -       -         5      -           -     21            -       2           -

 Pacitan                     1        3       2        3       1        -           -       -         4      -           -     20            -       4           -

 Gresik                      1        5       6        3       1        1           -       -         6     2            1     22            3       1           1

 Sidoarjo                    1        8      11        6       1        1           -       -         9     2            1     43            3       1           1

 Lamongan                    1        5       5        7       2        -          1        -         6      -           -     27            1       1           -

 Situbondo                   1        2       4        4       1        -           -       -         3      -           -     20            -       4           -

 Bondowoso                   1        3       3        2       1        -           -       -         4      -           -     17            -       4           -

 Magetan                     1        4       5        2        -       -           -       -         5      -           -     22            -       2           -

 Kangean                     1        -       1        -        -       -           -       -         1      -           -      6            -       1           -

 Jakarta                     1        6        -       -        -       -           -       -         -      -           -      8            -       1           -

 Batu                        1        1       4        1       1        -           -       -         2      -           -     11            -       2           -

 Bawean                      1        -       1        -        -       -           -       -         1      -           -      6            -       1           -

 Pare                        1        2       2        -        -       -           -       -         3      -           -     13            -       2           -




                                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                             2023 Annual Report                  95
Page 98
  Office Location       KC   KCP   KK    PP     KM       KCS   KCPS   KKS   KLS        PPS   KMS   ATM   ATMS     CRM      CRMS

 Kepanjen                1    4     8     1          1     -      -     -    5           -     -    14      -         1       -

 Batam                   1     -     -     -         -     -      -     -     -          -     -     1      -         1       -

 Grand Total            41   163   212   191     32       7      10    4    196         8      7   828     26         84     10



As of December 31, 2023, Bank Jatim has 7,128 East Java Agents spread throughout East Java consisting of Legal Entity Agents
and Individual Agents.


Table of Conventional East Java Agent Networks for the last 3 years

          Branch Name                          2023                          2022                           2021

 Bangkalan Branch                              166                                90                             13

 Banyuwangi Branch                             224                                31                             23

 Batu Branch                                    57                                24                             18

 Bawean Branch                                  55                                17                              7

 Blitar Branch                                 289                            143                                19

 Bojonegoro Branch                             166                                55                             24

 Bondowoso Branch                              254                            160                                33

 Dr. Soetomo Branch                            201                                25                              4

 Gresik Branch                                 157                                73                             27

 HR Muhammad Branch                            195                                32                              7

 Cabang Jember Branch                          195                                61                             10

 Jombang Branch                                103                                46                             20

 Kangean Branch                                 42                                 6                              2

 Cabang Kediri Branch                          362                                97                             17

 Kepanjen Branch                                98                                31                             13

 Kraksaan Branch                               111                                70                             21

 Lamongan Branch                               228                                99                             20

 Lumajang Branch                               118                                69                             38

 Madiun Branch                                 352                            159                                37

 Magetan Branch                                243                                95                             15

 Malang Branch                                 133                                49                             33

 Mojokerto Branch                              132                            101                                22

 Nganjuk Branch                                195                                90                             32

 Ngawi Branch                                  447                            301                               216

 Pacitan Branch                                181                                98                            27

 Pamekasan Branch                               46                                40                            16

 Pare Branch                                    73                                22                             8

 Pasuruan Branch                               165                            111                               47

 Perak Branch                                  165                                51                            23

 Ponorogo Branch                               192                                38                            15

 Probolinggo Branch                            123                                29                            12

 Sampang Branch                                 86                                34                            24

 Sidoarjo Branch                               292                            112                               12

 Situbondo Branch                              99                                 19                            11




         PT Bank Pembangunan Daerah Jawa Timur Tbk
96       2023 Annual Report
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                                                                                                                               COMPANY
                                                                                                                                PROFILE




          Branch Name                                2023                            2022                               2021

 Sumenep Branch                                       58                              42                                  12

 Trenggalek Branch                                   183                              41                                  15

 Tuban Branch                                        379                             141                                  16

 Tulungagung Branch                                  254                             118                                  35

 Main Branch                                         128                              92                                  34

 Grand Total                                       6.948                            2912                                978



Table of East Java Sharia Agent Network for 2023

                                               Sharia Branch                                                        Total Agent

 Surabaya Sharia Branch                                                                                                   44

 Kediri Sharia Branch                                                                                                     24

 Madiun Sharia Branch                                                                                                     10

 Jember Sharia Branch                                                                                                      6

 Malang Sharia Branch                                                                                                     39

 Sidoarjo Sharia Branch                                                                                                   12

 Gresik Sharia Branch                                                                                                     51

 Total                                                                                                                  186




Association
Membership List

As a financial services institution, Bank Jatim joined and was active in various associations or institutions that are relevant to the Bank’s
main business. Thus, the Bank can follow the latest developments, issues, or newest topics, as well as exchange information and
provide suggestions/inputs for mutual progress. During 2023, Bank Jatim joined the following associations/institutions as follows:



                                   Association Name                                            Year Joined          Membership Status

 Asosiasi Bank Pembangunan Daerah (Asbanda)/ Association of Regional Development Banks             1993                    Member

 Forum Komunikasi Dewan Komisaris BPD Se-Indonesia (FKDK-BPDSI)/ Indonesian BPD                    2002                    Member
 Board of Commissioners Communication Forum

 Asosiasi Emiten Indonesia (AEI)/ the Indonesian Issuers Association                               2012                    Member

 FCSR Social Ministry                                                                              2016                    Member

 Forum Komunikasi Lembaga Jasa Keuangan Daerah (FK-LJKD)/ Regional Financial Services              2016                    Member
 Institution Communication Forum

 Indonesian Corporate Secretary Association (ICSA)                                                 2019                    Member




Bank Jatim’s membership in organizations/associations had a strategic meaning. The Bank aligned with the latest developments
in the banking world and contributed knowledge and experience to members of organizations/associations. Bank Jatim did not
contribute financially beyond regular membership fees, including not contributing to politics or politicians.




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report            97
Page 100
Organizational
Structure
Along with the development of the Bank’s business, the Organizational Structure of Bank Jatim
                                                                                                                      Sharia Supervisory Board
has undergone several changes. Based on Board of Directors Decree No. 061/218/DIR/PRS/KEP                        Drs. KH. Afifuddin Muhajir, M.Ag
dated December 7, 2022 and Directors Circular No. 062/003/DIR/PRS/SE dated February 24,                           (Chairman), Dr. M. Saad IH, MA
                                                                                                                (Dr. dr. Sukadiono, MM) (Member)***
2023, the following is the organizational structure of Bank Jatim as of December 31, 2023.




            Director of Micro, Retail      Director of Finance, Treasury      Director of Risk           Director of IT                 Director
                  and Medium                   and Global Services             Management                  & Digital                 of Operation
              R. Arief Wicaksono                  Edi Masrianto               Eko Susetyono             Zulhelfi Abidin              Arif Suhirman




                            Director of Micro,           Accounting and
 Corporate Secretary                                                           Risk Management           Information               Operations
                           Retail and Medium         Financial Management                                Technology
 Wioga Adhiarma Aji        Firman Iswahyudi M                                   Suci Issumiyarti       Handayanto (Pjs)          Eko Tri Prasetyo
                                                     R. Deni Mahendra (Pjs)
                                   (Pjs)


     Internal Audit                                         Treasury                                   Digital Banking
                               Micro Loan                                      Credit Risk Analyst                                   General
       Wardhana                                            R. Wahyu                                  M. Machfud Hidayat
                           Teguh Sunyoto (Pjs)         Tedjasukmana (Pjs)     Setya Erry Nugraha                                 Herijadi Widodo
      Suryaatmaja                                                                                            (Pjs)



                                                      International Banking   Credit Restructuring                                  Product
                                                        R. Wahyukusumo           and Recovery                                     Development
                                                           Wisnubroto          Wahasta Hartadi                                   Nur Eko Ardian




                                                                                                          Security IT          Loan Administration
                                                                                                      Syaiful Bakhri (Pgs)          Santoso
           Directors                SEVP


                                                                                                                               Conventional / Sharia
           Division                 Unit                                                                                         Branch Offices




                                                                                            Management Staffing
                         ALCO Committee                Risk Management Committee                                                 IT Committee
                                                                                                 Committee
                       Busrul Iman (Chairman)             Busrul Iman (Chairman)                                             Busrul Iman (Chairman)
                                                                                           Busrul Iman (Chairman)




        PT Bank Pembangunan Daerah Jawa Timur Tbk
98      2023 Annual Report
Page 101
                                                                                                                                                        COMPANY
                                                                                                                                                         PROFILE




    General Meeting
    of Shareholders


                                                                                                               Audit Committee              Risk Monitoring Committee
                                        Board of Commissioners                                               Sumaryono (Chairman)          Muhammad Mas’ud (Chairman)
                      Adhy Karyono (Commissioner), Candra Fajri Ananda (Independent
                                                                                                                       Nomination & Remuneration Committee
                      Commissioner), Muhammad Mas’ud (Independent Commissioner),
                                                                                                                         Candra Fajri Ananda (Chairman)
                                 Sumaryono (Independent Commissioner)




       President Director
          Busrul Iman




        Director
     of Complience
    Tonny Prasetyo




                              Corporate, Syndicated                                                                      Corporate
                                 and Institutional          Consumer Banking               Sharia Business                                       Network and Services
                                                                                                                       Transformation
                                  Koerniawan                    Hermita                     Umi Rodiyah                                          Revi Adiana Silawati
                                                                                                                      Budi Sumarsono
                                  Prijambodo


     Compliance               Corporate Commercial                                                                      Human Capital            Network and Services
     Putu Denny               Credit and Syndicated         Consumer Credit               Sharia Business             Slamet Purwanto
                                   Mukhlison               Agus Sastriono (Pjs)        Misbakhul Iman (Pjs)                                          Melvin (Pjs)
   Hariwidyanta (Pjs)                                                                                                       (Pjs)



                                                                                           Sharia Support            Strategic Planning &            Subsidiaries
       Legal                                                Funds and Services                                        Work management
                                                                                           M. Pramudya                                              Management
  Mugni Nurachman                                              Sis Maryadi                                           Runita Pri Purwanti
                                                                                            Iskandar (Pjs)                                       Glemboh Priambodo
                                                                                                                             (Pjs)


       Policies and
       Procedures
      Herry Setya
      Yudakka (Pjs)




                                  Institutional
                                    Relations
                                Retno Handayani


                                                                                                                                                      Subsidiaries




                                                                                   Product and Network
                                           Credit Policy Committee
      Credit Committee****                                                              Committee
                                           Busrul Iman (Chairman)                 Busrul Iman (Chairman)

Committee members under the Board of Commissioners as of 31 December 2023 are as follows:
1. Audit Committee: Sumaryono (Chairman), Muhammad Mas'ud (Member), Kusnadi (Member), dan Moch. Arifin (Member).
2. Remuneration and Nomination Committee: Muhammad Mas’ud (Chairman), Suprajarto (Member), Candra Fajri Ananda (Member), Sumaryono
   (Member), Adhy Karyono* (Member) dan Slamet Purwanto** (Member).
3. Risk Monitoring Committee: Sumaryono (Chairman), Muhammad Mas’ud (Member) dan Sulam Andjar Rochim (Member).

* The term of office was effective after passing the fit and proper test by the Financial Services Authority (OJK) on November 24, 2023.
** The term of office started from December 28, 2023
*** There has been no announcement of passing the fit and propper test
**** Names of Credit Committee can be seen in the Corporate Governance Chapter

Names of Committee Members under the Board of Directors can be seen in the Corporate Governance Chapter.

                                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                2023 Annual Report                   99
Page 102
Profile
of The Board of Directors


Busrul Iman
President Director



           Citizenship                :   Indonesian citizens

           Place and                      Born in Surabaya in 1964,
                                      :
           Date of Birth/Age              59 years old as of December 2023

           Domicile                   :   Surabaya




Educational              • Bachelor of Economics in Accounting from STIE Indonesia (1986).
Background               • Master in Strategic Management from Diponegoro University, Semarang (2005).
                         • Professional Accountant from the University of Jendral Sudirman, Purwokerto (2007).
Certification            •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2006).
                         •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2008).
                         •   Level 3 Risk Management Certification by the Risk Management Certification Agency (2012).
                         •   Level 4 Risk Management Certification by the Professional Certification Organizing Body (2015).
                         •   Level 5 Risk Management Certification by the Risk Management Certification Agency (2019).
                         •   Maintenance of Level 5 Risk Management Certification by the Risk Management Certification Agency (2023).
                         •   Training Executive Sharia Banking Certification by Muamalat Institute (2023)
Work Experience          •   Head of Meulaboh Branch, Banda Aceh Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (1995-1998).
                         •   Head of Rantau Prapat Branch, Medan Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (1998-2001).
                         •   Head of Tuban Branch Surabaya Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2001–2004).
                         •   Head of Banjarnegara Branch, Yogyakarta Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2004–2007).
                         •   Head of Solo Branch, Yogyakarta Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2007-2009).
                         •   Head of Madiun Branch Malang Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2009-2010).
                         •   Head of Malang Kawi Branch, Malang Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2010-2012).
                         •   Deputy Regional Head of Operations for the Palembang Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2012-2013).
                         •   Deputy Regional Head of Business Division for the Palembang Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2013-2014).
                         •   Deputy Regional Head of Business Division for the Lampung Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2014-2015).
                         •   Head of Credit Restructuring & Settlement Division for Credit Risk Control at Head Office PT Bank Rakyat Indonesia (Persero) Tbk
                             (2015-2017).
                         •   Head of Malang Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2017-2018).
                         •   Head of Policy & Human Capital Development Division Head Office PT Bank Rakyat Indonesia (Persero) Tbk (2018-2019).
                         •   Head of Surabaya Regional Office PT Bank Rakyat Indonesia (Persero) Tbk (2019).
                         •   Commercial and Corporate Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2019 - 2020).
                         •   President Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2020-present).
Legal Basis of           Appointed as Commercial and Corporate Director for the first time at the EGMS of PT Bank Pembangunan Daerah Jawa Timur Tbk
Appointment              on June 19, 2019. Passed the Fit and Proper Test and was approved by the Financial Services Authority (OJK) as Commercial and
                         Corporate Director based on a copy of the decision of the members of the Board of Commissioners of the Service Authority Finance
                         (OJK) No. KEP-191/D.03/2019 October 11, 2019.
                         Appointed as President Director at the EGMS of PT Bank Pembangunan Daerah Jawa Timur Tbk on July 23, 2020. Passed the Fit
                         and Proper Test and was approved by the Financial Services Authority as President Director based on a copy of the Decision of the
                         Board of Commissioners of the Financial Services Authority No. Kep-44/D.03/2020 April 30, 2020.
                         Appointed as PGS Director of Commercial and Corporation of PT Bank Pembangunan East Java Tbk since the issuance of a
                         Decree on August 3, 2020 based on a Decree of the Board of Commissioners Member No. 059/008/DK/KEP/2020
Period of Office         • 2019 Until the closing of the Annual GMS for Fiscal Year 2020 (First Period).
                         • 2020 Until the closing of the Annual GMS for Fiscal Year 2024 (Second Period).
Double Function          •   Chairman of the Asset Liabilities Committee (ALCO) Bank Jatim
                         •   Chairman of the Bank Jatim Risk Management Committee
                         •   Chairman of the Information Technology Steering Committee (ITSC) Bank Jatim
                         •   Chair of the Bank Jatim Credit Policy Committee
                         •   Chairman of the Bank Jatim Product Committee
                         •   Chair of the Bank Jatim Network Committee
                         •   Chairman of the Bank Jatim Personnel Management Committee
                         •   Risk Function Groups on the Credit Committee except Credit Lines to Corporations (as a Business Function Group) Bank Jatim
Bank Jatim Share         2.958.900 shares
Ownership

         PT Bank Pembangunan Daerah Jawa Timur Tbk
100      2023 Annual Report
Page 103
                                                                                                                                 COMPANY
                                                                                                                                  PROFILE




Tonny Prasetyo
Director of Compliance



          Citizenship              :   Indonesian citizens

          Place and                    Born in Malang in 1969,
                                   :
          Date of Birth/Age            54 years as of December 2023.

          Domicile                 :   Mojokerto




Educational              • Bachelor of Agriculture from Darul Ulum University, Jombang (1995).
Background               • Master in Management from Dr. Soetomo, Surabaya (2019)

Certification            •    Level 1 Risk Management Certification by the Risk Management Certification Agency (2007).
                         •    Level 2 Risk Management Certification by the Risk Management Certification Agency (2009).
                         •    Level 3 Risk Management Certification by the Risk Management Certification Agency (2011).
                         •    Level 4 Risk Management Certification by the Risk Management Certification Agency (2017).
                         •    General Banking Level 3 by the Banking Professional Certification Institute (2018).
                         •    Level 5 Risk Management Certification by the Risk Management Certification Agency (2019).
                         •    General Banking Level 3 by the Banking Professional Certification Institute (2022).
                         •    Refreshment of General Banking Level III by the Indonesian Banking Development Institute (2022).

Work Experience          •    Situbondo Branch Manager of PT Bank Pembangunan Daerah Jawa Timur Tbk (2012).
                         •    Situbondo Branch Manager of PT Bank Pembangunan Daerah Jawa Timur Tbk (2013).
                         •    Head of Blitar Branch of PT Bank Pembangunan Daerah Jawa Timur Tbk (2013–2014).
                         •    Head of the Kediri Branch of PT Bank Pembangunan Daerah Jawa Timur Tbk (2014).
                         •    Head of Loans at Main Branch PT Bank Pembangunan Daerah Jawa Timur Tbk (2014–2015).
                         •    Head of Sharia Business Division at PT Bank Pembangunan Daerah Jawa Timur Tbk (2015).
                         •    Head of General Division of PT Bank Pembangunan Daerah Jawa Timur Tbk (2015–2016).
                         •    Director of IT and Operations at PT Bank Pembangunan Daerah Jawa Timur Tbk (2019 – 2022).
                         •    Director of Operations PT Bank Pembangunan Daerah Jawa Timur Tbk (2022)
                         •    Acting Compliance Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2022 – 2023).
                         •    Director of Compliance of PT Bank Pembangunan Daerah Jawa Timur (2023 – present).

Legal Basis of           Appointed as Director of IT and Operations for the first time at the General Meeting of Shareholders (GMS) of PT Bank
Appointment              Pembangunan Daerah Jawa Timur Tbk on June 19, 2019, Passed the Fit and Proper Test and was declared effective
                         by the Financial Services Authority (OJK) as Director of Information Technology and Operations based on the Decree
                         of Members of the Board of Commissioners of the Financial Services Authority (OJK) No. KEP-190/D.03/2019 October
                         11, 2019. Then he was appointed Director of Operations based on the Extraordinary General Meeting of Shareholders
                         (EGMS) of PT Bank Pembangunan Daerah Jawa Timur Tbk on December 7 2022. Based on the Decree of the Board
                         of Commissioners No. 061/10/DKM/KEP dated December 13, 2022, he was appointed as temporary replacement for
                         Compliance Director. Based on the Annual General Meeting of Shareholders for the 2022 Fiscal Year dated April 12,
                         2023, he was appointed as Director of Compliance, and based on the Decree of the Board of Commissioners Number
                         062/02/DKM/KEP dated April 12, 2023, concerning the Appointment of a Temporary Replacement and Division of
                         Duties of the Directors of PT Bank Pembangunan Daerah East Java Tbk, he was appointed as a temporary replacement
                         for the Compliance Director. He served as Compliance Director effective since passing the fit and proper test by the
                         Financial Services Authority on May 26, 2023.

Period of Office         2019 – Until the closing of the Annual GMS for Fiscal Year 2023 (First Period).

Double Function          •    Non-Permanent Member of the Asset Liabilities Committee (ALCO) Bank Jatim
                         •    Permanent Member of the Information Technology Steering Committee (ITSC) Bank Jatim
                         •    Permanent Members of Bank Jatim Risk Management Committee
                         •    Members of Bank Jatim Personnel Management Committee
                         •    Non -permanent Members of Bank Jatim Credit Policy Committee
                         •    Permanent Members of the Bank Jatim Product Committee

Bank Jatim Share         1.067.400 shares
Ownership




                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                2023 Annual Report        101
Page 104
Edi Masrianto
Director of Finance, Treasury & Global Services



           Citizenship                  :   Indonesian citizens

           Place and                        Born in Lumajang in 1964,
                                        :
           Date of Birth/Age                59 years old as of December 2023

           Domicile                     :   Surabaya




Educational                   • Bachelor of Management Economics from Jember University (1989).
Background                    • Master in Agribusiness Management from Gadjah Mada University (2004).

 Certification                •   Advance Methods for Managing Interest Rate & Liquidity Risk oleh Euromoney Training (2004).
                              •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2006).
                              •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2009).
                              •   Level 3 Risk Management Certification by the Banking Professional Certification Institute (2013).
                              •   Risk Management Assessor Certification by BARA (2014).
                              •   Funding Basic Certification by SPPI (2015).
                              •   Treasury Advance Certification by the Banking Professional Certification Institute (2017).
                              •   Level 4 Risk Management Certification by the Banking Professional Certification Institute (2020).
                              •   Level 5 Risk Management Certification by Garp (Global Association of Risk Professionals) Jakarta (2021 ).
                              •   Treasury Dealer Certification by BNSP (2022).
                              •   Risk Management Certification Refreshment Program by Strategic Risk Management for Banking (SDG) (2023).

 Work Experience              • Head of Trade Finance Product Development & Marketing - International Division PT Bank Rakyat Indonesia (Persero)
                                Tbk (2008-2010).
                              • Head of Treasury Division (Chief Global Market) PT Bank Rakyat Indonesia (Persero) Tbk (2010-2012).
                              • Deputy Head of Treasury Division PT Bank Rakyat Indonesia (Persero) Tbk (2013-2014).
                              • Head of International Business Division PT Bank Rakyat Indonesia (Persero) Tbk (2014-2015).
                              • Head of Treasury Business Division PT Bank Rakyat Indonesia (Persero) Tbk (2015-2018).
                              • Chairman of the Workers Welfare Foundation PT Bank Rakyat Indonesia (Persero) Tbk (2018-2020).
                              • Director of Finance and HR of PT Garam Persero (2020-2021).
                              • Director of Finance, HR & Risk Management of PT Garam Persero (2021-2022).
                              • Acting President Director of PT Garam Persero (2021-2022).
                              • Commercial and Corporate Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2022).
                              • Director of Finance, Treasury & Global Services PT Bank Rakyat Indonesia (Persero) Tbk (2022 – Present).

 Legal Basis of               Appointed as Commercial and Corporate Director for the first time at the General Meeting of Shareholders (GMS) on March
 Appointment                  17, 2022, Passed the Fit and Proper Test by the Financial Services Authority as Commercial and Corporate Director based on a
                              copy of the Decree of Members of the Service Authority’s Board of Commissioners Finance (OJK) No. KEP-4/D.03/2022 Dated
                              January 19, 2022. Based on Deed no. 23 dated December 7, 2022 concerning the Minutes of the 2022 Extraordinary General
                              Meeting of Shareholders (GMS), there was a change in the nomenclature of the Directors’ positions from Commercial and
                              Corporate Director to Finance, Treasury & Global Services Director.

 Period of Office             2022 – Until the closing of the Annual GMS for Fiscal Year 2026 (First Period).

 Double Function              •   Alternate Chair of the Bank Jatim ALCO Committee
                              •   Permanent Member of the Bank Jatim Risk Management Committee
                              •   Member of the Bank Jatim Personnel Management Committee
                              •   Permanent Member of the Bank Jatim IT Committee
                              •   Bank Jatim Credit Committee Business Function Group
                              •   Permanent Member of the Bank Jatim Credit Policy Committee
                              •   Permanent Member of the Bank Jatim Product Committee

 Bank Jatim Share             327.600 shares
 Ownership




         PT Bank Pembangunan Daerah Jawa Timur Tbk
102      2023 Annual Report
Page 105
                                                                                                                                            COMPANY
                                                                                                                                             PROFILE




R. Arief Wicaksono
Director of Micro, Retail & Medium



           Citizenship                :   Indonesian citizens

           Place and                      Born in Banyuwangi in 1970,
                                      :
           Date of Birth/Age              53 years old as of December 2023.

           Domicile                   :   Surabaya




Educational                  • Bachelor of Electrical Engineering from the 10 November Institute of Technology (ITS) Surabaya (1996).
Background                   • Master of Management from Dr Sutomo University (Unitomo) Surabaya (2020).

Certification                •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2010).
                             •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2010).
                             •   Level 3 Risk Management Certification by the Risk Management Certification Agency (2012).
                             •   Level 4 Risk Management Certification by the Risk Management Certification Agency (2017).
                             •   Level 5 Risk Management Certification by the Risk Management Certification Agency (2021).
                             •   Treasury Dealer Competency Certification (Basic) by Association Cambiste International ACI FMA (2018)
                             •   Treasury Dealer Competency Certification (Intermediate) by Association Cambiste International ACI FMA (2018)
                             •   Treasury Dealer Competency Certification (Advance) by Association Cambiste International ACI FMA (2018)

Work Experience              •   Head of Bank Jatim Bondowoso Branch (2015 - 2017).
                             •   Head of Bank Jatim Banyuwangi Branch (2017 - 2018).
                             •   Head of Bank Jatim Treasury Division (2018 - 2018).
                             •   Head of Bank Jatim Information Technology Division (2018 - 2021).
                             •   Head of Bank Jatim Sharia Business Division (2021 - 2022).
                             •   Director of Consumer, Retail and Sharia Business at PT Bank Pembangunan Daerah Jawa Timur Tbk (2022).
                             •   Director of Micro, Retail and Medium Enterprises PT Bank Pembangunan Daerah Jawa Timur Tbk (2022 - present)

Legal Basis of               Appointed as Director of Consumer, Retail and Sharia Business for the first time at the General Meeting of Shareholders (GMS)
Appointment                  on March 17, 2022, Passed the Fit and Proper Test by the Financial Services Authority as Director of Consumer, Retail and
                             Sharia Business based on a copy Decree of Members of the Board of Commissioners of the Financial Services Authority No.
                             KEP-3/D.03/2022 Dated January 19, 2022. Based on Deed no. 23 dated December 7, 2022 concerning Minutes of the 2022
                             Extraordinary General Meeting of Shareholders (GMS) of PT Bank Pembangunan Daerah Jawa Timur Tbk, there was a change in
                             the nomenclature of the Directors’ positions from Director of Consumer, Retail, and Sharia Business to Director of Micro, Retail,
                             and Medium.

Period of Office             2022 – Until the closing of the Annual GMS for Fiscal Year 2026 (First Period)

Double Function              •   Permanent Member of the ALCO Bank Jatim Committee
                             •   Permanent Member of the Bank Jatim Risk Management Committee
                             •   Member of the Bank Jatim Personnel Management Committee
                             •   Permanent Member of the Bank Jatim IT Committee
                             •   Bank Jatim Credit Committee Business Function Group
                             •   Alternate Chair of the Bank Jatim Credit Policy Committee
                             •   Permanent Member of the Bank Jatim Product Committee

Bank Jatim Share             728.200 lembar shares
Ownership




                                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                       2023 Annual Report               103
Page 106
Eko Susetyono
Director of Risk Management



          Citizenship                  :   Indonesian citizens

          Place and                        Born in Jakarta in 1965,
                                       :
          Date of Birth/Age                58 years old as of December 2023.

          Domicile                     :   Surabaya




Educational                   • Bachelor in Food Technology and Nutrition from the Bogor Agricultural Institute (1985).
Background                    • Master in Corporate Finance and Investment from Washington University (2000).
                              • Doctor of Management and Business, Institut Pertanian Bogor (2019 - present)

Certification                 •   Level II (Two) Risk Management Certification (2006).
                              •   Level 3 Banking Risk Management Certification (2012).
                              •   Risk Management Certification: Icaap Program (2012).
                              •   Level 4 Banking Risk Management Certification (2014).
                              •   Certified in Enterprise Risk Governance (CERG), ERMA Professional Provisions Program (2016).
                              •   Intl CWM Program : In-house BRI Batch 1 (2019).
                              •   Level 5 Banking Risk Management Certification (2022).
                              •   Risk Management Certification Refreshment (BSMR Level 5) by Strategic Development Group (2023).

Work Experience               •   AVP Project Office Base II - Credit Risk, PT Bank Rakyat Indonesia (Persero) Tbk (2006–2009).
                              •   AVP Operasional Risk Management Dept, PT Bank Rakyat Indonesia (Persero) Tbk (2010–2012).
                              •   AVP Market, Liqiudity and Enterprise Risks PT Bank Rakyat Indonesia (Persero) Tbk (2012–2017).
                              •   VP Operational, Market and Liquidity Risk Management PT Bank Rakyat Indonesia (Persero) Tbk (2017–2019).
                              •   SEVP Risk Management Directorate PT Pegadaian (Persero) (2019–2022).
                              •   Director of Risk Management PT Bank Pembangunan Daerah Jawa Timur Tbk (2022–Present)

Legal Basis of                Appointed as Director of Risk Management for the first time at the Extraordinary General Meeting of Shareholders (EGMS) on 7
Appointment                   December 2022, Passed the Fit and Proper Test and was declared effective by the Financial Services Authority (OJK) as Director
                              of Risk Management based on a copy of the decision of the members of the Board of Commissioners of the Services Authority
                              Finance (OJK) No. KEP-184/D.03/2022 November 30, 2022.

Period of Office              2022 – Until the closing of the Annual GMS for Fiscal Year 2026 (First Period)

Double Function               •   Permanent Member of the Bank Jatim ALCO Committee
                              •   Alternate Chair of the Bank Jatim Risk Management Committee
                              •   Member of the Bank Jatim Personnel Management Committee
                              •   Permanent Member of the Bank Jatim IT Committee
                              •   Bank Jatim Credit Committee Risk Function Group
                              •   Non-Permanent Member of the Bank Jatim Credit Policy Committee
                              •   Permanent Member of the Bank Jatim Product Committee

Bank Jatim Share              124.100 shares
Ownership




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Zulhelfi Abidin
Director of IT and Digital



           Citizenship                 :   Indonesian citizens

           Place and                       Born in Bukittinggi in 1962,
                                       :
           Date of Birth/Age               61 years old as of December 2023.

           Domicile                    :   Surabaya




 Educational                 • Bachelor of Informatics Engineering from the Bandung Institute of Technology (1987).
 Background                  • Master in Computer Science from University of Wollongong Australia (1996)

 Certification               •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2006).
                             •   Executive Overview of Islamic Banking oleh LPPI (2011).
                             •   Banking Risk Management Certification 4th level by LSPP (2012).
                             •   Banking Risk Management Certification 5th level by LSPP (2015).
                             •   Swift International Banking Operation Seminar by Swift International Banking Operation Seminar (2016).
                             •   Executive Leadership Program by Kementrian BUMN (2017).
                             •   Executive Education C-Level Data Analytic - Kellog School Of Management (2019).
                             •   Risk Management Certification Refreshment Program by Strategic Development Group (2023).

 Work Experience             • Assistant Lecturer and Researcher at the Computer Assisted Instruction Laboratory at the University of Indonesia Science
                               Center (1987–1990).
                             • Head of IT Development Division at PT Bank Bukopin (1990–1992).
                             • System Analyst of the Indonesian Development Bank (1992–1997).
                             • Head of Information Technology and Information Systems Division of PT. Bank Bukopin (1997–2007).
                             • President Commissioner of PT Bringin Gigantara (2006 –2012).
                             • Head of Information Technology and Information Systems Division of PT Bank Rakyat Indonesia (2007 – 2014).
                             • Commissioner of BRI Syariah (2012–2015).
                             • Senior Executive Vice President of PT Bank Rakyat Indonesia (2014–2015).
                             • Director of IT & Operation of PT Bank Rakyat Indonesia (2015–2017).
                             • Director of Network & IT Solution of PT Telkom Indonesia (2017–2020).
                             • President Commissioner of PT Sigma Cipta Caraka (2018 –2019).
                             • President Commissioner of PT Infrastructure Telekomunikasi Indonesia (2019 –2020).
                             • Senior IT System Advisor PT R17 (2021–2022).
                             • President Commissioner of PT Digital Prima Sejahtera (2022).
                             • IT & Digital Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2022–Present).
                             • Acting Director of Operations at PT Bank Pembangunan Daerah Jawa Timur Tbk (2022-2023).

 Legal Basis of              Appointed as Director of IT & Digital for the first time at the Extraordinary General Meeting of Shareholders of PT Bank
 Appointment                 Pembangunan Daerah Jawa Timur Tbk on December 7, 2022. Passed the Fit and Proper Test by the Financial Services Authority
                             on November 30, 2022. Based on Decree of the Board of Commissioners Number 061 /10/DKM/KEP dated December 13, 2022
                             and Board of Commissioners Decree No. 062/02/DKM/KEP dated April 12, 2023, concerning the Appointment of Temporary
                             Replacements and Distribution of Duties of the Directors of PT Bank Pembangunan Daerah Jawa Timur Tbk, he was appointed
                             as temporary replacement for the Operations Director.

 Period of Office            2022 – Until the closing of the Annual GMS for Fiscal Year 2026 (First Period).

 Double Function             •   Permanent member of the Bank Jatim ALCO Committee
                             •   Permanent member of the Bank Jatim Risk Management Committee
                             •   Member of the Bank Jatim Personnel Management Committee
                             •   Alternate Chair of the Bank Jatim IT Committee
                             •   Bank Jatim Credit Committee Risk Function Group
                             •   Permanent Member of the Bank Jatim Credit Policy Committee
                             •   Alternate Chair of the Bank Jatim Product Committee

 Bank Jatim Share            24.200 shares
 Ownership




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                                                                                                                     2023 Annual Report          105
Page 108
Arif Suhirman
Director of Operations



           Citizenship               :   Indonesian citizens

           Place and                     Born in Kediri in 1966,
                                     :
           Date of Birth/Age             57 years old as of December 2023

           Domicile                  :   Surabaya




Educational               • Bachelor of Accounting from Brawijaya University, Malang (1991).
Background                • Master of Management and Business from Bogor Agricultural Institute (2007).

Certification             • Qualified Internal Audit (2000)
                          • Certified Wealth Manager oleh Certified Wealth Managers Association (2015).
                          • Qualified Risk Governance Professional (QRGP) by the Professional Certification Institute - Mitra Kalyana Sejahtera (LSP
                            MKS) (2020).

Work Experience           •    Head of Rantau Branch, Banjarmasin Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2007-2009).
                          •    Head of Bandung Setiabudi Branch, Bandung Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2009-2010).
                          •    Head of Jakarta Cempaka Mas Branch, Jakarta Regional Office 1 of PT Bank Rakyat Indonesia (Persero) Tbk (2010-2011).
                          •    Head of Krekot Branch for Jakarta Region of PT Bank Rakyat Indonesia (Persero) Tbk (2011-2012).
                          •    Head of Bandung Asia Africa Branch of PT Bank Rakyat Indonesia (Persero) Tbk (2012-2013).
                          •    Head of Jakarta Veteran Branch of PT Bank Rakyat Indonesia (Persero) Tbk (2013-2014).
                          •    Deputy Regional Head for Funds and Operations for Jakarta Regional Office 1 of PT Bank Rakyat Indonesia (Persero) Tbk
                               (2015-2016).
                          •    Deputy Regional Leader for Business Sector for Jakarta Regional Office 1 of PT Bank Rakyat Indonesia (Persero) Tbk
                               (2016-2017).
                          •    Acting Head of Social Entrepreneurship Division at PT Bank Rakyat Indonesia (Persero) Tbk (2017-2018).
                          •    Acting Head of Institution Division 1 at PT Bank Rakyat Indonesia (Persero) Tbk (2018-2019).
                          •    Head of Special Branch, Special Branch Office of PT Bank Rakyat Indonesia (Persero) Tbk (2019-2020).
                          •    Business Director of PT BRI Asuransi Indonesia (2020-2021).
                          •    Head of Internal Audit at Jayapura Regional Office of PT Bank Rakyat Indonesia (Persero) Tbk (2021-2022).
                          •    Operations Director of PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of            Appointed as Director of Operations for the first time at the 2022 Annual GMS on April 12, 2023, and was declared effective
Appointment               since passing the fit and proper test by the Financial Services Authority as stated in the Decree of Members of the Board of
                          Commissioners of the Financial Services Authority Number KEPR-132/D.03/2023 dated October 11, 2023.

Period of Office          2023 – Until the closing of the Annual GMS for Fiscal Year 2027 (First Period).

Double Function           •    Permanent member of the Bank Jatim ALCO Committee
                          •    Permanent member of the Bank Jatim Risk Management Committee
                          •    Member of the Bank Jatim Personnel Management Committee
                          •    Permanent Member of the Bank Jatim IT Committee
                          •    Bank Jatim Credit Committee Risk Function Group
                          •    Permanent Member of the Bank Jatim Credit Policy Committee
                          •    Alternate Chair of the Bank Jatim Product Committee
                          •    Chairman I of the Bank Jatim Network Committee

Bank Jatim Share          Did not have shares in Bank Jatim
Ownership




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Affiliate Relations of Members of The Board Of Directors

Table of Directors Affiliation Relations

                                           Financial Relations, Family and Board of Directors Management

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

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

 Busrul Iman        President Director                √             √               √                √               √             √              √

 Tonny Prasetyo     Director of                       √             √               √                √               √             √              √
                    Compliance

 Edi Masrianto      Director of Finance,              √             √               √                √               √             √              √
                    Treasury and Global
                    Services

 R. Arief           Director of Micro,                √             √               √                √               √             √              √
 Wicaksono          Retail and Medium

 Eko Susetyono      Director of Risk                  √             √               √                √               √             √              √
                    Management

 Zulhelfi Abidin    Director of IT and                √             √               √                √               √             √              √
                    Digital

 Arif Suhirman      Director of                       √             √               √                √               √             √              √
                    Operations




Education and/or Training of The Board of Directors

The description of the education and/or training of the board of Directors Fiscal Year is presented in the Chapter of Corporate
Governance.



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

During 2023, there was a change in the composition of the members of the Board of Directors. Changes in the composition of
members of the Board of Directors were made based on the needs of the Bank. Changes in the composition of the members of the
Board of Directors are as follows:


Composition of The Board of Directors Before The Annual GMS for Financial Year 2022

The composition of the Board of Directors of Bank Jatim prior to the 2022 Annual GMS was 6 (six) people consisting of 1 (one) Main
Director and 5 (five) Directors. All Directors were domiciled in East Java Province. The composition and basis for the appointment of the
Board of Directors can be seen in the table below:


Table of Composition and Basis for Appointment of the Board of Directors before the 2023 Annual GMS

       Name                            Position                Executor                 Basis of Appointment                     Effective date

 Busrul Iman            President Director                         OJK          Extraordinary GMS on July 23, 2020             July 23, 2020

 Tonny Prasetyo*)                                                  OJK          Extraordinary GMS on June 19, 2019 and         October 11, 2019
                        Director of Operation                                   changes in nomenclature based on the
                                                                                Extraordinary GMS on December 7, 2022




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report             107
Page 110
         Name                              Position                        Executor                     Basis of Appointment                           Effective date

 Edi Masrianto                                                                 OJK            Annual GMS March 17, 2022 and changes                 January 19, 2022
                           Director of Finance, Treasury and
                                                                                              in nomenclature based on the Extraordinary
                           Global Services
                                                                                              GMS on December 7, 2022

 R. Arief Wicaksono                                                            OJK            Annual GMS March 17, 2022 and changes                 January 19, 2022
                           Director of Micro, Retail and
                                                                                              in nomenclature based on the Extraordinary
                           Medium
                                                                                              GMS on December 7, 2022

 Zulhelfi Abidin**)        Director of IT and Digital                          OJK            Extraordinary GMS on December 7, 2022                 November 30, 2022

 Eko Susetyono             Director of Risk Management                         OJK            Extraordinary GMS on December 7, 2022                 November 30, 2022

*) appointed as a temporary substitute for the Director of Compliance, so that the position of Operations Director was temporarily released to fulfill the independence aspect.
**) appointed to double as the Director of Operations. This is in accordance with the Decree of the Board of Commissioners No.061/10/DKM/KEP on December 13, 2022.




Composition of The Board of Directors After The Annual GMS for Financial Year 2022

On April 12, 2023, the 2022 Annual GMS approved and appointed Tonny Prasetyo as Compliance Director and Arif Suhirman as
Operations Director. So, the composition of the Board of Directors of Bank Jatim after the Annual GMS for the 2023 Fiscal Year was
7 (seven) people consisting of 1 (one) President Director and 6 (six) Directors. All Directors were domiciled in East Java Province. The
composition and the basis of appointment of the Board of Directors can be seen in the table below:


Table of Composition and Basis for Appointment of Directors After the Extraordinary GMS in 2022

         Name                               Position                        Executor                    Basis of Appointment                           Effective date

 Busrul Iman                President Director                                  OJK           Extraordinary GMS on July 23, 2020                     July 23, 2020

 Tonny Prasetyo             Director of Compliance                              OJK           Annual GMS on April 12, 2023                           May 26, 2023

 Edi Masrianto                                                                  OJK           Annual GMS March 17, 2022 and changes                  January 19, 2022
                            Director of Finance, Treasury and
                                                                                              in nomenclature based on the Extraordinary
                            Global Services
                                                                                              GMS on December 7, 2022

 R. Arief Wicaksono                                                             OJK           Annual GMS March 17, 2022 and changes                  January 19, 2022
                            Director of Micro, Retail and
                                                                                              in nomenclature based on the Extraordinary
                            Medium
                                                                                              GMS on December 7, 2022

 Zulhelfi Abidin            Director of IT and Digital                          OJK           Extraordinary GMS on December 7, 2022                  November 30, 2022

 Eko Susetyono              Director of Risk Management                         OJK           Extraordinary GMS on December 7, 2022                  November 2022

 Arif Suhirman              Director of Operational                             OJK           Annual GMS on April 12, 2023                           October 11, 2023




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Profile
of The Board of Commissioners


Suprajarto*
President Commissioner



           Citizenship                   :   Indonesian citizens

           Place and                         Born in Yogyakarta in 1956,
                                         :
           Date of Birth/Age                 67 years old as of December 2023.

           Domicile                      :   Jakarta




 Educational                   • Bachelor of Economics from the National Development University “Veteran” Yogyakarta (1982).
 Background                    • Master in Marketing Management from Padjadjaran University (2001).
                               • Doctorate in Business Management from Padjadjaran University (2014)

 Certification                 Risk management certification refreshment program (2022)

 Work Experience               •   Branch Manager of Bank Rakyat Indonesia (1999-2001).
                               •   Vice Regional of Manager PT Bank Rakyat Indonesia (Persero) Tbk (2001-2005).
                               •   Corporate Secretary of PT Bank Rakyat Indonesia (Persero) Tbk (2005-2006).
                               •   Regional Manager of PT Bank Rakyat Indonesia (Persero) Tbk (2006-2007).
                               •   Network and Servce Director of PT Bank Rakyat Indonesia (Persero) Tbk (2007-2015).
                               •   Vice President Director of PT Bank Negara Indonesia (Persero) Tbk (2015-2017).
                               •   President Director of PT Bank Rakyat Indonesia (Persero) Tbk (2017-2019).
                               •   President Commissioner of PT Bank Pembangunan Daerah Jawa Timur Tbk (2022-2023)

 Legal Basis of                Appointed as President Commissioner for the first time at the annual General Meeting of Shareholders (GMS) of PT Bank
 Appointment                   Pembangunan Daerah Jawa Timur Tbk. financial year 2021 March 17, 2022. Passed the Fit and Proper Test and was declared
                               effective by the Financial Services Authority as President Commissioner based on a copy of the Decision of Members of the
                               Board of Commissioners of the Financial Services Authority (OJK) Number KEP-5/D.03/2022 dated January 19, 2022.

 Period of Office              2022 – December 19, 2023 (First Period).

 Double Function               Member of the Remuneration & Nomination Committee (2022 – December 19, 2023).

 Bank Jatim Share              191.000 shares
 Ownership

* Mr. Suprajarto (President Commissioner) stopped serving as President Commissioner on December 19, 2023 (died). Currently, the duties and responsibilities of the President
  Commissioner are carried out by members of the Board of Commissioners.




                                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                               2023 Annual Report                   109
Page 112
Candra Fajri Ananda
Independent Commissioner



         Citizenship                :   Indonesian citizens

         Place and                      Born in Lumajang in 1964,
                                    :
         Date of Birth/Age              59 years old as of December 2023.

         Domicile                   :   Batu, Malang




Educational                • Bachelor’s degree in Economics from Brawijaya University (1988).
Background                 • Master (MSc.) Institute of Rural Development dari University of Gottingen, Jerman (1994).
                           • Doctor (Ph.D) Institute of Rural Development dari University of Göttingen, Jerman (1998).

Certification              • Strengthening Preparedness for the Fit and Proper Test for Independent Commissioner candidates held by Sustainable
                             Development Goals (2018).
                           • Board of Commissioners Level 2 Risk Management Certification held by the Risk Management Certification Agency on
                             (2018).
                           • Risk management certification refreshment program (2022).

Work Experience            • Public Sector Development Consultant in Post-Conflict Areas, World Bank (2003-2004).
                           • Regional Planning Advisory Council, East Java Province (2003-2012).
                           • Member of TADF (Ministry of Finance’s Fiscal Decentralization Assistance Team), Ministry of Finance (2008-2014).
                           • Chairman of the Association of Indonesian Economic Bachelors in Malang (2010-present).
                           • Dean of the Faculty of Economics and Business Universitas Brawijaya (2013–2017).
                           • Lecturer of Master’s Degree KPS, Master’s Degree KPS Faculty of Economics and Business Universitas Brawijaya (1989 -
                             present).
                           • Independent Commissioner of PT Bank Pembangunan Daerah Jawa Timur Tbk (2018-present).
                           • Special Staff to the Minister of Finance of the Republic of Indonesia (2019-present)

Legal Basis of             Appointed as Independent Commissioner for the first time at the Annual General Meeting of Shareholders (GMS) of PT Bank
Appointment                Pembangunan Daerah Jawa Timur Tbk. The fiscal Year 2017 was on February 20, 2018. Passed the Fit and Proper Test and was
                           declared effective by the Financial Services Authority (OJK) as Independent Commissioner based on the Copy of Decision of the
                           Board of Commissioners of the Financial Services Authority (OJK) No. KEP-153/D.03/2018 dated September 18, 2018, until the
                           closing of the 2020 annual GMS, which will be held in 2021. Appointed for the second time at the Annual General Meeting of
                           Shareholders (GMS) for the Fiscal Year 2020, which will be held on May 3, 2021 (Second Period).

Period of Office           • 2018 – Until the closing of the 2020 Fiscal Year Annual GMS (First Period).
                           • 2021 – Until the closing of the Annual GMS for Fiscal Year 2024 (Second Period).

Double Function            • Lecturer of Master’s Degree KPS, Master’s Degree KPS Faculty of Economics and Business Universitas Brawijaya (1989 -
                             present).
                           • Special Staff to the Minister of Finance of the Republic of Indonesia (2019- present).
                           • Chairman of the Risk Monitoring Committee (2022 – closing of the 2023 annual GMS)
                           • Member of the Audit Committee (2022 – closing of the 2023 annual GMS)
                           • Member of the Remuneration and Nomination Committee (2022 - closing of the 2023 annual GMS).

Bank Jatim Share           Do not have shares in Bank Jatim
Ownership




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Muhammad Mas’ud
Independent Commissioner



         Citizenship                 :   Indonesian citizens

         Place and                       Born in Sidoarjo in 1964,
                                     :
         Date of Birth/Age               59 years old as of December 2023.

         Domicile                    :   Malang




Educational                • Bachelor’s degree in State Administration from Brawijaya University, Malang (1989).
Background                 • Master in Management from Muhammadiyah University, Malang (1997).
                           • Doctor of International Politics from Flinders University, Adelaide Australia (2005)

Certification              •   Exam Level - 1 Risk Management Certification Program (2019).
                           •   Level 1 Risk Management Certification Training (2019).
                           •   Risk Management Certification Training Level – 2 (2019).
                           •   Exam Level - 2 Risk Management Certification Program (2019).
                           •   Risk management certification refreshment program (2022).

Work Experience            •   Assistant to the Presidential Special Staff for Regional Development and Regional Autonomy (2011–2014).
                           •   Chairman of the Malang City Regional Research Council (2013-2016).
                           •   Member of the Batu Mayor’s Expert Team (2015-2016).
                           •   Special Staff of the Minister of Social Affairs for Human Resources Development and Ministry Programs (2015–2018).
                           •   Member of the Kediri Regency Development Acceleration and Control Team (2016-present).
                           •   Chairman of the Regional Research Council Kab. Bojonegoro (2019 - present)
                           •   Postgraduate Director of the Islamic University of Malang (2018-present).
                           •   Independent Commissioner of PT Bank Pembangunan Daerah Jawa Timur Tbk (2019-2022)

Legal Basis of             Appointed as Independent Commissioner for the first time at the Extraordinary General Meeting of Shareholders (EGMS)
Appointment                of PT Bank Pembangunan Daerah Jawa Timur Tbk. on June 19, 2019, Passed the Fit and Proper Test and was declared
                           effective by the Financial Services Authority (OJK) as an Independent Commissioner based on a Copy of Decision of the
                           Board of Commissioners of the Financial Services Authority (OJK) No. KEP–187/D.03/2019 October 11, 2019, until the
                           closing of the 2022 annual GMS, held in 2023.

Period of Office           • 2019 – Until the closing of the Annual GMS for Financial Year 2022 (First Period).
                           • 2023 – Until the closing of the annual GMS for the 2026 financial year (Second Period).

Double Function            •   Lecturer in Kopertis Wil VII, DPK Islamic University of Malang (2018 - present).
                           •   Postgraduate Director of the Islamic University of Malang (2018-present).
                           •   Chairman of the Remuneration and Nomination Committee (2022 – closing of the 2023 annual GMS).
                           •   Member of the Risk Monitoring Committee (2022 – closing of the 2023 annual GMS).
                           •   Member of the Audit Committee (2022 – closing of the 2023 annual GMS)

Bank Jatim Share           Do not have shares in Bank Jatim
Ownership




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report           111
Page 114
Sumaryono
Independent Commissioner



         Citizenship                :   Indonesian citizens

         Place and                      Born in Blitar in 1960,
                                    :
         Date of Birth/Age              63 years old as of December 2023.

         Domicile                   :   Surabaya




Educational                • Bachelor of Business Administration from Brawijaya University (1979)
Background

Certification              • Risk management certification refreshment program (2022)

Work Experience            •   Head of BRI Gunungsitoli Branch (2005-2007).
                           •   Head of BRI Kelapa Gading Branch (2007-2009).
                           •   Head of BRI Jakarta City Branch (2009-2012).
                           •   BRI Branch Manager Jakarta Veteran (2012-2013).
                           •   Deputy Regional Head of BRI Regional Office Jakarta 1 (2013-2016).
                           •   Regional Head of BRI Pekanbaru Regional Office (2016).
                           •   President Director of PT BSM Broker Asuransi (2018-2019).
                           •   Independent Commissioner of PT Regional Development Bank East Java Tbk (2022-present).

Legal Basis of             Appointed as Independent Commissioner for the first time at the annual General Meeting of Shareholders (GMS) of PT Bank
Appointment                Pembangunan Daerah Jawa Timur Tbk. financial year 2021 March 17, 2022. Passed the Fit and Proper Test and was declared
                           effective by the Financial Services Authority as President Commissioner based on a copy of the Decree of Members of the Board
                           of Commissioners of the Financial Services Authority (OJK) Number KEP-6/D.03/2022 dated January 19, 2022.

Period of Office           2022 – Until the closing of the Annual GMS for Financial Year 2025 (First Period).

Double Function            • Chairman of the Audit Committee (2022 – closing of the annual GMS in 2023)
                           • Member of the Risk Monitoring Committee (2022 – closing of the 2023 annual GMS)
                           • Member of the Audit Committee (2022 – closing of the annual GMS in 2023)

Bank Jatim Share           Do not have shares in Bank Jatim
Ownership




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Adhy Karyono
Commissioner



         Citizenship             :   Indonesian citizens

         Place and                   Born in Cirebon in 1971,
                                 :
         Date of Birth/Age           52 years old as of December 2023.

         Domicile                :   Surabaya




Educational             • Bachelor of Politics from Garut College of Social and Political Sciences (1996).
Background              • Master of Public Administration from National Institute of Public Administration (LAN), Jakarta (2012).

Certification           Risk Management Program for Prospective Commissioners, LPPI (2023).

Work Experience         • Head of Monitoring and Evaluation Section at the Sub-Directorate for Preparedness and Mitigation of the BSKBA
                          Directorate, Directorate General of Social Protection and Security, Ministry of Social Affairs of the Republic of Indonesia
                          (2006-2007)
                        • Head of the Standardization and Technical Guidance Section at the Sub-Directorate of Preparedness and Mitigation of
                          the BSKBA Directorate, Directorate General of Social Protection and Security, Ministry of Social Affairs of the Republic
                          of Indonesia (2007-2008)
                        • Head of the Standardization and Technical Guidance Section at the Emergency Response Sub-Directorate of the BSKBA
                          Directorate, Directorate General of Social Protection and Security, Ministry of Social Affairs of the Republic of Indonesia
                          (2008-2009).
                        • Head of Sub-Directorate for Preparedness and Mitigation of the BSKBA Directorate, Directorate General of Social
                          Protection and Security, Ministry of Social Affairs of the Republic of Indonesia (2009-2010).
                        • Head of Program and Information Division of the Secretariat of the Directorate General of Social Protection and Security,
                          Ministry of Social Affairs of the Republic of Indonesia (2010-2011).
                        • Head of Program and Reporting Division of the Secretariat of the Directorate General of Social Protection and Security,
                          Ministry of Social Affairs of the Republic of Indonesia (2011-2016).
                        • Director of Social Protection for Natural Disaster Victims (PSKBA) Directorate General of Social Protection and Security,
                          Ministry of Social Affairs of the Republic of Indonesia (2016-2017).
                        • Head of Planning Bureau of the Secretariat General, Ministry of Social Affairs of the Republic of Indonesia (2017-2020)
                        • Expert Staff of the Minister for Change and Social Dynamics of the Republic of Indonesia (2020-2022).
                        • Regional Secretary, East Java Provincial Government (2022-present).
                        • Commissioner of PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of          Appointed as Commissioner for the first time at the Annual General Meeting of Shareholders for Fiscal Year 2022 on April 12,
Appointment             2023, and was declared effective after passing the fit and proper test by the Financial Services Authority as Commissioner based
                        on Decision of Members of the Board of Commissioners of the Financial Services Authority Number KEPR-151/D. 03/2023 dated
                        November 24, 2023.

Period of Office        2023 – Until the closing of the annual GMS for the 2026 financial year (First Period).

Double Function         • Regional Secretary, East Java Provincial Government (2022-present).
                        • Member of the Remuneration & Nomination Committee (2023 – closing of the annual GMS in 2024).

Bank Jatim Share        Do not have shares in Bank Jatim
Ownership




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                                                                                                                 2023 Annual Report               113
Page 116
Heru Tjahjono*
Commissioner



           Citizenship                  :   Indonesian citizens

           Place and                        Born in Yogyakarta in 1961,
                                        :
           Date of Birth/Age                62 years old as of December 2023.

           Domicile                     :   Malang




 Educational                  • Bachelor of Engineering from Sebelas Maret University, Surakarta (1988).
 Background                   • Master in Management from Merdeka University, Malang (1999).
                              • Doctor of Environment and Development from Brawijaya University, Malang (2014).

 Certification                •   Level 1 Risk Management Certification Training (2019).
                              •   Exam Level - 1 Risk Management Certification Program (2019).
                              •   Exam Level - 2 Risk management Certification Program (2019).
                              •   Risk Management Certification Training Level – 2 (2019).

 Work Experience              •   Acting Head of Physical and Infrastructure Division of Bappeda Tulungagung Regency (1997).
                              •   Acting Head of the Tulungagung District DPUD (1997–2001).
                              •   Acting Head of the PPW Public Works Sub-Department of Tulungagung Regency (2001–2003).
                              •   Regent of Tulungagung Regency (2003-2013).
                              •   Staff of the Governor of East Java Province (2013–2014).
                              •   Head of the Department of Fisheries and Marine Affairs of East Java Province (2014-2016).
                              •   Head of the Department of Marine Affairs and Fisheries of East Java Province (2016–2018).
                              •   Regional Secretary of East Java Province (2018-2021).
                              •   Commissioner of PT Bank Pembangunan Daerah Jawa Timur Tbk (2019-2023)

 Legal Basis of               Appointed as Commissioner for the first time at the Extraordinary General Meeting of Shareholders (EGMS) of PT Bank
 Appointment                  Pembangunan Daerah Jawa Timur Tbk. on June 19, 2019, Passed the Fit and Proper Test and was declared effective by the
                              Financial Services Authority (OJK) as Commissioner based on a Copy of Decision of the Board of Commissioners of the Financial
                              Services Authority (OJK) No. KEP–186/D.03/2019 October 11, 2019, until the closing of the 2022 Annual GMS, held in 2023.

 Period of Office             2019 – Until the closing of the Annual GMS for Financial Year 2022 (First Period)

 Double Function              Member of the Remuneration & Nomination Committee (2022 – April 12, 2023)

 Bank Jatim Share             400.600 shares
 Ownership


* Mr. Heru Tjahjono (Commissioner) stopped serving as Commissioner since April 12, 2023 (dismissed at the 2022 Annual GMS).




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Affiliate Relations of Members of The Board of Commissioners

Table of Affiliation of the Board of Commissioners

                                               Financial Relations, Family and Board of Commissioners

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

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

 Suprajarto*           President                      √             √            √                √           √              √                √
                       Commissioner

 Adhy Karyono          Commissioner                   √             √            √                √           √              √                √

 Candra Fajri          Independent                    √             √            √                √           √              √                √
 Ananda                Commissioner

 Muhammad              Independent                    √             √            √                √           √              √                √
 Mas’ud                Commissioner

 Sumaryono             Independent                    √             √            √                √           √              √                √
                       Commissioner

* Stopped serving since December 19, 2023




Education and/or Training of The Board of Commissioners

A description of the education and/or training of the Board of Commissioners Fiscal Year is presented in the Corporate Governance
Chapter.



Changes in the Composition of The Board of Commissioners
and The Reasons for The Changes

During 2023, there was a change in the composition of the members of the Board of Commissioners. Changes in the composition
of the members of the Board of Commissioners were made based on the needs of the Bank. Changes in the composition of the
members of the Board of Commissioners are as follows:



Composition of The Board of Commissioners Before The Annual GMS for The Fiscal Year 2022

The composition of the Board of Commissioners prior to the 2022 Annual GMS was 5 (five) people consisting of 1 (one) President
Commissioners, 3 (three) Independent Commissioner and 1 (one) Commissioner. The entire Board of Commissioners was domiciled
in East Java Province. The composition and basis for the appointment of the Board of Commissioners can be seen in the table below.


Table of Composition and Basis of Appointment of the Board of Commissioners Before the Annual GMS for Fiscal Year 2022

        Name                       Position                 Executor              Basis of Appointment                    Effective date

 Suprajarto               President Commissioners             OJK        Annual GMS on March 17, 2022                 January 19, 2022

 Candra Fajri Ananda      Independent Commissioner            OJK        Annual GMS on February 20, 2018              September 21, 2018

 Muhammad Mas’ud          Independent Commissioner            OJK        Extraordinary GMS on July 19, 2019           October 11, 2019

 Heru Tjahjono            Commissioner                        OJK        Extraordinary GMS on July 19, 2019           October 11, 2019

 Sumaryono                Independent Commissioner            OJK        Annual GMS on March 17, 2022                 January 19, 2022




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Composition of The Board of Commissioners After The Annual GMS for Fiscal Year 2022

On April 12, 2023, the 2022 Annual GMS approved and appointed Muhammad Mas’ud as an Independent Commissioner and Adhy
Karyono as a Commissioner. Thus, the composition of the Board of Commissioners after the 2022 Annual GMS is 5 (five) people
consisting of 1 (one) President Commissioner, 3 (three) Independent Commissioners and 1 (one) Commissioner. The entire Board of
Commissioners is domiciled in East Java Province. The composition and basis for appointment of the Board of Commissioners can
be seen in the table below.


Table of Composition of The Board of Commissioners after The Annual GMS for The Fiscal Year 2022

          Name                       Position         Executor           Basis of Appointment               Effective date

 Suprajarto*                 President                  OJK      Annual GMS on March 17, 2022           January 19, 2022
                             Commissioners

 Adhy Karyono                Commissioner               OJK      Annual GMS on April 12, 2023           November 24, 2023

 Candra Fajri Ananda         Independent                OJK      Annual GMS on February 20, 2018        September 21, 2018
                             Commissioner

 Muhammad Mas’ud             Independent                OJK      - Extraordinary GMS on July 19, 2019   October 11, 2019
                             Commissioner                        - Annual GMS on April 12, 2023

 Sumaryono                   Independent                OJK      Annual GMS on March 17, 2022           January 19, 2022
                             Commissioner


*Resigned from office since 19 December 2023 (died)




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Profile
of The Board of Sharia Supervisory


Drs. KH. Afifuddin Muhajir, M.Ag
Chairman of the Sharia Supervisory Board



          Citizenship                 :    Indonesian citizens

          Place and                        Born in Sampang in 1955,
                                      :
          Date of Birth/Age                age 68 as of December 2023.

          Domicile                    :    Situbondo




Educational                 • Bachelor’s degree in Tafsir Hadith from Ibrahimy University (UNIB) (1980).
Background                  • Masters in Islamic Law at UNISMA Malang (2001).
                            • Doctor Honoris Causa (Dr HC) in the field of Fiqh/Ushul Fiqh at UIN Walisongo Semarang (2021).

Certification               • Training for Sharia Supervisory LKS by DSN-MUI Institute Jakarta (2019).
                            • LSP Sharia Supervisory Board Certification by DSN-MUI Institute Jakarta (2019)
                            • LSP Sharia Supervisory Board Certification by DSN-MUI Institute Jakarta (2022)

Work Experience             •   Lecturer of the Sharia Faculty of Ibrahimy University (UNIB) (1985-present).
                            •   Lecturer of Ma’had Islamic Boarding School Salafiyah Syafi’iyah Sukorejo Situbondo (1990-present).
                            •   Khatib Syuriah Nahdlatul Ulama Executive Board (2010-2015).
                            •   Chairman of the Salafiyah Syafi’iyah Islamic Boarding School Foundation Sukorejo Situbondo (2010-present).
                            •   Naib Mudir Ma’had Aly Islamic Boarding School Salafiyah Syafi’iyah Sukorejo Situbondo (2016-2021).
                            •   Ma’had Aly Masyayikh Council (2018-2022).
                            •   Rais Syuriah, the Executive Board of Nahdlatul Ulama (2019-2020).
                            •   Chairman of the Sharia Supervisory Board of PT Bank Pembangunan Daerah Jawa Timur Tbk (2019-present).
                            •   Deputy Rais Aam Executive Board of Nahdlatul Ulama (2022 – present).

Legal Basis of              Appointed as the Chairman of the Sharia Supervisory Board for the first time at the Annual General Meeting of Shareholders
Appointment                 (GMS) of PT Bank Pembangunan Daerah Jawa Timur Tbk. 2018 Financial Year on April 26, 2019. Then, he was reappointed as
                            the Member of the Sharia Supervisory Board for the second time at the 2022 Annual General Meeting of Shareholders (GMS) of
                            PT Bank Pembangunan Daerah Jawa Timur Tbk on April 12, 2023.

Period of Office            2019 – Until the closing of the Annual GMS for Fiscal Year 2023 (First Period)

Double Function             • Lecturer of the Sharia Faculty of Ibrahimy University (UNIB) (1985-present).
                            • Lecturer of Ma’had Islamic Boarding School Salafiyah Syafi’iyah Sukorejo Situbondo (1990-present).
                            • Chairman of the Salafiyah Syafi’iyah Islamic Boarding School Foundation Sukorejo Situbondo (2010-present)

Bank Jatim Share            Do not have shares in Bank Jatim
Ownership




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Dr. dr. Sukadiono, MM
Member of Sharia Supervisory Board



          Citizenship                :   Indonesian citizens

          Place and                      Born in Jombang in 1968,
                                     :
          Date of Birth/Age              age 55 as of December 2023

          Domicile                   :   Surabaya




Educational                • Bachelor of Medicine from Airlangga University Surabaya (1995).
Background                 • Masters in Management from Narotama University Surabaya (2007).
                           • Doctorate in Sports Science from Surabaya State University (2012).

Certification              -

Work Experience            •   Treasurer of East Java PWM for the period (2015-2022).
                           •   Chairman of the East Java PWM for the period (2022-present).
                           •   Chancellor of Muhammadiyah University Surabaya (2020-present).
                           •   Member of the Sharia Supervisory Board of PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of             Appointed as Member of the Sharia Supervisory Board for the first time at the 2022 Annual General Meeting of Shareholders
Appointment                (GMS) of PT Bank Pembangunan Daerah Jawa Timur Tbk on April 12, 2023.

Period of Office           2023 – Until the closing of the 2027 Annual GMS (First Period).

Double Function            • Chancellor of Muhammadiyah University Surabaya (2020-present).
                           • Chairman of the East Java PWM for the period (2022-present).

Bank Jatim Share           Do not have shares in Bank Jatim
Ownership




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                                                                                                                                       PROFILE




Dr. M. Saad IH, MA
(Muhammad Sa’ad Ibrahim)*
Member of Sharia Supervisory Board



          Citizenship                 :      Indonesian citizens

          Place and                          Born in Mojokerto in 1954,
                                      :
          Date of Birth/Age                  age 69 as of December 2023.

          Domicile                    :      Malang




Educational                 • Bachelor’s Degree in Qadla’ at IAIN Sunan Ampel Surabaya (1983).
Background                  • Master of Islamic Education IAIN Syarif Hidayatullah Jakarta (1990).
                            • Doctoral Ulumul Qur’an IAIN Syarif Hidayatullah Jakarta (1997)

Certification               Training for Sharia Supervisory LKS by DSN-MUI Institute Jakarta (2019).

Work Experience             •   Head of the Institute for Religious and Philosophical Studies (LKAF) (1994-1999).
                            •   Postgraduate Lecturer at IAIN Sunan Ampel Surabaya (1998-present).
                            •   Head of the Department of Comparison of Madzhab and Law, Faculty of Sharia Sunan Ampel Surabaya (1998-1999).
                            •   Postgraduate Lecturer at the University of Muhammadiyah Malang (1999-present).
                            •   Lecturer at UIN Malang (2000-present).
                            •   Chairman of the Council for Tarjih and Development of Muhammadiyah Islamic Thought in East Java Region
                                (2000-present).
                            •   Head of the Arabic Language Learning Program at UIN Malang (2000-2003).
                            •   Postgraduate Lecturer at Muhammadiyah University of Sidoarjo (2001-2003), Assistant Director I Postgraduate at UIN
                                Malang (2003-present).
                            •   Postgraduate Lecturer at the University of Muhammadiyah Surabaya (2004-present).
                            •   Postgraduate Lecturer at the Islamic Institute Hasyim Asy’ari Jombang (2004-present).
                            •   Postgraduate Director of UIN Malang (2005-2007), Vice Chancellor IV of UIN Malang (2007-2009).
                            •   Chairman of the East Java Muhammadiyah Regional Management (2015-2020).
                            •   Member of the Sharia Supervisory Board of PT Bank Pembangunan Daerah Jawa Timur Tbk (2019-2023).
                            •   Muhammadiyah Central Executive (2022 – present).

Legal Basis of              Appointed as Member of the Sharia Supervisory Board for the first time at the Extraordinary General Meeting of Shareholders
Appointment                 (EGMS) of PT Bank Pembangunan Daerah Jawa Timur Tbk. April 26, 2019.

Period of Office            2019 – Until the closing of the Annual GMS for Fiscal Year 2022 (First Period)

Double Function             • Postgraduate Lecturer at IAIN Sunan Ampel Surabaya (1998-present).
                            • Postgraduate Lecturer at the University of Muhammadiyah Malang (1999-present).
                            • Lecturer at UIN Malang (2000-present), Chairman of the Tarjih Council and Development of Muhammadiyah Islamic
                              Thought in East Java Region (2000-present).
                            • Assistant Director I Postgraduate UIN Malang (2003-present).
                            • Postgraduate Lecturer at the University of Muhammadiyah Surabaya (2004-present).
                            • Postgraduate Lecturer at the Islamic Institute Hasyim Asy’ari Jombang (2004-present).

Bank Jatim Share            Do not have shares in Bank Jatim
Ownership
*   Resigned from office on April 12, 2023




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Sharia Supervisory Board Members Affiliate Relations

Table of Affiliation of the Sharia Supervisory Board

                                        Financial Relations, Family and Management of the Sharia Supervisory Board

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

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

 Drs. KH.               Chairman of
 Afifuddin              the Sharia
                                                          √             √              √                √             √                √                √
 Muhajir, M.Ag          Supervisory
                        Board
 Dr. dr.                Member of Sharia
 Sukadiono, MM          Supervisory                       √             √              √                √             √                √                √
                        Board
 Dr. M. Saad IH,        Member of Sharia
 MA (Muhammad           Supervisory                       √             √              √                √             √                √                √
 Sa’ad Ibrahim)*        Board

*Stopped serving since April 12, 2023



Changes in Composition of the Sharia Supervisory Board
and the Reasons for the Changes

The members of the Sharia Supervisory Board consist of at least 2 (two) people and a maximum of 3 (three) people, one of them is the
Chairman. Members of the Sharia Supervisory Board are appointed by the GMS or recommendations from the National Sharia Council
- Indonesian Ulema Council in accordance with applicable laws and regulations, without prejudice to the rights of the GMS to dismiss
members of the Sharia Supervisory Board at any time in accordance with the laws and regulations. During 2023, there will be changes in
the composition of members of the Sharia Supervisory Board. Changes in the composition of members of the Sharia Supervisory Board
are carried out based on the Bank’s needs. Changes in the composition of members of the Sharia Supervisory Board are as follows:


The Composition of The Sharia Supervisory Board
before the Annual GMS for Financial Year 2022

The composition of the Sharia Supervisory Board before the 2022 Annual GMS is 2 (two) people consisting of 1 (one) Chair of the
Sharia Supervisory Board and 1 (one) member of the Sharia Supervisory Board. The entire Sharia Supervisory Board is domiciled in
East Java Province. The composition and basis for the appointment of the Sharia Supervisory Board can be seen in the table below.


Table of Composition and Basis for Appointment of the Sharia Supervisory Board before to the Annual GMS for Financial Year 2022

                Name                        Position       Executor                     Basis of Appointment                          Effective date

 Dr. KH. Afifuddin Muhajir, M.Ag          Chairman            OJK           GMS for Fiscal Year 2018 on April 26, 2019             February 28, 2020
 Dr. H. M. Saad Ibrahim, MA               Member              OJK           GMS for Fiscal Year 2018 on April 26, 2019             February 28, 2020


The Composition of The Sharia Supervisory Board after the Annual GMS for Financial Year 2022

On April 12, 2023, the 2022 Annual GMS approved and appointed KH Affifudin as the Chairman of the Sharia Supervisory Board
and Sukadiono as a member of the Sharia Supervisory Board. Thus, the composition of the Sharia Supervisory Board after the
2022 Annual GMS is 2 (two) people consisting of 1 (one) Chair of the Sharia Supervisory Board and 1 (one) member of the Sharia
Supervisory Board. The entire Sharia Supervisory Board is domiciled in East Java Province. The composition and basis for the
appointment of the Sharia Supervisory Board can be seen in the table below.


Table of Composition and Basis for the Appointment of the Sharia Supervisory Board after the Annual GMS for Financial Year 2022

               Name                        Position     Executor               Basis of Appointment                           Effective date

 Dr. KH. Afifuddin Muhajir, M.Ag         Chairman          OJK         GMS for Fiscal Year 2018 on April 26, 2019   February 28, 2020
 Dr. dr. Sukadiono, MM                   Member            OJK         GMS for Fiscal Year 2022 on April 12, 2023   Still in the Fit and Proper Test process


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Executive Official
Profile
Profil Senior Executive Vice President (SEVP)




                                  Budi Sumarsono

                                  SEVP Corporate Transformation



Citizenship                   :   Indonesian citizens

Domicile                      :   Surabaya

Place and Date of Birth/Age   :   Born in Madiun in 1966, 57 years old as of December 2023.

Educational Background        :   • Bachelor of Finance from Muhammadiyah University (1992).
                                  • Master of Law from Merdeka University (1999).
                                  • Master of Management from Widya Jayakarta University (2000).

Certification                 :   •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2007).
                                  •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2008).
                                  •   Level 3 Risk Management Certification by the Risk Management Certification Agency (2011).
                                  •   Level 4 Risk Management Certification by the Risk Management Certification Agency (2017).
                                  •   Level 1 Compliance Certification by the Compliance Director Communication Forum (2018).
                                  •   General Banking Level 3 Certification by the Banking Professional Certification Institute (2019).
                                  •   Pension Fund Risk Management Certification by the Pension Fund Professional Certification
                                      Institute (2020).

Work Experience               :   • Head of the Probolinggo Branch of PT Pembangunan Daerah Jawa Timur Tbk (2014-2015).
                                  • Head of the Gresik Branch of PT Pembangunan Daerah Jawa Timur Tbk (2015-2017)
                                  • Head of Operational Division of Surabaya Main Branch of PT Pembangunan Daerah Jawa Timur Tbk
                                    (2017-2018).
                                  • Pjs Head of the Compliance & Governance Division of PT Pembangunan Daerah Jawa Timur Tbk
                                    (2018).
                                  • Head of the International Banking Division of PT Pembangunan Daerah Jawa Timur Tbk (2018-
                                    2019).
                                  • Head of the Human Capital Division of PT Pembangunan Daerah Jawa Timur Tbk (2019-2021).
                                  • Head of the Planning & Strategic Division of PT Pembangunan Daerah Jawa Timur Tbk (2021-2022).
                                  • Head of the Corporate Secretary Division of PT Pembangunan Daerah Jawa Timur Tbk (2022-2023).
                                  • SEVP Corporate Transformation PT Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of Appointment    :   Appointed as SEVP Corporate Transformation of PT Bank Pembangunan Daerah Jawa Timur Tbk
                                  based on Directors’ Decree No. 062/017/DIR/HCP/KEP dated February 23, 2023.

Period of Office              :   February 23, 2023 – September 2, 2024

Bank Jatim Share Ownership    :   20.000 shares




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Page 124
                                         Umi Rodiyah

                                         SEVP Sharia Business



Citizenship                          :   Indonesian citizens

Domicile                             :   Surabaya

Place and Date of Birth/Age          :   Born in Probolinggo in 1966, 57 years old as of December 2023.

Educational Background               :   Bachelor of State Administration from Brawijaya University (1991).

Certification                        :   •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2006).
                                         •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2007).
                                         •   Level 3 Risk Management Certification by the Risk Management Certification Agency (2008).
                                         •   Level 4 Risk Management Certification by the Professional Certification Organizing Body (2017).
                                         •   Level 5 Risk Management Certification by the Risk Management Certification Agency (2022).
                                         •   General Banking Level 3 Certification by the Banking Professional Certification Institute (2019).

Work Experience                      :   • Branch Manager of Perak of PT Bank Pembangunan Daerah Jawa Timur Tbk (2010-2015).
                                         • Head of the Overseas Operations Sub Division of the Services and Foreign Funds Division of PT
                                           Bank Pembangunan Daerah Jawa Timur Tbk (2015-2016).
                                         • Head of Business Sector, Surabaya Main Branch, PT Bank Pembangunan Daerah Jawa Timur Tbk
                                           (2016-2017).
                                         • Head of Operations, Surabaya Main Branch, PT Bank Pembangunan Daerah Jawa Timur Tbk (2017).
                                         • Pjs Head of the Corporate Secretary Division of PT Bank Pembangunan Daerah Jawa Timur Tbk
                                           (2017).
                                         • Pjs Head of the Institutional and Business Relations Division of PT Bank Pembangunan Daerah Jawa
                                           Timur Tbk (2018).
                                         • Head of the Institutional and Business Relations Division of PT Bank Pembangunan Daerah Jawa
                                           Timur Tbk (2018-2020).
                                         • Head of the Services Fund Division of PT Bank Pembangunan Daerah Jawa Timur Tbk (2020-2021).
                                         • Head of the Corporate Secretary Division of PT Bank Pembangunan Daerah Jawa Timur Tbk (2021-
                                           2022).
                                         • Head of the Treasury Division of PT Bank Pembangunan Daerah Jawa Timur Tbk (2022-2023).
                                         • Pjs SEVP Sharia Business PT East Java Regional Development Bank Tbk (2023).
                                         • SEVP Sharia Business PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of Appointment           :   Appointed as SEVP of Sharia Business PT Bank Pembangunan Daerah Jawa Timur Tbk based on
                                         Directors’ Decree No. 062/041/DIR/HCP/KEP dated May 31, 2023.

Period of Office                     :   May 31, 2023 - March 02, 2024

Bank Jatim Share Ownership           :   226.500 shares




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                                                                                                                       COMPANY
                                                                                                                        PROFILE




                                  Revi Adiana Silawati

                                  SEVP Network and Services



Citizenship                   :   Indonesian citizens

Domicile                      :   Surabaya

Place and Date of Birth/Age   :   Born in Solo in 1966, 57 years old as of December 2023.

Educational Background        :   • Bachelor of Management from Wijaya Putra University (1996).
                                  • Master of Management from Airlangga University (1998).

Certification                 :   •   Level 1 Risk Management Certification by the Risk Management Certification Agency (2006).
                                  •   Level 2 Risk Management Certification by the Risk Management Certification Agency (2006).
                                  •   Level 3 Risk Management Certification by the Risk Management Certification Agency (2007).
                                  •   Level 4 Risk Management Certification by the Professional Certification Organizing Body (2011).
                                  •   Level 5 Risk Management Certification by the Risk Management Certification Agency (2013).

Work Experience               :   •   Branch Head of Operations of DR. Soetomo (2001-2003).
                                  •   Branch Manager of Perak (2003-2006)
                                  •   Head of Bojonegoro Branch (2006-2009).
                                  •   Branch Manager of Kediri (2009-2011)
                                  •   Branch Manager of Malang (2011-2012).
                                  •   Head of Corporate Secretary (2012-2013).
                                  •   Head of Services and Foreign Funds Division (2013-2015).
                                  •   Head of the Treasury Division (2015-2018).
                                  •   Head of Strategic Planning and Performance Management Division (2018-2021).
                                  •   Head of Human Capital Division (2021-2023).
                                  •   SEVP Network & Services PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-present).

Legal Basis of Appointment    :   Appointed as SEVP Network & Services of PT Bank Pembangunan Daerah Jawa Timur based on Board
                                  of Directors Decree No. 062/017/DIR/HCP/KEP dated February 23, 2023.

Period of Office              :   February 23, 2023 - June 01, 2024

Bank Jatim Share Ownership    :   800 shares




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                                         Hermita

                                         SEVP Consumer Banking



Citizenship                          :   Indonesian citizens

Domicile                             :   Surabaya

Place and Date of Birth/Age          :   Born in Padang in 1968, age 55 years old as of December 2023.

Educational Background               :   • Bachelor of Law from Andalas University (1992).
                                         • Master in Agribusiness Management of Bogor Agricultural Institute (2003).

Certification                        :   • WAPERD, BNI certification
                                         • Management Risk Level 4, BSMR
                                         • Assessment Center Assessor Certification, PPM

Work Experience                      :   • Head of the South Jakarta Regional Office of PT Bank Negara Indonesia (Persero) Tbk (2011-2014).
                                         • Head of the North Sulawesi Regional Office of PT Bank Negara Indonesia (Persero) Tbk (2014-
                                           2015).
                                         • Head of the South Jakarta Regional Office of PT Bank Negara Indonesia (Persero) Tbk (2015-2016)
                                         • Head of Consumer Products Division of PT Bank Negara Indonesia (Persero) Tbk (2016-2018).
                                         • Senior Vice President of Consumer Sales Division of PT Bank Negara Indonesia (Persero) Tbk (2018-
                                           2020).
                                         • Vice President of Align Corporate & Consumer Businesses, Institutional Relations Division, PT Bank
                                           Negara Indonesia (Persero) Tbk (2020-2021).
                                         • Pgs. Head of the Regional Office of the Palembang Regional Office of PT Bank Negara Indonesia
                                           (Persero) Tbk (2022-2023).
                                         • Senior Vice President of Smart City, Business Optimization of PT Bank Negara Indonesia (Persero)
                                           Tbk (2021-2023).
                                         • SEVP Consumer Banking PT Bank Pembangunan Daerah Jawa Timur Tbk (2023-Present).

Legal Basis of Appointment           :   Appointed as SEVP Consumer Banking based on Directors’ Decree No. 062/22/HCP/PK dated May
                                         29, 2023.

Period of Office                     :   June 01, 2023 - May 31, 2025

Bank Jatim Share Ownership           :   There are no shares




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                                                                                                                   COMPANY
                                                                                                                    PROFILE




                                  Koerniawan Prijambodo

                                  SEVP Corporate, Syndicated and Institutional



Citizenship                   :   Warga Negara Indonesia

Domicile                      :   Surabaya

Place and Date of Birth/Age   :   Born in Lumajang in 1967, age 56 years old as of December 2023.

Educational Background        :   • Bachelor degree in Engineering Physics of Sepuluh Nopember Institute of Technology (1991).
                                  • Finance & Banking Master in Management of Gadjah Mada University (1993).

Certification                 :   BSMR Level 4 (December 2021).

Work Experience               :   • Engineer at PT Bukaka Teknik Utama (1991-1992).
                                  • PT Bank CIMB Niaga Tbk Executive Education Program (1993-1995).
                                  • Relationship Manager (RM) & Brach Manager Commercial Banking PT Bank CIMB Niaga Tbk in
                                    Kediri and Surabaya (1995-2010).
                                  • Head of West Java Commercial Banking Regional Office PT Bank CIMB Niaga Tbk (2010-2012).
                                  • Head of Commercial Banking Regional Office East Java Bali Nusra PT Bank CIMB Niaga Tbk (2012-
                                    2019).
                                  • Head of Regional Office III (East Java, Bali Nusra and Eastern Indonesia) Indonesian Export
                                    Financing Institute (LPEI)/Indonesia EXIMBANK (2020-2023).
                                  • SEVP Corporate, Syndicated and Institutional PT Bank Pembangunan Daerah Jawa Timur Tbk (2023
                                    – Present).

Legal Basis of Appointment    :   Appointed as SEVP Corporate, Syndicated and Institutional based on Directors Decree No. 062/23/
                                  HCP/PK dated May 29, 2023.

Period of Office              :   July 01, 2023 - June 30, 2025

Bank Jatim Share Ownership    :   There are no shares




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                                                                                                        2023 Annual Report   125
Page 128
Profil Vice President (VP)

                                        Wioga Adhiarma Aji

                                        Vice President Corporate Secretary



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Surabaya

                                        Place and                :   Born in Surabaya in 1978,
                                        Date of Birth/Age            45 years old as of December 2023.

                                        Educational              :   • Bachelor of Law Studies from Panca Marga University, Probolinggo
                                        Background                     (2002).
                                                                     • Master of Law from the University of 17 August 1945 Surabaya (2020).

                                        Legal Basis of           :   Since 2023 served as Vice President of Corporate Secretary based
                                        Appointment                  on the Decree of the Board of Directors No. 062/057/DIR/HCP/KEP
                                                                     dated July 20, 2023.

                                        Work Experience          :   He joined Bank Jatim in 1997. Prior to occupying his current position,
                                                                     he had served as Head of Operations for the Bojonegoro Branch
                                                                     (2012), Head of the Bojonegoro Branch (2013), Head of Operations
                                                                     for the Main Branch (2018), Head of the Kediri Branch (2020). Acting
                                                                     Head of General Division (2022).




                                        Wardhana Suryaatmaja

                                        VP Audit Internal



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Surabaya

                                        Place and                :   Born in Surabaya in 1967,
                                        Date of Birth/Age            56 years old as of December 2023.

                                        Educational              :   • Bachelor of Development Studies from Wijaya Putra University
                                        Background                     (1995).
                                                                     • Master of Management from the Artha Bodhi Iswara College of
                                                                       Economics (1998)

                                        Legal Basis of           :   Since 2023, he has served as Vice President of Internal Audit based
                                        Appointment                  on the Decree of the Board of Directors No. 062/061/DIR/HCP/KEP
                                                                     August 8, 2023.

                                        Work Experience          :   Joined Bank Jatim in 1991. Prior to his current position, he served as
                                                                     Acting Head of Sharia Branch of Madiun (2015), Head of Accouting
                                                                     Subdivision (2015), Acting Head of Information Technology Division
                                                                     (2016), Head of Information Technology Division (2017), Head of
                                                                     Product Development and Policy Division (2018), Head of General
                                                                     Division (2019), Head of Corporate Risk Management Division (2022).




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Sis Maryadi

Vice President of Funds and Services



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Boyolali in 1966.
Date of Birth/Age             57 years old as of December 2023.

Educational               :   • Bachelor of Economics from the Artha Bodhi Iswara College of
Background                      Economics, Surabaya (2001).
                              • Master of Management from the Jakarta Imni College of
                                Management (2005).

Legal Basis of            :   Since 2023, he has served as Vice President of the Funds and Services
Appointment                   based on the Decree of the Board of Directors No. 062/055/DIR/HCP/
                              KEP July 5, 2023.

Work Experience           :   Joined Bank Jatim in 1986. Before his current position, he served
                              as Head of Gresik Branch Operations (2013), Trenggalek Branch
                              Manager (2015), Head of Agribusiness and Retail Credit Sub Division
                              (2017), Head of Consumer Credit Division (2018), Head of Rescue and
                              Credit Settlement (2022).




Mugni Nurachman

Vice President of Legal



Citizenship               :   Indonesian citizens

Domicile                  :   Nganjuk

Place and                 :   Born in Jakarta in 1971,
Date of Birth/Age             52 years old as of December 2023.

Educational               :   • Bachelor of Law, Yogyakarta Islamic University of Indonesia (1995).
Background                    • Master of Program Management at Wijaya Putra University (2006).

Legal Basis of            :   Since 2023 served as a legal vice president based on the Decree of the
Appointment                   Board of Directors No. 062/057/DIR/HCP/KEP dated July 20, 2023.


Work Experience           :   He joined Bank Jatim in 1997. Prior to occupying his current position,
                              he served as Head of the Merican Sub-Branch Office, Kediri Branch
                              (2014), Senior Analyst for Legal Group Litigation Legal Division (2016),
                              Acting. Head of Legal Litigation Sub Division, Legal Division (2018),
                              Head of Legal Litigation Sub Division, Legal Division (2018), Head of
                              Jombang Branch (2020), Head of Legal Litigation Sub Division, Legal
                              Division (2021), Acting Head of Law Division (2022).




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                                        R. Wahyukusumo Wisnubroto

                                        Vice President of International Banking



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Sidoarjo

                                        Place and                 :   Born in Yogyakarta in 1972,
                                        Date of Birth/Age             51 years old as of December 2023.

                                        Educational               :   • Bachelor of Civil Engineering from Bandung Institute of Technology
                                        Background                      (1998).
                                                                      • Master of Management from Gadjah Mada University (2001).

                                        Legal Basis of            :   Since 2023, he has served as Vice President of the International
                                        Appointment                   Banking based on the Decree of the Board of Directors No. 062/041/
                                                                      DIR/HCP/KEP May 31, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2002. Before his current position, he served
                                                                      as Head of Cab Operations. Ngawi (2013), Head of Bid. Cab
                                                                      Operations. Jakarta (2013), Branch Manager HR Muhammad (2014),
                                                                      Head of Dealingroom Sub Division Treasury Division (2015), Acting.
                                                                      International Banking Division Leader (2017), Head of Treasury Division
                                                                      (2018), Head of Strategic Planning and Performance Management
                                                                      Division(2022).




                                        Mukhlison

                                        Vice President of Commercial Credit, Corporate and Syndication



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Jombang in 1974.
                                        Date of Birth/Age             49 years old as of December 2023.

                                        Educational               :   Bachelor of Economics from Wijaya Putra University, Surabaya (2001)
                                        Background

                                        Legal Basis of            :   Since 2023 served as Vice President of Commercial Credit,
                                        Appointment                   Corporations and Syndications based on Decree of the Board of
                                                                      Directors No. 062/050/DIR/HCP/KEP dated June 22, 2023.

                                        Work Experience           :   Joined Bank Jatim in 1995. Before his current position, he served
                                                                      as Head of Cab Operations. Pacitan (2012), Head of Cab. Jombang
                                                                      (2013), Leader of Cab. Probolinggo (2015), Sub-Division Leader in the
                                                                      Corporate and Syndicated Medium Credit Division (2018), Pgs. Head
                                                                      of Commercial, Corporate and Syndicated Credit Division (2021),
                                                                      Acting as Head of Corporate Commercial Credit and Sundication
                                                                      Division (2022).




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Suci Issumiyarti

Vice President of Risk Management



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and                :   Born in Semarang in 1966,
Date of Birth/Age            57 years old as of December 2023.

Educational              :   Bachelor of French from the Semarang State Teacher Training and
Background                   Education Institute (1989).

Legal Basis of           :   Since 2023, she has served as Vice President of the Risk Management
Appointment                  based on the Decree of the Board of Directors No. 062/148/DIR/HCP/
                             KEP August 16, 2023.

Work Experience          :   Joined Bank Jatim in 1994. Prior to his current position, he served
                             as Head of Operational Division of Ngawi Branch (2011), Head
                             of Kepanjen Branch (2012), Head of Tulungagung Branch (2014),
                             Head of Corporate Secretary Sub Division (2015), Head of Malang
                             Branch (2015), Head of Strategic Planning Division (2017), Head of
                             Institutional and Business Relations Division (2017), Head of Credit
                             Risk Division (2018), Head of Business Risk Division (2020). Head of
                             the Enterprise Risk Management Division (2021), Head of Operation
                             Division (2022).




Glemboh Priambodo

Vice President of Subsidiaries Management



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and                :   Born in Malang in 1970,
Date of Birth/Age            53 years old as of December 2023.

Educational              :   •   Bachelor of Law from the University of Surabaya (1997).
Background                   •   Master of Law from 17 August University Surabaya (2001).
                             •   Master of Management from STIE ABI Surabaya (2003).
                             •   Doctor of Law from Seventeen August University 1945 (2022).

Legal Basis of           :   Since 2023, he has served as Vice President of Subsidiaries
Appointment                  Management based on Board of Directors Decree No. 062/055/DIR/
                             HCP/KEP July 5, 2023.

Work Experience          :   He joined Bank Jatim in 1997. Prior to occupying his current position,
                             he served as Senior Analyst for External Communication Sub Division
                             (2015), Senior Analyst for Priority Banking Sub Division (2015), Acting.
                             Branch Manager Dr.Soetomo (2016), Branch Manager Dr. Soetomo
                             (2017), Head of Corporate Secretary (2018), Head of Bank Jatim Main
                             Branch (2021), Head of Compliance and Governance Division (2022).




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                                        Herijadi Widodo

                                        Vice President of General



                                        Citizenship                 :   Indonesian citizens

                                        Domicile                    :   Sidoarjo

                                        Place and                   :   Born in Surabaya in 1971,
                                        Date of Birth/Age               52 years old as of December 2023.

                                        Educational                 :   • Bachelor of Law from University of Sunan Bonang Tuban (1999).
                                        Background                      • Master in Management from University of Wijaya Putra Surabaya
                                                                          (2008)

                                        Legal Basis of              :   Since 2023 served as a General Vice President of Decree of the Board
                                        Appointment                     of Directors No. 062/057/DIR/HCP/KEP dated July 20, 2023.

                                        Work Experience             :   Joined Bank Jatim in 1993. Prior to his current position, he served
                                                                        as Head of Operations of Sampang Branch (2013), Head of Bawean
                                                                        Branch (2014), Head of Bangkalan Branch (2014), Head of Jombang
                                                                        Branch (2015), Head of Credit Division of Main Branch (2017), Head of
                                                                        Jakarta Branch (2020), Acting as Main Branch Leader (2022).




                                        Nur Eko Ardian

                                        Vice President of Product Development



                                        Citizenship                 :   Indonesian citizens

                                        Domicile                    :   Surabaya

                                        Place and                   :   Born in Surabaya in 1980,
                                        Date of Birth/Age               43 years old as of December 2023.

                                        Educational                 :   • Bachelor of State Administration from Wijaya Putra University
                                        Background                        (2003).
                                                                        • Master of State Administration from Wijaya Putra University (2005).

                                        Legal Basis of              :   Since 2023, he has served as Vice President of Product Development
                                        Appointment                     based on the Decree of the Board of Directors No. 062/041/DIR/HCP/
                                                                        KEP May 31, 2023.

                                        Work Experience             :   Joined Bank Jatim in 2006. Before his current position, he served as
                                                                        Senior Analyst at Corporate Secretary (2015), Head of Operational
                                                                        Bid for Tuban Cab (2015), Head of Kepanjen Cab (2015), Head of
                                                                        Compliance and Governance Division (2018 ), Head of the Human
                                                                        Capital Division (2018), Head of the Corporate Risk Management
                                                                        Division (2019), Head of Accounting and Financial Management
                                                                        Division (2022).




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Eko Tri Prasetyo

Vice President of Operation



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Surabaya in 1981,
Date of Birth/Age             42 years old as of December 2023.

Educational               :   • Telkom College majoring in Informatics Engineering (2003).
Background                    • Master of Information Technology from the University of Indonesia
                                (2006).

Legal Basis of            :   Since 2023, he has served as Vice President of Operations based on
Appointment                   Board of Directors Decree No. 062/148/DIR/HCP/KEP August 6, 2023.

Work Experience           :   Joined Bank Jatim in 2012. Before his current position, he served
                              as Sub-Division Leader in the Internal Audit Division (2012) Head of
                              the Internal Audit Division (2018), Head of Information Technology
                              Division (2021).




Setya Erry Nugraha

Vice President of Credit Risk Analyst



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Serang in 1978,
Date of Birth/Age             45 years old as of December 2023.

Educational               :   Bachelor of Management Economics from STIE IEU Yogyakarta (2001).
Background

Legal Basis of            :   Since 2023 served as Vice President of Credit Risk Analysts based on
Appointment                   Decree of the Board of Directors No. 062/050/DIR/HCP/KEP dated
                              June 22, 2023.

Work Experience           :   He joined Bank Jatim in 2015. Prior to occupying his current position,
                              he served as Branch Manager of Perak (2015), Head of HR Branch.
                              Muhammad (2015), Head of Pare Branch (2017), Head of Sub Division
                              of Medium Credit for Syndicated Corporations (2019), Head of Credit
                              for Main Branch (2020), Acting Head of Business Risk Division (2022).




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                                        Slamet Purwanto

                                        Acting as Vice President Human Capital



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Surabaya

                                        Place and                :   Born in Surabaya in 1979,
                                        Date of Birth/Age            44 years old as of December 2023.

                                        Educational              :   • Bachelor of Computer from STIKOM Surabaya (2004).
                                        Background                   • Master in Management from UPN Veteran Jatim (2016).

                                        Legal Basis of           :   Since 2023, he has served as Acting Vice President of Human Capital
                                        Appointment                  based on the Decree of the Board of Directors No. 062/055/DIR/HCP/
                                                                     KEP July 5, 2023.

                                        Work Experience          :   Joined Bank Jatim in 2006. Prior to his current position, he served
                                                                     as Head of Investor Relations Corporate Secretary Subdivision (2015),
                                                                     Head of Human Capital Division Development Subdivision (2020),
                                                                     Head of Learning Center Subdivision (2021).




                                        Firman Iswahyudi M

                                        Acting as Vice President of Retail and Medium Credit



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Sidoarjo

                                        Place and                :   Born in Purworejo in 1968,
                                        Date of Birth/Age            55 years old as of 2023.

                                        Educational              :   • Bachelor of Economics from Putra Bangsa University Surabaya
                                        Background                     (1996).
                                                                     • Master of Management from STIESIA University Surabaya (2002).
                                                                     • Doctor of Economics – Strategic Management from STIESIA
                                                                       University Surabaya (2018).

                                        Legal Basis of           :   Since 2023, he has served as Acting Vice President of Retail and
                                        Appointment                  Medium Loans based on Decree of Board of Directors No. 062/041/
                                                                     DIR/HCP/KEP May 31, 2023.

                                        Work Experience          :   He joined Bank Jatim in 1991. Prior to occupying his current position,
                                                                     he served as Acting. Head of Medium & Corporate Credit Sub Division
                                                                     Corporate Credit Division (2014), Head of Medium & Corporate Credit
                                                                     Sub Division Corporate Credit Division (2015), Head of Trinisat Sub
                                                                     Division (2015), Head of Property Credit Sub Division Consumer Credit
                                                                     Division (2017), Branch Head HR Muhammad (2019), Pamekasan
                                                                     Branch Manager (2020), Gresik Branch Manager (2021), Acting Head
                                                                     of Microcredit, Retail and Program Division (2022).




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Wahasta Hartadi

TKK Vice President Credit Restructuring and Recovery



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and                :   Born in Madiun in 1967,
Date of Birth/Age            56 years old as of December 2023.

Educational              :   • Bachelor of Economics from UNPAD Bandung (1991).
Background                   • Master in Management from UNHAS Makasar (2003).

Legal Basis of           :   Since 2023, he has served as TKK Vice President of Credit Restructuring
Appointment                  and Recovery based on Bank Jatim Work Agreement No. 062/29/
                             HCP/PK July 24, 2023.

Work Experience          :   Joined Bank Jatim in 2023. Prior to his current position, he served as
                             Head of Remedial & Recovery BNI Makasar Regional Office (2012),
                             Head of Remedial & Recovery BNI Padang Regional Office (2016),
                             Head of Remedial & Recovery BNI Bandung Regional Office (2017),
                             Sub Project Management Planning Division BNI Jakarta (2019).




Putu Denny Hariwidyanta

Acting as Vice President of Compliance and AML CFT



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and                :   Born in Denpasar in 1977,
Date of Birth/Age            46 years old as of December 2023.

Educational              :   Bachelor of Information Engineering from Surabaya College of
Background                   Engineering (2001)

Legal Basis of           :   Since 2023 he has served as Acting Vice President of Compliance
Appointment                  & APU PPT based on Directors’ Decree No. 062/055/DIR/HCP/KEP
                             dated July 05, 2023

Work Experience          :   Joined Bank Jatim in 2023. Prior to his position, he served as Head of
                             Sub-Division in Product Development & Service Fund Policy Division
                             (2018), Head of Main Branch Operations (2022).




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                                        Agus Sastriono

                                        Acting as Vice President of Consumer Credit



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Surabaya

                                        Place and Date of        :   Born in Surabaya in 1971,
                                        Birth/Age                    52 years old as of December 2023.

                                        Educational              :   • Bachelor of Accounting from Surabaya State IKIP University (1990).
                                        Background                   • Master of Management from STIE-ABI University Surabaya (2000).

                                        Legal Basis of           :   Since 2023, he has served as Acting Vice President of Consumer
                                        Appointment                  Credit based on the Decree of the Board of Directors No. 062/148/
                                                                     DIR/HCP/KEP August 16, 2023.

                                        Work Experience          :   Joined Bank Jatim in 1997. Prior to his current position, he served as
                                                                     Head of Sumenep Branch Operations (2013), Head of Bawean Branch
                                                                     (2013), Head of Mojokerto Branch (2014), Head of Jember Branch
                                                                     (2019), Head of Business Division of Surabaya Main Branch (2019),
                                                                     Head of Jember Branch (2019), Head of Banyuwangi Branch (2020),
                                                                     Head of Jakarta Branch (2022), Head of Credit Division of Main Branch
                                                                     (2023).




                                        R. Deni Mahendra

                                        Acting as Vice President of Accounting and Financial Management



                                        Citizenship              :   Indonesian citizens

                                        Domicile                 :   Sidoarjo

                                        Place and Date of        :   Born in Situbondo in 1973,
                                        Birth/Age                    50 years old as of December 2023.

                                        Educational              :   Bachelor of Economics from Universitas Brawijaya (1998).
                                        Background

                                        Legal Basis of           :   Since 2023, he has served as Acting Vice President of accounting &
                                        Appointment                  Financial Management based on the Decree of the Board of Directors
                                                                     No. 062/055/DIR/HCP/KEP July 5, 2023.

                                        Work Experience          :   Joined Bank Jatim in 2002. Prior to his current position, he served
                                                                     as Head of Operations of the Accounting Division (2015), Acting
                                                                     Head of the Accounting Subdivision (2016), Head of the Accounting
                                                                     Subdivision (2017), Head of the Accounting & Budget Subdivision
                                                                     (2017), Head of the Financial & Taxation Control Subdivision (2018),
                                                                     Head of Tuban Branch (2020), Head of Mojokerto Branch (2022).




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Teguh Sunyoto

Acting as Vice President Micro



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and Date of        :   Born in Madiun in 1966,
Birth/Age                    57 years as of December 2023.

Educational              :   • Bachelor of Economics and Development from Universitas Wijaya
Background                     Putra Surabaya (1999).
                             • Master in Management from Universitas Gajayana Malang (2004).

Legal Basis of           :   Since 2023, he has served as Acting Vice President of Microcredit
Appointment                  based on the Decree of the Board of Directors No. 062/041/DIR/HCP/
                             KEP May 31, 2023.

Work Experience          :   Joined Bank Jatim in 1991. Prior to his current position, he served as
                             Head of Lamongan Branch (2015), Head of Performance Management
                             Subdivision (2017), Head of Nganjuk Branch (2021), Head of Kediri
                             Branch (2022).




Runita Pri Purwanti

Acting as Vice President of Strategic Planning and Performance



Citizenship              :   Indonesian citizens

Domicile                 :   Surabaya

Place and Date of        :   Born in Malang in 1967,
Birth/Age                    56 years as of December 2023.

Educational              :   Bachelor of Economics and Development Studies from Universitas
Background                   Brawijaya (1991).

Legal Basis of           :   Since 2023, she has served as Acting Vice President of Strategic
Appointment                  Planning and Performance Management based on the Decree of the
                             Board Directors No. 062/041/DIR/HCP/KEP May 31, 2023.

Work Experience          :   Joined Bank Jatim in 1991. Priot to her current position, she served as
                             Head of Gresik Branch (2017), Head of Fund & Priority Banking Main
                             Branch (2021), Head of Sidoarjo Branch (2022).




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                                        Handayanto

                                        Acting as Vice President of Information Technology



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Surabaya in 1975,
                                        Date of Birth/Age             48 years as of December 2023.

                                        Educational               :   Bachelor of Computer from Sepuluh Nopember Technology Institute
                                        Background                    (ITS) (2000).

                                        Legal Basis of            :   Since 2023, she has served as Acting Vice President of Information
                                        Appointment                   technology based on the Decree of the Board Directors No No.
                                                                      062/148/DIR/HCP/KEP August 16, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2001. Prior to his current position, he served
                                                                      as Head of IT Development Subdivision of Information technology
                                                                      Division (2015), Head of Support & Operations Subdivision of
                                                                      Information Technology Division (2016), Head of Procurement
                                                                      Subdivision of General Division (2020).




                                        R. Wahyu Tedjasukmana

                                        Acting as Vice President of Treasury



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Banyuwangi in 1972,
                                        Date of Birth/Age             51 years as of December 2023.

                                        Educational               :   Bachelor of Engineering from ITS Surabaya (2000).
                                        Background

                                        Legal Basis of            :   Since 2023, he has served as Acting Vice President of Treasury based
                                        Appointment                   on the Decree of the Board of Directors No. 062/041/DIR/HCP/KEP
                                                                      May 31, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2001. Prior to his current position, he served
                                                                      as Head of Sharia Branch of Kediri (2019), Head of Shria Branch of
                                                                      Jember (2016), Senior Dealer in Treausry Division (2014).




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Herry Setya Yudakka

Acting as Vice President of Policies & Procedures



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Gresik in 1977,
Date of Birth/Age             46 years as of December 2023.

Educational               :   Bachelor of Industrial Engineering from University of Veteran Surabaya,
Background                    Jawa Timur (1995).

Legal Basis of            :   Since 2023, he has served as Acting Vice President of Policies and
Appointment                   Procedures based on the Decree of the Board of Directors No.
                              062/041/DIR/HCP/KEP May 31, 2023.

Work Experience           :   Joined Bank Jatim in 2002. Prior to his current position, he served
                              as Acting Head of Trenggalek Branch Operations (2012), Head of
                              Lumajang Branch Operations (2014), Head of Lumajang Branch
                              (2014), Head of Jombang Branch (2017), Head of Malang Branch
                              (2020), Head of Credit Division of Main Branch (2022), Acting Head of
                              Product Development Division (2023).




M. Machfud Hidayat

Acting as Vice President Digital Banking



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Surabaya in 1969,
Date of Birth/Age             54 years as of December 2023.

Educational               :   Bachelor of Economics from University of Wijaya Putra Surabaya
Background                    (2001).

Legal Basis of            :   Since 2023, he has served as Acting Vice President of Digital Banking
Appointment                   based on the Decree of the Board of Directors No. 062/041/DIR/HCP/
                              KEP May 31, 2023.

Work Experience           :   Joined Bank Jatim in 1991. Prior to his current position, he served
                              as Head of Operations in DJL Division (2014), Head of Taxation
                              Subdivision (2015), Head of Financial & Taxation Control Subdivision
                              (2017), Head of Digital Development Sub Unit (2022).




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                                        Melvin

                                        Acting as Vice President of Network and Service Management



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Padang in 1976,
                                        Date of Birth/Age             47 years as of December 2023.

                                        Educational               :   Bachelor of Informatics Engineering Indonesia Institue of Technology
                                        Background                    (1999).

                                        Legal Basis of            :   Since 2023, he has served as Acting Vice President of Network &
                                        Appointment                   Service Management bsed on the Decree of the Board of Directors
                                                                      No. 062/055/DIR/HCP/KEP July 5, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2010. Prior to his current position, he served
                                                                      as Acting Head of Operations placed in the Information Technology
                                                                      Division (2014), Acting Head of Information Technology Development
                                                                      Subdivision (2016), Head of Accounting and Financial Reporting
                                                                      Subdivision (2018).




                                        Misbakhul Iman

                                        Acting as Vice President of Sharia Business



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Sidoarjo in 1969,
                                        Date of Birth/Age             54 years as of December 2023.

                                        Educational               :   Bachelor of Economics from University of Brawijaya Malang (1998).
                                        Background

                                        Legal Basis of            :   Since 2023, he has served as Acting Vice President of Sharia Business
                                        Appointment                   based on the Decree of the Board Directors No. 062/041/DIR/HCP/
                                                                      KEP May 1, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2012. Priot to his current position, he served as
                                                                      Head of Operations Division of Sharia Surabaya (2012), Head of Sharia
                                                                      Branch Kediri (2014), Head of Sharia Branch Surabaya (2019).




      PT Bank Pembangunan Daerah Jawa Timur Tbk
138   2023 Annual Report
Page 141
                                                                                    COMPANY
                                                                                     PROFILE




M. Pramudya Iskandar

Acting as Vice President Sharia Business Support



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Sukabumi in 1968,
Date of Birth/Age             55 years as of December 2023.

Educational               :   • Bachelor of Economics and Development Studies from Padjadjaran
Background                      University (UNPAD) Bandung (1992).
                              • Master of Management from Gajah Mada University (UGM)
                                Yogyakarta (1999).

Legal Basis of            :   Since 2023, he has served as Acting Vice President of Sharia Busienss
Appointment                   Support based on the Decree of the Board of Directors No. 062/041/
                              DIR/HCP/KEP May 31, 2023.

Work Experience           :   He joined Bank Jatim in 2009. Prior to occupying his current position,
                              he served as Branch Leader of Sharia Surabaya (2009) and Head of Sub
                              Division of Sharia Business Unit Financing (2016), Acting Compliance
                              Head of Sharia Business Division (2022).




Syaiful Bakhri

Acting as Compliance Head of Security Unit



Citizenship               :   Indonesian citizens

Domicile                  :   Surabaya

Place and                 :   Born in Bojonegoro in 1978,
Date of Birth/Age             45 years as of December 2023.

Educational               :   Bachelor of Computer from Budi Luhur College of Information and
Background                    Computer Management (2001).

Legal Basis of            :   Since 2023, he has served as Acting Compliance Head of IT Security
Appointment                   Unit based on Appointment Letter No. 062/2002/HCP/HOHC/SRT
                              October 18, 2023.

Work Experience           :   Joined Bank Jatim in 2001. Prior to his current position, he served
                              as Head of IT Governance & Security Subdivision of Information
                              Technology Division (2018), AVP of Infrastructure & Operations of
                              Information Technology Division (2023).




                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                 2023 Annual Report           139
Page 142
                                        Santoso

                                        Head of Credit Administration Unit



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Jember in 1970,
                                        Date of Birth/Age             53 years as of December 2023.

                                        Educational               :   Bachelor of Law from Univeristy of Panca Marga Probolinggo (2001).
                                        Background

                                        Legal Basis of            :   Since 2023, he has served as Head of Credit Administration Unit
                                        Appointment                   based on Appointment Letter No. 062/218/HCP/KPH/KEP December
                                                                      30, 2022.

                                        Work Experience           :   Joined Bank Jatim in 1995. Prior to his current position, he served as
                                                                      Head of Maron Sub Branch (2017), Head of Micro Credit Subdivision
                                                                      of Micro Credit & Program Division (2021), Head of Credit Operations
                                                                      Subdivision of Operations (2022).




                                        Retno Handayani

                                        Compliance Head of Institutional Relations Unit



                                        Citizenship               :   Indonesian citizens

                                        Domicile                  :   Surabaya

                                        Place and                 :   Born in Jakarta in 1974,
                                        Date of Birth/Age             49 years as of December 2023.

                                        Educational               :   • Bachelor of Economics from University of Wiraswasta Indonesia
                                        Background                      (2002).
                                                                      • Master in Management from University of Trisakti (2013).

                                        Legal Basis of            :   Since 2023, he has served as Acting Compliance Head of Institutional
                                        Appointment                   Relations Unit based of Appointmnet Letter No. 062/041/DIR/HCP/
                                                                      KEP May 31, 2023.

                                        Work Experience           :   Joined Bank Jatim in 2016. Prior to his current position, he served
                                                                      as Head of Operations of Jakarta Branch (2017), Head of Business of
                                                                      Jakarta Branch (2020), Head of Subdivision of of Institution Service
                                                                      Fund and Corporate Fund and Services Division (2021).




      PT Bank Pembangunan Daerah Jawa Timur Tbk
140   2023 Annual Report
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                                                                                                                                                    COMPANY
                                                                                                                                                     PROFILE




Employee
Profile
Number of Employees by Gender

Table of Number of Employees by Gender                                                                                                                   (in person)


                                    Gender                                                        2023                                           2022

 Male                                                                                             2.512                                          2.436

 Female                                                                                           2.032                                          1.932

 Total                                                                                            4.544                                          4.368




Number of Employees by Position Level

Table of Number of Employees by Position Level                                                                                                           (in person)


                                                                               2023                                                 2022
                   Position Level
                                                             Male              Female        Total                Male             Female                Total

 NO                                                             244                   -           244                260                     3             263

 S, C & T                                                     1.507             1.420            2.927             1.491             1.332               2.823

 Pll, Pngl, PK, Au, ARM and An                                  491               435             926                445               433                 878

 PBO, PCP, S.Au & RM                                            176               139             315                150               128                 278

 AVP, PC & PB                                                    64               33               97                 74                    32             106

 VP & PCU                                                        28                2               30                 16                    4               20

 SEVP                                                              2               3                 5                  -                    -                -

 Total                                                        2.512             2.032            4.544            2.370              1.896               4.368

Description:
NO              Non Administration                                                        PCP             Sub-Branch Leader
S, C, & T       Staff, Prospective Employees and Employment Contract Workers              S.Au            Senior Auditor
PII             Supervisor                                                                RM              Relationship Manager
PK              Head of Functional Office                                                 AVP             Assistance Vice President
Au              Auditor                                                                   PC              Head of Branch
ARM             Assistant Relation Manager                                                PB              Head of Field
An              Analyst                                                                   VP              Vice President
PBO             Head of Operations                                                        PCU             Head of Main Branch
Pngl            Manager                                                                   SEVP            Senior Executive Vice President




Number of Employees by Range of Age

Table of Number of Employees by Range of Age                                                                                                             (in person)


                                                                                2023                                                 2022
                   Range of Age
                                                              Male             Female            Total             Male            Female                Total

 < 30 Years Old                                                  248              331             579                215                300               515

 30-54 Years Old                                              2.162             1.637            3.799             2.119             1.578               3.697

 > 54 Years Old                                                  102               64             166                102                    54            156

 Total                                                        2.512             2.032            4.544             2.436             1.932               4.368


                                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                    2023 Annual Report                       141
Page 144
Number of Employees by Education Level


Table of Number of Employees by Education Level                                                  (in person)


                                                             2023                       2022
               Education Level
                                                Male         Female    Total    Male    Female   Total

 Non Strata                                          233       109      342      266      144      410

 S1                                             2.076         1.796    3.872    1.984    1.672   3.656

 S2                                                  198       127      325      183      116      299

 S3                                                    5          -        5       3         -        3

 Total                                          2.512         2.032    4.544    2.436    1.932   4.368




Number of Employees by Employment Status

Table of Number of Employees by Employment Status                                                (in person)


                                                               2023                      2022
               Employment Status
                                                     Male     Female    Total   Male    Female   Total

 Permanent employees                                 2.347     1.878    4.225   2.370    1.896   4.266

 Temporary employees                                  165       154      319       66       36     102

 Outsourcing                                         1.765      256     2.021   1.815      380   2.195

 Total                                               4.277     2.288    6.565   4.251    2.312   6.563




         PT Bank Pembangunan Daerah Jawa Timur Tbk
142      2023 Annual Report
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                                                                                                           COMPANY
                                                                                                            PROFILE




Shareholders
Composition
Table of Bank Jatim Shareholder Composition as of January 1, 2023

                                                                    Share Ownership Structure
                  Shareholders
                                            Number of Shares               Value (IDR)                Ownership

                                                   SERIES A SHARES

 Government of East Java Province               7.676.913.648            1.919.228.412.000               51,13%

 Surabaya City                                    319.243.457              79.810.864.250                 2,13%

 Malang City                                      108.635.999              27.158.999.750                 0,72%

 Madiun City                                      134.064.427              33.516.106.750                 0,89%

 Mojokerto                                         72.091.751              18.022.937.750                 0,48%

 Kediri City                                       14.208.273               3.552.068.250                 0,09%

 Probolinggo City                                  17.397.927               4.349.481.750                 0,12%

 Blitar City                                       16.987.084               4.246.771.000                 0,11%

 Pasuruan City                                    100.075.767              25.018.941.750                 0,67%

 Batu City                                         38.236.741               9.559.185.250                 0,25%

 Gresik Regency                                   220.213.170              55.053.292.500                 1,47%

 Malang Regency                                   253.635.445              63.408.861.250                 1,69%

 Mojokerto Regency                                 78.373.801              19.593.450.250                 0,52%

 Madiun Regency                                    32.660.478               8.165.119.500                 0,22%

 Kediri Regency                                   144.925.510              36.231.377.500                 0,97%

 Probolinggo Regency                              125.931.454              31.482.863.500                 0,84%

 Blitar Regency                                    39.496.395               9.874.098.750                 0,26%

 Pasuruan Regency                                  44.610.500              11.152.625.000                 0,30%

 Bojonegoro Regency                               300.288.632              75.072.158.000                 2,00%

 Magetan Regency                                   19.594.792               4.898.698.000                 0,13%

 Tulungagung Regency                               70.697.975              17.674.493.750                 0,47%

 Trenggalek Regency                                84.640.532              21.160.133.000                 0,56%

 Pacitan Regency                                   53.520.271              13.380.067.750                 0,36%

 Lamongan Regency                                 101.318.315              25.329.578.750                 0,67%

 Ponorogo Regency                                  23.555.596               5.888.899.000                 0,16%

 Banyuwangi Regency                               270.036.117              67.509.029.250                 1,80%

 Tuban Regency                                    217.418.404              54.354.601.000                 1,45%

 Jember Regency                                   111.866.875              27.966.718.750                 0,75%

 Ngawi Regency                                    215.763.995              53.940.998.750                 1,44%

 Jombang Regency                                   26.792.899               6.698.224.750                 0,18%

 Bondowoso Regency                                 87.207.357              21.801.839.250                 0,58%

 Lumajang Regency                                  67.206.045              16.801.511.250                 0,45%

 Sidoarjo Regency                                 370.155.850              92.538.962.500                 2,47%

 Situbondo Regency                                 76.374.593              19.093.648.250                 0,51%

 Nganjuk Regency                                   77.217.854              19.304.463.500                 0,51%




                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                2023 Annual Report   143
Page 146
                                                                           Share Ownership Structure
                 Shareholders
                                                Number of Shares                  Value (IDR)                          Ownership

 Pamekasan Regency                                        40.592.928              10.148.232.000                          0,27%

 Sumenep Regency                                         144.228.431              36.057.107.750                          0,96%

 Bangkalan Regency                                        36.793.459                 9.198.364.750                        0,25%

 Sampang Regency                                         101.175.235              25.293.808.750                          0,67%

                                                            SAHAM SERI B

 Public                                                3.081.350.100             770.337.525.000                         20,52%

 TOTAL                                                15.015.498.082           3.753.874.520.500                          100%



The composition of shareholders as of December 31, 2023 has not changed with the same composition as of January 1, 2023.



Composition of 20 Largest Shareholders

Table of Composition of the 20 Largest Shareholders of Bank Jatim as of January 1, 2023

                                                                       Number of
 No.                            Shareholders                                                         Status                Ownership
                                                                        Shares

  1       PT TASPEN (ASURANSI) - AFS                                   305.061.900        Limited Company                     9,90%

  2       PT MNC SEKURITAS                                             134.810.700        Individual Indonesia                4,38%

  3       CITIBANK LONDON S/A MUTUAL FUND EQEMERGING                   130.000.000        Institution - Foreign               4,22%
          DIVIDEND (UCITS)

  4       PT TASPEN                                                    109.442.800        Permanent Business Entities         3,55%

  5       PT YULIE SEKURITAS INDONESIA TBK                             103.283.026        Broker                              3,35%

  6       BBH LUXEMBOURG S/A FIDELITY FUNDS, SICAV-INDONESIA FD         73.442.300        Institution - Foreign               2,38%

  7       STATE STREET BANK-GOLDMAN SACHS FUNDS                         63.786.500        Institution - Foreign               2,07%

  8       PT KOREA INVESTMENT AND SEKURITAS INDONESIA                   57.573.900        Individual Indonesia                1,87%

  9       CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY - 16               49.000.000        Norway - Tax Treaty                     1,59%

  10      STATE STREET BANK-BERNSTEIN FUND,INC.- INTERNATIONAL          47.991.500        Institution - Foreign                   1,56%
          SMALL CAP PORTFOLIO

  11      BNYM RE ACADIAN EM MKTS SM ALL CAP EQ FD LLC-                 44.014.890        Institution - Foreign                   1,43%
          2039925167

  12      PT INDO PREMIER SEKURITAS                                     42.574.100        Individual Indonesia                    1,38%

  13      BNYM RE GOLDMAN SACHS TRUST-GS EM MAR EQ INS FD-              39.513.600        Institution - Foreign                   1,28%
          2039927833

  14      PT MIRAE ASSET SEKURITAS                                      35.881.800        Individual Indonesia                    1,16%

  15      CITIBANK NEW YORK S/A EMERGING MARKETS CORE EQUITY            31.858.200        United States of America -              1,03%
          PORTFOLIO OF DFA INV DIMENSIONS GRP INC.                                        Tax Treaty

  16      STATE STREET BANK-ISHARES MSCI INDONESIA ETF                  30.746.400        United States of America -              1,00%
                                                                                          Tax Treaty

  17      DZ PRIVATBANK S/A CH GALILEO ASIA FUND                        28.898.900        Institution - Foreign                   0,94%

  18      BNYM RE ENSIGN PEAK ADV, INC.-2039925380                      26.737.100        United States of America -              0,87%
                                                                                          Tax Treaty

  19      STATE STREET BANK-CALIFORNIA STATE TEACHERS                   24.239.300        United States of America -              0,79%
          RETIREMENT SYSTEM                                                               Tax Treaty

  20      CITIBANK NEW YORK S/A GEORGETOWN EMERGING                     23.523.900        Institution - Foreign                   0,76%
          MARKETS FUND SPC LIMITED-SIERRA DORADA FUND SP




          PT Bank Pembangunan Daerah Jawa Timur Tbk
144       2023 Annual Report
Page 147
                                                                                                                  COMPANY
                                                                                                                   PROFILE




Table of Composition of the 20 Largest Shareholders of Bank Jatim as of December 31, 2023

                                                                       Number of
  No.                              Shareholders                                               Status               Ownership
                                                                        Shares

   1       PT TASPEN (ASURANSI) - AFS                                 305.061.900     Limited Company                   9,90%

   2       CITIBANK LONDON S/A MUTUAL FUND EQ EMERGING DIVIDEND       130.000.000     Institution - Foreign             4,22%
           (UCITS)

   3       PT MNC SEKURITAS                                           116.000.000     Individual Indonesia              3,76%

   4       PT Taspen                                                  109.442.800     Limited company                   3,55%

   5       BNYM RE ACADIAN EM MKTS SM ALL CAP EQ FD LLC-2039925167     44.014.890     Institution - Foreign             1,43%

   6       STATE STREET BANK-BERNSTEIN FUND,INC.- INTERNATIONAL        43.073.500     Institution - Foreign             1,40%
           SMALL CAP PORTFOLIO

   7       STATE STREET BANK-GOLDMAN SACHS FUNDS                       38.700.300     Institution - Foreign             1,26%

   8       PT INDO PREMIER SEKURITAS                                   35.281.800     Individual Indonesia              1,15%

   9       PT MIRAE ASSET SEKURITAS INDONESIA                          32.306.900     Individual Indonesia              1,05%

  10       CITIBANK NEW YORK S/A EMERGING MARKETS CORE EQUITY          31.858.200     Individual Indonesia              1,03%
           PORTFOLIO OF DFA INV DIMENSIONS GRP INC.

  11       CITIBANK NEW YORK S/A GEORGETOWN EMERGING MARKETS           31.386.200     Institution - Foreign             1,02%
           FUND SPC LIMITED-SIERRA DORADA FUND SP

  12       PANIN SEKURITAS, PT                                         31.023.500     Institution - Foreign             1,01%

  13       DZ PRIVATBANK S/A CH GALILEO ASIA FUND                      28.898.900     Limited company                   0,94%

  14       CITIBANK NEW YORK S/A GOVERNMENT OF NORWAY - 16             27.000.000     Institution - Foreign             0,88%

  15       BNYM RE ENSIGN PEAK ADV, INC.                               26.737.100     Institution - Foreign             0,87%

  16       STATE STREET BANK-ISHARES MSCI INDONESIA ETF                25.583.100     Institution - Foreign             0,83%

  17       PT CEALMI KHIEZT INDONESIA                                  25.170.400     Institution - Foreign             0,82%

  18       BNYM RE GOLDMAN SACHS TRUST-GS EM MAR EQ INS FD-            22.175.900     Limited company                   0,72%
           2039927833

  19       JPMCB NA RE - BLACKROCK INST TR CO N A INVESTMENT FDS       20.382.800     Institution - Foreign             0,66%
           FOR EMPLOYEE BENEFIT TRUSTS

  20       PT TRIMEGAH SEKURITAS INDONESIA TBK                         20.000.000     Institution - Foreign             0,65%




Composition of Shareholders 5% or More

Table of Shareholder Composition of 5% or More Bank Jatim as of January 1, 2023

                              Shareholders                             Number of Shares                       Ownership

 Pemerintah Daerah Tingkat I Provinsi Jawa Timur                          7.676.913.648                        51,13%


The composition of shareholders of 5% or more as of December 31, 2023 does not change with the same composition as on January
1, 2023.




                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                  2023 Annual Report            145
Page 148
Composition of Public Shareholders Less than 5%

Table of Composition of Public Shareholders of Less than 5% of Bank Jatim as of January 1, 2023

                                                      Number of
                Public Share Ownership                                     Number of Shares       Ownership
                                                     Shareholders

                                                         LOCAL

 Individual                                              54.693                1.404.961.407        9,357%

 Regional government                                         39               11.934.147.982       79,479%

 Foundation                                                   2                    1.257.900        0,008%

 Pension Fund                                                13                  422.439.100        2,813%

 Insurance                                                    3                   16.139.100        0,107%

 Bank                                                         1                      727.500        0,005%

 Limited Company                                             53                  186.270.109        1,241%

 Mutual Fund                                                  6                   16.125.996        0,107%

 Sub Total                                               54.810              13.982.069.094        93,118%

                                                        FOREIGN

 Individual                                                  14                    1.051.100        0,007%

 Foreign Business Entity                                    161                1.032.377.888        6,875%

 Sub Total                                                 175                 1.033.428.988        6,882%

 TOTAL                                                   54.985              15.015.498.082          100%




Table of Composition of Public Shareholders Less than 5% of Bank Jatim as of December 31, 2023

                                                      Number of
                Public Share Ownership                                     Number of Shares       Ownership
                                                     Shareholders

                                                         LOCAL

 Individual                                               59.761                1.684613.407       11,219%

 Regional government                                         39               11.934.147.982       79,479%

 Foundation                                                   1                    1.360.500        0,009%

 Pension Fund                                                11                    7.993.200        0,053%

 Insurance                                                    3                   11.987.400        0,080%

 Bank                                                         1                       23.000           0%

 Limited Company                                             56                  523.468.596        3,486%

 Mutual Fund                                                  5                   18.864.411        0,126%

 Sub Total                                                59.844               2.248.336.514       94,452%

                                                        FOREIGN

 Individual                                                  37                    1.843.900        0,012%

 Foreign Business Entity                                    151                  831.195.686        5,535%

 Sub Total                                                  188                 833.039.586         5,547%

 TOTAL                                                    60.065             15.015.498.082          100%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
146      2023 Annual Report
Page 149
                                                                                                                            COMPANY
                                                                                                                             PROFILE




Share Ownership of Directors and Board of Commissioners

Table of Share Ownership of the Directors and Board of Commissioners of Bank Jatim as of January 1, 2023

  No.              Name                                    Position                       Number of Shares             Ownership

                                                                   BOARD OF DIRECTORS

   1.     Busrul Iman                 President Director                                        1.946.500                0,0129633%

   2.     Tonny Prasetyo              Director of Operations                                      628.500                0,0041857%

   4.     Edi Masrianto               Director of Finance, Treasury & Global Services                      -                          -

   5.     R. Arief Wicaksono          Director of Micro, Retail & Medium                          126.300                0,0008411%

   6.     Zulhelfi Abidin             Director of IT & Digital                                             -                          -

   7.     Eko Susetyono               Director of Risk Management                                          -                          -

                                                              BOARD OF COMMISSIONERS

   1.     Suprajarto  *
                                      President Commissioner                                               -                          -

   2.     Muhammad Mas’ud             Independent Commissioner                                             -                          -

   3.     Candra Fajri Ananda         Independent Commissioner                                             -                          -

   4.     Sumaryono                   Independent Commissioner                                             -                          -

   5.     Heru Tjahjono   **
                                      Commissioner                                                274.200                0,0018261%

 TOTAL                                                                                         2.975.500                0,0198162 %

* Stopped serving since December 19, 2023
** Stopped serving since April 12, 2023



Table of Share Ownership of the Directors and Board of Commissioners of Bank Jatim as of December 31, 2023

  No.               Name                                     Position                     Number of Shares             Ownership

                                                                   BOARD OF DIRECTORS

   1.     Busrul Iman                   President Director                                     2.958.900                 0,0197056%

   2.     Tonny Prasetyo                Director of Compliance                                 1.067.400                 0,0071087%

   3.     Edi Masrianto                 Director of Finance, Treasury & Global Services          327.600                 0,0021817%

   4.     R. Arief Wicaksono            Director of Micro, Retail & Medium                       728.200                 0,0048497%

   5.     Zulhelfi Abidin               Director of IT & Digital                                  24.200                 0,0001612%

   6.     Eko Susetyono                 Director of Risk Management                              124.100                 0,0008265%

   7.     Arif Suhirman                 Director of Operations                                         -                           -

                                                               BOARD OF COMMISSIONERS

   1.     Suprajarto*                   President Commissioner                                   191.000                 0,0012722%

   2.     Muhammad Mas’ud               Independent Commissioner                                       -                           -

   3.     Candra Fajri Ananda           Independent Commissioner                                       -                           -

   4.     Sumaryono                     Independent Commissioner                                       -                           -

   5.     Adhy Karyono                  Commissioner                                                   -                           -

 TOTAL                                                                                         5.421.400                0,0361054%

* Stopped serving since December 19, 2023


As of December 31, 2023, the Board of Commissioners and Board of Directors of Bank Jatim do not have indirect share ownership.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report       147
Page 150
Shares Ownership of the Senior Management

Until December 31 2023, Bank Jatim Senior Management does not have direct and indirect ownership of Bank shares.



Classification of Shareholders

Table of Classification of Bank Jatim Shareholders as of December 31, 2023

          Share Ownership                   Number of Shareholders           Number of Shares (sheet)             Ownership

 Local Institution                                     116                          12.497.845.089                  83,233%

 Foreign Institution                                   151                             831.195.686                    5,536%

 Local Individual                                    59.767                           1.684.639.407                   11,22%

 Foreign Individual                                     32                               1.817.900                    0,012%

 Total                                              60.065                         15.015.498.082                      100%




Main and Controlling
Shareholders

The majority share ownership of Bank Jatim is owned by the East Java Provincial
                                                                                           Goverment of East Java Province
Government, with 51.13%. Thus, the Main and Controlling Shareholders of Bank
                                                                                                     (51,13%)
Jatim are the East Java Provincial Government. The main shareholder and controlling
shareholder do not have indirect share ownership.




List of Subsidiaries, Associated Entities
and Joint Venture Company

As of December 31, 2023, Bank Jatim does not have any Subsidiaries, Associated Entities and joint venture companies, so that there
is no information available regarding: Names of subsidiaries, associates and joint venture companies, Percentage of share ownership;
Description of the line of business and information on the operating status of subsidiaries, associates and joint venture companies
(already operating or not yet operating).




         PT Bank Pembangunan Daerah Jawa Timur Tbk
148      2023 Annual Report
Page 151
                                                                                                                       COMPANY
                                                                                                                        PROFILE




Company Group
Structure

   The Government of East Java         The Local Government of all
                                                                                                  Public
            province                    districts/ cities inEast Java
                                                                                                 (20,52%)
             (51,13%)                            (28,35%)




                        Series A Share Holders                                            Series B Share Holders




                                      PT Bank Pembangunan Daerah Jawa Timur Tbk



As of December 31, 2023, Bank Jatim does not have any Subsidiaries, Associated Entities, Joint Ventures, and Special Purpose
Vehicles (SPV).




Information
of Bank Business Group

As of December 2023, Bank Jatim has not become Bank Busniess Group. Therefore, there is no information on the structure of
the Bank Business Group, management linkage structure in the Bank Business Group and shareholders acting on behalf of other
shareholders.




Chronology
of Share Issuance

Bank Jatim issues shares consisting of Series A Shares which are owned by the East Java Provincial Government, and Series B Shares
which are offered to the public.


INITIAL PUBLIC OFFERING

On July 12, 2012, Bank Jatim conducted an Initial Public                shares (Series B) at an offering price of IDR430 per share, so
Offering (IPO) by offering new shares of 2,983,537,000 ordinary         that the total number of shares to be listed on the Indonesia




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report     149
Page 152
Stock Exchange amounted to 14,768,508,132 (fourteen billion                 The MESOP Phase I Program was implemented from August
seven hundred sixty-eight million five hundred eight million                1, 2016 to November 13, 2016, February 1, 2017 to March 13,
thousand one hundred thirty-two) shares or 99% (ninety-nine                 2017, August 1, 2017 to November 13, 2017, February 1, 2018
percent) of the total issued and fully paid-up capital after                to March 15, 2018, August 1, 2019 to September 11, 2019.
the Public Offering. Of the total shares offered, as much as                The MESOP Phase II 2017 Program was implemented from
10% (ten percent) will be allocated to employees and the                    August 1, 2017 to November 13, 2017, February 1, 2018 to
Company’s Management through the ESA (Employee Stock                        March 15, 2018, February 1, 2019 to March 18, 2019, August
Allocation) Program. Bank Jatim has implemented the MESOP                   1, 2019 to September 11, 2019. The MESOP Phase III Program
(Management Employee Stock Option Plans) program from                       was implemented from August 1, 2018 to September 14,
2016 to 2020 with new shares (Series B) of 13,127,500 shares.               2018, February 1, 2019 to March 18, 2019, August 1, 2019 to
So that the total Paidin Capital on December 31, 2020, will be              September 11, 2019.
IDR3,753,874,520,500 or 15,015,498.082 shares.
                                                                            NAME OF THE EXCHANGE WHERE THE COMPANY’S
In connection with the initial public offering, the Bank                    SHARES ARE LISTED
implemented the Employee Stock Allocation (ESA) program by                  All shares of Bank Jatim have been listed on the Indonesia
allocating a maximum of 10% of the shares offered and issuing               Stock Exchange.
as many stock options as possible for the Management and
Employee Stock Option Plan (MESOP) program 0.71% of the
total issued and fully paid capital after the initial public offering.




Table of Chronology of Bank Jatim Shares Issuance


                                                                                              Nominal Value           Offer Price
  No.           Period                  Information                       Stock
                                                                                                 (IDR)                   (IDR)


   1     Before IPO             -                                -                                  -                      -

   2     2012                   Initial Public Offering          Series B Shares                   250                    430

   3     2016                   MESOP Exercise II 2016           Series B Shares                   250                    409

   4     2017                   MESOP Exercise I 2017            Series B Shares                   250                    450

   5                                                             Series B Shares                   250                    450
                                MESOP Exercise II 2017
                                                                                                                          409

   6     2018                                                    Series B Shares                   250                    450
                                MESOP Exercise I 2018
                                                                                                                          409

   7                                                             Series B Shares                   250                    409
                                MESOP Exercise II 2018
                                                                                                                          599

   8     2019                                                    Series B Shares                   250                    409
                                MESOP Exercise I 2019
                                                                                                                          599

   9                                                             Series B Shares                   250                    450

                                MESOP Exercise II 2019                                                                    409

                                                                                                                          599

   10    2020                                                    Series B Shares                   250                    409
                                MESOP Exercise I 2020
                                                                                                                          599




        PT Bank Pembangunan Daerah Jawa Timur Tbk
150     2023 Annual Report
Page 153
                                                                                                                  COMPANY
                                                                                                                   PROFILE




Chronology of Issuance
and/or Listing of Bond
As of December 31, 2023, Bank Jatim has not issued bonds, so there is no information on the chronology of the issuance and/or
listing of bonds.




Chronology of Issuance
and/or Listing of Other Securities

As of December 31, 2023, Bank Jatim has not issued other securities, so there is no information on the chronology of the issuance
and/or recording of other securities..




                                                                     Issued and Paid Up Capital
     Number of Shares Issued
            (share)                      Number of shares               Total value Nominal              Total Bid Price
                                             (share)                            (IDR)                         (IDR)

 -                                 -                             -                                -

           2.983.537.000                   14.917.684.982                  3.729.421.245.500             1.282.920.910.000

              27.372.600                   14.945.057.582                  3.736.264.395.500                11.195.393.400

               1.241.600                   14.946.299.182                  3.736.574.795.500                   558.720.000

               1.800.500                   14.974.591.382                  3.743.647.845.500                   810.225.000

              26.491.700                                                                                    10.835.105.300

                297.700                    14.975.852.582                  3.743.963.145.500                   133.965.000

                963.500                                                                                        394.071.500

                365.400                    14.978.134.982                  3.744.533.745.500                   149.448.600

               1.917.000                                                                                     1.148.283.000

                    48.500                 14.993.772.982                  3.748.443.245.500                    19.836.500

              15.589.500                                                                                     9.338.110.500

               1.062.100                   15.002.370.582                  3.750.592.645.500                   477.945.000

                741.500                                                                                        303.273.500

               6.794.000                                                                                     4.069.606.000

               3.163.900                   15.015.498.082                  3.753.874.520.500                 1.294.035.100

               9.963.600                                                                                     5.968.196.400




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report    151
Page 154
Information on Using the Services
of Public Accounting
and Public Accounting Firm

  Public Accountant Firm Name     Kantor Akuntan Publik (KAP) Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan

       Association Network        PKF International

 Public Accountant Firm Address   UOB Plaza Lantai 30 dan 42
                                  Jl. M.H. Thamrin Lot 8 -10, Jakarta Pusat
                                  Tel   : (021) 29932121 (hunting)
                                  Fax : (021) 29932113
                                  Email : jkt-office@pkfhadiwinata.com

      Public Accountant Name      Ary Daniel Hartanto

      KAP Assignment Period       5th period

      AP Assignment Period        3rd period

          Audit Services          Public Accountant Services for Examination of the Annual Financial Statements of PT Bank Pembangunan
                                  Daerah Jawa Timur Tbk ended on December 31, 2022, including Sharia Business Units Included General
                                  Audit of Financial Statements, Examination of Financial Statements, Examination of Financial Statements, and
                                  Review of Reports.

       Non - Audit Services       There are non non-audit services

            Audit Fee             Rp1.175.000.000

          Non-Audit Fee           -




Supporting Institutions
and/or Professions

                                  PT PEMERINGKAT EFEK INDONESIA (PEFINDO)
                                  Panin Tower-Senayan City, 17th floor
                                  Jl. Asia Afrika Lot 19 Jakarta 12170
                                  Telp : (021) 727 82380
                                  Fax : (021) 727 82370
                                  Web : www.pefindo.com

                                  Services rendered : Issuing ratings for debt securities issuance
 SECURITIES RATING AGENCY         Assignment Period : Fiscal Year 2022

                                  KJPP SUSAN WIDJOJO & REKAN
                                  Menara Batavia, lantai 28
                                  Jl. KH Mas Mansyur Kav. 120, Jakarta 10220
                                  Telp: (021) 5795 0155

                                  Services rendered     : Issuing ratings for debt securities issuance
                                  Assignment Period : Tahun Buku 2022




        PT Bank Pembangunan Daerah Jawa Timur Tbk
152     2023 Annual Report
Page 155
                                                                                                                           COMPANY
                                                                                                                            PROFILE




                            PT DATINDO ENTRYCOM
                            Jl. Hayam Wuruk No. 28, Jakarta 10120
SECURITIES ADMINISTRATION   Telp: (021) 3508077
         BUREAU             Fax: (021) 3508078

                            Services provided   : Record ownership of Securities and distribution of rights related to Securities
                            Assignment Period : Fiscal Year 2023




                            PT BAHANA SEKURITAS
                            Graha Niaga, Lantai 19,
                            Jl. Jend. Sudirman Kav. 58, Jakarta 12190
                            Telp : (021) 250 5678
                            Fax : (021) 250 5087

                            Services provided   : Guarantee the sale of securities and payment of the total value of the securities issued
                                                  to the issuer
                            Assignment Period : Fiscal Yea 2022
  SECURITIES GUARANTEE
                            PT MANDIRI SEKURITAS
                            Plaza Mandiri, Lantai 28-29
                            Jl. Jend. Gatot Subroto Kav. 36-38, Jakarta 12190 Indonesia
                            Telp : (021) 526 5678
                            Fax : (021) 526 505

                            Services provided   : Guarantee the sale of securities and payment of the total value of the securities issued
                                                  to the issuer
                            Assigment Period    : Fiscal Year 2023




                            PT KUSTODIAN SENTRAL EFEK INDONESIA
                            Gedung Bursa Efek Indonesia, Tower I, Lantai 5
                            Jl. Jendral Sudirman Kav. 52– 53, Jakarta 12190
                            Telp : (021) 515 2855
       CUSTODIAN            Fax : (021) 5299 1199
                            Web : www.ksei.co.id

                            Services provided   : Collective depository of assets such as shares, bonds, as well as carrying out client
                                                  administration tasks.
                            Assignment Period : Fiscal Year 2023




                            SITARESMI PUSPADEWI SUBIANTO, S.H.
                            Jl. Kebon rojo No. 2 CC, Surabaya 60175, Indonesia
                            Telp : (031) 351 1282, 352 1285, 353 2822
         NOTARY             Fax : (031) 352 2311

                            Services provided   : Membuat Make deed of summary of minutes of GMS and deed of minutes of GMS.
                            Assignment Period : Fiscal Year 2022




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report              153
Page 156
Awards
and Certification

                                                       AWARDS




             Award Name:                                Award Name:                                Award Name:
 Rank I in the 2023 Engagement Index        Rank I in the 2023 Satisfaction Index      Rank I in the 2023 Customer Service
                Event:                                     Event:                                Satisfaction Index
 6th Infobank MRI Satisfaction, Loyalty,    6th Infobank MRI Satisfaction, Loyalty,                   Event:
Engagement and Corporate Reputation        Engagement and Corporate Reputation         6th Infobank MRI Satisfaction, Loyalty,
              Award 2023                                 Award 2023                   Engagement and Corporate Reputation
              Organizer:                                 Organizer:                                 Award 2023
               Infobank                                   Infobank                                  Organizer:
                Date:                                      Date:                                     Infobank
           January 25, 2023                           January 25, 2023                                Date:
                                                                                                 January 25, 2023




            Award Name:                                 Award Name:                                Award Name:
 Rank I Satisfaction Index 2023 Teller       Rank I Satisfaction Index 2023 ATM         Rank I in the 2023 Mobile Banking
                Event:                                     Event:                                Satisfaction Index
 6th Infobank MRI Satisfaction, Loyalty,    6th Infobank MRI Satisfaction, Loyalty,                   Event:
Engagement and Corporate Reputation        Engagement and Corporate Reputation         6th Infobank MRI Satisfaction, Loyalty,
              Award 2023                                 Award 2023                   Engagement and Corporate Reputation
              Organizer:                                 Organizer:                                 Award 2023
               Infobank                                   Infobank                                  Organizer:
                Date:                                      Date:                                     Infobank
           January 25, 2023                           January 25, 2023                                Date:
                                                                                                 January 25, 2023




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                COMPANY
                                                                                                                 PROFILE




             Award Name:                               Award Name:                                Award Name:
 Indonesia Best BUMD Award 2023 in            Best Public Relation in Company          Rank A in 2021 Sustainability Report
Business Strategy to Optimizing Banking   Strategy on Improving Banking Services                      Event:
         Services category BPD               and Supporting Local Government         Hasil Studi Laporan Keberlanjutan Tahun
                Event:                        Program kategori Regional Bank          2021 Perusahaan Publik di Indonesia
  Indonesia Best BUMD Awards 2023                         Event:                                   Organizer:
             Organizer:                   Indonesia Public Relation Awards (IPRA)     Foundation For International Human
            Warta Ekonomi                                  2023                       Rights Reporting Standards (FIHRRST)
                Date:                                 Organizer:                                    Date:
           January 31, 2023                          Warta Ekonomi                               March 6, 2023
                                                         Date:
                                                    February 24, 2023




           Award Name:                                Award Name:                                Award Name:
 PT Bank Pembangunan Daerah Jawa              The Best Digital Transformation          The Best Digital Technology Project
 Timur Tbk Category Best Companies              (Local Banking Industries)                  (Local Banking Industries)
               Event:                                     Event:                                     Event:
       Obsession Awards 2023              Digital Technology & Innovation Awards     Digital Technology & Innovation Awards
             Organizer:                                    2023                                       2023
    Obsession Media Group (OMG)                         Organizer:                                 Organizer:
               Date:                                      Itech                                      Itech
            March 8, 2023                                Date:                                       Date:
                                                     March 29, 2023                              March 29, 2023




                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                  2023 Annual Report    155
Page 158
           Award Name:                            Award Name:                              Award Name:
 The Best Chief Information & Digital      TOP BUMD 2023 #BPD - Bintang 5         TOP CEO BUMD 2023 - Busrul Iman -
         Officer Of The Year                             Event:                          President director
      (Local Banking Industries)                  Top BUMD Award 2023                          Event:
                Event:                                 Organizer:                       Top BUMD Award 2023
Digital Technology & Innovation Awards                Top Business                           Organizer:
                 2023                                                                       Top Business
                                                         Date:
              Organizer:                              April 5, 2023                            Date:
                Itech                                                                       April 5, 2023
               Date:
           March 29, 2023




           Award Name:                                Award Name:                           Award Name:
      Export Supporting BUMD                  Best Leader for Sustainability         Emiten Kategori High Dividen
                Event:                      Acceleration Through Synergy and                    Event:
 East Java International Trade Festival     Epansion of Regionl Digitalization       Launching Indeks Tempo-IDN
              Organizer:                                 Event:                              Financials 52
 Dinas Perindustrian dan Perdagangan      Indonesia Financial Top Leader Awards              Organizer:
         Provinsi Jawa Timur                              2023                                Tempo
               Date:                                  Organizer:                                Date:
            May 30, 2023                             Warta Ekonomi                          June 23, 2023
                                                         Date:
                                                      May 31, 2023




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156   2023 Annual Report
Page 159
                                                                                                                 COMPANY
                                                                                                                  PROFILE




              Award Name:                               Award Name:                                 Award Name:
  Best Bank 2023 For the Provision of       The Best Financial Performance Bank in      Excellent Financial Performance Bank
Facilities and Market Access for MSME’s                 2022 (KBMI 2)                                  in 2022
                Event:                                      Event:                                      Event:
        Best Bank Awards 2023                     28th Infobank Award 2023                    28th Infobank Award 2023
             Organizer:                                  Organizer:                                 Organizer:
            Warta Ekonomi                                 Infobank                                   Infobank
                 Date:                                     Date:                                      Date:
             July 24, 2023                             August 25, 2023                            August 25, 2023




            Award Name:                                Award Name:                                Award Name:
    Best BUMD Digital Innovation            The Most Comitted GRC Leader 2023                 TOP GRC Awards #star 5
“Excellent Award for Strategic Initiative       “ Busrul Iman Main Director “                        Event:
            Jconnect Pro”                                Event:                                TOP GRC Awards 2023
                Event:                             TOP GRC Awards 2023                               Organizer:
        Indonesia Awards 2023                            Organizer:                                 Top Business
              Organizer:                                Top Business                                  Date:
                Inews                                     Date:                                  September 6, 2023
               Date:                                 September 6, 2023
           August 31, 2023




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report   157
Page 160
             Award Name:                                Award Name:                                Award Name:
   Top 50 Best Issuers with Medium            ICAII Bank Jatim category Product            Rank III BPD Large Category
Capitalization (MidCap PLCs) in the Best   Innovation & Business Model 5 pillars of                Event:
       Financial Sector Category                       Transformation                          BUMD Awards 2023
              Event:                                      Event:                                 Organizer:
  Corporate Governance Conference          IDX Channel nuegerah Inovasi Indonesia          Kementerian Dalam Negeri
            Award 2023                                    (ICAII)                             Republik Indonesia
              Organizer:                                 Organizer:                                 Date:
   Indonesia Institute for Corporate                    IDX Channel                           September 29, 2023
         Directorship (IICD)                              Date:
               Date:                                September 20, 2023
         September 18, 2023




             Award Name:                               Award Name:                               Award Name:
Best Chief Financial Officer (CFO) 2023                 Gold Rank                     Most Expansive Regional Bank in Micro
                Event:                                     Event:                               & SME Lending
 Orchestrating Financial Resources &       The Asia Sustainability Reporting Rating                 Event:
 Strategy to achieve top performance                      (ASRRAT)                    Road to CNBC Indonesia Awards 2023
              Organizer:                                 Organizer:                               Organizer:
              SWA Media                    National Center for Corporate Reporting               CNBC Awards
               Date:                                       (NCCR)                                   Date:
           October 4, 2023                                Date:                                November 10, 2023
                                                     November 6, 2023




       PT Bank Pembangunan Daerah Jawa Timur Tbk
158    2023 Annual Report
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                                                                                                                 COMPANY
                                                                                                                  PROFILE




            Award Name:                                  Award Name:                               Award Name:
The Best Innovation in Regional Banking         1st place in the BUMD Financial              Commitment to the Best MSME
               Event:                                  Company category                             Development
           CSA Awards 2023                                Event:                                        Event:
                Organizer:                    Annual Report Awards (ARA) 2022               Anugerah Syariah Republika 2023
Asosiasi Analis Efek Indonesia (AAEI) dan                Organizer:                                   Organizer:
            CSA Community                         Bursa Efek Indonesia (BEI)                        Republika Group
               Date:                                      Date:                                        Date:
          November 23, 2023                          November 27, 2023                            November 30, 2023




            Award Name:                                  Award Name:                                 Award Name:
 Top Leader on Digital Implementation       Top Digital Implementation 2023 #star5          Regional Bank with Simultaneous
         2023 “Busrul Iman”                               Event:                          Consumer Credit Agreements with the
               Event:                             TOP Digital Awards 2023                            Most Debtors
       TOP Digital Awards 2023                          Organizer:                                      Event:
             Organizer:                               Majalah IT Works                        Akad Massal Kredit Konsumer
           Majalah IT Works                                                                           Bank Jatim
                                                           Date:
                Date:                                 December 4, 2023                               Organizer:
           December 4, 2023                                                                         MURI Indonesia
                                                                                                       Date:
                                                                                                  December 12, 2023




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report    159
Page 162
           Award Name:                                  Award Name:                                  Award Name:
        Umrah Reward BPKH                   BPS BPIH 2nd best Hajj registrant in 2023       BPS BPIH Sustainable Finance 2023
        kategori BPD 5th best                               Event:                                       3rd best
              Event:                                   BPKH Awards 2023                                   Event:
         BPKH Awards 2023                               Organizer:                                   BPKH Awards 2023
            Organizer:                      Badan Pengelola Keuangan Haji (BPKH)                      Organizer:
Badan Pengelola Keuangan Haji (BPKH)                        Date:                         Badan Pengelola Keuangan Haji (BPKH)
             Date:                                     December 15, 2023                                 Date:
        December 15, 2023                                                                           December 15, 2023




                                                      CERTIFICATION




                     Certification Type:                                                  Certification Type:
               Sertifikat ISO/IEC 27001:2022                                               ISO 37001:2016
          (International Standard for Information                                 Anti-Bribery Management System
              Security Management Systems)                                                Validation:
                      Validation:                                            December 18, 2023 – December 17, 2026
          October 21, 2022 – October 20, 2025                                           Certification Recipient:
                 Certification Recipient:                                                      Bank Jatim
                        Bank Jatim                                                        Dikeluarkan Oleh:
                       Issued by:                                                       PT TUV Nord Indonesia
       Lembaga Sertifikasi Bureau Veritas Indonesia




      PT Bank Pembangunan Daerah Jawa Timur Tbk
160   2023 Annual Report
Page 163
                                                                                                                            COMPANY
                                                                                                                             PROFILE




Information Available
on the Website




The availability of information on website refers to the Regulation of OJK No. 8/ POJK.04/2015 regarding Website of Issuers or
Public Companies. Thus, Bank Jatim has provided various key information on its official website, such as information on shareholders,
organizational structure, financial performance analysis, as well as profiles of Board of Commissioners and Board of Directors. In
addition, the Bank’s website displays the following information;


YOUR NEEDS                                                                  MSME PARTNER

Contains all information on customer and community needs                    Contains information on MSME Partners of Bank Jatim
which include Savings, Financing, Business, Sharia, Services,               accessible by the public and the Bank’s customers.
Investor Relations, Corporate Governance, Bank Jatim Peduli,
Interest Rates, and Information.                                            INTERNET BANKING
                                                                            Contains information on Bank Jatim’s Internet Banking usage
PROFILE                                                                     guide and Internet Banking Portal.
Contains information on Bank’s Profile, Management, and
Awards.                                                                     ONLINE REGISTRATION
                                                                            Contains information on MSME Partners of Bank Jatim
CAREER                                                                      accessible by the public and the Bank’s customers.
Contains information on Career Management and Information
on Recruitment.



                                                 ARA Criteria                                                       Description

 Shareholder information up to individual final owners                                                                Available

 Contents of the Code of Conduct                                                                                      Available

 Information on the General Meeting of Shareholders (GMS) at least includes the material for the agenda dis-          Available
 cussed in the GMS, summary of the minutes of the GMS, and important date information, namely the date of
 the announcement of the GMS, the date of the sum-mons for the GMS, the date of the GMS, the date of the
 summary of the minutes of the GMS was announced

 Separate annual financial statements (last 5 years)                                                                  Available

 Profile of the Board of Commissioners and Directors                                                                  Available

 Charter of the Board of Commissioners, Board of Direc-tors, Committees, and the Internal Audit Unit                  Available



                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                2023 Annual Report   161
Page 164
MANAGEMENT
DISCUSSION
AND ANALYSIS
of Bank
Performance



      PT Bank Pembangunan Daerah Jawa Timur Tbk
162   2023 Annual Report
Page 165
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   163
Page 166
Economic
Review




Global Economic Analysis

Until January 2024, official data regarding the extent of world      Energy commodity prices were on a positive trend, though they
economic growth has not been conclusively provided yet by            were lower than 2022. Additionally, agricultural commodity
various sources. However, in its Quarter III-2023 Monetary           prices were still sloping, and metal base prices were varied, as
Policy Report, Bank Indonesia predicted economic growth              well as precious metal prices were strengthening.
in 2023 of 2.9%. The Quarter III-2023 Indonesian and World
Economic Development Report by Bappenas stated that the              In most countries, central banks tended to maintain their
global economic recovery tends to retard, which is reflected         interest rates as inflation subsides. The Federal Reserve held
in the unequal speed of global economic growth in Quarter            the rate of increase in the Fed Funds Rate (FFR) interest rate at
III-2023 and influenced by, such as, tight financial conditions,     a range of 5.25%-5.50% throughout Quarter III-2023, which was
vulnerable trade growth, lower optimism in the business aspect       the highest level in the last 22 years. This policy was stipulated
and consumers, escalated geopolitical tensions after the Russia-     by considering the fluctuation in inflation since the Covid-19
Ukraine war, the development of the Palestine-Israel conflict,       lockdown, which had sharply declined from an annual rate of
the impact of tightening monetary policy, and extreme weather.       9.1% in June 2023 to 3.7% in September 2023. However, this
Further, the United States economy grew by 2.9% (yoy); China         inflation rate was still above the Fed’s target of 2% in the mid of
developed 4.9% (yoy); Japan’s economy retarded 1.2% (yoy);           the continued price increasing signal.
South Korea increased 1.4% (yoy); and Singapore extended 1,
1% (yoy). Most countries’ central banks inclined to maintain their
interest rates, which was in accordance with relieving inflation.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
164     2023 Annual Report
Page 167
                                                                                                   MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                                OF BANK PERFORMANCE




The following is reference of benchmark interest rates in several BRICS, ASEAN-5 countries, and developed countries.


Table of Benchmark Interest Rates in Several Countries
                                                                                                                                                      (in %)


                                        Country                                             July                  August               September

 BRAZIL, RUSSIA, INDIA, CHINA, SOUTH AFRICA (BRICS)
 Brazil                                                                                    13.75                   13.25                   12.75
 Russia                                                                                      8.50                  12.00                   13.00
 India                                                                                       6.50                    6.50                    6.50
 China/Tiongkok                                                                              3.55                    3.45                    3.45
 South Africa                                                                                8.25                    8.25                    8.25
 ASSOCIATION OF SOUTHEAST ASIAN NATIONS (ASEAN) 5
 Indonesia                                                                                   5.75                    5.75                    5.75
 Thailand                                                                                    2.00                    2.25                    2.50
 Phillipines                                                                                 6.25                    6.25                    6.25
 Malaysia                                                                                    3.00                    3.00                    3.00
 Vietnam                                                                                     4.50                    4.00                    4.50
 DEVELOPING COUNTRY
 United States of America                                                              5.25-5.50               5.25-5.50               5.25-5.50
 Japan                                                                                       (0.1)                   (0.1)                   (0.1)
 South Korea                                                                                 3.50                    3.50                    3.50

Source: CEIC, People’s Bank of China (PBoC)



Japan maintained its relaxed monetary policy with unchangingly                 resilience of the labor market in many countries were the reasons
negative interest rates at -0.1%, viewing the highest uncertainty              for Banco Central do Brasil to lower its interest rates. Brazil’s interest
over the domestic and global growth prospects. The Bank of                     rate was at 12.75% at the end of Quarter III-2023.
Korea also did the same by maintaining its stable benchmark
interest rates at 3.5% for attempting to limit consumer inflation              Then, China reduced its one-year interest rate to 3.45% in Quarter
and household debt, while considering increasing risks to                      III-2023 in the mid of worsening constraints of property sector,
economic growth prospects.                                                     though many measures of stimulus had been taken by the Chinese
                                                                               government. ASEAN-5 countries kept their unaffected benchmark
While, Russia aggressively raised its interest rate in Quarter III-2023.       interest rates along Quarter III-2023, excluding for Thailand.
The increase in August reached 350 bps from 8.5% to 12.0%. The                 Thailand outstretched its interest rates twice by 25 bps, respectively,
decision of the Russian central bank was taken to maintain the falling         and was at the level of 2.50% in Quarter III-2023. The central bank
value of the Ruble and form monetary conditions and dynamics of                addressed that current interest rates have reached a neutral level
domestic demand to return inflation to 4% in 2024. Furthermore,                and are appropriate to support long-term sustainable growth in
the Russian central bank raised its interest rates again by 100 bps in         Southeast Asia’s second largest economy country
Quarter III-2023 to 13%.
                                                                               Source:
                                                                               - Monetary Policy Report Quarter III-2023, Bank Indonesia, October 2023
Brazil decisively cut its Selic interest rate twice in Quarter III-2023 with   - World Economic Outlook, International Monetary Fund (IMF), October 2023
                                                                               - Global Economic Data, Indicators, Charts and Forecasts, CEIC, 2023
deduction of 50 bps, respectively. The global environment became               - Economic Development in Indonesia and the World Quarter III-2023, Ministry
increasingly uncertain by the continuous process of increasingly                 of National Development Planning/National Development Planning Agency,
                                                                                 November 2023
sloping inflation, though the condition of high core inflation and the




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National Economic Analysis

In the midst of retarding global conditions, the Indonesian economy positively improved in Quarter III-2023, though it
experienced a slowdown to 4.94% (yoy), lower than the growth in Quarter II-2022, which was 5.73% (yoy). This slowdown was
influenced by seasonal factors, the lack of religious holidays and the absence of holidays throughout Quarter III-2023, which
could boost consumption activity.


Picture of Indonesian Economic Growth		
                                                                                                                                    (in %)


percent
         8.0
                                  7.08
        7.0

        6.0
                                                                                       5.73
                                                                                                                 5.17
        5.0                                                                                                                      4.94

        4.0

        3.0                                        3.53

        2.0

        1.0

        0.0

       -1.0

       -2.0
                     Q1           Q2               Q3     Q4          Q1   Q2          Q3     Q4            Q1   Q2              Q3

                                         2021                                   2022                             2023

Source: Central Bureau of Statistics, 2023



Picture of Growth of Gross Domestic Product (GDP) Expenditure Side Quarter III-2023 (in %)
                                                                                                                                    (in %)

percent




                                             6.2
                                                                                 5.8
               5.1




                                                               -3.8
                                                                                                    -4.3

                                                                                                                         -6.2




       Household                                          Government
                                         LNPRT                                  PMTB               Export               Import
      consumption                                         Consumption

Source: Central Bureau of Statistics, November 2023




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                                                                                                MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                             OF BANK PERFORMANCE




Meanwhile, in terms of expenditure, GDP components mostly                        Related to production, business sectors almost grew
continued to grow, but other components contracted, such as                      positively, excluding for Education Services and Government
government consumption, exports, and imports. Consumption                        Administration, contracted 2.1% and 6.2%, respectively.
of Non-Profit Agencies Serving Households (LNPRT) increased                      Government administration was one of the sectors experiencing
6.2%, although slowing down compared to the previous                             contraction in Quarter III-2023. The underperformance of
quarter, Gross Fixed Capital Formation (PMTB) also grew                          this sector was affected by the lower realization of employee
5.8%. Household consumption continuously developed at                            expenditure in the National Revenue and Expenditure (APBN),
5.1%, which was in accordance with the firmness of people’s                      and the absorption capacity of employee expenditure in
purchasing power along with controlled inflation.                                Quarter III-2023 was lower than Quarter III-2022.


Picture of Growth of Gross Domestic Product (GDP)                                The three business sectors with the highest growth were
Production Side Quarter III-2023                                                 Transportation and Warehousing at 14.7%, Other Services
                                                                                 at 11.1%, and Accommodation and Food and Beverage at
percent
                                                                                 10.9%. The highest growth sectors were Transportation and
                                                                                 Warehousing, which were influenced by increasing community
    Transportation &
                                                                          14.7   mobility along with the increasing number of visits from both
        Warehousing
                                                                                 foreign and domestic tourists.
      Other Services                                                      11.1
                                                                                 Spatially, the Indonesian economic structure in Quarter III-2023
Accommodation and                                                                was still contributed by the group of provinces on the island
                                                                        10.9
  Food & Beverage                                                                of Java with a role in GDP of 57.12%, followed by Sumatra at
                                                                                 22.16%, Kalimantan at 8.08%, Sulawesi at 7 .25%, Bali and Nusa
  Company Services                                                  9.4          Tenggara at 2.80%, and Maluku and Papua at 2.59%. The rate
                                                                                 of economic growth in Quarter III-2023 against Quarter III-2022
      Information &                                                              (yoy) was slower growth in almost all regions of Indonesia; the
                                                                  8.5
     Communication
                                                                                 highest growth was recorded by the group of provinces on the
                                                                                 islands of Maluku and Papua at 9.25%, followed by Sulawesi
                Mining                                        7.0
                                                                                 at 6.44%, Kalimantan and Java at 4.83%, Sumatra at 4.50%;
                                                                                 and, the lowest growth was on the Islands of Bali and Nusa
        Construction                                         6.4                 Tenggara, growing at 3.43%.


              Industry                                       5.2


   Financial Services
                                                             5.2
        & Insurance


               Trading                                       5.1


    Procurement of
                                                            5.1
 Electricity and Gas


        Water Supply                                   4.5


 Health Services and
                                                       2.9
    Social Activities


            Real Estat                                2.2



          Agriculture                                 1.5



 Education Services                     -2.1


        Government
                                 -6.2
      Ddministration

Source: Central Bureau of Statistics, November 2023




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Picture of Indonesia’s Spatial Economic Growth Quarter III-2023

SUMATRA                                        KALIMANTAN                              SULAWESI                                      MALUKU & PAPUA
    22.16%                                            8.08%                                7.25%                                        2.59%
    4.50%                                             4.83%                                6.44%                                        9.25%




                                               JAVA                                           BALI AND NUSA TENGGARA
      Contribution
                                                      57.12%                                       2.80%
      Growth
                                                      4.83%                                        3.43%

Source: Central Bureau of Statistics, November 2023



Regardless experiencing turmoil due to highly uncertain global                   consistency of monetary policy and the tight synergy of
financial market, the Rupiah exchange rate remained stable                       inflation control between the Government and Bank Indonesia
in Quarter III-2023. The average of the Rupiah exchange rate                     (Central and Regional) in the Central and Regional Inflation
reached IDR15,216 per USD in Quarter III-2023, failing by 1.95%                  Control Teams (TPIP and TPID), including the affirmation of
compared to the average in Quarter III-2022.                                     the National Movement of Food Inflation Control (GNPIP) in
                                                                                 various regions.
In Quarter III-2023, domestic inflation experienced a plunging
                                                                                 Source:
trend, where annual inflation (yoy) in July to September was                     - Economic Development in Indonesia and the World Quarter III-2023, Ministry
3.08%, 3.27% and 2.28%, respectively. Maintaining inflation                        of National Development Planning/National Development Planning Agency,
                                                                                   November 2023
within the target range could not be separated from the                          - Central Bureau of Statistics, November 2023




Banking Industry Analysis

In general, national banking performance is still quite good, as reflected in a number of banking performance indicators which remain
good and at a safe level. National banking performance in general is as follows:


Table of National Banking Performance

             Description                   September 2023             2022                   2021                    2020                    2019

                                                                   INTERMEDIATION

                                          IDR6,907.5 trillion   IDR6,498.6 trillion    IDR5,820.6 trillion     IDR5,547.6 trillion     IDR5,683.8 trillion
 Banking Credit
                                                  8.99% (yoy)         11.6% (yoy)             4.92% (yoy)            (2.40%) (yoy)            6.08% (yoy)

                                          IDR8,147.1 trillion   IDR8,153.6 trillion    IDR7,479.4 trillion     IDR6,665.4 trillion     IDR5,998.6 trillion
 Banking Third Party Fund (TPF)
                                                  6.54% (yoy)         9.01% (yoy)           12.21% (yoy)             11.11% (yoy)             6.54% (yoy)




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             Description                    September 2023                     2022                      2021                       2020                   2019

                                                                                  CAPITAL

 CAR Banking                                             27.43%                     25.62%                     25.66%                        23.89%             23.40%

                                                                      BANKING INTEREST RATES

 BI Rate                                                   5.75%                      5.60%                     3.50%                         3.75%              5.00%

                                                         FINANCIAL SERVICES INSTITUTION (FSI) RATIO

    Credit Risk

    Banking Gross NPL                                      2.43%                      2.44%                     3.00%                         3.06%              2.53%

    Liquidity Risk

    LDR Banking                                          84.00%                     78.98%                     77.49%                        82.54%             94.43%

Description and Source:
- Credit figures including non-bank third parties are sourced from Indonesian Banking Statistics, Financial Services Authority (processed)
- Sharia banking performance sourced from Indonesian Banking Statistics, Financial Services Authority (processed)
- BI Rate uses BI – 7 DRR sourced from Bank Indonesia




The meeting of the Board of Governors of Bank Indonesia                                     were maintained at 4.28% and 9.36%, respectively. Bank
(RDG) held on September 20-21, 2023 decided to maintain                                     Indonesia’s stress-test results also showed that banking
BI 7-Day Reverse Repo Rate (BI7DRR) at 5.75%, the deposit                                   resilience remains firm in dealing with global pressures. Bank
facility interest rate 5.00%, and the lending facility interest rate                        Indonesia will continuously affirm synergy with the Financial
at 6.50%. This decision was consistency of monetary policy to                               System Stability Committee (KSSK) in mitigating various risks
ensure low and controlled inflation and to maintain economic                                that potentially disrupt financial system stability and economic
recovery and exchange rate stability.                                                       growth momentum.


Banking intermediation continuously improved. In September                                  The performance of digital economic and financial transactions
2023, bank credit grew 8.99% (yoy), supported by banks’                                     remained firm, which was supported by a safe, smooth, and
loose appetite and increasing demand for financing in                                       reliable payment system. In Quarter III-2023, the transaction
accordance with the well-growing corporate performance. In                                  value of Electronic Money (EU) increased 10.34% (yoy) to
terms of sector, credit growth was primarily supported by the                               reach IDR116.54 trillion, while the transaction value of digital
Business Services, Trade, and Social Services sectors. Sharia                               banking was noted at IDR15,148.71 trillion or improved by
financing also continued to increase, reaching at 14.69%                                    12.83% (yoy). The QRIS nominal transactions recordingly
(yoy) in September 2023. In the MSME segment, credit                                        grew at 87.90% (yoy) and reached IDR56.92 trillion, with the
growth achieved 8.34% (yoy), supported by increasing KUR                                    total of users by 41.84 million and the total of merchants by
distribution. Next, Bank Indonesia will continue to encourage                               29.04 million, which were mostly MSMEs. Moreover, Bank
the distribution of banking credit/financing and strengthen                                 Indonesia persists to encourage acceleration of digitalization
synergy with the government to maintain the momentum of                                     of payment systems and expansion of inter-countries payment
economic growth, particularly in priority, inclusive, and green                             system cooperation to boost financial economic inclusion and
economy sectors. Resilience of financial system stability was                               develop the digital economy and finance. Meanwhile, the
also influenced by high capital and low credit risk. The Capital                            transaction value of payments using ATM, debit, and credit
Adequacy Ratio (CAR) was recorded at a high level of 27.43%                                 cards achieved IDR2,041.72 trillion or declined by 4.94%
in September 2023. Meanwhile, credit risk was also under                                    (yoy). In terms of Rupiah currency management, the amount
control, reflected in the low non-performing loan (NPL) ratio                               of Currency in Circulation (UYD) in Quarter III-2023 increased
of 2.43% (gross) and 0.77% (net).                                                           6.16% (yoy) to IDR961.59 trillion. Additionally, Bank Indonesia
                                                                                            also continues to ensure the accessibility of the maintained
Resilience of banking liquidity was still maintained, supported                             quality of Rupiah currency across the territory of the Republic
by growth in Third Party Funds (DPK) of 6.54% (yoy) in                                      of Indonesia through the circulation program of Rupiah
September 2023. The ratio of Liquid Assets Ratio to Third Party                             currency to Outermost, Frontier, Remote (3T) areas and
Funds (AL/DPK) remained high, such as 25.83%. This liquidity                                Mobile Cash, Deposit Cash, and Sovereign Rupiah Expedition
development had a positive impact on the development                                        activities
of banking interest rates, and 1 (one)-month bank deposit
                                                                                            Source:
interest rates and credit interest rates in September 2023                                  - Monetary Policy Report Quarter III-2023, Bank Indonesia, October 2023
                                                                                            - Monetary Policy Review, Bank Indonesia, September 2023




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Bank Jatim’s Position in the Banking Industry Analysis

As a comparison of the performance of Bank Jatim against the Regional Development Bank of Indonesia (BPD SI) and the banking
industry, the following is a breakdown of the Bank’s growth performance and a ratio comparison of the Bank to the average BPD SI
and the banking industry


Table of Bank Jatim Growth Performance Compared to the Average KBMI Bank and Banking Industry
                                                                                                                                                            (in IDR billion)

                                                                              Regional Development Bank of
                                        Bank Jatim                                                                                       Banking Industry
                                                                                    Indonesia (BPD SI)
   Performance
                       September September                Growth         September September                   Growth        September September            Growth
                         2023      2022                    (yoy)           2023      2022                       (yoy)          2023      2022                (yoy)

 Asset                    107,038        98,477             8.69%          945,728         904,090             4.61%         4,668,797     4,323,082        8.00%
 Loans                     51,773        45,976            12.61%          605,595         556,395             8.84%         6,907,547     6,337,684        8.99%
 Third Party Fund
                           84,191        82,982             1.46%          735,657         712,809             3.21%         8,147,169     7,647,334        6.54%
 (TPF)

Source: Indonesia Banking Statistics – Financial Services Authority September 2023; Bank Jatim Internal Data


In general, Bank Jatim’s main growth component for the                                    growth of the banking industry and BPD SI. Meanwhile, the
September period (% yoy) experienced an increase in the                                   total component of DPK also increased, but was still below
components of assets, credit and third party funds total. A                               the growth of the banking industry and BPD SI. The significant
significant improvement occurred in the loans component,                                  increase in loans component growth was one indicator of the
which grew positively by 12.61% and was higher than the                                   improvement in the banking intermediation function that had
growth of the banking industry and BPD SI. In addition to loans,                          been carried out by Bank Jatim.
the asset component also experienced higher growth than the


Table of Comparison of Bank Ratio to Industry Average
                                                                                                                                                                     (in %)

                                                                 September 2023                                                  September 2022

                  Ratio                                             Regional                                                         Regional
                                                                                              Banking                                                       Banking
                                             Bank Jatim       Development Bank of                               Bank Jatim     Development Bank of
                                                                                              Industry                                                      Industry
                                                               Indonesia (BPD SI)                                               Indonesia (BPD SI)

 Net Interest Margin (NIM)                         5.38                   5.46                    4.96              5.17                  5.80                  4.86
 Non Perfoming Loan (NPL) Gross                    2.74                   2.32                    2.43              3.72                  2.33                  2.44
 Return on Assets (ROA)                            1.87                   1.98                    2.76              2.02                  2.21                  2.53
 Capital Adequacy Ratio (CAR)                    25.80                   24.61                  27.43              22.65                 22.49                 25.62
 Loan to Deposit Ratio (LDR)                     61.49                   81.09                  84.00              55.40                 77.26                 78.98
 Operational Cost of Operating
                                                 76.23                   78.64                  76.34              74.24                 75.19                 77.18
 Income (BOPO)

Source: Indonesia Banking Statistics – Financial Services Authority September 2023; Bank Jatim Internal Data



The performance ratio of Bank Jatim for the September 2023                                period, Bank Jatim is better than BPD SI where Bank Jatim’s
period has components that are classified as better than the                              CAR ratio is 25.80% while BPD SI is 24.61%. In terms of gross
ratio of the performance of the banking industry and the BPD                              NPL, compared to the Banking Industry and BPD SI groups,
SI group, namely the BOPO Performance of 76.23%, which                                    Bank Jatim’s gross NPL for the September 2023 period was the
shows that Bank Jatim’s operational activities are classified as                          highest at 2.74%, but lower compared to the September 2022
more efficient than Banking Industry and BPD SI. Meanwhile,                               period which was 3.72%. Meanwhile, in line with the NPL, Bank
the other ratio, namely NIM, was 5.38%, better than the                                   Jatim’s LDR ratio for the September 2023 period is also the
Banking Industry which was 4.96%. Meanwhile, in terms of the                              lowest among BPD SI and Banking Industry, namely at 61.49%.
capital ratio component, namely CAR for the September 2023




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                                                                                MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                             OF BANK PERFORMANCE




Operational
Review

Bank Strategy

Short Term Strategy

In accordance with the bank’s policy direction and considering   10. Sustainable implementation is aimed to:
the latest developments in economic conditions, Bank Jatim’s         a. Corporate Culture is the bank’s effort to survive amidst
management has formulated a strategic focus implemented to               intense competition and have employees with integrity.
achieve sustainable business growth as follows:                      b. Sustainable risk culture development through improving
1. Changing in business model from per loan scheme to                    risk profiles, mainly those with minor weaknesses.
    segmentation based on ceiling                                    c. Compliance Culture, through Good Corporate
    a. Consumer Loans                                                    Governance (GCG) improvement roadmap to rank 2nd.
    b. Retail and Medium Micro Loans                                 d. Service Culture, through measurable programs to rank
    c. Commercial and Corporate Loans                                    1st (first) in the BPD category according to Marketing
2. Network repositioning, especially in the Surabaya area and            Research Indonesia (MRI). A service culture is aimed at
    Class 1 Branches.                                                    exceeding customer expectations by creating superior
3. Changing in organizational structure to adjust business               service.
    developments.                                                    e. Marketing Culture, where every employee is a marketer,
4. Increasing non-organic assets with corporate actions by               particularly those in the front line required to always be
    providing capital investment to financial institutions and           equipped with sufficient knowledge about the product
    Bank NTB Sharia, which continues to the Bank Business                and also measurable targets.
    Group (KUB) stage.
5. Increasing fee based income by adding Bank Jatim              For supporting this strategic focus, Bank Jatim also formulates
    e-channel features                                           the focus of the 2023 business support strategy as follows:
6. Increasing the collection of Non-Regional Government          1. Network repositioning especially in the Surabaya area and
    (Local Government) Funds by increasing the Current               Class 1 Branches
    Account Saving Account (CASA).                               2. Changing in the organizational structure adapted to the
7. Strengthening the process of monitoring and evaluating            development of the business
    the settlement of problem loans, including evaluating        3. Strengthening the process of monitoring and evaluating
    the Key Performance Indicator (KPI) of the work unit for         the settlement of problem loans, including by evaluating
    settlement of problem loans.                                     the Key Performance Indicator (KPI) of the work unit for
8. Improving Human Resources (HR) management, including:             settlement of problem loans.
    a. Carrying out workload analysis and mapping HR needs.      4. Evaluation of divisional performance to make it more
    b. Developing talent pool and career path mechanisms             effective and efficient.
         for HR by considering the mission of becoming an IT     5. Improving Service Level Agreement (SLA).
         and digital-based bank.                                 6. Evaluation of the implementation of the new organizational
    c. Developing a program to increase the competency               structure.
         and quality of human resources by conducting training   7. Improving the quality of human resources through training
         for customers by launching J-Connect as Bank Jatim’s        activities.
         digital banking branding                                8. Improving remuneration.
9. Improving cyber security, including:                          9. Evaluation and implementation of reward and punishment.
    a. Cyber security management.                                10. Improving the new employee recruitment system.
    b. Cyber risk assessment obligations.                        11. Strengthening the company’s work culture through change
    c. Obligation to test Bank information technology                agent training.
         vulnerabilities.                                        12. Establishing a work culture in KPI in 2023.
    d. Cyber maturity level assessment.                          13. GCG improvement roadmap to rank 2 in 2023.
    e. Implementation of Bank cyber security testing.            14. Maintaining the average risk profile rating at a score of 2.
                                                                 15. Improving the quality of service standards to be ranked 2nd
                                                                     among BPDs in Indonesia in 2023.




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                                                                                                   2023 Annual Report        171
Page 174
Medium Term Strategy

In the medium term of 2023-2024, the road map grand strategy      5. Increasing affordable funding portion with Current Saving
is in the fine turning process for the business instrument and        Account ration is ≥59,81%
its supporting details. This stage implements the business        6. Funding products and credit digitalization
expansion by utilizing the increasing capability from the first   7. Enhancing collaboration with other parties
year. The medium term goals cover the following points :          8. Reducing credit gap with BJB Bank and Jateng Bank
1. The development of business digitalization and supporting      9. Giving a contribution towards national strategic projects in
2. The evaluation and completion process of competitive               East Java Region
     advantage and value proposition for all credit products,     10. Business process repairment
     fund, and service.                                           11. A good management product
                                                                  12. Surpassing beyond the average banking industry
Meanwhile the qualitative target of medium term covers :          13. Balancing a sustainable organic business growth strategy,
1. The Service Standard occupies the 2nd position as Best             and anorganic business growth through capital injection to
   Overall Performance Service Excellent from Marketing               financial instituion and West Nusa Tenggara Sharia, then
   Research Indonesia (MRI) assesment in 2023 for Regional            continue to the Bank Asscociation
   Development Bank                                               14. Optimilizing tresury roles
2. The medium term predicted risk profile experiences a           15. Improving fee based income
   constant trend for all kinds of risks.                         16. Planning the Public Offering Plan with 10 trilion rupiahs
3. An excellent human resource capital improvement,                   value in Retail Banking Banking Business in 2023 as
   competitive and professional                                       the alternative for long-term bank funding plan with an
4. Exceeding the average of Third Parties Funding in banking          adjusment of market liquidity situation during 2023.
   industry




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                                                                                                                    MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                                                 OF BANK PERFORMANCE




Long Term Strategy

Bank Jatim has a strategic planning in the form of corporate                                   The main strategy is focused on the 21 strategic initiatives,
plan in 2022-2026. The Corporate Plan 2022-2026 in Bank                                        enhancement and development which covers all perspectives
Jatim is “Becoming a number 1 Regional Development Bank in                                     of balanced scorecard in 8 fields and will be excecuted in 3
Indonesia.” The main Corporate Plan Strategy 2022-2026 are :                                   stages :
1. Selective Competency Enhancement                                                            1. Capability and capacity improvement
    Improving capability and capacity of the resources which                                   2. Fine Tuning
    focuses on selected areas.                                                                 3. Business Growth Acceleration and Acquisition
2. Selective Market Capture
    Optimizing the ability and acceleration of business
    acquisition and the exploitation of banking markets
    potential which focuses on selected area.




                                                     21. Intensification of NPL recovery and write-off credit (inorganic settlement is optional)
                                                     20. Intensification of sales of non-ASN consumer credit products (KPR, KKB), UKM1 retail) and selected
                                                         corporate sectors, including participation in syndications, especially sustainable finance-based syndications
 Selective Market Capture




                                                         (inorganic asset development/acquisition/asset buy is optional)
                                                     19. Intensification of sales of fund products and services (including retail digital payment and cash
                                                         management services for regional and private governments)
                                                     18. Development of fintech/e-commerce alliances and business ecosystems based on regional governments,
                                       Finance           BUMN/BUMD and communities in the East Java region
                                                     17. Accelerate the development of branchless banking (card and gadget based/cardless)
                                                     16. Intensification of treasury trading business activities
                                                     15. Intensification of international banking/trade service product sales

                                                     14. Improving competitive advantage and value proposition (speed, convenience, security and financial
                                                         benefits) including digitalization of products/services
                                                     13. Expansion and intensification of fund and credit marketing programs (below and above the line,
                                                         conventional channels and digital channels)
                                      Costumer       12. Improvement of product and service standards (SME and consumer retail credit, green financing products,
                                                         retail DPK with priority banking concentration) including development of green loan products



                                                     11. Improvement of operational policies and procedures
                                                         •    Business development (trading treasury, trade services, non-ASN/fixed income consumer credit)
                                                         •    Green financing products (policies, management, incentives)
                                                     10. Development of business digitalization and supporting
 Selective Competency Enhancement




                                                     9. Rearranging branch functions (concentration on credit centers and priority barking)
                                                     8. Improved risk management:
                                      Internal           •    Strengthening the compliance function (internal control anti-fraud)
                                      Process            •    Early warning system for main risks (credit, market operations)
                                                     7. Improvement of ESG (sustainable finance) risk policies in ERM and credit policies
                                    Improvement      6. Improving the implementation of the performance management system (KPI effectiveness)
                                                     5. Improvement of HC policies and management and benefit compensation systems (business and credit
                                                         settlement areas)

                                                     4.   Adjustment of organizational structure:
                                                          •     Strengthening/expansion of credit rescue and settlement work units (temporary/conditional)
                                                          •     Strengthening IT unit competencies related to business digitalization and supporting
                                                          •     Establishment of Distribution Network units, CMO (temporary) and Learning Center
                                                     3.   Fulfillment of HC adequacy:
                                                          •     Experienced specialist (Treasury, Trade Service, Sales, Credit Recovery)
                                                          •     Credit and funding officer (RM/AO/PBO)
                                    Individual and   2.   Increased individual competence:
                                    Organizational        •     Credit analyst (commercial, SME retail, including green financing)
                                    Development           •     Trade service officer
                                                          •     Sales credit and funding (RM/AO)
                                                     1.   Intensify the internalization of corporate culture and its derivatives (sales, credit, risk and compliance,
                                                          digital and performance based culture)


1) Without changing the capacity and capacity of the fixed income-based consumer credit business
2) Review of NPL credit settlement and anorganic write-off (asset sale, securitization) and its execution is part of the PPK Division laver strategy initiative for expansion. Included
   in bankwide strategic initiatives in corporate plan adjustments (optional).




                                                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                      2023 Annual Report                       173
Page 176
Marketing Aspect

Marketing Strategy In 2023

In line with Bank business development and Government                                     Bank Jatim also doing collaboration with corporate institutions
programs , Bank Jatim continued to improve its marketing                                  such as in ministry, province, and city levels in order to provide
strategy by conducting promos. Which follows and adjusts                                  financial service for Civil Servants and non Civil Servants.
National Day’s themes, and support Government’s Programs                                  Besides that, developing product and digital services
by implementing educative activities and comprehensive                                    as the form of Bank Jatim support toward the economic
financial literacy to certain customers or certain groups.                                development in East Java. Those collaborations accelerate
                                                                                          non-cash transaction activities, especially the utilization of
As one of the Regional Development Bank which also                                        Cash Management System (CMS) by Budget Implementation
manage The Third Paty Funding and Number of Account                                       Work Unit for The State Budget, Dashboard Development
in a big amount, Bank Jatim also appreciates its customer                                 VA, online Letter of Fund Disbursement Authorization in
by organizing price draw events in “SIKLUS and SIMPEDA”                                   the Government Internal Control System application. Bank
accounts.                                                                                 Jatim has become a pioneer in the implementation of Digital
                                                                                          Population Identity in Indonesia. The other strategy is done
Bank Jatim is also consistant in a sponsorship activity which                             by enhancing mobile banking feature and corporate internet
collaborate with government or private institutions, do a                                 banking, especially for payment transaction. The other
promotion through an open space medium such as videtron                                   digitalization development is interconnected by utilizing API
and billboard which aims for building corporate image,                                    (Open Banking) for information and technology, increasing
product image, and customer awareness for the growth of                                   ecosystem energy to collaborate with banks / fintech in
Third Funding Parties and Bank Jatim’s Number of Accounts.                                order to lift up collaboration amounts with the Institutional
                                                                                          Partners.



Market Share

Bank Jatim as a Conventional Bank, in particular, faced competition with all Regional Development Bank of Indonesia and the
banking industry in Indonesia in determining market share. This business competition could be seen based on the number of assets
owned, the amount of third-party funds that had been successfully raised, and the amount of loan extended by the Bank.


Table of Bank Jatim Market Share Compared to BPD SI
                                                                                                                                                 (in IDR billion)


             Description                          Information                  September 2023                  September 2022       Increase/Decrease

 Total Asset                               BPD SI                                      945.728                     904.090                  41.638

                                           Bank Jatim                                  107.038                      98.477                    8.561

                                           Market Share (%)                            11,32%                      10,89%                    0,43%

 Total Third Party Fund                    BPD SI                                      735.657                     712.809                  22.848

                                           Bank Jatim                                   84.191                      82.982                    1.209

                                           Market Share (%)                            11,44%                      11,64%                  (0,20%)

 Total Loan                                BPD SI                                      605.595                     556.395                  49.200

                                           Bank Jatim                                   51.773                      45.976                    5.797

                                           Market Share                                  8,55%                      8,26%                    0,29%

Source: Indonesia Banking Statistics – Financial Services Authority September 2023; Bank Jatim Internal Data




          PT Bank Pembangunan Daerah Jawa Timur Tbk
174       2023 Annual Report
Page 177
                                                                                     MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                  OF BANK PERFORMANCE




Bank Jatim’s market share compared to BPD SI for the                   period with 12.61%. The third-party funding’s market share
September 2023 period, both in terms of assets and loan                in September 2023 saw a decline from 0.20% to 11.44%.
distribution, increased by 0.43% and 0.29% respectively. The           It is influenced by the decrease of checks. That is caused
aforementioned improvement is caused by the increasing                 by the operational needs of Local Governments and Local
number in credit distribution. The credit distribution in Bank         Departments, fund interest rate from competitors and
Jatim experienced a significant raise compared to last year            withdrawal savings by customers.




Diagram of Bank Jatim Market Share Compared to BPD Throughout Indonesia September 2022



                                    11.32%                                       11.44%                                       8.55%




                   ASSET                                         TPF                                         LOANS



88.68%                                       88.56%                                        91.45%


                                                      Bank Jatim            BPD SI



Diagram of Bank Jatim Market Share Compared to BPD Throughout Indonesia September 2022



                                    10.89%                                       11.64%                                       8.26%




                   ASSET                                         TPF                                         LOANS



89.11%                                       88.36%                                        91.74%


                                                      Bank Jatim            BPD SI


Graph of Bank Jatim Market Share Compared to BPD Throughout Indonesia in 2022-2023



                           11.32%                     11.64%            11.44%
          10.89%


                                                                                                    8.26%           8.55%




                   ASSET                                         TPF                                        LOANS


                                             September 2022               September 2023




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report   175
Page 178
Table of Market Share Bank Jatim dibandingkan dengan Banking Industry Indonesia.
                                                                                                                                                (in IDR billion)


             Description                          Information                  September 2023                  September 2022       Increase/Decrease

 Total Asset                               Banking Industry                          4.668.797                     4.323.082                345.714

                                           Bank Jatim                                   107.038                      98.477                   8.561

                                           Market Share (%)                               2,29%                      2,28%                   0,01%

 Total Third Party Fund                    Banking Industry                          8.147.169                     7.647.334                499.835

                                           Bank Jatim                                    84.191                      82.982                   1.209

                                           Market Share (%)                               1,03%                      1,09%                  (0,06%)

 Total Loan                                Banking Industry                          6.907.547                     6.337.684                569.863

                                           Bank Jatim                                    51.773                      45.976                   5.797

                                           Market Share (%)                               0,75%                      0,73%                   0,02%

Source: Indonesia Banking Statistics – Financial Services Authority September 2023; Bank Jatim Internal Data




In line with the BPD SI Market Share, Bank Jatim’s Market                                  national economy and regional becomes one of the factors
Share compared to the Indonesian Banking Industry for the                                  of increasing market share. It can be a good support for Bank
September 2023 period in terms of Assets and Loan distribution                             Jatim to create a better performance in 2024.
experienced an increase in market share.
                                                                                           On the other side, the market share amount based on the
Based on the market share period in September 2023                                         third funding party saw a slight decline to 0,06% from 1.09%
achieved 2.29% and the number of credit with 0.75%.                                        in September 2022, it becomes 1.03% in September 2023.
The improvement indicates that the growth of those two                                     It is affected by the decreasing number of checks because of
components exceeded the growth in performance of the                                       operational needs of Local Governments and Departments,
entire banking industry in Indonesia. The positive trend of                                competitive fund interest, and savings withdrawals by customers.


Diagram of Bank Jatim Market Share Compared to Indonesia Banking Industry September 2023


                                             2.29%                                                       1.03%                                        0.75%




                       ASSET                                                         TPF                                          LOANS



97.71%                                                     98.97%                                                 99.25%


                                                               Bank Jatim                 Banking Industry



Diagram of Bank Jatim Market Share Compared to Indonesia Banking Industry September 2022


                                             2.28%                                                       1.09%                                        0.73%




                       ASSET                                                         TPF                                          LOANS



97.72%                                                     98.91%                                                 99.27%


                                                               Bank Jatim                 Banking Industry




          PT Bank Pembangunan Daerah Jawa Timur Tbk
176       2023 Annual Report
Page 179
                                                                                      MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                   OF BANK PERFORMANCE




Graph of Bank Jatim Market Share Compared to Indonesia Banking Industry September 2022-2023


           2.28%           2.29%




                                                      1.09%
                                                                        1.03%

                                                                                                     0,73%           0.75%




                   ASSET                                         TPF                                         LOANS


                                             September 2022               September 2023



Operation Review Per Business
Segment

The Business Sectors of Bank Jatim consists of Operation               Conventional Segment
Segment and Geography Segment. Operation Segment
covers Conventional Segments (Credits, Third Funding Parties,          Bank Jatim conventional segment consisted of credit/loan
and other services) and Sharia financial segment (Third Party          products, third party funds/deposits and services.
Fundings, Sharia Fundings and other services).
                                                                       Description and Productivity of Conventional
Operating Segment                                                      Segments

The Bank determines and presents operating segments based              A description of the explanation and productivity of the
on the information that is internally provided by accounting           conventional segment of Bank Jatim is presented as follows.
department to the operating decision maker.
                                                                       CREDIT/LOAN
The Bank defines an operating segment as a component of                Loans Bank Jatim terdiri atas Micro Credits, Retail and Medium
an entity:                                                             Credits, Commercial Credits and Corporation, and Consumer
a. That engages in business activities from which it may earn          Credits. The further explanation of each credit products are
    revenues and incur expenses (including revenues and                provided in the Profile of Sub Product Unit and Service in this
    expenses relating to transactions with other components of         Annual Report.
    the same entity);
b. Whose operating results are reviewed regularly by the               In 2023 there is a policy shifting about management of
    entity’s chief operating decision maker to make decisions          productive credit debtors that initially based on credit skim
    about resources to be allocated to the segment and assess          becomes plafond facility. The segmentation allocation based
    its performance; and                                               on plafond facility as follows :
c. For which discrete financial information is available.              1. Micro segment            : up to 500 milion rupiahs
                                                                       2. Retail segment           : more than 500 milion rupiahs
Bank discloses its operating segments based on business                			 up to 10 billion rupiahs
segments that consist of banking conventional and sharia.              3. Medium segment           : more than 10 billion
                                                                       			 up to 25 billion rupiahs
                                                                       4. Commercial segment : more than 25 billion
                                                                       			 up to 50 billion rupiahs
                                                                       5. Corporate segment : more than 50 billion rupiahs




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report     177
Page 180
Graph of Loan Productivity                                                                                                 (in IDR million)




                         Micro Credits   Retail Credits    Medium Credits   Commercial Credits Corporation Credits Consumer Credits

       2022                5,289,479       4,277,620           417,423           392,146           6,222,175            27,698,345

       2023                7,617,655       6,305,177           330,087           225,015           6,809,068            30,256,043




Micro Loans
Bank Jatim’s Micro Loans is a credit given to small enterprneur to fund productive business needs either for investment or working
capital needs with maximum plafond is 500 million rupiahs.


the productivity of Micro Credit is explained below:


Table of Micro Loans Productivity
                                                                                                                           (in IDR million)


                                                                                                               Growth
                       Description                          2023               2022
                                                                                                   IDR                     %

                            (1)                              (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Kepres                                                     47,571             59,382             (11,811)               (19.89%)

 Loans Financial Technology (Amartha)                      687,209            469,889             217,320                 46.25%

 General Investment Loans                                   11,498             16,225              (4,727)               (29.13%)

 Jatim Micro Loans                                        2,059,514           749,308            1,310,206               174.86%

 Jatim Retail Loans                                        734,348           1,239,238           (504,890)               (40.74%)

 Loans to Cooperatives                                       5,011               5,624               (613)               (10.90%)

 Restructuring Loans                                        16,970               6,143             10,827                176.25%

 Loans SiUMI (Siklus Small Micro)                           29,445             76,840             (47,395)               (61.68%)

 People’s Business Loans                                  3,836,075          2,384,043           1,452,032                60.91%

 KUMK SU-005/ Government Investment Loans (KIP)                556               1,585             (1,029)               (64.92%)

 Cattle Breeding Business Loans(KUPS)                          641                641                    0                 0.00%

 Laguna Loan                                                   118                399                (281)               (70.43%)

 General Working Capital (PRK )                            186,594            277,786             (91,192)               (32.83%)

 Standby Loan                                                1,105               2,059               (954)               (46.33%)

 Warehouse Receipt Subsidy (S-SRG)                           1,000                    0              1,000               100.00%

 Food and Energy Security Loans (KKPE)                             0              317                (317)              (100.00%)

 Total Micro Loans Distribution                           7,617,655         5,289,479           2,328,176                44.02%




          PT Bank Pembangunan Daerah Jawa Timur Tbk
178       2023 Annual Report
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                                                                                             MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                          OF BANK PERFORMANCE




The total of Micro Credit distribution in 2023 is 7.62 trillion             consist of application development of micro credit processing,
rupiahs, it raises 44.02% compared to 2022 with 5.29 trillion               quality account officer upgrade, performance monitoring and
rupiahs. That improvement comes from the growth of People’s                 evaluation, reward and punishment based on performance,
Business Credit with 1.45 trillion rupiahs, Jatim Micro Credits             micro product segment completion and refocusing target
with 1.31 trillion rupiahs, and Financial Credit Technology                 market. Meanwhile, external factors are related to the condition
(Amartha) with 217,32 billion rupiahs.                                      of Micro, Small, and Medium Enterprises, off take collaboration,
                                                                            synergy with government institution, distribution to micro
The skim growth of People’s Business Credit and Micro Jatim                 enterprise cluster.
is influenced by internal and external factors. Internal factors

Table of Total Micro Loans NoA
                                                                                                                                         (In NoA)


                                                                                                                        Growth
                       Description                            2023                    2022
                                                                                                            NoA                     %

                            (1)                                 (2)                    (3)              (4) = (2)-(3)        (5) = (4)/(3)

 Kepres                                                            235                  1,043                 (808)               (77.47%)
 Loans Financial Technology (Amartha)                        195,102                  125,440               69,662                 55.53%
 General Investment Loans                                              61                    72                (11)               (15.28%)
 Jatim Micro Loans                                             18,281                   8,637                9,644                111.66%
 Jatim Retail Loans                                            10,324                  17,318               (6,994)               (40.39%)
 Loans to Cooperatives                                             189                    225                  (36)               (16.00%)
 Restructuring Loans                                               108                       54                 54                100.00%
 SiUMI Loans                                                       548                  1,050                 (502)               (47.81%)
 People’s Business Loans                                       39,381                  23,122               16,259                 70.32%
 KUMK SU-005/ Government Investment Loans (KIP)                         4                    17                (13)               (76.47%)
 Cattle Breeding Business Loans (KUPS)                                  2                     2                   0                 0.00%
 Laguna Loan                                                           11                 108                  (97)               (89.81%)
 General Working Capital (PRK )                                    583                    875                 (292)               (33.37%)
 Standby Loan                                                          14                    34                (20)               (58.82%)
 Warehouse Receipt Subsidy (S-SRG)                                      2                     0                   2               100.00%
 Food and Energy Security Loans (KKPE)                                  0                    59                (59)              (100.00%)
 Total NoA Micro Loans                                       264,845                 178,056                86,789                48.74%


The total number of Micro Loan Account in 2023 are 264.854. The saw a significant progress 48,74% compared to 2022 with 178,056
NoA. This improvement is from the NoA growth of Credit Financial Technology (Amartha) with the total of 69,662 NoA, People’s
Business Credit with 16,258 NoA and Jatim Micro Credit with 9,644 NoA.

Graph of Micro Loans Distribution                   (in IDR million)        Graph of NoA Micro Loans                                     (In NoA)




                                        7,617,655                                                                264,845



                       5,289,479                                                                  178,056




                       Micro Loans Distribution                                                   Total NoA Micro Loans

                            2022           2023                                                      2022             2023




                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                              2023 Annual Report             179
Page 182
Micro Loans Strategy in 2023                                         Micro Loans Business Prospect in 2024
The description of the Micro Loans strategy implemented in 2023      Based on the data from Coperatives, Small, and Medium
is as follows:                                                       Enterprises Office of East Java Province, there are 9 millions
1. Optimalization of People’s Business Credit                        industries approximately. Bank Jatim market share for industries
2. Optimalization Fintech collaboration                              funding is around 0.7% or around 69,743 debiturs that are
3. Reward for account officer                                        funded by Micro Credit. Hence, it is expected that the business
4. Digitalize the credit process                                     prospect for Micro Credit from Bank Jatim will improve further.
5. Weekeng banking
6. Reward referral                                                   Micro Loans Strategy in 2024
                                                                     Description of the Micro Loans strategy that will be implemented
Micro Loans Competitive Advantage and Innovation                     in 2024 is presented as follows:
Competitive Advantage and Innovation Micro Loans are as              1. Diversification of target market
follows:                                                             2. Optimalization of People’s Business Credit distribution
1. Fast process                                                      3. Digitalization of credit process
2. Easy requirements                                                 4. Collaboration with off taker in agriculture sector, fisheries,
3. Competitive interest rate                                             and livestock
4. Paperless                                                         5. Synergy with government institution
5. Digitalization of the credit process                              6. Referral rewards




Retail and Medium Loans
Retail and Medium Loans from Bank Jatim is a productive credit with plafond more than 500 million rupiahs up to 10 billion rupiahs
for Retail Segment and above 10 billion up to 25 billion for Medium Segment. The Retail and Medium Credits are managed by Retail
Credit and Medium Division.


Retail and Medium Loans productivity is presented as follows.


Table of Retail and Medium Loans Productivity
                                                                                                                           (in IDR million)


                                                                                                                 Growth
                    Description                            2023                2022
                                                                                                     IDR                   %

                         (1)                                (2)                  (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Retail Segment                                          6,305,177            4,277,620            2,027,557               47.40%

 Medium Segment                                            330,087              417,423              (87,336)             (20.92%)

 Total Retail and Medium Loans Distribution              6,635,264           4,695,043            1,940,221               41.32%




The total Retail and Medium Credit distribution in 2023 is           4.28 trillion rupiahs. The enhancement comes from Jatim
6.64 trillion rupiahs, increasing 41.32% compared to previous        Credits realization with 2.23 trillion or significantly increased
amount with 4.70 trillion. The improvement comes from the            518.44% from the previous Jatim Credit Retail.
growth Retail Credit distribution with 47.40% or 2.03 trillion.
                                                                     Medium Credit Segment in 2023 is 330.09 billion, experiencing
Retail Credit Segment experienced a raising number in 2023           a 20.92% decline compared to cut off position in 2022 with
with IDR6.305.177 million, which has an addition percentage          417.42 billion rupiahs. The reduction comes from the realization
47.40% compared to cut off position segmented in 2022 with           of Public Credit Investment with the tital 1.87 billion or
                                                                     decreasing 50.98% from the previous Public Credit Investment.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
180     2023 Annual Report
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                                                                                  MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                               OF BANK PERFORMANCE




Table of Retail and Medium Loans NoA
                                                                                                                                   (in NoA)


                                                                                                               Growth
                      Description                       2023              2022
                                                                                                  NoA                      %

                           (1)                           (2)                (3)                (4) = (2)-(3)        (5) = (4)/(3)

 Retail Segment                                         13,483            11,315                   2,168                 19.16%

 Medium Segment                                          3,719             5,481                  (1,762)               (32.15%)

 Total NoA Retail and Medium Loans                      17,202            16,796                     406                 2.42%



The total number of account for Retail and Medium Credits        Credit realization with 2,704 or increasing 232,60% from the
in 2023 are 17,202 NoA, increases 2.42% compared to 2022         previous Jatim Retail Credit.
with 16.796 NoA. It comes from Retail Segment with 19.16%
or 2,168 NoA.                                                    Medium Segment Loan NoA in 2023 was 3,719 NoA, a
                                                                 decrease of 32.15% compared to 2022 which was 5,481 NoA.
The number of Accounts for Retail Segment in 2023 are 13,483     This decrease came from the Keppres Loan NoA realization
NoA, experiencing an improvement 19.16% compared to 2022         of 2 NoA or a decrease of 81.82% from the previous year’s
with 11,315 NoA. The improvement comes from Retail Jatim         NoA of Presidential Credit.



Graph of Retail and Medium Loans Distribution                                                                              (in IDR million)



                                      6,305,177



                                                                                      417,423

                      4,277,620
                                                                                                        330,087




                  Retail Segment Credit Distribution                          Medium Credit Segment Distribution

                           2022           2023                                           2022                2023

Graph of Retail and Medium Loans NoA                                                                                               (In NoA)



                                       13,483                                          5,481


                        11,315

                                                                                                            3,719




                        NoA Retail Segment                                            NoA Medium Segment

                           2022           2023                                           2022                2023




                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                  2023 Annual Report               181
Page 184
Retail and Medium Loans Strategy in 2023                         Retail and Medium Loans Business Prospect in 2024
description of the Retail and Medium Loans strategy carried      Credit Retail and Medium focuses to maximize the potential
out in 2023 is presented as follows:                             of every credit skim under the Retail and Medium Segment in
1. Improve monitoring of the implementation of loan              2024. One of them is contractor funding through credit skim
    expansion to ensure smooth loan collectability.              especially for State Funding Project (APBD/APBN). On the other
2. Doing market penetration to optimize credit distribution      side, without without neglecting the provision of credit to MSME
    for Small and Medium Enterprises                             players through Jatim Retail and Medium Credit Scheme.
3. Developing the Jconnect E-Loan and Jatim Kilat mobile
    applications as a way to speed up the loan application       Retail and Medium Loans Strategy in 2024
    process for prospective MSME debtors.                        description of the Retail and Medium Loans strategy that will
4. Improve regulations (SOP) to support the achievement of       be implemented in 2024 is presented as follows:
    targets for the Retail and Medium Loans Division.            1. Doing an agreement to collaborate with both State Owned
5. Expand the MSME target market by collaborating with               (BUMN) and private sugar factories
    associations and increasing cooperation with all BUMDES      2. Doing an agreement to collaborate with the association of
    in East Java.                                                    micro, small, and medium enterprises in East Java
6. Expanding financing and funding cooperation with BPR          3. Doing an exhibition of micro, small, and medium enterprises
    Perbamide and Perbarindo.                                        with ministries, Regional Offices, and other institutions
7. Providing promotions for Loan products through print/         4. Doing a training and financial literacy with ministries,
    electronic/social media and making product videos.               Regional Offices, and other institutions to micro, small, and
8. Improve brand image by participating in various                   medium enterprises
    promotional activities or exhibitions held by the Bank,      5. Implementing business matching event of micro, small,
    local government, or in collaboration with various related       and medium enterprises products together with ministries,
    agencies.                                                        Regional Offices, and other institutions
                                                                 6. Enrolling micro, small, and medium enterprises into East
Retail and Medium Loans Competitive Advantage                        Java Province Trade Mission Program
and Innovation                                                   7. Creating a micro, small, and medium enterprises program
Retail and Medium Loans Competitive Advantage and                8. Creating a company branding with micro, small, and
Innovation are as follows:                                           medium enterprises
1. For the Loans to Cooperatives scheme for its members          9. Doing a gathering with housing developer association
    (KKPA), the loan term can be up to 15 years.                 10. Doing a gathering with other business associations
2. For the BPR linkage scheme, the loan term can be up to 15     11. Doing credit performance distribution
    years.                                                       12. Promoting online credit application (jconnect E-loan)
3. Accelerating the loan process through application             13. Promoting credit products through small, and medium
    development.                                                     enterprises exhibition
4. Competitive interest rates with competitor banks.             14. Promoting credit products to Bank social media
5. Loan installment schemes can be adjusted to suit the          15. Promoting credit marketing workshop, credit analysis, and
    debtor’s needs.                                                  credit monitoring
                                                                 16. Doing a training of credit application utilization
                                                                 17. Doing a trade finance training
                                                                 18. Doing a credit law aspect training
                                                                 19. Doing a pricing evaluation (rate and cost)
                                                                 20. Evaluating Credit Procedure
                                                                 21. Evaluating credit analysis application E-Loan



Commercial and Corporate Loans
Bank Jatim Commercial and Corporate Credits are productive credits with more than 25 billion rupiahs plafond up to 50 billion
rupiahs for Commercial Segment and more than 50 billion rupiahs for Corporate Segment. Bank Jatim Commercial and Corporate
Credits are managed by Commercial and Syndication, and Corporate Division.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
182    2023 Annual Report
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                                                                                      MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                   OF BANK PERFORMANCE




Commercial and Corporate Loans productivity is presented as follows.


Table of Commercial and Corporate Loans Productivity
				                                                                                                                       (in IDR million)


                                                                                                               Growth
                          Description                      2023                2022
                                                                                                   IDR                     %

                               (1)                          (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Commercial Segment                                        255,015             392,146            (137,131)              (34.97%)

 Corporate Segment *)                                    6,809,068            6,222,175            586,893                 9.43%

 Total Commercial and Corporate Loans Distribution       7,064,083           6,614,321            449,762                  6.80%

*) include Syndication Loans



The total of Commercial anf Corporate Credits distribution in        decrease was due to several debtors mutating in the middle
2023 are 7.06 trillion rupiahs, it increases 6.80% compared          segment and several debtors being repaid in 2023.
to 2022 with 6.61 trillion. It is caused by the credit growth
distribution in investment which grows into 2%, working capital      Corporate Credit Segment achieves 6.81 trillion rupiahs
loan installment with 96.01% and syndication credit with the         in 2023. It increases 9.43% compared to cut off position
percentage of 12.43%                                                 segmentation in 2022 with 6.22 trillion. It is affected by the
                                                                     distribution of general investments, working loan installment
Commercial Credit Segment in 2023 is 255.02 billion rupiahs,         and syndication.
it experiences a decline number 34.97% compared to the cut
off position in 2022 segmentation with 392.15 billion. This

Table of Commercial and Corporate Loans NoA
					                                                                                                                            (In NoA)


                                                                                                               Growth
                          Description                      2023                2022
                                                                                                   NoA                     %

                               (1)                          (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Commercial Segment                                        1,234               1,538               (304)                (19.77%)

 Corporate Segment *)                                        594                 768               (174)                (22.66%)

 Total NoA Commercial and Corporate Loans                  1,828               2,306               (478)                (20.73%)

*) include Syndication Loans



The number of Commercial Credit and Corporate Accounts are           are distributed for their repayment completion, hence the NoA
1,828 NoA In 2023, it decreases 20.73% compared to 2022              of Commercial segment is signifcantly declined.
with 2,306 NoA. It is caused by the reduction of Number of
Accounts in Commercial Segment with 304 NoA.                         The number of Corporate Credits are 594 NoA in 2023, it
                                                                     experiences a decline with 26.22% compared to 2022 with
The number of Commercial Credit are 1,234 NoA in 2023, it            768 NoA. This declining number is caused by some of NoA are
experiences a decline with 19.77% compared to 2022 with              distributed for their repayment completion, hence the NoA of
1,538 NoA. This declining number is caused by some of NoA            Commercial segment is signifcantly declined.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report           183
Page 186
Graph of Commercial and Corporate Loans Distribution                                                                       (in IDR million)



                           392,146                                                                     6,809,068
                                                                                       6,222,175




                                        255,015




                Commercial Segment Credit Distribution                          Corporate Segment Credit Distribution *)


                                 2022     2023                                              2022           2023
*) include Syndication Loans



Graph of NoA Commercial and Corporate Loans                                                                                      (In NoA)



                               1,538                                                      768


                                         1,234
                                                                                                          594




                         NoA Commercial Segment                                       NoA Corporate Segment *)


                                 2022     2023                                              2022           2023
*) include Syndication Loans



Commercial and Corporate Loans Strategy in 2023
The description of the Commercial, Corporate and Syndicated          5. Increasing the prospect of Number of Accounts (NoA) of
Loan strategies to be carried out in 2023 is presented as follows:      potential sectors by:
1. Building an organized and visualized sales pipeline.                 a. Mapping potential sectors with sector characteristics
2. Provision of loan restructuring stimulus and debtor                      where there is potential and current.
   monitoring of debtors whose business cycle was disrupted.            b. Approaching the debtor to enter the debtor’s business
3. Collaborating with other banks to provide syndicated                     association and obtain a list of prospective debtors.
   financing for Government projects and prospective private            c. Offers to SOEs/ROEs and private companies.
   businesses.                                                       6. Conducting socialization on updating the PSC Division’s
4. Participating in green financing (environmentally friendly           SOP and conducting training to improve the capacity of
   based)                                                               the officers in charge




          PT Bank Pembangunan Daerah Jawa Timur Tbk
184       2023 Annual Report
Page 187
                                                                                    MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                 OF BANK PERFORMANCE




Commercial and Corporate Loans Competitive Advantage               Commercial and Corporate Loans Strategy in 2024
and Innovation                                                     description of the strategy that will be implemented in 2024 by
Divisi Loans Komersial, Korporasi dan Sindikasi membuka            the Commercial, Corporate and Syndicated Loans Division is
kerjasama sebagai berikut:                                         presented as follows:
1. Collaborate with relevant companies for receivable credit       1. Build a sales pipeline in an organized and visualized
    through The Supply Chain Finance (SCF) mechanism to                manner.
    vendors or suppliers.                                          2. Providing stimulus for loan restructuring and debtor
2. Collaborate with other financial agencies to facilitate             monitoring of debtors whose business turnover is disrupted.
    credits for export comodity companies.                         3. Collaborate with other banks to provide syndicated
                                                                       financing for government projects and prospective private
Commercial and Corporate Loans Business Prospect                       businesses.
in 2024                                                            4. Take part in green financing (environmentally friendly)
Commercial Credit Divisions, Corporate, and Syndication do a       5. Increase the prospect of Number of Accounts (NoA) for
prospecting for State and Regional Owned companies in 2024             potential sectors by:
for East Java Region related to their well build pipeline for          a. Mapping potential sectors with the characteristics of
funding distribution either billateral or syndication.                     sectors where there is potential and progress.
                                                                       b. Approach debtors to enter debtor business associations
                                                                           and obtain a list of potential debtors.
                                                                   6. State and Regional Owned Companies Offering to private
                                                                       companies



Consumer Loans
Consumer Loans consisted of Multipurpose Loans, Employee Loans, Cash Collateral Credit (CCC), Motor Vehicle Loans, Property
Loans and Gold Backed Loans. A description of each Consumer Loan product is presented in the Profiles section of the Products and
Services Sub-Chapter in this Annual Report.


Consumer Loan productivity is described as follows:


Table of Consumer Loans Productivity
						                                                                                                                   (in IDR million)


                                                                                                              Growth
                       Description                        2023               2022
                                                                                                  IDR                    %

                           (1)                             (2)                (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Multipurpose Loans                                   25,193,188          23,801,592           1,391,596                 5.85%

 Employee Loans                                        2,023,504           2,077,126             (53,622)               (2.58%)

 Cash Collateral Credit (CCC)                            773,812              75,728             698,084               921.83%

 Motor Vehicle Loans                                     330,692              64,774             265,918               410.53%

 Gold Backed Loan                                          6,828               8,857              (2,029)              (22.91%)

 Property Loans                                        1,928,019           1,666,269             261,750                15.71%

 Total Consumer Loans Distribution                    30,256,043         27,694,345           2,561,698                 9.25%


Total Consumer Loans in 2023 will reach IDR30.26 trillion,         From the growth percentage, the cash collateral credit shows
an increase of 9.25% compared to 2022 which was IDR27.70           the highest growth which reach 921.83% because of cash
trillion. This increase mainly came from Growth Multipurpose       collateral application from the corporates. The second highest
Loans amounting to 5.85% or IDR1.39 trillion.                      growth is from Vehicles Loan with 410.53% followed by
                                                                   Property Credits with 15.71% and Multifunctional Credits with
                                                                   5.85%. Meanwhile Employee Credits declined to 2.58% and
                                                                   Gold Credit Assurance also decline into 22.91%




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Table of Number of Consumer Loan Debtors
						                                                                                                                             (in person)


                                                                                                                   Growth
                       Description                             2023              2022
                                                                                                      Debitur                  %

                           (1)                                   (2)               (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Multipurpose Loans                                          269,038            245,870                23,168                 9.42%

 Employee Loans                                                 6,931             5,653                 1,278                22.61%

 Cash Collateral Credit (CCC)                                   1,166               274                  892                325.55%

 Motor Vehicle Loans                                            2,784               991                 1,793               180.93%

 Gold Backed Loan                                                  202              279                  (77)               (27.60%)

 Property Loans                                                 8,713             8,373                  340                  4.06%

 Total Consumer Loans Debtors                                288,834            261,441               27,393                10.48%



Similar to the growth of Consumer Credits, the number of Consumer Credits Debtors from Bank Jatim in 2023 are 288,834. It
increases 27,393 debtors or 10.48% compared to 2022 with 261,441 debtors. The number improvemenr is caused by the growth of
Multifunctional Credits with 23,168 debtors.

Graph of Consumer Loans Distribution                 (in IDR million)    Graph of Consumer Loans Debtors                           (in person)



                                     30,256,243                                                             288,834
                      27,698,345                                                            261,441




                    Consumer Loan Distribution                                             Consumer Loan Debtors


                           2022          2023                                                  2022             2023


The descriptions of each consumer loan productivity are described as follows:
• Multipurpose Loans                                                    who are not profit oriented. The number of Employee Loans
   Multipurpose Loans in 2023 amounted to IDR25.19 trillion,            debtors increased by 1,278 debtors or 22.61% from 5,653
   an increase of IDR1.39 trillion or 5.85% compared to 2022 of         debtors in 2022 to 6,931 debtors in 2023.
   IDR23.80 billion. The number of Multipurpose Loans debtors       • Cash Collateral Credit (CCC)
   has increased by 9.42% from 245,870 debtors in 2022 to               Cash collateral credit in 2023 is IDR773.81 billion, an increase
   269,038 debtors in 2023                                              of IDR698.08 billion or 921.83% compared to 2022 of
• Employee Loans                                                        IDR75.73 billion. The number of cash collateral credit debtors
   Employee Loans in 2023 amounted to IDR2.02 trillion,                 increased by 892 debtors or 325.55% from 274 debtors in
   a decrease of IDR53 billion or 2.58% compared to 2022                2022 to 1,166 debtors in 2023.
   of IDR2.08 trillion. The outstanding decline is caused by        • Motor Vehicle Loans
   inexistence of stimulant for interest rate declining since 2020,     Motor Vehicle Loans in 2023 amounted to IDR330.69 billion,
   considering that skim is naturally facilitating the employees        an increase of IDR265.92 billion or 410.53% compared to




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                                                                                                 OF BANK PERFORMANCE




    2022 of IDR64.77 billion. The number of Motor Vehicle Loan      9. Marketing Optimization of Gold Guaranteed Credit Joint
    debtors increased by 1,793 debtors or 180.93% from 991             marketing carried out by all branches for Gold Guaranteed
    debtors in 2022 to 2,784 debtors in 2023.                          Credit.
•   Gold Backed Loan
    Gold Backed Loan reached 6.83% in 2023, experiences a           Consumer Loans Competitive Advantage and Innovation
    2.03 billion decline or 22.91% compared to 2022 with 8.86       The advantages of Consumer Loan products included the
    billion. The number of Gold Assurance debtors experienced       following:
    a 77 debtors decline or 27.60% from 279 debtors in 2022         1. Multipurpose Loans
    and becomes 202 debtors in 2023. The skim can be                     a. The broad market share included individuals with a
    implemented in all working areas of Bank Jatim, in fact,                fixed income.
    the skim only has two market shares area in Kangean and              b. Competitive interest rates, interest rates up to a single
    Bawean branches. It affects in the outstanding deline for               rate.
    Gold Assurance Credits.                                              c. Easy, simple requirements.
                                                                         d. The majority of loan payroll recipients were at Bank
•   Property Loans                                                          Jatim.
    Property Credits is 1.93 trillion in 2023, experiences an            e. The process was fast and precise according to the
    improvement with 261.75 billion or 15.71% compared to                   needs of prospective borrowers
    2022 with 1.67 trillion. The number of property credits              f. Diversification of KMG schemes to accommodate
    experiences a surging number with 340 debtors or 4.06%                  various types of debtor installment sources.
    from 8,373 debtors in 2022 becomes 8,713 debtors in                  g. KMG combo scheme so that debtors get a large
    2023.                                                                   ceiling.
                                                                    2. Motor Vehicle Loans
Consumer Loans Strategy in 2023                                          a. Broad market share included individuals with fixed and
A description of the business prospects and strategy for each               variable income as well as non-individuals (business
consumer loan product in 2023 is presented as follows:                      entities and legal entities).
1. Mapping and processing of potential customer data                     b. Down payment from 0%.
   Conducting potential data mapping based on internal                   c. Low interest rates, attractive, competitive.
   and external data as a database for the Account Officer               d. Cheap loan fees, free of charge for two-wheeled
   (AO) to market credit along with improving the Marketing                 motorized vehicles.
   Application (MAP) application as a marketing performance              e. Easy requirements.
   monitoring tool.                                                      f. The process was fast and precise in meeting the vehicle
2. Referral Program for Member Get Member It is an incentive                needs of prospective debtors.
   program for customers who can refer prospective borrowers             g. Cooperation with many dealers.
   at the Bank.                                                          h. There is an on loan feature, the cost of credit realization
3. Improvement of the E-KMG Version 2 application and                       is included in the plafond.
   the Marketing Application (MAP) for AO Consumer and                   i. There is an SB KKB relief incentive specifically for
   Property Loans                                                           environmentally sound vehicles of 0.25%-0.50%.
4. Multipurpose Credit Promotion Promotional program of                  j. Giving rewards to referrals from 4 (four) wheeled
   interest rates or fees for distribution of KMG Pre-retirement,           vehicles.
   Retirement, take over, addition of new NoA and top up                 k. The vehicle can be held in the name of another person
   (loyal debtor segment)                                                   within the family.
5. Collaboration PTN/PTS The Bank collaborates with State           3. Home Ownership Loans (KPR)
   Universities (PTN)/Private Universities (PTS) in distributing         a. Market share luas meliputi perorangan dengan
   educational multipurpose loans.                                          penghasilan tetap dan tidak tetap serta non perorangan
6. Distribution of Local Government Credit Cards (KKPD)                     (badan usaha dan badan usaha berbadan hukum).
   Development of the Virtual KKPD which has become the                  b. Uang muka mulai 5%.
   target of Bank Indonesia to maximize regional government              c. Suku bunga bervariasi sesuai kebutuhan calon debitur.
   budget and spending transactions.                                     d. Persyaratan mudah dan kompetitif.
7. Marketing Optimization of Motor Vehicle Loans (KKB) Carry             e. Kerjasama dengan banyak developer.
   out marketing through KKB Expo in all branches                        f. There is a fee for the financial manager.
8. Optimizing the marketing of Cash Collateral Credit Joint              g. Loans could be repaid before maturity or partial
   Marketing carried out by all branches for cash collateral                repayment.
   credit by targeting Depositsrs/savers > IDR500 million.




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4. Property Backed Consumption Loans (KKBP)                             b.   Recipients could apply for down payment subsidies.
   a. Broad market share included individuals with fixed and            c.   Minimum down payment of 1%.
       variable income as well as non-individuals (business             d.   Easy requirements.
       entities and legal entities).                                    e.   Fast loan process.
   b. Down payment from 5%.                                             f.   Low cost.
   c. Interest rates varied according to the needs of
       prospective borrowers.                                       The consumer loan innovations carried out in 2024 were as
   d. Easy and competitive terms.                                   follows:
   e. Cooperation with many developers                              1. Gatherings, evaluation and monitoring with Employee
   f. Loans could be repaid before maturity or partial                   Insurance Savings (Taspen) and the Regional Personnel
       repayment.                                                        Agency (BKD).
5. Cash Collateral Credit (CCC)                                     2. Gatherings, evaluation and monitoring of Branches.
   a. Broad market share included individuals with fixed and        3. KMG optimization stimulus program in the form of an
       variable income as well as non-individuals (business              external marketing program.
       entities and legal entities).                                4. Insurance premium subsidy program.
   b. Great credit score.                                           5. Have coffee together with developers, property agents and
   c. Cheap and competitive interest rates.                              property associations.
   d. Simple requirements.                                          6. Sponsorship by establishing communication and creating
   e. Fast process.                                                      opportunities with related parties.
   f. Low cost.                                                     7. Expo Jatim through all Bank Jatim products.
   g. Cash collateral in rupiah and foreign currencies              8. Promotion through branch image of property credit
   h. Collateral can use collateral in the name of another               products.
       person.                                                      9. Rewards by providing stimulus/for property account
6. KPR Sejahtera with the support of the Housing Finance                 officers.
   Liquidity Facility Fund (FLPP)                                   10. Property credit referral fee by providing stimulus for
   a. Loan recipients could have a dream house with very                 developers, marketing, property agents and the community.
       cheap interest rates and were fixed during the loan          11. Monitoring and visits to branches with maintenance
       period.                                                           debtors and developers.



THIRD PARTY FUND/SAVINGS
Third party funds in the conventional segment of Bank Jatim consisted of current accounts, savings and deposits.



Graph of Third Party Fund Productivity                                                                                  (in IDR million)




                             Current Account                           Savings                             Deposits

      2022                      23,477,047                           23,118,307                            30,543,334

      2023                      20,750,151                           24,817,360                            26,827,854




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Current Account
Giro or current account is a deposit that can be withdrawn              Clearing); Bank Jatim Cuurent Account could also be
at any time by using check/transfer form and other payment              opened in Rupiah and foreign currency (EUR, JPY, SGD,
order facilities, or by way of transfer. Bank Jatim’s current           and USD). Bank Jatim Current Account was available for
account is online at all of its branches so that withdrawals            the public (individuals and companies), as well as for local
and deposits can be made at all branches while Bank Jatim’s             governments.
check/ transfer form can be cleared anywhere (Intercity


Bank Jatim Current Account productivity is described as follows:


Table of Current Account Productivity		
					                                                                                                                         (in IDR million)


                                                                                                                  Growth
                    Description                             2023                  2022
                                                                                                      IDR                     %

                           (1)                                (2)                  (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Local Government Current Account                         11,971,999           17,766,614          (5,794,615)             (32.62%)

 General Current Account                                   8,778,152            5,710,433           3,067,719               53.72%

 Total                                                    20,750,151           23,477,047         (2,726,896)              (11.62%)


Current accounts in 2023 reached IDR20.75 trillion, down                level II Regional Governments. Regional Government Current
11.62% compared to 2022 which reached IDR23.48 trillion.                Accounts in 2023 amounted to IDR11.97 trillion, a decrease of
This decrease mainly came from Regional Government Current              32.62% compared to 2022 which amounted to IDR17.77 trillion.
Accounts amounting to IDR5.79 trillion. Regional Government             Meanwhile, General Current Accounts increased by 53.72%,
Current Accounts were current accounts belonging to level I and         from IDR5.71 trillion in 2022 to IDR8.77 trillion in 2023.



Savings
Bank Jatim savings consisted of Simpeda Savings, Hajj Savings, Siklus Savings, TabunganKu (My Saving), Student Savings (SIMPEL),
Smart Savings (SiPandai) Siklus Nelayan (Sinyal).


Bank Jatim Savings productivityis described as follows:


Table of Savings Productivity		
					                                                                                                                         (in IDR million)


                                                                                                                  Growth
                    Description                             2023                  2022
                                                                                                      IDR                     %

                           (1)                                (2)                  (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Simpeda                                                  16,537,443           16,468,555              68,888               0.42%

 Siklus                                                    3,919,452            2,655,680           1,263,772              47.59%

 Hajj Savings                                                17,161                18,428              (1,267)             (6.88%)

 TabunganKu                                                4,240,335            3,904,028             336,307               8.61%

 Simple Savings                                             102,555                71,322              31,233              43.79%

 Sinyal Savings                                                   414                    294              120              40.82%

 TOTAL                                                    24,817,360           23,118,307          1,699,053                7.35%


Total savings in 2023 reached IDR24.82 trillion, an increase of 7.35% compared to 2022 which reached IDR23.12 trillion. This increase
mainly came from increased growth in Cycle Savings which reached IDR1.26 trillion.




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The description of savings performance is presented as follows:
• Simpeda                                                               •   TabunganKu
   In 2023, the amount of Savings Simpeda will be IDR16.53                  Total funds collected from TabunganKu products in 2023
   trillion, an increase of IDR68.88 billion or 0.42% compared              amounted to IDR4.24 trillion, an increase of IDR336.31
   to 2022 of IDR16.46 trillion. This is in line with the increase          billion or 8.61% compared to 2022 of IDR3.90 trillion.
   in the number of Savings Simpeda customers which also                    This increase is in line with the number of customers of
   experienced an increase of 2.86% due to growth in financial              TabunganKu products due to the large number of financial
   literacy in regional environments.                                       literacy enthusiasts in the school environment.
• Siklus                                                                •   Simpanan Pelajar (Simpel)
   The amount of funds raised from Siklus Savings in 2023 will              Total Student Savings (SIMPEL) in 2023 will be IDR102.56
   be IDR3.92 trillion, an increase of IDR1.26 trillion or 47.59%           billion, an increase of IDR31.23 billion or 43.79% compared
   compared to 2022 of IDR2.66 trillion. This decline is in line            to 2022 of IDR71.32 billion. This is in line with the increase
   with the decline in the number of Silus Savings customers                in the number of Student Savings (SIMPEL) customers due
   considering the decline in public financial activity amidst              to the increase in promotional programs in the student
   the Covid-19 pandemic. This decrease is in line with                     environment.
   the decline in the number of Siklus Savings customers                •   Simpanan Nelayan (Sinyal)
   considering the decline in public financial activity amidst              Total Fisherman Savings (Sinyal) in 2023 will be IDR414
   the Covid-19 pandemic.                                                   million, an increase of IDR120 million or 40.82% compared
• Hajj Savings                                                              to 2022 of IDR294 million. This is in line with the decline
   The amount of Hajj Savings in 2023 will be IDR17.16 billion,             in the number of Sinyal Savings customers considering
   down IDR1.26 billion or 6.88% compared to 2022 of IDR18.43               that the fishing population is smaller and people are more
   billion. Furthermore, the number of Hajj Savings customers               interested in Savings Simpeda due to the prize and lottery
   has decreased due to the reduction in the Hajj quota in 2022.            promo programs.



Deposits
Time deposits are the best choice for individuals and companies who want to invest their funds in a safe and reliable place. Funds
are guaranteed by the Government through the Deposit Insurance Corporation (LPS) with certain conditions. Time Deposits can be
opened in Indonesia Rupiah and Foreign Currency (USD and SGD).


Bank Jatim Deposits productivity is described as follows:


Table of Deposits Productivity
						                                                                                                                         (in IDR million)


                                                                                                                    Growth
                    Description                               2023                2022
                                                                                                        IDR                    %

                         (1)                                   (2)                  (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Deposits                                                  26,827,854           30,543,334           (3,715,480)             (12.16%)



Bank Jatim deposits can be used as collateral for loans with competitive interest rates and can be negotiated. Deposits in 2023 will
reach IDR26.83 trillion, a decrease of 12.16% compared to 2022 which reached IDR30.54 trillion. This is in line with the decline in
customers because in 2023 many customers will use these funds for Regional Government projects.


Third Party Fund Strategy in 2023
The description of the third party fund strategy carried out in         3. Optimizing QRIS implementation through the 0% MDR
2022 was as follows:                                                       Promo program and free initial deposit for opening a new
1. Distribution of Assistance Programs with Non-Cash                       QRIS, QRIS merchant branding, transaction promos at
    Systems.                                                               QRIS merchants and event sponsorship.
2. Collaboration with the East Java Provincial Education                4. DPK Promo Programs such as Gen 1 Like Cycle, Gen 2 Like
    Office in order to open a savings account for every student            Cycle, Cash Pro, Love Cycle, Ramadhan Cycle, Yes Fresh
    in East Java (KEJAR).                                                  Fund Promo and Top Up.




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5. Simpeda Savings Lottery Program and Cycle Savings
    Lottery.                                                         Third Party Fund Strategy in 2024
6. Participation in OJK Financial Inclusion Month activities.        The description of the third party fund strategy that will be
7. Participation in event sponsorship in the Bank Jatim              carried out in 2024 is as follows:
    working area.                                                    1. Collaboration in Financial Services in the retail and
8. Branch assistance in approaching corporate customers.                 individual segments through QRIS.
9. Optimizing support for branches by playing an active role in      2. Implementing the Joint Commitment between the
    accelerating the process of submitting deposit negotiation           Governor of East Java, OJK and Bank Jatim regarding the
    requests.                                                            KEJAR (One Student Account) program.
10. Promo program for Corporate Current Account (Go-                 3. Opening savings accounts for students in East Java with initial
    Speed).                                                              deposit stimulation targeting approximately 50,000 accounts.
11. Optimizing cooperation with institutional customers for          4. Simple Day activities, financial literacy and inclusion,
    funding collaboration opportunities such as payment of               collaboration with government and OJK programs,
    membership fees, payment of claims, distribution of TNI/             collaboration with school programs including Bank Mini.
    Polri and ASN pension salaries.                                  5. QRIS merchant acquisition program, targeting modern
12. Gathering with prospective customers in the private sector           market traders, malls and traditional traders.
    with the East Java CEO community.                                6. Bank Jatim QRIS merchant branding and promo program.
                                                                     7. Thematic DPK promo program (Current Accounts, Savings
Third Party Fund Competitive Advantage and Innovation                    and Deposits)
The competitive advantages and innovations that third party          8. Participation in OJK Financial Inclusion Month activities.
funds have are as follows:                                           9. Participation in event sponsorship in the Bank Jatim
1. Financial education and literacy services within the scope            working area.
    of East Java education.                                          10. Bank Jatim Savings Lottery Program.
2. Transaction promo program at QRIS Bank Jatim merchants.           11. Approaching various relations, associations and potential
3. Providing added value to customers by providing raffles               markets to explore the potential of DPK, especially in
    and promos to all types of customers.                                corporations.
4. Collaboration with branches in the approach to closing and        12. Service development by collaborating with several
    maintenance of corporate customers.                                  Ministries, Departments at both the Provincial and Regency/
5. Increasing bonding between customers and Bank Jatim so                City levels in order to provide financial services, as well as a
    that it will provide heart-to-heart service to customers.            form of Bank Jatim support for the development of the East
                                                                         Java economy.
Third Party Fund Business Prospect in 2024                           13. Collaboration with business/non-business divisions and
A description of the third party fund business prospects which           branches regarding mapping of potential corporate
are as follows:                                                          customers.
1. Thematic promotional program.                                     14. Development and utilization of the payment ecosystem on
2. KEJAR (One Student Account).                                          the e-commerce platform of Bank Jatim partners (Kompas
3. Optimizing QRIS implementation.                                       Gramedia Group, Blibli.Com, JatimBejo).
4. Savings Lottery Program.                                          15. Development        of    web-based        Regional     Financial
5. New cooperation approaches and maintenance of existing                Electronification as a monitoring effort for all regional
    cooperation between retail and individual customers.                 apparatus and Bank Jatim in particular.
6. Promo Program for Special Giro (Go-Speed)                         16. Initiated the centralization of regional business service
7. Optimizing corporate customers who have become                        agency (BLUD) fund management agreements, with Bank
    customers by expanding coverage from upstream to                     Jatim’s financial service facilities (both in the form of offline
    downstream of the customer ecosystem.                                services and Bank Jatim’s digitalization program).


OTHER SERVICES
Other services consist of Treasury, International Banking and Bank Jatim Custodian.


Treasury
In line with Treasury’s role as one of the pillars of Bank Jatim’s   an optimal contribution to Bank Jatim’s profits in the form
profit growth supported by professional and reliable staff,          of interest and non-interest income (fee base income). In its
the Treasury Division continued to improve Treasury business         management, banks faced global and domestic markets which
activities. The main role of the Treasury in banking was to          moved very dynamically so that they had to always go hand in
maintain adequate bank liquidity and be responsible for              hand with the latest market developments, especially from a
managing the bank’s assets and liabilities as well as making         regulatory and business perspective.




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
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Treasury business basically became a complement and                     foreign exchange transactions (foreign exchange) which
balancing the main business of the bank in the field of                 are carried out by dealing room units under the Treasury
fundraising and lending as an intermediary institution.                 Division. These transactions are interbank conducted with
Treasury functioned to optimize access to existing funds in             Bank and non-Bank counterparties (securities).
various Treasury instruments both in the money market and
capital market with yield enhancement motives. Conversely,              Bank Jatim’s Treasury business consisted of portfolio
if funds were needed other than third party funds; the                  management for placements with Bank Indonesia,
Treasury’s role was to seek funds in the market either through          placements with other banks, securities and reverse repo.
interbank loans, repos or issuance of debentures. Bank Jatim            As of December 2023, yoy there was a decrease in portfolio
Treasury business included money market transactions                    management by 15.77% from IDR43,281 billion in 2022 to
(money market), securities transactions (fixed income) and              IDR36,431 billion in 2023.


Graph of Total Treasury Asset Management                                                                                         (in IDR million)


                                                            45,281,074
                                                                                            43,251,010

                                                                                                                         36,430,876
                                   33,911,368
        29,707,332




          2019                       2020                        2021                         2022                            2023



Table of Total Treasury Asset Management Position as of December 2022-2023
                                                                                                                                 (in IDR million)


                                                                                                                     Growth
                     Description                          2023                    2022
                                                                                                         IDR                     %

                         (1)                               (2)                     (3)               (4) = (2)-(3)        (5) = (4)/(3)

 Total Treasury Asset Management                       36,430,876              43,251,010             (6,820,134)              (15.77%)



The decrease in the amount managed by Treasury resulted                 its Treasury business with interest income of IDR2,160 billion
in a yoy decrease in interest income from the investment                in 2023. This income was also supplemented by fee based
returns of all portfolios managed by Treasury in 2023 when              income originating from foreign exchange transactions
compared to 2022. The trend of increasing interest rates                amounting to IDR18.33 billion, up 132% from last 2022
that occurred during 2023, was still utilized well even though          amounting to IDR13.85 billion, so the total revenue recorded
Treasury managed funds experienced a decline. Due to this               by Treasury was IDR2,179.27 billion.
decline, the bank still recorded quite good performance in
Table of Treasury Productivity 2022-2023
					                                                                                                                            (in IDR million)


                                                                                                                     Growth
                     Description                          2023                    2022
                                                                                                         IDR                     %

                         (1)                               (2)                     (3)               (4) = (2)-(3)        (5) = (4)/(3)

 Placement with Bank Indonesia                             16,392                  64,104                (47,712)               (74.43%)

 Placement with Other Bank                                184,249                  87,834                 96,414                109.77%




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                                                                                                      OF BANK PERFORMANCE




                                                                                                                    Growth
                    Description                              2023                 2022
                                                                                                         IDR                    %

                            (1)                               (2)                  (3)              (4) = (2)-(3)         (5) = (4)/(3)

 Securities                                                1,547,907             1,693,451             (145,544)               (8.59%)

 Reverse Repo Receivables                                    412,391              459,760               (47,369)              (10.30%)

 Total                                                     2,160,938            2,305,149             (144,211)               (6.25%)



Economic turmoil, which is still influenced by geopolitical            Treasury Competitive Advantage and Innovation
conflicts which cause global inflationary pressures and the            As the business sector continues to grow from large, medium to
State’s response by increasing interest rates, is the main             MSMEs scale. It has helped to encourage the economic recovery
challenge faced by the Treasury Division. Throughout 2023,             after the Covid-19 pandemic. It has also had a positive impact
Bank Indonesia has increased the BI 7-Day Reverse Repo                 to the Treasury business, especially for the retail segment. The
Rate (BI7DRR) interest rate by 50 bps from 5.50% to 6.00%.             competition in the digital services landscape within the banking
Most Treasury activities were directly affected by changes             industry requires ongoing innovation from each bank, compelling
in trends that occurred in several economic indicators,                them to deliver the best services to every customer. In order to
both global and domestic. The annual decline in Treasury               increase productivity and provide a sustainable contribution to the
income was due to a decrease in total Treasury assets under            Bank’s performance in general, during 2023, Treasury expanded
management, which in 2023 would be diverted to lending                 foreign exchange transactions, both telegraphic transfers and
which produced higher yields compared to Treasury yields.              banknotes with a concrete strategy by adjusting policies regarding
Apart from that, managing market risk on Treasury managed              minimum transactions so that customers can negotiate for foreign
portfolios would also be the main focus of activity in 2023 in         exchange buying and selling transactions (special rates). Treasury,
line with the trend of increasing interest rates which greatly         together with the branch offices, carried out join marketing/
influenced the level of yields and prices of securities. Facing        canvassing to the potential customer and continued a series of
this, the Bank took steps to reprofil its portfolio while still        development processes for the foreign exchange conversion
paying attention to risk management aspects.                           feature on the Bank’s mobile banking application which entered
                                                                       the user acceptance stage. In addition, Treasury collaborated
Bank Jatim’s liquidity condition during 2023 experienced a             with International Banking division and carried out business
slight decline from the previous year but was considered still         collaborations with Money Transfer Operator company located
quite fair, because credit growth and bank financing grew              in Malaysia to provide easy services in terms of remittance for
quite significantly. In order to optimize income from idle funds,      the Indonesian migrant workers so that it can facilitate money
banks would still provide the largest portion for managing             transfer activities to their family and relative in Indonesia via the
Securities in the capital market in 2023, considering that             JConnect Remittance service. This business practice proved to be
this portfolio provided quite high returns when compared to            contributing a significant contribution to both parties, both for the
other instruments. The purchase of Securities was primarily            Bank and the Money Transfer Operator company.
intended to fulfill the Macroprudential Liquidity Buffer (PLM)
ratio, the Macroprudential Intermediation Ratio (RIM) was              Treasury Business Prospect dan Strategi Bisnis for 2024
also used as an investment instrument that could increase              In 2024, Bank Jatim will still face a challenging year for the
interest income for the bank.                                          Treasury business due to uncertainty caused by increasing
                                                                       recession risks in various countries as well as the global pressure
Bank Jatim was also able to manage liquidity efficiently               because of geopolitical crisis. Treasury will continue to strive to
by continuing to apply the principle of compliance with                improve its role in optimizing bank business growth in terms
Indonesian Bank regulations regarding Minimum Statutory                of managing liquidity, raising funds, increasing profits, and
Reserves and Net Open Position (PDN) throughout 2023.                  increasing transactions in accordance with Treasury’s commitment
Realization of Rupiah GWM on December 31 2023 was                      to increase positive contributions to Bank Jatim. In the idle fund
8.85% which included incentives GWM was 2.80%. The Bank                management, Treasury will still optimize it through investment by
Indonesia Rupiah GWM provisions were 9%. Meanwhile, the                prioritizing the principle of prudence in instruments that generate
realization of GWM in foreign exchange on December 31                  high yields for the Bank, especially by maintaining the size of the
2023 was 6.62% above Bank Indonesia’s regulation of 4%.                existing securities portfolio. In addition, there will be increased
For Bank PDN, the realization on December 31, 2023 was                 synergies and partnerships with counterparties in developing the
0.44%, still within the Bank Indonesia regulatory limit of 20%.        Treasury business while still prioritizing the principle of prudence.




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          2023 Annual Report         193
Page 196
In order to increase transactions and obtain fee-based                  related units will increase business collaboration with Money
income and expand bank market share, improving client                   Transfer Operator companies abroad. This is related to
flow through optimizing Treasury’s products and services will           JConnect Remittance which aims to provide the easy money
be the main focus of Bank Jatim’s Treasury business which               transfer services from abroad for Indonesian workers spread
is expected to grow a sustainable business. Marketing to                across various parts of the world to send funds to families
the foreign exchange loans and savings customer and those               in Indonesia in real time at affordable costs. The recorded
who need foreign exchange for export-import transactions                transaction volume in 2023 reached IDR2.2 trillion, creating
throughout Indonesia in general and the East Java region                several opportunities such as additional third party funds
in particular will be the main focus of strategy to increase            and a significant increase in fee-based income obtained from
foreign exchange transactions in the retail segment. Treasury,          every transaction carried out by migrant workers.
together with the Internatonal Banking Division as leader and


International Banking
International Banking products include remittance transactions,         		 2. To create a comprehensive Bank Jatim Remittance
export-import transactions, and domestic L/C transactions. An                        service to meet customer needs by paying attention
explanation of each product has been presented in the Products                       to the speed, accuracy, and security of transactions.
and Services Sub-Chapter Profile section in this Annual Report.         Mission : 1. To create, develop, and maintain Bank Jatim’s
                                                                                     trade finance and remittance products and services
International Banking is managed by International Banking                            in order to get a comparative and competitive
Division. International Banking Devision was formed in July                          advantage and market acceptance.
2023 in accordance with the Decree Number: 061/218/                     		 2. To build a marketing system capable to drive Trade
DIR/PRS/KEP dated December 7, 2022 concerning the                                    Finance marketing activities and all Bank Jatim
Organizational Structure and Work Procedure. The International                       work units as an effort to increase the Bank Jatim’s
Banking Division has duties and responsibilities to business                         trade finance and remittance business transactions.
management In the form of remittance, trade finance, and bank           		 3. To provide adequate service in making payments to
to bank business. For Remittance and Trade Finance business,                         and from abroad quickly, safely, and at competitive
The Internatinal Banking Division has responsibility for                             costs.
managing the end to process, from marketing to operational              		 4. To provide the best remittance service supported
processes. To contribute to the company revenue and principle                        by a trusted system.
of Corporate Governance, as follows:
Vision : 1. To make Bank Jatim as the first and leading
             Regional Development Bank (BPD) through the
             efforts to develop trade finance products (product
             re-engineering) and comprehensive marketing
             strategies.



International Banking productivity is described as follows:


Table of International Banking Productivity
			                                                                                                                           (in IDR million)


                                                                                                                    Growth
                     Description                              2023                2022
                                                                                                        IDR                   %

                          (1)                                  (2)                  (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Remittance Transaction                                   2,761,382                743,416            2,017,966              271.45%

 Import Export Transactions                                   302,468              144,824              157,644              108.85%

 Domestic L/C Transaction (SKBDN)                              55,917               14,506               41,411              285.47%




        PT Bank Pembangunan Daerah Jawa Timur Tbk
194     2023 Annual Report
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                                                                                              MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                           OF BANK PERFORMANCE




Graph of International Banking Productivity                                                                                             (in IDR million)



                           2,761,382                                            302,468                                           55,917




                                                              144,824


          743,416                                                                                                14,506




           Remittance Transaction                           Eksport Import Transaction                             SKBDN Transaction


               2022            2023                               2022            2023                               2022            2023


In 2023, the performance of trade finance and remittance                          and acquisition process were relatively easier to carry out.
products at Bank Jatim experienced a significant increase                         Moreover, the Treasury Division of Bank Jatim played a pivotal
(>200%). It reflected Bank Jatim’s progress as foreign exchange                   role in offering competitive rates, facilitating the acquisition of
Bank in the domestic and international markets amidst the                         numerous customers in 2023.
economic conditions that started to improve after the global                -     Domestic L/C Transactions
pandemic. Bank Jatim’s programs in preparing human resources                      Bank Jatim’s domestic L/C transactions in 2023 amounted to
and strategies to respond to this has resulted in a good result,                  IDR55.92 million, an inrease of 285.47% compared to 2022
proved by the results of performance achievements in 2023. The                    which amounted to IDR14.51 million. The human resources
following is the detailed analysis of the increase in performance                 in Bank Jatim, both the marketing and operational unit were
of trade finance and remittance product in Bank Jatim.                            ready and competent in marketing and executing the domestic
- Remittance Transactions                                                         L/C transactions. Marketers who adopted a customer-centric
     Bank Jatim’s remittance transactions in 2023 amounted to                     approach were capable of providing precise advice to the
     IDR2.76 trillion, an increase of 271.45% compared to 2022                    existing and potential customers. This approach ensured that
     which amounted to IDR743,42 million. The development of                      customers felt supported, so the customer maintenance and
     collaborative remittance products carried out by Bank Jatim is               acquisition process were relatively easier to carry out.
     one that makes significant contributions to the performance of
     Remittance transactions. The strategy of opening the corridors         International Banking Strategy in 2023
     and collaborating with the new remittance counterparts                 The strategy carried out by International Banking Division as
     resulted in an increase in Bank Jatim’s Remittance transactions.       one of Bank Jatim’s business divisions is as follows:
     In addition, marketers from Branches, Sub-Branches as well             1. Market Intelligence
     as the Head Office Business Division had contributed to the                By developing business processes through benchmarking
     marketing efforts of Bank Jatim’s foreign exchange products.               at other banks and conducting customer satisfaction
     Moreover, the Treasury Division of Bank Jatim played a pivotal             surveys.
     role in offering competitive rates, facilitating the acquisition of    2. Product and Services Development Proposal
     numerous customers in 2023.                                                Carrying out product innovations, updating internal
- Export-Import Transactions                                                    regulations, and penetrating foreign markets (opening
     Bank Jatim’s export-import transactions In 2023 amounted                   new corridors and collaborating with new remittance
     to IDR302.47 million, an increase of 108.85% compared to                   counterparts).
     2022 which amounted to IDR144.83 million. The human                    3. Third Parties Reciprocal Relation
     resources in Bank Jatim, both the marketing and operational                Collaborating with third parties including Remittance
     unit were ready and competent in marketing and executing                   Counterparts/Money Transfer Operator (MTO), synergizing
     the export-import transaction, both under the letter of credit             with the Department of Manpower, Indonesian Migrant
     and non letter of credit. Marketers who adopted a customer-                Worker Placement Companies, synergizing with export-
     centric approach were capable of providing precise advice to               import associations or communities such as GPEI, ECS,
     the existing and potential customers. This approach ensured                ICC, and other Export-Import Associations.
     that customers felt supported, so the customer maintenance




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report            195
Page 198
4. Marketing Action                                                      receive funds from/to Indonesia. It is hoped that in the coming
   Carrying out appropriate marketing communications to                  year there will be an increase in foreign exchange transactions
   increase brand awareness, either through certain marketing            through Bank Jatim.
   tools or promotional programs and event sponsorship,
   actively carrying out internal and external marketing                 International Banking Business Prospect for 2024
   (to business units at the Head Office, Branches, Sub-                 Until the end of December 2023, the total volume of foreign
   branches or potential customers), holding gatherings with             exchange transactions at Bank Jatim reached the equivalent
   stakeholders (in this case, with Government Services, the             of IDR3.12 trillion (remittance transactions, letter of credit
   Indonesian Migrant Worker community, MTO, and MSMEs                   and domestic L/C) or reached ±175.28% of the transaction
   that have foreign exchange transaction activities.                    volume target set for 2023. This achievement provided an
                                                                         overview of the opportunities for revenue from the foreign
International Banking Competitive Advantage                              exchange transactions, one of which was by developing
and Innovation                                                           MSMEs in the East Java region to become foreign exchange
In line with the vision and mission of BPD Jatim, the International      pendulum villages and by becoming foreign exchange
Banking Division seeks to make breakthroughs, namely through             pendulum villages, MSMEs can export the results of their
Foreign Exchange Pendulum Village and J-Export and Trade                 business abroad so that it is hoped that they can also improve
Assistance (JXTA) programs, as well as collaboration with                the welfare of the people in that region. Then, it will increase
Remittance Counterparts/Money Transfer Operator (MTO) as a               the number of collaborations with Remittance Counterparts/
way to develop MSMEs in East Java and provide assistance for             Money Transfer Operator (MTO) to open new remittance
Indonesian Migrant Workers abroad with transactions to send/             transaction corridors abroad as form of Bank Jatim revenue
                                                                         in the form of foreign exchange.



Bank Jatim Custodian
Treasury Business PrBank Jatim obtained an operating permit              3. Management of customer’s rights over ownership of
for custodian services from the Otoritas Jasa Keuangan                      securities held so that the rights are effective in the
(OJK) under the letter No. S4/ PM.2/2019 dated January 29,                  customer’s account (corporate action).
2019. Bank Jatim Custodian is part of the Funds and Services             4. Proxy at the General Meeting of Shareholders and
Division, Retail and Individual Funds and Services Sub-Division,            General Meeting of Bondholders.
the services provided include:                                           5. Sub-Registry to serve investors conducting Securities
1. Safekeeping and administration of Securities (corporate                  transactions and investments
    bonds, medium term notes, negotiable certificates of                 6. Submission of reports and information related to
    deposit, sukuk, etc.) in script or scriptless form.                     securities and/or valuable documents belonging to
2. Settlement of sale-purchase transactions of Securities.                  customers, which are stored and administered by Bank
                                                                            Jatim Custodian.


Bank Jatim Custodian productivity is described as follows:


Table of Bank Jatim Custodian Productivity
				                                                                                                                          (in IDR million)


                                                                                                                    Growth
                     Description                               2023                2022
                                                                                                        IDR                   %

                          (1)                                   (2)                 (3)             (4) = (2)-(3)        (5) = (4)/(3)

 ASSET UNDER CUSTODY

 January                                                     1,891,700            1,877,900              13,800               0.73%

 February                                                    2,128,700            1,737,900             390,800              22.49%

 March                                                       2,063,700            1,815,900             247,800              13.65%

 April                                                       2,030,700            1,805,900             224,800              12.45%

 May                                                         1,873,144            1,761,400             111,744               6.34%

 June                                                        1,918,089            1,730,100             187,989              10.87%

 July                                                        2,065,102            1,821,600             243,502              13.37%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
196      2023 Annual Report
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                                                                                                             MANAGEMENT DISCUSSION AND ANALYSIS
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                                                                                                                                           Growth
                         Description                                      2023                       2022
                                                                                                                              IDR                           %

                             (1)                                           (2)                         (3)                (4) = (2)-(3)            (5) = (4)/(3)

 August                                                               1,766,159                     2,274,600                (508,441)                 (22.35%)

 September                                                            1,802,449                     2,224,600                (422,151)                 (18.98%)

 October                                                              2,220,286                     2,109,600                 110,686                       5.25%

 November                                                             2,295,255                     1,895,700                 399,555                   21.08%

 December                                                             2,225,265                     1,891,700                 333,565                   17.63%

 Mature Effect                                                            878,000                   1,291,900                (413,900)                 (32.04%)

 Settled Market Securities                                                 20,000                              0                  20,000                           -



Total assets under custody in 2023 reached IDR2.22 trillion, an increase of 17.63 % compared to 2022 which reached IDR1.89 trillion.
The increase was due to the increasing number of custodian customers and managed securities.


Graph of Bank Jatim Custodian Securities Managed Fund                                                                                                       (in IDR million)




             January      February     March        April       May              June        July            August   September     October     November        December

  2022       1,877,900    1,737,900   1,815,900   1,805,900   1,761,400     1,730,100      1,821,600     2,274,600    2,224,600     2,109,600   1,895,700       1,891,700

  2023       1,891,700    2,128,700   2,063,700   2,030,700   1,873,144     1,918,089      2,065,102     1,766,159    1,802,449     2,220,286   2,295,255       2,225,265



                                                                       2022                2023


Custodian service customers consist of Bank Jatim internal and external customers. Internal customers do not directly provide
income and profit, but there are cost efficiencies for securities previously held by the Treasury Division at other custodian banks.



Bank Jatim Custodian in 2023                                                            Bank Jatim Custodian Competitive Advantage
The strategies that had been carried out by the Custodian Bank                          and Innovation
Jatim throughout 2023 are presented as follows:                                         Bank Jatim Custodian competitive advantage and innovations
1. Cooperating with Custodian Services with the Pension                                 include:
    Fund Foundation in East Java.                                                       1. Competitive safe keeping costs.
2. Collaborating with Custodian Services with the Regency                               2. Provide additional services related to reporting for free.
    and City Regional Financial and Asset Management
    Agencies (BPKAD) in the East Java region.
3. Marketing custodial services to fellow Regional Development
    Banks (BPD) with more competitive storage costs.




                                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                              2023 Annual Report                   197
Page 200
Bank Jatim Custodian Business Prospect for 2024                        Bank Jatim Custodian Strategy for 2024
The business prospects of Bank Jatim Custodian in 2023 are             The strategy to be carried out by the Bank Jatim Custodian for
as follows:                                                            2024 is as follows:
1. Collaboration of Custodian Services with Pension Fund               1. Updating the core custodial system that can accommodate
    Foundations in the East Java region.                                  reconciliation, electronic proxy delivery and adjustments to
2. Collaboration of Custodian Services with Regional-Owned                C-Best Next G.
    Enterprises and Private Companies in the East Java region.         2. Development of a core custodian system related to menu
3. Cooperation of Custodian Services with BPD in Indonesia.               inquiry facilities for custodian customer portfolios.
                                                                       3. Marketing custodial services to fellow BPD Banks with more
                                                                          competitive deposit fees.
                                                                       4. Marketing custodial services to Pension Fund Foundation in
                                                                          the East Java region with more competitive storage costs.




Conventional Segment Income and Profitability

Conventional segment operating income in 2023 reached IDR5,458,757 million, a decrease of 8.64% compared to the previous year
which reached IDR5,975,236 million. The decrease came from a decrease in interest income other operations.


Conventional segment operating profit in 2023 reached IDR1,821,231 million, a decrease of 4.25% compared to the previous year
which reached IDR1,902,035 million. This decrease came from an increase in CKPN credit formation decline in operating profit and
other operating income.


Table of Conventional Segment Income and Profitability
			                                                                                                                         (in IDR million)


                                                                                                                  Growth
                        Description                         2023                 2022
                                                                                                      IDR                   %

                            (1)                              (2)                  (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Asset                                                   100,234.184           99,959,909            274,275                0.27%

 Liability                                                88,117,360           88,554,718          (437,358)               (0.49%)

 Operating Income                                          5,458,757            5,975,236          (516,480)               (8.64%)

 Operating Profit                                          1,821,231            1,902,035            (80,805)              (4.25%)




Sharia Segmen                                                          Sharia Segment Explanation and Productivity

Bank Jatim sharia segment consisted of third-party funds/              THIRD PARTY FUND SHARIA
deposits, financing and services. Network expansion is a               Sharia third party funds consist of iB Barokah Current Account
supporting factor for the development of the Sharia Business           (Wadi’ah), iB Barokah Current Account (Mudharabah), Simpel iB
Unit (UUS) of Bank Jatim. Customers can perform banking                Savings, TabunganKu iB, Umroh iB Amanah Savings, SiPandai
transactions easily through the UUS network which included             iB Barokah Savings, Santri (Student) Savings, Barokah Savings,
7 (seven) Sharia Branch Offices, 10 (ten) Sharia Sub-Branch            iB Barokah Sejahtera Savings, Hajj iB Amanah Savings, Haji iB
Offices, 4 (four) Cash Offices, 8 (eight) Sharia Payment Points,       Amanah Savings, iB Barokah Pension and Barokah Deposits.
217 Agents of Laku Pandai Sharia, 196 Sharia Service Offices           An explanation of each Sharia Funding product has been
(KLS), 26 (twenty six) ATM machines, 10 (ten) CRM ATM                  presented in the Profiles section of the Products and Services
Machine and 7 Mobile Cash Cars.                                        Sub-Chapter in this Annual Report.




             PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                            MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                         OF BANK PERFORMANCE




The description amount of Sharia Funding Segment is presented as follows:


Table of Sharia TPF Productivity		
			                                                                                                                               (in IDR million)


                                                                                                                     Growth
                      Description                              2023                  2022
                                                                                                         IDR                      %

                             (1)                                (2)                   (3)            (4) = (2)-(3)         (5) = (4)/(3)

 Current Account iB Barokah (Wadiah)                           174,426               156,090              18,336                 11.75%

 Current Account iB Barokah (Mudharabah)                         1,786                 1,636                 150                  9.17%

 Simple Savings iB                                              10,255                 7,083               3,172                 44.78%

 TabunganKu iB                                                  63,673                56,222               7,451                 13.25%

 Umroh iB Amanah Savings                                         5,304                 4,004               1,300                 32.47%

 SiPandai iB Barokah Savings                                          16                    15                  1                 6.67%

 Santri (Student) Savings                                        1,877                      13             1,864              14,338.46%

 Barokah Savings                                               354,156               297,416              56,740                 19.08%

 Barokah Sejahtera Savings                                       7,917                 7,374                 543                  7.36%

 Hajj iB Amanah Savings                                        354,921               288,567              66,354                 22.99%

 IB Barokah Savings Plan                                         1,440                 1,217                 223                 18.32%

 IB Barokah Pension Savings                                           37                    23                 14                60.87%

 Barokah Deposits                                            1,626,798              1,245,458            381,340                 30.62%

 Total                                                       2,602,606             2,065,118            537,488                  26.03%



In 2023, the realization of Sharia DPK amounted to IDR2.60                 Based on the DPK achievement in 2023, there are three products
trillion, reflecting a significant increase of IDR537.49 billion or        that have experienced a significant increase compared to the
26.03% compared to the IDR2.07 trillion recorded in 2022. The              composition of DPK in 2022, namely Barokah Deposits amounting
growth in Sharia DPK primarily originated from the expansion of            to IDR381.34 billion, Hajj iB Amanah Savings amounting to
Barokah Deposits, contributing an increase of IDR381.34 billion.           IDR66.35 billion and Barokah Savings amounting to IDR56.74
Concurrently, CASA witnessed an uptick of IDR156.15 billion or             billion.
19.05% compared to the 2022 figure of IDR819.66 billion, driven
by the growth in iB Amanah Haji Savings.



The description amount of Sharia Funding Segment customers is presented as follows:


Table of Funding Sharia Customers
					                                                                                                                   (in number of customers)


                                                                                                                     Growth
                      Description                              2023                  2022
                                                                                                         IDR                      %
                             (1)                                (2)                   (3)            (4) = (2)-(3)         (5) = (4)/(3)

 Current Account iB Barokah (Wadiah)                            1,689                  1,467                222                 15.13%

 Current Account iB Barokah (Mudharabah)                              8                     6                  2                33.33%

 Simple Savings iB                                             53,480                 45,989              7,491                 16.29%

 TabunganKu iB                                                 41,567                 36,918              4,649                 12.59%

 Umroh iB Amanah Savings                                        2,076                  1,693                383                 22.62%

 SiPandai iB Barokah Savings                                      403                   388                    15                 3.87%

 Santri (Student) Savings                                      14,997                  1,338             13,659               1,020.85%

 Barokah Savings                                               50,478                 46,057              4,421                   9.60%




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report            199
Page 202
                                                                                                                        Growth
                     Description                               2023                   2022
                                                                                                            IDR                     %
                             (1)                                 (2)                   (3)              (4) = (2)-(3)          (5) = (4)/(3)

 Barokah Sejahtera Savings                                              69                   77                   (8)             (10.39%)

 Hajj iB Amanah Savings                                       129,284                 127,671                1,613                  1.26%

 IB Barokah Savings Plan                                            355                  305                      50               16.39%

 IB Barokah Pension Savings                                         115                       9                106               1,177.78%

 Barokah Deposits                                                 2,977                 2,752                  225                  8.18%

 Total                                                        297,498                264,670                32,828                 12.40%



The growth in the number of deposits was followed by an                      In general, the number of customers in some Bank Jatim UUS
increase in the number of customers. In 2023, the number of                  DPK products has increased compared to 2022, but only one
Bank Jatim UUS DPK customers will be 297,498 customers, an                   product has decreased, namely Barokah Sejahtera Savings,
increase of 32,828 customers or 12.40% compared to 2022. The                 amounting to 8 customers or 10.39%
growth primarily stemmed from an increase in the customers of
the Santri (Student) Savings savings account.


Graph of Growth TPF Sharia                           (in IDR million)        Graph of Growth Funding Sharia Customers                 (in Customer)



                                      2,602,606                                                                   297,498

                                                                                                  264,670
                     2,065,118




                           Total DPK Sharia                                                   Total Funding Sharia Customers

                           2022          2023                                                        2022               2023


The description of the performance of each funding product is presented as follows:
• Current Account iB Barokah (Wadiah)                                  Simple Savings experienced a growth of 7,491 account
   The iB Barokah (Wadiah) Current Account saw an increase             holders, representing a 16.29% increase compared to
   of IDR18.34 billion or 11.75%, rising from IDR156.09 billion        the year 2022.
   to IDR174.43 billion in 2023. In terms of the number of         • TabunganKu iB
   customers, the iB Barokah (Wadiah) Current Account                  The iB TabunganKu Savings experienced an increase
   experienced a growth of 222 account holders, representing           of IDR7.451 billion or 13.25%, growing from IDR56.222
   a 15.13% increase compared to the year 2022.                        billion to IDR63.673 billion in 2023. In terms of the number
• Current Account iB Barokah (Mudharabah)                              of customers, the iB TabunganKu witnessed an increase
   The iB Barokah (Mudharabah) Current Account experienced             of 4,649 account holders, reflecting a 12.59% growth
   an increase of IDR150 million or 9.17%, rising from IDR1.64         compared to the year 2022.
   billion to IDR1.79 billion in 2023. In terms of the number of   • Umroh iB Amanah Savings
   customers, the iB Barokah (Mudharabah) Current Account              The iB Amanah Umroh Savings experienced an increase
   witnessed an increase of 2 account holders, representing a          of IDR1.30 billion or 32.47%, growing from IDR4.00 billion
   33.33% growth compared to the year 2022                             to IDR5.30 billion in 2023. In terms of the number of
• Simple Savings iB                                                    customers, the iB Amanah Umroh Savings witnessed an
   The iB Simple Savings saw an increase of IDR3.17 billion            increase of 383 account holders, representing a 22.62%
   or 44.78%, rising from IDR7.08 billion to IDR10.26 billion          growth compared to the year 2022.
   in 2023. In terms of the number of customers, the iB


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•   SiPandai iB Barokah Savings                                        •   Hajj iB Amanah Savings
    SiPandai iB Barokah Savings saw an increase of IDR1 million or         The iB Amanah Hajj Savings recorded an increase of IDR66.35
    6.67%, growing from IDR15 million to IDR16 million in 2023.            billion or 22.99%, reaching IDR354.92 billion from IDR288.57
    In terms of the number of customers, SiPandai iB Barokah               billion in 2023. In terms of the number of customers, there was
    Savings experienced an increase of 15 account holders,                 an increase of 1,613 account holders, representing a growth
    representing a 3.87% growth compared to the year 2022.                 of 1.26% compared to the year 2022.
•   Santri (Student) Savings                                           •   IB Barokah Savings Plan
    The Santri Savings experienced an increase of IDR1.86                  The iB Barokah Planned Savings experienced an increase
    billion or 14,338.46%, growing from IDR13 billion to IDR1.88           of IDR223 million or 18.32%, growing from IDR1.22 billion
    billion in 2023. In terms of the number of customers, the              to IDR1.44 billion in 2023. In terms of the number of
    Santri Savings witnessed an increase of 13,659 account                 customers, the iB Barokah Planned Savings saw an increase
    holders, representing a growth of 1,020.85% compared to                of 50 account holders, representing a growth of 16.39%
    the year 2022.                                                         compared to the year 2022.
•   Barokah Savings                                                    •   IB Barokah Pension Savings
    The Barokah Savings witnessed an increase of IDR56.74 billion          The iB Barokah Pension Savings experienced an increase
    or 19.08%, rising from IDR297.42 billion to IDR354.16 billion          of IDR14 million or 60.87%, rising from IDR23 million to
    in 2023. In terms of the number of customers, the Barokah              IDR37 million in 2023. In terms of the number of customers,
    Savings experienced an increment of 4,421 account holders,             the iB Barokah Pension Savings witnessed an increase of
    reflecting a growth of 9.60% compared to the year 2022.                106 account holders, reflecting a growth of 1,177.78%
•   Barokah Sejahtera Savings                                              compared to the year 2022.
    The Barokah Sejahtera Savings experienced an increase of           •   Barokah Deposits
    IDR543 million or 7.36%, growing from IDR7.37 billion to               The Barokah Deposit witnessed an increase of IDR381.34
    IDR7.92 billion in 2023. In terms of the number of customers,          billion or 30.62%, rising from IDR1.25 trillion to IDR1.63
    the Barokah Sejahtera Savings saw a decrease of 8 account              trillion in 2023. In terms of the number of customers, the
    holders or (10.39%) compared to the year 2022.                         Barokah Deposit experienced an increase of 225 account
                                                                           holders, representing an 8.18% growth compared to the
                                                                           year 2022.


SHARIA FINANCING
Sharia Financing consisted of Consumer, Retail and Commercial          Small Financing. Retail Financing includes the Linkage Program
Financing, Consumer Financing included iB Barokah Gold,                and Commercial Financing includes General Financing and
KPR iB Griya Barokah, KPR Sejahtera, Employee Financing,               Presidential Decree/Contractor Working Capital Financing.
Multipurpose iB Barokah, Ownership of iB Barokah Gold                  Description of each Sharia Financing product is presented in
Metal, Umroh iB Maqbulla, Hajj Al Mabrur Bailout Loan. Micro           the Profiles section of the Products and Services SubChapter in
Financing includes People’s Business Credit (KUR) and Micro            this Annual Report.


The description amount of Sharia Financing is presented as follows:


Table of Sharia Financing Productivity
			                                                                                                                            (in IDR million)


                                                                                                                   Growth
                      Description                             2023               2022
                                                                                                       IDR                     %

                           (1)                                 (2)                 (3)             (4) = (2)-(3)        (5) = (4)/(3)

 CONSUMER FINANCING
 iB Barokah Gold Mortgage                                    24,304              22,568                 1,736                 7.69%
 Home Ownership Loans (KPR) Griya Barokah                   735,342             726,913                 8,429                 1.16%
 Commercial KPR                                             265,936             269,441                (3,505)               (1.30%)
 Housing Finance Liquidity Facility KPR (FLPP)              469,406             457,473                11,933                 2.61%
 Employee Financing                                         141,989             144,281                (2,292)               (1.59%)
 Multipurpose iB Barokah                                     47,338              65,248               (17,910)              (27.45%)
 Gold Ownership (KLE) iB Barokah                               1,412               1,443                  (31)               (2.15%)
 Umroh Bailout Loan iB Maqbulla                                 239                 276                   (37)              (13.41%)




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                                                                                                                   Growth
                      Description                            2023                 2022
                                                                                                       IDR                     %

                           (1)                                (2)                  (3)             (4) = (2)-(3)         (5) = (4)/(3)

 Hajj Al Mabrur Bailout Loan                                       45                 90                 (45)               (50.00%)
 Sub Total Consumer                                        950,669              960,819             (10,150)                (1.06%)
 MICRO, RETAIL AND COMMERCIAL FINANCING
 Linkage                                                    69,754                69,233                 521                  0.75%
 a. Cooperative Financing (PKOP)/ Cooperative Financing                           49,796              11,896                 23.89%
                                                            61,692
    for Members (PKPA)
 b. Sharia Rural Bank (BPRS)                                 8,062                19,437             (11,375)               (58.52%)
 General                                                  1,053,351              794,949             258,402                 32.51%
 a. Investment                                             715,899               484,098             231,801                 47.88%
 b. Working Capital                                        312,739               297,087              15,652                  5.27%
 c. Factoring                                               24,713                13,765              10,948                 79.54%
 Keppres/Contractor                                        102,279                78,470              23,809                 30.34%
 People’s Business Loans                                    11,805                       0            11,805                100.00%
 Small Micro                                                        0                    0                   0                      0
 Sub Total Micro, Retail and Commercial                   1,237,189             942,652             294,537                 31.25%
 Total                                                    2,187,858            1,903,471            284,387                 14.94%


The total financing in 2023 was realized at IDR2.18 trillion, an        The financing composition in 2023 was primarily led by general
increase of IDR284.39 billion or 14.94% compared to 2022’s              investment financing. Bank Jatim Sharia actively participated
IDR1.90 trillion. This includes various financing schemes such          in syndicated financing for projects such as PT Pembangunan
as Gadai Emas iB Barokah (Gold Pawn), KPR iB Griya Barokah              Perumahan Semarang Demak, PT Cimanggis Cibitung
(Home Ownership Financing), KPR Sejahtera, Employee                     Tollways, and other toll road developments. The second-largest
Financing, Multipurpose iB Barokah, Kepemilikan Logam Emas              contributor to financing was the Prosperous Home Ownership
(KLE - Gold Ownership), Hajj Al Mabrur Bailout Loan, Umroh iB           Financing (FLPP), which continued to be a primary focus for
Maqbula, Linkage Program Financing, General Financing, and              channeling funds to Low-Income Communities (MBR). Bank
Presidential/Contractor Financing (KEPPRES). The increase was           Jatim is actively supporting the government’s housing subsidy
attributed to the rise in several financing schemes, including a        program. In 2023, the achievements in this sector were highly
2.61% increase in KPR Fasilitas Likuiditas Pembiayaan Perumahan         satisfactory. The outstanding amount for FLPP saw an increase
(FLPP) amounting to IDR11.93 billion, a 0.75% increase in               of IDR11.9 billion in 2023, representing a growth percentage of
Linkage Program Financing totaling IDR521 million, a 47.88%             2.61% compared to 2022. The composition of FLPP within the
increase in Investment Financing amounting to IDR231.80                 total outstanding home financing stood at 21.46%
billion, a 5.27% increase in Working Capital Financing totaling
IDR15.65 billion, a significant 79.54% increase in Receivables
Factoring amounting to IDR10.95 billion, and a 30.34% increase
in Presidential Financing totaling IDR23.81 billion.


The description Sharia Financing numbers of customers is presented as follows:


Table of Sharia Financing Customers		
		                                                                                                                    (in number of customers)


                                                                                                                   Growth
                      Description                            2023                 2022
                                                                                                       IDR                     %

                           (1)                                (2)                  (3)             (4) = (2)-(3)         (5) = (4)/(3)

 CONSUMER FINANCING

 iB Barokah Gold Mortgage                                   1,379                 1,195                184                    15.40%

 Home Ownership Loans (KPR) Griya Barokah                   5,314                 5,135                179                     3.49%




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                                                                                                                             Growth
                      Description                                 2023                  2022
                                                                                                                 IDR                    %

                           (1)                                      (2)                  (3)                 (4) = (2)-(3)        (5) = (4)/(3)

 Commercial KPR                                                   1,250                 1,346                    (96)                  (7.13%)

 Housing Finance Liquidity Facility KPR (FLPP)                    4,064                 3,789                    275                    7.26%

 Employee Financing                                                  513                 406                     107                   26.35%

 Multipurpose iB Barokah                                             667                 858                    (191)                 (22.26%)

 Gold Ownership (KLE) iB Barokah                                     146                 113                      33                   29.20%

 Umroh Bailout Loan iB Maqbulla                                            9                   7                    2                  28.57%

 Hajj Al Mabrur Bailout Loan                                               2                   4                   (2)                (50.00%)

 Sub Total Konsumer                                               8,030                 7,718                    312                   4.04%



 MICRO, RETAIL AND COMMERCIAL FINANCING

 Linkage                                                             185                 223                     (38)                 (17.04%)

 a. Cooperative Financing (PKOP)/ Cooperative Financing
                                                                     182                 216                     (34)                 (15.74%)
    for Members (PKPA)

 b. Sharia Rural Bank (BPRS)                                               3                   7                   (4)                (57.14%)

 General                                                             750                 504                     246                   48.81%

 a. Investment                                                       287                 183                     104                   56.83%

 b. Working Capital                                                  448                 312                     136                   43.59%

 c. Factoring                                                         15                       9                    6                  66.67%

 Keppres/Contractor                                                  109                  63                      46                   73.02%

 People’s Business Loans                                              97                       0                  97                  100.00%

 Small Micro                                                               0                   0                    0                   0.00%

 Sub Total Micro, Retail and Commercial                           1,141                  790                     351                  44.43%

 Total                                                            9,171                 8,508                    663                   7.79%




Graph of Growth Sharia Financing                                               Graph of Growth Sharia Financing Customers
                                                          in IDR million                                                                    in Customer



                                       2.187.858                                                                         9.171
                                                                                                     8.508
                      1.903.471




                        Total Sharia Financing                                                     Sharia Financing Customers


                           2022            2023                                                         2022              2023




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               2023 Annual Report                203
Page 206
The description of the performance of each sharia financing       f.   Talangan Haji (Hajj Bailout Loan)
product is presented as follows:                                       Hajj Bailout Loan (Hajj Bailout Loan) product distribution
1. Consumer Segment                                                    will experience a decline in 2023 by 50.00%, from the
   a. IB Barokah Gold (Pawn)                                           nominal amount of IDR90 million in 2022 to IDR45
       During 2023, there was an increase in financing                 million in 2023. Specifically for Hajj Financing, there
       distribution through Emas iB Barokah reaching                   was no expansion of financing due to government
       IDR1.74 billion or 7.69% from IDR22.57 billion in               regulations. As a result, there was no increase in the
       2022 to IDR24.30 billion in 2023. Meanwhile, Pawn               disbursement of financing in 2023.
       Financing customers experienced an increase of 184
       customers from 1,195 customers in 2022 to 1,379         2. Micro Segment
       customers in 2023.                                         a. KUR Financing
   b. KPR iB Griya Barokah                                           Throughout 2023, UUS Bank Jatim launched a new
       The composition of Bank Jatim UUS KPR is Commercial           product, Sharia Microbusiness Loan (KUR Sharia), and
       KPR and FLPP KPR. The total outstanding KPR Griya             achieved a disbursement of IDR11.81 billion for this
       Barokah in 2023 is IDR735.34 billion, an increase of          product. The number of customers availing KUR Sharia
       1.16% from financing in 2022 of IDR726.91 million. In         in 2023 was 97.
       2023, disbursement of Commercial Mortgage Loans
       (KPR Komersil) experienced a decrease of 1.30%,         3. Retail Segment
       amounting to IDR3.51 billion compared to 2022.             a. Linkage Program
       However, disbursement of Government-subsidized                During 2023, UUS Bank Jatim has recorded an
       Home Ownership Financing (KPR FLPP) increased                 increase in financing distribution using the Linkage
       by 2.61%, totaling IDR11.93 billion compared to               Program pattern reaching IDR521 million or 0.75%,
       2022. In terms of customer numbers, there was an              rising from IDR69.233 billion in 2022 to IDR69.754
       increase in the disbursement for Giriya Barokah               billion in 2023.
       Home Financing by 179 customers and a rise of 275             In terms of the number of customers, the disbursement
       customers for FLPP Home Financing. Conversely,                of Linkage Program financing experienced a decrease
       Commercial Mortgage Loans saw a decrease with 96              of 38 customers. In 2022, there were 216 customers,
       fewer customers.                                              and by 2023, the count decreased to 185 customers.
   c. Multipurpose iB Barokah
       During 2023, UUS Bank Jatim recorded a decrease in      4. Commercial Segment
       the distribution of Multipurpose iB Barokah financing      a. General Financing
       by IDR17.91 billion or 27.45%, declining from the             General Financing is financing for businesses, both
       nominal amount of IDR65.25 billion in 2022 to                 individuals and legal entities, to meet Working Capital
       IDR47.34 billion in 2023. Additionally, the number            and/or investment needs. During 2023, UUS Bank
       of customers availing Multiguna Financing also                Jatim has recorded General Financing Growth of
       experienced a decrease of 191 customers. In 2022,             IDR258.40 billion or 32.51%, rising from IDR794.95
       there were 858 customers, and by 2023, the count              billion in 2022 to IDR1.05 trillion in 2023. The growth
       decreased to 667 customers.                                   in the disbursement of general financing, in terms of
   d. Ownership of iB Barokah Gold Metal                             the number of customers, experienced an increase of
       During 2023, there will be a decrease in financing            246 customers. This increase was attributed to a rise
       distribution through Owenership of Gold Metal (KLE)           in customers availing investment financing by 104
       by IDR31 million or 2.15%, declining from the nominal         customers, working capital financing by 136 customers
       amount of IDR1.43 billion in 2022 to IDR1.41 billion          and factoring for 6 customers.
       in 2023. The number of customers availing Gold             b. Keppres/Contractor Working Capital Financing
       Ownership Financing iB Barokah, however, increased            During 2023, UUS Bank Jatim experienced an
       by 33 customers. In 2022, there were 113 customers,           increase in the distribution of Working Capital
       and by 2023, the count increased to 146 customers.            Financing Presidential Decree reaching IDR23.81
   e. Umroh iB Maqbulla                                              billion or 30.34%. This figure rose from IDR78.47
       The distribution of Umrah Bailout Loan iB Maqbulla            billion in 2022 to IDR102.30 billion in 2023. In terms
       products decreased by 13.41%, equivalent to IDR37             of the number of customers, there was an increase
       million, from the nominal amount of IDR276 million            of 46 customers availing Working Capital Financing
       in 2022 to IDR239 million in 2023. In terms of the            for Presidential Decree. In 2022, there were 63
       number of customers, the disbursement of Umroh                customers, and by 2023, the count increased to 109
       Financing iB Maqbulla increased by 2 customers in             customers.
       2023.




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OTHER SERVICES - SHARIA
The Sharia Treasury business includes money market and                 (FASBIS), Bank Indonesia Sukuk Interbank Deposits (SukBI),
securities transactions carried out by the Sharia Treasury Group       Sharia Interbank Mudharabah Investment Certificates (SIMA),
under the Sharia Business Division. The Sharia Treasury Portfolio      Sharia Participation Mutual Funds Limited Liability Securities
facility includes Sharia Bank Indonesia Deposit Facilities             (RDSPT) and State Sharia Securities (SBSN).


Description Sharia Treasury Productivity is presented as follows:


Table of Sharia Treasury Productivity
					                                                                                                                         (in IDR million)


                                                                                                                   Growth
                      Description                             2023               2022
                                                                                                       IDR                   %

                            (1)                                (2)                 (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Sharia Bank Indonesia Deposit Facilities (FASBIS)           150,000            145,000                5,000                 3.45%

 Bank Indonesia Sukuk Interbank Deposits (SukBI)             450,000            400,000               50,000                12.50%

 Sharia Interbank Mudharabah Investment Certificates
                                                             450,000            325,000              125,000                38.46%
 (SIMA),

 Sharia Participation Mutual Funds Limited Liability
                                                              25,000             25,000                      0               0.00%
 Securities (RDSPT)

 State Sharia Securities (SBSN)                              141,406            102,935               38,471                37.37%

 Total                                                     1,216,406            998,163             218,243                 21.86%


Fasilitas Simpanan Bank Indonesia or Bank Indonesia Sharia             of Bank Jatim Sharia Business Unit as of 31 December 2023
Deposit Facility (FASBIS) is a Sharia Monetary Operation               is IDR450 billion, an increase of IDR125 billion or 38.46%
instrument through standing facilities where the Bank places           compared to December 2022. The increase in this instrument
rupiah funds at Bank Indonesia for the purpose of absorbing            is the result of a strategy to optimize revenue while maintaining
the Bank’s liquidity.In 2022, FASBIS Bank Jatim Business Unit          short-term liquidity.
was recorded at IDR150 billion, an increase of IDR5 billion or
3.45% from December 2022. The increase was due to lack of              The Sharia Participation Mutual Funds Limited Liability
absorption in the money market, resulting in the remaining idle        Securities (RDSPT) Certificate owned by the Bank Jatim Sharia
funds being placed in Bank Indonesia’s Open Market Operation           Business Unit in December 2023 is IDR25 billion. The nominal
(OPT) Absorption instrument.                                           portfolio remained the same compared to December 2022.


Bank Indonesia Sukuk Interbank Deposits (SukBI) is another             State Sharia Securities (SBSN) are Securities issued by the
Bank Indonesia Sharia Monetary Operation instrument which              Government as part of investments in assets with Sharia
functions as a contraction tool to absorb excess liquidity             principles which are commonly traded in the capital market
(absorb). This instrument has a tenor option of 7 (seven) days         and money market. As of December 2023, the types of SBSN
to 12 (twelve) months. During 2023, the Bank Jatim Sharia              owned by the Sharia Bank Jatim Business Unit are Retail Sukuk
Business Unit will be active in participating in the SUKBI auction     with an Ijarah Asset to be Leased contract and Project Based
and will be an alternative placement to maintain short-term            Sukuk with the same contract. Overall, SBSN owned by the
liquidity position (under 1 year). In December 2023, Bank Jatim’s      Bank Jatim Sharia Business Unit experienced an increase of
Sharia Business Unit SUKBI was recorded at IDR450 billion, an          IDR38 billion or 36.89% from IDR103 billion in 2020 to IDR141
increase of IDR50 billion compared to December 2022. This              billion. The increase was due to the Sharia Treasury portfolio
was due to the consideration of a strategy to increase liquidity       diversification strategy, revenue optimazation and efforts to
ratios, which needs to increase the portfolio of High Quality          increase the HQLA portfolio.
Liquid Assets (HQLA).
                                                                       Overall, in December 2023, Sharia Treasury’s managed
Sharia Interbank Mudharabah Investment Certificates (SIMA), is         funds will reach IDR1,216 billion, an increase of 21.84% from
a certificate issued by Bank General Sharia or Sharia Business         December 2022. Of these achievements, 86.32% were short-
Unit which is used as a short-term investment vehicle in PUAS          termplacements, and only 13.68% were long-term placements.
with a mudharabah agreement. The SIMA placement position




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         2023 Annual Report          205
Page 208
Graph of Sharia Idle Treasury                                               Graph of Sharia Idle Treasury
Managed Fund Portfoliot                                  (in IDR million)   Managed Fund                                             (in %)



                                   1,216,406
                                                                                                                              2%
                    998,163                                                   33%
                                                                                                                                10%



                                                                                                                                   15%

                                                                              40%




          Sharia Idle Treasury Managed Fund Portfoliot                         FABSIS        SukBI          SIMA      RDSPT         SBSN

                        2022           2023


The 3 (three) largest compositions are 36.99% placement in SUKBI with a portfolio of IDR450 billion, 36.99% in SIMA investment with
a portfolio of IDR450 billion, and 12.33% FASBIS with a portfolio of IDR150 billion.



Sharia Segment Strategy in 2023
The funding and financing strategies for the sharia segment to                    c. Regular Gathering with partners and potential
be implemented in 2023 are presented as follows:                                     customers
• Sharia Funding Strategy in 2023                                                    Gatherings will be held periodically with Bank
    The sharia funding strategy for the Sharia segment was                           Jatim Sharia partners and customers in order to
    through increasing CASA and fee-based income which can                           improve and maintain service to customers so that
    be described as follows                                                          it will increase the number of customer transactions
    1. Maintenance of Existing Customers                                             at Bank Jatim Sharia. One of the gatherings that
        a. Recall Dormant/Inactive Customers (Current                                will be held in the first quarter of 2023 is a young
           Account/Savings/Deposits)                                                 hajj campaign for all Islamic boarding schools that
           Additional activities for marketing officers to                           are members of One Islamic Boarding School One
           contact customers who were no longer active in                            Product (OPOP) East Java together with the Hajj
           transactions but still had balances are an attempt                        Financial Management Agency (BPKH) and OPOP
           by Bank Jatim Syariah to increase TPF balances.                           East Java which is expected to increase the number
           This was easier to do because previously dormant                          of customers and the nominal value of Hajj iB
           customers were familiar with Bank Jatim Syariah                           Amanah Savings.
           so it was hoped that this activity could generate                   2. New Customer Acquisition
           customer interest in using Bank Jatim Syariah                          a. Implementation of the Barokah Hajj Program
           products and services.                                                    The Hajj Barokah program is conducted in the
        b. Implementation of the Barokah Spreading                                   first quarter of 2023, starting from January to
           Program Period 1 of 2023                                                  March 2023. Prizes are given to customers who
           This Barokah Spread Program aims to enable                                open a Hajj iB Amanah Savings account and
           customers who hold Barokah Savings accounts                               simultaneously register for the Hajj portion. The
           to increase the balance in their accounts. Prizes                         prizes given to customers are in the form of gold
           are given through a points redeem system where                            metal weighing 0.05 grams and other attractive
           customers who are entitled to get points are                              prizes (cluth/sajadah/tumbler).
           customers with an average balance at the end of                        b. The Barokah Sejahtera Savings Program (TBS)
           the month of 1 (one) million rupiah. Meanwhile,                           Batch 6
           those entitled to redeem points are customers who                         The TBS Batch 6 program is a program that is
           have earned 500 points.                                                   expected to increase Barokah Savings customers
                                                                                     where customers will be able to receive prizes




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                       MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                    OF BANK PERFORMANCE




   directly by depositing their balance within a        •   Sharia Financing Strategy in 2023
   certain period of time. This program is valid from       Strategic financing steps which became priority agendas to
   September 1, 2022 to March 1, 2023 and will              be pursued in the 2023 period, include:
   continue to Batch 7 which is valid from March 2          1. Optimizing plans to disburse syndicated financing
   to September 2, 2023. This program can also be               and other approved financing that have not been
   implemented at the Sharia Services Office.                   realized in 2022.
c. Collaborate with the Hajj Financial Management           2. Acceleration of the process for financing proposals that
   Agency (BPKH) in increasing Hajj registration                have entered the process at the UUS Bank Jatim Head
   As an effort to increase Hajj registrants through            Office.
   Hajj iB Amanah Savings, Bank Jatim Sharia is             3. Focusing on financing distribution at Sharia Branch
   collaborating with BPKH to provide a referral fee            Offices based on financing segmentation, namely:
   of IDR100 thousand for the Hajj Guidance Group               micro segment, retail segment, middle segment,
   (KBIH) who bring their congregation to open a Hajj           as well as consumer and property segments. The
   iB Amanah Savings account as well as registering             corporate segment is managed by the Head Office.
   the initial Hajj deposit. at Bank Jatim Sharia.          4. Analyst Optimization
   The referral mechanism uses a reimbursement                  a. The gross financing expansion target of each
   mechanism to BPKH.                                               analyst in each branch is IDR2 billion for the
d. Collaborating with the Indonesian Waqf Board                     micro and retail segments, while the consumer
   (BWI) and the Indonesian Waqf Movement (GWI)                     and property segments is IDR3 billion every
   in increasing the number of Nazirs and Wakif                     month.
   To increase the collection of funds in the iB                b. Giving rewards/incentives is based on the
   Barokah Current Account through the iB Barokah                   achievement of the performance of each analyst.
   Waqf service, Bank Jatim Sharia collaborated             5. Collaboration with PT Makmur Bercash Amanda (MBA)
   with BWI and GWI to conduct outreach to                      in making the Sidoarjo Halal Industrial Park (HIPS)
   Nazirs in East Java regarding the development                program a success, as a program by the East Java
   of productive cash waqf. This activity is carried            Provincial Government to create a Rising East Java in
   out every quarter in several areas with large waqf           2021, which was a potential financing to customers for
   potential.                                                   purchasing warehouses for investment.
e. Implementation of Virtual Santri Sholawat                6. Approach to Developers
   Competition and Adhan Competition                            a. The target of closing KPR financing was at least 3
   Collaborating with the East Java NU Alms House,                  (three) users per month for each developer who has
   Bank Jatim Sharia held a virtual Santri prayer                   PKS with sharia branches.
   competition as well as an adhan competition.                 b. Collaboration with developer communities such as
   The participants came from Islamic boarding                      Himpera, Apersi, Apernas, REI, and others
   schools in the East Java region. This activity           7. Planning to collaborate with the Government to obtain
   aims to increase the number of customers and                 a KUR financing distribution quota and support Bank
   the nominal amount of Santri (Student) Savings               Jatim’s work program in 2023 as a bank with an MSME-
   where competition participants are required to               based financing background.
   open a Santri (Student) Savings account as an            8. Approach with the UMKM Community
   administrative requirement and display Bank                  a. Cooperation with Muslimat NU throughout East
   Jatim Sharia products or services in videos sent                 Java for the distribution of microfinance.
   to the competition committee. The winner will be             b. Collaboration with Kopontren throughout East
   given coaching money which will be transferred                   Java in the One Product Islamic Boarding School
   to the Santri (Student) Savings account.                         Program (OPOP).
f. Providing Sponsorship in the East Java NU Alms           9. Optimizing the Distribution of BMT/BPRS Linkage
   House Podcast                                                Finance
   It is hoped that the collaboration with Rumah Al             a. Distribution to local government-owned or private
   Sedekah NU East Java in the podcast program                      BPRS that had high credibility and credibility.
   will increase the chances of obtaining Barokah               b. Reactivate the distribution of financing to
   Deposits because most of the podcast speakers                    cooperatives, both distribution with Executing
   held by Rumah Alms NU East Java come from                        Patterns and Channeling Patterns.
   entrepreneurs in East Java.




                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                          2023 Annual Report     207
Page 210
Sharia Segment Competitive Advantage and Innovation                             giving rewards to Sharia Service offices having
Competitive advantage was obtained through sharia contracts                     customers registered for the highest portion of Hajj
that provide choices for the public to transact in sharia and                   in each semester in 2024.
avoid ribawi transactions. However, innovation needed to be                b.   The Barokah Sejahtera Savings Program (TBS)
created to maintain the convenience of customers who chose                      The TBS program is a program that is expected
sharia transactions, including sharia digital innovation. Through               to increase Barokah Savings customers where
different products and contracts, sharia products could be                      they will be able to receive prizes directly by
an alternative for customers in order to increase equitable                     depositing balance within a certain period of time.
investment with attractive profit sharing through profit sharing                The ongoing program is TBS Batch 8 which starts
contracts or murabahah contracts with purchase of precious                      from October 1, 2023 to March 30, 2024 and will
metals as well as being able to help relieve the customer’s                     continue to Batch 9.
liquidity burden temporarily through the iB Barokah Gold                   c.   Barokah Madani Festival (BaniFest) 2024
product (gawn gold). It was hoped that with these advantages                    Program
and innovations, the sharia segment could increase Bank                         As an effort to increase Hajj iB Amanah Savings,
Jatim’s market share as a whole and was an entry barrier for                    Bank Jatim Sharia collaborates with the Hajj
other Islamic bank competitors.                                                 Financial Management Agency (BPKH) to hold a
                                                                                joint program related to the Young Hajj campaign.
Sharia Segment Prospect and Strategy for 2024                                   In addition to the student segment, the Young Hajj
Sharia’s funding strategy is to increase CASA and fee based                     Savings 2024 can also be intended for the Civil
income using two strategic approaches, namely maintenance                       Servants and Government Employees with Work
of existing customers and acquisition of new customers which                    Agreement (PPPK) segmentation.
are described as follows:                                                  d.   Love Waqf Program
• Sharia Funding Prospect and Strategy for 2024                                 To increase the fund raising in the iB Barokah
    1. Maintenance of Existing Customers                                        Current Account through the iB Barokah Waqf
         a. Recall of Dormant/Inactive Customers (Current                       service, Bank Jatim Sharia collaborated with
             Account/Savings/Deposits)                                          the Indonesian Waqf Board (BWI) to socialize to
             Activities that must be carried out by funding                     nazhirs in East Java regarding the development of
             officers to communicate again with customers who                   productive money endowments. These activities
             are no longer active in transactions but still have                are carried out quartely to several areas with large
             balances. This was done as an effort to increase                   waqf potential.
             DPK balances as well as croselling.                           e.   BJS Vaganza 2024 Program
         b. Implementation of the 2024 Tebar Barokah                            Collaborating with Masjid Raya islamic Center
             Program                                                            and Masjid Al Akbar Surabaya to hold Banjari
             This Barokah Spread Program aims to enable                         Competition, Tahfidz Competition, A call to
             customers who hold Barokah Savings accounts                        prayer Competition and Sharia Financial Literacy
             to increase the balance in their accounts. Prizes                  on Islamic holidays. The winners will be granted
             are given through a points redeem system where                     coaching money which will be transfrred to the
             customers who are entitled to get points are                       Santri Saving account.
             customers with an average balance at the end of
             the month of 1 (one) million rupiah. Meanwhile,        Sharia Financing Business Prospect and Strategy for 2024
             those entitled to redeem points are customers who      Description of the Business Prospect and Sharia Financing
             have earned 500 points.                                strategy that will be implemented in 2024 are as follows:
         c. Regular Gathering with partners and potential           1. Improving the acceleration of the Service level Agreement
             customers                                                  (SLA) process for financing proposals processed at Branch
             Gatherings will be held periodically with Bank             Offices and Head Office.
             Jatim Sharia partners and customers in order to        2. Focusing on financing distribution to the education/
             improve and maintain service to customers so that          Islamic boarding school sector, health, MSME businesses,
             it will increase the number of customer transactions       cooperatives that will become Customer Based in
             at Bank Jatim Sharia.                                      mastering the market ecosystem at USS Bank Jatim.
    2. Acquisition of New Customers                                 3. Prticipating to succeed the government’s program in
         a. Implementation of Hajj Barokah Program                      accelerating the construction of 1 million houses by
             Giving rewards to the customers who register for           contributing to the distribution of subsidized KPR (KPR
             the Hajj portion in the form of special prizes and         FLPP) financing.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
208     2023 Annual Report
Page 211
                                                                                       MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                    OF BANK PERFORMANCE




4. Supporting infrastructure development as part of the               Sharia Segment Income and Profitability
   Government’s National Strategic Program includes
   participating in syndicated financing for toll road                Operating Income Sharia Segment in 2023 amounted to
   construction and other syndicated financing. In addition,          IDR230,764 million, an increase of 17.21% compared to the
   for this syndicated financing, we can optimize the plan            previous year which reached IDR196,878 million. The increase
   to disburse the remaining syndicated financing attraction          came from the Increase in Interest Income.
   facilities and other financing that has been approved.
5. Optimizing KUR Sharia financing disbursement in 2024.              Operating Profit Sharia Segment in 2023 reached IDR33,812
6. Proposing margin adjustment according to the prevailing            million, a decrease of 12.83% compared to the previous year
   rate and can compete in the market.                                which reached IDR38,791 million. This is influenced by an
7. Diversing financing products by disbursing Cash Collateral         increase in labor costs.
   Financing (CCF) by 2024.



Table of Sharia Segment Income and Profitability
				                                                                                                                       (in IDR million)


                                                                                                                Growth
                    Description                              2023              2022
                                                                                                    IDR                    %

                         (1)                                  (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Asset                                                    3,620,590          3,071,458             549,132                17.88%

 Liability                                                3,586,345          3,030,788             555,557                18.33%

 Operating Income                                           230,764            196,878              33,887                17.21%

 Operating Profit                                            33,812             38,791              (4,978)              (12.83%)




Geographic Segments

Apart from the operating segment, in carrying out its activities,     Geographic Segment Revenue and Profitability
Bank Jatim can be viewed from a geographical segment.
                                                                      Operational income for the East Java geographic segment
Geographic Segment Explanation                                        in 2023 reached IDR4,567,696 million, a decrease of 13.70%
                                                                      compared to the previous year which reached IDR5,292,622
A geographical segment is engaged in providing services               million. Operational profit for the East Java geographic
within a particular economic environment that is subject to risks     segment in 2023 reached IDR1,913,098 million, a decrease
and returns that are different from those of segments operating       of 2.21% compared to the previous year which reached
in other economic environments. The Bank’s geographical               IDR1,956,365 million. This decrease came from a decrease in
segments are East Java and other than East Java.                      other operating income.


Geographic Productivity                                               Meanwhile, operational income for the Java geographical
                                                                      segment other than East Java in 2023 reached IDR1,121,825
Information regarding the productivity of the geographical            million, an increase of 27.55% compared to the previous
segment of East Java and Java other than East Java has been           year which reached IDR879,492 million. Operational loss for
presented in the conventional segment explanation and                 the Java geographical segment other than East Java in 2023
productivity section.                                                 reached IDR58,055 million, a decrease of 273.61% compared
                                                                      to the previous year which reached IDR15,539 million. This
                                                                      decrease came from a decrease in operating profit and other
                                                                      operating income.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report           209
Page 212
Table of Revenue and Profitability of Geographic Segments
                                                                                                               (in IDR million)



                                                             East          Java Apart
                        Description                                                          Elimination      Total
                                                             Java        from East Java


                                                                 2023

 Asset                                                     85,572,614       18,809,015         526,855     103,854,774

 Liability                                                 73,363,489       18,867,071         526,855      91,703,705

 Operating Income                                           4,567,696           1,121,825            -       5,689,521

 Operating Profit                                           1,913,098            (58,055)            -       1,855,043

                                                                 2022

 Asset                                                      81,433,044      22,109,020         510,697     103,031,367

 Liability                                                  69,971,644      22,124,559         510,697      91,585,506

 Operating Income                                            5,292,622            879,492            -       6,172,114

 Operating Profit                                            1,956,365            (15,539)           -       1,940,826

                                                         Growth 2022-2023 (%)

 Asset                                                          5.08%            (14.93%)        3.16%          0.80%

 Liability                                                      4.85%            (14.72%)        3.16%          0.13%

 Operating Income                                             (13.70%)            27.55%             -         (7.82%)

 Operating Profit                                              (2.21%)           273.61%             -         (4.42%)




             PT Bank Pembangunan Daerah Jawa Timur Tbk
210          2023 Annual Report
Page 213
                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                     OF BANK PERFORMANCE




Financial
Review
The financial review described below refers to the Financial           received an opinion that they present fairly, in all material
Statements for the years ended December 31, 2022 and 2021              respects, the financial position of PT Bank Pembangunan
presented in this Annual Report. The financial statements              Daerah Jawa Timur Tbk as of December 31, 2023, as well as
have been audited by the Public Accounting Firm (KAP) Paul             financial performance and cash flows on year ended mentioned
Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Rekan and             according to Financial Accounting Standards.




Financial Performance

Bank Jatim’s financial performance consisted of the performance of the Statement of Financial Position, Statement of Profit and Loss
and Other Comprehensive Income as well as the Cash Flow Statement as follows.


Financial Position Report

Table of Financial Position Report
						                                                                                                                      (in IDR million)


                                                                                                                 Growth
                      Description                          2023                  2022
                                                                                                     IDR                    %

                              (1)                            (2)                  (3)            (4) = (2)-(3)        (5) = (4)/(3)

 ASSET

 Cash                                                     2,652,775            1,988,262            664,513                 33.42%

 Current accounts with Bank Indonesia                     7,971,412           10,786,740          (2,815,328)              (26.10%)

 Current accounts with other banks                         491,330               303,129             188,201                62.09%

 Allowance for impairment losses                            (1,077)                 (441)               (636)              144.22%

 Current accounts with other banks- Net                    490,253               302,688            187,565                61.97%

 Placements with Bank Indonesia and other banks           5,234,721            6,916,329          (1,681,608)              (24.31%)

 Allowance for impairment losses                            (5,026)               (3,154)             (1,872)               59.35%

 Placements with Bank Indonesia and other banks -
                                                          5,229,695            6,913,175         (1,683,480)              (24.35%)
 Net

 Spot and derivatives receivables                                  -                    361             (361)             (100.00%)

 Securities                                              16,323,831           23,217,671          (6,893,840)              (29.69%)

 Allowance for impairment losses                              (511)                 (400)               (111)               27.75%

 Marketable-Securities - Net                             16,323,320           23,217,271         (6,893,951)              (29.69%)

 Marketable securities sold under repurchase agreement    8,303,663            4,095,066           4,208,597               102.77%

 Receivables from Securities purchased under
                                                          6,247,318            7,822,847          (1,575,529)              (20.14%)
 agreements to resell

 Other receivables                                         223,138               286,147             (63,009)              (22.02%)

 Loans and sharia financing

 - Related Parties                                         184,848               134,871              49,977                37.06%

 - Third parties                                         54,576,055           46,061,786           8,514,269                18.48%

 Total Loan                                              54,760,903           46,196,657          8,564,246                18.54%




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report         211
Page 214
                                                                                                               Growth
                        Description                              2023            2022
                                                                                                   IDR                    %

                             (1)                                  (2)              (3)         (4) = (2)-(3)        (5) = (4)/(3)

Allowance for impairment losses                               (1,364,905)      (1,318,612)         (46,293)               3.51%

Loans- Net                                                    53,395,998       44,878,045       8,517,953                18.98%

Accrued interest income                                          685,734          646,125           39,609                6.13%

Prepaid expenses                                                 207,452          166,661           40,791               24.48%

Fixed asset

Cost                                                           2,230,878        2,109,260          121,618                5.77%

Accumulated depreciation                                       (953,165)         (825,010)       (128,155)               15.53%

Book value                                                     1,277,713        1,284,250          (6,537)               (0.51%)

Deferred tax assets, Net                                         472,123          502,238          (30,115)              (6.00%)

Tax receivables                                                         777              493           284               57.61%

Other assets, Net                                                373,402          140,998          232,404              164.83%

TOTAL ASSET                                                  103,854,773      103,031,367         823,406                 0.80%



LIABILITIES, TEMPORARY SYIRKAH FUNDS AND EQUITY

LIABILITY

Immediate liabilities                                            987,604          872,514          115,090               13.19%

Deposits from customers

- Related Parties                                             12,644,538       15,295,405       (2,650,867)             (17.33%)

- Third parties                                               63,205,317       64,630,285       (1,424,968)              (2.20%)

Total Deposits from customers                                 75,849,855       79,925,690      (4,075,835)               (5.10%)

Deposits from other bank

- Related Parties                                                 56,694          141,996          (85,302)             (60.07%)

- Third parties                                                2,503,627        3,168,842        (665,215)              (20.99%)

Total Deposits from other bank                                 2,560,321        3,310,838        (750,517)              (22.67%)

Spot dan derivatif liabilities                                            -                -              -               0.00%

Liabilities of marketable securities sold under repurchase
                                                               7,915,163        3,891,346        4,023,817              103.40%
agreement

Borrowings                                                       596,977          631,464          (34,487)              (5.46%)

Tax payable                                                      143,245           90,783           52,462               57.79%

Accrued expenses                                                 504,748          520,840          (16,092)              (3.09%)

Other liabilities                                                779,314          472,054          307,260               65.09%

TOTAL LIABILITIES                                             89,337,227       89,715,529        (378,302)               (0.42%)



TEMPORARY SYIRKAH FUNDS

Deposits from customers

- Related Parties                                                  3,764            2,302            1,462               63.51%

- Third parties                                                2,343,291        1,839,390          503,901               27.40%

Total Deposits from customers                                  2,347,055        1,841,692         505,363                27.44%

Deposits from other bank

- Related Parties                                                         -                -              -               0.00%

- Third parties                                                   19,422           28,285           (8,863)             (31.33%)




        PT Bank Pembangunan Daerah Jawa Timur Tbk
212     2023 Annual Report
Page 215
                                                                                               MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                            OF BANK PERFORMANCE




                                                                                                                           Growth
                          Description                             2023                  2022
                                                                                                               IDR                     %

                              (1)                                     (2)                (3)               (4) = (2)-(3)          (5) = (4)/(3)

 Total Deposits from other bank                                    19,422                28,285                (8,863)               (31.33%)

 TOTAL TEMPORARY SYIRKAH FUNDS                                   2,366,477           1,869,977                496,500                  26.55%



 EQUITY

 Share capital:

 - Series A : IDR250 (full Rupiah) par value per share

 - Series B : IDR250 (full Rupiah) par value per share

 Authorized:

 - Series A: 24.000.000.000 shares

 - Series B: 12.000.000.000 shares

 Issued and fully paid::

 - Series A - 11.934.147.982 shares

 - Series B - 3.081.350.100 shares                               3,753,875             3,753,875                      -                 0.00%

 Paid-in capital – Net                                            532,734               532,734                       -                 0.00%

 Revaluation surplus of fixed assets                              788,049               789,998                 (1,949)                (0.25%)

 Remeasurement of defined employee benefit liability -
                                                                 (117,777)             (100,912)               (16,865)                16.71%
 net of deferred tax

 Unrealized gain (loss) financial assets measured at
 fair value through other comprehensive income – net              (63,958)             (115,048)                51,090                (44.41%)
 deferred tax

 Retained earnings

 General reserve                                                 5,788,041             5,042,390               745,651                 14.79%

 Unapproriated                                                   1,470,105             1,542,824               (72,719)                (4.71%)

 TOTAL EQUITY                                                   12,151,069          11,445,861                705,208                   6.16%

 TOTAL LIABILITIES, TEMPORARY SYIRKAH FUNDS
                                                               103,854,773         103,031,367                823,406                   0.80%
 AND EQUITY




Graph of Financial Position Report                                                                                                      (in IDR million)



    103,031,367 103,854,773

                                           89,715,529    89,337,227




                                                                                                                                    12,151,069
                                                                                                                     11,445,861
                                                                                1,869,977      2,366,477



                  ASSET                            LIABILITY                 TEMPORARY SYIRKAH FUNDS                          EQUITY


                                                                  2022          2023




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               2023 Annual Report              213
Page 216
Asset

For the financial year ending December 31,2023, Bank Jatim’s             in assets was influenced by an increase in current accounts
total assets amounted to IDR103,854,773 million, an increase             with other banks - net, loans granted - net, securities sold with
of 0.80% from last year’s IDR103,031,367 million. This increase          agreements to repurchase (reverse repo) and other assets - net.


Table of Asset		
						                                                                                                                          (in IDR million)


                                                                                                                    Growth
                      Description                             2023                 2022
                                                                                                         IDR                   %

                              (1)                              (2)                  (3)             (4) = (2)-(3)        (5) = (4)/(3)

 Cash                                                       2,652,775             1,988,262             664,513                33.42%

 Current accounts with Bank Indonesia                       7,971,412            10,786,740          (2,815,328)              (26.10%)

 Current accounts with other banks                            491,330               303,129             188,201                62.09%

 Allowance for impairment losses                               (1,077)                 (441)               (636)              144.22%

 Current accounts with other banks- Net                       490,253              302,688              187,565               61.97%

 Placements with Bank Indonesia and other banks             5,234,721             6,916,329          (1,681,608)              (24.31%)

 Allowance for impairment losses                               (5,026)               (3,154)             (1,872)               59.35%

 Placements with Bank Indonesia and other banks - Net       5,229,695            6,913,175           (1,683,480)             (24.35%)

 Spot and derivatives receivables                                    -                    361              (361)             (100.00%)

 Securities                                                16,323,831            23,217,671          (6,893,840)              (29.69%)

 Allowance for impairment losses                                 (511)                 (400)               (111)               27,75%

 Marketable Securities- Net                                16,323,320           23,217,271           (6,893,951)             (29.69%)

 Marketable securities sold under repurchase agreement      8,303,663             4,095,066           4,208,597               102.77%

 Receivables from Securities purchased under agreements
                                                            6,247,318             7,822,847          (1,575,529)              (20.14%)
 to resell

 Other receivables                                            223,138               286,147             (63,009)              (22.02%)

 Loans and sharia financing

 - Related Parties                                            184,848               134,871              49,977                37.06%

 - Third parties                                           54,576,055            46,061,786           8,514,269                18.48%

 Total Loan                                                54,760,903           46,196,657            8,564,246               18.54%

 Allowance for impairment losses                           (1,364,905)           (1,318,612)            (46,293)                3.51%

 Loans- Net                                                53,395,998           44,878,045            8,517,953               18.98%

 Accrued interest income                                      685,734               646,125              39,609                 6.13%

 Prepaid expenses                                             207,452               166,661              40,791                24.48%

 Fixed asset

 Cost                                                       2,230,878             2,109,260             121,618                 5.77%

 Accumulated depreciation                                   (953,165)             (825,010)            (128,155)               15.53%

 Book value Net                                             1,277,713            1,284,250               (6,537)              (0.51%)

 Deferred tax assets, Net                                     472,123               502,238             (30,115)               (6.00%)

 Tax receivables                                                  777                     493               284                57.61%

 Other assets, Net                                            373,402               140,998             232,404               164.83%

 TOTAL ASSET                                              103,854,773          103,031,367              823,406                0.80%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
214      2023 Annual Report
Page 217
                                                                                    MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                 OF BANK PERFORMANCE




Cash

Cash recorded in 2023 reached IDR2,652,775 million, an increase of 33.42% compared to the previous year which reached
IDR1,988,262 million. This increase came from the amount of cash denominated in rupiah which increased significantly and the
amount of cash denominated in foreign currency also increased.


Table of Cash		
						                                                                                                                   (in IDR million)


                                                                                                             Growth
                     Description                          2023               2022
                                                                                                 IDR                     %

                          (1)                              (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Indonesian Rupiah                                      2,593,983           1,946,513            647,470                33.26%

 Foreign Country                                           58,792              41,749             17,043                40.82%

 Total Cash                                             2,652,775          1,988,262             664,513               33.42%


Current accounts with Bank Indonesia

Current accounts with Bank Indonesia in 2023 reached IDR7,971,412 million, a decrease of 26.10% compared to the previous
year which reached IDR10,786,740 million. This decrease comes from the number of current accounts with Bank Indonesia in the
Indonesia Rupiah sector experiencing a large decline.


Table of Current accounts with Bank Indonesia			
						                                                                                                                   (in IDR million)


                                                                                                             Growth
                        Uraian                            2023               2022
                                                                                                 IDR                     %

                          (1)                              (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Indonesia Rupiah                                       7,940,618          10,774,286         (2,833,668)             (26.30%)

 US Dollar                                                 30,794              12,454             18,340              147.26%

 Total Current accounts with Bank Indonesia             7,971,412         10,786,740          (2,815,328)             (26.10%)


Current Accounts with Other Banks - Net

Current accounts with other banks in 2023 reach IDR490,253 million, an increase of 61.97% compared to the previous year which
reached IDR302,688 million. The increase came from an increase in the number of current accounts with other banks and an increase
in foreign currency current accounts with other banks.


Table of Current Accounts with Other Banks - Net
				                                                                                                                     (in IDR million)


                                                                                                             Growth
                     Description                          2023               2022
                                                                                                 IDR                     %

                          (1)                              (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Indonesia Rupiah                                        336,488             190,457            146,031                76.67%

 Foreign Country                                         154,842             112,672             42,170                37.43%

 Total                                                   491,330            303,129             188,201                62.09%

 Allowance for impairment losses                          (1,077)              (441)               (636)              144.22%

 Net                                                     490,253            302,688             187,565                61.97%




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     2023 Annual Report          215
Page 218
Placements With Bank Indonesia and Other Banks - Net

Placements with Bank Indonesia and other banks in 2023 reach IDR5,229,695 million, a decrease of 24.35% compared to the
previous year which reached IDR6,913,175 million. This decrease was caused by a decrease in placements with both Bank Indonesia
and other banks in the interbank call money type.


Table of Placements with Bank Indonesia and Other Banks - Net
		                                                                                                                     (in IDR million)


                                                                                                            Growth
                     Description                            2023            2022
                                                                                                IDR                    %

                           (1)                               (2)             (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Rupiah: IDR

   Time deposit:                                              1,500           7,000              (5,500)             (78.57%)

   Interbank call money:                                  4,083,367        4,165,000            (81,633)              (1.96%)

   Bank Indonesia Deposit Facility (FASBI) Term Deposit
                                                          1,149,854        2,744,329         (1,594,475)             (58.10%)
   Less: Unamortized discount

 Total                                                    5,234,721       6,916,329         (1,681,608)              (24.31%)

 Allowance for impairment losses                             (5,026)         (3,154)             (1,872)              59.35%

 Net                                                      5,229,695       6,913,175         (1,683,480)              (24.35%)



Marketable Securities - Net

Marketable Securities owned by Bank Jatim in 2023 reached IDR16,323,320 million, a decrease of 29.69% compared to the previous
year which reached IDR23,217,271 million. This decrease was due to purchases of 1-5 year securities which decreased from the
previous year.


Table of Marketable Securities Based on Term and Interest Rate
                                                                                                                       (in IDR million)


                                                                                                            Growth
                     Description                            2023            2022
                                                                                                IDR                    %

                           (1)                               (2)             (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Less than 1 year                                         11,668,277         986,769          10,681,508             1,082.47%

 1 - 5 year                                                4,655,554      22,230,902         (17,575,348)             (79.06%)

 Less: Allowance for impairment losses                         (511)            (400)               (111)              27.75%

 Total Marketable Securities                              16,323,320      23,217,271         (6,893,951)              (29.69%)




Marketable Securities Sold With A Repurchase Agreement (Reverse Repo)

Marketable securities sold with a repurchased agreement (reverse repo) based on the net value owned by Bank Jatim in 2023
amounted to IDR6,247,318 million, a decrease of 20.14% compared to the previous year which reached IDR7,822,847 million. This
decline was caused by a lack of repurchase of securities.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
216      2023 Annual Report
Page 219
                                                                              MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                           OF BANK PERFORMANCE




Table of Marketable Securities Sold with a Repurchase Agreement (Reverse Repo) Based on Net Value
                                                                                                                   (in IDR million)


                                                                                                       Growth
                    Description                      2023              2022
                                                                                           IDR                     %

                        (1)                           (2)               (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Government Bonds

 FR0088                                                     -           42,540            (42,540)              (100.00%)

 FR0065                                                     -          116,204           (116,204)              (100.00%)

 VR0078                                                     -          286,561           (286,561)              (100.00%)

 VR0037                                                     -          139,793           (139,793)              (100.00%)

 FR0096                                                     -           28,674            (28,674)              (100.00%)

 VR0053                                                     -          116,820           (116,820)              (100.00%)

 VR0037                                                     -          931,787           (931,787)              (100.00%)

 VR0046                                                     -          192,171           (192,171)              (100.00%)

 VR0050                                                     -        1,004,871         (1,004,871)              (100.00%)

 VR0062                                                     -          906,872           (906,872)              (100.00%)

 VR0075                                                     -          234,413           (234,413)              (100.00%)

 VR0045                                                     -          924,708           (924,708)              (100.00%)

 VR0034                                                     -          382,733           (382,733)              (100.00%)

 VR0036                                                     -          574,107           (574,107)              (100.00%)

 VR0065                                                     -          370,747           (370,747)              (100.00%)

 FR0091                                             418,067                   -           418,067                  0.00%

 FR0084                                             347,529             99,964            247,565                247.65%

 FR0068                                             108,098                   -           108,098                  0.00%

 VR0068                                              24,823            381,593           (356,770)               (93.49%)

 VR0073                                              71,732                   -            71,732                  0.00%

 VR0070                                              25,358                   -            25,358                  0.00%

 VR0083                                              49,706                   -            49,706                  0.00%

 VR0063                                             380,789                   -           380,789                  0.00%

 VR0044                                             290,042            189,961            100,080                 52.68%

 VR0045                                              48,340                   -            48,340                  0.00%

 VR0093                                              48,295                   -            48,295                  0.00%

 VR0072                                              75,325             46,900             28,425                 60.61%

 FR0059                                             584,743                   -           584,743                  0.00%

 FR0082                                             483,626                   -           483,626                  0.00%

 FR0087                                             946,562            368,983            577,579                156.53%

 FR0076                                             592,686                   -           592,686                  0.00%

 FR0080                                             495,055                   -           495,055                  0.00%

 FR0083                                             201,649            192,726              8,924                  4.63%

 FR0085                                             200,538                   -           200,538                  0.00%

 FR0098                                             194,769                   -           194,769                  0.00%

 FR0081                                             286,191            149,068            137,122                 91.99%

 FR0090                                             185,319                   -           185,319                  0.00%

 VR0077                                             188,074            140,651             47,423                 33.72%

 Total                                             6,247,318         7,822,847         (1,575,529)              (20.14%)




                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                               2023 Annual Report           217
Page 220
Other Receivables

Other bills in 2023 will reach IDR223,138 million, a decrease of 22.02% compared to the previous year which reached IDR286,147
million. This decrease was caused by a decrease in transfer and ATM bills.


Table of Other Receivables
							                                                                                                                           (in IDR million)


                                                                                                                      Growth
                      Description                             2023                  2022
                                                                                                          IDR                     %

                           (1)                                  (2)                  (3)              (4) = (2)-(3)        (5) = (4)/(3)

 Transfer receivables and ATM                                 122,780              194,150               (71,370)              (36.76%)

 Other                                                        100,358               91,997                 8,361                 9.09%

 Total Other receivables - Net                                223,138              286,147              (63,009)               (22.02%)


Loans- Net

Loans in 2023 reached IDR53,395,998 million, an increase of 18.98% compared to the previous year which reached ID 44,878,045
million. This increase was dominated by an increase in third party credit.


Table of Loans- Net
					                                                                                                                             (in IDR million)


                                                                                                                      Growth
                      Description                             2023                  2022
                                                                                                          IDR                     %

                           (1)                                  (2)                  (3)              (4) = (2)-(3)        (5) = (4)/(3)

 Loans

   Related Parties (notes 40)                                 184,848                134,871              49,977                37.06%

   Third parties                                           54,576,055             46,061,786           8,514,269                18.48%

 Total Loan                                                54,760,903            46,196,657            8,564,246                18.54%

 Allowance for impairment losses                           (1,364,905)            (1,318,612)            (46,293)                 3.51%

 Loans- Net                                                53,395,998            44,878,045            8,517,953                18.98%



Accrued Interest Income

The interest income that will still be received in 2023 will reach IDR 685,734 million, an increase of 6.13% compared to the previous year
which reached IDR 646,125 million. The increase comes from interest income that will still be received from loans provided in other sectors.


Table of Accrued Interest Income
				                                                                                                                              (in IDR million)


                                                                                                                      Growth
                      Description                             2023                  2022
                                                                                                          IDR                     %

                           (1)                                  (2)                  (3)              (4) = (2)-(3)        (5) = (4)/(3)

 Indonesia Rupiah:

   Loans                                                      377,219              340,021                37,198                10.94%

   Others                                                     308,346              306,091                 2,255                 0.74%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
218      2023 Annual Report
Page 221
                                                                                   MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                OF BANK PERFORMANCE




                                                                                                            Growth
                        Description                      2023               2022
                                                                                                IDR                      %

                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Foreign currency:

   US Dollar                                                169                    13              156               1,200.00%

 Total Accrued interest income                          685,734            646,125             39,609                   6.13%



Prepaid Expenses

Prepaid expenses in 2023 reached IDR207,452 million, an increase of 24.48% compared to the previous year which reached
IDR166,661 million. This increase came from mutual aid pension insurance, other insurance, prepaid rent and others.


Table of Prepaid Expenses
							                                                                                                                  (in IDR million)


                                                                                                            Growth
                        Description                      2023               2022
                                                                                                IDR                      %

                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Mutual aid pension insurance                           97,840              88,765              9,075                 10.22%

 Prepaid rent                                           50,048              37,924             12,124                 31.97%

 Other insurance                                        22,372               6,216             16,156                259.91%

 Other                                                  37,192              33,756              3,436                 10.18%

 Total Prepaid expenses                                207,452            166,661              40,791                 24.48%



Fixed Asset

Fixed assets in 2023 reached IDR1,277,713 million, a decrease of 0.51% compared to the previous year which reached IDR1,284,250
million. The largest decrease came from cquisition cost of land.


Table of Fixed Asset
							                                                                                                                  (in IDR million)


                                                                                                            Growth
                        Description                      2023               2022
                                                                                                IDR                      %

                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Cost

        Land                                            943,060             945,010             (1,950)                (0.21%)

        Buildings                                       203,722             203,402                320                  0.16%

        Office equipment                                736,757             678,419             58,338                  8.60%

        Motor vehicle                                    51,710              50,516              1,194                  2.36%

                                                      1,935,249          1,877,347             57,902                   3.08%



 Construction in progress                                   796                681                 115                 16.89%

 Right of use assets                                    294,833             231,232             63,601                 27.51%

 Total Cost                                           2,230,878          2,109,260            121,618                   5.77%




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report           219
Page 222
                                                                                                             Growth
                       Description                             2023          2022
                                                                                                 IDR                    %

                            (1)                                 (2)           (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Accumulated depreciation

      Buildings                                               125,475        116,296              9,179                 7.89%

      Office equipment                                        642,566        574,638             67,928                11.82%

      Motor vehicle                                            19,490         24,616             (5,126)              (20.82%)

   Right of use assets                                        165,634        109,460             56,174                51.32%

 Total Accumulated depreciation                               953,165       825,010             128,155               15.53%

 Book value Net                                              1,277,713     1,284,250             (6,537)              (0.51%)



Deferred Tax Assets

Deferred tax assets in 2023 reached IDR472,123 million, a decrease of 6.00% compared to the previous year which reached
IDR502,238 million. The average decreased came from Provision for employee bonuses, Allowance for loss of earnings assets, other
reserves, and Unrealized gain on financial assets at fair value through other comprehensive income.


Table of Deferred Tax Assets
    					                                                                                                               (in IDR million)


                                                                                                             Growth
                       Description                             2023          2022
                                                                                                 IDR                    %

                            (1)                                 (2)           (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Provision for employee bonuses                                69,830         73,284             (3,454)               (4.71%)

 Allowance for loss of earnings assets                        328,215        340,736            (12,521)               (3.67%)

 Unrealized gain on financial assets at fair value through
                                                               15,002         26,986            (11,984)              (44.41%)
 other comprehensive income

 Other reserves                                                 7,758         13,381             (5,623)              (42.02%)

 Lease                                                           (995)        (1,014)                19                (1.78%)

 Provision for employee benefits                               52,313         48,865              3,448                 7.06%

 Deferred tax assets                                          472,123       502,238             (30,115)              (6.00%)



Other Assets - Net

Other assets in 2023 reached IDR373,402 million, an increase of 164.83% compared to the previous year which reached IDR140,998
million. The increase came from an increase in deferred expenses, inventories of office stationery and printed supplies and other
assets, net.


Table of Other Assets - Net
    					                                                                                                               (in IDR million)


                                                                                                             Growth
                       Description                             2023          2022
                                                                                                 IDR                    %

                            (1)                                 (2)           (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Deferred expenses                                           126,337        110,112              16,225               14.73%

 Office stationery and printed supplies                        22,263        19,812               2,451               12.37%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
220      2023 Annual Report
Page 223
                                                                                          MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                       OF BANK PERFORMANCE




                                                                                                                     Growth
                         Description                            2023              2022
                                                                                                       IDR                       %

                              (1)                                 (2)               (3)            (4) = (2)-(3)          (5) = (4)/(3)

 Overpaid tax assessment letter                                         -                 -                  -                  0.00%

 Other, Net                                                    283,458            54,486             228,972                  420.24%

 Allowance for impairment in net realizable value              (58,656)          (43,412)            (15,244)                  35.11%

 Total Other assets - Net                                      373,402           140,998            232,404                   164.83%


Liability

Liabilities in 2023 reached IDR89,337,227 million, a decrease of 0.42% compared to the previous year which reached IDR89,715,529.
The decrease came from deposits from customers and deposits from other banks.


Table of Liability
							                                                                                                                          (in IDR million)


                                                                                                                     Growth
                         Description                            2023              2022
                                                                                                       IDR                       %

                              (1)                                 (2)               (3)            (4) = (2)-(3)          (5) = (4)/(3)

 Immediate liabilities                                          987,604            872,514            115,090                   13.19%

 Deposits from customers

    Related Parties                                           12,644,538        15,295,405          (2,650,867)                (17.33%)

    Third parties                                             63,205,317        64,630,285          (1,424,968)                 (2.20%)

 Total Deposits from customers                                75,849,855        79,925,690         (4,075,835)                  (5.10%)

 Deposits from other bank

    Related Parties                                              56,694            141,996             (85,302)                (60.07%)

    Third parties                                              2,503,627         3,168,842           (665,215)                 (20.99%)

 Total Deposits from other bank                                2,560,321         3,310,838           (750,517)                 (22.67%)

 Spot dan derivatif liabilities                                             -                 -                  -               0.00%

 Liabilities of marketable securities sold under repurchase                      3,891,346           4,023,817                 103.40%
                                                               7,915,163
 agreement

 Borrowings                                                     596,977            631,464             (34,487)                 (5.46%)

 Tax payable                                                    143,245             90,783              52,462                  57.79%

 Accrued expenses                                               504,748            520,840             (16,092)                 (3.09%)

 Other liabilities                                              779,314            472,054             307,260                  65.09%

 TOTAL LIABILITIES                                            89,337,227        89,715,529           (378,302)                  (0.42%)



Immediate Liabilities

Immediate liabilities in 2023 reached IDR987,604 million, an increase of 13.19% compared to the previous year which reached
IDR872,514 million. The average increase comes from acceptance pending settlement, ATM Bersama and others.




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          2023 Annual Report            221
Page 224
Table of Immediate Liabilities
						                                                                                                                    (in IDR million)


                                                                                                              Growth
                         Description                      2023                2022
                                                                                                  IDR                     %

                             (1)                           (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Transfer, cheques pending collection, and clearing      308,136             319,871             (11,735)               (3.67%)

 Acceptance pending settement                            150,838             122,431              28,407                23.20%

 Amount involving expenses payable                        73,803              91,760             (17,957)              (19.57%)

 ATM Bersama                                              21,013              12,779               8,234                64.43%

 Others                                                  433,814             325,673             108,141                33.21%

 Immediate liabilities                                   987,604             872,514             115,090                13.19%



Deposits From Customers

Deposits from customers in 2023 reached IDR75,849,855 million, a decrease of 5.10% compared to the previous year which reached
IDR79,925,690 million. The decrease came from deposits from related party customers and deposits from third party customers.


Table of Deposits from Customers
					                                                                                                                     (in IDR million)


                                                                                                              Growth
                         Description                      2023                2022
                                                                                                  IDR                     %

                             (1)                           (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Related Parties                                       12,644,538          15,295,405          (2,650,867)              (17.33%)

 Third parties                                         63,205,317          64,630,285          (1,424,968)               (2.20%)

 Total Deposits from customers                         75,849,855          79,925,690         (4,075,835)               (5.10%)


Deposits From Other Bank

Deposits from other banks in 2023 reached IDR2,560,321 million, a decrease of 22.67% compared to the previous year which
reached IDR3,310,838 million. The decrease came from Deposits from other banks, third parties and related parties.


Table of Deposits from Other Bank
					                                                                                                                     (in IDR million)


                                                                                                              Growth
                         Description                      2023                2022
                                                                                                  IDR                     %

                             (1)                           (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Related Parties                                          56,694             141,996             (85,302)              (60.07%)

 Third parties                                         2,503,627            3,168,842           (665,215)              (20.99%)

 Total Deposits from other bank                        2,560,321           3,310,838           (750,517)               (22.67%)


Borrowings

Borrowings in 2023 reached IDR596,977 million, a decrease of 5.46% compared to the previous year which reached IDR631,464 million.
This decrease came from a decrease in loans received from the Revolving Fund Management Agency for Cooperatives, Micro, Small and
Medium Enterprises (LPDB-KUMKM), the Government of East Java Province (related parties) and PT Sarana Multigriya Financial.




          PT Bank Pembangunan Daerah Jawa Timur Tbk
222       2023 Annual Report
Page 225
                                                                                       MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                    OF BANK PERFORMANCE




Table of Borrowings
					                                                                                                                       (in IDR million)


                                                                                                                Growth
                      Description                          2023                2022
                                                                                                    IDR                     %

                           (1)                               (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Ministry of Public Works and Housing (PUPR) of the
                                                          490,810              481,532               9,278                 1.93%
 Republic of Indonesia

 Revolving Fund Management Agency for Cooperatives,
                                                            39,253              76,698             (37,445)              (48.82%)
 Micro, Small and Medium Enterprises (LPDB-KUMKM)

 PT Sarana Multigriya Financial                             66,821              71,867              (5,046)               (7.02%)

 Government of East Java Province (Related parties)                93            1,367              (1,274)              (93.20%)

 Total Borrowings                                         596,977              631,464             (34,487)               (5.46%)



Tax Payable

Tax payable in 2023 reached IDR143,245 million, an increase of 57.79% compared to the previous year which reached IDR90,783
million. The increase came from income tax article 21, income tax article 25, income tax article 29 (note 22f) and income tax article
23/4 (2).


Table of Tax Payable
						                                                                                                                      (in IDR million)


                                                                                                                Growth
                      Description                          2023                2022
                                                                                                    IDR                     %

                           (1)                               (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Corporate Income Tax article 25                           59,450              43,577               15,873               36.43%

 Corporate Income Tax 21                                   48,108              30,453               17,655               57.97%

 Corporate Income Tax 23/4 (2)                             14,321              10,489                3,832               36.53%

 Corporate Income Tax 29 (Note 22f)                        20,951                5,803              15,148               261.04%

 Others                                                       415                 461                 (46)                (9.98%)

 Tax payable                                              143,245              90,783              52,462                57.79%



Accrued Expenses

Expenses still to be paid in 2023 reached IDR504,748 million, a decrease of 3.09% compared to the previous year which reached
IDR520,840 million. The decrease came from provision for employee bonuses.


Table of Accrued Expenses
				                                                                                                                        (in IDR million)


                                                                                                                Growth
                      Description                          2023                2022
                                                                                                    IDR                     %

                           (1)                               (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Employee bonuses                                         367,526              385,706             (18,180)               (4.71%)

 Interest                                                 137,222              135,134               2,088                 1.55%

 Total Accrued expenses                                   504,748             520,840             (16,092)               (3.09%)




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report           223
Page 226
Other Liabilities

Other liabilities in 2023 reached IDR779,314 million, an increase of 65.09% compared to the previous year which reached IDR472,054
million. The average increase came from Provision of employee benefit, lease liabilities, principal – channeling loans received,
provision and credit administrition and others.


Table of Other Liabilities Based on Rupiah Equivalents
			                                                                                                                        (in IDR million)


                                                                                                              Growth
                       Description                        2023                2022
                                                                                                  IDR                      %

                            (1)                            (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 INDONESIA RUPIAH

 Provision of employee benefit                           275,328             257,184              18,144                  7.05%

 Security deposits                                       119,135             132,236             (13,101)                (9.91%)

 Lease liabilities                                        29,538              23,322               6,216                 26.65%

 Principal – channeling loans received                     8,303               7,683                 620                  8.07%

 Interest – channeling loans received                      3,582               3,592                 (10)                (0.28%)

 Provision and credit administrition                             15                   -               15                  0.00%

 Estimated losses on commitments and contingencies         3,450               3,020                 430                 14.24%

 Other                                                     2,173               1,390                 783                 56.33%

                                                         441,524             428,427              13,097                  3.06%

 FOREIGN CURRENCY

 Other

    US Dollar                                            274,271              39,325             234,946                597.45%

    Singapore Dollar                                      62,209               3,538              58,671               1,658.31%

    Hong Kong Dollar                                              -                  20              (20)              (100.00%)

    Japan Yen                                              1,310                      -            1,310                  0.00%

    Euro                                                          -              744                (744)              (100.00%)

 Total Other liabilities                                 337,790              43,627             294,163                674.27%

 Total                                                   779,314             472,054             307,260                 65.09%


Temporary Syirkah Funds

Temporary syirkah funds in 2023 reached IDR2,366,477 million, an increase of 26.55% compared to the previous year which reached
IDR1,869,977. The increase came from deposits from related party customers and third parties.


Table of Temporary Syirkah Fund						
                                                                                                                           (in IDR million)


                                                                                                              Growth
                       Description                        2023                2022
                                                                                                  IDR                      %

                            (1)                            (2)                 (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Deposits from customer

    Related parties                                        3,764               2,302               1,462                 63.51%

    Third parties                                      2,343,291            1,839,390            503,901                 27.40%

 Total deposits from customers                         2,347,055           1,841,692             505,363                 27.44%




           PT Bank Pembangunan Daerah Jawa Timur Tbk
224        2023 Annual Report
Page 227
                                                                                     MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                  OF BANK PERFORMANCE




                                                                                                                Growth
                          Description                         2023            2022
                                                                                                  IDR                       %

                              (1)                               (2)            (3)            (4) = (2)-(3)          (5) = (4)/(3)

 Deposits from othr banks

   Related parties                                                    -              -                  -                  0.00%

   Third parties                                               19,422         28,285              (8,863)                (31.33%)

 Total deposits from other bank                                19,422         28,285              (8,863)                (31.33%)

 Total Temporary Syirkah Fund                               2,366,477      1,869,977             496,500                  26.55%




Equity

Equity in 2023 reached IDR12,151,069 million, an increase of 6.16% compared to the previous year which reached IDR11,445,861
million. The increase comes from general reserves.


Table of Equity
							                                                                                                                     (in IDR million)


                                                                                                                Growth
                          Description                         2023            2022
                                                                                                  IDR                       %

                              (1)                               (2)            (3)            (4) = (2)-(3)          (5) = (4)/(3)

 Share capital

   Series A: IDR250 (full Rupiah) – (par value per share

   Series B: IDR250 (full Rupiah) – (par value per share

 Authorized:

   Series A: 24.000.000.000 shares

   Series B: 12.000.00.000 shares

 Issued and fully paid:

   Series A - 11.934.147.982 shares

   Series B - 3.081.350.100 shares                           3,753,875      3,753,875                       -               0.00%

 Other Paid-In Capital                                        532,734         532,734                       -               0.00%

 Revaluation surplus of fixed assets                          788,049         789,998              (1,949)                 (0.25%)

 Remeasurement of defined employee benefit liability –
                                                             (117,777)       (100,912)            (16,865)                 16.71%
 net of deferred tax

 Unrealized gain (loss) financial assets measured at fair
                                                              (63,958)       (115,048)             51,090                 (44.41%)
 value through other comprehensive income

 Retained earnings

   General reserve                                           5,788,041      5,042,390             745,651                  14.79%

   Unappropriated                                            1,470,105      1,542,824             (72,719)                 (4.71%)

 Total Equity                                               12,151,069     11,445,861            705,208                    6.16%



Share Capital

Share capital in 2023 reached IDR3,753,875 million, stable at 0% compared to the previous year which reached IDR3,753,875 million.
Theres is no changes, because it comes from series B shares.




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     2023 Annual Report             225
Page 228
Additional Paid in Capital - Net

Additional paid-in capital in 2023 reached IDR532,734 million, stable at 0.00% compared to the previous year which reached
IDR532,734 million. There are no changes due to stock options for the Management and Employee Stock Option Plan (MESOP)
program.


Table of Additional Paid in Capital - Net
					                                                                                                                   (in IDR million)


                                                                                                             Growth
                      Description                        2023                2022
                                                                                                 IDR                    %

                           (1)                             (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Share premium from the Initial Public Offering (IPO)    509,369             509,369                   -                0.00%

 Stock option for the Management and Employee Stock
                                                          23,365              23,365                   -                0.00%
 Option Plan (MESOP)

 Total                                                   532,734            532,734                    -               0.00%




Revaluation Surplus of Fixed Assets                                 Unrealized Gain (Loss) Financial Assets Measured at
                                                                    Fair Value Through Other Comprehensive Income
The revaluation surplus of fixed assets in 2023 reached
IDR788,049 million, a decrease of 0.25% compared to the             Unrealized loss on financial assets measured at fair value
previous year which reached IDR789,998 million. This decrease       through other comprehensive income – net of deferred tax
came from the revaluation of fixed assets.                          in 2023 reached IDR63,958 million, a decrease of 44.41%
                                                                    compared to the previous year which reached IDR115,048
Remeasurement of Defined Employee Benefit                           million.
Liability – Net of Deffered Tax
                                                                    Retained Earnings
Remeasurement of defined employee benefit liability – net of
deferred tax in 2023 reached IDR117,777 million, an increase        Retained earnings in 2023 reached IDR1,470,105 million,
of 16.71% compared to the previous year which reached               a decrease of 4.71% compared to the previous year which
IDR100,912 million.                                                 reached IDR1,542,824 million. The increase came from loan
                                                                    interest income and unappropriated.


Table of Retained Earnings
							                                                                                                                 (in IDR million)


                                                                                                             Growth
                      Description                        2023                2022
                                                                                                 IDR                    %

                           (1)                             (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Unappropriated                                         1.470.105          1.542.824           (72.719)               (4,71%)

 Retained Earnings                                      1.470.105          1.542.824           (72.719)               (4,71%)




         PT Bank Pembangunan Daerah Jawa Timur Tbk
226      2023 Annual Report
Page 229
                                                                                  MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                               OF BANK PERFORMANCE




Statement of Profit and Loss and Other Comprehensive Income

Table of Statement of Profit and Loss and Other Comprehensive Income
			                                                                                                                   (in IDR million)


                                                                                                           Growth
                       Description                           2023          2022
                                                                                               IDR                    %

                              (1)                             (2)           (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Interest and Sharia Income                                7,357,284     6,882,651            474,633                 6.90%

 Interest and Sharia Expenses                             (2,316,184)   (1,965,595)          (350,589)               17.84%

 INTEREST AND SHARIA INCOME, NET                           5,041,100     4,917,056            124,044                 2.52%

 OTHER OPERATIONAL INCOME

 Reversal for impairment losses on financial assets                 -              -                  -                0.00%

 Current, savings and time deposit administration            193,996       184,480               9,516                 5.16%

 Receipt of white-off loans                                  127,264        56,653              70,611               124.64%

 Loan administration                                          30,880        42,511             (11,631)              (27.36%)

 Fees and commission other than loan given                    22,093        11,105              10,988                98.95%

 Other                                                       274,187       238,820              35,367                14.81%

 TOTAL OTHER OPERATIONAL INCOME                              648,420       533,569            114,851                21.53%

 OTHER OPERATIONAL EXPENSES

 Labor and employee benefits                              (1,762,643)   (1,674,698)            (87,945)                5.25%

 General and administration                               (1,182,987)   (1,229,388)             46,401                (3.77%)

 Allowance for impairment losses on financial assets       (694,136)      (404,659)          (289,477)                71.54%

 Other expenses                                            (194,713)      (201,054)              6,341                (3.15%)

 TOTAL OTHER OPERATIONAL EXPENSES                         (3,834,479)   (3,509,799)          (324,680)                9.25%

 OPERATIONAL INCOME                                        1,855,041     1,940,826            (85,785)               (4.42%)

 NON- OPERATIONAL REVENUE (EXPENSE)

 Tax service fee                                               6,444         6,084                 360                 5.92%

 Gain on sale of fixed assets                                  5,608         5,274                 334                 6.33%

 Gain on sale of securities net                                8,698         2,757               5,941               215.49%

 Gain (loss) on foreign exchange                               2,390               -             2,390                 0.00%

 Others non-operating income                                  33,901       158,513           (124,612)               (78.61%)

 Non-operating expenses                                      (19,339)      (83,405)             64,066               (76.81%)

 TOTAL NON-OPERATING INCOME (EXPENSES)                        37,702        89,223            (51,521)              (57.74%)

 INCOME BEFORE TAX EXPENSE                                 1,892,743     2,030,049           (137,306)               (6.76%)

 TAX EXPENSES - NET                                        (422,638)     (487,225)             64,587               (13.26%)

 INCOME FOR THE YEAR                                       1,470,105     1,542,824            (72,719)               (4.71%)

 OTHER COMPREHENSIVE INCOME

 Items that will not be reclassified to profit or loss:
 subsequently to profit or loss:

 Revaluation surplus (deficit) of fixed assets                (1,949)       40,281             (42,230)             (104.84%)

 Remeasurement of employee benefit liability                 (21,898)      100,163           (122,061)              (121.86%)

 Beginning balance adjustment                                       -      (19,678)             19,678              (100.00%)

 Related income taxes                                          5,033       (17,586)             22,619              (128.62%)

                                                             (18,814)      103,180           (121,994)              (118.23%)




                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                  2023 Annual Report         227
Page 230
                                                                                                                                    Growth
                       Description                                  2023                      2022
                                                                                                                         IDR                      %

                             (1)                                      (2)                       (3)                 (4) = (2)-(3)          (5) = (4)/(3)

 Items that will be classified subsequently to profit or loss:

 Unrealized gain (loss) on financial assets measured at fair
                                                                     63,074                   (400,611)                  463,685                (115.74%)
 value through other comprehensice income

 Beginning balance adjustment                                                -                  (3,730)                    3,730                (100.00%)

 Related income taxes                                               (11,984)                    76,116                   (88,100)               (115.74%)

                                                                     51,090                   (328,225)                  379,315                (115.57%)

 OTHER COMPREHENSIVE INCOME – NET OF TAX                             32,276                  (225,045)                   257,321             (114.34%)

 TOTAL COMPREHENSIVE INCOME FOR THE YEAR                          1,502,381                  1,317,779                   184,602                 14.01%

 BASIC EARNINGS PER SHARE (IN FULL AMOUNT)                             97.91                   102.75                      (4.84)                (4.71%)



Graph of Profit and Loss and Other Comprehensive Income Report                                                                                    (in IDR million)

                 5,041,100
  4,917,056



                                                                                 3,834,479
                                                                 3,509,799




                                                                                                 1,940,826        1,855,041
                                                                                                                                    1,542,824     1,470,105

                                                  648,420
                                    533,569




       Interest and                     Other and                     Oprational                            Oprational                    Income
    Sharia Income, Net               Oprational Income                Expenses                               Income                     for the Year

                                                                   2022               2023


Interest and Sharia Income

In 2023, Bank Jatim’s net interest and sharia income was                          parties, namely placements with Bank Indonesia and other
recorded at IDR7,357,284 million, an increase of 6.90% from                       banks, margin securities and profit sharing income and Bank
last year’s with IDR6,882,651 million. This increase was mainly                   Indonesia certificate.
influenced by the increase in related income, income from third

Table of Interest and Sharia Income
					                                                                                                                                             (in IDR million)


                                                                                                                                    Growth
                       Description                                  2023                      2022
                                                                                                                         IDR                      %

                             (1)                                      (2)                       (3)                 (4) = (2)-(3)          (5) = (4)/(3)

 Related parties (note 40)

   Loans                                                             13,961                      7,926                     6,035                  76.14%

   Margin and revenue sharing                                                7                        126                   (119)                (94.44%)

 Third parties

   Loans                                                          4,837,915                  4,261,412                   576,503                  13.53%

   Placement with Bank Indonesia and other banks                  1,806,519                    932,818                   873,701                  93.66%




         PT Bank Pembangunan Daerah Jawa Timur Tbk
228      2023 Annual Report
Page 231
                                                                                    MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                 OF BANK PERFORMANCE




                                                                                                             Growth
                         Description                     2023                2022
                                                                                                 IDR                   %

                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

   Securities

        Amortized cost                                   423,992           1,392,992           (969,000)              (69.56%)

   Margin and revenue sharing                            157,455             135,829              21,626               15.92%

   Provision                                              90,157             110,971             (20,814)             (18.76%)

   Bank Indonesia Certificate                             23,226              17,442               5,784               33.16%

   Others                                                   4,052             23,135             (19,083)             (82.49%)

 Total Interest Income and Sharia                      7,357,284           6,882,651            474,633                6.90%


Interest and Sharia Expenses

Interest and sharia expenses in 2023 reached IDR2,316,184 million, an increase of 17.84% compared to the previous year which
reached IDR1,965,595 million. The increase came from time deposits, savings, repo, and deposits from other banks.


Table of interest and sharia expenses
						                                                                                                                 (in IDR million)


                                                                                                             Growth
                         Description                     2023                2022
                                                                                                 IDR                   %

                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Time deposit                                          1,669,282           1,432,248            237,034                16.55%

 Saving                                                  280,153             264,782              15,371                5.81%

 Current account                                         200,924             221,779             (20,855)              (9.40%)

 Repo                                                    117,839              30,291              87,548              289.02%

 Borrowings                                                 8,543             10,357              (1,814)             (17.51%)

 Mudharabah profit-sharing expense                               -                   -                  -               0.00%

 Loan interest expense                                       763                1,549               (786)             (50.74%)

 Deposits from other bank                                 38,680                4,589             34,091              742.89%

 Premium on other insurance                                      -                   -                  -               0.00%

 Premium on marketable securities                                -                   -                  -               0.00%

 Total Interest and Sharia Expenses                    2,316,184           1,965,595            350,589               17.84%


Interest and Sharia Income - Net

Net interest and sharia income in 2023 will reach IDR5,041,100 million, an increase of 2.52% compared to the previous year which
reached IDR4,917,056 million. This increase was mainly influenced by an increase in sharia interest income.


Table of Interest and Sharia Income - Net
    			                                                                                                                (in IDR million)


                                                                                                             Growth
                         Description                     2023                2022
                                                                                                 IDR                   %

                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Interest and sharia income                             7,357,284           6,882,651            474,633                6.90%

 Interest and sharia expenses                          (2,316,184)         (1,965,595)          (350,589)              17.84%

 Interest and sharia income - Net                       5,041,100          4,917,056            124,044                 2.52%




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report        229
Page 232
Other Operational Income

Other operating income in 2023 reached IDR648,420 million, an increase of 21.53% compared to the previous year which reached
IDR533,569 million. This increase was due to several influencing factors, namely current accounts, savings, and time deposit
administration, receipt of white-off loans, fees and commission other than loan given and others.


Table of Other Operational Income
			           			                                                                                                       (in IDR million)


                                                                                                             Growth
                       Description                        2023               2022
                                                                                                 IDR                    %
                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Reversal for impairment losses on financial assets              -                  -                  -                0.00%
 Current, savings and time deposit administration        193,996             184,480              9,516                 5.16%
 Receipt of white-off loans                              127,264              56,653             70,611               124.64%
 Loan administration                                      30,880              42,511            (11,631)              (27.36%)
 Fees and commission other than loan given                22,093              11,105             10,988                98.95%
 Others                                                  274,187             238,820             35,367                14.81%
 Total Other Operational Income                          648,420            533,569             114,851               21.53%


Operating Expenses

Operational expenses in 2023 reached IDR3,834,479 million, an increase of 9.25% compared to the previous year which reached
IDR3,509,799 million. This increase was mainly due to an increase in the allowance for impairment losses on financial assets, and
labor and employee benefits.


Table of Operating Expenses
    					                                                                                                               (in IDR million)


                                                                                                             Growth
                       Description                        2023               2022
                                                                                                 IDR                    %
                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Labor and employee benefits                           (1,762,643)         (1,674,698)           (87,945)                5.25%
 General and adminitration                             (1,182,987)         (1,229,388)            46,401               (3.77%)
 Allowance for impairment losses on financial assets    (694,136)           (404,659)           (289,477)              71.54%
 Other expenses                                         (194,713)           (201,054)              6,341               (3.15%)
 Total Operating Expenses                              (3,834,479)        (3,509,799)          (324,680)                9.25%


Operational Income

Operational income in 2023 reached Rp1,855,041 million, a decrease of 4.42% compared to the previous year which reached
IDR1,940,826 million. This is influenced by the increase in operational expenses.


Table of Operational Income
    					                                                                                                               (in IDR million)


                                                                                                             Growth
                       Description                        2023               2022
                                                                                                 IDR                    %
                              (1)                          (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Interest and sharia income - Net                       5,041,100           4,917,056            124,044                 2.52%
 Total other operational income                           648,420             533,569            114,851               21.53%
 Total operating expenses                              (3,834,479)         (3,509,799)          (324,680)                9.25%
 Laba operasional                                       1,855,041          1,940,826             (85,785)              (4.42%)




          PT Bank Pembangunan Daerah Jawa Timur Tbk
230       2023 Annual Report
Page 233
                                                                                   MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                OF BANK PERFORMANCE




Non-Operational Revenue (Expense)

Operational income (expenses) in 2023 reached IDR37,702 million, a decrease of 57.74% compared to the previous year which
reached IDR89,223 million. This decrease was caused by a decrease in other non-operational income.


Table of Non-Operational Revenue (Expense)
				                                                                                                                    (in IDR million)


                                                                                                            Growth
                      Description                        2023               2022
                                                                                                IDR                     %
                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Tax service fee                                          6,444               6,084                360                 5.92%

 Gain on sale of fixed assets                             5,608               5,274                334                 6.33%

 Gain on sale of securties net                            8,698               2,757              5,941               215.49%

 Gain (loss) on foreign exchange                          2,390                     -            2,390                 0.00%

 Other non-operational income                            33,901             158,513           (124,612)              (78.61%)

 Non-operational expenses                               (19,339)            (83,405)            64,066               (76.81%)

 Total non-operational revenue (expense)                 37,702             89,223            (51,521)               (57.74%)




Income Before Tax Expense

Income before tax expense in 2023 reached IDR1,892,743 million, a decrease of 6.76% compared to the previous year which reached
IDR2,030,049 million. This decrease was caused by a decrease in operating income.


Table of Income Before Tax Expense
					                                                                                                                   (in IDR million)


                                                                                                            Growth
                      Description                        2023               2022
                                                                                                IDR                     %
                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Operational income                                    1,855,041           1,940,826            (85,785)               (4.42%)

 Total non-operational income – net                       37,702              89,223            (51,521)              (57.74%)

 Total income before tax expense                       1,892,743          2,030,049           (137,306)               (6.76%)




Tax Expense – Net

The Tax expense - net in 2023 reached IDR422,638 million, a decrease of 13.26% compared to the previous year which reached
IDR487,225 million. The decrease in tax expense - net was influenced by decrease income.


Table of Tax Expense - Net
					                                                                                                                   (in IDR million)


                                                                                                            Growth
                      Description                        2023               2022
                                                                                                IDR                     %
                            (1)                           (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Tax expense - Net                                     (422,638)           (487,225)           64,587                (13.26%)




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    2023 Annual Report          231
Page 234
Income of the Year

Income of the year in 2023 reached IDR1,470,105 million, a decrease of 4.71% compared to the previous year which reached
IDR1,542,824 million. This decrease was caused by a decrease in income before tax expense.


Table of Income of the Year
					                                                                                                                     (in IDR million)


                                                                                                             Growth
                       Description                          2023             2022
                                                                                                 IDR                      %

                             (1)                              (2)             (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Income before tax expense                                 1,892,743       2,030,049           (137,306)                 (6.76%)

 Tax expense - Net                                         (422,638)        (487,225)             64,587                (13.26%)

 Total income for the year                                 1,470,105       1,542,824            (72,719)                 (4.71%)


Other Comprehensive Income Net After Tax

Other comprehensive income in 2023 reached IDR32,276 million, an increase of 114.34% compared to the previous year which
reached IDR225,045 million. This increase came from unrealized gains (losses) on financial assets measured at fair value through
other comprehensive income.


Table of Other Comprehensive Income Net After Tax
    					                                                                                                                 (in IDR million)


                                                                                                             Growth
                          Uraian                            2023             2022
                                                                                                 IDR                      %

                             (1)                              (2)             (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Items that will not be reclassified to profit or loss:

   Fixed assets revaluation surplus                          (1,949)         40,281             (42,230)              (104.84%)

   Remeasurement of defined benefit plans                  (21,898)         100,163            (122,061)              (121.86%)

   Beginning balance adjustment                                     -       (19,678)             19,678               (100.00%)

   Related income taxes                                       5,033         (17,586)             22,619               (128.62%)

                                                           (18,814)         103,180           (121,994)               (118.23%)

 Item that will be reclassified to profit or loss:

   Unrealized gain (loss) on financial asset measured at
                                                             63,074        (400,611)            463,685               (115.74%)
   fair value through other comprehensive income

   Beginning balance adjustment                                     -        (3,730)              3,730               (100.00%)

   Related income taxes                                    (11,984)          76,116             (88,100)              (115.74%)

                                                             51,090        (328,225)           379,315                (115.57%)

 OTHER COMPREHENSIVE INCOME NET AFTER TAX                    32,276        (225,045)           257,321                (114.34%)


Comprehensive Income of the Year

Comprehensive income of the year in 2023 reached IDR1,502,381 million, an increase of 14.01% compared to the previous year
which reached IDR1,317,779 million. This increase was triggered by an increase in other comprehensive income.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
232      2023 Annual Report
Page 235
                                                                                          MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                       OF BANK PERFORMANCE




Table of Comprehensive Income of the Year
     				                                                                                                                      (in IDR million)


                                                                                                                   Growth
                       Description                              2023              2022
                                                                                                       IDR                     %

                             (1)                                 (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Income for the year                                          1,470,105          1,542,824            (72,719)                (4.71%)

 Other comprehensive income net after tax                        32,276          (225,045)            257,321               (114.34%)

 Comprehensive income of the year                             1,502,381         1,317,779             184,602                14.01%



Basic Earnings Per Share

Basic earnings per share in 2023 reach basic earnings per share of IDR97.91, a decrease of 4.71% compared to the previous year
which reached basic earnings per share of IDR102.75. This decrease was triggered by a decrease in profits for calculating basic
earnings per share.


Table of Basic Earnings Per Share
		        				                                                                                                                 (in IDR million)


                                                                                                                   Growth
                       Description                              2023              2022
                                                                                                       IDR                     %

                             (1)                                 (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 Earnings for the calculation of basic earnings per share
                                                                 1,470,105          1,542,824            (72,719)                (4.71%)
 (in IDR million)

 Number of weighted average share oustanding                15,015,498,082     15,015,498,082                      -               0.00%

 Basic earning per share (in full IDR)                                 97.91          102.75                 (4.84)              (4.71%)


Cash Flow Report

Table of cash flow report
						                       		                                                                                                (in IDR million)


                                                                                                                   Growth
                       Description                              2023              2022
                                                                                                       IDR                     %

                             (1)                                 (2)                (3)            (4) = (2)-(3)        (5) = (4)/(3)

 CASH FLOWS FROM OPERATING ACTIVITIES

 Receipt of interest, sharia, fees, and commissions           7,324,150          7,030,426            293,724                  4.18%

 Payment of interest, sharia, fees, and commissions          (2,310,264)        (1,931,344)          (378,920)                19.62%

 Receipt of other operational income                            521,156            476,364              44,792                 9.40%

 Collection of loans-written off                                127,264             56,653              70,611               124.64%

 Receipt from non-operating income                               60,386            172,136           (111,750)               (64.92%)

 Payment for non-operating income                               (19,337)           (82,913)             63,576               (76.68%)

 Payment for salaries and employee benefits                  (1,763,167)        (1,659,597)          (103,570)                 6.24%

 Payment of general and administrative expenses              (1,283,327)        (1,296,665)             13,338                (1.03%)

 Payment of taxes                                              (368,455)          (389,372)             20,917                (5.37%)

 Cash flow from operating activities before changes in
                                                              2,288,406          2,375,688            (87,282)                (3.67%)
 operating assets and liabilities




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          2023 Annual Report          233
Page 236
                                                                                                        Growth
                        Description                           2023          2022
                                                                                             IDR                   %

                               (1)                             (2)           (3)        (4) = (2)-(3)        (5) = (4)/(3)

Changes in operating assets and liabilities

Placements with bank Indonesia and other bank                  (1,500)       (7,000)           5,500              -78.57%

Spot and derivatif receivables                                       -             -                -                    -

Loans                                                      (9,193,797)   (4,347,656)     (4,846,141)              111.47%

Marketable securities sold under repurchased agreement     (4,208,597)   (4,095,066)       (113,531)                2.77%

Marketable securities sold under repurchase agreement       1,575,529    (4,402,162)       5,977,691             (135.79%)

Other assets and other receivables                          (166,678)      (117,044)         (49,634)              42.41%

Immediate liabilities                                         115,091       278,638        (163,547)              (58.70%)

Deposits from customers                                    (3,570,473)   (1,434,484)      (2,135,989)             148.90%

Deposits from other banks                                   (759,380)      (848,777)          89,397              (10.53%)

Liabilities marketable securities sold under repurchased
                                                            4,023,817     3,891,346          132,471                3.40%
agreement

Other liabilities                                             200,981       (39,476)         240,457             (609.12%)

Net cash flow provided by (used in) operating activities   (9,696,601)   (8,745,993)       (950,608)              10.87%

Cash flow from investing activites

Proceed (payment of) from borrowings                        6,948,323     8,846,760       (1,898,437)             (21.46%)

Acquisition of fixed assets                                 (149,298)      (248,269)          98,971              (39.86%)

Fixed asset sold                                                5,608         5,274              334                6.33%

Net cash flow provided by (used in) investing activities    6,804,633     8,603,765      (1,799,132)             (20.91%)

Cash flows from financing activities

Proceed (payment of) from borrowings                           43,578       (23.825)          67,403             (282.91%)

Additional borrowings                                                -             -                -               0.00%

Payment of cash dividend                                    (797,173)      (782.457)         (14,716)               1.88%

Payment of lease liabilities                                    6,316       (21,111)          27,427             (129.92%)

Net cash flows used in financing activities                 (747,279)     (827,393)          12,712               (1.54%)

Net increase (decrease) in cash and cash equivalents       (3,639,247)    (969,621)      (2,669,626)             275.33%

Cash and cash equivalents at beginning of year             19,988,131    20,957,752        (969,621)              (4.63%)

Effect of foreign currencies exchange rate changes                   -             -                -               0.00%

Cash and cash equivalents at year end                      16,348,884    19,988,131      (3,639,247)             (18.21%)

Cash and cash equivalents consist of:

Cash                                                        2,652,775     1,988,262          664,513               33.42%

Current accounts with bank Inodnesia                        7,971,412    10,786,740       (2,815,328)             (26.10%)

Current accounts with other bank                              491,330       303,129          188,201               62.09%

Placement with bank Indonesia and other bank (maturity
                                                            5,233,367     6,910,000    (1,676,633,00)             (24.26%)
within three months or less since the acquisition date)

Total cash and cash equivalents                            16,348,884    19,988,131      (3,639,247)             (18.21%)




        PT Bank Pembangunan Daerah Jawa Timur Tbk
234     2023 Annual Report
Page 237
                                                                                           MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                        OF BANK PERFORMANCE




Graph of Cash Flow Report                                                                                                         (in IDR million)


                                                          8,603,765
                                                                         6,804,633




                                                                                                          (827,393)      (747,279)




          (8,745,993)    (9,696,601)


         Net Cash Flow Provided By                      Net Cash Flow Provided By                         Net Cash Flow Used In
        (Used In) Oprating Activities                  (Used Id) Investing Activities                      Financing Activities


                                                              2022           2023


At the end of 2023, Bank Jatim posted a final cash and cash equivalents balance of IDR16,348,884 million, a decrease of 18.21%
compared to 2022 which amounted to IDR19,988,131 million. This decrease in cash balances was mainly due to a decrease in
placements with Bank Indonesia and other banks and net cash obtained from operating activities.



Cash Flows From Operating Activities                                     resources such as credit provided, customer deposits, and tax
                                                                         payments into cash that has been recognized and obtained.
Net cash flow used for operating activities in 2023, amounted
to IDR9,696,601 million, an increase of 10.87% compared to               Cash Flows From Funding Activities
2022 which amounted to IDR8,745,993 million. Net cash flow
is the reduction between cash inflow and cash outflow. The               Net cash used for financing activities in 2023 amounted
highest cash inflow came from, among other things, an increase           to IDR747,279 million, a decrease of 1.54% compared to
in interest, investment and sharia income, premium income,               2022 which amounted to IDR827,393 million. This is mainly
other operational income, non-operational income, an increase            influenced by the loan payments received. The highest cash
in customer deposits, and an increase in deposits from other             inflow came from, among other things, an increase in loans
banks. The highest cash outflows came from lending, interest             received. The highest cash outflows came from dividend
payments and other operational expenses. This means that Bank            payments and decreases in securities issued. This means that
Jatim is able to carry out good business processes by utilizing its      Bank Jatim is still able to obtain cash in the form of funding
operational resources such as loans, customer deposits, and tax          from loans received which is able to cover cash outflows in the
payments into cash that has been recognized and obtained.                form of dividends and others.


Cash Flows From Investment Activities
                                                                         Ability To Pay Debt and
Net cash flow obtained from operating activities in 2023,                Receivable Collectability
amounted to IDR6,804,633 million, a decrease of 20.91%
compared to 2022 which amounted to IDR8,603,765 million.                 Ability to Pay Debt
Net cash flow is the reduction between cash inflow and cash
outflow. The highest cash inflow came from, among other                  The ability of Bank Jatim to pay debts is measured by several ratios,
things, an increase in interest, investment and sharia income,           including liquidity ratios, solvency ratios and profitability ratios.
premium income, other operational income, non-operational                These ratios will become benchmarks for banks in measuring
income, an increase in customer deposits, and an increase                possible risks that may arise in bank operational activities.
in deposits from other banks. The highest cash outflows
came from loan disbursement, interest payments and other                 Bank Jatim has a policy regarding fulfilling creditors’ rights which
operational expenses. This means that Bank Jatim is able to              is used as a guideline in making loans to creditors. The aim of
carry out good business processes by utilizing its operational           the policy in question is to maintain the fulfillment of rights




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               2023 Annual Report        235
Page 238
and maintain creditors’ trust in Bank Jatim. This policy includes         Ability To Pay Short-Term Debt (Bank Liquidity)
considerations in entering into agreements, as well as follow-up
actions in fulfilling obligations to creditors. Bank Jatim explains the   The liquidity ratio is measured by comparing the amount of
creditor’s rights in the Credit Agreement (PK), including;                loan granted to the amount of customer deposits (Loan to
1 The bank ensures that the creditor receives the principal               Deposit Ratio/LDR) to determine the Bank’s ability to repay
    and interest on the loan according to the agreed schedule.            obligations to customers who have deposited their funds with
2 The bank ensures that the creditor receives the loan usage              loan and financing provided to debtors as a source of liquidity.
    report.                                                               LDR in 2023 is 70.03%. an increase of 13.53% compared to
3 The bank ensures that creditors receive fines for payments              2022 which was 56.50%. This means that Bank Jatim’s liquidity
    that exceed the 4 agreed schedule.                                    has improved and is in good condition so that it is able to meet
4 The bank ensures that principal and interest payments on                its short-term obligations.
    loans are not subject to penalties if the payment schedule
    falls on a holiday and is paid on the following working day.


Table of Liquidity Ration
								                                                                                                                               (in %)


                                                                                                                           Increase/
                                 Description                                        2023                 2022
                                                                                                                           Decrease

                                       (1)                                            (2)                 (3)                (2)-(3)

 Loan to Deposit Ratio (LDR)                                                       70.03%               56.50%               13.53%


Ability to Pay Short-Term Debt (Bank Solvability)

The Capital Adequacy Ratio (CAR) in 2023 is at a safe level of            where the ratio is higher than the BI/FSA minimum adequacy
25.71%, a slight increase of 0.97% compared to 2022 which                 ratio and the Bank’s capital structure has complied with BI/OJK
was recorded at a level of 24.74%. The level of Bank Jatim’s              regulations of 14%. This shows that the Bank has managed the
CAR ratio shows that the bank’s capital structure has the                 Bank’s capital well and has sufficient capital to protect against
capability to balance market risk, credit risk and operational risk       solvency risks.

Table of Solvability Ratio
									                                                                                                                              (in %)


                                                                                                                           Increase/
                                 Description                                        2023                 2022
                                                                                                                           Decrease

                                       (1)                                            (2)                 (3)                (2)-(3)

 CAR-TIER I                                                                        24.56%               23.73%                0.82%

 CAR-TIER II                                                                        1.15%                 1.00%               0.15%

 CAR (Credit, market, and operational risks)                                       25.71%               24.74%                0.97%


Other Financial Ratio

Bank Jatim’s other financial ratios include profitability ratios, efficiency ratios and compliance ratios as follows.


Table of Other Financial Ratio
						                                                                                                                                 (in %)


                                                                                                                           Increase/
                                 Description                                        2023                 2022
                                                                                                                           Decrease

                                       (1)                                            (2)                 (3)                (2)-(3)

 RENTABILITY RATIO

 Return on Assets (ROA)                                                             1.87%                 1.95%              (0.08%)

 Return on Equity (ROE)                                                            13.96%               16.24%               (2.28%)




         PT Bank Pembangunan Daerah Jawa Timur Tbk
236      2023 Annual Report
Page 239
                                                                                   MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                OF BANK PERFORMANCE




                                                                                                               Increase/
                                  Description                              2023               2022
                                                                                                               Decrease

                                      (1)                                    (2)                (3)              (2)-(3)

 Net Interest Margin (NIM)                                                 5.57%               5.11%              0.45%

 EFICIENCY RATIO

 Operating expenses to operating income (BOPO)                            77.27%              76.15%              1.12%

 COMPLIANCE RATIO

 Statutory reverses in rupiah                                              8.85%               4.75%              4.10%

 Statutory reverses in foreign exchange                                    6.62%               7.39%             (0.77%)




Return on Assets (ROA)                                            Operating Expenses To Operating Income (BOPO)

ROA in 2023 will be 1.87% or a decrease of 0.08% compared         The BOPO ratio increased by 1.12% from 76.15% in 2022,
to 2022 of 1.95%. This decrease was partly due to an increase     increasing to 77.27% in 2023. This increase was mainly
in total assets.                                                  influenced by the increase in fund interest expenses that
                                                                  occurred in 2023.
Return on Equity (ROE)
                                                                  Statutory Reverse Requirement (GWM)
ROE in 2023 is 13.96% or a decrease of 2.28% compared
to 2022 of 16.24%. This decrease is mainly influenced by an       Bank Jatim’s Rupiah GWM in 2023 will be 8.85% and Foreign
decrease in profit.                                               Currency GWM will be 6.62%. This liquidity position is in
                                                                  accordance with Bank Indonesia Regulation No.19/6/PBI/2017
Net Interest Margin (NIM)                                         dated April 17, 2017 concerning the 5th amendment to Bank
                                                                  Indonesia Regulation No.15/15/PBI/2013 dated December 24,
NIM increased by 0.45% from 5.11% in 2022 to 5.57% at the         2013 concerning Minimum Statutory Reserves in Rupiah and
end of 2023. This was mainly influenced by the growth in credit   Foreign Exchange for Conventional Commercial Banks.
and financing distribution in 2023.




Receiveable Collectibility

The collectability level of the Bank’s receivables can be         The smaller the NPL value, the better the Bank’s performance
seen from the value of the Non-Performing Loan (NPL)              in the collectibility of accounts receivable and shows good
ratio. The NPL ratio is a benchmark to see how much loan is       loan quality.
problematic or bad of all loans given by banks to customers.

Table of Non Perfoming Loan Ratio
							                                                                                                                    (in %)


                                                                                                               Increase/
                                 Description                               2023               2022
                                                                                                               Decrease

                                      (1)                                    (2)                (3)              (2)-(3)

 Non Performing Loan (NPL) Gross                                           2.49%              2.83%              (0.34%)

 Non Performing Loan (NPL) Nett                                            1.21%              1.01%              0.20%


Gross NPL in 2023 is 2.49% or a decrease of 0.34% compared to 2022 which was 2.83%. Meanwhile, net NPL in 2023 will be 1.21%
or an increase of 0.20% compared to 2022 of 1.01%. The increase of net NPL value due to problematic credit throughout 2023.




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   2023 Annual Report      237
Page 240
Bank loan quality is divided based on the level of collectability, namely into the current, special mention, substandard, doubtful,
and loss groups. Meanwhile, the purpose of loan classification is so that the Bank can routinely monitor the loans that have been
distthousandted


Table of Loans by Type and Collectability
		                                                                                                                        (in IDR million)


                                                                        Special          Sub-
              Description                  Total         Current                                        Doubtful          Loss
                                                                        Mention        Standard

                                                                 2023

 Working capital                         15,550,351     13,946,393        924,261          59,999          88,048         531,650

 Investment                               8,002,279      6,786,068      1,060,393           6,918          13,921         134,979

 Consumption                             31,208,273     30,301,188        378,777          30,496          36,134         461,678

 Total                                   54,760,903     51,033,649      2,363,431          97,413         138,103       1,128,307

 Less: Allowance for impairment losses   (1,364,905)      (427,551)      (236,983)        (27,840)        (49,043)       (623,488)

 Total Loans - net                       53,395,998     50,606,098      2,126,448          69,573          89,060         504,819

                                                                 2022

 Working capital                         10,968,010       9,802,144       457,228          20,906           37,479         650,253

 Investment                               6,570,658       6,296,351       151,931            3,855           3,343         115,178

 Consumption                             28,657,989      27,883,864       295,970          26,323           37,043         414,789

 Total                                   46,196,657      43,982,359       905,129          51,084           77,865       1,180,220

 Less: Allowance for impairment losses   (1,318,612)      (395,953)       (78,550)        (18,979)         (28,495)       (796,635)

 Total Loans - net                       44,878,045      43,586,406       826,579          32,105           49,370         383,585

                                                       Growth 2022-2023 (IDR)

 Working capital                          4,582,341       4,144,249       467,033          39,093           50,569        (118,603)

 Investment                               1,431,621        489,717        908,462            3,063          10,578           19,801

 Consumption                              2,550,284       2,417,324        82,807            4,173            (909)          46,889

 Total                                    8,564,246       7,051,290      1,458,302         46,329           60,238         (51,913)

 Less: Allowance for impairment losses      (46,293)       (31,598)      (158,433)          (8,861)        (20,548)        173,147

 Total Loans - net                        8,517,953       7,019,692      1,299,869         37,468           39,690         121,234



Net loans in 2023 is IDR53,395,998 million, an increase of 18.98% compared to 2022 which was IDR44,878,045 million with a
current credit classification in 2023 of IDR50,606,098 million, with special attention amounting to IDR2,126,448 million, substandard
amounting to IDR69,573 million, doubtful amounting to IDR89,060 million and loss amounting to IDR504,819 million.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
238      2023 Annual Report
Page 241
                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                     OF BANK PERFORMANCE




Fund Interest Rate

Information on competitive and competitive interest rates for savings, time deposits and current accounts of Bank Jatim is presented
as follows:


Table of Savings Interest Rate Per December 2023					


                 Tier                         Interest Rate                            Tier                       Interest Rate

                               SIMPEDA                                                        SIMPANAN LAKU PANDAI

 0 - < IDR1 million                                0.00%                All nominal                                  0.50%

 IDR1 million - < IDR10 million                    0.50%                                         SIKLUS PENSIUN

 IDR10 million - < IDR50 million                   0.75%                0 - < IDR250 thousand                        0.00%

 IDR50 million - < IDR500 million                  1.00%                IDR250 thousand -
                                                                                                                     1.25%
                                                                        < IDR7.5 million
 ≥ IDR500 million                                  1.50%
                                                                        IDR7.5 million -
                                   SIKLUS                                                                            1.50%
                                                                        < IDR100 million
 0 - < IDR1 million                                0.00%                ≥IDR100 million                              1.75%
 IDR1 million - < IDR10 million                    0.75%                                          SIKLUS VALAS
 IDR10 million - < IDR50 million                   1.00%                USD
 IDR50 million - < IDR500 million                  1.25%                < USD 100                                    0.00%
 ≥ IDR500 million                                  1.50%                > USD100.00 -
                                                                                                                     0.05%
                      SIKLUS SMALL MICRO (SiUMI)                        ≤ USD10,000.00

 0 - IDR500 thousand                               0.00%                > USD10,000.00 -
                                                                                                                     0.15%
                                                                        ≤ USD100,000.00
 > IDR500 thousand                                 1.50%
                                                                        > USD100,000.00                              0.25%
                        SIKLUS NELAYAN (SiNyal)
                                                                        SGD
 0 - IDR500 thousand                               0.00%
                                                                        < USD100                                     0.00%
 > IDR500 thousand                                 0.50%
                                                                        > USD100.00 -
                                                                                                                     0.05%
                                    HAJI                                ≤ USD10,000.00

 All nominal                                       1.00%                > USD10,000.00 -
                                                                                                                     0.15%
                                                                        ≤ USD100,000.00
                            TABUNGANKU
                                                                        > USD100,000.00                              0.20%
 0 - IDR500 thousand                               0.00%
                                                                        EUR
 >IDR500 thousand - IDR1 million                   0.25%
                                                                        0 - EUR300                                   0.00%
 >IDR1 million                                     1.00%
                                                                        > EUR300                                     0.10%
                                      Notes:
                                      • Interest is calculated daily    JPY
                                        and in accordance with the
                                        applicable tiering              All nominal                                  0.00%
                                      • interest is paid according to   HKD
                                        the payment period
                                                                        All nominal                                  0.00%
                           SIKLUS PRIORITAS

 0 - < IDR500 thousand                             0.00%

 IDR500 thousand -
                                                   1.50%
 < IDR7.5 million

 IDR7.5 million - < IDR100 million                 1.75%

 IDR100 million - < IDR1 billion                   2.00%

 ≥IDR1 billion                                     2.25%




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report    239
Page 242
Table of Time Deposit Interest Rates Per December 2023		

                                                                                         Tenor (month)
                  Tier                          1                  2            3              6              12              18                 24
                                              Month              Month        Month          Month           Month           Month              Month

 ≥IDR2,5 million - IDR1 billion              2.70% pa           2.80% pa     2.90% pa       3.00% pa        3.10% pa        3.15% pa            3.15% pa

 >IDR1 billion                               2.75% pa           2.85% pa     2.95% pa       3.05% pa        3.15% pa        3.15% pa            3.15% pa


Table of Foreign Exchange Interest Rates Per December 2023					

                                                                                                    Tenor (Month)
                               Tier
                                                                         1 Month            3 Month                6 Month               12 Month

 USD

 ≥ USD1,000 - ≤ USD100,000                                                                              0.75% pa

 > USD100,000                                                                                           1.00% pa

 SGD

 ≥ SGD1,000                                                                                             0.10% pa

 EUR

 ≥ EUR750                                                                    Each placement is subject to approval by the authorized division

 JPY

 ≥ JPY100,000                                                                Each placement is subject to approval by the authorized division

 HKD

 ≥ HKD7,500                                                                  Each placement is subject to approval by the authorized division

 AUD

 ≥ AUD2,000                                                                                             0.50% pa

 CNY

 ≥ CNY7,000                                                                                             0.70% pa

*) above the counter rate, the branch request head office approval



Table of Interest Rates for On Call Deposits of December 2023 					

                     Tier                                                                   Interest Rate

 On Call Deposits (Rupiah)                      0.75% below the market interest rate of Government Banks, BPD or PrivateBanks obtained from LHBU
                                                or Reuters




Table of Interest Rate Current Account Per December 2023 						

                     Tier                                                                   Interest Rate

                                                                            RUPIAH

 Progressive daily current account
 service calculation

 IDR0 - IDR5 million                                                                            0.00%

 > IDR5 million - IDR100 million                                                                0.50%

 > IDR100 million - IDR1 billion                                                                0.75%

 > IDR1 billion - IDR500 billion                                                                0.90%

 > IDR500 billion - IDR750 billion                                                              1.25%

 > IDR750 billion                                                                               1.75%




          PT Bank Pembangunan Daerah Jawa Timur Tbk
240       2023 Annual Report
Page 243
                                                                                         MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                      OF BANK PERFORMANCE




                  Tier                                                           Interest Rate

 Current account Escrow Account               Same as current account Rupiah. and must be included in the Cooperation Agreement (PK)

                                                          FOREIGN EXCHANGE

 USD FOREIGN CURRENCY
 CURRENT ACCOUNT

 ≤ USD1,000.00                                                                       0.00%

 > USD1,000.00 - ≤ USD10,000.00                                                      0.05%

 > USD10,000.00 - ≤ USD100,000.00                                                    0.15%

 > USD100,000.00                                                                     0.25%

 SGD FOREIGN CURRENCY
 CURRENT ACCOUNT

 ≤ SGD1,000.00                                                                       0.00%

 > SGD1,000.00 - ≤ SGD10,000.00                                                      0.05%

 > SGD10,000.00 - ≤ SGD100,000.00                                                    0.15%

 > SGD100,000.00                                                                     0.20%

 EUR FOREIGN CURRENCY
 CURRENT ACCOUNT

 EUR                                                                                 0.10%

 JPY FOREIGN CURRENCY
 CURRENT ACCOUNT

 JPY                                                                                 0.00%

 AUD FOREIGN CURRENCY
 CURRENT ACCOUNT

 AUD 15,000 - < AUD 150,000                                                          0.20%

 ≥ AUD 150,000                                                                       0.50%

 HKD FOREIGN CURRENCY
 CURRENT ACCOUNT

 HKD 78,000 - < HKD 780,000                                                          0.20%

 ≥ HKD 780,000                                                                       0.50%

 CNY FOREIGN CURRENCY
 CURRENT ACCOUN

 CNY 72,000 - < CNY 720,000                                                          0.20%

 ≥ CNY 720,000                                                                       0.50%



Table of Profit Sharing Ratio

                                                                                                 Profit                Realization of
                                         Product
                                                                                              sharing ratio            Sharing Ratio

 Individual Wadiah Curent Account                                                                 0.00%                     0.00%

 General Wadiah Current Account for Service/Government                                            0.00%                     0.00%

 Public Private Wadiah Current Account                                                            0.00%                     0.00%

 Government General Mudharabah Current Account                                                    0.00%                     0.51%

 TabunganKu iB                                                                                    0.00%                     0.00%

 Laku Pandai Savings                                                                              0.00%                     0.00%

 Simpel Savings                                                                                   0.00%                     0.00%

 Santri Savings                                                                                   0.00%                     0.00%




                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                           2023 Annual Report          241
Page 244
                                                                                                Profit           Realization of
                                            Product
                                                                                             sharing ratio       Sharing Ratio

 Umroh iB Amanah Savings                                                                        0.00%                   0.00%

 Haji Amanah Savings                                                                            10.00%                  1.02%

 Barokah Savings                                                                                12.50%                  1.27%

 iB Barokah Sejahtera Savings                                                                   4.00%                   0.41%

 iB Barokah Plan Savings                                                                        25.00%                  2.54%

 iB Barokah Pension Savings                                                                     15.00%                  1.52%

 1 Month Deposit                                                                                36.00%                  3.66%

 3 Months Deposit                                                                               38.00%                  3.86%

 6 Months Deposit                                                                               41.00%                  4.16%

 12 Months Deposit                                                                              42.50%                  4.32%




Quality Analysis of Productive Assets

Productive assets in 2023 amounted to IDR98,580,598 million, an increase of 4.69% compared to 2022 with IDR94,164,611 million.
The quality of productive assets in 2023 in the current category is IDR93,737,202 million, special attention is IDR3,369,357 million,
substandard is IDR116,199 million, doubtful is IDR140,542 million and loss is IDR1,217,298 million.


Table of productive assets quality
								                                                                                                                   (in IDR million)


                                                                                      INDIVIDUAL

                                                                                   December 31, 2023
 No                         POSTS
                                                                    Special         Sub-
                                                      Current                                 Doubtful       Loss           Total
                                                                    mention       standard


 I       RELATED PARTIES

     1   Placement with other banks                             -             -          -               -          -                  -

         a.   Rupiah                                            -             -          -               -          -                  -

         b.   Foreign exchange



     2   Spot and deritatives/forward receivables               -             -          -               -          -                  -

         a.   Rupiah                                            -             -          -               -          -                  -

         b.   Foreign exchange



     3   Securities owned                                       -             -          -               -          -                  -

         a.   Rupiah                                            -             -          -               -          -                  -

         b.   Foreign exchange




          PT Bank Pembangunan Daerah Jawa Timur Tbk
242       2023 Annual Report
Page 245
                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                     OF BANK PERFORMANCE




Basic Loan Rate

The Basic Loan Rate (SBDK) was used as the basis for                 or group of debtors. Thus, the amount of loan interest rate
determining the loan interest rate that would be charged             charged to debtors was not necessarily the same as the Basic
by customers. Basic Loan Rate did not take into account the          Loan rate. Non-KPR consumption loan did not include provision
risk premium estimation component, the amount of which               of funds through credit cards and unsecured credit (KTA).
depended on the Bank’s assessment of the risk of each debtor


Table of Basic Loan Rate								

                                   Bank Jatim Basic Loan Interest Rate as of December 2023

                                                  Based on Business Segments

                                                                                                    Consumption loan
     Corporate loan               Retail loan               Micro Loan
                                                                                            KPR                   Non KPR

          7.68%                     8.21%                       13.40%                      8.22%                      9.58%


Basic Loan Rate (SBDK) information that was valid at any time could be seen in the publication at each Bank office and/or the Bank’s
website if the bank had a website (included only for publication through




                                                           INDIVIDUAL

                                                       December 31, 2022


      Current           Special mention         Sub-standard             Doubtful                   Loss                 Total




                  -                   -                     -                       -                      -                     -

                  -                   -                     -                       -                      -                     -




                  -                   -                     -                       -                      -                     -

                  -                   -                     -                       -                      -                     -




                  -                   -                     -                       -                      -                     -

                  -                   -                     -                       -                      -                     -




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report        243
Page 246
                                                                             INDIVIDUAL

                                                                          December 31, 2023
No                        POSTS
                                                           Special         Sub-
                                             Current                                Doubtful      Loss       Total
                                                           mention       standard


 4    Securities sold under repurchased
      agreement (Repo)

      a.   Rupiah                                      -             -          -             -          -           -

      b.   Foreign exchange                            -             -          -             -          -           -



 5    Claims on securities purchased under
      agreement to resell (Reserve Repo)

      a.   Rupiah                                      -             -          -             -          -           -

      b.   Foreign exchange                            -             -          -             -          -           -



 6    Acceptance Bill                                  -             -          -             -          -           -



 7    Loans and financing provided

      a.   Micro, Small, and Medium
           Enterprises (MSME) Debtors

           i. Rupiah                               1,263             -          -          41            -     1,304

           ii. Foreign exchange                        -             -          -             -          -           -

      b.   Non-MSME debtor                                                                                           -

           i. Rupiah                          106,108        77,134             -         302            -   183,544

           ii. Foreign exchange                        -             -          -             -          -           -

      c.   Restrustured loan **)

           i. Rupiah                                   -             -          -             -          -           -

           ii. Foreign exchange                        -             -          -             -          -           -



 8    Equity instrument                                -             -          -             -          -           -



 9    Equity capital                                   -             -          -             -          -           -



 10   Other receivables                                -             -          -             -          -           -



 11   Commitment and contingencies

      a.   Rupiah                                      -             -          -             -          -           -

      b.   Foreign exchange                            -             -          -             -          -           -



 12   Repossessed assets                               -             -          -             -          -           -



      TOTAL                                   107,371        77,134             -         343            -   184,848




       PT Bank Pembangunan Daerah Jawa Timur Tbk
244    2023 Annual Report
Page 247
                                                                  MANAGEMENT DISCUSSION AND ANALYSIS
                                                                               OF BANK PERFORMANCE




                                         INDIVIDUAL

                                      December 31, 2022


Current       Special mention   Sub-standard       Doubtful                Loss              Total




          -               -               -                   -                   -                   -

          -               -               -                   -                   -                   -




          -               -               -                   -                   -                   -

          -               -               -                   -                   -                   -



          -               -               -                   -                   -                   -




    9,755                 -               -                   -                   -             9,755

          -               -               -                   -                   -                   -



  122,270             2,846               -                   -                   -           125,116

          -               -               -                   -                   -                   -



          -               -               -                   -                   -                   -

          -               -               -                   -                   -                   -




          -               -               -                   -                   -                   -



          -               -               -                   -                   -                   -




          -               -               -                   -                   -                   -

          -               -               -                   -                   -                   -




  132,025             2,846               -                   -                   -           134,871




                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                 2023 Annual Report   245
Page 248
                                                                                     INDIVIDUAL

                                                                                  December 31, 2023
No                           POSTS
                                                                   Special         Sub-
                                                     Current                                 Doubtful     Loss         Total
                                                                   mention       standard


II       NON-RELATED PARTIES

     1   Placement with other banks

         a.   Rupiah                                 4,251,988               -           -            -          -    4,251,988

         b.   Foreign exchange                        324,209                -           -            -          -     324,209



     2   Spot and deritatives/forward receivables

         a.   Rupiah                                           -             -           -            -          -             -

         b.   Foreign exchange                                 -             -           -            -          -             -



     3   Securities owned

         a.   Rupiah                                16,323,719               -           -            -          -   16,323,719

         b.   Foreign exchange                            112                -           -            -          -         112



     4   Securities sold under repurchased
         agreement (Repo)

         a.   Rupiah                                 8,303,663               -           -            -          -    8,303,663

         b.   Foreign exchange                                 -             -           -            -          -             -



     5   Claims on securities purchased under
         agreement to resell (Reserve Repo)

         a.   Rupiah                                 6,247,318               -           -            -          -    6,247,318

         b.   Foreign exchange                                 -             -           -            -          -             -



     6   Acceptance Bill



     7   Loans and financing provided

         a.   Micro, Small, and Medium
              Enterprises (MSME) Debtors

              i. Rupiah                             13,056,992     1,013,811        54,947     100,919    552,665    14,779,334

              ii. Foreign exchange                             -             -           -            -          -             -

         b.   Non-MSME debtor

              i. Rupiah                             37,869,286     1,272,486        42,466      36,841    575,642    39,796,721

              ii. Foreign exchange                             -             -           -            -          -             -

         c.   Restrustured loan **)

              i. Rupiah                              2,782,704     1,005,926        18,786        2,439    88,991     3,898,846

              ii. Foreign exchange                             -             -           -            -          -             -

              Iii property loan                                -             -           -            -          -             -

     8   Equity instrument                                     -             -           -            -          -             -




          PT Bank Pembangunan Daerah Jawa Timur Tbk
246       2023 Annual Report
Page 249
                                                                   MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                OF BANK PERFORMANCE




                                         INDIVIDUAL

                                      December 31, 2022


Current       Special mention   Sub-standard       Doubtful                 Loss                Total




 4,362,457                -               -                    -                   -            4,362,457

  112,672                 -               -                    -                   -             112,672




      361                 -               -                    -                   -                 361

          -               -               -                    -                   -                     -




23,217,308                -               -                    -                   -          23,217,308

      362                 -               -                    -                   -                 362




 4,095,066                -               -                    -                   -            4,095,066

          -               -               -                    -                   -                     -

          -               -               -                    -                   -                     -




 7,822,847                -               -                    -                   -            7,822,847

          -               -               -                    -                   -                     -



          -               -               -                    -                   -                     -




          -               -               -                    -                   -                     -


 9,368,818          547,740          27,078               42,062             600,253          10,585,951

          -               -               -                    -                   -                     -



34,481,516          354,543          24,006               35,803             579,967          35,475,835

          -               -               -                    -                   -                     -



 3,877,798            7,956             324                  74               51,450            3,937,602

          -               -               -                    -                   -                     -

          -               -               -                    -                   -                     -

          -               -               -                    -                   -                     -




                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                    2023 Annual Report   247
Page 250
                                                                                       INDIVIDUAL

                                                                                    December 31, 2023
No                        POSTS
                                                                     Special         Sub-
                                                       Current                                 Doubtful      Loss         Total
                                                                     mention       standard


  9   Temporary Equity capital                                   -             -           -            -           -             -



 10   Other receivables                                          -             -           -            -           -             -



 11   Commitment and contingencies

      a.     Rupiah                                    4,423,649               -           -            -           -    4,423,649

      b.     Foreign exchange                            46,191                -           -            -           -      46,191



 12   Repossessed assets                                         -             -           -            -           -             -



      TOTAL                                           93,629,831     3,292,223       116,199     140,199    1,217,298   98,395,750

                                                      93,737,202     3,369,357       116,199     140,542    1,217,298   98,580,598

III   OTHER INFORMATION

  1   Total pledged bank assets

      a.     At Bank Indonesia                                   -             -           -            -           -             -

      b.     On the other hand                                   -             -           -            -           -             -



  2   Total CKPN on financial assets on
                                                                 -             -           -            -           -    1,430,174
      productive assets



  3   Total PPA that must be formed for assets                   -             -           -            -           -    1,994,025



  4   Percentage of credit to MSMEs to total credit              -             -           -            -           -      26,99%



  5   Percentage of credit to Small Micro
                                                                 -             -           -            -           -      20,37%
      Enterprises (UMK) to total credit



  6   Percentage of total MSME debtors to total
                                                                 -             -           -            -           -      50,97%
      debtors



  7   Percentage of total debtors of Micro Small
                                                                 -             -           -            -           -      49,00%
      Enterprises (UMK) to total debtors



  8   Others

      a.     Channeling loans                                    -             -           -            -           -     640,415

      b.     Distribution of Mudharabah
                                                                 -             -           -            -           -             -
             Muqayyadah funds

      c.     Write-off productive assets                         -             -           -            -           -    4,292,820

      d.     Written off productive asset that were
                                                                 -             -           -            -           -    1,228,552
             recovered/ successfully billed

      e.     Productive assets that are written off              -             -           -            -           -             -




           PT Bank Pembangunan Daerah Jawa Timur Tbk
248        2023 Annual Report
Page 251
                                                                  MANAGEMENT DISCUSSION AND ANALYSIS
                                                                               OF BANK PERFORMANCE




                                         INDIVIDUAL

                                      December 31, 2022


Current       Special mention   Sub-standard       Doubtful                Loss              Total


          -               -               -                   -                   -                   -



          -               -               -                   -                   -                   -




 4,372,576                -               -                   -                   -          4,372,576

    46,703                -               -                   -                   -            46,703



          -               -               -                   -                   -                   -



91,758,484         910,239           51,408           77,939              1,231,670        94,029,740

91,890,509         913,085           51,408           77,939              1,231,670        94,164,611




          -               -               -                   -                   -                   -



          -               -               -                   -                   -                   -

          -               -               -                   -                   -          1,366,019




          -               -               -                   -                   -          1,870,191



          -               -               -                   -                   -             2,63%



          -               -               -                   -                   -            17,61%




          -               -               -                   -                   -            43,49%




          -               -               -                   -                   -            40,90%




          -               -               -                   -                   -           648,319

          -               -               -                   -                   -                   -


          -               -               -                   -                   -          3,728,649

          -               -               -                   -                   -          1,059,644


          -               -               -                   -                   -                   -




                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                 2023 Annual Report   249
Page 252
Bank Capital Structure

Management Policy and Basis of                                        1. Core Capital
Management Policy Selection On Capital                                   Core Capital is bank capital which consists of Main Core
Structure                                                                Capital (Common Equity Tier 1- CET 1) and Additional Core
                                                                         Capital (Additional Tier 1). Main core capital includes paid-in
The capital management policy is used as a guide to identify             capital and additional capital reserves (disclosed reserved).
sources of capital, both internal and external. In addition,             Additional capital reserves consist of additional factors (over-
capital policies are implemented to meet the capital adequacy            translation of financial statements, potential profits from
provisions set by the regulator and ensure that the Bank’s capital       increasing the fair value of financial assets in the available-
structure is efficient. Banks in calculating Minimum Capital             for-sale group, fixed asset revaluation surplus balance,
Adequacy Ratio (CAR) refer to Financial Services Authority               agio, general reserves, previous years’ profits, current year’s
Regulation No. 27 of 2022 concerning the Second Amendment                profits, funds capital contributions and other additional
to Financial Services Authority Regulation Number 11/                    capital reserves) and deduction factors (over-translation of
POJK.03/2016 concerning Minimum Capital Requirements for                 financial statements, potential losses from increases in the
Commercial Banks. To fulfill these requirements. The bank has            fair value of financial assets in the available-for-sale group,
a policy to maintain a capital structure that is able to anticipate      disagio, previous years’ losses, current year losses, under-
all major risks that occur in bank management. namely market             differences between the Allowance for Asset Losses (PPA)
risk. credit risk. and operational risks. The Bank’s capital             and reserves for impairment losses on productive assets,
management policy is reviewed by the Board of Directors and              the difference in the amount of the fair value adjustment
Board of Commissioners, aimed at maintaining a strong capital            of financial instruments in the trading book, the Allowance
structure to support future business growth.                             for Asset Losses (PPA) on non-productive assets that must
                                                                         be calculated and other additional capital reserves). Bank
The main objective of the Bank’s capital management is                   Jatim’s core capital in 2023 will reach IDR11,025,184 million,
to ensure that the Bank maintains a healthy capital ratio in             an increase of 6.56% or IDR678,792 million compared to
order to support the business and maximize shareholder                   2022 which was IDR10,346,392 million due to additional
value. Companies are required to meet the Minimum Capital                capital from the retained earnings component.
Requirement (KPMM) ratio as determined by Bank Indonesia.
                                                                      2. Supplementary Capital (Maximum 100% of Core Capital)
Management uses regulatory capital ratios to monitor capital             Supplementary Capital (maximum 100% of core capital)
adequacy in accordance with industry standards. Bank                     includes capital instruments in the form of shares or in
Indonesia’s approach to capital measurement is primarily based           other forms that meet the requirements, agio or disagio
on monitoring required capital requirements against available            originating from the issuance of capital instruments that
capital. Throughout 2023, Bank Jatim has fulfilled all required          are classified as supplementary capital and general PPA
capital requirements.                                                    reserves for productive assets which must be calculated
                                                                         in the amount maximum 1.25% of Risk Weighted Assets
Capital Structure Details                                                (RWA) Credit Risk and Purpose Reserves. Bank Jatim’s total
                                                                         supplementary capital in 2023 is IDR516,010 million, an
In accordance with Financial Services Authority Regulation no.           increase of 17.93% or IDR78,447 million compared to 2022
27 of 2022 concerning the Second Amendment to Financial                  which was IDR437,563 million.
Services Authority Regulation Number 11/POJK.03/2016
concerning Minimum Capital Requirements for Commercial
Banks. Bank capital consists of Core Capital (Tier-1) and
Supplementary Capital (Tier-2).


Table of Capital Structure
						                                                                                                                       (in IDR million)


                                                                                                             Growth 2022-2023
                Bank Jatim Capital Adequacy Position                      2023             2022
                                                                                                          Nominal              %

 Core capital                                                          11,025,184        10,346,392          678,792             6.56%

 supplementary capital                                                     516,010          437,563           78,447           17.93%

 Total Core Capital and Supplementary Capital                          11,541,194        10,783,955          757,239             7.02%




        PT Bank Pembangunan Daerah Jawa Timur Tbk
250     2023 Annual Report
Page 253
                                                                                                    MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                                 OF BANK PERFORMANCE




                                                                                                                         Growth 2022-2023
               Bank Jatim Capital Adequacy Position                                  2023               2022
                                                                                                                       Nominal              %

 Risk Weighted Assets (RWA) for Credit Risk                                       40,764,771          34,567,488        6,197,283           17.93%

 Risk Weighted Assets (RWA) for Operational Risk                                    4,083,746          8,917,841       (4,834,095)        (54.21%)

 Risk Weighted Assets (RWA) for Market Risk                                            49,106           108,144           (59,038)        (54.59%)

 Total Risk Weighted Asset                                                        44,897,623          43,593,473        1,304,150             2.99%

 CAPITAL ADEQUACY RATIO (%)

 CET 1 Ratio                                                                          24.56%             23.73%            0.82%              0.83%

 Minimum capital adequacy ratio for credit risk and operational risk                  25.73%             24.80%            0.93%              0.93%

 Minimum capital adequacy ratio for credit risk, market risk and operational
                                                                                      25.71%             24.74%            0.97%              0.97%
 risk




Information on Capital                                                           Credit Risk
and Risk Exposure
                                                                                 Credit risk is the risk due to default by the debtor and/or
In accordance with the complexity of its business, the Bank                      counterparty in fulfilling liabilities to the Bank. Regarding
manages 8 (eight) types of risk, namely credit risk, liquidity                   specific credit risk exposures such as individual credit,
risk, market risk, operational risk, legal risk, reputation risk,                interbank facilities and so on, the Bank evaluates it separately
strategic risk and compliance risk. However, this section only                   using factors that may differ, according to the specific
describes risk management practices for credit risk, market                      characteristics of each type of exposure. In managing credit
risk and liquidity risk. Meanwhile, explanations related to                      risk, the Bank has credit policies and guidelines that are
other types of risk are presented in the Risk Profile and                        periodically refined. while still being based on the principle
Management section on Corporate Governance in this                               of independent risk management in accordance with Bank
Annual Report.                                                                   Indonesia regulations and other external regulations.


Disclosure of Quantitative Risk Exposure                                         The Bank’s maximum exposure to credit risk for financial
                                                                                 instruments on the statement of financial position and
Based on the Financial Services Authority Regulation (POJK)                      administrative accounts, is assessed without taking into account
Number 37/POJK.03/2019 and OJK Circular Letter Number 9/                         collateral held or other credit protection. As of December 31,
SEOJK.03/2020 Concerning Transparency and Publication of                         2023 and 2022, the maximum credit risk disclosures based on
Bank Reports and POJK Number 18/POJK.03/2016 concerning                          concentration before taking into account collateral held and
Implementation of Risk Management.                                               master netting agreements are as follows:



Credit Risk Concentration by Geographic

Table of Credit Risk Concentration by Geographic Year 2023
					                                                                                                                                     (in IDR million)


                                                                                       December 31, 2023

                Description                                       Java other
                                                 East Java         than East         Sumatera           Borneo           Others            Total
                                                                     Java

 FINANCIAL POSITION

 Currents account with Bank Indonesia                       -      7,971,412                    -                  -                 -   7,971,412

 Currents account with other banks                          -          490,253                  -                  -                 -    490,253

 Placement with Bank Indonesia and other
                                                    842,093        2,281,988          1,000,000          290,000          815,614        5,229,695
 bank




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   2023 Annual Report            251
Page 254
                                                                           December 31, 2023

                Description                                  Java other
                                                East Java     than East   Sumatera    Borneo       Others          Total
                                                                Java

 Securities                                              -            -           -            -            -                -

   Amortized cost                                        -    8,560,761           -            -            -    8,560,761

   Fair value through other comprehensive
                                                         -    7,762,560           -            -            -    7,762,560
   income

 Securities sold under agreements to
                                                         -    8,560,761           -            -            -    8,560,761
 repurchased

 Securities sold under agreements to resell              -    6,247,318           -            -            -    6,247,318

 Other bill                                       223,138             -           -            -            -     223,138

 Loan given                                              -            -           -            -            -                -

   Working capital                              11,440,125    2,842,481    604,895                    2,973     14,890,474

   Investment                                    4,236,832    2,670,923    282,259     472,895              -    7,662,909

   Consumption                                  30,059,320     734,680      48,538             -         77     30,842,615

 Interest receivables                             665,717       16,610       2,458        730           219       685,734

 Total                                          47,467,225   47,882,649   1,938,150    763,625      818,883     98,870,532

 ADMINISTRATIVE ACCOUNT

 Credit facilities to customers who have not
                                                 2,875,686     872,815       6,195      15,569              -    3,770,265
 been used

 Issued bank guarantee                            699,574             -           -            -            -     699,574

 Total                                           3,575,260     872,815       6,195      15,569              -    4,469,839



Table of Credit Risk Concentration by Geographic Year 2022
				                                                                                                              (in IDR million)


                                                                           December 31, 2022

                Description                                  Java other
                                                East Java     than East   Sumatera    Borneo       Others          Total
                                                                Java

 FINANCIAL POSITION

 Currents account with Bank Indonesia                    -   10,786,740           -            -            -   10,786,740

 Currents account with other banks                       -      302,688           -            -            -      302,688

 Placement with Bank Indonesia and other bank    1,152,000    2,702,379     538,000    449,000     2,071,796     6,913,175

 Spot and derivative bills                            361             -           -            -            -            361

 Securities

   Amortized cost                                        -   14,740,662           -            -            -   14,740,662

   Fair value through other comprehensive                -    8,476,609           -            -            -    8,476,609
   income

 Securities sold under agreements to                     -    4,095,066           -            -            -    4,095,066
 repurchased

 Securities sold under agreements to resell              -    7,822,847           -            -            -    7,822,847

 Other bill                                        286,147            -           -            -            -      286,147

 Loan given

   Working capital                               8,483,137    1,014,245     677,316            -            -   10,174,698

   Investment                                    3,359,791    2,161,406     370,368    479,607              -    6,371,172

   Consumption                                  28,151,362      143,306      37,289         70          148     28,332,175




         PT Bank Pembangunan Daerah Jawa Timur Tbk
252      2023 Annual Report
Page 255
                                                                                                       MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                                    OF BANK PERFORMANCE




                                                                                          December 31, 2022

                 Description                                        Java other
                                                 East Java           than East          Sumatera           Borneo           Others               Total
                                                                       Java

 Interest receivables                                  629,389              13,694             2,288             752                      2      646,125

 Total                                           42,062,187         52,259,642           1,625,261          929,429         2,071,946         98,948,465

 ADMINISTRATIVE ACCOUNT

 Credit facilities to customers who have not       2,412,262            971,071                  610          15,569                      -    3,399,512
 been used

 Issued bank guarantee                             1,019,766                     -                 -                 -                    -    1,019,766

 Total                                            3,432,028             971,071                  610         15,569                       -    4,419,278




Credit Risk Concentration Based On Industry Sector

Table of Credit Risk Concentration Based on Idustrial Sector in 2023
						                                                                                                                                          (in IDR million)


                                                                                      December 31, 2023

             Description               Government                                Non-bank
                                                                                                        Other
                                        and Bank                 Bank             Financial                              Individual             Total
                                                                                                       Company
                                        Indonesia                                Institution

FINANCIAL POSITION

Currents account        with   Bank
                                         7,971,412                      -                    -                   -                    -        7,971,412
Indonesia

Currents account with other banks                  -             490,253                     -                   -                    -          490,253

Placement with Bank Indonesia
                                         5,229,695                      -                    -                   -                    -        5,229,695
and other bank

Spot and derivative bills                          -                    -                    -                   -                    -                    -

Securities                                         -                    -                    -                   -                    -                    -

   Amortized cost                        5,890,446               463,025             2,207,290                   -                    -        8,560,761

   Fair value through          other
                                         7,762,560                      -                    -                   -                    -        7,762,560
   comprehensive income

Securities sold under agreements
                                         8,303,663                      -                    -                   -                    -        8,303,663
to repurchased

Securities sold under agreements
                                                   -         6,247,318                       -                   -                    -        6,247,318
to resell

Other bill                                         -                    -                    -                   -          223,138              223,138

Loan given                                         -                    -                    -                   -                    -                    -

   Working capital                         105,418           1,219,950                351,676           3,516,283         9,697,147           14,890,474

   Investment                                  1,111                                    6,137           5,088,634         2,567,027            7,662,909

   Consumption                                     -               7,376                2,671             608,137        30,224,431           30,842,615

Interest receivables                            275                2,281                2,389              33,110           647,679              685,734

Total                                   35,264,580           8,430,203                362,873          11,453,454        43,359,422           98,870,532

ADMINISTRATIVE ACCOUNT

Credit facilities to customers who
                                                   -              65,971                     -                   -        3,704,294            3,770,265
have not been used

Issued bank guarantee                              -                                         -                   -          699,574              699,574

Total                                              -              65,971                     -                   -        4,403,868            4,469,839




                                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                        2023 Annual Report              253
Page 256
Table of Credit Risk Concentration Based on Idustrial Sector in 2022
				                                                                                                                              (dalam jutaan Rupiah)


                                                                              December 31, 2022

             Description             Government                            Non-bank
                                                                                            Other
                                      and Bank        Bank                  Financial                         Individual                Total
                                                                                           Company
                                      Indonesia                            Institution

FINANCIAL POSITION
Currents account with Bank
                                      10,786,740                -                    -                 -                  -           10,786,740
Indonesia
Currents account with other banks              -                -             302,688                  -                  -              302,688
Placement with Bank Indonesia
                                       6,913,175                -                    -                 -                  -            6,913,175
and other bank
Spot and derivative bills                      -                -                 361                  -                  -                   361
Securities                                     -
   Amortized cost                     12,425,335                -             327,018       1,988,309                     -           14,740,662
   Fair value through other
                                       8,476,609                -                    -                 -                  -            8,476,609
   comprehensive income
Securities sold under agreements
                                       4,095,066                -                    -                 -                  -            4,095,066
to repurchased
Securities sold under agreements
                                               -                -           7,822,847                  -                  -            7,822,847
to resell
Other bill                                     -                -                    -                 -            286,147              286,147
Loan given
   Working capital                       177,813          327,211             315,826       2,937,209             6,416,639           10,174,698
   Investment                              5,662            1,436                    -      4,828,916             1,535,158            6,371,172
   Consumption                                 -            1,000               3,897          14,773         28,312,505              28,332,175
Interest receivables                        433             2,025                 535          41,024               602,108              646,125
Total                                 42,880,833      331,672               8,773,172       9,810,231         37,152,557             98,948,465
ADMINISTRATIVE ACCOUNT
Credit facilities to customers who
                                               -                -             132,932                  -          3,266,580            3,399,512
have not been used
Issued bank guarantee                          -                -                    -                 -          1,019,766            1,019,766
Total                                          -                -             132,932                  -          4,286,346           4,419,278



Credit Risk Measurement

The estimation of credit exposure for risk management                       Default (EAD), and Loss Given Default (LGD). This is the same
purposes is complex. It requires the use of models because                  as the approach used for the purpose of measuring Expected
exposures vary with changes in market conditions, expected                  Credit Losses (ECL) based on PSAK 71.
cash flows, and the passage of time. Assessment of the credit
risk of a portfolio of assets requires further estimation of the            Impairment Evaluation
probability of default, the ratio of associated losses, and the             The following is the risk of financial assets based on the
correlation of default between counterparties. Banks measure                classification of evaluation of impairment as of December 31,
credit risk using the Probability of Default (PD), Exposure at              2023 dan 2022:


Table of Impairment Evaluation of Current Accounts with Other Banks
							                                                                                                                                 (in IDR million)


                                                   December 31, 2023                                       December 31, 2022
               Description
                                         Stage 1   Stage 2          Stage 3       Stage     Stage 1        Stage 2       Stage 3            Total

 Indonesia Rupiah                        336,488      -                -         336,488     190,456          -               -           190,456

 Foreign exchang                         154,842      -                -         154,842     112,673          -               -           112,673




        PT Bank Pembangunan Daerah Jawa Timur Tbk
254     2023 Annual Report
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                                                                                               MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                            OF BANK PERFORMANCE




                                                        December 31, 2023                                        December 31, 2022
            Description
                                        Stage 1         Stage 2    Stage 3     Stage            Stage 1          Stage 2     Stage 3        Total

 Total                                  491,330            -          -        491,330           303,129            -           -          303,129

 Allowance for impairment losses         (1,077)           -          -         (1,077)             (441)           -           -              (441)

 Net                                    490,253            -          -        490,253          302,688             -           -          302,688


Table of Impairment Evaluation of Current Accounts with Bank Indoensia and Other Banks
					                                                                                                                                    (in IDR million)


                                                        December 31, 2023                                        December 31, 2022
            Description
                                        Stage 1         Stage 2    Stage 3     Stage            Stage 1          Stage 2     Stage 3        Total

 IDR:

   Placement in bank Indonesia         1,149,854           -          -       1,149,854         2,744,329           -           -         2,744,329

   Interbank call money                4,083,367           -          -       4,083,367         4,165,000           -           -         4,165,000

   Time Deposit                            1,500           -          -           1,500             7,000           -           -               7,000

 Total                                 5,234,721           -          -       5,234,721         6,916,329           -           -         6,916,329

 Allowance for impairment losses          (5,026)          -          -          (5,026)           (3,154)          -           -             (3,154)

 Net                                   5,229,695           -          -       5,229,695         6,913,175           -           -        6,913,175


Table of Evaluasi Decrease Decrease Nilai Securities			
			                                                                                                                                      (in IDR million)


                                                        December 31, 2023                                        December 31, 2022
            Description
                                        Stage 1         Stage 2    Stage 3     Stage            Stage 1          Stage 2     Stage 3        Total

 IDR:
   Government Bonds                    12,610,606          -          -       12,610,606        20,501,941          -           -        20,501,941
   Bonds                                2,089,300          -          -        2,089,300         1,851,074          -           -          1,851,074
   Sukuk Bank Indonesia                             -      -          -                    -      400,000           -           -             400,000
   Interbank Mudharabah Investment                                                                325,000           -           -             325,000
                                          450,000          -          -         450,000
   Certificate (SIMA)
   Reksadana                              450,000          -          -         450,000            90,000           -           -              90,000
   Negotiable Certificate of Deposit      450,000          -          -         450,000            47,237           -           -              47,237
   Domestic Documentary Letter of                                                                            -      -           -                       -
                                           90,000          -          -          90,000
   Credit
   Medium Term Securities                  28,500          -          -          28,500              2,056          -           -                2,056
   Foreign Exchange                        12,913          -          -          12,913                             -           -
   Bill                                       112          -          -             112               362           -           -                  362
 Total                                 16,323,831          -          -       16,323,831        23,217,671          -           -        23,217,671
 Provision for impairment losses on                                                                  (400)          -           -                 (400)
                                            (511)          -          -            (511)
 financial assets
 Net                                   16,323,320          -          -       16,323,320 23,217,271                 -           -        23,217,271


Table of Evaluation of Impairment of Credit Distributed		
					                                                                                                                                    (in IDR million)


                                                        December 31, 2023                                        December 31, 2022
            Description
                                        Stage 1         Stage 2    Stage 3     Stage            Stage 1          Stage 2     Stage 3        Total

 Multipurpose loan                     24,949,921         48,361    192,741 25,191,023          23,578,636          37,542     181,718   23,797,896

 Working capital loan                   3,178,492        121,848    177,899   3,478,239          2,400,068         104,398     293,573     2,798,039




                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                           2023 Annual Report                   255
Page 258
                                                                December 31, 2023                                                 December 31, 2022
               Description
                                                 Stage 1        Stage 2           Stage 3         Stage           Stage 1         Stage 2          Stage 3             Total

 Covid-19 Restructurisation                                 -                -              -               -      3,160,896          33,974          337,404         3,532,274

 Wholesale and retail                            2,729,943        148,116           437,951      3,316,010         1,654,813          91,337          200,612         1,946,762

 Employee loans                                  2,005,146          2,612            15,745      2,023,503         2,050,789           3,144           23,193         2,077,126

 Mining, quarrying, electricity, and
                                                 2,723,010         25,530           558,974      3,307,514         1,220,386          11,991          119,168         1,351,545
 transportation

 Mortgage                                        1,496,088        125,008           231,420        852,516         1,222,011         116,132          241,184         1,579,327

 Public, social culture, entertainment,
                                                 1,719,947         15,764            48,080      1,783,791           747,574           8,375           25,022           780,971
 and other individual services

 Agriculture, hunting and forestry               1,510,630         42,059           203,509      1,756,198           748,259         117,445           67,375           933,079

 Processing industry                             2,343,498         22,053           103,913      2,469,464         1,614,145          20,003           51,057         1,685,205

 People's business credit                        3,709,273         90,788            54,695      3,854,756         2,393,551          29,099           12,857         2,435,507

 Financial intermediaries                        1,631,661         10,586            32,259      1,674,506           604,442          18,758           24,849           648,049

 Linkage program                                  173,634                    -              -      173,634           216,994                   -                -       216,994

 Accommodation, food and beverages                185,464           5,604            48,670        239,738           129,987           4,617            8,080           142,684

 Other business and households                   1,231,176          9,719            63,579      1,304,474           147,980                914           328           149,222

 Real estate, business rental and
                                                   36,424           1,649            15,294         53,367            18,096                635        10,566             29,297
 services

 Cattle Breeding Business Loan                              -                -            641           641                   -                -        2,142               2,142

 Individual service which serve
                                                   15,744             263                 528       16,535                8,773             294           499               9,566
 households

 Energy and Food Stability Loan                             -                -              -               -                 -                -          317                  317

 Limit activities that are not yet clear                    -                -              -               -             2,989                -                -           2,989

 Others                                            77,134                    -              -       77,134           174,194                   -                -       174,194

                                            49,717,185            669,960         2,185,898 52,573,043 42,094,583                   598,658        1,599,944 44,293,185

 Allowance for impairment losses                 (367,710)        (74,071)         (869,732) (1,311,513)            (263,059)        (61,303)        (911,041)      (1,235,403)

 Conventional - Net                         49,349,475            595,889         1,316,166 51,261,530 41,831,524                   537,355          688,903 43,057,782



                                                                 December 31, 2023                                                 December 31, 2022

               Description                                             Impaired                                                          Impaired
                                                   Not                                                              Not
                                                                                                   Total                                                               Total
                                                 Impaired                                                         Impaired
                                                                Individual        Collective                                      Individual       Collective

Sharia                                       1,986,968          200,892               -          2,187,860        1,802,438         101,034                  -       1,903,472

Allowance for implairment losses                 (17,395)       (35,997)              -          (53,392)           (33,308)        (49,901)                 -          (83,209)

Sharia - Net                                 1,969,573          164,895               -          2,134,468        1,769,130          51,133                  -       1,820,263

Total - Net                                 51,319,048          760,784           1,316,167     53,395,998 43,600,654               588,488          688,903 44,878,045


Table of Movements in Allowance for Impairment Losses Based on Type of Loans Extended
			                                                                                                                                                                 (in IDR million)


                                                        December 31, 2023                                                         December 31, 2022
           Description                 Working                                                               Working
                                                     Investment       Consumption               Total                        Investment        Consumption             Total
                                       capital                                                                  capital

 Balance at beginning of year           793,315         199,485                  325,812    1,318,612        1,192,221            257,879            381,317         1,831,417

 Provision during the year              349,480         144,856                  181,587        675,923         267,676            52,363             67,715           387,754




          PT Bank Pembangunan Daerah Jawa Timur Tbk
256       2023 Annual Report
Page 259
                                                                                                  MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                               OF BANK PERFORMANCE




                                                    December 31, 2023                                           December 31, 2022
          Description            Working                                                         Working
                                                Investment      Consumption       Total                      Investment    Consumption          Total
                                   capital                                                       capital

 Written-off during the year     (482,918)           (4,969)       (141,743)    (629,630)        (666,582)     (110,757)       (123,220)      (900,559)

 Balance at December 31            659,877          339,372         365,656     1,364,905         793,315       199,485         325,812      1,318,612

   Individual impairment           411,873           90,939         230,012      732,824          570,537        92,889         203,467        866,893

   Collective impairment for
                                   248,004           248,43         135,644      632,081          222,778       106,596         122,345        451,719
   non-impaired loans

 Balance at December 31            659,877          339,372         365,656     1,364,905         793,315      199,485         325,812      1,318,612




The table below shows the credit quality per type of financial instrument that has not yet matured and Not-Impaired (excluding
allowance for impairment losses):


Table of Credit Quality per Type of Financial Instruments That Have Not Matured and Not-Impaired in 2023
                                                                                                                                            (in IDR million)


                                                                                 December 31, 2023

           Description                 Not Matured and Not Impaired
                                                                                    Past-due but
                                                                                                                Impaired                   Total
                                                                                    not impaired
                                       High Grade              Standard grade

 AMORTIZED COST

   Goverment’s bonds                         5,440,446                     -                 -                             -           5,440,446

   Mutual Funds                              2,089,300                     -                 -                             -           2,089,300

   Bonds                                      450,000                      -                 -                             -               450,000

   Sukuk of Bank Indonesia                    450,000                      -                 -                             -               450,000

   Negotiable Certificate of
                                               28,500                      -                 -                             -                28,500
   Deposit

   Investment Cerificate                       90,000                      -                 -                             -                90,000

   Domestic Documentary Letter
                                               12,913                      -                 -                             -                12,913
   of Credit

   Bill                                           112                      -                 -                             -                    112

                                             8,561,271                     -                 -                             -           8,561,271

 FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   Goverment’s bonds                         7,762,560                     -                 -                             -           7,762,560

 AMORTIZED COST

   Currents account with Bank
                                             7,971,412                     -                 -                             -           7,971,412
   Indonesia

   Currents account with other
                                              491,330                      -                 -                             -               491,330
   banks

   Placement with Bank Indonesia
                                             5,234,721                     -                 -                             -           5,234,721
   and other banks

   Spot and derivative
                                             6,247,318                     -                 -                             -           6,247,318
   receivables

   Reverse repo receivables                   223,138                      -                 -                             -               223,138

   Other receivables

      Working capital                                -           14,870,654                  -                     679,697           15,550,351

      Investment                                     -            7,846,461                  -                     155,818             8,002,279

      Consumption                                    -           30,679,965                  -                     528,308           31,208,273




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   2023 Annual Report              257
Page 260
                                                                        December 31, 2023

             Description            Not Matured and Not Impaired
                                                                          Past-due but
                                                                                            Impaired            Total
                                                                          not impaired
                                     High Grade        Standard grade

   Interest receivables                        -            685,734             -                      -         685,734

 Total                                36,491,750         54,082,814             -           1,363,823         91,938,387

 Allowances for impairment losses              -           (697,350)            -            (674,168)        (1,371,518)

 Nrtto                                36,491,750         53,385,464             -             689,655         90,566,869


Table of Kualitas Kredit Per Jenis Instrumen Keuangan Yang Belum Jatuh Tempo dan Tidak Mengalami Decrease Nilai Tahun 2022
                                                                                                                  (in IDR million)


                                                                        December 31, 2022

                                    Not Matured and Not Impaired
             Description                                                  Past-due but
                                                                                            Impaired            Total
                                     High Grade        Standard grade     not impaired


 AMORTIZED COST

   Government’s Bonds                 12,025,332                   -            -                      -       12,025,332

   Mutual Funds                           90,000                   -            -                      -           90,000

   Bonds                               1,851,074                   -            -                      -        1,851,074

   Bank Indonesia Deposit
                                         400,000                   -            -                      -         400,000
   Certificate

   Negotiable Certificate of
                                          47,237                   -            -                      -           47,237
   Deposit

   Interbank Mudharabah
                                         325,000                   -            -                      -         325,000
   Investment Certificate (SIMA)

   Bill                                    2,418                   -            -                      -            2,418

                                      14,741,062                   -            -                      -      14,741,062

 FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

   Government’s Bonds                  8,476,609                   -            -                      -        8,476,609

 AMORTIZED COST

   Currents account with Bank
                                      10,786,740                   -            -                      -       10,786,740
   Indonesia

   Currents account with other
                                         303,129                   -            -                      -         303,129
   banks

   Placement with Bank Indonesia
                                       6,916,329                   -            -                      -        6,916,329
   and other banks

   Spot and derivative
                                             361                   -            -                      -              361
   receivables

   Reverse repo receivables            7,822,847                   -            -                      -        7,822,847

   Other receivables                     286,147                   -            -                      -         286,147

   Loan and Sharia financing

         Working capital                       -          10,259,372            -             708,638          10,968,010

         Investment                            -           6,448,282            -             122,376           6,570,658

         Consumption                           -          28,179,834            -             478,155          28,657,989

   Interest receivables                        -            646,125             -                      -         646,125

 Total                                49,333,224         45,533,613             -           1,309,169         96,176,006

 Allowances for impairment losses              -           (499,126)            -            (823,481)         (1,322,607)

 Net                                  49,333,224         45,034,487             -             485,688         94,853,399




           PT Bank Pembangunan Daerah Jawa Timur Tbk
258        2023 Annual Report
Page 261
                                                                                             MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                          OF BANK PERFORMANCE




Market Risk

Market risk is the risk that occurs in the statements of financial         in the economic value of banking book positions, due to
position and administrative accounts due to changes in market              changes in interest rates. In managing interest rate risk, it is
variables, such as interest rates and exchange rates. Market risk          carried out on banking book exposure, taking into account the
is almost inherent in all operational activities of the Bank, both         position of gaps in the Bank’s assets and liabilities which are
in the banking book and trading book.                                      sensitive to movements in interest rates that affect the stability
                                                                           of the Bank’s profitability level.
Market risk management is carried out in accordance with the
Bank’s policies and procedures related to products and services            The table below represents the average annual contractual
as well as treasury activities and the risks inherent in the               interest rates for significant financial assets and liabilities as of
business. Interest rate risk arises from changes in financial              December 31, 2023 dan 2022:
instrument prices from trading book positions or from changes


Table of Average Annual Contractual Interest Rates for Significant Financial Assets and Liabilities
                                                                                                                                             (in %)


                                                                 December 31, 2023                             December 31, 2022
                         Description
                                                                IDR                   USD                     IDR                 USD

 ASSETS

 Current accounts with Bank Indonesia                             0.00%                     0.00%               0.00%                 0.00%

 Current accounts with other banks                                0.00%                     0.00%               0.02%                 0.04%

 Placements with Bank Indonesia and other banks                   6.06%                     0.00%               1.33%                 0.47%

 Marketable securities                                            5.63%                     0.00%               7.99%                 0.00%

 Marketable securities sold under repurchased agreement           6.46%                     0.00%               5.38%                 0.00%

 Marketable securities purchased under resale agreement           6.32%                     0.00%               5.80%                 0.00%

 Loans and sharia financing                               10.50%-12.75%                     0.00%      10.50%-12.75%                  0.00%

 LIABILITIES

 Deposits from customers                                   0.00% - 3.51%         0.00% - 1.65%          0.00% - 2.74%          0.00% - 0.16%

 Deposits from other banks                                 0.00% - 3.43%                        -       0.00% - 2.27%                        -


The following table summarizes the Bank’s exposure to interest rate risk (gross) which may have an impact on future cash flows as of
December 31, 2023 dan 2022:


Table of Bank Exposure to Interest Rate Risk (Gross) in 2023
						                                                                                                                              (in IDR million)


                                                                               December 31, 2023

                                                                               Floating interest rate
               Description
                                         Not more          3 Months
                                                                            1 year and            Fixed       Non-interest
                                          than 3          but less than                                                             Total
                                                                                up            interest rate     bearing
                                          months             1 year

 FINANCIAL ASSETS

 Cash                                      2,652,775                  -                 -                 -                -        2,652,775

 Current accounts with Bank Indonesia      7,971,412                  -                 -                 -                -        7,971,412

 Current accounts with other banks           490,253                  -                 -                 -                -          490,253

 Placements with Bank Indonesia and
                                           5,229,695                  -                 -                 -                -        5,229,695
 other banks




                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                              2023 Annual Report           259
Page 262
                                                                         December 31, 2023

                                                                         Floating interest rate
              Description
                                        Not more        3 Months
                                                                       1 year and        Fixed        Non-interest
                                         than 3        but less than                                                   Total
                                                                           up        interest rate      bearing
                                         months           1 year

 Marketable securities

    Amortized cost                        2,334,459       1,481,901      4,744,401                -              -     8,560,761

    Fair value through other
                                          7,762,560               -              -                -              -     7,762,560
    comprehensive income

 Marketable securities sold under
                                          6,948,304               -              -                -              -     6,948,304
 repurchased agreement

 Marketable securities purchased
                                          6,247,318               -              -                -              -     6,247,318
 under resale agreement

 Other receivable                           223,138               -              -                -              -       223,138

 Loans and sharia financing

    Working capital                                -              -              -     15,550,351                -    15,550,351

    Investment                                     -              -              -      8,002,279                -     8,002,279

    Consumption                                    -              -              -     31,208,273                -    31,208,273

 Interest receivable                        287,221          14,280       384,233                 -              -       685,734

 Total financial assets                  40,147,135       1,496,181      5,128,634     54,760,903                -   101,532,853

 FINANCIAL LIABILITIES

 Obligations due immediately                987,605               -              -                -              -       987,605

 Deposits from customers

 Current accounts                        20,926,363               -              -                -              -    20,926,363

 Savings accounts                        28,815,896               -              -                -              -    28,815,896

 Time deposits                                     -              -              -     28,454,651                -    28,454,651

 Deposits from other banks                2,570,985           8,260           500                 -              -     2,579,745

 Spot and derivative liabilities                   -              -              -                -              -                 -

 Borrowings                                        -        530,156              -                -        66,821        596,977

 Accrued expenses                           504,748               -              -                -              -       504,748

 Other liabilities                          779,314               -              -                -              -       779,314

 Total financial liabilities             54,584,911         538,416           500      28,454,651          66,821     83,645,299

 Net interest repricing gap             (14,437,776)        957,765      5,128,134     26,306,252         (66,821)    17,887,554



Table of Bank Exposure to Interest Rate Risk (Gross) in 2022
					                                                                                                                  (in IDR million)


                                                                         December 31, 2022

                                                                         Floating interest rate
              Description
                                        Not more        3 Months
                                                                       1 year and        Fixed        Non-interest
                                         than 3        but less than                                                   Total
                                                                           up        interest rate      bearing
                                         months           1 year

 FINANCIAL ASSETS

 Cash                                     1,988,262               -              -                -              -     1,988,262

 Current accounts with Bank Indonesia    10,786,740               -              -                -              -    10,786,740

 Current accounts with other banks          302,688               -              -                -              -       302,688

 Placements with Bank Indonesia and
                                          6,913,175               -              -                -              -     6,913,175
 other banks




         PT Bank Pembangunan Daerah Jawa Timur Tbk
260      2023 Annual Report
Page 263
                                                                                          MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                       OF BANK PERFORMANCE




                                                                              December 31, 2022

                                                                              Floating interest rate
               Description
                                           Not more         3 Months
                                                                            1 year and        Fixed        Non-interest
                                            than 3         but less than                                                       Total
                                                                                up        interest rate      bearing
                                            months            1 year

 Marketable securities

    Amortized cost                           1,578,463         4,995,096      8,167,102                -              -       14,740,661

    Fair value through other
                                                      -                 -     8,476,609                -              -        8,476,609
    comprehensive income

 Marketable securities sold under
                                             4,095,066                  -             -                -              -        4,095,066
 repurchased agreement

 Marketable securities purchased
                                             7,822,847                  -             -                -              -        7,822,847
 under resale agreement

 Other receivable                              286,147                  -             -                -              -          286,147

 Loans and sharia financing

    Working capital                                   -                 -             -      10,968,010               -       10,968,010

    Investment                                        -                 -             -       6,570,658               -        6,570,658

    Consumption                                       -                 -             -      28,657,989               -       28,657,989

 Interest receivable                            74,213            14,396        557,516                -              -          646,125

 Total financial assets                    33,847,601          5,009,492     17,201,227     46,196,657                -     102,254,977

 Financial Liabilities

 OBLIGATIONS DUE IMMEDIATELY

 Deposits from customers                       916,091                  -             -                -              -          916,091

 Current accounts

 Savings accounts                           23,634,773                  -             -                -              -       23,634,773

 Time deposits                              26,343,817                  -             -                -              -       26,343,817

 Deposits from other banks                            -                 -             -      31,788,793               -       31,788,793

 Borrowings                                  3,334,563             4,560              -                -              -        3,339,123

 Accrued expenses                                     -          481,532              -                -         71,867          553,399

 Other liabilities                             520,840                  -             -                -              -          520,840

 Total financial liabilities                   550,119                  -             -                -              -          550,119

 Net interest repricing gap                55,300,203            486,092              -     31,788,793          71,867       87,646,955

 Gap repricing suku bunga - Neto          (21,452,602)         4,523,400     17,201,227     14,407,864         (71,867)      14,608,022



The following table shows the sensitivity to a possible one percentage point change in reasonable interest rates, with all other variables
held constant, in the Bank’s statement of profit or loss and other comprehensive income. The sensitivity of the statement of comprehensive
income is the impact of changes in the assumption of interest rates in the statement of profit or loss and other comprehensive income in
that period. The sensitivity of total profit or loss is based on the assumption of parallel shifts in the yield curve.


Table of Sensitivity to Possibility of Change					
				                                                                                                                           (in IDR million)


                                                                                                       December 31, 2023
                                       Description
                                                                                                Increase                  Decrease

 Effect on the statement of profit or loss and other comprehensive income                        62,414                   (62,414)




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report        261
Page 264
The Bank is exposed to interest rate risk in Singapore Dollars,         Liquidity Risk
USD, Euros, etc. Exchange rate risk is the risk that the value of
a financial instrument will fluctuate due to changes in foreign         Liquidity risk results from the Bank’s inability to meet maturing
currency exchange rates. Currency risk is the possible loss             liabilities from cash flow funding sources and/or from high-
of income arising from changes in foreign exchange rates.               quality liquid assets that can be used as collateral without
The Bank manages exposure to the effects of fluctuations                disrupting the Bank’s activities and financial condition. The
in foreign currency exchange rates by maintaining foreign               Bank measures liquidity risk using the Liquidity Risk Model
currency risk within existing regulatory guidelines (i.e.,              with a maturity profile gap methodology. Management of
maintaining the Net Open Position in accordance with                    daily liquidity conditions is carried out by the Treasury Unit,
Bank Indonesia regulations). As of December 31, 2023, and               and external and macroeconomic changes that occur are
2022, the influence of foreign currency exchange rates is not           immediately informed and internal strategies and policies are
significant to the Bank.                                                adopted, including through the Asset and Liabilities Committee
                                                                        (ALCO) mechanism.


The ratio of net liquid assets to customer deposits is as follows:


Table of the Ratio of Net Liquid Assets to Customer Deposits 		
			                                                                                                                            (in IDR million)


                                        Description                                      December 31, 2023       December 31, 2022

 Cash and cash equivalent                                                                     16,350,238                 19,994,460

 Marketable securities sold under purchased agreement                                          8,303,663                  4,095,066

 Reverse repo receivables                                                                      6,247,318                  7,822,847

 Deposits from other banks                                                                     2,560,321                  3,339,123

 Total                                                                                        33,461,540                 35,251,496

 Deposits from customers                                                                      75,849,855                 81,767,383

 Ratio of net liquid assets to deposit from customers                                             44.12%                    43.11%


The following maturity table presents information regarding the estimated remaining maturities of financial assets and liabilities
(principal only) as of December 31, 2023 dan 2022:


Table of Information on Estimated Remaining Maturity of Financial Assets and Liabilities (Basic Only) in 2023
                                                                                                                               (in IDR million)


                                                                            December 31, 2023
             Description                    Carrying      Less than 1                                       6 - 12          More than
                                                                        1 - 3 months    3 - 6 months
                                             value          month                                           months          12 months

 FINANCIAL ASSETS

 Cash                                         2,652,775     2,652,775               -                -               -                     -

 Current accounts with Bank Indonesia         7,971,412     7,073,597               -                -               -          897,815

 Current accounts with other banks              490,253       490,253               -                -               -                     -

 Placements with Bank Indonesia and
                                              5,229,695     5,228,200           1,495                -               -                     -
 other banks

 Marketable securities

   Amortized cost                             8,560,761       830,243      1,504,216          783,350         698,551         4,744,401

   Fair value through other
                                              7,762,560     7,732,011         30,549                 -               -                     -
   comprehensive income




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                                                                       December 31, 2023
              Description               Carrying      Less than 1                                        6 - 12           More than
                                                                    1 - 3 months      3 - 6 months
                                         value          month                                            months           12 months

 Marketable securities sold under
                                          6,948,304     6,948,304                 -                  -                -                    -
 repurchased agreement

 Marketable securities purchased
                                          6,247,318     6,197,612        49,706                      -                -                    -
 under resale agreement

 Other receivable                          223,138        223,138                 -                  -                -                    -

 Loans and sharia financing

    Working capital                      14,890,474       271,543       832,593          2,530,760        2,766,875        8,488,703

    Investment                            7,662,909        30,414         7,589             15,135          225,659        7,384,112

    Consumption                          30,842,615        17,031       144,205            119,894          513,914       30,047,571

 Interest receivable                       685,734        251,395        35,826              8,246            6,034           384,233

 Total                                  100,167,948    37,946,516      2,606,179         3,457,385        4,211,033       51,946,835

 FINANCIAL LIABILITIES

 Obligations due immediately               987,605        987,605                 -                  -                -                    -

 Deposits from customers                 78,196,910    22,457,975      5,462,113         2,436,735        7,344,737       40,495,350

 Deposits from other banks                2,579,744     2,541,704        29,280                 60            8,200                 500

 Borrowings                                557,632        150,638                 -                  -                -       406,994

 Accrued expenses                          504,748        504,748                 -                  -                -                    -

 Other liabilities                         779,314        779,314                 -                  -                -                    -

 Total                                   83,605,953    27,421,984      5,491,393         2,436,795        7,352,937       40,902,844

 Maturity gap                            16,561,995    10,524,532    (2,885,214)         1,020,590       (3,141,904)      11,043,991


Table of Information on Estimated Remaining Maturity of Financial Assets and Liabilities (Basic Only) in 2022
                                                                                                                            (in IDR million)


                                                                       December 31, 2022
              Description               Carrying      Less than 1                                        6 - 12           More than
                                                                    1 - 3 months      3 - 6 months
                                         value          month                                            months           12 months

 FINANCIAL ASSETS

 Cash                                    1,988,262      1,988,262             -                  -                -                    -

 Current accounts with Bank Indonesia   10,786,740       230,541              -                  -                -       10,556,199

 Current accounts with other banks         302,688       302,688              -                  -                -                    -

 Placements with Bank Indonesia and
                                         6,913,175      6,306,518       606,657                  -                -                    -
 other banks

 Marketable securities

    Amortized cost                      14,740,661       725,515        852,948          2,367,794       2,627,302         8,167,102

    Fair value through other
                                         8,476,609              -             -                  -                -        8,476,609
    comprehensive income

 Marketable securities sold under
                                         4,095,066      4,095,066             -                  -                -                    -
 repurchased agreement

 Marketable securities purchased
                                         7,822,847      7,440,160             -                  -         192,726           189,961
 under resale agreement




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     2023 Annual Report            263
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                                                                             December 31, 2022
              Description                   Carrying       Less than 1                                      6 - 12         More than
                                                                         1 - 3 months    3 - 6 months
                                             value           month                                          months         12 months

 Other receivable                                286,147      286,147               -               -                -                  -

 Loans and sharia financing

    Working capital                         10,174,698        474,092         591,709       1,027,046        1,904,233       6,177,618

    Investment                               6,371,172         35,082           2,414           7,284          32,541        6,293,851

    Consumption                             28,332,175         16,380          25,106          68,179         320,447       27,902,063

 Interest receivable                             646,125       25,795          48,418           9,901           4,495         557,516

 Total                                    100,936,365      21,926,246      2,127,252       3,480,204        5,081,744      68,320,919

 FINANCIAL LIABILITIES

 Obligations due immediately                     916,091      916,091               -               -                -                  -

 Deposits from customers                    81,767,383      11,214,472     16,200,878       1,699,788       10,878,340      41,773,905

 Deposits from other banks                   3,339,123       3,287,933         46,630              60            4,500                  -

 Borrowings                                      553,399      150,517               -               -                -        402,882

 Accrued expenses                                520,840      520,840               -               -                -                  -

 Other liabilities                               550,119      550,119               -               -                -                  -

 Total                                     87,646,955      16,639,972     16,247,508       1,699,848       10,882,840      42,176,787

 Maturity gap                              13,289,410       5,286,274    (14,120,256)      1,780,356       (5,801,096)     26,144,132




Material Commitments Related                                             Capital Expenditure Investment
To Capital Goods Investment
                                                                         Investment in the form of capital expenditure is an activity of
During 2023, Bank Jatim will have no material commitments for            spending funds used to buy a number of permanent assets or
investment in capital goods. Therefore, there is no information          add fixed assets that are expected to provide future benefits.
regarding the name of the contracting party, the purpose of
the bond, the source of funds expected to fulfill the bonds, the
currency denominated and the steps the company plans to take to
hedge the risk of the relevant foreign currency position.



Types and Value of Investment
Capital Goods

Types and Investment of Capital Goods are presented in the following table.


Table of Types and Value of Investment Capital Goods		
                                                                                                                             (in IDR million)


                                            Type                                            Value in 2023            Value in 2022

 Land, buildings, and complementary facilities                                                 1,124,400                 1,124,105

 Inventory                                                                                       710,310                   621,891

 Vehicle                                                                                          46,202                    45,543

 Total                                                                                         1,880,912                 1,791,539




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Capital Goods Investment Purpose

Bank Jatim’s capital goods spending, among others, aims             carried out in the IDR currency so that the bank does not have
to develop service office networks and supporting bank              a risk of foreign exchange rates in capital goods expenditure
operations. All capital goods expenditure transactions are          transactions




Commitment and Contingent

The bank has receivables and liabilities involving commitments and contigencies as follows


Table of commitment and contigent			
			                                                                                                                    (in IDR million)


                                       Description                                           2023                  2022

 COMMITMENTS

 Commitments receivables

 IDR:

 Purchase of spot and derivative                                                                    -              156,070

 Others                                                                                             -             1,974,389

                                                                                                    -             2,130,459

 Foreign exchange:

 Purchase of spot and derivative                                                                    -                      -

                                                                                                    -                      -

 COMMITMENTS LIABILITIES

 IDR

 Unused loan commitments granted to debtors                                              3,770,265                3,399,512

 Total Commitment Liabilities, Net                                                       3,770,265               1,269,053

 CONTINGENTCIES

 Contingent receivable

 IDR:

 Interest income on past due account                                                          82,966               119,108

 Others                                                                                          13                     13

 Total contingent receivable                                                                  82,979               119,121

 Contingent Liabilities

 IDR:

 Bank guarantee issued                                                                       653,383               973,063

 Foreign Exchange:

 Bank guarantee issued                                                                        46,191                46,703

 Total Contingent Liabilities                                                                699,574             1,019,766

 Total Contingent liabilities, net                                                           616,595               900,645

 Total Commitment and contingencies liabilities, net                                     4,386,860               2,169,698




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
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Information and Material Facts After the Accountant’s Report Date

Until the end of this annual report, there is no description of important events after the date of the accountant’s report including its
impact on future business performance and risk


Business Prospects and Future Strategies in 2024

                                                    World Economic Outlook October 2023
                                                         Growth Projection by Region




                    WORLD
              3.5
                           3.0          2.9




             2022         2023         2024


                  (real GDP growth,
                   percent change)




              UNITED STATES                                                    EURO AREA                             SUB-SAHARAN AFRICA

     2.1                2.1                                       3.3                                              4.0                       4.0
                                                                                                                                3.3
                                           1.5
                                                                                                         1.2
                                                                                      0.7

    2022               2023               2024                   2022                2023               2024       2022        2022          2022




             LATIN AMERICA                                                MIDDLE EAST                                      EMERGING AND
           AND THE CARIBBEAN                                            AND CENTRAL ASIA                                  DEVELOPING ASIA

                                                                                                                                5.2
     4.1                                                          5.6                                              4.5                       4.8

                        2.3                2.3                                                           3.4
                                                                                      2.0


    2022               2023               2024                   2022                2023               2024       2022        2022          2022


Source   : IMF, World Economic Outlook, October 2023.                                                                                 IMF.    #WEO
Note     : Order of bars for each group indicates (left to right): 2022, 2023 projections, and 2024 projections.



According to the World Economic Oulook (IMF, October 2023), global economic growth in 2024 is expected to be at the
level of 2.9%, Latin Americ at 2.3%, Europe at 1.2%, Middle East Africa at 3.4%. Meanwhile, economic growth in developing
countries in Asia is projected to grow 4.8% in 2024. Global economic growth in 2024 is predicted to be supported by solid
Asian economies. China’s economic growth outlook is expected to slow, but India and a number of ASEAN countries are
predicted to be stronger.




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The solid economic outlook for Asia is shown by, among                                 Indonesia’s economy is showing economic resilience and
others, Indonesia rising again to become an upper-middle                               a strong recovery amidst global challenges. Indonesia’s
income country, which shows the large potential for                                    economic growth projection for 20224 is expected to be
consumption and investment. The high commitment to                                     maintained at 5.2%. National stability is expected to be
structural reforms shown by a number of Asian countries                                maintained and it encourage public and business optimism
such as India, Indonesia, Thailand, and the Philippines is                             to continue economic activities and the positive trend
also expected to further accelerate the growth of the Asian                            of new job opening. In addition, improving the level of
region, and, in turn, the global economy. India’s economic                             public welfare will also be a driving factor for consumption
growth is expected solidly in 2024, the highest among G20                              in 2024. Government consumption in 2024 is projected to
countries. India, which accounts for three-qaurters of South                           grow relatively high. The holding of simultaneous elections
Asia’s economic output, is expected by the IMF to growby                               and regional elections in 2024 is one of the pillars of the
6.1 percent this year and increase by 2024.                                            growth of government consumption in 2024. Based on this
                                                                                       optimism, the government issued the basic medium-term
                                                                                       macroeconomic assumptions for 2024-2027 in the 2024
                                                                                       State Budget which is explained in the following table.

Table of Basic Medium Term Macroeconomic Assumptions for 2024-2027

                          Indicator                                         2027                 2026                 2025              2024

 Economic Growth (% yoy)                                                     5.7-6.4               5.6-6.3              5.5-6.0                5.2

 Inflation (% yoy)                                                           1.5-3.5               1.5-3.5              1.5-3.5                2.8

 Exchange rates (IDR/USD)                                           14.600-15.000           14,700-15,100         14,800-15,200           15,000

 SBN interest rates - 10 years (%)                                          6.73-7.5              6.73-7.5              6.3-7.5                6.7

 Indonesian crude oil prices (US$/barell)                                     70-90                 70-90                70-90                 80

 Lifting of crude oil (thousand barrel per day)                             618-756               624-731              606-684               625

 Lifting of natural gas (thousand barrel per day)                      1.151-1.340             1.175-1.307          1.052-1.147            1.033

Source: 2024 State Revenue and Expenditure Budget Plan (RAPBN), Ministry of Finance




The capacity and development of the financial services sector in 2024 will still be influenced by global and national economic
sentiment. The estimated growth in credit performance for the financial services and banking sector in 2024 is as follows.


Table of Credit Performance Growth Projection

                                  Institution                                                                Credit Projections

 Bank Indonesia                                                                                                  10% - 12%

Source: Statement by the Governor of Bank Indonesia dated August 22, 2023



The future development of the banking industry faces a                                 In addition, the development of fintech and digital financial
number of challenges and opportunities that can shape a                                integration become important factors in formulating the future
profound transformation in the way banks operate and interact                          of the banking industry. The adoption of digital payments,
with customers. One of the main trends in the use of digital                           peer-to-peer lending platforms, and app-based financial
technology that is continuously developing includes artificial                         services is getting more common. Banks are attempting to
intelligence (AI) data analytics, and blockchain technology.                           adapt to this trend by providing more digitally accessible
Banks are endeavoring to improve operational efficiency and                            banking services including online account opening, instant
provide a more personalized as well as convenient customer                             money transfers, and financial managements via mobile
experience by utilizing these technological innovations. A                             applications.
concrete example of this development can be seen in the
application of artificial intelligence in credit risk analysis.                        One of the government supports for banking transformation
Banks are applying AI algorithms to evaluate custormers’                               is through the Financial Services Authority Regulation (POJK)
credit profile more accurately and quickly, enabling them to                           Number 12/PJOK/3.2021 concerning Commercial Banks
make smarter credit decisions. This is not only improves the                           that accomodate Digital Banks. Based on the POJK, Digital
credit approval process, but also reduces risks for banks.                             Banks are defined as banks that provide and carry out their




                                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                        2023 Annual Report      267
Page 270
main business activities through electronic channels with           3. Positive climate of sustainable economic growth in East
limited offices or without physical offices other than the             Java.
head office. One example of an existing Digital Bank is DBS         4. There are still a lot of market opportunities originating from
Bank, based in Singapore, which has become a leader in the             the regional government and private ecosystems.
digital transformation of banking in Asia. They offer a veriety     5. There is still a large potential for Bank Jatim’s market share,
of digital services, including online account opening, app-            especially for civil servants (PNS).
based banking services, and the lastest security technology.        6. Regional-based economic development programs in East
DBS is also active in developing financial innovations, such as        Java Province.
the use of blockchain technology. Additionally, Ally Bank in        7. The utilization of artificial intelligence (AI) and new
the United States is an example of a successful international          technology to improve operational efficiency and customer
digital bank. Ally Bank completely operates online with                experience.
no physical branch offices. They offer a variety of banking
products for example savings, deposits, and loans focusing          Not only conducting SWOC Analysis, but Bank Jatim also
on easy customer experiences, competitive interest rates,           carries out Internal Factors Analysis Strategy (IFAS) and
and no incremental costs.                                           External Factors Analysis Strategy (EFAS) Matrix Analysis in
                                                                    formulating business development strategies. The description
The importance of sustainability becomes a key aspect in            of the bank business development strategy formulation in
the development of the banking industry in the future. Banks        2024 is presented as follows:
are increasingly focusing on sustainable finance initiatives        1. Loan/financing distribution activities, especially to
including financing environtmentally friendly projects and              productive and potential economic sectors which are
developing financial products that promote corporate                    balanced with the development and improvement of
social responsibility. Overall, the future development of               facilities and infrastructure that support business activities
the banking industry reflects deep changes in business                  (improving regulations and supporting technology) by
paradigms. Technology and innovation play a central role                paying attention to prudential banking principles.
in providing more efficient, faster, and relevant services          2. The utilization of strategic projects in order to encourage
to customers while still paying attention to the aspects of             economic growth and improve business performance
sustainability and social responsibility.                               through the distribution of productive loan to strategic
                                                                        sectors and UMKM especially in East Java Province.
Considering this, Bank Jatim conducted a competitive                3. The optimization and improvement of information
analysis through Strengths, Weaknesses, Opportunities,                  technology-based products and services by paying
Challenges (SWOC) Analysis. Factors considered as the                   attention to prudential banking and security principles.
internal advantages of Bank Jatim are presented as follows:         4. Expanding and deepening the market in order to improve
1. Adequate digital banking technology infrastructure to                business and achieve financial inclusion through improving
    compete with the industry.                                          services and optimizing the role of the network including
2. Synergy with a variety of parties, such as fintech, regional         Laku Pandai agents.
    government, and other related parties.                          5. Increasing profitability through leveraging the CASA ratio,
3. Diverse financial product and service offerings for various          improving credit quality, providing sustainable devisa
    customer segments.                                                  financial services, and developing other digital-based and
4. Have good relationships and synergy with shareholders ,              customer-oriented products.
    especially the Provincial Government and Regency/City           6. Expanding and improving cooperation with various parties
    Government.                                                         in order to increase business in the fields of funds and
                                                                        credit/financing.
By utilizing its internal advantages, Bank Jatim is optimistic      7. Maintaining good relationships with customers, especially
that it will have good prospects in the future. The opportunities       shareholders such as providing full support for government
for Bank Jatim in 2024 are as follows:                                  programs and playing an active role in strategic projects,
1. Shifting people’s behavior in using banking technology .             particularly in East Java Province.
2. Demographic landscape of the millenial populations who           8. Increasing digital-based services and building an
    are active users of the internet and e-commerce, as well as         ecosystem as well as supporting facilities both with the
    the potential for the digital economy and finance.                  Regional Government and the private sectors with the aim
                                                                        of accelerating Bank Jatim’s performances.




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Achievement of Targets and Future Targets


Target Achievement                                                          Comparison of Financial Target and Realization
In general, Bank Jatim’s target achievement in 2023 has shown
good results . Descriptions related to comparisons of financial             Comparison of financial targets and realization in 2023 is as
targets and realization, capital structure, marketing and HR                follows.
development are presented as follows.


Table of Comparison Bank Business Plans and Financial Realization in 2023
                                                                                                                                   (in IDR million)


                             Description                               Realization 2023          Target 2023              Achievement

                                 1                                            2                         3                     4=2/3

 FINANCIAL POSITION

 Asset                                                                   103,854,773              106,827,245                  97.22%

 Loans                                                                    54,760,903               54,738,950                 100.04%

 Third-party funds                                                        78,196,910               90,406,639                  86.49%

   Current Account                                                        20,926,362               25,606,820                  81.72%

   Savings                                                                28,815,896               28,460,999                 101.25%

   Time deposit                                                           28,454,652               36,338,820                  78.30%

 PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

 Interest income                                                           7,357,284                 7,044,434                104.44%

 Other operating income                                                     648,420                  1,786,030                 36.31%

 Current year profit                                                       1,470,105                 1,648,908                 89.16%

 FINANCIAL RATIOS (%)

 Capital Adequacy Ratio (CAR)                                                  25.71                     21.74                118.26%

 Non-Performing Loans (NPL) Gross                                                 2.49                      2.50               99.60%

 Return on Assets (R O A)                                                         1.87                      2.19               85.39%

 Return on Equity (R O E)                                                      13.96                     15.91                 87.74%

 Net Interest Margin (NIM)                                                        5.57                      5.74               97.04%

 Operating Costs Operating Income (BOPO)                                       77.27                         72               107.32%

 Loan to Deposit Ratio (LDR)                                                   70.03                     60.55                115.66%




Total assets reached 97.22% with realization in 2023 of IDR                 CAR ratio in 2023 will be 25.71%, with a target achievement of
103.85 trillion, slightly below the target due to a decrease in             118.26%. By distributing credit that adheres to the principle of
deposits. The credit provided reached 100.04% with a realization            prudence (prudential banking practices) as well as strengthening
of IDR 54.76 trillion in 2023. Third party funds realized IDR 78.19         risk management and implementing an NPL reduction strategy
trillion in 2023 with an achievement of 86.49%, this is in line with        in 2023, Bank Jatim’s gross NPL can be maintained at the level of
the decline in deposits. However, third party funds from savings            2.49% or lower than the target of 2, 50%.
managed to exceed the target by reaching 101.25%
                                                                            In the future, Bank Jatim will continue to implement the strategies
In terms of income, the achievement of interest income is                   that have been determined, and is committed to being able to
104.44% with realization in 2023 of IDR 7.36 trillion. The profit           play an active role in the BPD transformation program which has
achievement for the current year in 2023 is 89.16% with the                 high resilience and competitiveness while continuing to act as
realization of IDR 1.45 trillion which is below the target, This was        an agent of development in the region through inclusive and
due to an increase in interest expenses resulting from an increase          sustainable growth.
in CASA.




                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                2023 Annual Report        269
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Comparison of Target and Realization of Capital Structure

Bank Jatim’s capital has resilience in facing various changes                    bank capital management strategies implemented in 2023
in the business environment in 2023, this is marked by the                       include increasing bank capital through bank profits, increasing
achievement of the total core capital and supplementary                          capital through general reserves from undivided profits,
capital target of 106.21% with realization in 2023 amounting                     increasing capital through asset revaluation and optimizing
to IDR11.54 trillion. In order to maintain and strengthen capital,               RWA.



Table of Comparison of Target and Realization of Capital Structure in 2023		
                                                                                                                                             (in IDR million)


                             Description                                   Realization 2023              Target 2023                Achievement

                                   1                                                2                           3                       4=2/3

 Main core capital (CET 1)                                                     11,025,184                  10,361,423                   106.41%

 Complementary capital ( Tier 2)                                                  516,010                     504,996                   102.18%

 Total Core Capital and Supplementary Capital                                  11,541,194                  10,866,419                   106.21%




Comparison of Marketing Target and Realization

A description of the comparison of marketing targets and realization is presented as follows.


Table of Comparison of Marketing Targets and Realization in 2023

           Description Target                                                             Realization in 2023

 Pursue (One Account One Student)                  A total of 51,402 student accounts have been opened for SimPel and SimPel iB

 Thematic DPK Promo Program.                       DPK promo programs have been held such as Gen 1 Like Cycle, Gen 2 Like Cycle, Cash Pro, Love
                                                   Cycle, Ramadhan Cycle, Yes Fresh Fund Promo and Top Up.

 Simpeda and Cycle Savings Lottery .               The sweeptakes of cycle savings was held in August while the sweeptakes of Simpeda savings in
                                                   December.

 Event Sponsorship Collaboration in the Bank       Several events of sponsorship collaborations have been carried out including:
 Jatim working area.                               - Sponsorship for Blissfull Ramadhan activities to increase Bank Jatim brand awareness.
                                                   - Collaboration with the East Java Provincial Transportation Service for the branding of Bank Jatim
                                                     on the TransJatim bus fleet (10 buses) on the Sidoarjo > Gresik > Surabaya route.
                                                   - Sponsorship for Ramadhan Megilan Vol 2 2023 activities to increase Bank Jatim brand awareness.
                                                   - Sponsorship of Silaturahmi and Golf activities with BMPD in Java to increase Bank Jatim brand
                                                     awareness.
                                                   - Sponsorship of Maddendang Cultural Festival activities to increase Bank Jatim brand awareness.

 The optimization of QRIS implementation.          - Transaction Promo Program for Bank Jatim’s QRIS merchants at hotels in the Surabaya area (The
                                                     Alana, Kampi, and Deka Hotel) as well as the event sponsorship.
                                                   - Culinary Branding at the Culinary Tourism Center Jl Karang Bulak/Pinghay (Next to BRI Tower).

 Financial Inclusion Month promo program.          The 2023 Financial Inclusion Month (BIK) activities were carried out simultaneously by the OJK in the
                                                   fourth quarter, precisely in October 2023. Additionally, the promotion of the BIK program was also
                                                   carried out at every Bank Jatim activity (road to BIK).

 Go-Speed Current Account Promo Program.           A Current Account promo program has been carried out starting from November 2023 and funds with
                                                   a total of IDR128,500 billion have been collected in the corporate sector which is kept in the form of
                                                   Current Account savings for a period of 1 (one) month and 3 (three) months.

 Collaborating with banking        institutions/   Several MOUs and collaborations with partners/entities/other companies have been conducted in
 entities/ other companies.                        which 28 MOUs and 92 Head Office PKS and 79 Branch PKS have been resulted during 2023.




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             Description Target                                                                 Realization in 2023

 The development of the State Revenue                The preparation of internal and external resources as well as system integration in the context of
 System for Collecting Agent (Bank                   implementing the Core Tax Administration System (CTAS) and the mechanism for checking the status
 Jatim) version 3.0 in relation with the             of State Revenue Module (MPN) transactions.
 implementation of CTAS.

 The integration of the Siskeudes Village            The implementation of Non-Cash Transactions (TNT) in several villages in East Java.
 Financial System with the Ministry of Home
 Affairs.

 Accelerating the activation of non-cash             Optimizing the use of CMS and developing the VA Dashboard in order to provide easy and quick
 transactions through the use of Cash                monitoring of CMS use by the PKN Directorate, DJPb Regional Office, KPPN, and the Ministry/
 Management System (CMS) facilities by the           Agency Headquarters.
 APBN Management Working Unit.

 The implementation of Digital Population            Bank Jatim is the first in Indonesia, the first BPD implementing the use of Digital KTPs.
 Identity (IKD) for Banking in collaboration with
 the Directorate General of Population and Civil
 Registration, Ministry of Home Affairs.




Comparison of Targets and Realization
of Hr Development

The achievement of education and training (Diklat) costs was                           to IDR38,865 billion in 2023. This increase is also reflected in
realized at 54.33%, which was below the target. However,                               the budget absorption reaching 54.33% in 2023. This is partly
if we look at the realization of the education and training                            driven by the increasing implementation of education and
budget in 2023, there has been a significant increase,                                 training activities held both online and offline to support the
namely an increase of 63.06% from IDR23,834 billion in 2022                            Bank’s business activities


Table of Comparison of Targets and Realization of Human Resource Development in 2023
                                                                                                                                                 (in Full Rupiah)


                               Description                                        Realization 2023            Target 2023                Achievement

                                      1                                                     2                         3                      4=2/3

 Education and training costs (Training)                                              38,865,797,580          71,535,425,000                 54.33%




Future Target (Projection)

East Bank Management has prepared a Bank Business Plan for 2024 taking into account current economic conditions and economic
projections for 2024 , both from a macro and micro perspective.


Table of Assumptions in Preparing Projections

                                                    Indicator                                                                      2024

 Economic Growth (% yoy)                                                                                                              5.2

 Inflation (% yoy)                                                                                                                    2.8

 Exchange Rate (IDR/USD)                                                                                                          15,000

 10 Year SBN Interest Rate (%)                                                                                                        6.7

 Indonesian Crude Oil Price (US$/barrel)                                                                                               80

 Lifting (thousand barrels per day)                                                                                                  625

 Lifting (thousand barrels of oil equivalent per day)                                                                              1,033

Source: 2024 State Revenue and Expenditure Budget Plan (RAPBN), Ministry of Finance




                                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                          2023 Annual Report             271
Page 274
Financial Projections

Description of financial projections in 2024 is presented as follows:


Table of 2024 Financial Projection
				                                                                                                  (in IDR million)


                                           Description                              Projection 2024

                                                1                                         2

 FINANCIAL POSITION

 Asset                                                                                117,292,667

 Loans                                                                                 66,831,046

 Third-party funds                                                                    100,308,905

   Current account                                                                     29,431,571

   Savings                                                                             33,872,755

   Time deposit                                                                        37,004,578

 Loans received                                                                           536,020

 PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME

 Interest income                                                                        7,814,118

 Other operating income                                                                 1,682,001

 Current year profit                                                                    2,241,019

 FINANCIAL RATIOS (%)

 Capital Adequacy Ratio (CAR)                                                                 23.54

 Non-Performing Loans (NPL) Gross                                                              2.40

 Return on Assets (ROA)                                                                        1.99

 Return on Equity (ROE)                                                                       14.70

 Net Interest Margin (NIM)                                                                     5.79

 Operating Costs Operating Income (BOPO)                                                      75.82

 Loan to Deposit Ratio (LDR)                                                                  66.63



Capital Structure Projections

A description of the projected capital structure in 2024 is presented as follows:


Table of capital structure projection for 2024
					                                                                                                 (in IDR million)


                                           Description                              Projection 2024

                                                1                                         2

 Main core capital (CET 1)                                                            11,243,084

 Complementary capital ( Tier 2)                                                         557,711

 Total Core Capital and Supplementary Capital                                         11,800,795




         PT Bank Pembangunan Daerah Jawa Timur Tbk
272      2023 Annual Report
Page 275
                                                                                                               MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                                            OF BANK PERFORMANCE




Dividend Policy Projections

Description of the projected dividend policy for the 2023 financial year which will be distributed in 2024 is presented as follows:


Table of Dividend Policy Projection		
				                                                                                                                                                            (in IDR million)


                                                    Description                                                                              Projection

                                                            1                                                                                      2

 Estimated Net Profit for 2023                                                                                                                  1,470,105

 Estimated Total Dividends distributed                                                                                                            816,693

 Estimated Dividends obtained by the Provincial Government (Pemprov) of East Java                                                                 417,547

 Dividend Payout Ratio (%)                                                                                                                         54,39%

* Notes:
For the estimated distribution of dividends for the 2023 financial year which will be distributed in 2024, after obtaining approval from the East Java Provincial Government as
Controlling Shareholder (PSP).



Marketing Projections

In 2024 Banks prepared marketing projections as follows:                                   13. The development and utilization of the payment ecosystem.
1. Event Promo Program (Jatim Prioritas Community, Anniversary).                           14. The development of web-based Regional Financial
2. Like-Like Cycle.                                                                            Electronification.
3. Collaboration in Financial Services in the Retail and                                   15. The initiation of centralization of Regional Public Service
    Individual Segments through QRIS.                                                          Agencies (BLUD) fund management agreements, with Bank
4. Implementing the Joint Commitment among the Governor                                        Jatim’s financial service facilities (both in the form of offline
    of East Java, OJK and Bank Jatim regarding the KEJAR                                       services and Bank Jatim’s digitalization program).
    (one student, one account) program.
5. Opening of Savings Accounts for students in East Java with                              HR Development Projections
    initial deposit stimulation targeting approximately 50,000
    accounts.                                                                              An HR development strategy is a plan regarding how the
6. Simple Day activities, financial literacy and inclusion,                                quality of human resources can develop in a better direction
    collaboration with government and OJK programs, and                                    and increase their work capabilities. An HR development
    collaboration with school programs including Bank Mini.                                strategy can run well if it is accompanied by a carefully planned
7. QRIS merchant acquisition program, targeting modern                                     HR development program. So it is hoped that it will be able to
    market traders, malls, and traditional traders.                                        help achieve the goal of producing quality human resources.
8. Bank Jatim QRIS merchant branding and promo program.                                    One of the HR development programs is holding training
9. Thematic DPK promo program.                                                             programs for employees.
10. The participation in OJK Financial Inclusion Month
    activities.                                                                            Bank Jatim develops quality human resources in 2023 through
11. The participation in event sponsorship in the Bank Jatim                               education and training programs. There are several types of
    working area.                                                                          HR training that can be carried out, including skills training ,
12. Bank Jatim Savings Sweeptakes Program.                                                 retraining or retraining, team training , creativity training and
                                                                                           others. In 2024, the projected human resource development
                                                                                           for all employees is 5,242 people.




Table of HR Development Projection for 2024			
		                                                                                                                                                                  (in People)


                                                    Description                                                                         2024 Projections

                                                            1                                                                                      2

 Training for organic employees                                                                                                                 5,242




                                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                 2023 Annual Report                    273
Page 276
Policies, Announcements and Payment of Dividend

Dividend Policy

The dividend policy is prepared to ensure that all Shareholders                    c.    Bank Health Level.
receive their rights and equal treatment for dividends                             d.    Bank financial condition.
distributed by the Bank in accordance with the principles of                       e.    Profit growth expectations.
good governance and applicable regulations while still taking                      f.    Considering the Bank’s capital needs in the future.
into account the interests of the Bank. Based on the distribution                  g.    Bank development/growth plans and strategies.
mechanism, dividends are divided into 2 (two), namely final                        h.    Bank business sustainability.
dividends and interim dividends. The number of dividends                           i.    Market conditions.
distributed is linked to the Bank’s profit in the financial year                   j.    Shareholder Interests.
concerned, without ignoring the Bank’s profit level and reducing                   k.    Compliance with relevant and applicable regulations.
the rights of the Company’s General Meeting of Shareholders                        l.    Banks can only distribute dividends if the Bank has a positive
to determine other things/aspects in accordance with the                                 profit balance, after taking into account the reserves that
provisions of the Bank’s Articles of Association. The dividend                           must be established as required by the Incorporated
distribution plan must be included in the Bank’s Business Plan                           Company (Perseroan Terbatas) Law.
submitted to the Financial Services Authority.
                                                                                   In the event that the Bank experiences problems as explained
It is possible for banks to distribute dividends of at least 50%                   in the points above and/or experiences financial performance
(fifty percent) of the current year’s net profit which can be                      conditions that require special treatment, the Bank may:
distributed in the form of cash dividends taking into account:                     a. Proposing to the RUPS to postpone dividend payments;
a. The achievement of Bank financial performance.                                  b. Stopping the payment of approved dividends;
b. The Bank’s Capital Adequacy Ratio (KPMM) level after                            c. Stopping the payment of dividends in installments or
      distribution of dividends and other investment projects                           stopping the payment of dividends gradually; and/or
      that require significant capital, is not less than the ratio                 d. Withdrawing        dividend    payments     to   Controlling
      provisions determined by the Bank and/or regulatory                               Shareholders, in the event that the Bank experiences
      provisions from time to time.                                                     financial performance problems.



Announcement and Payment of Dividend

Based on the AGMS Decision, PT Bank Pembangunan Daerah Jawa Timur Tbk carried out the announcement and payment of
dividends as in the following table.


Table of Dividend Announcement and Payment Table

          Description                Fiscal Year 2022       Fiscal Year 2021            2020 Fiscal Year       2019 Fiscal Year       2018 Fiscal Year

 Net Profit (IDR)                     1,542,824,394,640      1,523,069,838,418           1,488,961,630,120      1,376,505,140,913      1,260,308,411,500

 Dividends (IDRIDR)                  797,172,793,173.38     782,457,605,053.02          733,507,081,305.70     723,747,007,552.40     683,865,985,709.02

 Non-Cash Dividends *)                                  -                      -                           -                      -                      -

 Dividend Per Share (IDR)                          53.09                 52.11                       48.85                 48.20                  45.61

 Non-Cash Dividend Per
                                                        -                      -                           -                      -                      -
 Share *)

 Total Shares                             15,015,498,082        15,015,498,082              15,015,498,082         15,015,498,082         14,978,134,982

 Dividend Payout Ratio (%)                        51.67%               51.37%                      49.26%                 52.58%                 54.26%

 Announcement Date                          March 3, 2023       March 29, 2022                 May 5, 2021           May 5, 2020            May 9, 2019

 Payment date                               May 12, 2023         April 14, 2022              May 28, 2021           May 20, 2020           May 29, 2019

 Non-Cash Dividend Payment
                                                        -                      -                           -                      -                      -
 Date *)

*) Bank Jatim does not have non-cash dividends




          PT Bank Pembangunan Daerah Jawa Timur Tbk
274       2023 Annual Report
Page 277
                                                                                      MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                   OF BANK PERFORMANCE




Announcement and Payment of Dividend                                  Information on Material Transactions
for Fiscal Year 2022                                                  Containing Conflicts of Interest and/or
                                                                      Transactions With Affiliated Parties
On April 12, 2023 Bank Jatim held an AGMS which approved
and determined the use of Bank Jatim’s net profit for the             Material Transactions are any transactions carried out by
financial year ending December 31, 2022 amounting to                  a public company or controlled company that meet the
IDR1,542,824,394,640.00 as follows:                                   transaction value limit equal to 20% (twenty percent) or more
1. An amount of IDR797,172,793,173.38 or 51.67% of Bank               of the Public Company’s equity (Financial Services Authority
    Jatim’s net profit for the 2022 financial year was distributed    Regulation Number 17/POJK.04/2020 concerning Material
    as cash dividends to shareholders registered in the               Transactions and Changes in Business Activities).
    Company’s Register of Shareholders as of May 2, 2023
    which will be paid on May 12, 2023.                               Conflict of Interest Transactions
2. A total of IDR745,651,601,466.62, 48.33% of Bank Jatim’s
    net profit for the 2022 financial year is designated as           In accordance with the provisions in the Financial Services
    General Reserves.                                                 Authority Regulation Number 42/POJK.04/2020 concerning
                                                                      Affiliate Transactions and Conflict of Interest Transactions, a
Announcement and Payment of Dividend                                  Conflict of Interest is the difference between the economic
for Fiscal Year 2021                                                  interests of a public company and the personal economic
                                                                      interests of members of the board of directors, members
On March 17, 2022 Bank Jatim held an AGMS which                       of the board of commissioners, major shareholders, or
approved and determined the use of Bank Jatim’s net profit            controllers who can be detrimental to the listed company
for the financial year ending 31 December 2021 amounting to           in question.
IDR1,523,069,838,418.00 as follows:
1. In the amount of IDR782,457,605,053.02 or 51.37 % of Bank          One effort to avoid conflicts of interest is that all parties,
     Jatim’s net profit for the 20 21 financial year distributed as   both employees and company leaders, must comply with the
     cash dividends to shareholders registered in the Company’s       established code of ethics and avoid activities that could cause
     Register of Shareholders as of March 29, 2022 which will be      a conflict of interest.
     paid on the April 14, 2022.
2. Amounting to IDR740,612,233,364.98, a total of 48.63               During 2023 there will be no transactions that meet the
     % of Bank Jatim’s net profit for the 20-21 financial year is     category of conflict of interest transactions.
     designated as General Reserves.
                                                                      Transaksi Afiliasi

Realization of Use of Public                                          Based on the provisions of Financial Services Authority
Offering Proceeds                                                     Regulation Number 42/POJK.04/2020 concerning Affiliate
                                                                      Transactions and Conflict of Interest Transactions, Affiliates are:
The last public offering was carried out in 2012 and the use of       a. Family relationships due to marriage and descent up to the
proceeds from the public offering was in accordance with plan.            second degree, both horizontally and vertically;
So that 2023 is not a reporting period for the use of public          b. The relationship between the party and the employee,
offering proceeds, Bank Jatim has no obligation to submit a               director or commissioner of that party;
report on the realization of the use of public offering proceeds.     c. Relationship between 2 (two) Companies where there are 1
                                                                          (one) or more members of the same Board of Directors or
                                                                          Board of Commissioners;
Material Information Regarding                                        d. Relationship between the Company and the Party, whether
Investment, Expansion, Divestment,                                        directly or indirectly, controlling or controlled by the
Merger/Consolation Businesses,                                            company;
Acquisitions, Debt / Capital                                          e. Relationship between 2 (two) companies controlled, either
Restructuring                                                             directly or indirectly, by the same party; or
                                                                      f. Relationship between the Company and Major
Throughout 2023 , Bank Jatim did not carry out investment,                Shareholders.
expansion, divestment, business merger/consolidation,
acquisition and debt/capital restructuring activities .




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report         275
Page 278
Furthermore, Affiliate transactions are any activity and/or                a) Has control or joint control over the reporting entity;
transaction carried out by a public company or controlled                  b) Has significant influence over the reporting entity; or
company with an Affiliate of a public company or an Affiliate              c) A member of the key management personnel of the
of a Member of the Board of Directors, Member of the Board                      reporting entity or of a parent of the reporting entity.
of Commissioners, Major Shareholder or Controller, including         ii.   An entity is related to the reporting entity if any of the
any activity and/or transaction carried out by Public Company              following conditions applies:
or Controlled Company for the benefit of Affiliates of Public              a) The entity and the reporting entity are members of the
Companies or Affiliates of members of the Board of Directors,                   same Bank and its subsidiaries (which means that each
Members of the Board of Commissioners, Major Shareholders,                      parent, subsidiary and fellow subsidiary is related to the
or Controllers.                                                                 others);
                                                                           b) One entity is an associate or joint venture of the other
Transactions with affiliated parties have potential risks, namely               entity (or an associate or joint venture of a member of
the risk of misuse by parties which may be detrimental to the                   a Bank and its subsidiaries of which the other entity is a
Bank. Therefore, Bank Affiliated Parties are prohibited from                    member);
using the Bank for personal, family and/or other party interests           c) Both entities are joint ventures of the same third party;
which may harm or reduce the Bank’s profits.                               d) One entity is a joint venture of a third entity and the
                                                                                other entity is an associate of the third entity;
During 2023 there were none transactions that meet the                     e) The entity is a post-employment benefit plan for the
category of affiliated party transactions.                                      benefit of employees of either the reporting entity, or
                                                                                an entity related to the reporting entity;
Related Party Transactions                                                 f) The entity is controlled or jointly controlled by a person
                                                                                identified in (i);
In the normal course of its business, the Bank enters into                 g) A person identified in (i). (a) has a significant influence
transactions with related parties which are defined under                       over the entity or is a member of the key management
PSAK 7 (Revised 2015), “Related Party Disclosures”. The                         personnel of the entity (or a prent of the entity); or
meaning of a related party is a person or entity that is related           h) The entity or any members of a Bank and its subsidiaries
to a reporting entity as follow:                                                of which it is a part, provides key management
i. A person or a close member of that person’s family is                        personnerl service to the reporting entity or to the
    related to a reporting entity if that person:                               parent of the reporting entity



Name of the Transacting Party and Nature of the Relationship

Description of the name of the transacting party and the nature of the relationship is presented as follows:


Table of Names of Parties and Nature of Related Transaction Relationships

               Related Parties                           Nature of Relationship                     Nature of the Transaction

 Government of East Java Province              Shareholder                                   Fund Placement

 Government of Surabaya City                   Shareholder                                   Fund Placement

 Government of Malang Regency                  Shareholder                                   Fund Placement

 Government of Jember Regency                  Shareholder                                   Fund Placement

 Government of Pasuruan City                   Shareholder                                   Fund Placement

 Government of Banyuwangi Regency              Shareholder                                   Fund Placement

 Government of Probolinggo Regency             Shareholder                                   Fund Placement

 Government of Bondowoso Regency               Shareholder                                   Fund Placement

 Government of Sidoarjo Regency                Shareholder                                   Fund Placement

 Government of Tuban Regency                   Shareholder                                   Fund Placement

 Government of Situbondo Regency               Shareholder                                   Fund Placement




        PT Bank Pembangunan Daerah Jawa Timur Tbk
276     2023 Annual Report
Page 279
                                                                                         MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                      OF BANK PERFORMANCE




               Related Parties                             Nature of Relationship                   Nature of the Transaction

 Government of Kediri Regency                     Shareholder                                 Fund Placement

 Government of Lumajang Regency                   Shareholder                                 Fund Placement

 Government of Lamongan Regency                   Shareholder                                 Fund Placement

 Government of Nganjuk Regency                    Shareholder                                 Fund Placement

 Government of Mojokerto Regency                  Shareholder                                 Fund Placement

 Government of Sampang Regency                    Shareholder                                 Fund Placement

 Government of Malang City                        Shareholder                                 Fund Placement

 Government of Pasuruan Regency                   Shareholder                                 Fund Placement

 Government of Bangkalan Regency                  Shareholder                                 Fund Placement

 Government of Gresik Regency                     Shareholder                                 Fund Placement

 Government of Mojokerto City                     Shareholder                                 Fund Placement

 Government of Pacitan Regency                    Shareholder                                 Fund Placement

 Government of Batu City                          Shareholder                                 Fund Placement

 Government of Ngawi Regency                      Shareholder                                 Fund Placement

 Government of Jombang Regency                    Shareholder                                 Fund Placement

 Government of Madiun Regency                     Shareholder                                 Fund Placement

 Government of Pamekasan Regency                  Shareholder                                 Fund Placement

 Government of Tulungagung Regency                Shareholder                                 Fund Placement

 Government of Blitar Regency                     Shareholder                                 Fund Placement

 Government of Ponorogo Regency                   Shareholder                                 Fund Placement

 Government of Trenggalek Regency                 Shareholder                                 Fund Placement

 Government of Magetan Regency                    Shareholder                                 Fund Placement

 Government of Bojonegoro Regency                 Shareholder                                 Fund Placement

 Government of Probolinggo City                   Shareholder                                 Fund Placement

 Government of Blitar City                        Shareholder                                 Fund Placement

 Government of Madiun City                        Shareholder                                 Fund Placement

 Government of Kediri City                        Shareholder                                 Fund Placement

 Government of Sumenep Regency                    Shareholder                                 Fund Placement

 Government of Bojonegoro Regency                 Shareholder                                 Fund Placement

 Government of Lamongan Regency                   Shareholder                                 Fund Placement

 Government of Sumenep Regency                    Shareholder                                 Fund Placement

 PT Bank Perkreditan Rakyat Jawa Timur            Owened by the same final Shareholder        Loans, Fund Placement

 Dewan Komisaris, Direksi dan Pejabat Eksekutif   Key employees                               Customer Savings, Expenses Labor

 RKUD Kabupaten Lamongan                          Owened by the same final Shareholder        Loans, Fund Placement

 Pemda Kabupaten Lamongan                         Owened by the same final Shareholder        Loans, Fund Placement



Fairness and Reasons for the Transaction

In normal business activities, Bank Jatim carries out transactions with related parties due to ownership and/or management
relationships. All transactions with related parties have been carried out with mutually agreed policies and conditions and comply
with the arm’s length principle . Related party transactions occur because of Bank Jatim’s business needs.




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report   277
Page 280
Realization of Related Party Transactions

Balance of productive assets, savings, loans received and commitments and contingencies from parties
related are as follows:


Table of Realization of Related Party Transactions
                                                                                                                             (in IDR million)


                                       Description                                              2023                     2022

 ASSET

 loan provided and sharia financing (Note 12)

 Key management loans                                                                            100,611                  104,192

 Rek Kas Umum Daerah Lamongan                                                                     30,914                   24,851

 Pemda Kab Lamongan                                                                               46,220                          -

 Etc                                                                                               7,103                    5,828

 Total                                                                                           184,848                  134,871

 Percentage of Total assets                                                                        0.18%                   0.13%

 LIABILITIES

 Deposits from customers (Note 18)                                                            12,644,538               15,295,405

 Percentage of Total liabilities                                                                 14.15%                    17.05%

 Deposits from other banks (Note 19)                                                                    -                         -

 PT BPR East Java                                                                             12,648,302                  141,996

 Total                                                                                        12,648,302                  141,996

 Percentage of Total liabilities                                                                 14.16%                    0.16%

 PROFIT & LOSS AND OTHER COMPREHENSIVE INCOME

 Interest income (Note 30)                                                                        13,968                    8,052

 Percentage of total interest and sharia income                                                    0.19%                   0.12%

 Interest and sharia expenses                                                                    459,124                  471,882

 Percentage of total interest and sharia expenses                                                19.82%                   24.01%

 COMMITMENTS AND CONTINGENCIES

 There are no balances of commitments and contingencies to related parties for the years
                                                                                                        -                         -
 ended December 31 2023 and 2022

 KEY MANAGEMENT COMPENSATION

 Compensation for key Bank management personnel (excluding Commissioners and Directors)

 Wages                                                                                            17,656                   22,995

 Production service                                                                               12,009                   12,053

 Allowance                                                                                         7,458                   10,520

 Total                                                                                            37,123                   45,569


Details of the names of parties related to the realization (value) of related party transactions are presented in the notes to Financial
Report No. 40 attached to this Annual Report. These related transactions are business activities carried out in order to generate
business income and are carried out routinely, repeatedly and/or continuously.


Review Mechanism Policy on Transactions and Compliance With Related Regulations and Conditions

Transactions with related parties that are material or significant must first be reviewed by the Risk Monitoring Committee and
obtain approval from the Board of Commissioners. All transactions have gone through a review mechanism according to the type
of transaction and an analysis of the feasibility of the transaction has been carried out. Throughout 2023 there were no violations of
laws and regulations related to transactions with related parties. If transactions with related parties require shareholder approval, the
approval is carried out by shareholders who have no interest in the transaction.


         PT Bank Pembangunan Daerah Jawa Timur Tbk
278      2023 Annual Report
Page 281
                                                                                                 MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                              OF BANK PERFORMANCE




Changes in Legal Regulations and Its Impact on Bank

Changes to several statutory regulations throughout 2023 and their impact on Bank Jatim are described in the following table


Table of Changes to Legislative Regulations in 2023

                                                                                                           Adjustment
                                                                                                                                        Impact on
 No       Legislation                                    Setting Tree                                      Information
                                                                                                                                     Financial Reports
                                                                                                        Which is conducted

  1.   Law Number 4 of       This law regulates the financial sector ecosystem which includes:          With the issuance of         Does not have
       2023 concerning       a. Institutional;                                                          Law Number 4 of 2023,        a significant
       the Development       b. Banking;                                                                especially amendments        quantitative impact
       and Strengthening     c. Capital Market, Money Market, and Exchange Market;                      to Law Number 7              on Bank Jatim
       of the Financial      d. Insurance and guarantee;                                                of 1992 concerning           Financial Report.
       Sector                e. Joint Business Insurance;                                               Banking as it has been
                             f. Policy guarantee program;                                               amended several
                             g. Financing Services Business;                                            times, most recently
                             h. Bullion business activities (bullion);                                  with the Government
                             i. Pension Funds, old age security programs, and pension programs;         Regulation in Lieu of
                             j. Cooperative activities in the sector of financial services;             Law Number 2 of 2022
                             k. Microfinance institutions;                                              concerning Job Creation
                             l. Financial Conglomeration;                                               and the enactment of
                             m. Financial Sector Technology Innovation (ITSK);                          Government Regulation
                             n. The Implementation of Sustainable Finance;                              in Lieu of Law Number 2
                             o. Financial Literacy, Financial Inclusion, and Consumer Protection;       of 2022 concerning Job
                             p. Access to financing for Micro, Small and Medium Enterprises;            Creation to become Law
                             q. Human Resources;                                                        through Law Number
                             r. Financial System Stability;                                             6 of 2023, the Bank
                             s. Indonesian export financing institution; and                            made adjustments to the
                             t. Law enforcement in the financial sector                                 Articles of Association of
                                                                                                        PT Bank Pembangunan
                             Specifically in the banking sector, there are provisions regulated in      Daerah Jawa Timur Tbk.
                             Law Number 7 of 1992 as amended several times, most recently by
                             Government Regulation in Lieu of Law Number 2 of 2022 concerning
                             Job Creation, including changes to provisions related to Commercial
                             Bank Business Activities, the application of the precautionary principle
                             and the application of the principle of Good Governance, and Bank
                             Confidentiality provisions.


  2.   Law Number 6 of       This law regulates the stipulation of Government Regulation in Lieu        With the issuance of         Does not have
       2023 concerning       of Law Number 2 of 2022 concerning Job Creation. Specifically, for         Law Number 6 of 2023,        a significant
       the Stipulation       the banking sector, there are changes to the provisions regulated in       especially amendments        quantitative impact
       of Government         Law Number 7 of 1992 as has been amended several times, most               to Law Number 7              on Bank Jatim’s
       Regulations in Lieu   recently with the Government Regulation in Lieu of Law Number 2            of 1992 concerning           Financial Report.
       of Law Number 2       of 2022 concerning Job Creation, including changes to provisions           Banking as has been
       of 2022 concerning    related to the requirements for establishing a Commercial Bank.            amended several
       Job Creation into                                                                                times, most recently
       Law                                                                                              with Law Number 6
                                                                                                        of 2023 concerning
                                                                                                        the Determination of
                                                                                                        Government Regulation
                                                                                                        in Lieu of Law Number
                                                                                                        2 of 2022 concerning
                                                                                                        Job Creation Becoming
                                                                                                        Law, the Bank made
                                                                                                        adjustments to the
                                                                                                        Articles of Association of
                                                                                                        PT Bank Pembangunan
                                                                                                        Daerah Jawa Timur Tbk
                                                                                                        as per Deed Number 15
                                                                                                        dated May 9, 2023.




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   2023 Annual Report              279
Page 282
                                                                                                               Adjustment
                                                                                                                                          Impact on
 No      Legislation                                      Setting Tree                                         Information
                                                                                                                                       Financial Reports
                                                                                                            Which is conducted

 3.   The Republic of        POJK Number 17 of 2023 regulates several matters which are the                 With the issuance of       Does not have
      Indonesia Financial    main points of regulation presented as follows:                                the POJK provisions,       a significant
      Services Authority     a. Implementating the principles of Good Governance in the Bank,               the Bank is gradually      quantitative impact
      Regulation                which at least includes openness, accountability, responsibility,           reviewing the Bank’s       on Bank Jatim’s
      Number 17 of 2023         independence and fairness, and at least is realized in the                  internal regulations       Financial Report.
      concerning the            implementation of the duties, responsibilities and authority                related to the
      Implementation            of the Board of Directors and Board of Commissioners, the                   implementation of
      of Governance for         completeness and implementation of committee duties, handling               good governance at
      Commercial Banks.         conflicts of interests, the application of the compliance function,         the Bank, including the
                                the application of the internal audit function, the application of the      progress that has been
                                external audit function, the application of risk management, the            made, one of which is
                                provision of remuneration, the provision of funds to related parties        reviewing the working
                                and the provision of large funds, the integrity of reporting and            conditions of the Board
                                information technology systems, Bank strategic plans, shareholder           of Directors.
                                aspects, implementating the strategy of anti-fraud, implementing
                                sustainable finance, and implementing governance within the
                                bank business group.
                             b. In the POJK, apart from discussing the scope of the application of
                                Good Governance principles in banks, it also regulates the Board
                                of Directors, Board of Commissioners, Committees, Conflicts of
                                Interest, the Implementation of the Compliance Function, Internal
                                Audit Function, External Audit Function, the Implementation of Risk
                                Management, Providing Remuneration, application of principles
                                prudence in providing funds to related parties and providing large
                                funds, the integrity of reporting and information technology systems,
                                Bank strategic plans, Shareholder Aspects, the Implementation of
                                Anti-Fraud Strategy, the Implementation of Sustainable Finance,
                                Governance in Bank Business Groups, Governance Implementation
                                Reports and Assessment of the Implementation of Governance, the
                                Implementation of Good Governance in Banks for KCBLN.
 4.   POJK Number 8 of       This POJK regulates PJK’s obligations in preventing funding for the            With the issuance of       Does not have
      2023 concerning        proliferation of weapons of mass destruction, regulations for the              the POJK provisions,       a significant
      the Implementation     imposition of effective, proportional and dissuasive sanctions, PJK’s          the Bank is gradually      quantitative impact
      of Anti-Money          obligations in submitting periodic Individual Risk Assessments to              reviewing the Bank’s       on Bank Jatim’s
      Laundering             OJK, requirements and procedures for PJK’s cooperation with third              internal regulations       Financial Report.
      Programs,              parties in the context of verification (face to face) and (non-face to face)   related to AML,
      Prevention of          via electronic devices, improving the provisions of the compliance             CFT and PPPSPM
      Terrorism Financing,   management function and carrying out independent internal audits,              implementation policies.
      and Prevention of      pre-employee screening procedures, PJK’s obligation to submit data
      Funding for the        for supervision needs, as well as the arrangement of supporting
      Proliferation of       documents for the Indonesian Diaspora. Apart from this, simple
      Weapons of Mass        Customer Due Diligence (CDD) obligations are also regulated, CDD
      Destruction in the     towards Beneficial Owners towards all types of customers including
      Financial Services     public companies/issuers and state institutions, prohibitions on
      Sector.                outsourcing or agency relationships in Third Party CDD, increasing the
                             scope of Reporting Parties who are supervised by the OJK, namely the
                             Trustee, LPBBTI Organizer, SCF Organizer, and IKD Organizer as well
                             as adding Individual Companies as new entities in the Corporation.



Changes in Accounting Policies

Reasons for Changes in Accounting
Policies                                                                          -    Amendment to PSAK 1, “Presentation of Financial
                                                                                       Statements on the Classification of Liabilities as Short
The changes of Accounting policy is required to meet the                               Term or Long Term”, earlier application is permitted. The
Indonesian Financial Accounting Standards applied to the                               amendments determine the requirements for classifying
current year.                                                                          liabilities as current or non-current.
                                                                                  -    Amendment to PSAK 25, “Accounting Policies, Changes
Information on Changes in Accounting                                                   in Accounting Estimates and Errors”, earlier application
Policies                                                                               is permitted. Amendments to PSAK 25 provide a new
                                                                                       definition of accounting estimates and explanations.
On January 1, 2023, there are new standards and adjustments                       -    Amendment to PSAK 46, “Income Taxes” concerning
or amendments to several standards which are still valid and                           Deferred Taxes related to Assets and Liabilities arising
effective as of that date, namely as follows:                                          from Single Transactions, earlier application is permitted.


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                                                                                        MANAGEMENT DISCUSSION AND ANALYSIS
                                                                                                     OF BANK PERFORMANCE




    This amendment to PSAK 46 proposes that entities                    Bank Soundness Level
    recognize deferred tax assets and liabilities at the time of
    initial recognition, for example from lease transactions,           The bank’s soundness level is assessed based on POJK. 4/
    to eliminate differences in practice in the field for these         POJK.03/2016 concerning Assessment of the Soundness Level
    transactions and similar transactions.                              of Commercial Banks using a risk -based bank rating approach .
                                                                        Bank health level assessments are carried out on bank risks and
Quantitative Impact of Changes                                          performance which can be seen from the final ranking of the
in Accounting Policies on Financial                                     assessment results.
Statements
                                                                        Assessing the level of bank health using a risk approach
The implementation of these standards did not result in                 (risk based bank rating) which includes 4 (four) risk factors,
substantial changes to the Bank accounting policies and did             namely:
not have a material impact on the financial statements in the           1. Risk Profile
current period or the previous year.                                    2. Good Corporate Governance (GCG)
                                                                        3. Profitability ( Earnings )
                                                                        4. Capital ( Capital )




Bank Jatim Health Level Table Position December 31, 2022-2023 (self assessment)

                                                                  Rating Per                                   Rating Per
                    Rating Factors
                                                              December 31, 2023                            December 31, 2022

 Risk Profile                                                               Rating 2                                   Rating 2

 Good Corporate Governance (GCG)                                            Rating 3                                   Rating 3

 Profitability                                                              Rating 2                                   Rating 2

 Capital                                                                    Rating 2                                   Rating 2

 Composite Rating                                                  Rating 2 (Healthy)                         Rating 2 (Healthy)




Business Continuity Information

Items That Have The Potential To Have                                   Assessment of Items that Have a
a Significant Influence on Business                                     Significant Influence on Business Continuity
Continuity
                                                                        The Bank periodically evaluates matters relating to the Bank’s
The high geopolitical tension has been the only uncertainty             business continuity in the future. This evaluation is reflected
factor foreseen to remain and to increase in the medium and             in the Bank Health Level (TKB) composite score which is
the long runs. The second risk is the increasing frequency of           classified as healthy even during the pandemic. Based on the
another pandemic to come likely to cause deep multidimension            evaluation results, although there are several performance
crises. The third risk is the climate change issue threatening          components that have not been achieved optimally, with the
citizens’ health, safety, finance, and prosperity. Another major        accommodative targeted policies adopted by management,
risk is the digitalized technology as a factor to encourage             the bank can mitigate risks that have a significant impact on
advancements, yet to cause disruptive risks towards the global          financial performance throughout 2023.
economy. Nevertheless, competitive advantage, sustainable
innovation and transformation, and adaptive strategic policy            Bank management has assessed the Bank’s ability to maintain its
implementation has helped reduce further pandemic impacts               business continuity and believes that the Bank has the resources
for the Bank’s business performances reflected in the growth of         to maintain its business in the future. In addition, management is
financial performance throughout 2023.                                  not aware of any material uncertainties that could raise significant
                                                                        doubts about the Bank’s ability to maintain its business.




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                                                                         d. The abovementioned clauses must be met at least in
Assumptions Used By Management in                                           183 days’ time over one-year tax period; and
Conducting the Assessment                                                e. The requirement fulfilling processes are held by the
                                                                            Public Company Taxpayers by reporting it to the
Several assumptions that are taken into consideration by the                Directorate General of Taxation.
Bank when conducting an assessment of the Bank’s business
continuity include the following:                                    As of the above clauses, Bank Jatim can receive 3% lower fare
1. The Bank’s health level includes an assessment of the risk        than the original 22% applied in 2023 resulting in the 19% of
   profile, profitability/earnings performance, capitalization and   tax being paid according to the Income Tax Agency.
   implementation of Good Corporate Governance (GCG).
2. Analysis of global, national and regional economic                The approach of Bank Jatim towards taxation is heavily based
   conditions.                                                       on the obedience of the entirely applied taxation regulations.
3. Competitiveness analysis which includes the Strength,             Bank Jatim have created taxation strategies and policies
   Weakness, Opportunities and Challenges (SWOC) matrix,             approved and reviewed by the Director of Finance, Treasury
   Segmentation, Targeting and Positioning (STP) analysis,           and Global Services in reporting the Annual Tax Return of the
   as well as analysis of the Bank’s position in facing business     Income Tax Agency which is annually observed by the Director
   competition.                                                      of Finance, Treasury and Global Services.


                                                                     Bank Jatim has established structured, comprehensive
Taxation Aspects                                                     processes to manage and control taxes, such as:
                                                                     1. Corporate Governance Agency (executive) responsible to
Governance Framework, Management                                         apply taxation strategies is the Director of Finance, Teasury
and Control of Taxation Aspects                                          and Global Services.
                                                                     2. Taxation approaches applied in the company are done
As a resident taxpayer, the Bank Jatim is eligible to receive tax        through the availability of Standard Operating Procedure of
remission issued by the government’s incentives in accordance            Taxation, the development of application systems to cover
with the Regulation of the Ministry of Finance number 40, 2023           the taxation processes, and the enhancement of taxation
about Report Submission Forms and Procedures and Taxpayer                awareness via trainings and socializations.
Lists in terms of fulfilling the requirements of Income Tax          3. Identifying, managing, and monitoring the risks of taxation
Reduction for a resident taxpayer in the form of Public Company.         are done through sustainable monitoring and reconciliation
A resident taxpayer deserves to receive cost reductions worth            by Taxation Groups and related work units.
3% by meeting the requirements according to the third Article:
1. In the form of Public Company                                     The main stakeholders in the taxation is the government through
2. The whole amount of stock is sold in the Indonesian stock         the tax office. Bank Jatim, therefore, has always strengthened
     exchange at lowest of 40%                                       relationships with the Taxation Authority. The Bank has stood
3. Meeting certain requirements:                                     firmly on the obedience to the whole constitution regulations
     a. Stocks must be possessed by at least 300 parties;            issued by the Taxation Authority. Bank Jatim operates solely in
        - The 300 shareholders below 5% are excluded.                Indonesia which, therefore, issue its reports for Indonesia
        - Public Company Taxpayers repurchase their stocks,
            and/or
        - Those with special relations are regulated in the          Tax Payment Publication
            Constitution of Income Tax with Public Company
            Taxpayers                                                Bank Jatim in its operational activities, it has implemented Good
     b. Special relations for Public Company Taxpayers include:      Corporate Governance which is carried out in a transparent
        -    Controlling Shareholders; and/or                        and accountable manner, especially in managing its tax rights
        -    Main Shareholders as regulated in the constitutions     and obligations, its tax rights and obligations are carried out in
            of capital market                                        accordance with applicable regulations.
     c. Each party is only allowed to possess less than 5% out
        of the total stocks stored and fully deposited.




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                                                                                                       OF BANK PERFORMANCE




Total tax payments for the period January to December 2023 and 2022 are presented as follows.


Table of Tax Payment				
			                                                                                                                              (in IDR million)


                   Description Tax                                       Year 2023                                Year 2022

 Income Tax Article 21                                                    173.259                                   136.726

 Income Tax Article 23                                                      5.775                                      5.144

 Income Tax Article 25/29 Corporate                                       368.453                                   494.250

 Income Tax Article 26                                                      9.611                                     14.195

 Income Tax Article 4 Paragraph 2 Final                                   135.935                                   142.884

 Value Added Tax (VAT)                                                      1.047                                      2.352

 Stamp Duty Tax                                                             5.793                                      7.082

 Total                                                                    699.873                                   802.634




Response To Changes In Monetary Policy Direction

Throughout 2023, the global finance was filled with the high              A number of risks, however, remained to watch in welcoming
global inflations, restrictions of monetary policies, and the high        2024, including the on-going geopolitical tensions, especially
tension of geopolitics. Conflicts between Russia and Ukraine              with the rise of the conflicts between Israel and Palestine at the
are still taking place and economic sanctions were given to               end of 2023. Economic slowdown happened in a number of
Russia. Uncertainty of economic fluctuations and the US debts             countries, especially in Cina, which would have an impact on
worth USD 31 trillion reaching its limits in January causing the          Indonesia’s export and import performances, Indonesia’s trade
debt ceiling to raise forced a default threat for the US to be            balance and high monetary policy interest rates and bond yields
faced. Such fluctuations seemed even worse with the news                  in developed countries. Furthermore, Indonesia’s economic
from the collapsed Sillicon Valley Bank (SVB) in March shaking            growth conditions were still optimistic, especially supported
the global market resulting in mllions of dollars of companies’           by household consumption and investment continuing to grow
and investors’ capitals to be seriously impacted, which was               in line with public confidence and the continued completion
recorded as the biggest failures of American banking since                of the National Strategic Project (PSN/NSP). It was estimated
the 2008 financial crisis and as of the second biggest one                that Indonesia’s economic growth could still grow in the
ever in the history of the US. It led to the declines of investors’       range of 4.5% to 5.3% at the end of 2023, in accordance with
centainty towards the banking sector.                                     the inflation rate which was still undercontol based on Bank
                                                                          Indonesia’s target in the range of 2% to 4 % in 2023.
Labor market tightness in the US and Europe pushed inflation
higher, forcing the US central bank to tighten interest in rates          It is foreseeable that in 2024 The Fed will open the chance for
in April where the Fed raised its benchmark interest rate to              an interest rate cut in the second half of 2024 by 50 basis points.
5.25% and triggered the interest rate policy to change in other           Bank Indonesia will respond by signaling a BI rate cut in the
countries including Indonesia. Bank Indonesia’s benchmark                 second half of 2024 by looking at the potential for maintaining
interest rate (BI rate) has reached its highest level in the last 4 to    Indonesia’s inflation rate followed by the decision to set the
5 years. Throughout 2023, Bank Indonesia raised its benchmark             Bank Indonesia’s inflation target in 2024 at an optmistic 1.5%
interest rate twice by 50 basis points to 6% level. It closed the         to 3.5%.
year of 2023 by maintaining the benchmark interest rate at
this level at Bank Indonesia Board of Governor’s Meeting on               Banking liquidity conditions in 2023 were still considered
December 20 and 21, 2023. Despite Indonesia’s manageable                  adequate and supported by the Macroprudential Liquidity
inflation, the increase of the interest rate was to maintain              (KLM / ML) incentive policy to encourage credit or financing
monetary stability by keeping potential foreign capital outflows          growth. Liquidity maintenance was also supported by the
from the country at bay.                                                  existance Bank Indonesia Rupiah Securities (SRBI) which were




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            2023 Annual Report          283
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traded in the secondary market to increase banking flexibility
in managing liquidity and support the maintenance of banking           Provision of Funds to Related Parties
lending capacity. Other liquidity indicators such as the ratio of
Liquid Tools/Non Core Deposit (AL/NCD), Liquidity Coverage             The portion of the Portfolio Providing Funds to Related Parties
Ratio (LCR), Net Stable Funding Ratio (NSFR) including the             with the Bank as a whole, according to OJK regulations, is set
fulfillment of Statutory Reserves (GWM) and Macroprudential            at a maximum of 10% (ten percent) of Bank Capital, where what
Liquidity Buffer (PLM) are maintained in an optimal range and          is meant by related parties is:
in accordance with the limits set by the Regulator.                    1. Individuals or companies who control the Bank;
                                                                       2. Legal Entity in the case where the Bank acts as controller;
Bank Jatim responded to the upward trend in Bank Indonesia             3. The Company, in the case of an individual or company as
benchmark interest rates by adjusting deposit rates and                     intended in letter a, acts as the controller;
lending rates decided in the ALCO Meeting selectively and              4. Members of the Board of Directors, members of the Board
still paid attention to the bank’s performance targets 2023                 of Commissioners, and Bank Executive Officers;
and supported by optimizing the increase in credit volume,             5. Parties who have horizontal or vertical family relationships:
maintenance of fund composition and Cost of Fund (COF),                     a. From individuals who control the Bank as intended in
increased revenue derived from fee-based income transactions                    letter a; And
and overall overhead cost efficiency.                                       b. From members of the Board of Directors and/or
                                                                                members of the Board of Commissioners at the Bank
Although the Base Rate Loan of Bank’s Rupiah Credit raised                      as referred to in letter d;
until the fourth quarter of 2023, the Bank’s Rupiah Credit rate        6. Members of the Board of Directors and/or members of
was 7.68% for Corporate Loans, Retail Loans was 8.22% and                   the Board of Commissioners in the company referred to in
Consumer Loans-Non-Mortgage was 9.58%, the Bank’s role as                   point 1, point 2, and/or point 3;
an intermediary institution to the community continued to be           7. Companies whose members of the Board of Directors and/
optomized so that credit growth was higher than the previous                or members of the Board of Commissioners are members
year. Business innovation continues to be improved along with               of the Board of Commissioners of the Bank;
system and procedure improvements to improve the quality of            8. Companies where 50% (fifty percent) or more of the members
the credit/financing performance business process.                          of the board of directors and/or members of the board of
                                                                            commissioners are directors and/or commissioners of the
In accordance with the direction of Bank Indonesia’s policy                 company as referred to in point 1, point 2 and point 3;
mixture in 2024 regarding monetary poliicy which is focused            9. Companies that:
on stability, especially achieving inflation targets and rupiah             a. Members of the Board of Directors, members of the
exchange rate stability, the Bank will also support policies                    Board of Commissioners, and/or Bank Executive
related to macroprudential, payment systems, deepening                          Officers as referred to in letter d act as controllers; And
money markets, forex markets, and inclusive financial                       b. Members of the Board of Directors and/or members
economic policies that are expected to support sustainable                      of the Board of Commissioners from the parties as
economic growth.                                                                referred to in point 1, point 2, and/or point 3 act as
                                                                                controllers;
                                                                       10. Collective Investment Contract where the Bank and/or
Maximum Limit For Providing Credit                                          parties as referred to in letters a to letter I own 10% (ten
and Providing Large Funds                                                   percent) or more shares in the investment manager of the
                                                                            collective investment contract;
Bank Jatim as a financial intermediation institution has guidance      11. Companies that have financial relationships with Banks
in running its business, one of which is related to providing               and/or parties as referred to in points 1 to 10;
funds to related parties. Bank Jatim in providing funds to             12. The borrower is an individual or non-bank company that
related parties is subject to the Regulation of the Financial               has a financial relationship through providing guarantees
Services Authority of the Republic of Indonesia Number 32/                  to parties as intended in points 1 to 11;
POJK.03/2018 concerning the Maximum Limit for Providing                13. Borrowers who have financial relationships through guarantees
Credit (BMPK) and Provision of Large Funds for Commercial                   provided by parties as referred to in points 1 to 11;
Banks. The Maximum Limit for Providing Credit, hereinafter             14. Other banks that have financial relationships through
abbreviated to BMPK, is the maximum percentage of funds                     providing guarantees to parties as intended in points 1 to
provided against the Bank’s capital for providing funds to                  11 in the event that there is a counter guarantee from the
related parties as well as against the core capital ( tier 1) of the        Bank and/or parties as intended in points 1 to 11 to the
Bank for providing funds to other than related parties.                     other Bank; And




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15. Other companies in which there is an interest in the form of      2. Banks are obliged to determine the classification of
    share ownership of 10% (ten percent) or more, independently          Borrowers in a group of Borrowers in the event that
    or jointly, of the parties as intended in point 5 .                  the Borrower has a controlling relationship with other
                                                                         Borrowers through ownership, management and/or
In accordance with the explanation regarding related parties             financial relationships,
above, the provision of credit to Directors and Commissioners is      3. Ownership, management and/or financial relationships as
also included in provision to Related Parties where the provision        referred to in paragraph (1) include the following criteria:
of credit to Directors and Commissioners must obtain approval            a. The Borrower is the controller of other Borrowers;
from the Board of Commissioners. Funding to Related Parties              b. 1 (one) same party is the controller of several Borrowers;
has been regulated by the Financial Services Authority (OJK)             c. 50% (fifty percent) of members of the Board of Directors
and Company regulations, namely the Bank Jatim Minimum                       and/or members of the Board of Commissioners of the
Credit Limit Policy. The provisions and procedures for granting              Borrower become members of the Board of Directors
credit to the Board of Directors and Board of Commissioners                  and/or members of the Board of Commissioners of
apply the same as granting credit to prospective Bank Jatim                  other Borrowers;
debtors in general and are given fairly and in accordance with           d. The Borrower has a financial relationship with another
market interest ( at arm’s length basis and at market rates ) while          Borrower; and/or
still paying attention to the principle of prudence. Apart from          e. The Borrower has a financial relationship in the form of
that, there are also provisions regarding other parties that are             issuing a guarantee to take over and/or pay off part or
regulated, namely:                                                           all of the other Borrower’s obligations in the event that
1. Banks are prohibited from providing Funds to Related                      the other Borrower fails to fulfill its obligations to the
      Parties which are contrary to general Fund Provision                   Bank.
      procedures.                                                     4. Borrower group classification does not apply to:
2. Banks are prohibited from providing Funds to Related                  a. Fund Provision Facilities provided by the Bank to
      Parties without the approval of the Bank’s Board of                    debtors in general Bank business activities; And
      Commissioners.                                                     b. Provision of guarantees by insurance companies,
3. Banks are prohibited from purchasing low quality assets                   guarantee companies, the Government of the Republic
      from Related Parties.                                                  of Indonesia, and/or governments of other countries.
4. In the event that the quality of Fund Provisions to Related           c. Providing credit to debtors through companies using
      Parties declines to become substandard, doubtful or Loss,              the forwarding method;
      the Bank is obliged to take remedial steps to improve it by:       d. Providing Credit using a core-plasma partnership
      a. Credit repayment no later than 60 (sixty) days after the            pattern with a core company scheme guaranteeing
          decline in the quality of Fund Provisions; and/or                  Credit to the plasma;
      b. Carry out Credit restructuring since the quality of Fund        e. Provincial Government and Regency/City Government
          Provisions has decreased.                                          as well as between each Regency/City Government.
5. In the event that the Bank provides Funds in the form of
      Capital Participation which results in the party in which the   The Fund Provisions that are taken into account in the LLL
      Bank makes the Capital Participation becoming a Related         calculation and Large Fund Provisions are all Fund Provisions
      Party, the Bank is obliged to ensure:                           in the banking book and trading book positions. The carrying
      a. The Fund Provision Plan is set at a maximum of 10%           value used to calculate Provision of Funds is the carrying value
          (ten percent) of Bank Capital;                              of assets plus interest claims that have not been received, if any,
      b. Provision of Funds that will be and have been provided       before deducting the allowance for losses, decreasing the value
          to parties in which the Bank makes Capital Investments      of assets according to accounting standards. The provision of
          after adding the entire portfolio of Provision of Funds     funds is the investment of Bank funds in the form of:
          to related parties is set at a maximum of 10% (ten          a. Placement;
          percent) of the Bank’s Capital; And                         b. derivative transactions ;
      c. Fulfill the provisions as intended in points 1,2 and 3.      c. Securities;
                                                                      d. Securities sold with an agreement to repurchase (repo);
Provision of Funds to Other Than Related                              e. Receivables for securities purchased with an agreement to
Parties                                                                    resell ( reverse repo);
                                                                      f. Acceptance bill;
1. Provision of Funds to 1 (one) Borrower other than a Related        g. Credit;
   Party or 1 (one) Group of Borrowers other than a Related
   Party.




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h.   Equity capital;                                                   5. Provision of export-oriented funds to financial institutions
i.   Temporary capital investment;                                        that meet certain requirements;
j.   administrative account transactions ; and                         6. Provision of funds that obtain guarantees from financial
k.   Other forms of providing funds that can be equated with              institutions that meet certain requirements;
     letters a to j.                                                   7. Part of the Provision of Funds which is guaranteed by
                                                                          certain collateral and meets certain requirements;
Provision of Bank Funds to BUMN for development purposes is            8. Part of Providing Funds to Borrowers who obtain guarantees
set at a maximum of 30% (thirty percent) of Bank Capital.                 from Prime Bank as long as the guarantees provided meet
                                                                          the requirements;
Credit Risk Mitigation Techniques                                      9. Provision of funds which have become a capital reduction
                                                                          factor as intended in the Financial Services Authority
Bank Jatim is obliged to apply the MRK (Credit Risk Mitigation)           Regulation which regulates the obligation to fulfill minimum
technique which meets certain requirements in calculating                 capital.
LLL in the event that Bank Jatim recognizes the existence of
collateral, guarantees, guarantees or credit insurance as a MRK        Legal Lending Limit (LLL) Exceeding
technique in calculating weighted assets according to standard
approach credit risk. The application of the MRK Technique as          Provision of Funds by Banks is categorized as Exceeding LLL
referred to applies in the event that the Borrower and Guarantor       caused by:
or collateral issuer are other than Related Parties.                   1. Decrease Capital or Core Capital ( tier 1) of the Bank;
                                                                       2. Changes in exchange rates;
Certain LLL Treatment                                                  3. Changes in fair value;
                                                                       4. Business mergers, changes in ownership structure and/or
Sometimes LLL calculations can be done, including:                         changes in management structure which cause changes in
1. Provision of Funds to the Central Government;                           Related Parties and/or Borrower groups; and/or
2. Placement with Bank Indonesia; And                                  5. Changes to the provisions for Determining Borrowers in
3. Purchase of Securities issued by the Government of the                  the LLL Exceeding calculation are carried out in accordance
   Republic of Indonesia and/or Bank Indonesia;                            with the provisions for calculating the Provision of Funds
4. Provision of funds that obtain guarantees from the                      and are calculated based on the value recorded on the
   Government of the Republic of Indonesia;                                report date.



Table of Total Provision of Funds to Related Parties and Large Debtors

                                                        Total 2023                                      Total 2023
 No         Provision of Funds         Number of Account               Nominal         Number of Account              Nominal
                                            (NoA)                  (in IDR million)         (NoA)                 (in IDR million)

 1      To Related Parties                       198                   189,479                  155                     107,944

 2      To 50 Core Debtors

          Individual                              50                 8,721,806                   50                   6,771,487

          Group                                     0                          0                  0                          0

          Total Core Debtors                      50                 8,721,806                   50                   6,771,487


Table of Total Provision of Bank Funds to Related Parties

                                                                        2023                                   2022
                       Description                                     Nominal                                Nominal
                                                                   (in IDR million)                       (in IDR million)

 Capital at Report Date                                               11,451,665                              10,610,256

 LLL (10% of Capital) on Report Date                                               0                                   0

 Outstanding Related Parties                                             189,479                                107,944




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                                                                                              MANAGEMENT DISCUSSION AND ANALYSIS
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                                                                             2023                                                2022
                     Description                                            Nominal                                          Nominal
                                                                        (in IDR million)                                 (in IDR million)

 LLL concessions                                                                     0                                                   0

 LLL exceedance                                                                      0                                                   0




Transaction Spot and Derivative
Transactions

Derivative receivables are classified as Financial assets in                 exchange rate at the reporting date or the discounted cash flow
the group measured at fair value through profit or loss, while               method and recorded in the consolidated statement of financial
derivative liabilities are classified as Financial liabilities in the        position. Derivative receivables are presented at the amount of
group measured at fair value through profit or loss. Derivative              unrealized profits from derivative contracts, after deducting the
instruments (including foreign exchange transactions for funding             allowance for value loss. Derivative liabilities are presented at the
and trading purposes) are presented based on their fair value                amount of unrealized losses from derivative contracts.
which is determined based on market prices using the Reuters


Table of Spot Transaction and Derivative Transaction Report
					                                                                                                                                            (in IDR million)


                                                BANK                                                                  BANK

                                                2023                                                                  2022
 No   Transaction
                                                         Receivables and                                                     Receivables and Derivative
                                        Objective                                                     Objective
                    Notional                            Derivative Liabilities    Notional                                           Liabilities
                     Value                                                         Value
                                Trading      Hedging      Bill     Obligation                  Trading     Hedging                Bill           Obligation

A.    RELATED TO EXCHANGE RATES

 1.   Spot              -           -               -      -             -            -           -               -                          -         -

 2.   Forward           -           -               -      -             -            -           -               -                          -         -

 3.   Option                                                                          -           -               -                          -         -
      a. Sell           -           -               -      -             -
      b. Buy

 4.   Future            -           -               -      -             -            -           -               -                          -         -

 5.   Swap              -           -               -      -             -            -           -               -           361,029,411.80           -

 6.   Other             -           -               -      -             -            -           -               -                                    -

B.    RELATED TO INTEREST RATE

 1.   Forward           -           -               -      -             -            -           -               -                          -         -

 2.   Option                                                                          -           -               -                          -         -
      a. Sell           -           -               -      -             -
      b. Buy

 3.   Future            -           -               -      -             -            -           -               -                          -         -

 4.   Swap              -           -               -      -             -            -           -               -                          -         -

 5.   Other             -           -               -      -             -            -           -               -                          -         -

C.    OTHER

      Total             -           -               -      -             -            -           -               -          361,029,411.80            -




                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  2023 Annual Report                       287
Page 290
HUMAN
Capital




      PT Bank Pembangunan Daerah Jawa Timur Tbk
288   2023 Annual Report
Page 291
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   289
Page 292
Human Capital
Management Strategy
In order to realize a superior, independent, competitive, and         The achievement strategies contained in the 4 (four) pillars
professional human capital (HC) management strategy, the              will be used to improve human capital management services
Bank prepares human capital that can view opportunities and           in accordance with the human capital cycle with the following
perform so maximum returns for the Bank will be produced.             key strategies:
In the future, HC must have criteria that are in accordance           1. Satisfaction of the quantity of employees to support
with the vision and mission as well as company culture. HC is              organizational transformation through recruitments
expected to have the required competencies and support the                 of Jatimers Internship Program (JIP), regular, pro-hire,
development of digitalization so that they can execute and                 Officer Development Program (ODP), Jatimers Leadership
master their duties and responsibilities with a commitment to              Development Program (JLDP) Career Program1-4, and
achieve optimal results, while maintaining company culture,                completion of Account Officer (AO) necessity).
ethical values and rules.                                             2. Improvement of the quality of employees to reduce the
                                                                           competency gap required in supporting business process,
Particularly in terms of banking digitalization, accommodating             comprising of:
management plans for implementing credit segmentation and                  a. Business line-focused education.
strengthening Information Technology requires organizational               b. Arrangement of curriculum and education syllabus.
development that is in line with Bank Jatim’s business                     c. Mapping and certification fulfillment.
acceleration. In doing so, in terms of being an adaptive, globally         d. International education standard.
insightful, and change inspiring HC development center, there              e. Graduate scholarship program.
are 4 (four) pillars of key mission of HC, as follows:                3. Refinement of human capital policy is as follows:
• Developing standardization of HC competency.                             a. Incentive and allowances for business unit.
• Improving methods for increasing HC competency.                          b. Profile and competency dictionary.
• Increasing supporting infrastructure for HC development.                 c. Position requirements.
• Advancing HC having Digital competency.                                  d. Education and training.
                                                                           e. Performance management.
                                                                      4. Digitalization to accelerate Human Capital service process.




Human Capital Management
Strategy Policy and Implementation

Recruitment

Policy

In supporting the success of the bank to achieve positive             is to meet the needs of empty positions in organizational structure
performance, it is the result and hard work of all Jatimers people.   by through the process of planning needs properly and correctly.
Support competent resources is very important in the effort to        Recruitment sources used by Bank Jatim to get the best talents
implement a variety of company strategic policies to achieve the      are obtained through internal and external sources. Fulfillment of
company’s vision and mission. In order to get the best talent in      labor needs, BNAK continues to consider the effectiveness and
an effort to improve the quality of resources in the bank, in the     efficiency of labor, so that in 2023 the bank has implemented a
implementation of bank recruitment more selective in carrying out     policy of repositioning and recomposition of labor by prioritizing
the recruitment process. The purpose of implementing recruitment      charging workers in business lines.




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Type of the existing recruitments at Bank Jatim comprises of:                            4. Personality including personal characteristics, such as age,
1. Recruitment of Regular Employee.                                                         sex, and marital status depending on the available vacancy
2. Recruitment of Experienced Employee                                                      formation.
   (Pro Hire/ Multilevel Entry).                                                         5. Competency assessed through assessment process in
3. Crash Program.                                                                           accordance with the Bank’s competency dictionary.
4. Officer Development Program (ODP).
5. Recruitment of Disabled Employees.                                                    The recruitment process can be independently performed by
                                                                                         the Bank or in collaboration with consulting services agencies/
The recruitment sources used by Bank Jatim are obtained                                  institutions in the human capital sector or Head Hunters services,
through internal and external sources. Internal sources are                              both online and offline or using employee provider media
individuals who have worked at the Bank, either with the status                          platforms. Accordingly, an open recruitment is conducted
of permanent Bank employees or with the status of outsourced                             to screen incoming applications and select applicants who
workers or interns. Meanwhile, external sources are those                                satisfy the required qualifications in order to be included in
who do not or have not worked at the Bank and are obtained                               the selection process. Applications included in the verification
by recruiting employees with special achievements that will                              process can be consulted with consulting services agencies/
support the Bank’s corporate image.                                                      institutions in the human capital sector or Head Hunters service
                                                                                         and matched with previously determined qualifications. After
Generally, the criteria in the selection process include:                                verification, applicants who satisfy the qualifications are invited
1. Undergraduate/Graduate criteria for structural position with                          for selection.
   specific expertise. Undergraduate (S1) is for administrative
   staff with career prospects and Senior High School/                                   The selection process of prospective employees follows the
   Vocational School is for non-administrative staff.                                    following standard consisting of several stages, as follows:
2. Work experience supporting value added in the selection                               1. Clearance test.
   process.                                                                              2. Product knowledge Bank test.
3. Health condition with following criteria, such as physically                          3. Psycho-test assessment and/or competency-based interview.
   and mentally health and free of drugs.                                                4. User interview.
                                                                                         5. Medical test



The mechanism of acceptance decision-making uses a multiple hardless model approach or knockout system. In addition, admissions
can also use other systems according to needs and within the authority of Vice President of Human Capital and consider the
applicant’s individual loan collectability status, such as:


                           failed to fulfill general qualifications
                                                                                                            Completeness of Application


                                                                                                                                 passed

                            failed to fulfill job disc & job spec qualifications
                                                                                                                   Clearance Test


                                                                                                                                 passed
                                      failed to fulfill a general knowledge test
                                                and a psychology test
                                                                                                     General knowledge and psychological tests


                                                    failed to fulfill a physical and                                             passed
                                                            medical tests
                                                        and a psychology test
                                                                                                             physical and medical tests


                                                              failed to convince the                                             passed
                                                               interviewer / did not
                                                              fulfill job expectations
                                                                                                                     Interview


                                                                                                                                 passed


                      Applicant Rejected                                                                        Applicants Accepted




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                                                                                                                            2023 Annual Report        291
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After performing a series of selection and acceptance processes, employment is executed with an employment contract as a probation
period so that the status is a specific work agreement (TKIK). The employment contract contains the rights and obligations of the
Bank and the concerned employee and binding on each party until the employment contract ends or a decision on a permanent
employee appointment is issued.


The authority of employment contract signatory is regulated as follows:


        Entry Level Position                                     Signatory Officials of Employment Contract

 SEVP, ESELON 1 -2                      Director subordinating function of Human Capital/Director of Employment Division.

 ESELON 3                               SEVP subordinating Human Capital

 ESELON 4 DAN PELAKSANA                 Vice President of Human Capital Division




The term of the employment contract is adjusted to needs and             and ninety five) new employees with competencies in the fields
can be extended as long as it does not violate with statutory. Any       of credit admin, general banking, funding officer, information
employee who has signed an employment contract is required               technology, and Officer Development Program (ODP).
to participate in and pass all education and training programs
prepared by the Bank. Also, any employee who does not satisfy
the requirements of passing the education and training program,          Competency Development
the employment contract will be terminated. Mainly for the
recruitment of experienced employees, they can be assigned               Policy
directly in work units as required, while education and training
programs are conducted in parallel between working hours.                Concerning the improvement of Bank Jatim’s human capital
                                                                         competency, the Human Capital Division has regulated
For the mechanism of regular employees appointment, employees            Standard Operating Procedures of Education and Training. The
who have signed and had the TKIK status will be subsequently             provisions regulate the following issues, as follows:
evaluated for performance evaluation during 6 (six) months as a          1. Public training and education.
condition for appointment of prospective employees. Prospective          2. In-house training and education.
employees will also perform a performance evaluation for 6               3. Overseas non-degree education and training.
(six) months before appointed as permanent employees. The                4. Implementation of certification and profession certification
appointment mechanism for non-regular employees is separately                maintenance program.
regulated and adjusted to the occupied position.                         5. Archiving evaluation and procedures of education and
                                                                             training implementation.


Implementation of Recruitment                                            Additionally, the Human Capital Division has drafted Learning
                                                                         Syllabus based on Training Need Analysis that will be performed
In 2023, 42 employees will resign. Meanwhile, for recruitment,           within the current year.
throughout 2023 Bank Jatim has recruited 295 (two hundred



Competency Development Implementation

Table of Competency Development for Manager Level (Level Staff) in 2023

                                   Number of
 No.     Competency Area                                                                    Objective
                                   Participants

  1.    Lending                        3.090        Increasing the understanding and competence of Bank Jatim employees in credit issues.

                                                    Improving competency section in the corporate planning sector, understanding of main tasks
  2.    Planning                         141
                                                    and sections in an organizational structure at Bank Jatim.

                                                    Developing compliance culture by refreshment of the applicable provisions, both regulations
  3.    Compliance                     1.389
                                                    from the regulator and Bank Jatim regulations.

                                                    Increasing competency section in the marketing sector for Bank Jatim frontliners and account
  4.    Marketing                        406
                                                    officers.

  5.    Human Capital                    744        Refreshment of Bank Jatim’s internal regulations and improving corporate culture.




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                                 Number of
 No.     Competency Area                                                                      Objective
                                 Participants

  6.    Audit Intern                  149       Developing competency in the auditing sector and understanding of Anti-Fraud Strategy.

                                                Increasing competency in the marketing sector for frontliners in increasing their ability to
  7.    Funding                      2.005
                                                collect public funds.

                                                Improving competency in the information technology sector and providing information
  8.    Information Technology        191
                                                about IT Awareness.

  9.    Legal                         238       Increasing competency in the legal sector in Bank Jatim's operational activities.

                                                Developing competency in the treasury sector and providing telegraphic transfer procedures
 10.    Treasury                      583
                                                to Bank Jatim frontliners.

                                                Increasing competency in the banking risk management and target market outreach sectors
 11.    Risk Management               390
                                                to Bank Jatim account officers.

                                                Providing new employees with knowledge of the managerial structure and management of
  12.   Corporate Secretary           135
                                                Bank Jatim.

        Credit Rescue and                       Improving knowledge of credit rescue and settlement for echelon 3 and echelon 4 officials.
 13.                                  234
        Settlement

                                                Increasing competency section in the primary and section tasks in Bank operational support
 14.    Operation (Supporting)         11
                                                activities.

 15.    Operation (Business)         1.007      Developing competency in the primary and section tasks in Bank operational activities.

                                                Improving competency in the accounting sector and socializing e-Stamp, taxes, and other
 16.    Accounting                    340
                                                provisions to accounting officers.

 17.    Business Risk                  23       Increasing competency in the business risk sector for Business Risk Division officers.

 18.    Sharia Business Unit           34       Increasing sharia banking competency.

                                                Developing competency in the general works in terms of procedures for determining
 19.    General                        20
                                                estimated prices when conducting the goods/services procurement process.


Table of Competency Development for Echelon 4 Level (Level Supervisor) in 2023

                                 Number of
 No.     Competency Area                                                                     Objective
                                 Participants

                                                Improving competency section in the human capital sector, mainly regarding corporate value
  1.    Human Capital                770
                                                internalization, culture transformation, leadership and problem solving.

                                                Increasing competency section in the lending sector, especially analysis of credit provision
  2.    Lending                      955        in the agro-industrial sector, green portfolio to support sustainable finance, sectoral credit
                                                analysis and credit segmentation.

                                                Developing competency section in the compliance sector, particularly APU-PPT, anti-
  3.    Compliance                   547
                                                gratification, and compliance culture.

                                                Increasing competency section in the marketing sector, especially business model canvas,
  4.    Marketing                    260
                                                effective marketing management, strategic selling skills, marketing and selling.

  5.    Audit Intern                 140        Improving competency section in the audit sector, specifically critical points and anti-fraud strategies.

                                                Developing competency section in the funds collecting and payment systems sectors and
  6.    Funding                      243
                                                managing Rupiah currency.

        Information                             Increasing competency section in the information technology sector, especially regarding
  7.                                 148
        Technology                              machine learning, data analytics and IT awareness.

  8.    Legal                        287        Improving competency section in the legal sector, particularly banking and credit laws.

                                                Developing competency section in the treasury sector, mainly regarding trade finance and
  9.    Treasury                     508
                                                banknotes.

                                                Increasing competency section in the risk management sector with certification and the
  10.   Risk Management             1027
                                                refreshment of banking risk management programs.

                                                Improving competency section in the corporate secretary sector, mainly regarding increasing
  11.   Corporate Secretary            3
                                                ability in integrating CSR and investor relations units.

  12.   Planning                     153        Increasing competency section in the planning and socialization regarding grand structural design.

        Credit Rescue                           Developing competency section in the credit rescue and settlement sector, especially
  13.                                163
        Settlement                              regarding simple lawsuits and execution of problem loans.




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                                                                                                              2023 Annual Report                   293
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                              Number of
 No.    Competency Area                                                                Objective
                              Participants

                                              Increasing competency section in the general works sector in terms of procedures for
 14.   General                      15
                                              determining estimated prices when conducting the goods/services procurement process.

                                              Developing competency section in the operation sector, especially regarding service
 15.   Operation                   170
                                              standards and credit administration.

                                              Increasing competency section in the accounting sector, mainly regarding taxes, e-stamps
 16.   Accounting                   35
                                              and integration of metadata-based banking reporting.

                                              Improving competency section in the sharia business sector, especially basic education in
 17.   Sharia Business Unit        317
                                              sharia banking and pawn law.

                                              Developing competency section in the auditing sector, particularly early warning signals and
 18.   Business Risk                18
                                              processing investment business permits.

       Operation                              Increasing competency section in the operation sector, especially regarding banknotes, ATM,
 19.                               257
       (Supporting)                           EDC and EPTD.


Table of Competency Development for Echelon 3 Level (Level Pimcapem) in 2023

                              Number of
 No.   Competency Area                                                                 Objective
                              Participants

                                             Developing competency section in the accounting sector, especially regarding taxes and
  1.   Accounting                   3
                                             statements of financial accounting standards.

                                             Increasing competency section in the internal audit sector, mainly regarding internal auditor
  2.   Audit Intern                 8
                                             professional certification.

                                             Improving competency in the funding sector, especially regarding payment systems and
  3.   Funding                     17
                                             management of Rupiah and foreign exchange.

  4.   Legal                      150        Developing competency section in the legal sector, mainly regarding credit and bankruptcy law.

                                             Improving competency section in the human capital sector, mainly regarding culture
  5.   Human Capital              248        transformation with growth mindset, corporate value internalization and competency-based
                                             interviews.

                                             Increasing competency section in the compliance sector, particularly regarding anti-money
  6.   Compliance                  39
                                             laundering and preventing terrorism financing.

                                             Developing competency section in the lending sector, especially regarding financial skills and
  7.   Lending                    165
                                             credit analysis, supply chain financing and sectoral credit analysis.

                                             Improving competency section in the risk management sector, especially certification and
  8.   Risk Management            362
                                             refreshment programs for banking risk management certification.

                                             Increasing competency section in the marketing sector, particularly regarding effective
  9.   Marketing                    1
                                             marketing management.

                                             Developing competency in the operation sector, especially regarding business administration
 10.   Operation                    2
                                             and legal.

       Operation                             Improving competency section in the operational support sector, mainly regarding strategy
 11.                                1
       (Supporting)                          and implementation of strengthening the banking industry.

       Credit Settlement                     Increasing competency section in the credit rescue and settlement sector, mainly problem loans.
 12.                                1
       Rescue

                                             Developing competency section in the planning sector, particularly regarding workload
 13.   Planning                     2
                                             analysis and organization development.

                                             Increasing competency section in the auditing sector, mainly early warning signals and
 14.   Bussines Risk               10
                                             processing investment business permits.

                                             Developing competency section in the information technology sector, particularly regarding
       Information
 15.                               10        enterprise resource planning, data science specialist and information technology infrastructure
       Technology
                                             library.

                                             Increasing competency section in the treasury sector, especially regarding banknotes,
 16.   Treasury                   177
                                             telegraphic transfers and trade finance.

                                             Improving competency section in the general affairs sector, mainly regarding preparing self-
 17.   General                      1
                                             estimating prices.

 18.   Sharia Business              2        Increasing competency section in the sharia business sector, especially sharia banking education.




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Table of Competency Development for Echelon 2 Level (Level Branch Leader) in 2023

                              Number of
 No.    Competency Area                                                                   Objective
                              Participants

  1.   Accounting                   1         Improving competency section in the accounting sector, especially regarding vet A and B.

  2.   Audit Intern                 2         Increasing competency section in the internal audit, especially regarding audit certification level 3.

                                              Developing competency section in the corporate secretary sector, especially regarding
  3.   Corporate Secretary          2
                                              investor relations programs and integrated excellent CSR.

                                              Increasing competency section in the funding sector, especially regarding fund administration,
  4.   Funding                     71
                                              payment systems and management of rupiah and foreign currency.

                                              Improving competency in the legal sector, especially regarding the legal aspects of land
  5.   Legal                        3
                                              rights, corporate law and legal contract drafting.

                                              Increasing competency section in the human capital sector, specifically regarding corporate
  6.   Human Capital              157         value internalization, culture transformation, branch manager programs and competency-
                                              based interviews.

                                              Developing competency section in the lending sector, mainly regarding credit analysis in the
  7.   Lending                      6         agribusiness sector, credit analysis in the economic sector, and international standard banking
                                              procedure 821.

                                              Advancing competency in the risk management sector, particularly regarding the
  8.   Risk Management            112         implementation of Basel III, stress testing on market risk and liquidity risk, and the risk
                                              management certification maintenance program.

                                              Increasing competency section in the operations, mainly regarding business administration
  9.   Operation                    2
                                              and legal issues.

                                              Improving competency section in the business operations, especially regarding asset liability
 10.   Operation (Business)         1
                                              management.

                                              Increasing competency section in the supporting operational sector, especially regarding
       Operation
 11.                                2         payment systems and rupiah currency management, payment sub-sector, strategy and
       (Supporting)
                                              implementation of strengthening the banking industry.

       Credit Settlement                      Improving competency section in the credit rescue and settlement, particularly regarding
 12.                                7
       Rescue                                 credit rescue and settlement programs.

                                              Developing competency section in the auditing, particularly early warning signals and
 13.   Business Risk                4
                                              processing investment business permits.

       Information                            Increasing competency section in the information technology sector, mainly regarding
 14.                                2
       Technology                             enterprise resource planning and managing ISO standard of IT services.

                                              Increasing competency section in the treasury sector, especially regarding trade finance, yield
 15.   Treasury                    59
                                              curve analysis, DNDF transactions, OIS and IRS.

 16.   General                      1         Improving competency section in general affairs, especially regarding self-estimating prices.

                                    1         Increasing competency section in the sharia business sector, mainly regarding sharia banking
 17.   Sharia Business
                                              education.


Table of Competency Development for Echelon 1 Level (Level VP) in 2023

                               Number of
 No.    Competency area                                                                    Objective
                               Participants

                                               Improving competency in accounting section, particularly taxes and statement of financial
  1.   Accounting                    2
                                               accounting standard in accordance with the newest IFRS.

                                               Increasing competency in intern audit, specifically education program for head of intern
  2.   Audit Intern                  1
                                               supervisory system.

                                               Developing competency in corporate secretary section, mainly education program for
  3.   Corporate Secretary           1
                                               leader of corporate secretary.

                                               Increasing competency in human capital section, particularly culture transformation with
  4.   Human Capital                50
                                               growth mindset and corporate value internalization.

  5.   Lending                       1         Advancing competency in lending section, mainly agro-industrial credit.

                                               Developing competency in risk management, especially implementation of Basel III and the
  6.   Risk Management              30
                                               refreshment program of banking risk management certification.




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                                                                                                           2023 Annual Report                 295
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                                    Number of
 No.      Competency area                                                                   Objective
                                    Participants

        Credit Settlement                          Improving competency in credit rescue and settlement, mainly non-performing loans.
  7.                                     1
        Rescue

  8.    Business Risk                    2         Increasing audit section, mainly early warning signal and administration of investment permits.

  9.    Information Technology           1         Developing competency in information technology, specifically data science and visualization.

  10.   Treasury                         3         Increasing treasury section, particularly asset liability management and trade finance.

                                                   Improving competency in general affairs, mainly the improvement of domestic products
  11.   General                          1
                                                   utilization program.



Table of Competency Development for Directors/Commissioners Level in 2023

                                    Number of
 No.      Competency area                                                                   Objective
                                    Participants

                                                   Advancing competency in human capital section, particularly culture transformation with
  1.    Human Capital                    12
                                                   growth mindset, corporate value internalization.

  2.    Compliance                       12        Increasing competency in compliance section, especially good corporate governance.

                                                   Developing competency in risk management section, particularly the maintenance of risk
  3.    Risk Management                   7
                                                   management certification.

  4.    Sharia Business                   1        Improving competency in sharia business unit, mainly executive sharia banking.



Evaluation of Competency Development Implementation

In 2023, Bank Jatim had provided education to 4,999 employees out of 5,242 employees or conducted training to develop
competency for 95.38% of employees. This could be completed with the assistance of e-Learning technology and easily and flexibly
accessible contents form both place and time. In terms of composition, 60.5% of educational programs that had been implemented
was supporting business competencies and 39.5% was additional competency of supporting business. Competency development
activities recorded that 1,576 employees had participate in the certification program and 4,913 employees had joined the non-
certification competency improvement program. Based on the type of competency development activity, 468 employees had
participated in public training and 4,970 employees had followed in-house training.


Competency Development Costs

In 2023, Bank Jatim carried out competency development for employees by involving 4,999 employees. The costs incurred by Bank
Jatim in 2023 in the context of competency development reached IDR38,865,797,580, an increase from the costs incurred in 2022
which reached IDR23,834,986,794.


Table of Competency Development Costs for 2022-2023

                          Description                                       2023                                         2022

 Total Cost (IDR)                                                     Rp38.865.797.580                              Rp23.834.986.794




Career Development

Policy

The Career Development implemented by Bank Jatim aims to prepare, develop, and maintain employees so that they can display their
best performance both in the present and in the future. Currently, the Bank has a tiered career development program or promotion
program for employees from first level officials to executive officials, which is implemented to satisfy the needs of vacant positions.
The basis for Career Development consists of two aspects, such as competency, which is measured through the assessment process




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and employee performance. Competency measurements are                       Remuneration and
carried out periodically to update the latest capabilities of each          Long Term Compensation
employee at all levels of position.
                                                                            The Competency-Based Remuneration System used by Bank
Implementation of Career Development                                        Jatim was a Grading System where remuneration would be
                                                                            divided according to the grade of each position. The grading of
The career program is opened according to the projected                     each position was carried out in accordance with the demands
need for a vacant position with the formation determination                 of the duties and responsibilities of each position. The grading
that has been issued by the unit responsible for Organizational             level of each position was determined by means of job
Structure and Networks. In 2023, there are 140 employees who                evaluation based on a job profile consisting of job requirements
have carried out career development programs.                               and job descriptions. The granding of each position was also
                                                                            followed by the determination of the remuneration.


Performance Assessment                                                      The Human Capital Division collaborated with external
                                                                            parties in determining the grade of each position, to be more
To ensure that every employee can optimally contribute                      independent in conducting assessments. Competency based
to achieve Bank Performance, the Bank has an integrated                     remuneration had to consider in a balanced way between the
performance management system. In terms of ensuring the                     benefits provided and the output, namely the performance
achievement of employee performance that can support                        generated by employees including sustainability performance.
the achievement of company targets, the company targets                     Competency-based remuneration had to consider 3 (three)
breaks down to each work unit to the individual level, so                   factors, namely individual, position or position and performance.
that the company performance will be in line with individual                The grading system adopted by Bank Jatim adopted 2 (two)
employee performance. The Bank is currently implementing a                  factors, namely individual competence known as personal
performance management system using the Balance Scorecard                   grade and position / position known as job grade. The grading
method. In assessing individual employee performance, the                   and remuneration system was expected to be able to improve
KPI Scorecard application is used to facilitate the monitoring              employee performance so that the company’s performance can
and reporting process of the achievements of employees’ Key                 eventually be achieved. The grading system currently in effect
Performance Indicator (KPI).                                                at Bank Jatim consisted of:
                                                                            a. Echelon Rankings
                                                                            b. Personal Grade
                                                                            c. Job Grade



The following is the structure of the grading system in Bank Jatim:


                                                     Personal
         Corporate Title              Echelon                                                 Position                         Job Grade
                                                      Grade

 Senior Executive Vice President                       18            SEVP                                                      G2
 (SEVP)
                                                                                                                               G1

 Vice President (VP)                                   17            • Vice President                                          F3
                                                                     • Main Branch Leader
                                                       16                                                                      F2
                                    Echelon 1
                                                       15                                                                      F1

                                                       14

 Assistance Vice President (AVP)                       14            •   Class 1,2,3 Covenant Branch Leader                    E3
                                                                     •   Main Branch Manager
                                                       13            •   Sharia Leader                                         E2

                                    Echelon 2          12            •   Unit Leader                                           E1
                                                                     •   Assistance Vice President




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                                                   Personal
         Corporate Title             Echelon                                             Position                       Job Grade
                                                    Grade

 Manager (MGR)                                       11         •   Operations Leader                                  D3
                                                                •   Business Leader
                                                     10         •   Credit Leader                                      D2
                                  Echelon 3
                                                      9         •   Sub Branch Manager                                 D1
                                                                •   Senior Auditor
                                                                •   Senior Officer

 Assistant Manager (AMGR)                             8         •   Supervisor                                         C3
                                                                •   Functional Office Leader
                                  Echelon 4           7         •   Auditor                                            C2

                                                      6         •   Officer                                            C1

                                      Non          Personal
         Corporate Title                                                                 Position                       Job Grade
                                     Echelon        Grade

 Assistant (ASST)                                     5         •   Staff                                              B3
                                                                •   Junior Officer
                                                      4         •   Junior Auditor                                     B2
                                  Executor
                                                      3         •   Funding Officer                                    B1
                                                                •   Account Officer
                                                      2         •   Non Career Employees

 Basic Employees                                      1         • Security guard                                       A2
                                  Basic
                                                                • Driver
                                  Employees                                                                            A1
                                                                • Office Boy



As the basis for the preparation of governance guidelines for          4. Financial Services Authority Circular Letter Number 40/
providing good remuneration for Management, the Bank put                  SEOJK.03/2016 dated September 26, 2016 concerning
forward the principles of Good Corporate Governance and                   Implementation of Governance in Providing Remuneration
referred to the prevailing laws and regulations, including:               for Commercial Banks.
1. Law Number 40 of 2007 dated August 16, 2007 concerning
    Limited Liability Companies;                                       Basically, remuneration was divided into 2 (two) fixed
2. Financial Services Authority Regulation Number 17/                  remunerations and variable remunerations. As an
    POJK.04/2022 dated September 14, 2023 concerning                   implementation of the Financial Services Authority Regulation,
    Implementation of Governance in Providing Remuneration             Bank Jatim determined the parties to be Material Risk Takers,
    for Commercial Banks;                                              consisting of:
3. Financial Services Authority Regulation Number 45/                  - President Director
    POJK.03/2015 dated December 23, 2015 concerning                    - Field Director under the President Director
    Implementation of Governance in Providing Remuneration             - Board of Commissioners
    for Commercial Banks;



The percentage of variable remuneration for Bank Managers that is not included in the Material Risk Taker is as follows:




         *) BONUS (100%)                                    100% (given)                                       96% (Cash)




                                                                                                               4% (Share)




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                      HUMAN
                                                                                                                      CAPITAL




Pension Program

Bank Jatim enroll all of its employees into a pension program, both those that are mandatory by law and those that are managed
by the Employee Pension Fund. In 2023, there will be 48 employees who have implemented the pension program. The pension
programs provided by Bank Jatim include:



1. Pension Security from the Social Security Organizing Body (BP)   3. Defined Contribution Pension Program (PPIP)
   Because it is mandatory, all employees must be registered           This pension program is managed by the BRI Financial
   in all BP Jamsostek programs starting from Old Age                  Institution Pension Fund (DPLK). All permanent employees
   Security (JHT), Death Security (JKM), Work Accident                 are included in this pension program, where all Contribution
   Benefits (JKK) and Pension Security (JP). The amount of the         will be borne by the employer amounting to 10% of the
   Pension Security (JP) program contribution is calculated            employee’s basic salary/personal grade.
   at 3%, consisting of 2% of company expenses and 1% of
   employee expenses from basic salary/personal grade.
2. Defined Benefit Pension Program (PPMP)
   This pension program is managed by the East Java Regional
   Development Bank Employee Pension Fund. Program
   participants are all employees who have been appointed
   as permanent employees before August 25, 2012. The
   employer’s contribution is 21.70%, while the employee
   contribution is 5% of Basic Pension Income (PhDP).




Employee
Engagement Survey

In terms of refining the implementation of strategies and policies as a means of employees in addressing their aspiration, the
company conducted a survey of employee engagement measurement. The survey of employee engagement was beneficial for
either employees or the company. The given benefits are as follows:


Benefits of Employee Engagement for employees
1. As a forum for employee aspirations for the company.             3. Creating strong relationships with each employee. This
   Employees can provide criticism to the company by filling           relationship will also make employees focus on the desired
   Employee Engagement. Then, this information will become             achievement, build solid teamwork, and do not forget to
   input for the company in making policies.                           express gratitude and appreciation for the achievements
2. Creating new enthusiasm for employees to go to the office.          between divisions.
   Employees will always think positively in doing their job        4. Eliminating saturated and thoughts from every problem
   and provide ideas for the development of the team and               faced by employees in their lives. This approach can make
   the company.                                                        employees enthusiastic again as performing work at the
                                                                       company.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report     299
Page 302
Benefits of Employee Engagement for the Company                   2. Potentially Engaged (High Commitment but Low
1. Companies better understand the need for employee                 Engagement)
   competency improvement so that the level of engagement            Employees, at this level, are among the important
   between employees and the company increases.                      contributors in the organization, but they cannot find
2. The company will have employees with positive attitudes           personal attachment and success within the organization.
   and behaviors. With a positive attitude, of course, it will       They will tend to reduce performance if they still do not get
   lead to better company growth than the previous year.             satisfaction from the organization.
3. The company will have employees with positive attitudes        3. Passively Engaged (High Engagement but Low
   and behaviors. With a positive attitude, of course, it will       Commitment)
   lead to better company growth than the previous year.             Employees, at this level, are people who feel comfortable
4. Employee Engagement created more commitment from                  with the company’s conditions. They can be new people
   employees to the company. The number of absences due              or get new roles. They have not contributed fully to the
   to sick employees was reduced, reducing the number of             company’s success or even hidden behind the hard work of
   accidents in the work process, and increasing productivity        others.
   throughout the year.                                           4. Dissengaged (Low Commitment and Engagement)
5. Employee Engagement created more commitment from                  Employees, at this level, are a group of people who are
   employees to the company. The number of absences due              most disconnected from the organization, often they feel
   to sick employees was reduced, reducing the number of             underutilized, and do not get what they need from work.
   accidents in the work process, and increasing productivity        They can transmit negative thoughts to other employees.
   throughout the year.
                                                                  The number of participating respondents was 4,495 employees,
The Engagement Index showed the level of satisfaction             and the percentage of engaged employees was 83,1%.
and commitment of Bank Jatim employees as measured by
the average rating on a scale of 1-4. Meanwhile Employee
Engagement is divided into 4 (four) levels, namely:
1. Actively Engaged (High Commitment and Engagemen)
    Employees, at this level, have the same vision and mission
    as the company, are loyal, and psychologically committed
    to the company. They tend to contribute consistently and
    productively to the company's success.




Human Capital
Information System

Along with the times, the development of information              In order to ease the Human Capital Division to obtain fast,
technology can make it easier for humans to do activities,        precise, effective and controlled information that is adjusted
view news and search for various information circulating in       to developments and to simplify employees to achieve
cyberspace. Technological developments make it easier for all     information, application for compensation and benefits, and
human activities in the future. The Human Capital Division has    accommodate employee aspirations through the suggestion
launched a Digital product, namely the Human Capital Portal.      box, the Human Capital Division launches a Human Capital
The Human Capital Portal is a website-based digital information   program online-based application (web and mobile apps),
media that is useful for ensuring communication and providing     referred to as E-Human Capital/e-HC. This application is a form
services to employees, including accommodating information,       of digitalization in supporting the Green Banking program and
news, training agendas, activity information, polls, and          reducing paper use.
gateways to other applications.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
300    2023 Annual Report
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                                                                                                                            HUMAN
                                                                                                                            CAPITAL




                                      Human Capital Information System Enabling Human Capital
                                                management in the Knowledge Era




             Employee Self Services                          Feature Application                         Measurement System


             E-Pribadiku                                                                                Performance Measurement
                                                         Payroll System and Integrated
             • Personal Data                                                                                    Automation
             • Family Data                                         Income Tax
                                                                                                        (Performance Measurement)
             • Grade and Position History
             • Training Data
             • Certification Data
             • Assessment Data
             • Remuneration Data (Salaries,
               Allowances,                                     Online Attendance                       Service Culture Measurement
             • Deductions etc.)                                                                                  Automation
             • Leave, Permit, Sick Data                                                                 (Service Level Measurement)
                                                                                                              (In development)

             E-Health                                      SPD (Official Travel) Online
             •   hospitalization / parturition
             •   Out-patient
             •   Glasses Replacement
             •   Medical                                            Overtime



             E-Care
                                                     •   Out-patient
             •   Announcement
                                                     •   In-hospitalized & Maternity
             •   Discussion
                                                     •   Glass                                        Work Load Analysis Automation
             •   Consultation
                                                     •   Medical Checkup                                     (In development)
             •   Ballot Box
                                                     •   Sick Leave
             •   Employee Engagement


                                                     Car Allowance Program
             E-Dukasi
             •   Training catalogue
                                                     News:
             •   E-Training
             •   E-Assignment                        • Division Note/Letter
                                                     • National holiday                               E-Learning (Assesment Product)
             •   E-Quiz
                                                     • Activity News                                     Knowledge Management
             •   E-Quesioner
                                                     • Obituary
                                                     • Training Information
                                                     • Collaboration Agreement with Health
                                                       Services




E-Human Capital Mobile

The E-Human Capital Mobile application was launched in 2021, this application is intended for Bank Jatim workers which aims to make
it easier for employees to obtain information, apply for compensation and benefits as well as accommodate workers’ aspirations via the
ballot box. In 2023, there will be additional menus including:
1. Block Leave
2. Scan Barcodes for the medication administration process at the Hospital.


This application is a form of digitalization, thereby reducing paper use and supporting the Green Banking program.




                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                              2023 Annual Report      301
Page 304
Culture
Internalization
In confirming culture and transformation, Bank Jatim has a               agent of change and role model for the work unit. The
Corporate Culture Event program, which aims to support                   implementation of this program will be carried out in
implementation, internalization, and transformation within               Quarter I-II.
the scope of employees so it creates a sense of belonging to        f.   Coaching and Mentoring Program for the Culture Team as
the Bank. The strengthening that can support every program               well as monitoring and evaluation of the implementation
performed by Corporate Culture, including:                               of the Corporate Culture work program in all work units
a. Culture Campaign is an organized program performed by                 (Head Office and Branches) aim to ensure that culture
    all Culture Teams (Culture Leader, Culture Booster, Culture          implementation and transformation can be achieved in
    Agent) to address EXPRESI values, such as Excellence,                accordance with management directions. Meanwhile, in
    Professional, Integrity, Synergy, Innovation to employees.           implementing this program, socialization is also performed
    This program is an internalization measure of Bank Jatim’s           regarding the provisions/rules and company culture work
    culture and transformation program. In implementing this             programs to the culture team. The implementation of this
    campaign, different materials are available monthly.                 program will be executed out every quarter.
b. In-House Training for all culture teams in Branch Offices
    and Head Offices aims to improve the abilities/soft skills      Further, in the Corporate Culture Event, there is a Reinforcement
    of employees at Bank Jatim and increase engagement              of Corporate Culture program that will be conducted by the
    with the company. This is in line with the Human Capital        Corporate Culture Group to continuously affirm the culture
    transformation to improve the quality of employees. The         team in implementing corporate culture as follows:
    material in the in-house training focuses on improving the      a. Up-skilling for the Corporate Culture team includes
    ability of becoming the best leader in the future and cannot        procurement of content creator/digital marketing training
    be separated from EXPRESI values as company culture. The            aimed at delivering Bank Jatim’s programs, products, and
    implementation of this program will be conducted on a               digital financial services at Bank Jatim via digital media.
    quarterly basis.                                                    This strengthening is also to build and prepare a talent
c. Providing communication space between employees and                  pool/talent management (master of ceremonies/MC),
    Top Management through the Greeting and Sharing with                which will assist corporate activities of Bank Jatim, such as
    Board of Directors (BOD) program. This space is a medium            formal activities (GMS, EGMS, Position Handover (Sertijab),
    for delivering the company’s work program (culture and              Bintal, and other official activities) and informal activities.
    transformation) to employees and an opportunity for                 Also, it will support the creation of content or publication
    employees to address ideas/suggestions for company                  media owned by Bank Jatim, such as Instagram, podcasts
    development so it reduces barriers or gaps between                  (YouTube), leaders talk programs, and other corporate
    employees and management. This Greeting and Sharing                 activities. The implementation of this program will be
    program will present speaker or motivator to provide a              performed in Quarter I-II.
    booster to the culture teams so that they are expected to       b. Benchmark program to find out, assess the implemented
    continuously have the same spirit as influencer in delivering       transformation, and compare the implementation
    the transformation and internalization of company culture.          of Bank Jatim’s culture with other companies (BPDs
    The implementation of this program will be carried out on           throughout Indonesia, BUMN, Private Companies) so that
    a quarterly basis.                                                  evaluation and finding the right measures to improve the
d. The annual activity for Bank Jatim’s Culture Teams is                transformation program and internalization of corporate
    the EXPRESI Festival (EXPRESTIVAL). This activity is an             culture can be performed. The implementation of this
    appreciation of the Culture Teams for their dedication as           program will be implemented in Quarter II.
    an influencer, who continuously deliver the transformation      c. Performing On-site Monitoring to work units aims to ensure
    and internalization of company culture in the work unit.            the implementation of company culture program performed
    The implementation of this program will be performed in             by the culture team using assessment instrument, such as
    Quarter IV.                                                         questionnaires, interviews and observations conducted
e. Cultural Identity is a program to provide identity to the            randomly on employees.
    Culture Team having the purpose of the easily recognizable
    figures of agent of change. In addition, this identity is to
    provide an understanding of its presence and role as an




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                                                                      HUMAN
                                                                                                                                                                      CAPITAL




Human Capital
Management Structure
A reliable, loyal and competent Human Resources is the main                                    Human Capital at Bank Jatim is under the President Director
capital of Bank Jatim to achieve the vision, mission and business                              and lead by Human Capital Division Head. This division
success. Bank Jatim always prioritizes development HR both                                     consists of the Human Capital Services Sub Division and the
individuals and teams and the development of Corporate                                         Human Capital Development Sub Division which have roles
Culture as a business strategy in order to maintain the best                                   in service operations, policy formulation and Human Capital
performance in the banking services business.                                                  development so that it is expected to developt employees who
                                                                                               are competent and have high corporate cultural values.




                                                                                   Budi Sumarsono
                                                                             SEVP Corporate Transformation




                                                                                    Slamet Purwanto
                                                                              Vice President Human Capital




                                                                      Assistant Vice
                 Assistant Vice President                                                             Assistant Vice President (AVP)                   Assistant Vice President (AVP)
                                                                President (AVP) Industrial
                   (AVP) Operasional                                                                  Human Capital Development                               Learning Center
                                                                  Relations and HCBP




                                                                                                                                                                            Senior
                                 Senior            Senior               Senior                           Senior
                                                                                                                                                                            Officer
                               Recruitment       Recruitment         Officer Bisnis                  Officer Career
                                                                                                                                                                           Learning
                                 Officer           Officer              Partner                      Management
                                                                                                                                                                            Design




                                                                                                                                        Learning          Learning
                 DAPEG                                                                 Performance     Career            Officer
Remuneration                                                                                                                             Center            Center
                and HCIS                                                               Management    Management         Corporate
 Supervisor                                                                                                                              Quality         Operations
                Supervisor                                                              Supervisor     Officer           Culture
                                                                                                                                       Control Staff     Supervisor




                                                                         Junior           Junior        Junior           Junior         Learning           Staff            Junior
                                 Junior               Junior
Remuneration   DAPEG and                                                Business         Officer     Performance         Officer         Center         Operasional         Officer
                                 Recruit              Recruit
   Staff        HCIS staff                                              Partner         Manajemen    Management         Corporate        Quality         Learning          Learning
                                 Officer              Officer
                                                                         Officer         Kinerja        Officer          Culture       Control Staff      Center            Design




                                                                         Junior
                                            Junior
               DAPEG and                                                Business                                      Junior Officer
                                            Recruit
                HCIS staff                                              Partner                                        Corporate
                                            Officer
                                                                         Officer                                         Culture




Remuneration   Remuneration
   Staff          Staff




                                                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                      2023 Annual Report                       303
Page 306
Human Capital
Work Plan 2024




The Human Capital Division had a human capital development plan for 2024 as follows:


HUMAN CAPITAL OPERATIONAL SUB DIVISION                               7. Conducting periodic behavioral and technical competency
1. Satisfaction of employees according to necessity based                assessments every 2 (two) years for all officials from echelon
   on the organizational structure and harmonization with the            1 to echelon 4 to measure the suitability of the competencies
   Bank’s business plan, through employee recruitment, both              possessed by each official with the requirements of
   regular, ODP and Pro Hire.                                            competency determined by the Company. Also, provision
2. Development of the Jatimers Internship Program (JIP),                 of training is proposed if a lack of competency level
   previously intended only for the frontliner (teller and Service       possessed by echelon 1 to echelon 4 officials is still found.
   Assistant) and addition to the administrative section that        8. Increasing Assessor competency by sending to Assessor
   will be implemented in Quarter I.                                     training at certified Assessor training institutions.
3. Designing a monitoring dashboard for the satisfaction             9. Adjustment of job grading according to the results of job
   of JIP personnel in Branch Offices so that JIP participant            evaluation so that the received compensation is fair for
   turnover can be monitored and avoid formation vacancies,              employees in accordance with the employee’s workload
   which will be implemented in Quarter I.                               and responsibilities.
4. Creating an organizational structure in the EHC application       10. Development of an integrated online applications (web and
   to ease monitoring vacant positions or employee shortages             mobile apps)-based e-Human Capital program focused
   that are integrated into employee data in Quarter I.                  on rapid, accurate, effective, and controlled information
5. Designing an application to calculate variable compensation           delivery that is adapted to developments and accessibility
   in Quarter II.                                                        for the Human Capital Division of Bank Jatim to monitor
6. Refinement of the policy of outsourced workers utilization            services provided to Bank Jatim’s employees.
   via a contracting system, which will be implemented in
   Quarter I.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                     HUMAN
                                                                                                                     CAPITAL




11. Satisfaction of HR needs through recruiting new employees       INDUSTRIAL RELATIONS & HCBP SUB DIVISION
    as required.                                                    1. Strict implementation of Reward and Punishment for all
12. Optimization of benefits that are in-natura tax object             employees in accordance with the governing regulations
    through third parties so that in-natura tax costs are more         and laws.
    efficient and will be implemented in Quarter I.                 2. Implementation of employee engagement survey as
13. Improving a competitive and performance-based employee             a means to measure the level of emotional binding of
    remuneration system in accordance with the Bank’s                  employees to the company, which is completed via the
    capabilities, projected to be implemented in Quarter II.           e-Human Capital mobile app.
14. Integration of the payroll system which will ease calculation   3. Application of programs that can improve the Human
    of employee compensation and benefits including PPh21              Capital Division’s communication with all employees and
    tax calculation in Quarter III.                                    channel employees’ voices regarding employment, so that
                                                                       input and complaints are obtained from employees to be
HUMAN CAPITAL DEVELOPMENT SUB DIVISION                                 used as evaluation materials of improvement to personnel
1. The Career Development Program is based on performance,             policies.
   competency, experience, and other criteria to ensure that        4. Providing facilities to employees regarding consultations
   all employees achieve the fair opportunity to develop their         with psychologists and/or psychiatrists if necessary, where
   careers.                                                            it can anticipate and maintain employees’ mental health.
2. Arrangement of career paths to post employees according
   to their competencies in available positions.                    LEARNING CENTER SUB DIVISION
3. Drafting talent management policies to prepare quality           1. Development and optimization of learning facilities.
   talent to be future leaders, who will direct the Bank to         2. Supporting quality and competency as well as distribution
   achieve better performance.                                         of education and training access for all employees.
4. Implementation of a fairer and more objective Performance        3. Improving competency, optimization, and evaluation of the
   Management System of employee for all work units.                   role of internal lecturers in encouraging the achievement
5. Implementation of work life balance as a means of                   of the Bank’s vision and mission through education and
   channeling employee talents and interests outside of work           training activities.
   routines.                                                        4. Development of Center Assessment methods and tools
                                                                       that will be employed in implementing assessments in
                                                                       Quarter III.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      2023 Annual Report    305
Page 308
INFORMATION
Technology




      PT Bank Pembangunan Daerah Jawa Timur Tbk
306   2023 Annual Report
Page 309
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   307
Page 310
Information Technology
Strategy


Bank Jatim’s Information Technology (IT) business plan is in       its Business Plan to the regulator. The business plan is also
line with the implementation and development of information        adjusted to the strategic plan of Bank Jatim’s Corporate Plan
technology security which is guided by Financial Services          in section PILAR 4 (Digital Banking and IT). The Information
Authority (OJK) Regulation No. 11/POJK.03/2022 concerning          Technology (IT) Corporate Plan strategy implements the
the Implementation of Information Technology by Commercial         OPTIMUM 2023-2024 strategy. The following is an overview of
Banks. Therefore, every commercial bank is obliged to report       the OPTIMUM strategy.

                                             OPTIMUM STRATEGY 2023-2024



   Maximize Jatimers                   7                                                  2     Provide Business
   Digital Capability                                                                           Intelligence to Support
                                                                                                Business Branch and
   Training & Certification to                                                                  Division
   support human resources
   capabilities in preparing                                                                    •   Enchancement Regulatory
   Business Modernization                                                                       •   Reporting
   and Digital Transformation                                                                   •   Pipeline
                                                                                                •   Fund
                                                                                                •   Credit & Non-Performing Loan




                                       6                                                  3
   Unified Service                                                                              Toward Dynamic
   Excellence                                                  1                                Modern Office

                                                        Optimize It
   • Product Improvement                                                                        • Standardize Office Facade
   • Service Standard                                                                           • Digital Branch
   • Early Warning System
                                                        Foundation
                                                        & Security
                                                          System


   Modernize Customer                  5                                                  4
   Experience                                                                                   Innovate, Streamline,
                                                                                                and Automate business
   • JConnect ETPD throughout East Java
   • JConnect Mobile
                                                                                                Process
     (Target of 633.000 Users in 2023)                                                          •   JConnect Loan System
   • JConnect Internet Banking Corporate                                                        •   JConnect General Affair System
     (Target of 10 thousand users in 2023)                                                      •   Trade Finance
   • Agen Jatim - Laku Pandai                                                                   •   Custody
     (Target of 8,700 Agents in 2023)                   Network & IT                            •   International Banking
   • JConnect QRIS                                      Infrastructure
     (Target of 101 Thousand Merchants in             System Hardening
     2023)




To support the OPTIMUM 2023 strategy, the Bank is strengthening its organization, IT policy, Core Banking, Infrastructure
Management, developing business applications, and strengthening IT security.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
308     2023 Annual Report
Page 311
                                                                                                                 INFORMATION
                                                                                                                  TECHNOLOGY




Information Technology
Innovation


Innovation in the field of Information Technology (IT) refers         Enterprise Resource Planning (ERP) is a type of software
to the development and application of new ideas, methods,             designed to help organizations manage their business
or technologies to improve the efficiency, productivity, and          processes holistically. ERP systems integrate various functions
performance of information systems. IT innovation can appear          and departments within a company into one coherent and
in various forms, ranging from the development of new                 uniform system, helping to optimize resource use and increase
software, integration of the latest technology, to the application    operational efficiency. Information Technology has developed
of new concepts in data management and information security.          several modules required for the Bank’s internal business/
In 2023 Information Technology would carry out several                operations totaling 6 (six) modules, namely:
innovations such as Business Intelligence using Tableau,              1. Contact
Enterprise Resource Planning (ERP) using Odoo, and building           2. Customer Relationship Management (CRM)
Datawarehouse infrastructure.                                         3. Inventory
                                                                      4. Asset Management
Business Intelligence is a concept that includes technologies,        5. Budget
processes, and tools for collecting, integrating, analyzing, and      6. Vendor Management System
presenting business information. The main goal of Business            7. Purchase
Intelligence is to provide in-depth insight to decision makers in
an organization to support better decision-making processes.
Information technology has developed dashboard report
solutions for the Bank’s internal/operational business of 229
dashboards covering 31 divisions.



Datawarehouse is a data storage and management system designed to support the business decision making process. It is a central
repository that allows the Bank to integrate data from many different sources for analysis and reporting. Data warehouses store
historical and current data in formats that users can easily access and analyze.




                                                       DATA WAREHOUSE
        DATA SOURCE                                                                                     VISUALIZATION
                                                          & BIG DATA


            RDBMS                                            Historikal Data                        • Data Visualization
       (Structured Data)
                                                             Master Data                            • Front-End Application

                                                             Transactions                           • Reporting

           Core Banking                                                                             • Data Cleansisng
                                                             DATA MART                              • Pipeline
           Internet Banking                                   OJK                                   • Cross Selling

                                                              Bank Indonesia                        • Prediktif NPL
           Mobile Banking                 ETL

                                      • Dialy
                                                              Pipeline
                                      • Weekly
           Surrounding                • Monthly               Rekon




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report     309
Page 312
Apart from Business Intelligence innovation using Tableau,                 development of digital banking technology. Currently, several
Enterprise Resource Planning (ERP) using Odoo, and building                products, services and certifications have been launched to
Datawarehouse infrastructure, Bank Jatim continues to innovate             make services easier for the public, namely:
and invest in technology so that it can remain competitive in the




             IKD                           JCONNECT PRO                         CMS - SISKEUDES                      E-BANSOS
          JUNE, 2023                        AUGUST, 2023                        SEPTEMBER, 2023                    NOVEMBER, 2023
   The First Bank in Indonesia to       Online Account Opening                    Application for Village        Centralized distribution of
   implement Digital Population        Feature on JConnect Mobile                Government spending           social assistance to support the
              Identity                                                         facilitating disbursement to   Kampung Madani Program of the
                                                                                       village partners          Surabaya City Government




             1        2                          3       4                             5       6                         7       8



             SIPD                           ISO 20000:2018                  CUSTOMER SELF SERVICE                  SISKEUDES LINK
          JULY, 2023                         AUGUST, 2023                       OCTOBER, 2023                      DECEMBER, 2023
    Integrated SP2D Application       “IT Service Management System             Online and Self-Service       Integrated Financial Governance
      for Regional Government          at the IT and Digital Directorate        Customer Transaction              for Village Government in
            Expenditure               to Support Core Banking System            Monitoring Dashboard           Collaboration with the Ministry
                                       Services and JConnect Services                                                   of Home Affairs
                                     (Mobile Banking, Internet Banking
                                    & SMS Banking) for Internal Users of
                                                  Bank Jatim”

                                            ISO 27001:2022
                                      JConnect Mobile Information
                                    Security Management System, SMS
                                      Banking, and Internet Banking




Information Technology
Infrastructure

Currently, Bank Jatim has additional protection systems and devices as information security protection measures at Bank Jatim as
follows.
• Endpoint Management
• Endpoint Security
• Mobile Application Security
• Mail Security Gateway
• Load Balancer with WAF (Web Application Firewall)
• Application Security Testing
• Vulnerability Application Scanner




         PT Bank Pembangunan Daerah Jawa Timur Tbk
310      2023 Annual Report
Page 313
                                                                                                                INFORMATION
                                                                                                                 TECHNOLOGY




Information Technology
Governance


Information Technology (IT) Governance is the process used          achieving company goals in aligning the organization’s strategy
to monitor and control information technology capability            and business goals. Good IT governance requires a balance
decisions to ensure delivery and value to Bank stakeholders.        between People, Process and Technology aspects.
Thus IT Governance is very important in supporting and



                                                    Business Needs


 Governance
                                                             Evaluate




                   Direct                                                                                 Monitor
                                                Management Feedback




                Plan                           Build                            Run                          Monitor
               (APO)                           (BAI)                           (DSS)                         (MEA)



    Management


The picture above is a model of Bank Jatim IT Governance. The description of the picture is as follow:
1. Evaluating the use of Information Technology in current and future conditions;
2. Carrying out direct directions regarding the preparation and implementation of plans related to the use of Information Technology
   and ensuring that the use of Information Technology could meet the business objectives of Bank Jatim;
3. Monitoring the conformity of Information Technology planning implementation with Information Technology policies and
   performance.


There are 5 (five) areas that are the focus of IT Governance, as follows:
1. Strategic Allignment, the application of IT must really support the achievement of the company’s mission where the IT strategy
   must be aligned with the company’s business strategy.
2. Value Delivery, the application of IT must be able to provide added value for the achievement of the company’s mission.
3. Risk Management, IT implementation must be accompanied by identification of IT risks so that their impact can be handled.
4. Resource Management, IT implementation must be supported by adequate resources and optimal use of resources wherever
   possible.
5. Performance Management, IT implementation must be measured and evaluated regularly to ensure that IT performance and
   capacity are in line with business requirements.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report     311
Page 314
The determination of IT governance characteristics consists of        9. The Information Technology Information Library (ITIL)
several aspects, as follows:                                              is a standard framework for IT in aligning IT support
A. Compliances                                                            services to businesses. ITIL focuses on IT processes,
    Bank adopts regulatory compliance and best practices                  procedures, tasks and service levels to support
    from regulators and the business environment as follows:              corporate strategy, provide added value, and maintain
    1. SEOJK Number 29/SEOJK.03/2022 dated December                       IT competency levels.
        27, 2022 concerning Cyber Security and Resilience             10. ISO 20000:2018 the service management system at IT
        for Commercial Banks. This regulation regulates the               & Digital directoraterovision of core banking system
        definitions of cyber security, cyber security, cyber              and JConnect (Mobile Banking, Internet Banking and
        incident reports, and early notification of cyber                 SMS Banking) Services to internal Customers of Bank
        incidents.                                                        Jatim.
    2. POJK Number 11/POJK.03/2022 concerning the                     11. ISO 27001:2022 Information Security Management
        implementation of information technology for                      System for JConnect Mobile, SMS Banking and Internet
        commercial banks. In this regulation, POJK supports               Banking services.
        digital transformation and cyber resilience of the
        banking industry and the banking sector for digital       B. Customer Demands
        transformation needs to increase resilience and cyber        Changes in the marketplace and society require banks to
        security.                                                    change towards digital banking, or services that are run
    3. POJK Number 11/POJK.03/2022 concerning the                    with the support of Information Technology. Some banking
        implementation of information technology for                 services are now turning into IT-based selfservice services.
        commercial banks. In this regulation, the banking            As a consequence of this change is the increasingly high
        sector is required to have a Disaster Recovery Plan          demand for Information Technology support in running a
        (BCP) and placement of Data Centers and Disaster             business of future changes.
        Recovery Centers (DRC) in the territory of Indonesia.     C. Technology Development
    4. Bank Indonesia Regulation Number 23/11/PBI/2021               The dynamics of technological development which are
        concerning National Payment System Standards. In this        getting higher with the industrial revolution 4.0, especially
        regulation the Bank is regulated for Standardization in      in financial services, requires that Bank Jatim always adapts
        the implementation of the Payment System (SP) which          to existing and ongoing changes. This aims to provide
        is one of the efforts to support a healthy, competitive      convenience, comfort and security for customers in
        and innovative SP industry.                                  interacting in banking services.
    5. POJK Number 12/POJK.03/2018 concerning the                 D. Banking Digital Technology Security
        Implementation of Digital Banking Services for               Increased digital transactions need to be followed by reliable
        Commercial Banks. In this regulation, banks can              banking transaction security as the threat of cybercrime
        cooperate with third parties, both banks and non-            increases, it needs to be considered when implementing
        banks, in terms of digital services to customers.            and responding to technological developments. The Bank
    6. Regulation of Bank Indonesia Members of the Board             maintains cyber resilience supported by an adequate
        of Governors No. 23/25/PADG/2021 concerning                  cyber resilience information system through a process that
        Implementation of Bank Indonesia- Fast payment               includes:
        (BIFAST). In this regulation, Bank Indonesia as the BI-      1. The bank has controlled IT security systems using
        FAST service provider is aligned with Bank Indonesia              the Nist Cybersecurity Framework Framework which
        policy directions in the monetary, macroprudential,               includes:     Identification,   Detection,    Protection,
        as well as the payment system and rupiah currency                 Response and Recovery.
        management to support the creation of an integrated,         2. The bank carries out security awareness to users every
        interoperable and interconnected digital ecosystem.               year.
    7. POJK       Number       13/POJK.03/2021       concerning      3. The bank has optimized the security of Bank Jatim’s
        Implementation of Commercial Bank Products. This                  endpoint, including through information security
        regulation regulates Bank products, including new                 automation
        Bank products, which are grouped into Basic Products         4. The Bank periodically carries out penetration testing
        Bank and Advanced Products Bank.                                  to test the reliability of the application to support
    8. Control Objectives for Information and related                     business and service needs to make transactions easier
        Technology (COBIT) as one of the IT Governance                    for customers.
        frameworks which has an IT Strategic Plan that is
        aligned with business strategy.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                   INFORMATION
                                                                                                                    TECHNOLOGY




    Bank Jatim has been certified as ISO 27001:2022                       A disaster recovery plan works to:
    Information Security Management System for JConnect                   a. Minimize service disruption to customers.
    Mobile, SMS Banking and Internet Banking services.                    b. Maintain operational continuity of information
                                                                              technology in the event of a disaster/adversity/
E. Disaster (Disruption) Recovery Plan                                        disruption.
   The Bank has Business Continuity Information Technology                c. Provide assurance that Bank management fulfills its
   Guidelines and Disaster Recovery Plan Guidelines as a basis                responsibility to protect information sources and
   for the availability of data centers, disaster recovery and dual           information documents for customers and other
   data centers to measure/identify critical business processes               parties.
   related to application system utilization, Response Point              d. The Bank regularly measures the performance of
   Objectives (RPO), Response Time Objectives (RTO) and                       IT resources, applications, networks and capacity
   Work Recovery Time (WRT) strictly.                                         planning.


    The Bank also has policies related to Disaster Recovery           In carrying out information technology operations, the Bank
    Plans that support the effectiveness of implementing              collaborates with Data Center Service Providers to maintain
    Disaster Recovery Plans when needed. The emergence of             server availability and security in accordance with the expected
    disaster risk can result in disruption of business operations,    Service Level Agreement (SLA).
    resulting in increased costs, problems in providing services
    to users, decreased productivity in the work environment,         In 2023, Bank Jatim through Decree No. 062/2076/HCP/HHCD/
    and a worsening of the Bank’s image. Bank business is             NOTA has approved and implemented the Organizational
    highly dependent on information and the applications              Structure of the IT Security Unit which stands independently
    that process it, so it would be very worrying if a disruption     and separately from Information Technology Management. The
    occurred that could paralyze the Bank’s business.                 Security Unit carried out several things related to the domain of
                                                                      organizational functions as follows.
    In principle, what really needs attention is the occurrence       1. Self Assessment Security IT
    of interference factors that can affect the performance of        2. Security Test
    IT operational systems. Familiarization with IT devices and       3. Cyber Resilience Test
    infrastructure, as well as the various possible disruptions       4. IT Security Awareness
    and their consequences is very important because of the           5. IT Security Monitoring
    risk of disasters of various intensities and with varying         6. Information Security Standards
    levels of disruption to operations. Therefore, banks must
    have a strategic plan to ensure business continuity when
    unplanned disruptions occur. This plan or strategy is
    formulated in the Disaster Recovery Plan.




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        2023 Annual Report       313
Page 316
Information Technology
Management Structure




The Bank Jatim IT & Digital Directorate has an Organizational       Technology Work Unit Organizational Structure, referring to
Structure of the Information Technology Division, Digital           Directors Decree No. 061/218/DIR/PRS/KEP dated December
Banking Division and IT Security Unit which are under               7, 2022), are as follows:
the responsibility of the IT & Digital Director. Information




                                                     Director of IT & Digital




         Information Technology                          Digital Banking

                                                                                                    Unit IT Security




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 317
                                                                                                                             INFORMATION
                                                                                                                              TECHNOLOGY




Information Technology
Work Plan 2024


Transformation is a process that requires many resources                   achievement of the OPTIMUM 2023-2024 strategy which
and thorough preparation. To achieve the desired results,                  is focused on strengthening the organization, improving
consistency in implementation is very necessary to create an               IT policies, optimizing the Core Banking system, better
effective and targeted synergy. These steps will support the               infrastructure management, developing innovative business
                                                                           applications, and increasing IT system security.


                                Executive Summary of Digital Transformation Realization



                                        Expanding                                   Customer empowerment
                                     digital ecosystem                                through Al and ML
                            Expand product offerings and digital               Sharpening digital banking services
                             capabilities that provide customers              with big data as well as AI and ML for
                                with a seamless experience                    personalized use of banking services




                  2024                                             2026                                                2028

                                          2025                                               2027


                Laying digital                               Beyond banking:                               Intelligent digital ecosystem:
            ecosystem foundation                     Bank Jatim as lifestyle companion                   Proactive and predictive banking
         Building the capabilities and              Developing JConnect as an intelligent                Developing a smart ecosystem that
    infrastructure needed for ecosystem             customer assistant that is inseparable                 can anticipate customer needs
                development                                  from everyday life




By referring to the focus of the Information Technology Division’s business plan, information technology development for 2024 can
be described based on 5 (five) main strategies as follows:


1. OPTIMIZE IT FOUNDATION AND SECURITY SYSTEM

     No.                  Project Name                                                        Description

                                                         Development of Virtual Accounts for the purposes of Central Government Work Unit
       1.     Virtual Account with Balance               Accounts from the Ministry of Finance, transfer transactions between virtual accounts can
                                                         be carried out.

              Digital Banking Microservices              Infrastructure (OS, Database, Microservices Platform) used for implementing Digital
       2.
              Infrastructure                             Banking applications.

       3.     DC-DRC Router and Switch Rejuvenation      Rejuvenation of router and switch devices for DC-DRC.

       4.     Added Nutanix HCI Node                     Addition of HCI Node devices and DC/DRC Infrastructure at Head Office).




                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                              2023 Annual Report            315
Page 318
      No.                Project Name                                                        Description

                                                        Advanced stage FDS development using machine learning for fraud detection where
      5.    Fraud Detection System (FDS) Advanced       the system is useful for detecting unusual transactions that have the potential to lead to
                                                        criminal acts including fraud.

                                                        External media for centralized backup of Non-Core Banking System (CBS) and Core
      6.    Virtual Tape Library (VTL) Infrastructure
                                                        Banking System (CBS) data.

            Procurement of Infrastructure for           Procurement of additional storage used to support the procurement of Data Warehouse
      7.
            Datawarehouse                               (Business Intelligence).

            Upgrading Routers, Switches and Next        Increased branch firewall hardware and software capacity to secure traffic and early
      8.    Generation Firewalls for Conventional       detection of network security.
            and Sharia Branches



2. PROVIDE BUSINESS INTELLEGENCE TO SUPPORT
   BUSINESS BRANCH AND DIVISION

      No.                Project Name                                                        Description

                                                        Make it easier for the Information Technology Division to present reporting by
      1.    Data Analytics
                                                        transforming data reporting into visualization data reporting.

      2.    Jconnect Branch (CBS New Experience)        Centralization of funding and lending operational menus.



3. INNOVATE STREAMLINE AND AUTOMATE BUSINESS
   PROCESS

      No.                Project Name                                                        Description

      1.    Jconnect Loan System Enterprise             Services to support processing and monitoring credit applications

                                                        Procurement of Business Intelligence (BI) & Enterprise Resource Planning (ERP) in the
      2.    Jconnect ERP - Automatic Office             context of developing BI and ERP solutions according to Bank Jatim’s needs & integrating
                                                        the solutions developed with the bank’s current systems and/or infrastructure.

            Streamlining Business Process               Provide reviews of existing business processes at Bank Jatim and provide business
      3.
            (Supporting)                                process flows and recommendations across all divisions that benefit the Company.

                                                        Regional Government Credit Card (KKPD) is a credit card that can be used to make
                                                        payments for expenditure charged to the APBD, after the card holder’s payment
            Supporting Regional Government Credit
      4.                                                obligations have been fulfilled by the credit card issuing bank in accordance with
            Cards (KKPD) with Mobile
                                                        its obligations at the agreed time and regional work units are obliged to pay off the
                                                        obligations payment at the agreed time with payment in full at once.

                                                        Online or non-cash payment means using a card issued by Bank Jatim, credit card
      5.    E-Credit Card (QRIS Payment)
                                                        management is in the consumer division.

                                                        Facilities provided by Bank Jatim to finance debtor trading activities related to foreign
      6.    Trade Finance (Supporting)
                                                        (export-import) and domestic (buying and selling) trade transactions.

                                                        Management of mutual fund investment funds whose job is to store securities portfolios
      7.    Banking Custody (Supporting)
                                                        and various other valuable certificates.

      8.    Improve core banking system                 Core Banking System assessment by independent consultant.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 319
                                                                                                                      INFORMATION
                                                                                                                       TECHNOLOGY




4. MODERNIZE CUSTOMER EXPERIENCE

    No.               Project Name                                                    Description

                                                 The second stage of development of BI-FAST is to bulk credit, direct debit, e-mandate,
     1.   BI-Fast stage 2
                                                 and request for payment features.

                                                 Development of Bank Jatim’s EDC to be able to accept debit card transactions from other
     2.   EDC for Banking
                                                 banks or development of other features.



5. UNIFIED SERVICE EXCELLENCE

    No.               Project Name                                                    Description

                                                 Monitoring, overseeing, and supervising and providing recommendations on Business
     1.   Konsultan Project Management dan QA
                                                 Intelligent and JConnect GAS – ERP projects.

                                                 The process of evaluating and measuring the quality and effectiveness of an organization’s
     2.   Governance Assesment with COBIT 2019
                                                 information technology (IT) governance using the COBIT 2019 Framework.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       2023 Annual Report            317
Page 320
CORPORATE
GOVERNANCE




      PT Bank Pembangunan Daerah Jawa Timur Tbk
318   Annual Report 2023
Page 321
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       Annual Report 2023   319
Page 322
Achievements in Implementing
Corporate Governance
                             Bank Jatim received the TOP GRC (Governance, Risk, and Compliance) Awards 2023 #stars 5. Bank
                             Jatim was assessed as having systems, infrastructure and implementation related to good corporate
                             governance (GCG). Apart from that, risk management, compliance management and the use of
                             digital technology within the Bank are at an extraordinary level. So this really supports the successful
                             implementation of GRC and the sustainable improvement of the company’s business performance.




Basic for Corporate Governance
Implementation




The implementation of Corporate Governance at Bank Jatim                concerning the Stipulation of Governmental Regulations in
always refers to the applicable regulations. The basis for              Lieu of Law Number 2 of 2022 concerning Job Creation
implementing Corporate Governance at Bank Jatim is as follows:          into Law along with its amendments.
1. Law of the Republic of Indonesia Number 7 of 1992                 2. Law of the Republic of Indonesia Number 31 of 1999
    concerning Banking as amended several times, lastly                 concerning Eradication of Corruption Crimes as partially
    by Law of the Republic of Indonesia Number 6 of 2023




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 323
                                                                                                                  CORPORATE
                                                                                                                 GOVERNANCE




    repealed by Law of the Republic of Indonesia Number 1 of          17. POJK Number 37/POJK.03/2019 Concerning Transparency
    2023 concerning Criminal Law along with its amendments.               and Publication of Bank Reports along with its amendment.
3. Law Number 40 of 2007 concerning Limited Liability                 18. POJK Number 11/POJK.03/2016 concerning Obligation
    Companies as amended several times, lastly by Law of the              of Minimum Capital Requirements for Commercial Banks
    Republic of Indonesia Number 6 of 2023 concerning the                 along with its amendment.
    Stipulation of Governmental Regulations in Lieu of Law            19. POJK Number 17 of 2023 concerning Implementation
    Number 2 of 2022 concerning Job Creation into Law along               of Governance for Commercial Banks along with its
    with its amendments.                                                  amendment.
4. Corruption Eradication Commission Regulation Number 2              20. POJK Number 8 of 2023 concerning Implementation of
    of 2019 concerning Reporting of Gratification.                        Anti-Money Laundering Program, Prevention of Terrorism
5. Corruption Eradication Commission Regulation Number                    Funding, and Prevention of Mass Weapon Proliferation
    07 of 2016 concerning Procedures for Registration,                    Funding in the Financial Services Sector along with its
    Announcement and Examination of the Assets of State                   amenmdent.
    Administrators along with its amendments.                         21. POJK Number 46/POJK.03/2017 tentang concerning
6. POJK Number 33/POJK.04/2014 concerning Directors and                   Implementation of Compliance Function for Commercial
    Board of Commissioners of Issuers or Public Companies                 Banks along with its amendments.
    along with its amendments.                                        22. POJK Number 1/POJK.03/2019 concerning Implementation
7. POJK Number 34/POJK.04/2014 concerning the                             of the Internal Audit Function in Commercial Banks along
    Nomination and Remuneration Committee of Issuers or                   with its amendments.
    Public Companies along with its amendments.                       23. SEOJK       Number      32/SEOJK.04/2015        concerning
8. POJK Number 35/POJK.04/2014 concerning Corporate                       Governance Guidelines for Public Companies.
    Secretary of Issuers or Public Companies along with its           24. SEOJK Number 39/SEOJK.03/2016 concerning the Fit and
    amendments.                                                           Proper Test for Candidates for Controlling Shareholders,
9. POJK Number 21/POJK.04/2015 concerning Guidelines                      Candidates for Members of the Board of Directors, and
    for Implementation of Public Company Governance along                 Candidates for Members of the Board of Commissioners of
    with its amendments.                                                  the Bank.
10. POJK Number 45/POJK.03/2015 concerning the                        25. SEOJK       Number      13/SEOJK.03/2017        concerning
    Implementation of Governance in Providing Remuneration                Implementation of Governance for Commercial Banks.
    for Commercial Banks along with its amendments.                   26. SEOJK       Number      14/SEOJK.03/2017        concerning
11. POJK Number 55/POJK.04/2015 concerning the                            Assessment of the Soundness of Commercial Banks.
    Establishment and Guidelines for the Work Implementation          27. Articles of Association of PT East Java Regional
    of the Audit Committee along with its amendments                      Development Bank Tbk. along with the changes.
12. POJK Number 4/POJK.03/2016 concerning Assessment
    of the Soundness of Commercial Banks along with its               In addition to the required provisions of the various laws and
    amendments.                                                       regulations above, the Company also bases on the GCG
13. POJK Number 5/POJK.03/2016 concerning Bank Business               implementation guidelines as follows:
    Plans along with its amendments.                                  1. Principles of Corporate Governance developed by the
14. POJK Number 18/POJK.03/2016 concerning the                            Organization for Economic Cooperation and Development
    Implementation of Risk Management for Commercial                      (OECD).
    Banks along with its amendments.                                  2. ASEAN Corporate Governance Scorecard.
15. POJK Number 27/POJK.03/2016 concerning the Fit and                3. Indonesian GCG Guidelines developed by the National
    Proper Test for Main Parties of Financial Services Institutions       Committee on Governance Policy (KNKG).
    along with its amendments.                                        4. Indonesian Banking GCG Guidelines developed by the
16. POJK Number 29/POJK.04/2016 concerning Annual                         National Governance Policy Committee (KNKG).
    Reports of Issuers or Public Companies along with its             5. Principles for Enhancing Corporate Governance published
    amendments.                                                           by the Basel Committee on Banking Supervision.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       Annual Report 2023     321
Page 324
Structure and Mechanism of
Corporate Governance

Structure of Company Organs

Based on the Law of the Republic of Indonesia Number 40 of 2007 concerning Limited Liability Companies, the Organs of the Company
consists of General Meeting of Shareholders (GMS), Board of Commissioners and Board of Directors. Its administration adopts a two tier
system, namely Board of Commissioners and Board of Directors, who have specific authority and responsibility based on their respective
functions as specified in the Articles of Association and the laws and regulations. Bank Jatim also had supporting organs under the Board
of Commissioners and Directors in order to support the effectiveness of the duties and responsibilities of the Main Organs.


The structure of the corporate organs is presented in the chart below.



  Principle
  Governance
                         Transparency          Accountability       Person in Charge         Independence         Fairness
  Company



                                                        General meeting
                                                         Shareholders

 Main
 Organs
                                                             Board of
                                                           Commissioners




                                                             Directors




                            Committees under the
                           Board of Commissioners

                                              Monitoring
                     Audit Committee          Committee                          Committee under the                   Compliance &
                                                Risk                                                                  APU-PPT Division
                                                                                  Board of Directors
                      Remuneration &
                        Nomination                                                                                    Risk Management
Supporting              Committee                                        ALCO Committee        Risk Management             Division
                                                                                                  Committee
Organs

                                                                            Personnel                                 Corporate Security
                                                                           Management           IT Committee
                                                                            Committee

                                                                                                                        Internal Audit
                                                                                                 Credit Policy             Division
                                                                         Credit Committee        Committee



                                                                         Product & Network
                                                                            Committee




         Stakeholders
                                 Customer                         Employee                        Community




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                              CORPORATE
                                                                                                                             GOVERNANCE




Governance Soft Structure

In addition to the structure of the Company’s Organs, Bank Jatim also has a governance soft structure which is the provisions set by
the Board of Directors to implement GCG principles at all levels of the organization. In its implementation, Bank Jatim has various
policies/ guidelines in carrying out its functions and duties which are called the Bank’s governance infrastructure. The objectives of
building the Bank’s governance infrastructure are as follows.


 No.                     Guidelines                                             Guide Numbe                                Validation Date

  1     Articles of Association                          Deed of Establishment of PT Bank Pembangunan Daerah Jawa       May 1, 1999
                                                         Timur Number 1 dated May 1, 1999

                                                         Deed of Statement of Meeting Resolutions of PT. Bank           July 13, 2017
                                                         Pembangunan Daerah Jawa Timur Tbk. Number 22 dated July
                                                         13, 2017

                                                         Deed of Decision of the Extraordinary General Meeting of       July 24, 2018
                                                         Shareholders Number 92 dated July 24, 2018

                                                         Deed of Restatement of Meeting of PT Bank Pembangunan          April 22, 2020
                                                         Daerah Jawa Timur Resolutions Number 55 dated April 22, 2020

                                                         Deed of Restatement of Meeting of PT Bank Pembangunan          May 20, 2020
                                                         Daerah Jawa Timur Resolutions Number 175 dated May 20, 2020

                                                         Deed of Restatement of Meeting of PT Bank Pembangunan          May 9, 2023
                                                         Daerah Jawa Timur Resolutions Number 15 dated May 9, 2023

  2.    Board of Commissioners Work Guidelines           060/01/DK/KEP                                                  January 15, 2021

  3.    Directors Work Guidelines                        056/006/DIR/CSE/KEP                                            January 17, 2017

  4.    Board of Commissioners Committee                 060/02/DK/KEP                                                  January 15, 2021
        Implementation Guidelines

  5.    Board of Commissioners Committee                 059/222/DIR/KPT/KEP                                            August 18, 2020
        Implementation Guidelines

  6.    Compliance Guidelines                            059/220/DIR/KPT/KEP                                            August 14, 2020

  7.    Guidelines for Customer Compliant                059/299/DIR/SQA/KEP                                            November 3, 2020
        Settlement and Protection

  8.    Bank Business Plan Guidelines                    059/211/DIR/PRS/KEP                                            August 13, 2020

  9.    Guidelines for Implementation of Anti-Fraud      060/22/DIR/AUI/KEP                                             January 28, 2021
        Strategy

  10.   Guidelines for Advanced Financial Application    058/315/DIR/KPT/KEP                                            November 6, 2019

  11.   Guidelines for Environmental and Social          059/188.3/DIR/CSE/KEP                                          July 21, 2020
        Responsibility

  12.   Board of Directors Committee Guidelines          062/056/DIR/CSE/KEP                                            July 12, 2023

  13.   Product Policy and Internal Audit Activities     060/02/04/DIR/AUI/KEP                                          November 30, 2021

  14.   Product Policy and Risk Management               060/02/01/DIR/MJR/KEP                                          May 4, 2023
        Activities

  15.   Finance or Credit Activity Product Policy (KPA   062/02/02/DIR/MJR/KEP                                          December 5, 2023
        PAP)

  16.   Information Technology Activity and Product      060/02/02/DIR/TEI/KEP                                          August 12, 2021
        Policy (KPA)

  17.   Standard Operating Procedures (SOP) of Bank      062/03/15/DIR/MJR/KEP                                          April 5, 2023
        Soundness Assessment

  18.   Changes to Standard Operating Procedures         060/03/18/DK/KEP                                               June 28, 2021
        (SOP) of Nomination and/or Replacement of
        Member of the Board of Commissioners and
        the Board of Directors

  19.   SOP of Nomination and/or Replacement             060/03/DK/KEP                                                  January 18, 2021
        of Member of Committee of the Board of
        Commissioners (Independent Party)




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023         323
Page 326
 No.                    Guidelines                                         Guide Numbe                            Validation Date

  20.   Standard Operating Procedure Internal Audit   061/03/60/DIR/AUI/KEP                                    December 27, 2022
        Activities

  21.   Standard Operating Procedures of              061/03/06/DKM/KEP                                        August 25, 2023
        Stipulation of Remuneration Governance for
        Management along with its Facilities

  22.   Standard Operating Procedures (SOP) of        062/03/36/DIR/HCP/KEP                                    June 8, 2023
        Grading and Remuneration System

  23.   Standard Operating Procedures (SOP) of        062/03/69/DIR/AMK/KEP                                    December 12, 2023
        Financial Reporting

  24.   Standard Operating Procedures (SOP) of        062/03/40/DIR/CSE/KEP                                    June 21, 2023
        Investor Management

  25.   Bank Governance Self-Assessment Technical     062/04/29/KPT/SE                                         April 17, 2023
        Guidelines

  26.   Technical Procedures of Investor Management   062/04/66/CSE/SE                                         September 26, 2023
        Duties



                                                                         2. Except for the special rights as mentioned above,
Corporate Governance Mechanism                                              shareholders of series B have the same rights in accordance
                                                                            with Law no. 40 of 2007 concerning Limited Liability
Shareholders                                                                Companies (PT).


In the Articles of Association, Shareholders are Series A                In addition, Shareholders also have the right to approve
Shareholders and Series B Shareholders, unless expressly                 remuneration for members of the Board of Directors and
stated otherwise. The Company’s shares consist of series                 Board of Commissioners and to propose agenda items for
A shares which are exclusively owned by the Provincial, City             the GMS and propose holding a GMS in accordance with
and Regency Governments in East Java and Series B shares                 the ownership percentage requirements. As long as there is
which can be owned by Directors, Board of Commissioners,                 no other stipulation in the Articles of Association, series A
Employees, Provincial Governments, City and Regency                      shareholders & series B shareholders have the same rights
Governments throughout East Java and the community.                      and every 1 (one) share gives 1 (one) vote.


Rights of The Shareholders                                               All Shareholders have the same rights in obtaining
                                                                         information related to the Bank. Bank Jatim provides the
By regarding the Articles of Association of the Company based            same treatment to all Shareholders in providing information
on the Deed of Restatement of Meeting Resolutions of PT Bank             needed by investors or Shareholders so that there is no inside
Pembangunan Daerah Jawa Timur Tbk Number 15 dated May                    information that is only known by the Majority Shareholders.
9, 2023, Article 5 paragraph (2) of the Articles of Association of       The Bank also encourages the involvement of Shareholders
the Company stipulated the rights of shareholders as follows:            outside the GMS through investor relations, one on one
1. Series A is shares which give special rights to their holders         meetings and analyst meetings.
    in the attendance and approval quorum as referred to in
    Article 14 of the Articles of Association for:
    a. Attending and approving the appointment, dismissal                General Meeting of Shareholders
        and approval of the resignation of the Directors and
        Board of Commissioners.                                          The General Meeting of Shareholders (GMS) of the Company
    b. Attending and approving changes in the articles of                consisted of the Annual GMS and Extraordinary GMS. Annual
        association for issuance of equity securities or changes         GMS was held annually no later than 6 (six) months after the
        in issued and paid up capital.                                   Company’s financial year was closed. Extraordinary GMS could
    c. Attending and approving stock deposits in the form of             be held at any time based on the need to discuss and decide
        objects other than money, both tangible and intangible           on the agenda of the meeting.
        objects.
    d. Attending and approving the merger, consolidation,                Rules of GMS
        acquisition and separation and submission of an
        application so that the Company is declared bankrupt             1. At the implementation of the GMS, the rules of procedure
        and the liquidation of the Company.                                 for the GMS are given to the shareholders who are present.
                                                                         2. The GMS agenda is read out before the GMS begins.
                                                                         3. At the opening of the GMS, the chairperson of the GMS
                                                                            provides an explanation to the shareholders that contains
                                                                            at least:
        PT Bank Pembangunan Daerah Jawa Timur Tbk
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    a. General condition of the Bank.                                         The GMS is chaired by a member of the Board of Commissioners
    b. Meeting agenda.                                                        who is appointed by the Board of Commissioners who is
    c. Decision-making mechanism related to meeting                           appointed by the Board of Commissioners. In the event that all
       agenda through voting method.                                          members of the Board of Commissioners are absent or unable
    d. Procedures for exercising shareholder rights to submit                 to attend due to any reason that does not need to be proven
       questions and/or opinions.                                             to a third party, the GMS is chaired by a member of the Board
                                                                              of Directors who is appointed by the Board of Directors. In the
If the meeting agenda concerns the appointment of members                     event that all members of the Board of Directors are absent or
of the Board of Directors and/or members of the Board of                      unable to attend, the GMS shall be chaired by shareholders
Commissioners, the curriculum vitae of prospective members                    who attend the GMS who are appointed from and by the GMS
of the Board of Directors and/or members of the Board of                      participants.
Commissioners to be appointed shall be submitted via the
Bank Jatim website.                                                           The GMS can be held if attended by shareholders or their
                                                                              legal proxies who represent more than ½ (one half) of the total
The Process of Implementing a GMS and                                         number of valid shares and the decision is approved by more
Voting                                                                        than ½ (one half) of the total shares with voting rights present.
                                                                              in the GMS unless otherwise stipulated in the applicable laws
The GMS is held by making announcements and summons to                        and regulations.
the Shareholders. Announcement of the GMS shall be made
no later than 14 (fourteen) days prior to the summons for the                 Each shareholder can be represented at the GMS by other
GMS, excluding the date of announcement and the date of the                   holders or a third party with a power of attorney. The power of
invitation. Summons to the GMS shall be made no later than 21                 attorney form has been available on the Bank website since the
(twenty-one) days before the GMS, excluding the date of the                   summons for the GMS. Each share gives the owner the right to
summons and the date of the GMS.                                              cast 1 (one) vote. Voting can be done electronically (poll). All
                                                                              decisions are made based on deliberation to reach consensus.
The summons for the GMS at least contain information on the                   In the event that a decision based on deliberation to reach a
date of the GMS, the time for holding the GMS, the venue,                     consensus is not reached, then the decision is made based
provisions for shareholders who are entitled to attend the GMS,               on an agreed vote as determined in the articles of association
the agenda of the meeting including an explanation of each                    of the Bank. The GMS minutes stated that shareholders were
agenda item, and information stating that materials related to                given the opportunity to submit questions/opinions.
the agenda of the meeting are available to shareholders from
the date of the invitation to the GMS until the GMS is held.



Implementation of Annual GMS For Fiscal Year 2022 and Its Realization


         Information                    Announcement                     Invitation            Implementation             GMS Results

 Notifying the Financial Services   Advertising the               Mengiklankan Advertising    Held on April 12,     - Submission of Summary
 Authority that a meeting would     announcement regarding        the Invitation to           2023, at the Bank       of Minutes to Financial
 be held with the letter number:    the Invitation of Meeting     Shareholders on the         Jatim Head Office       Services Authority
 062/056/DIR/CSE/Srt date           to the Shareholders on the    Indonesia Stock Exchange                            number 062/149/DIR/
 February 24, 2023                  website of the Indonesia      website, PT KSEI website,                           CSE/Srt dated April 14,
                                    Stock Exchange, the           the Company’s website                               2023
                                    website of PT Kustodian       with letter number                                - Submission of Summary
                                    Sentral Efek Indonesia and    062/107/DIR/CSE/Srt date                            of Minutes to Financial
                                    the Company’s website         March 21, 2023. Calls are                           Services Authority
                                    on February 8, 2022 the       delivered in Indonesian                             number 062/190/DIR/
                                    Company’s website with        and English.                                        CSE/Srt dated May 9,
                                    letter number 062/091/                                                            2023
                                    DIR/CSE/Srt date March 3,
                                    2023. Announcements are
                                    delivered in Indonesian and
                                    English



Vote Counting Independent Parties

The Company appointed independent parties, namely Notary Sitaresmi Puspadewi Subianto and and PT Datindo Entrycom in
calculating and/or validating votes.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023      325
Page 328
Attendance Recapitulation at The Annual GMS for Fiscal Year 2022

The Board of Commissioners and Directors of Bank Jatim who attended the 2022 Annual GMS are as follows.


  No.                         Nama                                                   Jabatan                                         Kehadiran

 1.        Suprajarto                                     President Commissioner                                            Present

 2.        Muhammad Mas’ud                                Independent Commissioner                                          Present

 3.        Heru Tjahjono                                  Commissioner                                                      Present

 4.        Candra Fajri Ananda                            Independent Commissioner                                          Present

 5.        Sumaryono                                      Independent Commissioner                                          Present

 6.        Busrul Iman                                    President Director                                                Present

 7.        Edi Masrianto                                  Director of Finance, Treasury & Global Services                   Present

 8.        Tony Prasetyo                                  Pgs. Compliance                                                   Present

 9.        R. Aried Wicaksono                             Director of Micro, Retail and Medium                              Present

 10.       Eko Susetyono                                  Director of Risk Management                                       Present

 11.       Zulhelfi Abidin                                Direktur IT & Digital                                             Present


Decisions and Realization of the Annual GMS for Fiscal Year 2022


                                                    First Meeting Agenda                                                                  Status

 Approval of the Company’s Annual Report regarding the Condition and Operation of the Company during the 2022 Financial               Realized
 Year, including the Report on the Implementation of the Supervisory Duties of the Board of Commissioners during the 2022
 Financial Year and the Ratification of the Company’s Financial Statements for the 2022 Financial Year.

 The total of Shareholders submitting Questions and/or providing opinions was 3 (three) people.

 Voting Results

 In Favor: 12.638.735.377 shares (99,940%) consisting of Series A: 11.862.056.231 shares and Series B: 776.679.146 shares

 Against : 30.100 shares (0,0002%) which were all Series B Shares

 Abstain : 7.449.176 shares (0,058%) which were all Series B Shares

 Decision
 1. Approve and certify:
    a. The Company’s Annual Report that has been submitted by the Board of Directors for the 2022 Fiscal Year.
    b. Supervisory Task Report that has been submitted by the Board of Commissioners for Fiscal Year 2022.
    c. Laporan The Company’s Financial Statements for the financial year ended December 31, 2022 which have been audited
       by the Public Accounting Firm of Paul Hadiwinata, Hidajat, Arsono, Retno, Palilingan & Partner in accordance with the
       Independent Auditor’s Report dated February 13, 2023, with a Fair opinion in all material respects.
 2. With the approval and ratification of the Annual Report, Report on the Supervisory Duties of the Board of Commissioners
    and the Company’s Financial Statements for the 2022 Financial Year, the Meeting granted full discharge and release from
    responsibilities (acquit et de charge) to all members of the Board of Directors for management actions and to all members of
    the Board of Directors. Commissioner for supervisory actions that have been carried out during the financial year ending on
    December 31, 2022 to the extent of such actions reflected in the Company’s Financial Statements.


                                                  Second Meeting Agenda                                                                   Status

 Determination of the use of the Company’s net profit for the financial year 2021 including the provision of bonuses for employees    Realized
 as well as bonuses and remuneration for the Board of Directors and the Board of Commissioners.

 The total of Shareholders submitting Questions and/or providing opinions was 2 (two) people.

 Voting Results
 In Favor : 12.463.237.845 shares (98,553%) consisting of Series A: 11.862.056.231 shares and Series B: 601.181.614 shares

 Against : 182.845.508 shares (1,445%) which were all Series B shares

 Abstain : 131.300 shares (0,001%) which were all Series B shares




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                                                  Second Meeting Agenda                                                                    Status

Decision
1. Approving of the use of the Company’s profits for the Fiscal Year of 2022, as follows:
   a. In the amount of IDR 797.793.173,38 (seven hundred ninety seven billion one hundred seventy two million seven
      hundred ninety three thousand one hundred seventy three Rupiah point thirty eight cents) or 51,667% (fifty-one point
      sixty-six percent) of the net profit for the Fiscal Year of 2022 is set as cash dividend for the Fiscal Year of 2022, so
      it amounts IDR 53,09 (fifty three point zero nine cents) per share, designated as cash dividend for the Fiscal Year of
      2022 will be distributed in cash to all shareholders registered in Register of Shareholders of the Company as of May 2,
      2023 and paid on May 12, 2023. Furthermore, granting power and authority to the Board of Directors to regulate the
      procedure for the payment of the cash.
   b. In the amount of IDR 745.651.466,62 (seven hundred forty five billion six hundred fifty one million six hundred one
      thousand four hundred sixty six rupiah point sixty two cents) or 48,33% (forty-eight point thirty-three percent) set as
      General Reserve.
2. Furthermore, in accordance with the provisions of the applicable Financial Accounting Standards Regulations, we
   propose to determine the distribution of employee bonuses and tantiem for the Company’s Management, such as the
   Board of Directors and the Board of Commissioners including the Sharia Supervisory Board along with those who assist
   the Board of Commissioners, the duties of the Board of Commissioners, including the Sharia Supervisory Board for the
   Fiscal Year of 2022, an allowance of IDR 385.706.139.127,45 (three hundred eighty five billion seven hundred six million
   one hundred thirty nine thousand one hundred twenty seven Rupiah point forty five cents) with the same percentage
   distribution as the previous year, as follows:
   a. Employee bonus of 85% (eighty-five percent).
   b. The Tantiem of the Company’s Management, such as the Board of Commissioner along with those who assist the
      duties of the Board of Commissioner, including Sharia Supervisory Board of 15% (fifteen percent). Of the total that
      will be paid in cash and in accordance with the provisions of POJK Number 45/POJK.03/2015, mainly for the Board of
      Commissioners and the Board of Directors, there will be the retained tantiem in cash and shares through Long Term
      Incentive program.
3. Granting authority and power to the Board of Commissioners to determine the remuneration of the Company’s
   management, such as the Board of Directors and the Board of Commissioners together with those who assist the duties
   of the Board of Commissioners including the Sharia Supervisory Board in 2023 by considering the proposals from the
   Remuneration and Nomination Committee and reporting on the Annual Report.


                                                   Third Meeting Agenda                                                                    Status

Granting Power of Attorney to the Board of Commissioners to Appoint a Public Accounting Firm to Audit the Company’s                    Realized
Financial Statements for the 2023 Financial Year.

There were no Shareholders asking Questions and/or providing opinions

Voting Results
In Favor : 12.486.364.745 shares (98,735%) consisting of Series A: 11.862.056.231 shares and Series B: 624.308.514 shares

Against : 159.719.108 shares (1,262%) which were all Series B shares

Abstain : 130.800 shares (0,001%) which were all Series B shares

Decision
Approved to grant authorization to the Board of Commissioners to appoint a public accounting firm to audit the company’s
financial statements for the 2023 financial year.


                                                  Fourth Meeting Agenda                                                                    Status

Approval of the Company’s Corporate Action                                                                                             Realized

The total of Shareholders submitting Questions and/or providing opinions was 1 (one) people.

Voting Results
In Favor : 12.002.342.731 shares (94,908%) consisting of Series A: 11.862.056.231 shares and Series B: 140.286.500 shares

Against : 643.740.622 shares (5,090%) which were all Series B shares

Abstain : 131.300 shares (0,001%) which were all Series B shares

Decision
Approving the corporate action of capital participation in Bank NTB Syariah of a maximum of 15% of the total of paid-up equity
participation of shareholders of the Province, Regency and City of West Nusa Tenggara Government. The said equity participation
of Bank Jatim is part of the formation process of a Bank Business Group (KUB) as referred to POJK Number 12/POJK.03/2020
concerning the consolidation of commercial banks, currently in the due diligence stage, which the implementation is carried out
with due observance of the applicable statutory. This equity participation is in terms of the satisfaction of Regional Regulation of
East Java Province No. 8 of 2019 concerning Regional-Owned Enterprises.




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   Annual Report 2023               327
Page 330
                                                    Fifth Meeting Agenda                                                                   Status

Changes to Article of Association                                                                                                      Realized

There were no Shareholders asking Questions and/or providing opinions

Voting Results
In Favor : 12.002.543.631 share (94,910%) consisting of Series A: 11.862.056.231 shares and Series B: 140.487.400 shares

Against : 643.540.122 shares (5,088%) which were all Series B shares

Abstain : 130.900 shares (0,001%) which were all Series B shares

Decision
1. Approving changes to the Company’s Articles of Association, as follows:
   a. Changes related the adjustment to:
      - Law of the Republic of Indonesia Number 7 of 1992 concerning Banking as amended several times, lastly by Law of the
         Republic of Indonesia Number 6 of 2023 concerning the Stipulation of Governmental Regulations in Lieu of Law Number
         2 of 2022 concerning Job Creation into Law.
      - Regulation of Statistic Central Agency Number 2 of 2020 regarding Indonesian Business Classification Standard.
      In article l 3 regarding purpose, objectives, and business activities.
   b. Supplement to the provisions related to “quorum of Decisions of GMS in case the management (the Board of Directors and
      the Board of Commissioners) occurs, either nomination, dismissal, or approval for resignation in Article 14 Section (4).
   c. Other changes in Articles of Association of PT Bank Jatim are editorial adjustment as follows:
      - Addition to the provision of term “Good Governance” in “Good Corporate Governance” of Article 16 section (4).
      - Adjustment to the provisions of Duties and Authorities of the Board of Directors in article 16 section 10.D.1. The phrase
         “Credit Relief” becomes “Credit Written-off”.
      - Changes to Drafting of “Regulation of Bapepam LK Number .X.K.2” becomes “in the Capital Market Sector” Article
         22 Section (6) Work Plan, Fiscal Year, and Annual Report.
      - Adjustment to the Mention of “Minister” becoming “Minister of Law and Human Rights” of Article 4 (Capital) section (7)
         and Article 14 (Quorum, Voting Rights, Decision and Code of Conduct) section (3).
      - Changes to the Term “Bank Indonesia” becoming “Financial Services Authority”.
      - Adjustment to the Term “General Meeting of Shareholders” becoming “GMS.”
      - Consistency of the Use “A” Letter (Captal Letter) in “Article” and “s” (small letter) in “section”.
      - Adjustment to the point reference in Article of Articles of Assocation by referring to point in Article of Articles of
         Association, such as in Article 14 section (2) point a number 2 and 3.
2. Granting power and authority to the Company’s Board of Directors with the right of substitution to carry out all required
   actions related to decision of the agenda of this Meeting, including drafting and restament all Articles of Association in
   a notarial deed and, accordinglu, submitting to the authorized party including regulator to obtain approval or receipt of
   notification of changes to Article of Association.


                                                   Sixth Meeting Agenda                                                                    Status

Changes in the Composition of the Company’s Management                                                                                 Realized

The total of Shareholders submitting Questions and/or providing opinions was 1 (one) people.

Voting Results
In Favor : 11.896.417.553 shares (94,070%) consisting of Series A: 11.829.395.753 shares and Series B: 67.021.800 shares

Against : 748.860.300 shares (5,921%) consisting of Series A: 32.660.478 shares and Series B: 716.199.822 shares

Abstain : 936.800 shares (0,007%) which were all Series B shares

Decision
1. Honorably discharging members of the Board of Commissioners and members of the Sharia Supervisory Board whose their
   term of office has ended, as follows:
   Independent Commissioner         : Muhammad Mas’ud
   Commissioner                     : Heru Tjahjono
   Sharia Supervisory Board         : KH Affifudin
   Sharia Supervisory Board         : Saad Ibrahim
   as of the closing of this Meeting with the greatest gratitude to them.
2. Approving and nominating the Company’s Management, consisting of the Board of Commissioners, the Board of Directors,
   and Sharia Supervisory Board, as follows:
   a. Independent Commissioner : Muhammad mas’ud
      Commissioner                  : Adhy Karyono*
      Starting from the closing of this Meeting with a term of office until the closing of the 4th (Fourth) Annual General Meeting
      of Shareholders since their nomination date, or after their substitute have passed compliance and performance assessment
      by the Financial Services Authority.
      *applicable since passing compliance and performance assessment by the Financial Services Authority.
   b. Director of Compliance        : Tony Prasetyo
      Starting from the closing of this Meeting with a term of office until the closing of the 1st (First) Annual General Meeting of
      Shareholders since their nomination date, or after their substitute have passed compliance and performance assessment
      by the Financial Services Authority.
      *applicable since passing compliance and performance assessment by the Financial Services Authority.




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                                                    Sixth Meeting Agenda                                                                    Status

    c. Director of Operations          : Arif Suhirman                                                                                  Realized
       Starting from the closing of this Meeting with a term of office until the closing of the 5th (Fifth) Annual General Meeting of
       Shareholders since their nomination date, or after their substitute have passed compliance and performance assessment
       by the Financial Services Authority.
       *applicable since passing compliance and performance assessment by the Financial Services Authority.
    d. Sharia Supervisory Board      : KH Affifudin
       Sharia Supervisory Board      : Sukadiono*
       Starting from the closing of this Meeting with a term of office until the closing of the 4th (Fourth) Annual General Meeting
       of Shareholders.
       *applicable after obtaining recommendations from National Sharia Supervisory Board-the Ulema Council of Indonesia and
       receiving approval from the Financial Services Authority.
 3. GMS grants power to the Board of Commissioners to make structural division of Head and Member of Sharia Supervisory
    Board.
    Hence, the composition of the Company’s Management consists of:
       Board of Commissioners
       President Commissioner			                            : Suprajarto
       Independent Commissioner			                          : Muhammad Mas’ud
       Independent Commissioner			                          : Sumaryono
       Independent Commissioner			                          : Candra Fajri Ananda
       Independent Commissioner			                          : Adhy Karyono

      Board of Directors		
      President Director			                                 : Busrul Iman
      Director of Micro, Retail, and Medium 		              : R. Arief Wicaksono
      Director of Compliance 			                            : Tonny Prasetyo
      Director of Finance, Treasury & Global Services       : Edi Masrianto
      Director of Operations			                             : Arif Suhirman
      Director of IT & Digital			                           : Zulhelfi Abidin
      Director of Risk Management		                         : Eko Susetyo

      Sharia Supervisory Board
      Sharia Supervisory Board			                           : KH. Affifudin
      Sharia Supervisory Board			                           : Sukadiono

 4. Granting power to the Board of commissioners to stipulate remuneration of the Board of Directors appointed until the
    notification of the results of compliance and performance assessment of the Financial Services Authority by considering
    recommendations from Remuneration and Nomination Committee.
 5. Granting power and authority to the Board of Directors with the right of substitution to carry out all necessary process and
    actions, including notification of the regulations as required in the applicable laws and regulations.




Implementation of Annual GMS For Fiscal Year 2021 and Its Realization


         Information                     Announcement                         Invitation            Implementation                 GMS Results

 Notifying the Financial Services   Advertising announcement       Advertising announcement       Held on March 17,          - Submission of the
 Authority that a meeting would     regarding the Invitation       regarding the Invitation       2022, at the Bank            Summary of Minutes to
 be held with the letter number:    of the Meeting to              of the Meeting to              Jatim Head Office            the Financial Services
 061/040/DIR/CSE/SRT                Shareholders in Indonesian     Shareholders in Indonesian                                  Authority number
                                    Stock Exchange website,        Stock Exchange website,                                     061/072/DIR/CSE/Srt
                                    PT. Kustodian Sentral          PT. Kustodian Sentral                                       date March 21, 2022
                                    Efek Indonesia website         Efek Indonesia website                                    - Submission of Minutes
                                    and Company website            and Company website on                                      to the Financial Services
                                    on February 8, 2022.           February 23, 2022. Calls                                    Authority number
                                    Announcements are              are delivered in Indonesian                                 061/083/DIR/CSE/Srt
                                    delivered in Indonesian and    and English.                                                date April 5, 2022
                                    English



Vote Counting Independent Parties

The Company appointed independent parties, namely Notary Sitaresmi Puspadewi Subianto and and PT Datindo Entrycom in
calculating and/or validating votes.




                                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                    Annual Report 2023               329
Page 332
Attendance Recapitulation at The Annual GMS for Fiscal Year 2021

The Board of Commissioners and Directors of Bank Jatim who attended the 2021 Annual GMS are as follows.


  No.                         Name                                                    Position                                       Attandance

 1.        Muhammad Mas’ud                                Independent Commissioner                                                     Present

 2.        Candra Fajri Ananda                            Independent Commissioner                                                     Present

 3.        Heru Tjahjono                                  Commissioner                                                                 Present

 4.        Busrul Iman                                    President Director, Pgs. Director of Commercial & Corporate                  Present

 5.        Erdianto Sigit Cahyono                         Director of Compliance and Risk Management                                   Present

 6.        Tonny Prasetyo                                 Director of IT and Operations                                                Present

 7.        Rizyana Mirda                                  Director of Business Risk                                                    Present




Decisions and Realization of the Annual GMS for Fiscal Year 2021


                                                    First Meeting Agenda                                                                  Status

 Approval of the Company’s Annual Report regarding the Condition and Operation of the Company during the 2021 Financial                   Realized
 Year, including the Report on the Implementation of the Supervisory Duties of the Board of Commissioners during the 2021
 Financial Year and the Ratification of the Company’s Financial Statements for the 2021 Financial Year.

 There were no Shareholders asking Questions and/or providing opinions

 Voting Result

 Setuju : 13.076.836.318 Saham (99,941%) consisting of 11.934.147.982 Series A shares and 1.142.688.336 Series B shares

 Against : 7.200 shares (0,0000550%) %) which are all Series B Shares

 Abstain : 7.704.976 saham (0,058%) which are all Series B Shares

 Decision
 1. Approve and certify:
    a. The Company’s Annual Report that has been submitted by the Board of Directors for the 2021 Fiscal Year;
    b. Supervisory Task Report that has been submitted by the Board of Commissioners for Fiscal Year 2021;
    c. Laporan The Company’s Financial Statements for the financial year ended December 31, 2021 which have been audited by
       the Public Accounting Firm of Kanaka Puradiredja, Suhartono in accordance with the Independent Auditor’s Report dated
       January 31 (thirty one), 2022 (two thousand twenty two), with a Fair opinion in all material respects.
 2. With the approval and ratification of the Annual Report, Report on the Supervisory Duties of the Board of Commissioners
    and the Company’s Financial Statements for the 2021 Financial Year, the Meeting granted full discharge and release from
    responsibilities (acquit et de charge) to all members of the Board of Directors for management actions and to all members of
    the Board of Directors. Commissioner for supervisory actions that have been carried out during the financial year ending on
    December 31, 2021 to the extent of such actions reflected in the Company’s Financial Statements.


                                                  Second Meeting Agenda                                                                   Status

 Determination of the use of the Company’s net profit for the financial year 2021 including the provision of bonuses for employees        Realized
 as well as bonuses and remuneration for the Board of Directors and the Board of Commissioners.

 There were no Shareholders who asked questions and/or gave opinions.

 Voting Results

 In Favor : 12.887.092.412 shares (98,490%) consisting of 11.934.147.982 Series A shares and 952.944.430 Series B shares.

 Against : 197.062.282 shares (1,506%) which are all Series B Shares

 Abstain : 393.800 shares (0,003%) which are all Series B Shares




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                                                    Second Meeting Agenda                                                                   Status

Decision
1. Approved the Allocation of Compaby Profits for the Fiscal Year 2020 as follows:
   a. In the amount of IDR782.457.605.053,02 (seven hundred eighty two billion four hundred fifty seven million six hundred five
      thousand fifty three point zero two) or 51,37% (fifty one point thirty seven percent) of the net profit for the Fiscal Year 2021 is
      designated as cash dividends for the Fiscal Year 2021. Consequently, an amount of IDR52.11 (fifty two point eleven rupiah)
      per share is established as cash dividends for the Fiscal Year 2021, to be distributed in cash to all shareholders recorded
      in the Company’s Shareholder Registry as of March 29, 2022, and will be paid on April 14, 2022. Furthermore, hereby
      empowering and authorizing the Board of Directors to arrange the procedures for the payment of such cash dividends.
   b. In the amount of IDR740.612.233.364,98 (seven hundred forty billion six hundred twelve million two hundred thirty three
      thousand three hundred sixty four point ninety eight) or 48,63% (forty eight point sixty three percent), designated as
      General Reserve.
2. Furthermore, in accordance with the provisions of the applicable Financial Accounting Standards Regulation, we propose the
   approval of the distribution of employee bonuses and directors’ bonuses (tantiem) for the Company’s Management, namely
   the Board of Directors and the Board of Commissioners, along with those who assist the tasks of the Board of Commissioners,
   including the Sharia Supervisory Board for the Fiscal Year 2021, to be allocated in the amount of IDR380.767.459.605,00
   (three hundred eighty billion seven hundred sixty seven million four hundred fifty nine thousand six hundred five rupiahs). The
   distribution percentage remains the same as the previous year and is as follows:
   a. Employee bonus of 85% (eighty-five percent);
   b. The Tantiem of the Company’s Management, namely the Board of Directors and the Board of Commissioners along with
      those who assist the duties of the Board of Commissioners including the Sharia Supervisory Board, is 15% (fifteen percent).
      Of this amount will be paid in cash, and in accordance with the provisions of POJK Number 45/POJK.03/2015 specifically
      for the Board of Commissioners and the Board of Directors there are bonuses that will be suspended in the form of cash
      and shares through the Long Term Incentive program.
3. Granting authority and power to the Board of Commissioners to determine the remuneration of the Company’s management,
   namely the Board of Directors and the Board of Commissioners together with those who assist the duties of the Board of
   Commissioners including the Sharia Supervisory Board in 2022 by taking into account the proposals from the Remuneration
   and Nomination Committee and reporting on the Annual Report.


                                                     Third Meeting Agenda                                                                   Status

Granting Power of Attorney to the Board of Commissioners to Appoint a Public Accounting Firm to Audit the Company’s                         Realized
Financial Statements for the 2022 Financial Year.

There were no Shareholders who asked questions and/or gave opinions.

Voting Results

In Favor : 12.740.945.786 shares (97,373%) consisting of 11.934.147.982 Series A Shares and 806.797.804 Series B Shares

Against: 343.215.408 shares (2,623%) which are all Series B Shares

Abstain : 387.300 shares (0,002%) which are all Series B Shares

Decision
Approved to grant authorization to the Board of Commissioners to appoint a public accounting firm to audit the company’s
financial statements for the 2022 financial year.


                                                    Fourth Meeting Agenda                                                                   Status

Changes in the Composition of the Company’s Management                                                                                      Realized

The number of shareholders who asked questions and/or gave opinions was 1 person.

Voting Results

In Favor : 12.610.256.158 Shares (96,375%) consisting of 11.893.555.054 Series A Shares and 716.701.104 Series B Shares

Against: 401.695.608 shares (3,069%) which are all Series B Shares

Abstain : 72.596.728 shares (0,554%) consisting of 40.592.928 Series A Shares and 32.003.800 Series B Shares




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                                                   Fourth Meeting Agenda                                                                    Status

 Decisions
 1. Approving and appointing members of the Board of Commissioners effective from the conclusion of this meeting, with their term
    of office ending at the close of the 4th Annual General Meeting of Shareholders following their appointment date, namely:
    President Commissioner			                                : SUPRAJARTO;
    Independent Comissioner			                               : SUMARYONO;
 2. Approving and appointing members of the Board of Directors effective from the conclusion of this meeting, with their term of
    office ending at the close of the 5th Annual General Meeting of Shareholders following their appointment date, namely:
    Director of Commercial and Corporate		                   : EDI MASRIANTO;
    Director of Consumer Retail and Sharia Business          : R. ARIEF WICAKSONO
 3. Honorably dismissing the members of the Board of Directors effective immediately upon the conclusion of the meeting,
    expressing sincere appreciation for their significant contributions of effort and ideas during their tenure as directors, namely:
    Director of Business Risk 			                            : RIZYANA MIRZA ;
    Director of Finance         			                          : FERDIAN TIMUR SATYAGRAHA

   Thus, the composition of the Board of Commissioners was as follows:
   The Board of Commisioners
   President Commisioner        			                    : SUPRAJARTO;
   Independent Commisioner 			                         : MHAMMAD MAS’UD;
   Independent Commisioner 			                         : CANDRA FAJRI ANANDA;
   Independent Commisioner           		                : SUMARYONO;
   Commissioner                        		              : HERU TJAHJONO;

    Directors
    President Director				                                    : BUSRUL IMAN;
    Director of Compliance and Risk Management                : ERDIANTO SIGIT CAHYONO;
    Director of IT and Operations			                          : TONNY PRASETYO;
    Director of Commercial and Corporate		                    : EDI MASRIANTO
    Director of Consumer Retail and Sharia Business           : R. ARIEF WICAKSONO;
    Director of Finance              			                      :-
    Director of Risk Management           		                  :-
 4. Granting authority to the Governor of East Java to conduct the selection of candidates for the Company’s management whose
    terms have expired and/or in the event of a vacancy in a position.
 5. Regarding the appointment to fill the vacant position of a member of the Board of Directors, approval will be sought at the
    upcoming General Meeting of Shareholders to be convened by the Company, considering the current conditions. This may
    extend beyond the time limit stipulated in the Company’s Articles of Association for the appointment of a vacant position on
    the Board of Directors.
 6. Granting authority to the Board of Commissioners to assign responsibilities to the existing Directors.
 7. Granting authority and power to the Board of Directors with substitution rights to carry out all processes and actions necessary,
    including notifications to regulatory authorities as required by applicable laws and regulations.



Implementation of The Extraordinary GMS In 2022 and Its Realization


         Information                     Announcement                      Invitation               Implementation                  GMS Result

 Notification of the meeting        Advertise the                  Advertise the Invitation to    Held on December           - Submission of the
 to be held to the Financial        announcement regarding         the Shareholders on the        7, 2022, at the Bank         Summary of Minutes to
 Services Authority with letter     the Invitation of Meeting      Indonesia Stock Exchange       Jatim Head Office            the Financial Services
 number: 061/315/DIR/CSE/ Srt       to the Shareholders on the     website, PT KSEI website,                                   Authority number
                                    website of the Indonesia       the Company’s website on                                    061/408/ DIR/CSE/Srt
                                    Stock Exchange, website of     November 15, 2022. Calls                                    December 8, 2022
                                    PT Kustodian Sentral Efek      are delivered in Indonesian                               - Submission of Minutes
                                    Indonesia, website of the      and English.                                                to the Financial Services
                                    Company on October 31,                                                                     Authority number
                                    2022. Announcements are                                                                    061/432/DIR/CSE/Srt
                                    delivered in Indonesian and                                                                December 27, 2022
                                    English



Vote Counting Independent Parties

The Company appointed independent parties, namely Notary Sitaresmi Puspadewi Subianto and and PT Datindo Entrycom in
calculating and/or validating votes.




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Attendance Recapitulation at The 2022 Extraordinary GMS

The Board of Commissioners and Directors of Bank Jatim presented at the 2022 Extraordinary GMS were as follows.


  No.                        Name                                                  Position                                       Attandance

 1.        Suprajarto                                    President Commissioner                                           Present

 2.        Muhammad Mas’ud                               Independent Commissioner                                         Present

 3.        Candra Fajri Ananda                           Independent Commissioner                                         Present

 4.        Sumaryono                                     Independent Commissioner                                         Present

 5.        Heru Tjahjono                                 Commissioner                                                     Present

 6.        Busrul Iman                                   President Director                                               Present

 7.        Tonny Prasetyo                                Director of IT and Operation                                     Present

 8.        Edi Masrianto                                 Director of Commercial & Corporate                               Present

 9.        R. Arief Wicaksono                            Director of Consumer, Retail and Sharia Business                 Present



Decision and Realization of The Extraordinary GMS In 2022


                                                   First Meeting Agenda                                                                Status

 Changes in the Composition of the Company’s Management                                                                               Realized

 The number of shareholders who asked questions and/or gave opinions was 2 people.

 Voting Results

 In Favor : 12.197.602.356 Shares (96,21%) consisting of 11.651.177.942 Series A Shares and 546.424.414 Series B shares

 Against : 263.558.908 shares (2,07%) which are all Series B Shares

 Abstain : 215.795.795 shares (1,70%) consisting of 215.763.995 Series A Shares and 31.800 Series B shares

 Decision
 Changes in the Composition of the Company’s Management
 1. Approve and appoint members of the Board of Directors as of the close of the Meeting with the term of office ending at the
    close of the 5th (fifth) Annual General Meeting of Shareholders from the date of appointment, namely:
    — Mr. ZULHELFI ABIDIN as IT and Digital Director;
    — Mr. EKO SUSETYONO as Director of Risk Management;
 2. Respectfully dismiss Mr. ERDIANTO SIGIT CAHYONO from his position as Director of Compliance and Risk Management as
    of the closing of the Meeting with thanks for the contribution of energy and thoughts given while serving in the Company.
    With the changes above, the composition of the Board of Directors was adjusted to the change in the nomenclature of the
    Board of Directors in the Company’s Organizational Structure as follows:

    Direksi
    President Director                    		                  : BUSRUL IMAN;
    Director of Micro, Retail & Medium 		                     : R. ARIEF WICAKSONO;
    Compliance Director                      		               :-
    Director of Finance, Treasury & Global Services           : EDI MASRIANTO;
    Director of Operations                 		                 : TONNY PRASETYO;
    IT & Digital Director                    		               : ZULHELFI ABIDIN;
    Director of Risk Management			                            : EKO SUSETYONO.
 3. Grant power of attorney to the Board of Commissioners to distribute the duties of vacant Directors to existing Directors.
 4. Grant power and authority to the Board of Directors with the right of substitution to carry out all necessary processes and
    actions, including notifications to the regulators as required in the applicable laws and regulations.




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                                                                         out all actions in every event, both regarding management
Board of Directors                                                       and ownership.
                                                                     5. The Board of Directors in writing may hand over the power
The Board of Directors is an organ of the Company which is               of representing the Bank to a person or several members
authorized and responsible for carrying out all actions related          of the Board of Directors specifically appointed or to one
to the management and ownership of the Bank for the interest             or more Bank employees, either alone or together or to
of the Bank in accordance with the Bank’s aims and objectives.           another person or entity.
                                                                     6. The division of management tasks and authorities among
Duties and Responsibilities of The Board of                              the members of the Board of Directors is determined based
Directors                                                                on a decision of the GMS, in the event that the GMS does
                                                                         not stipulate, the distribution of duties and authority of the
The duties and responsibilities of the Board of Directors were           members of the Board of Directors is determined based on
stipulated in the Board of Directors Work Guidelines. The duties         the decision of the Board of Directors.
and responsibilities of the Board of Directors are as follows:       7. The Board of Directors based on applicable legislation can
1. The Board of Directors is in charge of running and being              do the following:
    responsible for the management of the Company for the                a. Issue bonds.
    benefit of the Company in accordance with the aims and               b. Buy, sell or otherwise obtain or release rights to
    objectives of the Company as stipulated in the Articles                   inventory items belonging to the bank.
    of Association, including reviewing, monitoring and                  c. Binding the Bank as a guarantor of third party obligations.
    supervising the Company’s strategy.                                  d. Mortgaging Bank goods.
2. Each member of the Board of Directors must carry out                  e. Equity participation in other companies insofar as they
    their duties and responsibilities in good faith, with full                do not conflict with applicable laws and regulations.
    responsibility and prudence.                                         f. Set up new business units.
3. Each member of the Board of Directors is jointly and              8. The Board of Directors for certain actions has the right to
    severally responsible for the loss of the issuer or public           appoint one or more representatives or proxies by giving
    company caused by errors or negligence of the members                him the power regulated in a power of attorney. Members
    of the Board of Directors in carrying out their duties.              of the Board of Directors are prohibited from giving general
4. Members of the Board of Directors cannot be held liable               power of attorney to other parties which results in the
    for the loss of the issuer or company if it can prove:               transfer of duties and functions of the Board of Directors.
    a. The loss is not due to an error or negligence.                9. In terms of the Company has contrary interests to the
    b. Has carried out management in good faith, full of                 personal interests of the Board of Directors member, then
         responsibility and prudence for the interests and in            the Company will be represented by another member of the
         accordance with the aims and objectives of the Company.         Board of Directors and in the event that the Company has
    c. Has no conflict of interest, either directly or indirectly,       an interest that is contrary to the interests of all members
         over management actions that result in losses.                  of the Board of Directors, in this case the Company is
    d. Has taken steps to prevent the loss from arising or               represented by the Commissioner.
         continuing.                                                 10. The Board of Directors has the right to write off claims on
                                                                         interest, fines and / or other costs other than the principal
Rights and Authority of The Board of Directors                           amount of credit while adhering to the prevailing laws and
                                                                         regulations.
The rights and authority of the Board of Directors are as follows:   11. The Board of Directors had the right to receive remuneration
1. Members of the Board of Directors are given a salary                  as a reward determined and given to members of the
   including the facilities and/or allowances. The amount                Board of Directors, both permanent and variable, in cash
   of salary along with the facilities and/or allowances of              or in cash in accordance with their duties, powers and
   members of the Board of Directors is determined based on              responsibilities.
   the resolution of the GMS and the authority of the GMS is
   delegated to the Board of Commissioners.                          Term of Office of The Board of Directors
2. The Board of Directors appoints and dismisses the Bank’s
   employees based on the Bank’s employment regulations              The term of office of members of the Board of Directors
   and prevailing laws and regulations.                              Directors is a maximum of 5 (five) years from the date specified
3. The Board of Directors determines the organizational              in the GMS of appointment and ends at the close of the 5th
   structure and work procedures of the Bank by reporting to         (fifth) Annual GMS after the date of appointment or until
   the commissioners.                                                the closing of the Annual GMS at the end of 1 (one) term of
4. The Board of Directors has the right to represent the             office, unless stipulated otherwise in the GMS, and may be
   company, both inside and outside the court on all matter,         reappointed for a second term if they have demonstrated
   bind the company with other parties and vice versa, conduct




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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good performance by achieving the targets set by the General            - Loyal and obedient to the state and government of
Meeting of Shareholders for each Director, without prejudice              the Republic of Indonesia.
to the rights of the General Meeting of Shareholders to dismiss        - Not involved directly or indirectly in treasonous
them at any time based on reasons specified in the Articles of            activities to the Republic of Indonesia.
Association.                                                              Individuals who are capable of carrying out legal
                                                                          actions, unless within 5 (five) years prior to the
Requirements for The Board of Directors                                   appointment the person concerned has:
                                                                    - Declared bankrupt.
Structure and Membership                                            - Being a member of the Board of Directors or Board
1. The Company is managed and led by a Board of Directors              of Commissioners who is found guilty of causing a
   consisting of at least 3 (three) Directors, one of whom is          company to be declared bankrupt
   appointed as President Director.                                 b. Material Terms
2. The members of the Board of Directors are appointed and             - Having competence, good moral integrity. The
   dismissed by the GMS.                                                  person concerned had never been involved in:
3. Detailed procedures for the appointment of members of                  • Engineering acts and deviant practices in
   the Board of Directors will be stated in a resolution of the                the management of the company/institution
   GMS.                                                                        where the person concerned worked prior to
                                                                               nomination (behaving dishonestly).
General Requirement                                                       • Acts of default in accordance with the
                                                                               commitments that had been agreed with
To be appointed as a member of the Board of Directors, the                     the company/institution where the person
following requirements are met:                                                concerned works prior to nomination.
1. Healthy as physically and spiritually.                                 • Actions categorized as being able to provide
2. Have expertise, integrity, leadership, experience, honesty,                 unlawful benefits in the company/institution
     good behavior, and high dedication to advancing and                       where the person concerned works prior to
     developing the company.                                                   nomination.
3. Understand the implementation of regional government.                  • Acts categorized as a violation of the provisions
4. Understand the management of the company.                                   relating to the principles of healthy company
5. Have adequate knowledge in the field of business of the                     management (bad behavior).
     company.                                                          - Having expertise in banking or financial institutions,
6. The minimum degree is Strata I (S-1).                                  as evidenced by a track record of at least the last 5
7. Minimum 5 (five) years of work experience in the managerial            (five) years and attach a photocopy of a certificate
     field of a legal entity company and has led a team.                  from training in banking or financial institutions that
8. Never been a member of the Board of Directors, member                  the person had attended.
     of the Supervisory Board, or member of the Board of               - The majority of members of the Board of Directors
     Commissioners who was found guilty of causing the                    must have at least 5 (five) years of experience in
     business entity to be led to be declared bankrupt.                   the operational field, the lowest being a bank
9. Never been punished for committing a crime that was                    executive officer.
     detrimental to state finances or regional finances.               - Having a high commitment to the progress
10. Not currently undergoing criminal sanctions.                          and development of the company as well as a
11. Not being an administrator of a political party, candidate            commitment to comply with laws and regulations.
     for regional head or candidate for deputy regional head,          - Did not have non-performing credit/bad credit.
     and/or candidate for member of the legislature.                   - Having a risk management competency test
12. Not a member of the Indonesian National Army Forces,                  certificate level 5 (five), by attaching a BSMR/
     Indonesian National Police, and/or Civil Servant, except for         LSPP certificate. Candidates who had level 4
     Civil Servants assigned as temporary Directors as regulated          (four) certificates could register and immediately
     in East Java Provincial Regulation Number 8 of 2019                  complete BSMR/LSPP level 5 (five) to get approval
     concerning Regional Owned Enterprises.                               from the Financial Services Authority.
13. Has fulfilled 3 (three) kinds of requirements, namely              - Psychologically, the person concerned had an
     Formal Requirements, Material Requirements, and Other                adequate level of Intellectual, emotional, and
     Requirements, among others:                                          spiritual intelligence to carry out the duties as a
     a. Formal Terms                                                      member of the Board of Directors.
          Indonesian Citizens who:
          - Trust in the Almighty God.




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   Annual Report 2023      335
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    c.  Other Terms                                                  Board of Directors Guidelines and Work
        - Willing to comply with the prevailing laws and             Procedures
             regulations, especially in the banking sector.
        - Having no family relationship up to the second             The Board of Directors has a Board Charter for the Board of
             degree including fellow members of the                  Directors as referred to in Decree of the Board of Directors
             Board of Directors or members of the Board of           Number 056/006/DIR/CSE/KEP dated January 17, 2017
                                                                     concerning the Work Guidelines for the Board of Directors of
             Commissioners.
                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk which until
        - Passing the fit and proper test in accordance with
                                                                     2021 was last amended by Decree of the Board of Directors
             the provisions of the Financial Services Authority
                                                                     Number 057/206/ DIR/CSE/KEP dated February 9, 2021,
             regarding the fit and proper test.                      2021 concerning the Fourth Amendment to the Decree of the
14. Candidates for the Board of Directors may come from              Board of Directors of PT Bank Pembangunan Daerah Jawa
    Internal and/or external Bank Jatim.                             Timur Tbk Number 056/006/ DIR/CSE/ KEP dated January 17,
    a. Candidates for the Board of Directors from the Bank’s         2017 concerning the Work Guidelines for the Directors of PT
        internal parties must meet the following requirements:       Bank Pembangunan Daerah Jawa Timur Tbk. This guideline
        - Active executive officers who were one level below         is evaluated periodically and updated with reference to the
             the Board of Directors.                                 prevailing rules and regulations.
        - Serving at least 2 (two) different executive positions.
                                                                     The Board of Directors work guidelines and procedures are
    b. For candidates for directors from external parties, the
                                                                     binding for each member of the Board of Directors so that
        Bank must meet the following requirements:
                                                                     the Board of Directors can carry out the management of the
        - Having experience as a professional by serving as
                                                                     Company efficiently, effectively, transparently, independently and
             an Executive Officer in a Bank/Non-Bank financial       accountably. The basis for the preparation of the guidelines for the
             institution that operates nationally and/or has         work rules of the Board of Directors is the Law of the Republic of
             assets at least equal to the assets of Bank Jatim for   Indonesia No. 40 of 2007 concerning Limited Liability Companies,
             the last 5 (five) years.                                OJK Regulations relating to the Board of Directors and Board of
        - Having knowledge and/or expertise in the field             Commissioners of Issuers or Public Companies, the Company’s
             required by the Issuer or Public Company                Articles of Association and other regulations.
15. Having a good financial track record as evidenced by
    documents that have been issued by the authorized agency.        The contents of the Board of Directors work code of conduct
                                                                     include the following:

Special Requirements
                                                                     Governance Structure
The members of the Board of Directors who will be appointed          1. Organizational Structure of the Board of Directors
must meet special requirements, the details of which will be         2. Functions of the Board of Directors
outlined in a GMS resolution. The company could develop special      3. Functions of the Board of Directors
requirements which were details of competence and other things       4. Duties, Obligations, Authorities, Responsibilities
required for prospective members of the Board of Directors
                                                                     5. Independence and Independence of the Board of Directors
according to the needs of the company which would then be
submitted and stated in the resolution of the GMS;
                                                                     Governance Process
1. Never been a member of the Board of Directors and/or a
     member of the Board of Commissioners who during the             1. Position Ethics for the Board of Directors
     tenure:                                                         2. Description of the responsibilities of the Board of Directors
     a. Never holding an annual GMS.                                 3. Directors’ rights
     b. The responsibilities as a member of the Board                4. Determination of the Company Management Policy for the
         of Directors and/or a member of the Board of                    Board of Directors
         Commissioners had never been accepted by the GMS            5. Delegation of Authority among the Directors of the
         or had not provided accountability as a member of the           Company
         Board of Directors and/ or a member of the Board of         6. Division of duties of the Board of Directors
         Commissioners to the GMS.
                                                                     7. Procedures related to the Division of Duties of the Board of
     c. Having caused a company obtaining a permit,
                                                                         Directors
         approval, or registration from the financial services
                                                                     8. Board of Directors Meeting
         authority to fail fulfilling the obligation to submit an
         annual report and/or financial report to the Financial      9. Board of Directors Committee
         Services Authority.                                         10. Working relationship between the Board of Commissioner
2. Especially for candidates for Directors proposed to be                and the Board of Directors
     candidates for President Director were officials who had        11. Capabilities Orientation and Improvement Program
     one level below the President Director and were still active
     as Directors of National Commercial Banks and/or had            Governance Outcome
     assets at least equal to the assets of Bank Jatim.              1. Report
                                                                     2. Document Distribution


         PT Bank Pembangunan Daerah Jawa Timur Tbk
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Duties of the Board of Directors

The Duties of the Board of Directors are as follows.


Table of Duties of the Board of Directors

         Name                        Position                     Term of Office in 2023                                 Task field

 Busrul Iman                President Director             January 1, 2023 – present                  Coordinating activities implementation of:
                                                                                                      - SEVP Corporate, Syndication, and Institutional
                                                                                                      - SEVP Banking Consumer
                                                                                                      - SEVP Sharia Business Unit
                                                                                                      - SEVP Corporate Transformation
                                                                                                      - SEVP Network and Services
                                                                                                      - Corporate Secretary
                                                                                                      - Audit Internal Division

 Tonny Prasetyo             Pgs. Director of               January 1, 2023 – May 26, 2023             Coordinating activities implementation of:
                            Compliance                                                                - Compliance & AML-CFT Division
                                                                                                      - Legal Division
                            Director of Compliance         May 26, 2023– present                      - Policy and Procedure Division

 Zulhelfi Abidin            Director of IT & Digital       January 1, 2023 – present                  Coordinating activities implementation of:
                                                                                                      - IT Division
                                                                                                      - Digital Banking Division
                                                                                                      - Security IT Unit

                            Pgs. Director of               April 12, 2023 – October 11, 2023          Coordinating activities implementation of:
                            Operation                                                                 - Operational Division
                                                                                                      - General Division
                                                                                                      - Product Development Division
                                                                                                      - Credit Administration Unit

 Edi Masrianto              Director of Finance,           January 1, 2023 – present                  Coordinating activities implementation of:
                            Treasury                                                                  - Accounting and Financial Management Division
                            and Global Services                                                       - Treasury Division
                                                                                                      - International Banking Division


 R. Arief Wicaksono         Director of Micro, Retail      January 1, 2023 – present                  Coordinating activities implementation of:
                            & Medium                                                                  - Retail and Medium Credit Division
                                                                                                      - Micro Credit Division

 Eko Susetyono              Director of Risk               January 1, 2023– present                   Coordinating activities implementation of:
                            Management                                                                - Risk Management Division
                                                                                                      - Credit Risk Analysis Division
                                                                                                      - Credit Recovery and Settlement Division

 Arif Suhirman*             Director of Operation          October 11, 2023 – present                 Coordinating activities implementation of:
                                                                                                      - Operational Division
                                                                                                      - General Division
                                                                                                      - Product Development Division
                                                                                                      - Credit Administration Unit

 *Appointed at the 2022 Annual GMS on April 12 2023, and effective from October 11 2023.



Policy of Concurrent Position of Board of Directors

As a commercial bank, Bank Jatim was also guided by the
Financial Services Authority Regulation Number 17 in 2023                                  c.in other positions that may create conflicts of interest
concerning the Implementation of Governance for Commercial                                   in the execution of duties as members of the Board of
Banks, which regulated, among others:                                                        Directors; and/or
1. Members of the Board of Directors are prohibited from                                 d. in other positions in accordance with the provisions of
    holding concurrent positions:                                                            laws and regulations.
    a. as a member of the Board of Directors, member of                               2. It does not include concurrent positions as referred to in
        the Board of Commissioners, member of the Sharia                                 paragraph (1) in the event that the Board of Directors:
        Supervisory Board, or Executive Officer at a bank,                               a. are responsible for supervising the Bank’s investments
        company and/or other institution.                                                    in subsidiary companies, performing functional duties
    b. in functional task areas in banking and/or non-banking                                as a member of the Board of Commissioners in non-
        financial institutions domiciled domestically or abroad;                             bank subsidiary companies controlled by the Bank;


                                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                        Annual Report 2023         337
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    b. are responsible for supervising pension funds or                       as long as it does not result in the individual neglecting
       performing duties as a member of the Supervisory                       their duties and responsibilities as a member of the Bank’s
       Board of pension funds owned by the Bank;                              Board of Directors.
    c. carry out duties as the acting director of the Bank; and/           3. The majority of members of the Board of Directors were
       or                                                                     prohibited from having family relationships to the second
    d. occupy a position in a non-profit organization or                      degree with fellow members of the Board of Directors and/
       institution                                                            or with members of the Board of Commissioners.


 Table of Concurrent Position of Board of Directors

                                                                                           Position in Other
                                                                                                                     Name of Company /
                 Name                                    Position                         Companies/ Others
                                                                                                                      Other Agencies
                                                                                               Agencies

 Busrul Iman                        President Director                                -                          -

 Tonny Prasetyo                     Director of Compliance                            -                          -

 Zulhelfi Abidin                    Director of IT and Digital                        -                          -

 Edi Masrianto                                                                        -                          -
                                    Director of Finance, Treasury & Global Services
                                                                                                                 -

 R. Arief Wicaksono                 Director of Micro, Retail and Medium              -                          -


 Eko Susetyono                      Director of risk management                       -                          -

 Arif Suhirman                      Director of Operations                            -                          -


Management of Conflicts of Interest In The Board of Director


Conflict of interest arrangements had been determined through              Meeting of The Board of Directors
the Decree of the Board of Directors of PT Bank Pembangunan
Daerah Jawa Timur Tbk Number 059/222/DIR/KPT/KEP dated                     Meeting Policy
August 18, 2020 concerning Guidelines for Implementation of
Conflicts of Interest for PT Bank Pembangunan Daerah Jawa                  The policy of the Board of Directors’ Meeting of PT Bank
Timur Tbk. This conflict of interest regulation is intended so that        Pembangunan Daerah Jawa Timur Tbk is as follows:
the decisionmaking process and its implementation are carried              1. Financial Services Authority Regulation (POJK) Number
out in a manner of transparency, accountability, responsibility,              33/ POJK.04/2014 Date December 8, 2014 concerning the
independence and fairness, so that the interests of the Bank                  Board of Directors and Board of Commissioners of Issuers
and stakeholders are not harmed and can still be protected.                   or Public Companies;
                                                                           2. Directors Decree of PT Bank Pembangunan Daerah Jawa
In the event that the Bank has a conflict of interest with the                Timur Tbk Number 060/044/DIR/CSE/KEP dated February
personal interest of a member of the Board of Directors, the                  9, 2021, regarding the Fourth Amendment to Directors
Bank will be represented by another member of the Board                       Decree of PT Bank Pembangunan Daerah Jawa Timur Tbk
of Directors and in the event that the Bank has an interest                   Number 056/006/DIR/CSE/KEP dated January 17, 2017,
that conflicts with the interests of all members of the Board                 concerning the Director’s Work Guidelines of PT Bank
of Directors, in this case the Bank will be represented by the                Pembangunan Daerah Jawa Timur Tbk.
Board of Commissioners. In the event of a conflict of interest,
Members of the Board of Directors are prohibited from taking               In the Meeting of the Board of Directors, it is stipulated as
actions that may harm the Bank or reduce the Bank’s profits                follows:
and must disclose the conflict of interest referred to in every            1. The Board of Directors is required to hold a Board of
decision. The Board of Directors is not involved in making                      Directors Meeting periodically at least 1 (one) time in every
decisions on the Company’s operational activities, except for                   month and/ or every time.
the provision of funds to related parties and other matters                2. Meetings of the Board of Directors may be held if attended
stipulated in the Company’s Articles of Association or applicable               by a majority of all members of the Board of Directors.
laws and regulations.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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3. The presence of members of the Board of Directors at the                  5. Decision making in the Board of Directors Meeting is
   meeting must be disclosed in the Company’s annual report.                    based on deliberation and consensus. In the event that a
4. The Board of Directors must schedule a meeting for the                       consensus decision is not reached, the decision is made
   following year before the end of the financial year with the                 based on a majority vote.
   following conditions:                                                     6. The Board of Directors meeting is chaired by the President
   a. At the scheduled meeting, the meeting materials are                       Director, in the event that the President Director is absent
        submitted to the meeting participants no later than 5                   or unable to attend, the Board of Directors Meeting will
        (five) days before the meeting is held.                                 be chaired by a member of the Board of Directors who is
   b. In the event that a meeting is held outside the schedule                  elected by and from the members of the Board of Directors
        that has been prepared, the meeting materials are                       present.
        submitted to the meeting participants no later than
        before the meeting is held.


Board of Directors Meeting Plan


 No.                         Month                          Estimated Meeting Implementation                      Meeting Agenda

      1   January                                       Week 3                                            Performance Evaluation of Bank Jatim

      2   February                                      Week 3                                            Performance Evaluation of Bank Jatim

      3   March                                         Week 3                                            Performance Evaluation of Bank Jatim

      4   April                                         Week 3                                            Performance Evaluation of Bank Jatim

      5   May                                           Week 3                                            Performance Evaluation of Bank Jatim

      6   June                                          Week 3                                            Performance Evaluation of Bank Jatim

      7   July                                          Week 3                                            Performance Evaluation of Bank Jatim

      8   August                                        Week 3                                            Performance Evaluation of Bank Jatim

      9   September                                     Week 3                                            Performance Evaluation of Bank Jatim

  10      October                                       Week 3                                            Performance Evaluation of Bank Jatim

  11      November                                      Week 3                                            Performance Evaluation of Bank Jatim

  12      December                                      Week 3                                            Performance Evaluation of Bank Jatim

Agenda, Date and Participants of The Board of Directors Meeting

The Board of Directors meeting was held in accordance with policy. Meeting materials must be submitted no later than 5 (five) days.
Throughout 2022, the agenda, dates and participants of the Board of Directors Meeting are as follows.


 Table of Board of Directors Meeting

                                                                            Meeting
 No.              Date                       Agenda                                                 Presence         Reasons for Absence
                                                                           Participants

 1.       January 10, 2023     1. Financial Performance of Bank       Busrul Iman                     Present
                                  Jatim for the Period Ending
                                  December 31, 2022;                  Tonny Prasetyo                  Present
                               2. Adjustment to RBB;
                                                                      Zulhelfi Abidin                 Present
                               3. KPI of of the Board of Directors;
                               4. Audit Plan for the Year 2023.       Edi Masrianto                   Present

                                                                      R. Arief Wicaksono              Present

                                                                      Eko Susetyono                   Present

 2.       January 25, 2023     1. Results of the Implementation of    Busrul Iman                     Present
                                  Governance Self-Assessment for
                                  the December 2022 Period;           Tonny Prasetyo                  Present
                               2. Follow-up Meeting with OJK
                                                                      Zulhelfi Abidin                 Present
                                  on January 24, 2023 (5 Pillars of
                                  Transformation and RBB 2023)        Edi Masrianto                   Present
                               3. Procurement of Renovation for the
                                  Facade of Bank Jatim Head Office    R. Arief Wicaksono            Not Present            Official travel
                                  Building.
                                                                      Eko Susetyono                   Present


                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  Annual Report 2023         339
Page 342
                                                                         Meeting
 No.         Date                        Agenda                                         Presence      Reasons for Absence
                                                                        Participants

3.     February 14, 2023   1. The Board of Directors’              Busrul Iman            Present
                              Assessment of the Performance
                              of the Board Committees and          Tonny Prasetyo         Present
                              the Plan for Adjusting the
                                                                   Zulhelfi Abidin        Present
                              Membership Structure of the
                              Board Committees;                    Edi Masrianto          Present
                           2. Financial Performance of Bank
                              Jatim as of January 31, 2023;        R. Arief Wicaksono     Present
                           3. 5 Pillars of Transformation;
                           4. Digital Banking & Operasional        Eko Susetyono          Present
                              Fraud;
                           5. Follow-up on Findings from OJK,
                              BPK RI and KAP;
                           6. Renovation of the Facade of Bank
                              Jatim’s Head Office Building;
                           7. Progress in Employee Fulfillment
                           8. Follow-up on the Board of
                              Commissioners’ Directives in the
                              Joint Board of Directors and Board
                              of Commissioners Meeting on
                              January 12 & 13, 2023.

4.     February 22, 2023   Preparation for the 2022 Annual GMS     Busrul Iman            Present

                                                                   Tonny Prasetyo         Present

                                                                   Zulhelfi Abidin        Present

                                                                   Edi Masrianto          Present

                                                                   R. Arief Wicaksono     Present

                                                                   Eko Susetyono          Present

5.     March 28, 2023      1. Progress in Preparing for the        Busrul Iman            Present
                              AGMS of Bank Jatim for the Fiscal
                              Year 2022.;                          Tonny Prasetyo         Present
                           2. Progress in the 5 Pillars of
                                                                   Zulhelfi Abidin        Present
                              Transformation;
                           3. Prohire Recruitment to Fulfill       Edi Masrianto          Present
                              the Staffing Needs in the Credit
                              Recovery and Resolution Division.    R. Arief Wicaksono     Present

                                                                   Eko Susetyono          Present

6.     April 17, 2023      1. Financial Performance of Bank        Busrul Iman            Present
                              Jatim;
                           2. The program “Go Lower Go             Tonny Prasetyo       Not Present       Official travel
                              Better” by Bank Jatim (December
                              2023 Period);                        Zulhelfi Abidin        Present
                           3. Progress in Corporate Actions for
                                                                   Edi Masrianto          Present
                              Capital Injection in the Formation
                              of Bank Business Group (KUB).        R. Arief Wicaksono     Present

                                                                   Eko Susetyono          Present

7.     May 5, 2023         1. Financial Performance of Bank        Busrul Iman            Present
                              Jatim for the Period of April 2023
                              & Review Preparation (Branches’      Tonny Prasetyo         Present
                              performance);
                                                                   Zulhelfi Abidin        Present
                           2. Progress in the 5 Pillars of
                              Transformation.                      Edi Masrianto          Present

                                                                   R. Arief Wicaksono     Present

                                                                   Eko Susetyono          Present

8.     June 14, 2023       1. Financial Performance of Bank        Busrul Iman            Present
                              Jatim for the Period of May 2023;
                           2. Progress in the 5 Pillars of         Tonny Prasetyo         Present
                              Transformation.
                                                                   Zulhelfi Abidin        Present

                                                                   Edi Masrianto          Present

                                                                   R. Arief Wicaksono     Present

                                                                   Eko Susetyono          Present




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                       Meeting
No.         Date                       Agenda                                                  Presence        Reasons for Absence
                                                                      Participants

9.    July 13, 2023      1. Financial Performance of Bank        Busrul Iman                     Present
                            Jatim for the Period of June 2023;
                         2. Progress in the 5 Pillars of         Tonny Prasetyo                  Present
                            Transformation;
                                                                 Zulhelfi Abidin                 Present
                         3. Follow-up on Findings from BPK RI
                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

10.   August 1, 2023     Efforts in Achieving RBB                Busrul Iman                     Present

                                                                 Tonny Prasetyo                Not Present             Permit

                                                                 Zulhelfi Abidin                 Present

                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

11.   August 14, 2023    Financial Performance of Bank Jatim     Busrul Iman                     Present
                         for the Period of July 2023
                                                                 Tonny Prasetyo                  Present

                                                                 Zulhelfi Abidin                 Present

                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

12.   September 5,       1. Financial Performance of Bank        Busrul Iman                     Present
      2023                  Jatim for the Period of August
                            2023;                                Tonny Prasetyo                Not Present      Carrying out the Umrah
                         2. Bank Jatim’s Office Network.
                                                                 Zulhelfi Abidin                 Present

                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

13.   October 9, 2023    1. Financial Performance of Bank        Busrul Iman                     Present
                            Jatim for the Period of September
                            2023;                                Tonny Prasetyo                  Present
                         2. Progress on the Corporate Action
                                                                 Zulhelfi Abidin                 Present
                            Plan for Capital Investment.
                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

14.   October 23, 2023   Performance Progress                    Busrul Iman                     Present

                                                                 Tonny Prasetyo                  Present

                                                                 Zulhelfi Abidin                 Present

                                                                 Edi Masrianto                   Present

                                                                 R. Arief Wicaksono              Present

                                                                 Eko Susetyono                   Present

                                                                 Arif Suhirman                   Present

15.   November 6,        1. Presentation of RBB for the Year     Busrul Iman                     Present
      2023                  2024;
                         2. Financial Performance of Bank
                            Jatim for the Period of October
                            2023.
                                                                 Tonny Prasetyo                Not Present               Sick

                                                                 Zulhelfi Abidin                 Present

                                                                 Edi Masrianto                   Present




                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                             Annual Report 2023    341
Page 344
                                                                                     Meeting
  No.            Date                             Agenda                                                      Presence        Reasons for Absence
                                                                                    Participants

                                                                              R. Arief Wicaksono                Present

                                                                              Eko Susetyono                     Present

                                                                              Arif Suhirman                     Present

 16.        December 5,            1. Financial Performance of Bank           Busrul Iman                       Present
            2023                      Jatim for the Period of November
                                      2023;
                                   2. Progress of the Bank’s Business         Tonny Prasetyo                    Present
                                      Groups (KUB)
                                                                              Zulhelfi Abidin                   Present
                                   3. SOP of the Board of Directors;
                                   4. Issues related to Bumiputera Deed       Edi Masrianto                     Present
                                      of Sale and Purchase (AJB) AJB
                                      Bumiputera.                             R. Arief Wicaksono                Present

                                                                              Eko Susetyono                     Present

                                                                              Arif Suhirman                   Not Present             Leave


The agenda and meeting participants of the combined Board of Commissioners and the Board of Directors have been presented in
the Board of Commissioners’ Meeting section of the Corporate Governance Chapter of this annual report.


Frequency and Attendance of Meeting


 Table of Frequency and Attendance of Directors’ Meetings

                                                                                              Joint Meeting of the Board
                                                        Board of Directors Meeting            of Directors with the Board            GMS
                                                                                                    of Commissioner

                                        Term of         Number and Percentage of              Number and Percentage of      Number and Percentage of
       Name          Position                                 Attendance                            Attendance                    Attendance
                                        Office
                                                       Num-                                   Num-     Num-                 Num-     Num-
                                                                  Number
                                                       ber of                   Percent-      ber of   ber of    Percent-   ber of   ber of   Percent-
                                                                  of Atten-
                                                       Meet-                      age         Meet-    Atten-      age      Meet-    Atten-     age
                                                                   dance
                                                        ings                                   ings    dance                 ings    dance

 Busrul           President          January
 Iman             Director           1, 2023 –           16           16          100%          17       17        100%       1        1       100%
                                     Present

 Tonny            Director of        January 1,
 Prasetyo         Compliance         2023 – May          16           12           75%          17       16        94%        1        1       100%
                                     26, 2023

 Zulhelfi         Director of IT     January
 Abidin           & Digital          1, 2023 –           16           16          100%          17       17        100%       1        1       100%
                                     Present

 Edi              Director of        January
 Masrianto        Finance,           1, 2023 –
                  Treasury           Present             16           16          100%          17       16        94%        1        1       100%
                  & Global
                  Services

 R. Arief         Director of        January
 Wicaksono        Micro, Retail      1, 2023 –           16           15           94%          17       15        88%        1        1       100%
                  and Medium         Present

 Eko              Director           January
 Susetyono        of Risk            1, 2023 –           16           16          100%          17       14        82%        1        1       100%
                  Management         Present

 Arif                                October
                  Director of
 Suhirman*                           11, 2023 –           3            2           67%          2         2        100%       -        -         -
                  Operations
                                     Present

*Appointed at the 2022 Annual GMS on April 12 2023, and effective from October 11 2023.




            PT Bank Pembangunan Daerah Jawa Timur Tbk
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Training and/or Enhancement of The Competency of The Board of Directors Members

Bank Jatim has a policy that the Board of Directors always improves knowledge and insight by following developments in the
banking industry in particular and the business world in general so that it has a positive impact on Bank Jatim’s operations, one of
which is through education/training programs for increase competence. In order to improve the effectiveness of the performance
of the Board of Directors, capacity building was carried out such as seminars and/ or training. This became one form of governance
implementation for Commercial Banks related to the need that:
1. Members of the Board of Directors had adequate competence and were relevant to their positions to carry out their duties and
    responsibilities and were able to implement their competencies in carrying out their duties and responsibilities.
2. Members of the Board of Directors had the willingness and ability to carry out continuous learning in order to increase knowledge
    about banking and the latest developments related to the financial sector or other fields that support the implementation of their
    duties and responsibilities. jawab.


The training and/or competency improvement that has been attended by the Board of Directors during 2023 is as follows berikut.


                                                Types of Training and Competency             Implementation Time
      Name                Position                                                                                         Organizer
                                                 Development/ Training Materials                  and Place

 Busrul Iman       President Director         Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
                                              Leaders                                        2023/ Surabaya

                                              Risk Management Certification Refreshment      Friday, March 24, 2023/     SDG Consulting
                                              Program                                        Online

                                              Training Executive Sharia Banking              Tuesday, August 8, 2023/   Muamalat Institute
                                                                                             Surabaya

                                              GCG As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting and Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya

 Tonny Prasetyo    Director of Compliance     Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
                                              Leaders                                        2023/ Surabaya

                                              Workshop On Governance For Top                 Tuesday, February 14,       PT Synergi Daya
                                              Management                                     2023/ Surabaya                  Utama

                                              Program Refreshment/Penyegaran Sertifikasi     Friday, March 24, 2023/     SDG Consulting
                                              Manajemen Risiko                               Online

                                              Gcg As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting and Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya

 Zulhelfi Abidin   Director of IT & Digital   Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
                                              Leaders                                        2023/ Surabaya

                                              Program Refreshment/Penyegaran Sertifikasi     Friday, March 24, 2023/     SDG Consulting
                                              Manajemen Risiko                               Online

                                              GCG As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting and Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya

 Edi Masrianto     Director of Finance,       Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
                   Treasury & Global          Leaders                                        2023/ Surabaya
                   Services
                                              Program Refreshment/Penyegaran Sertifikasi     Friday, March 24, 2023/     SDG Consulting
                                              Manajemen Risiko                               Online

                                              GCG As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting and Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               Annual Report 2023      343
Page 346
                                                Types of Training and Competency             Implementation Time
      Name               Position                                                                                          Organizer
                                                 Development/ Training Materials                  and Place

 R. Arief         Director of Micro, Retail   Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
 Wicaksono        and Medium                  Leaders                                        2023/ Surabaya

                                              Program Refreshment/Penyegaran Sertifikasi     Friday, March 24, 2023/     SDG Consulting
                                              Manajemen Risiko                               Online

                                              GCG As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting and Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya

 Eko Susetyono    Director of Risk            Corporate Value Internalization For Culture    Saturday, January 14,      Kubik Leadership
                  Management                  Leaders                                        2023/ Surabaya

                                              Program Refreshment/Penyegaran Sertifikasi     Friday, March 24, 2023/     SDG Consulting
                                              Manajemen Risiko                               Online

                                              Gcg As The Key To Healthy And Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta

                                              Greeting And Sharing “Culture Transformation   Wednesday, October 18,     Internal Bank Jatim
                                              With Growth Mindset” By Ignasius Jonan         2023/ Surabaya

                                              International Conference On ERM: Into The      Thursday, December 7,        ERM Academy
                                              Unknown - Charting The Future Agenda           2023/ Online

 Arif Suhirman    Director of Operations      GCG As The Key To Healthy and Successful       Saturday, September 16,    Internal Bank Jatim
                                              Company                                        2023/ Yogyakarta


Orientation Program for New Board of Directors                              37001:2016 Anti-Bribery Management System (SMAP) and the
                                                                            application of Governance in the Era 4.0 & 5.0 in the Banking
The Orientation Program is very important to be implemented,                sector.
because the members of the Board of Directors can come
from various backgrounds, so that in order to form a solid                  Board of Directors Decisions and
work team, the Orientation Program is mandatory to run. The                 Implementation of Duties
provisions concerning the Orientation program must be given
to Directors who are taking office for the first time must be               During 2023 the Board of Directors has carried out their duties,
given an orientation program regarding the Bank.                            obligations, and responsibilities in order to carry out the
                                                                            management of the Company as stipulated in the applicable
The orientation program that is given can be in the form of                 laws and regulations, the Company’s Articles of Association,
presentations, meetings or visits to the Company’s facilities,              and the work plan for carrying out the duties of the Board of
introductions to Division Leaders, Groups and employees of                  Directors for 2023, in general, are as follows:
the Company and other programs.                                             1. Preparation of the Company’s bank business plan
                                                                            2. Implementation of IT strengthening projects and digital
During the year 2023, there was the appointment of a new                        banking development
Board of Directors, namely Arif Suhirman, as the Director of                3. Asset and financial management
Operations based on the decision of the Annual General                      4. Organizing board of Directors meetings and board of
Meeting of Shareholders for the Fiscal Year 2022 held on April                  Directors meetings with the board of Commissioners
12, 2023. A new director orientation program was conducted,                 5. Organizing the Annual General Meeting of Shareholders
including an Executive Summit for the Board of Commissioners                    for the 2022 Fiscal Year
and Directors on September 16, 2023, with the theme ‘GCG                    6. Supervision and improvement of internal business
As The Key to a Healthy & Successful Company.’ The summit                       processes
covered topics such as the implementation of SNI ISO                        7. Implementation of Good Corporate Governance in every
                                                                                business activity
                                                                            8. Distribution of Corporate Social Responsibility funds for
                                                                                the company which is manifested in various activities of the
                                                                                Bank Jatim Care




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9. Implementation of other tasks related to the management          32. Formation of Tableau Dashboard Team
   of the company                                                   33. Jatimers Internship Program
                                                                    34. Formation of the Financial Report and Annual Report
The decisions of the Board of Directors that have been issued           Compilation Committee of PT Bank Pembangunan Daerah
during 2023, include:                                                   Jawa Timur Tbk for the Fiscal Year 2023
1. Land and Building or Building Procurement Team in the            35. Policy Making Committee
    environment                                                     36. Appointment of Agency Admin and Work Unit Admin for
2. Hierarchy of Internal Regulations                                    E-LHKPN Application Management
3. Internal Regulations Renewal Committee                           37. Risk Appetite Statement
4. 5 Pillars of Transformation Committee                            38. Revocation of the Implementation Guidebook (BPP)
5. PIC of the Implementation of AML/CFT Compliance                  39. Anti-Bribery Compliance Function Committee (FKAP) for
6. Capital Investment Activities Committee                              Anti-Bribery Management System (ABMS)
7. About Directors Committee                                        40. Anti-Bribery Management System (ABMS) Policy
8. The Issuance of Decision of the Board of Directors of PT         41. JPerform Application Development Team
    Bank Pembangunan Daerah Jawa Timur Tbk Number                   42. Information Technology Strategic Plan (ITSP) 2024-2028
    059/084/DIR/OJL/KEP dated March 26, 2020, Regarding             43. Implementation Team for Minister of Finance Regulation
    the Guidelines for the Implementation of Payment                    (PMK) No. 66/2023 Related to In-kind and/or employee
    Collateral                                                          benefits subject to income tax
9. BPD Transformation Committee                                     44. Year-End Closing Guidelines and Annual Financial Report
10. Authority Settlement Limit for Transactions via ESTIM               Preparation
11. Blueprint for Human Capital Development                         45. Authorization Limit for Approval and Payment of
12. Jatimers Communities Committee                                      Procurement of Goods/Services and Non-Product Expenses
13. BPDSI Sports Event 2023 Committee                               46. Bank Guarantee Payment for Projects with the Budget of
14. Appointment and Assignment of Project Leader and                    the Year 2023 within East Java Province
    Project Support Team for the Procurement of Goods/              47. Segmentation for Credit/Financing
    Services within the General Division for the Fiscal Year 2023   48. KPA Risk Management
15. Formation of the Procurement Committee for Goods/               49. KPA Credit or Financing
    Services for the Fiscal Year 2023                               50. SOP for the Internship Program of Merdeka Belajar Kampus
16. Appointment and Formation of the Examination Committee              Merdeka (MBKM)
    for the Results of Goods/Services Procurement Work for          51. SOP for Education and Training
    the Year 2023                                                   52. SOP of Giro iB Barokah
17. Reviewer Team for Goods and Services Procurement                53. SOP for Contractor Financing
    through Tender Process within PT Bank Pembangunan               54. SOP for Corporate Culture
    Daerah Jawa Timur Tbk for the Fiscal Year 2023                  55. SOP for Micro Credit, Retail, and Medium
18. Credit/Financing Portfolio Guidelines                           56. SOP for Jatim Retail and Medium Credit
19. Due Diligence Preparation of Joint Business Group (KUB)         57. East Java Micro Credit SOP
    Committee                                                       58. SOP for Employee Business Travel
20. Go Lower Go Better Program                                      59. SOP for Bank Health Assessment
21. ALCO Meeting Decision                                           60. SOP for Employee Loans and Personal Loan Car Allowance
22. Team Formation for the Sale and Write-off of Fixed Assets           Program (CAP)
    of Official and Operational Vehicles                            61. Credit Receivable SOP
23. Authority Limit for Approval of Position Switching and          62. Contractor Credit SOP
    Budget Exceedance                                               63. BLUD Credit SOP
24. Risk Management Committee                                       64. Local Government Loans SOP
25. Ekstrakomtable Stimulus for Settlement of Problematic or        65. SOP Motorcycle Allowance Program Bagi Account Officer
    Non-Performing Loans or Extracompstable Financing               66. SOP for Total Reward
26. Formation of the Credit Control and Extracompstable             67. Amendment to the SOP for Affordable Homeownership
    Recovery Committee                                                  with Housing Finance Liquidity Facility (FLPP) and Down
27. Formation of the Primary Dealer Committee                           Payment Assistance Subsidy (SBUM)
28. SOP for the Human Resources Management Committee                68. SOP for Cash Collateral Credit
29. Authority Limit for Approval of Credit/Financing by the         69. SOP for Property Loan
    Credit Committee                                                70. Multipurpose Loan SOP
30. Authorization Limit for Approval of Cash and Non-Cash           71. SOP for People’s Business Credit
    Credit/Financing                                                72. SOP for Gold Collateral Loan
31. Limit for On-The-Spot (OTS) Execution in the Credit/            73. SOP for Special Treatment Stimulus for Debtors Affected by
    Financing Process                                                   the COVID-19 Disaster in Specific Regions and Sectors




                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     Annual Report 2023     345
Page 348
74. SOP for Motor Vehicle Loan                                   94. SOP for Development of Internal Regulations
75. SOP for Loan or Financing Rescue and Resolution              95. Third Amendment to Jatim Micro Credit SOP
76. SOP for Employee Punishment                                  96. First Amendment to the Jatim Retail and Medium Credit
77. SOP for Local Government Credit Card                             SOP
78. SOP for Grading and Remuneration System                      97. SOP for Cash Management
79. SOP for Career Development Program                           98. SOP for Cooperatives Loans
80. SOP for Bank Guarantee                                       99. SOP for Shariah-based People’s Business Credit (KUR
81. SOP for Investor Management                                  100. SOP for Syndicated Loan
82. SOP for Control and Reporting of Gratification               101. First Amandement to the Consumer Loan SOP
83. SOP for Car Allowance Program for Employees in a Position    102. SOP for Management of E-Channel Transactions
    of Authority                                                 103. SOP for Anti-Bribery Management System (ABMS)
84. SOP Employee Mutation                                        104. SOP for Electronic Data Capture (EDC)
85. SOP Human Resources Management Committee                     105. SOP for Protocol Management
86. SOP for Jatim Agent                                          106. SOP for Secretarial Management
87. SOP for Capital Investment                                   107. SOP for Account Management
88. Amendment to the Property Loan SOP                           108. SOP for Financial Report
89. Amendment to the SOP for Homeownership with Housing          109. SOP for Development of Non-Digital Products
    Finance Liquidity Facility (FLPP) and Down Payment           110. SOP for Land and Building Procurement, as well as
    Assistance Subsidy (SBUM)                                           Building Renovation
90. SOP Credit Risk Management                                   111. SOP for Letter of Credit (L/C) Import Transactions
91. SOP for Liquidity Risk Management                            112. SOP for Domestic Letter of Credit (SKBDN) Transactions
92. First Amendment to the Contractor Credit SOP                 113. SOP for Documentary Collection Transactions
93. First Amendment to the Commercial and Corporate Credit       114. SOP for of Letter of Credit (L/C) Eksport Transactions
    Process SOP                                                  115. SOP for Time Deposits


Performance Assessment of Committees Under The Board of Directors, Corporate Secretary,
Internal Audit Unit, Risk Management Unit and The Basis of The Assessment


The Board of Directors’ evaluation procedure on the              Asset Liability Committee (ALCO)
performance of the Board of Directors Committee is carried       ALCO is a committee for decision making on assets and liabilities
out in the following manner:                                     for the purposes outlined, a forum called the Asset Liabilities
1. Each Secretary of the Board of Directors Committee            Committee (ALCO) is needed. In order to reduce and eliminate
    shall prepare the implementation materials and technical     risks that occur in banks, especially Liquidity Risk, Interest Rates
    implementation of each Committee of the Board of             and Exchange Rates, cooperation and active participation of
    Directors during the 2023 financial year.                    various decision makers on both the assets and liabilities side are
2. The Board of Directors’ assessment of the performance of      required. Cooperation will be successful if each decision maker
    the Board of Directors Committee is carried out through      knows his role and the impact of his decision on overall business
    the Board of Directors Meeting.                              profits. During 2023, the ALCO held 15 (fifteen) meetings.


The criteria used in the Board of Directors’ assessment of the   Risk Management Committee
performance of the Board of Directors Committee include:         The Risk Management Committee was formed in order to
1. Basis for Formation of the Committee                          maintain risk exposure at acceptable and profitable limits, so
2. Committee Structure and Membership                            that bank business activities can remain manageable and carry
3. Duties, Authorities and Responsibilities of the Committee     out bank business activities based on prudential principles.
4. Committee Implementation Achievement                          During 2023, the Risk Management Committee held 5 (five)
5. Conclusion                                                    meetings..


During 2023, the Board of Directors considered that the          Personnel Management Committee
committees under the Board of Directors carried out their        The Personnel Management Committee was formed in order
duties and responsibilities properly.                            to obtain optimal results in deciding critical matters in the
                                                                 field of Human Capital in terms of strategies, policies, and




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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Human Capital management systems that are in line with the             During 2023, the Credit Restructuring Committee held 6
Bank’s Business Plan. During 2023, the Personnel Management            (six) meetings.
Committee held 20 (twenty) meetings.                               •   Term Loan Facility (TLF) Committee
                                                                       During 2023, the Credit Settlement Committee held 1
Information Technology Committee                                       (one) meeting.
Part of IT governance in providing recommendations, the            •   Financing Implementation Committee
committee must pay attention to the efficiency factor of the IT        During 2023, the Financing Implementation Committee
governance in order to minimize the risk associated with the           held 5 (five) meetings.
use of IT. Bank and customers. As an embodiment of part of IT      •   Financing Restructuring Committee
governance in order to minimize the risk associated with the use       During 2023, the Financing Restructuring Committee held
of IT and to protect the interests of the IT Steering Committee,       1 (one) meeting.
it was formed as a manifestation of the commitment of the          •   Writing Off Credit and Financing Committee
Board of Directors and management of Bank Jatim in the form            During 2023, the Writing Off Credit and Financing
of active supervision of IT management. As stipulated in POJK          Committee held 2 (two) meetings.
MRTI, ITSC plays a role in assisting the implementation of the
duties of the Board of Directors in determining the Information    Product and Network Committee
Technology Strategic Plan and Bank policies related to the
use of Information Technology. During 2022, the Information        Product Committee
Technology committee held 2 (two) meeting.                         The Product Committee is a committee formed by the Board
                                                                   of Directors to discuss, determine, and evaluate business
Credit or Financing Policy Committee                               strategies through product development, both digital and
Credit or Financing Policy Committee is a committee formed         non-digital, and both conventional and sharia. It is including
by the Board of Directors in the framework of managing credit      the development of products that have not existed before and
policy which aims to support sound credit distribution and         the development of follow-up products, including conducting
contains elements of internal control from the initial stages of   products evaluations (continued products, developed,
the credit activity process to the credit monitoring stage with    discontinued, and closed). Throughout 2023, there have been
due observance of the principle of prudence. Throughout 2023,      no product committee meetings held and the process of
there was no credit or financing policy committee meetings         updating internal provisions regarding changes to the grand
and processes for updating the internal provisions regarding       design Organizational Structure. Updating the SOP of Product
changes to the grand design organizational structure. During       Committee has been carried out and the SOP of Product
2023, the Credit or Financing Policy Committee has held 1          Committee has been issued with a Decree from the Board of
(one) meeting.                                                     Directors of PT Bank Pembangunan Daerah Jawa Timur Tbk.
                                                                   Number 062/03/80/DIR/PGP/KEP dated December 29, 2023.
Credit Committee
Conventional Credit Committee                                      Network Committee
Credit Committee is an operational committee formed by the         The Network Committee has the role of compling the
Board of Directors to evaluate and/or provide credit decisions     implementation of development, status change and/or network
for the amount and type of credit determined by the Board          closure as well as determining the class of branches and sub-
of Directors with due regard to business development without       branches in network classification. The Network Committee
abandoning prudential principles including restructuring and       functions as a forum for managing policies and monitoring
credit settlement good.                                            effectiveness of the Bank’s network to ensure success in
                                                                   creating optimal profits. During 2023, the Network Committee
Financing Committee                                                held 3 (three) meetings.
An operational committee formed by the Board of Directors to
evaluate and/or provide financing decisions for the amount and     In addition to evaluating the performance of the Committees
type of financing determined by the Board of Directors with        under the Board of Directors, the Board of Directors also
due regard to business development without abandoning the          conducts performance assessments of all Units under the
precautionary principle including restructuring and settlement     Board of Directors. Performance assessments for the Corporate
of financing.                                                      Secretary, Internal Audit and Risk Management Division are
• Credit Implementation Committee                                  carried out based on the achievement of the Key Performance
     During 2023, the Credit Implementation Committee held         Indicators (KPI) of each unit. In 2023, the achievement of
     24 (twenty four) meetings.                                    the KPI’s for the Corporate Secretary, Internal Audit and Risk
• Credit Restructuring Committee                                   Management Division received the title Meet Expectation or
                                                                   Good.




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 350
Mechanism of Self Resignation and Termination                         2. Members of the Board of Commissioners must carry out
of The Board of Directors                                                their duties and responsibilities in good faith, with full
                                                                         responsibility and prudent principle.
The mechanism for resignation and dismissal of the Board of           3. Perform tasks specifically given to them according to the
Directors includes:                                                      Articles of Association, laws and/or resolutions of the GMS,
1. A member of the Board of Directors may submit an                      among others:
    application to resign from his position by notifying in writing      a. a. The Board of Commissioners is obliged to
    of his intentions to the Controlling Shareholders and the Bank.          ensure the implementation of Good Governance in
2. The company is obliged to hold a GMS to decide on the                     every business activity of the Bank at all levels of the
    resignation request of a member of the Board of Directors                organization.
    no later than 90 (ninety) days after the resignation letter is       b. Approve and evaluate Risk Management policies.
    received.                                                            c. Evaluate the accountability of the Board of Directors
3. A member of the Board of Directors can be temporarily                     for the implementation of Risk Management policies.
    suspended by the Board of Commissioners by stating the                   Komisaris.
    reasons and must be notified in writing to the member of the         d. Evaluate and decide Board of Directors’ requests
    Board of Directors concerned.                                            related to transactions that require the approval of the
4. The Board of Commissioners must hold a GMS to revoke                      Board of Commissioners.
    or affirm the decision on the temporary dismissal within 90          e. Supervise the implementation of the duties and
    (ninety) days after the date of the temporary dismissal. With            responsibilities of the Board of Directors and provide
    the expiration of the time period for holding the GMS or the             advice to the Board of Directors.
    GMS unable to make a decision, the temporary dismissal               f. Supervise the implementation of the Company’s
    of members of the Board of Directors by the Board of                     Compliance Function on regulations of Bank Indonesia/
    Commissioners is canceled.                                               Financial Services Authority and statutory regulations
5. The Company is obliged to implement a mechanism for                       and commitments to Bank Indonesia/ Financial
    resignation and dismissal of the Board of Directors and                  Services Authority and other parties in accordance with
    conduct disclosure of information to the public in accordance            statutory regulations and/or agreements.
    with OJK regulations. OJK.                                           g. Distributing duties among the members of Board
                                                                             of Commissioners in accordance with the expertise
Board of Commissioners                                                       and experience of each Member of the Board of
                                                                             Commissioners.
The Board of Commissioners is the Corporate Governance organ          4. 4. Prepare work programs and performance targets for
whose job is to carry out general and/or specific supervision in         the Board of Commissioners each year as well as a peer
accordance with the Articles of Association, provide advice to the       review mechanism on the performance of the Board of
Board of Directors, and ensure that the Company implements the           Commissioners.
principles of good corporate governance.                              5. Be responsible for the implementation of the duties of the
                                                                         Board of Commissioners to the GMS.
The Board of Commissioners is responsible to the GMS in               6. Conduct active supervision through Board of Commissioners
terms of overseeing the policies of the Board of Directors               Meetings and/or Joint Meetings with Board of Directors, in
regarding the Company’s operations in general which refer to the         relation to the implementation of GCG.
approved business plan, as well as ensuring compliance with all       7. Each member of the Board of Commissioners is jointly
applicable laws and regulations. The responsibility of the Board of      and collectively liable for the Company’s losses caused
Commissioners to the GMS is a manifestation of the supervisory           by errors or negligence of the members of the Board of
accountability for the management of the Business Entity in the          Commissioners in carrying out their duties, unless the
implementation of the principles of good governance.                     member of the Board of Commissioners concerned can
                                                                         prove:
Duties and Responsibilities of The Board of                              a. The loss is not due to an error or negligence.
Commissioners                                                            b. Has conducted supervision in good faith, full of
                                                                             responsibility, and prudently for the interests and
The Board of Commissioners has duties and responsibilities                   in accordance with the aims and objectives of the
that have been regulated in the Work Guidelines and Code of                  Company.
Conduct, including the following:                                        c. Has no conflict of interest, either directly or indirectly,
1. The Board of Commissioners is tasked with supervising the                 over the supervision actions that result in losses.
    policies and processes of management in general, both                d. Has taken actions to prevent such losses arising or
    regarding the Company and the Company’s business, and                    continuing.
    providing advice to the Directors.                                   e. Has given advice to the Board of Directors to prevent
                                                                             bankruptcy.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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8. The Board of Commissioners individually or collectively at           b. All existing problems are discussed carefully and
    any time during the Bank’s office hours has the right to enter          thoroughly.
    buildings and yards or other places used or controlled by           c. All members of the Board of Commissioners are given
    the Bank and has the right to examine all books, letters and            the opportunity to contribute effectively.
    other evidence, check and match the situation cash and              d. Each Commissioner receives relevant information
    others and have the right to know all actions taken by the              in a timely manner, including a brief explanation
    Board of Directors.                                                     of the issues that will be discussed at the Board of
9. The Board of Commissioners has the right to request                      Commissioners’ meeting.
    explanations from the Board of Directors regarding all              e. Board of Commissioners meetings produce clear
    matters relating to the management of the Bank and to                   decisions and are recorded in the minutes. notulen.
    know all policies and actions that have been and will be         7. Ensure that the Board of Commissioners behaves in
    carried out by the Board of Directors.                              accordance with applicable regulations.
10. The Board of Commissioners may temporarily dismiss one           8. Lead efforts to meet the development needs of the Board
    or more members of the Board of Directors, if the member            of Commissioners.
    of the Board of Directors acts contrary to the articles of       9. Perform other responsibilities assigned by the Board of
    association or applicable laws and regulations.                     Commissioners, from time to time.
11. Temporary dismissal must be notified to the person
    concerned along with the reasons.                                Rights and Authorities of the Board of
12. The Board of Commissioners may conduct management                Commissioners
    of the Bank in certain circumstances for a certain period
    in accordance with the provisions of the Articles of             The rights and powers of the Board of Commissioners are to:
    Association.                                                     1. Individually or collectively at any time during the working
13. The Board of Commissioners can exercise other supervisory            hours of the Company’s office has the right to enter the
    authority as long as it does not conflict with the laws and          building and yard or other places used or controlled by
    regulations, the Articles of Association and/or the resolution       the Company and the right to examine all books, letters
    of the GMS.                                                          and other evidence, check and match the cash and cash
                                                                         conditions. others and has the right to know all the actions
Duties and Responsibilities of President Commissioner                    that have been carried out by the Board of Directors.
                                                                     2. Request an explanation from the Board of Directors regarding
In accordance with the Regulation of Financial Services                  all matters relating to the management of the Company
Authority POJK No. 17 of 2023 concerning Implementation of           3. Know all the policies and actions that have been and will be
Governance for Commercial Banks, it is stated that the Board             carried out by the Board of Directors.
of Commissioners must be led by the President Commissioner.          4. Requesting the Board of Directors and/or other officers
The function of the President Commissioner in the Governance             under the Board of Directors with the knowledge of the
process is none other than the coordinator of the Board of               Board of Directors to attend the meeting of the Board of
Commissioners’ organs as a whole, as essentially the relationship        Commissioners.
between the members of the Board of Commissioners is                 5. Suspend one or more members of the Board of Directors,
equal and in the nature of an assembly; hence, they cannot               if the member of the Board of Directors acts contrary to the
act individually but based on the Board of Commissioners’                articles of association or the prevailing laws and regulations.
decision. In general, the duties and responsibilities of the         6. The said temporary dismissal must be notified to the
President Commissioner are as follows:                                   person concerned along with the reasons.
1. Coordinate the implementation of the duties and                   7. Form Committees under the Board of Commissioners
    responsibilities of the Board of Commissioners.                      in accordance with laws and regulations by taking into
2. Propose to hold a Board of Commissioners Meeting,                     account the needs of the Company.
    including the agenda of the Meeting.                             8. Appoint and appoint an individual or expert to carry out
3. Summons and chair the Board of Commissioners’ meeting.                certain tasks deemed necessary at the expense of the
4. Submit the supervisory report to obtain the approval of               company.
    the Annual GMS for the implementation of the duties and          9. Perform actions in managing the Company in certain
    supervision of the Board of Commissioners.                           circumstances for a certain period of time in accordance
5. Ensure that the implementation of the responsibilities of the         with the provisions of the Articles of Association.
    Board of Commissioners has been carried out according to         10. Hold meetings with the Board of Directors to evaluate the
    procedures.                                                          performance of the Board of Directors.
6. Ensure that meetings of the Board of Commissioners                11. Appoint the Secretary of the Board of Commissioners
    make decisions effectively based on true and complete                based on the prevailing laws and regulations.
    information, including ensuring that:                            12. Provide approval for policy guidelines regarding the
    a. All strategic and important issues are taken into                 provision of funds to related parties and the provision of
        consideration by the Board of Commissioners.                     large funds (large exposure).


                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       Annual Report 2023         349
Page 352
13. Provide approval for the provision of funds to related            applicable regulations and being assessed as being able to carry
    parties. Carry out active supervision of the policy in            out their functions well, without prejudice to the GMS’s right to
    question.                                                         dismiss at any time.
14. Request the Board of Directors to follow up on the findings
    of the SKAI examination.                                          Board of Commissioners Criteria
15. Determine a special examination by SKAI if there are
    allegations of fraud, irregularities, against the applicable      The criteria for the Board of Commissioners of Bank Jatim have
    laws and regulations.                                             been stipulated in the Articles of Association of the Company
16. Evaluate and examine the follow-up to the Internal Audit          and the Implementation Manual are as follows:
    Report, Compliance Director Report, Public Accountant             1. Individual, Indonesian citizen who:
    Report, Bank Indonesia Report and BPK Report.                        a. Individual, Indonesian citizen who.
17. Consider the appointment and dismissal of the head of the            b. Faithful and obedient to the State and Government.
    internal audit work unit (SKAI) proposed by the President            c. Do not engage directly or indirectly in activities treason
    Director.                                                                 against the State.
18. Provide feedback on periodic reports submitted by the                d. Physically and mentally healthy.
    Board of Directors.                                                  e. Have never carried out activities that harm the State or
19. Carry out other supervisory powers as long as they do not                 conduct disgraceful actions in the banking sector.
    conflict with laws and regulations, the Articles of Association      f. The voting rights were not revoked based on a court
    and/or the resolutions of the GMS.                                        decision.
                                                                      2. Pass a Fit and Proper Test in accordance with OJK
Decision That Needs To Agree To The Board of                             regulations.
Commissioners                                                         3. The majority of members of the Board of Commissioners
                                                                         are prohibited from having family ties to the second degree
Decisions that need to be approved by the Board of                       with fellow members of the Board of Commissioners and/or
Commissioners of Bank Jatim have been regulated in the Code              members of the Board of Directors.
of Conduct section of the Work Mechanism between the Board            4. Within 5 (five) years prior to the appointment and during
of Directors and the Board of Commissioners. Matters that                the term of office:
need to be approved by the Board of Commissioners are as                 a. Never been declared bankrupt.
follows:                                                                 b. Never been a member of the Board of Directors and/
1. General Meeting of Shareholders (GMS).                                     or a member of the Board of Commissioners who was
2. Changes in Organizational Structure.                                       found guilty of causing a company to go bankrupt.
3. Bank Business Plan and Corporate Plan.                                c. Never been convicted of committing a crime that
4. Legal Lending Limit (LLL) with Related Parties.                            caused losses to state finances and/or was related to
5. Internal Audit Charter and the Appointment and Dismissal                   the financial sector
     of the Head of Internal Audit Unit in relation to the               d. Has never been a member of the Board of Directors
     implementation of the Standard for the Implementation of                 and/ or a member of the Board of Commissioners who
     the Internal Audit Function for Commercial Banks (SPFAIB).               during his tenure:
6. Reports to Bank Indonesia relating to conditions that                      - Never held an Annual GMS.
     endanger the sustainability of the Bank’s business.                      - The responsibilities as a member of the Board
7. SKAI Semester Report.                                                           of Directors and/or a member of the Board of
8. Approval of Implementation Guidelines that must be ratified                     Commissioners have never been accepted by
     by the Board of Commissioners, among others, guidelines                       the GMS or have never given accountability as a
     for large exposure transactions such as Guidelines for                        member of the Board of Directors and/or a member
     Disposal of Assets, Write-Off Loans and Claim Write-Offs                      of the Board of Commissioners to the GMS.
     and others.                                                              - Have caused a company that obtained a license,
9. Others according to the provisions.                                             approval, or registration from FSA to fail to fulfill
                                                                                   its obligation to submit an annual report and/or
Term of Office of Board of Commissioners                                           financial report to FSA.
                                                                      5. Not involved directly or indirectly in treasonous activities to
The term of office of a member of the Board of Commissioners             the State.
is a maximum of 4 (four) years from the date specified in the         6. Never carry out activities that are detrimental to the State
GMS of appointment and ends at the closing of the 4th (fourth)           or disgraceful actions in the banking sector
Annual GMS from the date of appointment or until the closing          7. Not deprived of voting rights based on court decisions.
of the Annual GMS at the end of 1 (one) term period. position,        8. Have a good financial track record, proven by documents
and can be reappointed for a second term of office, after taking         that have been issued by the competent authority.
into account the provisions of the Financial Services Authority and   9. Meet other requirements as specified.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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Board of Commissioners’ Work Procedures                                               Board of commissioners’ work procedures guidelines of Bank
Guidelines                                                                            Jatim were last updated on January 15, 2021. The contents
                                                                                      of Board of Commissioners Charter regulate the following
The Board of Commissioners has Board Charter for the Board                            matters:
of Commissioners’ work rules no. 060/01/DK/KEP dated                                  A. Governance Structure
January 15, 2021 regarding the Work Guidelines for the Board                              1. Board of Commissioners Composition
of Commissioners. The work code of conduct is evaluated                                   2. Board of Commissioners Criteria
periodically and updated with reference to the applicable rules                           3. Term of Office
and regulations.                                                                          4. Duties, Obligations, Authority, Responsibilities,
                                                                                              Prohibitions
Board of Commissioners’ Work Procedures Guidelines is                                     5. Organization
binding for each member of the Board of Commissioners so                                  6. Distribution of Duties of the Supporting Organs of the
that the Board of Commissioners can carry out their supervisory                               Board of Commissioners
functions efficiently, effectively, transparently, independently,                     B. Governance Process
and accountably. The basis for the preparation of board of                                1. Division of work
commissioners’ work procedures guidelines is the Bank’s                                   2. Working time
Articles of Association, Law No. 40 of 2007 concerning Limited                            3. Work Ethics
Liability Companies, Financial Services Authority Regulations                             4. Supervision Mechanism Board of Commissioners
and OJK Circular on the application and organs of Corporate                               5. Board of Commissioners Meeting
Governance, and other regulations.                                                        6. Workflow & MechanismKerja
                                                                                      C. Governanace Outcome
                                                                                          1. Report
                                                                                          2. Means of Correspondence
                                                                                          3. Letter Distribution


The Supervision of The Board of Commissioners’ Supervisory Duties

In order to optimize the implementation of the functions and duties of the Board of Commissioners, it has been determined that the
field of duties of each member of the Board of Commissioners has been established. The management of the supervisory duties of
the Board of Commissioners does not reduce the rights, obligations, responsibilities and authority of each member of the Board of
Commissioners in carrying out their functions and duties. As for the division of functions, duties and responsibilities of the Board of
Commissioners as follows.


 Table of Duties of the Board of Commissioners


                   Name                                     Position                                                    Duties


 Suprajarto*                                        President Commissioner           Member of Remuneration and Nomination Committee

 Candra Fajri Ananda                                                                 Head of the Risk Monitoring

                                                  Independent Commissioner           Committee Chairman of the Audit Committee

                                                                                     Member of Remuneration and Nomination Committee

 Muhammad Mas’ud                                                                     Independent Commissioner

                                                  Independent Commissioner           Chairman of the Remuneration and Nomination Committee

                                                                                     Audit Committee Member

 Sumaryono                                           Komisaris Independen            Chairman of the Audit Committee

                                                                                     Member of the Risk Monitoring Committee

                                                                                     Member of Remuneration and Nomination Committee

 Heru Tjahjono**                                         Commissioner                Member of Remuneration and Nomination Committee

 Adhy Karyono***                                         Commissioner                Member of Remuneration and Nomination Committee

 *Stopped serving as President Commissioner dated December 19, 2023 (passed away).
 **Stopped serving as Board of Commissioner dated April 12, 2023 (dismissed at the Annual GMS Year 2022).
 ***Appointed as Board of Commisioners at the Annual GMS for Fiscal Year 2022 dated April 12, 2023 and was effective from November 24, 2023.




                                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                           Annual Report 2023           351
Page 354
Concurrent Position of Board of Commissioners

Charter of Board of Commissioners of Bank Jatim has                                  2. Members of the Board of Directors, Board of Commissioners
regulated the provisions concerning concurrent positions of                             or Executive Officers of more than 1 (one) non-financial
the Board of Commissioners, namely members of the Board                                 institution or non-financial company, both domestic and
of Commissioners are prohibited from holding concurrent                                 abroad.
positions as:                                                                        3. Other positions that may lead to a conflict of interest and/or
1. Members of the Board of Directors, Board of Commissioners,                           other position in accordance with the rules and regulations.
    or Executive Officers of financial institutions or financial
    companies, both banks and non-banks.


 Tabel Rangkap Jabatan Dewan Komisaris

                                                                                   Jabatan pada Perusahaan/               Nama Perusahaan/ Instansi
                   Nama                                  Jabatan
                                                                                         Instansi Lain                             Lain

 Suprajarto*                                    President Commissioner         -                                          -

 Candra Fajri Ananda                            Independent                    Special Staff                              Ministry of Finance
                                                Commissioner

 Muhammad Mas’ud                                Independent                    Postgraduate Director                      University of Islam
                                                Commissioner

 Sumaryono                                      Independent                    -                                          -
                                                Commissioner

 Heru Tjahjono**                                Commissioner                   -                                          -

 Adhy Karyono***                                Commissioner                   Regional Secretary                         East Java Province

 *Stopped serving as President Commissioner dated December 19, 2023 (passed away).
 **Stopped serving as Board of Commissioner dated April 12, 2023 (dismissed at the Annual GMS Year 2022).
 ***Appointed as Board of Commissioner at the Annual GMS dated April 12, 2023 and was effective from November 24, 2023.


Management of Conflicts of Interest of The
Board of Commissioners
                                                                                     6. Not being influenced by other parties in carrying out duties
Management of conflicts of interest for the Board of                                    and making decisions that lead to abuse of authority and/
Commissioners as stipulated in the Board of Commissioners                               or improper decision making.
Guidelines and Procedures are as follows:                                            7. Not holding multiple positions as:
1. Members of the Commissioner are required to keep                                     a. Members of the Board of Directors, members of the
   information which is based on laws and regulations must                                  Board of Commissioners or Executive Officers at
   be kept confidential, including not being involved in Insider                            financial institutions or financial companies, both banks
   Trading or self-dealing with the aim of obtaining personal                               and nonbanks.
   gain.                                                                                b. Members of the Board of Directors, members of the
2. Not taking advantage of the Company for personal, family,                                Board of Commissioners or Executive Officers in more
   and/or other party interests that may harm or reduce the                                 than 1 (one) nonfinancial institution or non-financial
   Company’s profits.                                                                       company, either domiciled inside or outside the
3. Do not take and/or receive personal benefits from the Bank                               country.
   other than remuneration and other facilities determined by                           c. Other positions that may cause conflict of interest
   the GMS.                                                                                 and/or other positions in accordance with laws and
4. Not involved in making decisions about the Company’s                                     regulations.
   operational activities, except for the provision of funds                         8. Disclose remuneration and other facilities received in the
   to related parties and other matters stipulated in the                               Governance Implementation Report as stipulated in the
   Company’s Articles of Association or applicable laws and                             Financial Services Authority Regulation.
   regulations.
5. Do not carry out transactions that have a conflict of interest                    During 2023, the Bank ensures that all members of the Board of
   and/or take personal gain either directly or indirectly from                      Commissioners have no conflict of interest or potential conflict
   the Company’s activities other than legal income as a                             of interest against Bank Jatim.
   member of the Board of Commissioners.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
352      Annual Report 2023
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                                                                                                                                GOVERNANCE




In carrying out the duties, powers, obligations and                                Independent Commissioners
responsibilities of each Board of Commissioners of Bank Jatim,
they must always be based on job ethics. All members of the                        Bank Jatim is subject to regulations issued by regulators
Board of Commissioners must avoid potential conflicts of                           regarding the existence of Independent Commissioners in the
interest or always position themselves not to be in a potential                    Bank. The Bank’s Independent Commissioners are appointed
conflict of interest in any situation as stated in the Charter of the              at least 50% (fifty percent) of the total members of the Board
Board of Commissioners.                                                            of Commissioners. The number of Independent Commissioners
                                                                                   of Bank Jatim consisted of 3 (three) people out of a total of 5
In the event of a conflict of interest, the Board of Commissioners                 (five) members of the Board of Commissioners. In other words,
who has a conflict of interest does not use their rights/authority                 the composition of the Independent Commissioners of Bank
in making decisions. Members of the Board of Commissioners                         Jatim was more than 50% of the total members of the Board of
are prohibited from taking actions that may harm the Bank                          Commissioners.
or reduce the Bank’s profits and must disclose the conflict of
interest referred to in every decision.




Criteria for Determining Independent Commissioners

The criteria for determining the Independent Commissioner of Bank Jatim are regulated in the articles of association and in the
guidelines for the implementation of the Board of Commissioners of Bank Jatim that are adjusted according to the applicable
rules including Circular Letter of the Financial Services Authority No. 13/SEOJK.03/2017 regarding Governance Implementation for
Commercial Banks and Regulation of Financial Services Authority No. 33/POJK.04/2014 regarding Board of Directors and Board
of Commissioners of Issuers or Public Companies, among others it is explained that Independent Commissioners must meet the
following requirements:


                                                                                                      Komisaris Independen
                    Kriteria Komisaris Independen                                    Candra Fajri           Muhammad
                                                                                                                                   Sumaryono
                                                                                       Ananda                Mas’ud

 Have no financial relationship, management relationship, share ownership
 relationship, family relations with other members of the Board of
 Commissioners, Directors and/or Controlling Shareholders or relationship
 with the Bank, which can affect their ability to act independently.

 Not a person who works or has the authority and responsibility to plan,
 lead, control, or supervise the activities of Issuers or Public Companies
 within the last 6 (six) months, except for reappointment as Independent
 Commissioners of Issuers or Public Companies in the following period.

 Have no shares either directly or indirectly in the Issuer or Public Company.

 Have no affiliation relationship with Issuers or Public Companies, members
 of the Board of Commissioners, members of the Board of Directors, or
 major shareholders of Issuers or Public Companies.

 Do not have business relations, directly or indirectly, that are related to the
 business activities of the Issuer or Public Company.


The presence of an Independent Commissioner is intended to                         Independent Commissioner must be free from conflicts
be able to encourage the creation of an objective climate and                      of interest. In order to support the implementation of the
work environment, placing fairness and equality among various                      Company’s GCG, shareholders in the GMS determine the
interests, including the interests of minority shareholders and                    Independent Commissioners with the number and requirements
other stakeholders.                                                                as stipulated in the laws and regulations to carry out supervisory
                                                                                   duties towards the Bank.




                                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                     Annual Report 2023        353
Page 356
Independent Commissioner Statement




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Meeting of Board of Commissioners                                  Internal Meeting of Board of Commissioners

Meeting Policy                                                     INTERNAL MEETING PLAN OF THE BOARD OF
                                                                   COMMISSIONERS
The Board of Commissioners must hold regular meetings, and
arrange a meeting schedule for the following year before the       The Board of Commissioners has drawn up plans for a meeting
end of the financial year.                                         in 2023 in the Work Program of the Board of Commissioners.
1. The implementation of the meeting can be divided into           The Board of Commissioners Meeting Plan is prepared as a
    two, namely                                                    guideline in the implementation of the meeting in accordance
    a. Internal meetings of the Board of Commissioners.            with the time specified both the internal meeting of the Board
    b. Meetings of the Board of Commissioners with the             of Commissioners and the meeting with the Board of Directors,
         Board of Directors and/or Head of Work Unit (Division)    among others as follows:
         in accordance with the topic discussed
2. Internal meetings of the Board of Commissioners must be         Quarter I
    held regularly at least once every 2 (two) months (6 (six)     • Monthly Review on Bank Performance.
    times a year).                                                 • Review and approval of the Annual Report and Consolidated
3. Meetings of the Board of Commissioners with the Board of           Financial Statements for the 2023 Audited Fiscal Year.
    Directors must be held regularly at least once every 2 (two)   • Quarterly Review on Bank Performance for 2023.
    months (6 (six) times a year).                                 • Preparation for the 2023 Annual General Meeting of
4. Meetings can also be held at any time at the request of 1          Shareholders.
    (one) or several Members of the Board of Commissioners or      • Program review and performance appraisal of the Board of
    at the request of the Board of Directors, stating matters to      Commissioners and Committees.
    be discussed.                                                  • Quarterly Review of Risk Profile, Business Activities, IT, HR
5. Meetings of the Board of Commissioners and/or Meetings             and Annual Strategic Initiatives for Fiscal Year 2023.
    of the Board of Commissioners with the Board of Directors
    can be thematic in accordance with existing problems           Quarter II
    under certain conditions;                                      • Monthly Review on Bank Performance.
6. At the meeting that has been scheduled, meeting materials       • Quarterly Review of Risk Profile, Business Activities, IT, HR and
    are submitted to participants no later than 5 (five) days         Other Strategic Initiatives for the Quarter I/2023 period.
    before the meeting is held.                                    • Supervision and evaluation of the Bank’s Soundness Level,
7. In the event that a meeting is held outside the                    Risk Management, Governance Implementation, as well
    predetermined schedule, the meeting materials shall be            as a review of the compliance function report and the
    submitted to the meeting participants no later than before        implementation of the Compliance Director’s duties.
    the meeting is held.                                           • Discussion of the Nomination Process for Candidates for
8. The meeting of the Board of Commissioners is chaired by            Bank Management.
    the President Commissioner, in the event that the President    • Review of Bank’s internal policies/regulations (BPP/SOP).
    Commissioner is unable to attend or is absent which does
    not need to be proven to a third party, the meeting of the     Quarter III
    Board of Commissioners is chaired by a member of the           • Monthly Review on Bank Performance
    Board of Commissioners who is elected by and from the          • Quarterly Review of Risk Profile, Business Activities, IT, HR and
    members of the Board of Commissioners who are present.            Other Strategic Initiatives for the Quarter II/2023 period.
9. A member of the Board of Commissioners can be                   • Discussion of the Company’s 2023 Work Plan and Budget.
    represented in a meeting of the Board of Commissioners         • Discussion of the Nomination Process for Candidates for
    only by another member of the Board of Commissioners              Bank Management.
    based on a power of attorney.                                  • Discussion of the process of selecting a Public Accounting
10. Meetings of the Board of Commissioners are valid and have         Firm (KAP) for the 2023 Financial Statement Audit.
    the right to make binding decisions if more than ½ (one
    half) of the total members of the Board of Commissioners       Quarter IV
    are present or represented at the meeting.                     • Monthly Review on Bank Performance.
11. Decisions of the Board of Commissioners meeting must be        • Quarterly Review of Risk Profile, Business Activities, IT, HR and
    made based on deliberation to reach consensus.                    Other Strategic Initiatives for the Quarter III/2023 period.
12. If a decision cannot be made by deliberation to reach a        • Approval of the Bank’s 2024 Business Plan, Sustainable
    consensus, the decision is made by voting based on a              Finance Action Plan;
    vote in agreement of at least more than ½ (one half) of the    • Supervision and evaluation of the Bank’s Soundness Level,
    number of votes cast in the meeting.                              Risk Management and, Implementation of governance,
                                                                      as well as review of compliance function reports and
                                                                      implementation of the Compliance Director’s duties;


                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     Annual Report 2023         355
Page 358
•     Approval of the Bank Business Plan;
•     Discussion on the preparation of the Work Program and Budget for the Board of Commissioners and Committees for 2024; And
•     Preparation of a governance implementation report for the 2023 financial year.



REALIZATION OF THE INTERNAL MEETING OF THE BOARD OF COMMISSIONERS


Internal meetings of the Board of Commissioners have been held in accordance with policy. Meeting materials must be submitted no
later than 5 (five) days. Throughout 2023, the agenda, dates and participants of the Board of Commissioners’ Meeting are as follows.


 Table of Internal Meetings of the Board of Commissioners

                                         Meeting                       Meeting           Atendance              Reason for
    No.           Date
                                         Agenda                       Participants                               Absence

    1.    January 12, 2023    The discussion includes:             Suprajarto              Present
                              1. Discussion of Renumeration of
                                 Bank Jatim’s Management           Muhammad Mas'ud       Not present               Permit
                              2. Etc                               Candra Fajri Ananda     Present

                                                                   Sumaryono               Present

                                                                   Heru Tjahjono           Present

    2.    January 12, 2023    The discussion includes:             Suprajarto              Present
                              1. Draft of Key Performance
                                 Indicator (KPI) of the Board of   Muhammad Mas'ud       Not present               Permit
                                 Directors                         Candra Fajri Ananda     Present
                              2. Follow-up related to Review
                                 of Standard Operating             Sumaryono               Present
                                 Procedure (SOP) for
                                 Implementing Governance           Heru Tjahjono           Present
                                 in Renumeration for
                                 Management
                              3. Etc

    3.    February 24, 2023   The discussion includes:             Suprajarto              Present
                              1. Overview with Directorate of
                                 Risk Management                   Muhammad Mas'ud         Present

                                                                   Candra Fajri Ananda     Present

                                                                   Sumaryono               Present

                                                                   Heru Tjahjono         Not present               Permit

    4.    March 9, 2023       The discussion includes:             Suprajarto              Present
                              1. Overview with Directorate of
                                 Credit for Micro, Retail, and     Muhammad Mas'ud       Not present               Permit
                                 Medium                            Candra Fajri Ananda   Not present               Permit

                                                                   Sumaryono               Hadir

                                                                   Heru Tjahjono         Not present               Permit

    5.    April 5, 2023       The discussion includes:             Suprajarto              Present
                              1. Recommendation of
                                 Renumeration and                  Muhammad Mas'ud         Present
                                 Nomination Committee              Candra Fajri Ananda     Present

                                                                   Sumaryono               Present

                                                                   Heru Tjahjono           Present




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                                                                                                                GOVERNANCE




                                   Meeting                      Meeting                 Atendance               Reason for
No.           Date
                                   Agenda                      Participants                                      Absence

6.    April 26, 2023    The discussion includes:            Suprajarto                    Present
                        1. Key Performance Indicator
                           (KPI) Management and             Muhammad Mas'ud               Present
                           Technical Guidance on the
                                                            Candra Fajri Ananda           Present
                           Calculation of Tantiem and
                           Other Allowances for Bank        Sumaryono                     Present
                           Jatim’s Management
                                                            Suprajarto                    Present

7.    May 3, 2023       The discussion includes:            Suprajarto                    Present
                        1. Overview of Structure and
                           Scope of Work of SEVP            Muhammad Mas'ud             Not present               Permit
                           Network & Services               Candra Fajri Ananda           Present
                        2. Discussion of Progress related
                           to Corporate Action Plan KUB     Sumaryono                     Present
                           with Bank NTB Syariah

8.    June 23, 2023     The discussion includes:            Suprajarto                    Present
                        1. Recommendation of
                           Renumeration and Nomi-           Muhammad Mas'ud               Present
                           nation Committee related to      Candra Fajri Ananda           Present
                           the Sharia Superviso-ry Board
                        2. Revision of RBB/Bank             Sumaryono                     Present
                           Business Plan Year 2023
                                                            Adhy Karyono*                 Present

9.    July 20, 2023     The discussion includes:            Suprajarto                    Present
                        1. Recommendation of Audit
                           Committee related to Internal    Muhammad Mas'ud               Present
                           Audit Division Leader of Bank    Candra Fajri Ananda           Present
                           Jati.
                                                            Sumaryono                     Present

                                                            Adhy Karyono*                 Present

10.   July 25, 2023     The discussion includes:            Suprajarto                    Present
                        1. Follow-up Business Plan
                           Exposure Year 2023 by SEVP       Muhammad Mas'ud             Not present               Permit
                           Corporate, Syndicated and        Candra Fajri Ananda           Present
                           Institutional
                                                            Sumaryono                     Present

                                                            Adhy Karyono*               Not present

11.   July 29, 2023     The discussion includes:            Suprajarto                    Present
                        1. Coordination of Board of
                           Commissioner related to          Muhammad Mas'ud               Present
                           Explanation and Clarification    Candra Fajri Ananda         Not present               Permit
                           of Legal Counsel of Mr.
                           Suprajarto, President            Sumaryono                     Present
                           Commissioner of Bank Jatim
                                                            Adhy Karyono*               Not present               Permit

12.   August 18, 2023   The discussion includes:            Suprajarto                    Present
                        1. Supervisory Report of Board
                           of Commissioner regarding        Muhammad Mas'ud               Present
                           RBB/Bank Business Plan 1st       Candra Fajri Ananda         Not present               Permit
                           Semester year 2023
                        2. Proposal of Temporary            Sumaryono                     Present
                           Replacement for Com-pliance
                           Director                         Adhy Karyono*               Not present               Permit
                        3. Renumeration & Nomination
                           Committee:
                           - Composition            of
                              Renumeration           &
                              Nomination     Committee
                              Members
                           - Review of KPI of Board of
                              Commissioners




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023   357
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                                               Meeting                         Meeting                  Atendance     Reason for
No.              Date
                                               Agenda                         Participants                             Absence

 13.    October 2, 2023            The discussion includes:               Suprajarto                      Present
                                   1. Overview with Directorate of
                                      Finance, Treasury & Global          Muhammad Mas'ud                 Present
                                      Services
                                                                          Candra Fajri Ananda           Not present     Permit

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 14.    October 2, 2023            The discussion includes:               Suprajarto                      Present
                                   1. Overview with SEVP Sharia
                                      Business                            Muhammad Mas'ud                 Present

                                                                          Candra Fajri Ananda           Not present     Permit

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 15.    October 2, 2023            The discussion includes:               Suprajarto                      Present
                                   1. Overview with SEVP
                                      Consumer Banking                    Muhammad Mas'ud                 Present

                                                                          Candra Fajri Ananda                           Permit

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 16.    October 2, 2023            The discussion includes:               Suprajarto                      Present
                                   1. Overview with SEVP
                                      Corporate, Syndicated &             Muhammad Mas'ud                 Present
                                      Institutional
                                                                          Candra Fajri Ananda           Not present     Permit

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 17.    October 10, 2023           The discussion includes:               Suprajarto                      Present
                                   1. Overview of Human Capital
                                      Division                            Muhammad Mas'ud               Not present     Permit

                                                                          Candra Fajri Ananda             Present

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 18.    October 27, 2023           The discussion includes:               Suprajarto                      Present
                                   1. Overview with Operational
                                      Directorate                         Muhammad Mas'ud               Not present     Permit

                                                                          Candra Fajri Ananda           Not present

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono*                 Not present

 19     December 27, 2023          The discussion includes:               Muhammad Mas'ud                 Present
                                   1. Findings of FSA Year 2023
                                      (in the scope of work with          Candra Fajri Ananda             Present
                                      Board of Commissioners and
                                      the Board of Commissioners          Sumaryono                       Present
                                      Committees).
                                   2. Report on the Implementation
                                      of the Work Pro-gram and
                                      Budget of the Board and
                                      Board    of    Commissioners
                                      Committees Year 2023.
                                   3. Work Program and Budget
                                      Plan for the Board of
                                      Commissioners and Board of
                                      Commissioners     Committee
                                      Year 2024.
                                   4. Etc.

 20     December 28, 2023          The discussion includes:               Muhammad Mas'ud                 Present
                                   1. Implementation Report of
                                      GMS Year 202                        Candra Fajri Ananda             Present

                                                                          Sumaryono                       Present

                                                                          Adhy Karyono                    Present

Description:
* Appointed as Commissioner at the 2022 Annual GMS on April 12, 2023 and effective November 24, 2023.


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Joint Meeting of the Board of Commissioners and the Board of Directors

The Joint Meeting of the Board of Commissioners with the Board of Directors consists of a Joint Meeting of the Board of Commissioners
inviting the Board of Directors or vice versa.


REALIZATION OF JOINT MEETINGS OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS


The Joint Meeting of the Board of Commissioners and the Board of Directors was held in accordance with policy. Meeting materials
must be submitted no later than 5 (five) days. Throughout 2023, the agenda, dates and participants of the Joint Meetings of the
Board of Commissioners and the Board of Directors are as follows.


 Table of Joint Meetings of the Board of Commissioners and Directors

                                                Board of                                    Board of
                                                                   Present/                                  Present/
                                              Commissioners                   Reason for    Directors                      Reason for
 No      Date        Meeting Agenda                                  Not                                       Not
                                                Meeting                        Absence      Meeting                         Absence
                                                                   Present                                   Present
                                               Participants                                Participants

  1.   January 12,   The discussion          Suprajarto             Present                Busrul Iman         Present
       2023          includes:
                     1. Audit Plan           Muhammad Mas'ud          Not       Permit     Tonny               Present
                     2. Adjustment      of                          present                Prasetya
                        Bank Business Plan   Candra Fajri Ananda    Present                Arief               Present
                        (RBB) Year 2023                                                    Wicaksono
                     3. Etc.
                                             Sumaryono              Present                Eko Susetyono       Present

                                             Heru Tjahjono          Present                Edi Masrian-to      Present

                                                                                           Zulhelfi Abidin     Present

  2.   January 13,   The discussion          Suprajarto             Present                Busrul Iman         Present
       2023          includes:
                     1. Evaluation of Bank   Muhammad Mas'ud          Not       Permit     Tonny               Present
                        Jatim’s Financial                           present                Prasetya
                        Performance Year     Candra Fajri Ananda      Not       Permit     Arief               Present
                        2022                                        present                Wicaksono

                                             Sumaryono              Present                Eko Susetyono       Present

                                             Heru Tjahjono          Present                Edi Masrianto       Present

                                                                                           Zulhelfi Abidin     Present

  3    January 26,   The discussion          Suprajarto             Present                Busrul Iman         Present
       2023          includes:
                     1. Results of Imple-    Muhammad Mas'ud        Present                Tonny               Present
                        mentation of                                                       Prasetya
                        Governance Self      Candra Fajri Ananda    Present                Arief             Not present   Official travel
                        Assessment Year                                                    Wicaksono
                        2022
                                             Sumaryono                Not       Permit     Eko Susetyono       Present
                                                                    present

                                             Heru Tjahjono          Present                Edi Masrianto       Present

                                                                                           Zulhelfi Abidin     Present

  4.   January 30,   The discussion          Suprajarto             Present                Busrul Iman         Present
       2023          includes:
                     1. Disccusion of the    Muhammad Mas'ud        Present                Tonny               Present
                        Results of the                                                     Prasetya
                        Governance Self      Candra Fajri Ananda    Present                Arief               Present
                        Assessment in                                                      Wicaksono
                        December 2022
                                             Sumaryono                Not       Permit     Eko Susetyono       Present
                                                                    present

                                             Heru Tjahjono          Present                Edi Masrian-to      Present

                                                                                           Zulhelfi Abidin     Present




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                                                                                                        Annual Report 2023          359
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                                             Board of                                    Board of
                                                                Present/                                  Present/
                                           Commissioners                   Reason for    Directors                      Reason for
No       Date     Meeting Agenda                                  Not                                       Not
                                             Meeting                        Absence      Meeting                         Absence
                                                                Present                                   Present
                                            Participants                                Participants

 5    February    The discussion          Suprajarto             Present                Busrul Iman         Present
      17, 2023    includes:
                  1. Evaluation           Muhammad Mas'ud          Not        Izin      Tonny Pra-        Not present
                     of Financial                                present                setya
                     Perfor-mance of      Candra Fajri Ananda    Present                Arief               Present
                     Bank Jatim as of                                                   Wicaksono
                     January 2023
                                          Sumaryono              Present                Eko Susetyono        Hadir

                                          Heru Tjahjono          Present                Edi Masrianto     Not present

                                                                 Present                Zulhelfi Abidin     Present

 6    March 20,   The discussion          Suprajarto             Present                Busrul Iman         Present
      2023        includes:
                  1. Adjustment of RBB    Muhammad Mas'ud          Not       Permit     Tonny Pra-          Present
                     Year 2023                                   present                setya
                  2. Evaluation           Candra Fajri Ananda    Present                Arief               Present
                     of Financial                                                       Wicaksono
                     Performance
                     of Bank Jatim        Sumaryono              Present                Eko Susetyono       Present
                     Position February
                     2023                 Heru Tjahjono          Present                Edi Masrian-to      Present

                                                                                        Zulhelfi Abidin     Present

 7    April 4,    The discussion in-      Suprajarto             Present                Busrul Iman         Present
      2023        cludes:
                  1. Preparation of the   Muhammad Mas'ud        Present                Tonny               Present
                     Implementation                                                     Prasetya
                     of Annual GMS of     Candra Fajri Ananda    Present                Arief               Present
                     Bank Jatim Fiscal                                                  Wicaksono
                     Year 2022
                                          Sumaryono              Present                Eko Susetyono       Present

                                          Heru Tjahjono          Present                Edi Masrianto       Present

                                                                                        Zulhelfi Abidin     Present

 8    May 19,     The discussion          Suprajarto             Present                Busrul Iman         Present
      2023        includes:
                  1. Evaluation of        Muhammad Mas'ud        Present                Tonny               Present
                     Financial Perfor-                                                  Prasetya
                     mance of Bank        Candra Fajri Ananda    Present                Arief               Present
                     Jatim as of April                                                  Wicaksono
                     2023
                  2. The discussion of    Sumaryono              Present                Eko Susetyono       Present
                     the Simulation of
                     RBB Changes Year                                                   Edi Masrianto       Present
                     2023                                                               Zulhelfi Abidin     Present
                  3. Etc.
                                                                                        Arif Suhirman*      Present

 9    June 23,    The discussion          Suprajarto             Present                Busrul Iman         Present
      2023        includes:
                  1. Evaluation of        Muhammad Mas'ud        Present                Tonny               Present
                     Financial Perfor-                                                  Prasetya
                     mance of Bank        Candra Fajri Ananda    Present                Arief             Not present     Permit
                     Jatim as of May                                                    Wicaksono
                     2023.
                  2. The discussion of    Sumaryono              Present                Eko Susetyono       Present
                     RBB Revision Year
                     2023                 Adhy Karyono           Present                Edi Masrianto       Present

                                                                                        Zulhelfi Abidin     Present




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                                              Board of                                    Board of
                                                                 Present/                                  Present/
                                            Commissioners                   Reason for    Directors                      Reason for
No       Date      Meeting Agenda                                  Not                                       Not
                                              Meeting                        Absence      Meeting                         Absence
                                                                 Present                                   Present
                                             Participants                                Participants

10.   July 20,     The discussion          Suprajarto             Present                Busrul Iman         Present
      2023         includes:
                   1. Evaluation of        Muhammad Mas'ud        Present                Tonny               Present
                      Financial Perfor-                                                  Prasetya
                      mance of Bank        Candra Fajri Ananda    Present                Arief               Present
                      Jatim as of June                                                   Wicaksono
                      2023.
                   2. Key Performance      Sumaryono              Present                Eko Susetyono       Present
                      Indicator of Board
                      of Directors                                                       Edi Masrianto       Present
                   3. Bank Business                                                      Zulhelfi Abidin     Present
                      Group with Bank
                      NTB Syariah
                   4. Bank Business
                      Group with Bank
                      Lampung

11    July 27,     The discussion          Suprajarto             Present                Busrul Iman         Present
      2023         includes:
                   1. Results of Imple-    Muhammad Mas'ud          Not       Permit     Tonny               Present
                      mentation of                                present                Prasetya
                      Gov-ernance Self     Candra Fajri Ananda    Present                Arief               Present
                      Assess-ment June                                                   Wicaksono
                      Year 2023
                                           Sumaryono              Present                Eko Susetyono       Present

                                                                                         Edi Masrianto       Present

                                                                                         Zulhelfi Abidin     Present

12    August 18,   The discussion          Suprajarto             Present                Busrul Iman         Present
      2023         includes:
                   1. Evaluation           Muhammad Mas'ud        Present                Tonny               Present
                      of Financial                                                       Prasetya
                      Performance of       Candra Fajri Ananda    Present                Arief             Not present     Permit
                      Bank Jatim as of                                                   Wicaksono
                      July 2023
                                           Sumaryono              Present                Eko Susetyono       Present

                                                                                         Edi Masrian-to      Present

                                                                                         Zulhelfi Abidin     Present

13    September    The discussion          Suprajarto             Present                Busrul Iman         Present
      22, 2023     includes:
                   1. Evaluation of        Muhammad Mas'ud          Not       Permit     Tonny               Present
                      Financial Perfor-                           present                Prasetya
                      mance of Bank        Candra Fajri Ananda    Present                Arief               Present
                      Jatim as of August                                                 Wicaksono
                      2023
                   2. Etc.                 Sumaryono              Present                Eko Susetyono     Not present     Permit

                                                                                         Edi Masrianto       Present

                                                                                         Zulhelfi Abidin     Present




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      Annual Report 2023       361
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                                             Board of                                    Board of
                                                                Present/                                  Present/
                                           Commissioners                   Reason for    Directors                      Reason for
No      Date      Meeting Agenda                                  Not                                       Not
                                             Meeting                        Absence      Meeting                         Absence
                                                                Present                                   Present
                                            Participants                                Participants

14    September   The discussion          Suprajarto             Present     Permit     Tonny               Present
      22, 2023    includes:                                                             Prasetya
                  1. Evaluations of
                     Follow-up the        Muhammad Mas'ud          Not                  Arief               Present
                     Inter-nal Audit                             present                Wicaksono
                     Findings and Legal   Candra Fajri Ananda    Present                Eko Susetyono     Not present     Permit
                     Issues
                                          Sumaryono              Present                Edi Masrianto       Present

                                                                                        Zulhelfi Abidin     Present



15    October     The discussion          Suprajarto             Present                Busrul Iman         Present
      11, 2023    includes:
                  1. The Discussion of    Muhammad Mas'ud        Present                Tonny               Present
                     Corporate Action                                                   Prasetya
                     Plan To Invest in    Candra Fajri Ananda    Present                Arief               Present
                     Bank NTB Syariah                                                   Wicaksono
                     (KUB)
                  2. Evaluation           Sumaryono              Present                Eko Susetyono       Present
                     of Financial
                     Performance of                                                     Edi Masrianto       Present
                     Bank Jatim as of                                                   Zulhelfi Abidin     Present
                     September 2023
                  3. Etc.

                                                                                        Arif Suhirman       Present

16.   November    Discussion includes:    Suprajarto               Not       Permit     Busrul Iman         Present
      24, 2023    1. Evaluation of Bank                          present
                     Jatim’s Financial
                     Performance as of    Muhammad Mas'ud        Present                Tonny               Present
                     October 2023                                                       Prasetya
                  2. Bank Business Plan   Candra Fajri Ananda    Present                Arief               Present
                     (RBB) for 2024                                                     Wicaksono

                                          Sumaryono              Present                Eko Susetyono       Present

                                          Adhy Karyono           Present                Edi Masrianto       Present

                                                                                        Zulhelfi Abidin     Present

                                                                                        Arif Suhirman       Present

17.   December    The discussion          Muhammad Mas'ud        Present                Busrul Iman         Present
      28, 2023    includes:
                  Evaluation of           Candra Fajri Ananda    Present                Tonny               Present
                  Financial                                                             Prasetya
                  Performance of          Sumaryono              Present                Arief               Present
                  Bank Jatim as of                                                      Wicaksono
                  November 2023
                                          Adhy Karyono           Present                Eko Susetyono       Present

                                                                                        Edi Masrianto       Present

                                                                                        Zulhelfi Abidin     Present

                                                                                        Arif Suhirman       Present




       PT Bank Pembangunan Daerah Jawa Timur Tbk
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Frequency and Participants of Board of Commissioners’ Meetings

During 2023, Board of Commissioners has held and participated in 18 (eighteen) internal meeting and 17 (seventeen) of joint
meeting of Board of Commissioners with Board of Directors. The frequency and attendance meetings for each member of the Board
of Commissioners can be seen in the table below.


 Table of Frequency and Participants of Board of Commissioners Meetings

                                                                                    Joint Meeting of Board of
                                      Board of Commissioners Meeting              Commissioners with Board of                            GMS
                                                                                              Directors

                                         Number and Percentage of                   Number and Percentage of                   Number and Percentage of
    Name             Position
                                                   Presenters                                Presenters                                Presenters

                                       Number         Number         Percen      Number          Number         Percen      Number      Number      Percen
                                          of              of          tage           of              of          tage          of          of       tage
                                      Meetings       Presenters                 Meetings        Presenters                 Meetings    Presenters

 Suprajarto*      President               18              18         100%            16              15          93%            1           1       100%
                  Commissioner

 Candra Fajri     Independent             20              13          65%            17              10          59%            1           1       100%
 Ananda           Commissioner

 Muhammad         Independent             20              13          65%            17              16          94%            1           1       100%
 Mas’ud           Commissioner

 Sumaryono        Independent             20              20         100%            17              15          88%            1           1       100%
                  Commissioner

 Heru             Commissioner             5              3           60%            7               7          100%            -           -         -
 Tjahjono**

 Adhy             Commissioner             1              1             1            2               2          100%            -           -         -
 Karyono***

 *Stopped serving as President Commissioners dated December 19, 2023 (passed away).
 **Stopped serving as Board of Commissioners dated April 12, 2023 (dismissed at the Annual GMS Year 2022).
 ***Appointed as Board of Commissioners at the Annual GMS Year 2022, dated April 12, 2023, and was effective from November 24, 2023.



Training and/or Increasing Competence of                                              2. Increasing relationships and relationships with external
Members of The Board of Commissioners                                                    stakeholders.
                                                                                      3. Supporting the implementation of duties and responsibilities
In general, the policy regarding the competency development                              supported by knowledge of educational outcomes.
of members of the Board of Commissioners of Bank Jatim was                            4. Developing     professional   knowledge,      competence
regulated in the Board of Commissioners’ Work Guidelines                                 and leadership abilities of the Directors and Board of
No. 060/01/DK/KEP dated January 15, 2021. In the Work                                    Commissioners in line with the latest developments in the
Guidelines for the Board of Commissioners, it was stated that                            industry and good corporate governance.
the Board of Commissioners should always improve knowledge                            5. Increasing awareness that education, introduction and
and insight by following developments in the banking industry                            development programs for the Board of Commissioners
in particular and the business world in general so that it had a                         became an important part of the company’s learning
positive impact on the operations of Bank Jatim, one of which                            and development process in addition to strengthening
was through education programs/ training to improve the                                  the structure and strengthening corporate governance.
competence.                                                                              perusahaan.


Specifically related to the implementation of education/                              The Board of Commissioners determined that this education/
training programs to improve the competence of the Board                              training program had to be attended by each member of the
of Commissioners, it was arranged in the work program of the                          Board of Commissioners at least 2 (two) times in 1 (one) year.
Board of Commissioners every year. Competency development                             The training and/or competency improvement attended by the
aimed to:                                                                             Board of Commissioners during 2023 are as follows.
1. Increasing the insight and knowledge of the Board of
     Commissioners in accordance with their fields and business
     developments.




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                                                                                                                          Annual Report 2023          363
Page 366
                                                Types of Training and Development Materials                            Time and place
       Name                Position                                                                                                          Organizer
                                                            Competence/Training                                       Implementation

Suprajarto*              President         National Seminar on Challenges, Opportunities and Banking                 Medan, May 11, 2023     FKDK - BPDSI
                         Commissioner      Strategies in Implementing the Financial Sector Development
                                           and Strengthening Law (UUP2SK)

                                           National Seminar on Economy Outlook 2024 in the                           Surabaya, November      FKDK - BPDSI
                                           Development of the Digital Economy: Opportunities and                          16, 2023
                                           Challenges for Regional Development Banks

                                           National Seminar on Awareness of the Threat of Cyber Crime                Surabaya, November      FKDK-BPDSI
                                           in the Midst of Digital Banking Transformation Efforts                         16, 2023

Candra Fajri Ananda      Independent       National Seminar on Challenges, Opportunities and Banking                 Medan, May 11, 2023     FKDK - BPDSI
                         Commissioner      Strategies in Implementing the Financial Sector Development
                                           and Strengthening Law (UUP2SK)

                                           National Seminar on Economy Outlook 2024 in the                           Surabaya, November      FKDK - BPDSI
                                           Development of the Digital Economy: Opportunities and                          16, 2023
                                           Challenges for Regional Development Banks

                                           National Seminar on Awareness of the Threat of Cyber Crime                Medan, May 11, 2023     FKDK-BPDSI
                                           in the Midst of Digital Banking Transformation Efforts

Muhammad Mas’ud          Independent       National Seminar on Challenges, Opportunities and Banking                 Surabaya, November      FKDK - BPDSI
                         Commissioner      Strategies in Implementing the Financial Sector Development                    16, 2023
                                           and Strengthening Law (UUP2SK)

                                           National Seminar on Economy Outlook 2024 in the                           Surabaya, November      FKDK-BPDSI
                                           Development of the Digital Economy: Opportunities and                          16, 2023
                                           Challenges for Regional Development Banks

                                           National Seminar on Awareness of the Threat of Cyber Crime                Medan, December 7,      FKDK-BDPSI
                                           in the Midst of Digital Banking Transformation Efforts                           2023

                                           National Seminar on Indonesian Economic Outlook in 2024                   Medan, December 7,      FKDK - BPDSI
                                                                                                                            2023

Sumaryono                Independent       National Seminar on Challenges, Opportunities and Banking                 Medan, May 11, 2023     FKDK - BPDSI
                         Commissioner      Strategies in Implementing the Financial Sector Development
                                           and Strengthening Law (UUP2SK)

                                           National Seminar on Economy Outlook 2024 in the                           Surabaya, November      FKDK-BPDSI
                                           Development of the Digital Economy: Opportunities and                          16, 2023
                                           Challenges for Regional Development Banks

                                           National Seminar on Awareness of the Threat of Cyber Crime                    Surabaya, 16        FKDK-BDPSI
                                           in the Midst of Digital Banking Transformation Efforts                       November 2023

                                           National Seminar on Indonesian Economic Outlook in 2024                   Medan, December 7,      FKDK - BPDSI
                                                                                                                            2023

Heru Tjahjono**          Commissioner      -                                                                                    -                 -

Adhy Karyono***                            Provision of Knowledge of Risk Management for the                        Surabaya, July 4, 2023       LPPI
                                           Prospective Board of Commissioners

                                           National Seminar on Economy Outlook 2024 in the                           Surabaya, November      FKDK - BPDSI
                         Commissioner      Development of the Digital Economy: Opportunities and                          16, 2023
                                           Challenges for Regional Development Banks

                                           National Seminar on Awareness of the Threat of Cyber Crime                Surabaya, November      FKDK - BPDSI
                                           in the Midst of Digital Banking Transformation Efforts                         16, 2023

*Stopped serving as President Commissioners dated December 19, 2023 (passed away).
**Stopped serving as Board of Commissioners dated April 12, 2023 (dismissed at the Annual GMS Year 2022)
***Appointed as Board of Commissioners at the Annual GMS Year 2022, dated April 12, 2023 and was effective from November 24, 2023.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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Orientation Program for New Board of                               3. Good Corporate Governance, duties, authorities and
Commissioners                                                         responsibilities of the Board of Commissioners and
                                                                      Directors, delegation of authority and limits of authority
The Orientation Program is very important to be implemented,          of the Board of Commissioners in carrying out supervisory
because the members of the Board of Directors can come                duties on the company based on applicable laws and
from various backgrounds, so that in order to form a solid            regulations;
work team, the Orientation Program is mandatory to run. The        4. Committees under the Board of Commissioners formed
provisions concerning the Orientation program must be given           and directly responsible to the Board of Commissioners,
to Directors who are taking office for the first time must be         and the Secretariat of the Board of Commissioners which
given an orientation program regarding the Bank.                      assists the smooth running of the duties of the Board of
                                                                      Commissioners;
The orientation program that is given can be in the form of        5. Remuneration and facilities provided to members of the
participantss, meetings or visits to the Company’s facilities,        Board of Commissioners.
introductions to Division Leaders, Groups and employees of
the Company and other programs.                                    Procedures and Frequency of Giving Advice

During 2023, there was 1 (one) new Board of Commissioner           Providing advice from the Board of Commissioners to the Board
appointed in the GMS, namely Adhy Karyono (Commissioner).          of Directors through written letters or at meetings. Meetings
The induction program for new Commissioners will be held on        held by the Board of Commissioners are divided into 2 (two),
April 13, 2023.                                                    namely:
                                                                   1. Internal meetings of the Board of Commissioners.
In carrying out the Company’s introduction program in general      2. Meetings of the Board of Commissioners and the Board of
to the two new Commissioners, an orientation program was               Directors.
carried out by delivering material including information/matters
as follows:                                                        In addition to these two meetings, the Board of Commissioners
1. Vision, mission, organizational structure of the Company,       also conducts coordination meetings with the Committees
    business activities and operational network;                   under the Supervision of the Board of Commissioners consisting
2. Annual Report, Corporate Plan and Bank Business Plan,           of Audit Committee Meetings, Risk Monitoring Committee
    the company’s Code of Ethics, Bank Jatim Work Culture,         Meetings and Remuneration and Nomination Committee
    the Company’s Articles of Association, and the Board of        Meetings.
    Commissioners’ Work Rules;



Recommendations, Implementation of Duties of The Board of Commissioners, and Supervision of
The Company’s Strategy Implementation

Throughout 2023 the Board of Commissioners provided recommendations and carried out the duties and responsibilities of the
Board of Commissioners through forums, including:
1. Board of Commissioners Meeting
2. Meetings with the Committees under the Board of Commissioners
3. On site visit of the Board of Commissioners.


The Board of Commissioners provided recommendations and carried out the duties and responsibilities of the Board of
Commissioners. During 2023, the Board of Commissioners issued 15 (fiveteen) letters of approval which were the authority of the
Board of Commissioners as regulated in the Articles of Association and applicable regulations. Some of these agreements are
conveyed as follows.
1. Audit Plan for the Internal Audit Division for the 2023 Period;
2. Implementation of the Annual General Meeting of Shareholders for the 2022 Financial Year of PT Bank Pembangunan Daerah
   Jawa Timur Tbk;
3. Adjustment of the Bank Jatim Business Plan for 2023;
4. Submission of Key Performance Indicator (KPI) Data for Bank Jatim Management in 2022;
5. Procurement of a Public Accounting Firm (KAP) in the context of Auditing Bank Jatim’s Financial Reports as part of the Bank
   Business Group (KUB) Due Diligence Process with Bank NTB Syariah;
6. Revised Bank Jatim Bank Business Plan for 2023;
7. Replacement of the Vice President of Internal Audit;




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8. Sharia Supervisory Board (PDPS) training for Sharia Supervisory Board Candidates
9. Sharia Supervisory Board (DPS) certification;
10. Changes in Credit or Financing Product and Activity Policies (KPA PAP);
11. Appointment of a Public Accountant and Public Accounting Firm to audit the Financial Report of PT Bank Pembangunan Daerah
    Jawa Timur Tbk for the 2023 Financial Year;
12. Process of Providing Credit to Related Parties;
13. Bank Jatim Business Plan for 2024;
14. Proposed Company Handbook (BPP) Policies & Procedures for Capital Participation Activities; And
15. Anti-Bribery Management System Policy (SMAP).



Performance Assessment of The Board of Director and Board of Commissioners

Performance Assessment of The Board of Directors

The evaluation of the performance of the Board of Directors both collegial and individual conducted by the Board of Commissioners
and Shareholders was held in the process of the General Meeting of Shareholders (GMS). The assessment was carried out based
on the achievement of key performance indicators (KPI) that had been previously approved by the Shareholders, the Board of
Commissioners and the Board of Directors.


PROCEDURE FOR IMPLEMENTING THE PERFORMANCE ASSESSMENT OF THE BOARD OF DIRECTORS
The performance achievement of the Board of Directors is reported to shareholders through the GMS.


DIRECTORS’ PERFORMANCE EVALUATION CRITERIA
Basis for assessing the performance of the Board of Directors refers to Key Performance Indicators (KPI). The KPIs for each Director
in 2023 are as follows.


KPI FOR PRESIDENT DIRECTOR


 No.                   PERSPECTIVE                                                           KPI


   1    FINANCIAL

        Loan                                   Carry out loan distribution using prudential banking principles (healthy, selective & Prudential)

        TPF                                    Achievement of Total TPF

        Net Income                             Achievement of net income

        Total Assets                           Achievement of Total Asset

        LDR                                    LDR Ratio

        BOPO                                   BOPO Ratio

        CASA                                   CASA Ratio

        NPL                                    NPL Ratio

        FBI                                    Growth Fee Based Income (FBI)




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 No.                  PERSPECTIVE                                                             KPI


  2    CUSTOMER                                 Persetujuan Revisi RBB Bank Jatim Tahun 2023

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
       KUB (Bank Business Group)
                                                FSA)

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rating 2)

       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Financial Statements                     Ensure that financial reports comply with applicable IFRS & Financial Rules

  4    LEARNING AND GROWTH

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       Company Awards                           Get awards for the company at least 5 times a year



KPI FOR DIRECTOR OF MICRO, RETAIL & MEDIUM


 No.                  PERSPECTIVE                                                             KPI


  1    FINANCIAL

       Loan                                     Carry out loan distribution using prudential banking principles (healthy, selective & Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income

       Total Assets                             Achievement of Total Asset

       LDR                                      LDR Ratio

       NPL                                      NPL Ratio

       FBI                                      Growth Fee Based Income (FBI)

  2    CUSTOMER

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
       KUB (Bank Business Group)
                                                FSA)

       Implementation of Digital Banking        Submitting Loan applications via e-Loan

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rat-ing 2)




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 No.                  PERSPECTIVE                                                              KPI


       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
       Branch Areas                             target area (Conventional & Sharia) every month.

       PL Control                               Ensure the implementation of Performing Loan control according to the targets set

  4    LEARNING AND GROWTH

                                                Ensuring increasing employee competency through policy socialization & implementing policy
       Socialization and Policy Process
                                                updates according to the timeline

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       HR Transformation                        Implementation of Corporate Culture in all work units



KPI FOR DIRECTOR OF OPERATIONS


 No.                  PERSPECTIVE                                                              KPI


  1    FINANCIAL

       Loan                                     Carry out loan distribution using prudential banking principles (healthy, selective & Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income

       Total Assets                             Achievement of Total Asset

       LDR                                      LDR Ratio

       BOPO                                     BOPO Ratio

       FBI                                      Growth Fee Based Income (FBI)

  2    CUSTOMER

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
       KUB (Bank Business Group)
                                                FSA)

       Reporting                                Responsible for reporting of all business activities

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rat-ing 2)

       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
       Branch Areas                             target area (Conventional & Sharia) every month.

                                                Supervise in every aspect of operations within the company, both operational aspects and
       Operational Supervision
                                                administrative and technology-based implementation in front office and back office settings.

       Implementation of IT-Based Operations    Optimizing IT-based operations, both e-channel and digital

  4    LEARNING AND GROWTH

                                                Ensuring increasing employee competency through policy socialization & implementing policy
       Socialization and Policy Process
                                                updates according to the timeline

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       HR Transformation                        Implementation of Corporate Culture in all work units

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KPI FOR DIRECTOR IT & DIGITAL


 No.                  PERSPECTIVE                                                             KPI


  1    FINANCIAL

       Loan                                     Melakukan penyaluran kredit dengan prinsip prudential banking (sehat, selektif & Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income

       Total Assets                             Achievement of Total Asset

       BOPO                                     BOPO Ratio

       FBI                                      Growth Fee Based Income (FBI)

  2    CUSTOMER

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
       KUB (Bank Business Group)
                                                FSA)

                                                Completion of Banking Digitalization (Online Account Opening, Online Deposits, Finger Print
       Digitalisasi
                                                Login, Super Micro Online Loans, etc.)

       ETPD                                     Implementation of the ETPD system in Regency and City Governments

       Pengguna J-Connect                       Increase the number of J-Connect users

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rat-ing 2)

       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
       Branch Areas                             target area (Conventional & Sharia) every month.

                                                Ensuring the implementation of data communication networks, data security, hardware and
       IT Security dan Operasional IT
                                                software management and control, utilization of IT infrastructure

                                                Plan and implement future IT programs to develop bank operations and business to remain
       IT Development
                                                competitive

  4    LEARNING AND GROWTH

                                                Ensuring increasing employee competency through policy socialization & implementing policy
       Socialization and Policy Process
                                                updates according to the timeline

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       HR Transformation                        Implementation of Corporate Culture in all work units


KPI FOR DIRECTOR OF RISK MANAGEMENT


 No.                  PERSPECTIVE                                                             KPI


  1    FINANCIAL

       Loan                                     Carry out credit distribution using prudential banking principles (healthy, selective &
                                                Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income



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                                                                                                            Annual Report 2023            369
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 No.                  PERSPECTIVE                                                             KPI


       Total Assets                             Achievement of Total Asset

       LDR                                      LDR Ratio

       BOPO                                     BOPO Ratio

       NPL                                      NPL Ratio

       Perbaikan Kolek 345                      Decrease in collectability 345 YoY

       FBI                                      Growth Fee Based Income (FBI)

       Extracomtable                            Obtain extracom

       Restrukturisasi                          Restructuring (3,4,5)

  2    CUSTOMER

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

       KUB (Bank Business Group)                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to FSA)

       Coordination between Directorates        Coordinating with other Directorates to optimize bank business activities

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rat-ing 2)

       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
       Branch Areas                             target area (Conventional & Sharia) every month.

                                                Controlling loan quality, both extracomtable and intracomtable, optimizing recovery results
       Controling
                                                both through restructuring and credit settlement

       Risk Identification                      Identify financial risks, mitigate security and company safety

       Policy                                   Ensure policies related to risk management

  4    LEARNING AND GROWTH

                                                Ensuring increasing employee competency through policy socialization & implementing policy
       Socialization and Policy Process
                                                updates according to the timeline

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       HR Transformation                        Implementation of Corporate Culture in all work units



KPI FOR DIRECTOR OF COMPLIANCE


 No.                  PERSPECTIVE                                                             KPI


  1    FINANCIAL

       Loan                                     Carry out loan distribution using prudential banking principles (healthy, selective & Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income

       Total Assets                             Achievement of Total Asset

       BOPO                                     BOPO Ratio

       FBI                                      Growth Fee Based Income (FBI)



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370    Annual Report 2023
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                                                                                                                             CORPORATE
                                                                                                                            GOVERNANCE




 No.                  PERSPECTIVE                                                              KPI


  2    CUSTOMER

       Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                                least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                                Development Banks (BPD) category.

       PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

       Audit Findings                           Monitoring audit findings (Internal & External) completed on time

       Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                                Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
       KUB (Bank Business Group)
                                                FSA)

       Accuracy of reporting                    STR and CTR reporting in accordance with regulations

                                                Increase the percentage of case resolution
       Legal
                                                Monitoring legal opinion activities and power of attorney

       Updating Customer Data                   Updating customer data

  3    INTERNAL BUSSINESS PROCESS

                                                The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
       Bank Soundness Level
                                                the risk predicate "Low to Moderate"

                                                Consistency of GCG implementation in accordance with FSA provisions and statutory
       GCG
                                                regulations with the predicate "Good" (Rat-ing 2)

       Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

       Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
       Branch Areas                             target area (Conventional & Sharia) every month.

       Policies and Procedures                  Ensure systems, policies and procedures comply with internal and external regulations

  4    LEARNING AND GROWTH

                                                Ensuring increasing employee competency through policy socialization & implementing policy
       Socialization and Policy Process
                                                updates according to the timeline

       Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

       HR Transformation                        Implementation of Corporate Culture in all work units



KPI FOR DIRECTOR OF FINANCE, TREASURY & GLOBAL
SERVICES


 No.                  PERSPECTIVE                                                             KPI


  1    FINANCIAL

       Loan                                     Carry out loan distribution using prudential banking principles (healthy, selective & Prudential)

       TPF                                      Achievement of Total TPF

       Net Income                               Achievement of net income

       Total Assets                             Achievement of Total Asset

       LDR                                      LDR Ratio

       BOPO                                     BOPO Ratio

       CASA                                     CASA Ratio

       NPL                                      NPL Ratio

       FBI                                      Growth Fee Based Income (FBI)

       International Banking Income             Trade Finance Income

       Treasury Income                          Obtain income from Treasury Transactions




                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                             Annual Report 2023             371
Page 374
No.                PERSPECTIVE                                                              KPI


 2    CUSTOMER

      Service Standard Rating                  The service standard rating position (Best Overall Performance Service Excellent) is at
                                               least 2nd position in Best Overall Performance Service Excellent from MRI for the Regional
                                               Development Banks (BPD) category.

      PEFINDO Rating                           PEFINDO Long Term Rating position on idAA-

      Audit Findings                           Monitoring audit findings (Internal & External) completed on time

      Customer Satisfaction                    Results of Customer Satisfaction Surveys by Independent Parties

                                               Realization of KUB (Bank Business Group) with 1 Regional Development Banks (process to
      KUB (Bank Business Group)
                                               FSA)

      Institutional Collaboration              Maintain good relations and increase cooperation with counterparties

 3    INTERNAL BUSSINESS PROCESS

                                               The minimum level of Bank Health is Composite Rating 2 and the Risk Profile assessment is at
      Bank Soundness Level
                                               the risk predicate "Low to Moderate"

                                               Consistency of GCG implementation in accordance with FSA provisions and statutory
      GCG
                                               regulations with the predicate "Good" (Rat-ing 2)

      Sustainable Finance Action Plan (RAKB)   Ensure the implementation of RAKB in accordance with provisions

      Performance Evaluation of Assisted       Branch performance with the Below/Poor predicate is a maximum of 2 branches from the total
      Branch Areas                             target area (Conventional & Sharia) every month.

      Financial Statements                     Ensure that financial reports comply with applicable IFRS & Financial Rules

 4    LEARNING AND GROWTH

                                               Ensuring increasing employee competency through policy socialization & implementing policy
      Socialization and Policy Process
                                               updates according to the timeline

      Employee Competency                      Attend National Seminars/National Workshops at least 2 times a year

      HR Transformation                        Implementation of Corporate Culture in all work units




      PT Bank Pembangunan Daerah Jawa Timur Tbk
372   Annual Report 2023
Page 375
                                                                                                              CORPORATE
                                                                                                             GOVERNANCE




PARTIES THAT DO THE ASSESSMENT                                    KRITERIA EVALUASI KINERJA DEWAN KOMISARIS


The performance evaluation of the Board of Directors was          The criteria to be used in assessing the performance of the
carried out by the Board of Commissioners and the GMS.            Board of Commissioners include:
                                                                  1. Passive Oversight of the Board of Commissioners,
RESULTS OF THE BOARD OF DIRECTOR PERFORMANCE                         including:
ASSESSMENT                                                           a. Implementation of review and response to the Bank’s
                                                                          Business Plan (RBB).
The implementation of the duties and responsibilities of the         b. Implementation of a follow-up review of the results/
Board of Commissioners and Directors as well as performance               findings of the audit (Internal/External).
achievements in the 2023 period will be presented and                c. Implementation of the Results of the Governance Self
accounted for at the GMS which will be held in 2024.                      Assessment.
                                                                     d. Implementation of a review of the Risk Profile Report,
Performance Assessment of The Board of                                    Review of the Compliance Function Report, Result of
Commissioners                                                             Review of Bank Soundness Level Report.
                                                                     e. Implementation of a review of the Board of Directors’
PROCEDURES FOR THE IMPLEMENTATION OF THE                                  policies (credit policy, capital, risk management
PERFORMANCE OF THE BOARD OF COMMISSIONERS                                 strategy, remuneration, and others)
                                                                  2. Active Supervision of the Board of Commissioners,
Assessment of the performance of the Board of Commissioners          including:
was carried out through the following procedures or                  a. Number of meetings.
mechanisms:                                                          b. Implementation of a review of the Bank’s business and
1. Performance Assessment of the Board of Commissioners                   financial performance reports (regular monitoring of
   by the GMS.                                                            the Bank’s performance).
   The Board of Commissioners’ Performance Assessment                c. Participate in branch and work unit performance
   was carried out by the Shareholders at the Annual General              evaluation activities.
   Meeting of Shareholders (GMS) when submitting the                 d. Visits to branches in order to carry out the supervisory
   Report on the Board of Commissioners’ supervisory duties               function.
   to the GMS in the Company’s annual report.                     3. Supervision of the Company’s Performance
2. Assessment of the performance of the Board of                     a. Rentability
   Commissioners through the preparation of a Self                   b. Liquidity
   Assessment                                                        c. Credit
   Assessment of the performance of the Board of                  4. Learning and Growth
   Commissioners of Bank Jatim was carried out by means of
   a self-assessment which is determined by considering the       PARTIES THAT DO THE ASSESSMENT
   duties and obligations in accordance with the Company’s
   Articles of Association and applicable laws and regulations.   The Board of Commissioners’ performance assessment process
                                                                  is carried out every semester and discussed in the Board of
The policies and procedures for implementing the performance      Commissioners’ Internal Meeting by observing the achievement
appraisal of the Board of Commissioners of Bank Jatim were        of each of the assessment indicators.
determined and agreed upon by the Board of Commissioners at
the Board of Commissioners’ meeting. The policy for assessing     In addition, the Board of Commissioners is also responsible
the performance of the Board of Commissioners was stipulated      for its performance to Shareholders in the GMS based on the
in Decree Number 059/009/ DK/KEP dated December 22,               obligations stated in the prevailing laws and regulations. The
2020 concerning Amendment to the Decree of the Board of           Board of Commissioners will be held accountable for their
Commissioners Number 059/005/ DK/KEP dated April 29,              performance in the 2023 period in the Annual GMS to be held
2020 concerning Work Paper on the Performance Assessment          in 2024.
of the Board of Commissioners of PT Bank Pembangunan East
Java Region Tbk.




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   Annual Report 2023     373
Page 376
RESULTS OF THE BOARD OF COMMISSIONER PERFORMANCE ASSESSMENT


                    Performance Assessment of The Board of Commissioners Working Paper (Self Assessment)

                                                                    Bobot                                                          Final
No    Perspective         Aspect                Indicator                         Target               Realization         Value
                                                                     (%)                                                           score

 1    Complience       Passive        a   Ratification of RBB         5     RBB is ratified        RBB is ratified in        1      5,0
      Perspective      supervi-sion       and/or revision of RBB            before November        accordance with the
                       (Mandatory)        on time                           30 and Revision of     provisions.
                                                                            RBB is ratified by
                                                                            Board of Commis-
                                                                            sioners before June
                                                                            30 every year.

                                      b   Preparation of              5     Carried out every      The preparation           1      5,0
                                          Supervisory Re-ports              semester (no later     of Supervisory
                                          on Bank Business Plan             than two months        Re-ports on Bank
                                          (RBB)                             after the semester     Business Plan (RBB)
                                                                            ends)                  is carried out in
                                                                                                   accordance with the
                                                                                                   provision and is on
                                                                                                   time accord-ing to
                                                                                                   targets.

                                      c   Implementation of           4     Implemented            Review of internal        1      4,0
                                          Review of Internal                according to the       Audit Results Re-
                                          Audit Results Re-port             provisions and on      ports and follow-up
                                          and follow-up to the              time according         on external audit
                                          external audit results.           to targets (every      results are carried
                                                                            semester)              out in accordance
                                                                                                   with provisions.

                                      d   Implementation of           4     Implemented            The Governance            1      4,0
                                          the Governance Self-              according to the       Self Assessment
                                          Assessment                        provisions and on      is carried out in
                                                                            time according         accordance with the
                                                                            to targets (every      provisions.
                                                                            semester)

                                      e   Carrying out                5     Dilaksanakan sesuai    Review Laporan            1      5,0
                                          reviews of Risk Profil            ketentuan dan tepat    Profil Risiko, Fungsi
                                          Reports, Compliance               waktu sesuai target.   Kepatuhan serta
                                          Functions, and Bank               (setiap semester).     Tingkat Kesehatan
                                          Soundness Levels                                         Bank dilaksanakan
                                                                                                   sesuai ketentuan

                                      f   Review and                  5     Implemented            The implementation        1      5,0
                                          approval of Board                 no later than 15       of the review of
                                          of Directors policies             (fifteen) working      Board of Directors
                                          that require approval             days from receipt      policies is carried
                                          from the Board of                 by the Board of        out in accordance
                                          Commissioners                     Commissioners.         with targets.
                                          (Corporate Actions,
                                          Credit Policy, Capital,
                                          Risk, Management
                                          Strategy,
                                          Renumeration, Etc.)

                                      g   Appointment fo a            5     Recommendations        Recommendations           1      5,0
                                          Public Accounting                 for KAPS who will      for appointing
                                          Firm for the Bank’s               carry out audits       KAPS to be carried
                                          Financial Reports                 of the Bank’s          out in accordance
                                                                            finan-cial reports     with rules and
                                                                            in accordance with     regulations.
                                                                            the rules and regu-
                                                                            lations.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
374    Annual Report 2023
Page 377
                                                                                                                             CORPORATE
                                                                                                                            GOVERNANCE




                   Performance Assessment of The Board of Commissioners Working Paper (Self Assessment)

                                                                   Bobot                                                             Final
No   Perspective         Aspect                Indicator                         Target                Realization           Value
                                                                    (%)                                                              score

                                     h   Review the                  5     Provide recom           The renumeration            1      5,0
                                         renumeration                      mendations              structure for the
                                         structure for the Board           re garding the          Board of Commis-
                                         of Commissioners and              re numeration           sioners and Board of
                                         Board of Directors.               structure for           Directors is reviewed
                                                                           the Board of            periodically in
                                                                           Commissioners and       accordance with the
                                                                           Board of Directors      provi-sions.
                                                                           in accord-ance
                                                                           with the provisions
                                                                           (at least every
                                                                           semester)

                                     i   Implementation of the       5     Availability of Bank    Has been fulfilled,         1      5,0
                                         Bank’s Nomina-tion                Nomination policy       the policy regarding
                                         Policy                            in accordance with      Bank Nomina-tions is
                                                                           the provisions.         available.

                         SUB TOTAL                                  43                                                               43,0

2    Internal         Active         a   Ratification of the         5     The RKAP of              Rencana Kerja dan          1      5,0
     Procces          Supervision        Work Plan and Budget              the Board of            Anggaran Dewan
     Perspective      of Board of        of the Board of                   Commis-sioners is       Komisaris disahkan
                      Commis-            Commissioners.                    ratified before the     tepat waktu sesuai
                      sioners                                              imple-mentation of      ketentuan
                                                                           the RKAP for the
                                                                           cur-rent year takes
                                                                           effect (No later than
                                                                           December 31)

                                     b   Number of Meetings          8     Internal Board of       The internal meet-          1      8,0
                                                                           Commissioners           ing of the Board of
                                                                           meetings are held at    Commissioners in
                                                                           least 12 times a year   the first Semester of
                                                                           (6 meetings every       2023 was car-ried
                                                                           semester)               out according to
                                                                                                   target

                                                                     8     Meetings between        Meetings of the             1      8,0
                                                                           the Board of Di-        Board of Commis-
                                                                           rectors are held at     sioners and Board
                                                                           least 6 times a year    of Directors in first
                                                                           (3 meetings every       semester of 2023
                                                                           semester)               were held 9 (nine)
                                                                                                   times.

                                     c   Implementation             10     Carried out at          The review of the           1     10,0
                                         of reviews of Bank                every meeting           Bank’s business
                                         Business and Financial            of the Board of         and financial
                                         performance reports               Commissioners and       performance
                                         (regular monitoring of            Board of                reports in the first
                                         bank performance)                 Directors according     semester of 2023
                                                                           to targets, namely      was carried out at
                                                                           once every 2            6 (six) meetings
                                                                           months (6 times a       between Board of
                                                                           year, 3 times per a     Commissioners and
                                                                           semester)               Board of Directors.

                                         Participate in branch/      6     Participate in          Implementation              1      6,0
                                         work unit performance             performance eval-       of branch/work
                                         eval-uation activities            uation activities of    unit performance
                                         and visit branches                branches/work units     evaluation activities.
                                         in order to carry                 or visit branches at    Implementation of
                                         out supervision and               least 3 times a year.   visits to branches to
                                         coaching functions.                                       carry out supervisory
                                                                                                   and coaching
                                                                                                   functions were
                                                                                                   carried out 5 (five)
                                                                                                   times.




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023          375
Page 378
                     Performance Assessment of The Board of Commissioners Working Paper (Self Assessment)

                                                                        Bobot                                                      Final
 No    Perspective         Aspect                Indicator                              Target        Realization         Value
                                                                         (%)                                                       score

                           SUB TOTAL                                     37                                                        37,00

  3    Financial        Financial            BALANCE SHEET                           TARGET          REALIZATION
       Perspective      Performance              POST
                        of the Bank
                        (as of June    a   Profitability                                                                   (%)
                        2023)              - Net profit                  2,5    1.648.909         1.470.105               89,16    2,23

                                           - Return        on   Asset    2,5    2,19%             1,87%                   85,39    2,13
                                             (ROA)

                                       b   Liquidity                                                                                 -

                                           - Third Party Funds           2,5    90.406.640        78.196.910              86,49    2,16
                                             (DPK)

                                           - LDR                         2,5    60,55%            70,03%                  115,66   2,89

                                       c   Credit                                                                                    -

                                           - Credit Expan-sion           2,5    54.738.950        54.760.902,00           100,04   2,50

                                           - NPL                         2,5    2,50%             2,49%                   100,40   2,51

                           SUB TOTAL                                     15                                                        14,43

  4.   Learning &       Competency         Competency                     5     Minimum 3 times   The implementa-           1        5
       Growth           Development        introduction/                        a year            tion of the Board
       Perspective      of Board of        development                                            of Commissioners
                        Com-mis-           programs (Workshop,                                    Workshop/ seminar
                        sioners            semi-nars,                                             in the first semester
                                           conferences, etc.)                                     / 2023 was carried
                                                                                                  out according to the
                                                                                                  target

                           SUB TOTAL                                      5                                                        5,00

                             TOTAL                                       100                                                       99,43



Performance Assessment of The Committee Under The Board of Commissioners and The Basis of
The Assessment

In order to increase the role of the Board of Commissioners in carrying out the supervisory function, the Board of Commissioners
is assisted by 3 (three) committees namely the Audit Committee, the Remuneration and Nomination Committee, and the Risk
Monitoring Committee. The procedure for evaluating the performance of the Committees under the Board of Commissioners
periodically (annually) evaluated the effectiveness of the performance of the Committees under the Board of Commissioners.


The evaluation criteria for the Committees under the Board of Commissioners were based on the Key Performance Indicators
that had been set for each Committee under the Board of Commissioners. KPI Committees under the Board of Commissioners
consist of 3 (three) aspects, namely Active Supervision, Passive Supervision and Competency Development. The Board of
Commissioners considers that during 2023 the Committees have carried out their duties and responsibilities quite effectively and
worked independently and provided useful input/ recommendations for the Board of Commissioners. The achievements of each KPI
Committee were as follows.


Achievements of Key Performance Indicator Audit Committee

The procedure for implementing the performance appraisal of the Audit Committee is determined and agreed upon with the Board
of Commissioners in a meeting of the Board of Commissioners with the Committee. The performance assessment of the Audit
Committee is carried out by means of a self-assessment which is determined by considering its duties and obligations in accordance
with the rules and work programs that have been determined.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
376     Annual Report 2023
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                                                                                                                         CORPORATE
                                                                                                                        GOVERNANCE




                                                                                                                        Value   Final
No      Aspect              Indicator                      Target                     Realization               Score
                                                                                                                         (%)    score

1    Passive        Evaluation of Annual           Executed accordingly       Implementation of Evaluation        1       5       5
     Surveillance   Historical General Financial   terms and conditions       of Annual Historical General
                    Audit Results from KAP         time on target.            Audit Results from KAP
                    (Public Accounting Firm)       (at least 1x in            (Public accounting firm)
                                                   a year).                   according to criteria

                    Evaluation of Follow-up        Carried out every          Evaluation/Monitoring               1      7,5     7,5
                    to General Audit Findings      quarterly (4x in           Follow-up to General Audit
                    from Internal Parties          a year)                    Findings from Internal Parties
                                                                              in accordance with provisions
                                                                              and on time

                    Special Audit & Fraud          Executed accordingly       The Special Audit & Fraud           1      7,5     7,5
                    Follow-up Evaluation from      provisions and on time     Follow-up Evaluation from the
                    the Internal Audit Division    according to target. (at   Internal Audit Division was
                                                   least once a year).        carried out in accordance with
                                                                              the specified provisions and
                                                                              targets

                    Evaluation of the Audit        Executed accordingly       Executed accordingly                1       5       5
                    Plan from the Internal         provisions and on time     provisions and on time
                    Audit Division for Approval    according to target. (at   according to target.
                    of the Implementation of       least once a year).
                    the Audit Plan


                    Reviewing projected            Carried out every          Do research on information          1      7,5     7,5
                    financial information and      quarterly (4x in           projections finances and
                    other reports related to       a year)                    reports others related to
                    financial information                                     financial information carried
                                                                              out in accordance with the
                                                                              provisions according to
                                                                              criteria

                    Providing                      Executed accordingly       Provide recommendations to          1      10      10
                    recommendations to the         terms and conditions       the Board of Commissioners
                    Board of Commissioners         time on target.            regarding appointment Based
                    regarding the appointment      (at least 1x in            accountant on independence,
                    of a Public Accounting         a year).                   space scope of assignment,
                    Firm (KAP) based                                          and compensation for services
                    on independence,
                                                                              is carried out according to
                    scope, assignment and
                                                                              criteria
                    compensation for services

                    Monitoring the                 Held every semester        Monitoring the                      1       5       5
                    implementation of the Anti     (2x a year)                implementation of the
                    Fraud Strategy (SAF) and                                  Anti-Fraud Strategy (SAF)
                    Gratification Control                                     and Gratification Control in
                                                                              accordance with the targets
                                                                              set

                    Review and provide             Implemented                Monitoring and evaluation           1       5       5
                    advice to the Board of         according to               of the implementation of the
                    Commissioners regarding        regulations and on         duties of the Internal Audit
                    potential conflicts of         time according to          Work Unit (SKAI) is carried out
                    interest                       targets.                   in accordance with provisions
                                                   (at least 1x in
                                                   a year).

                    Make an annual report          Implemented                The Audit Committee makes           1       5       5
                    on the implementation of       according to               an annual report on the
                    Audit Committee activities     regulations and on         implementation of the Audit
                    in the Annual Report           time according to          Committee’s activities in the
                                                   targets.                   Annual Report in accordance
                                                   (at least 1x in            with the provisions
                                                   a year).

                                            SUB TOTAL                                                                   57,50   57,50




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            Annual Report 2023        377
Page 380
                                                                                                                           Value   Final
  No          Aspect             Indicator                    Target                     Realization               Score
                                                                                                                            (%)    score

   2      Active         Audit Committee Meeting       Held every quarter (4x   Audit Committee Meetings             1      15      15
          Surveillance                                 a year )                 will be held 8 times during
                                                                                2023

                         Coordination Meeting with     Held every semester      Audit Committee                      1      10      10
                         Related Divisions             (2x a year)              Coordination Meetings with
                                                                                Related Divisions during 2023
                                                                                were held 6 times

                         Visits and communicate        Held every semester      Carrying out visits to Branch        1      10      10
                         directly with employees,      (2x a year)              Offices in order to carry out
                         including the Board of                                 supervisory functions in 2023
                         Directors, SKAI, SKMR, and                             5 times, carrying out visits and
                         Accountants regarding the                              communicating with the Board
                         duties and responsibilities                            of Directors and Divisions
                         of the Audit Committee                                 regarding the duties and
                                                                                responsibilities of the Audit
                                                                                Committee to run effectively.

                                                SUB TOTAL                                                                   35      35

   3      Competency     Self competency               Implemented              S e l f - c o m p e t e n c y       0,5     2,5    1,25
          Development    development by updating       according to the         development by updating
                         the understanding of          provisions and on        the      audit    committee’s
                         external and internal         time according to the    understanding of external and
                                                       target. (3x a year)      internal regulations in 2023
                                                                                has not been implemented
                                                                                optimally.

                         Competency improvement        Implemented              Implementation      of    Audit      1      2,5     2,5
                         programs, attending           according to the         Committee           workshops/
                         education, training           provisions and on        seminars/training/certification
                         and seminars and or           time according to the    in 2023 will be held twice
                         certification                 target. (2x a year)

                                                SUB TOTAL                                                                  7,50     2,50

                                                  TOTAL                                                                     100    95,00




                           Total Rating                                                                Description


 Value 80 – 100                                                          Very good

 Value 70 - < 80                                                         Good

 Value 55 - < 70                                                         Pretty good

 Value < 55                                                              Poor




Achievements of Key Performance Indicator Remuneration and Nomination Committee

The procedure for implementing the performance appraisal of the Remuneration and Nomination Committee is determined and agreed
upon with the Board of Commissioners in the Board of Commissioners’ Meeting with the Committee. The performance appraisal of the
Remuneration and Nomination Committee is carried out by means of a self-assessment which is determined by considering its duties and
obligations in accordance with the rules and work programs that have been determined.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
378     Annual Report 2023
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                                                                                                                               CORPORATE
                                                                                                                              GOVERNANCE




                                                                                                                               Value    Final
No       Aspect                   Indicator                             Target                      Realization       Score
                                                                                                                                (%)     score

 1     Passive        Prepare the composition and           Prepare Time Table and carry out     Implemented            1        10        10
       Surveillance   process of Nomination for             the nomination process for Bank      according to the
                      Bank Management (Board of             Management according to the          set target
                      Commissioners and Directors)          time needed

                      Develop policies and criteria         Formulate policies and criteria      Implemented            1        10        10
                      needed in the nomination process      for nomination of candidates for     according to the
                      for prospective Bank Management       Bank Management according to         set target
                      (Board of Commissioners and           the stipulated time
                      Directors)

                      Assist in the evaluation of the       Carry out performance                Implemented            1        10        10
                      performance of the Company’s          evaluations of the Company’s         according to the
                      Management                            Management at least 2 times a        set target
                                                            year (every semester)

                      Reviewing and proposing               Carry out a review and provide       Implemented            1        10        10
                      candidates who meet the               proposals for candidates for         according to the
                      requirements as members of            the Company’s Management             set target
                      the Board of Directors and/           who meet the requirements to
                      or members of the Board of            the Board of Commissioners
                      Commissioners to the Board of         according to the time table set
                      Commissioners to be submitted to
                      the GMS

                      Develop structure and policies        Conducted at least 1 (one) time      Implemented            1        10        10
                      on the Company’s Management           a year                               according to the
                      Remuneration (Board of                                                     set target
                      Commissioners and Directors)

                      Prepare the amount of                 Conducted at least 1 (one) time      Implemented            1        10        10
                      Remuneration for members              a year                               according to the
                      of the Board of Directors and/                                             set target
                      or members of the Board of
                      Commissioners

                                         Sub Total                                                                               60        60

 2     Active         Meeting of The Nomination and         Minimum 4 times in 1 (one) year      Implemented            1        20        20
       Surveillance   Remuneration Committee                                                     according to the
                                                                                                 set target

                      Coordination Meeting with related     As needed (at least 2 times a        Implemented            1        10        10
                      parties                               year)                                according to the
                                                                                                 set target

                      Preparation and timely submission     Submit reports on time in            Implemented            1        10        10
                      of Committee reports                  accordance with the provisions       according to the
                                                                                                 set target

                                                          Sub Total                                                              40        40

                                                            Total                                                               100      100




                           Total Rating                                                                 Description


Value 80 – 100                                                            Very good

Value 70 - < 80                                                           Good

Value 55 - < 70                                                           Pretty good

Value < 55                                                                Poor




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   Annual Report 2023   379
Page 382
Achievements of Key Performance Indicator Risk Monitoring Committee

The procedure for implementing the performance appraisal of the Risk Monitoring Committee was determined and agreed upon
with the Board of Commissioners in the Board of Commissioners’ Meeting with the Committee. The performance assessment of
the Risk Monitoring Committee was carried out by means of a determined self-assessment considering its duties and obligations in
accordance with the rules and work programs that had been determined.



                                                                                                                                 Value   Final
 No       Aspect                 Indicator                      Target                       Realization                 Score    (%)    score

  1    Passive         Monitoring and evaluation         Held every quarter      Monitoring and evaluation of             0,5      5      2,5
       Surveillance    of the Bank's Risk Profile        (4x a year )            the Bank's Risk Profile quarterly
                       quarterly position                                        position in accordance with the
                                                                                 provisions


                       Quarterly Monitoring and          Held every quarter      Quarterly Monitoring and                 0,5      5      2,5
                       Evaluation of Bank Soundness      (4x a year )            Evaluation of Bank Soundness
                       Level achievements, (Self                                 Level achievements, (Self
                       Assessment) Governance,                                   Assessment) Governance,
                       Monev, Risk Profile,                                      Monitoring and Evaluation of
                       Profitability in RBB Financial                            Risk Profile, Profitability in RBB
                       Reports & Capital Resilience                              Financial Reports & Capital
                                                                                 Resilience was only carried out
                                                                                 twice this year

                       Evaluation of conformity          Held every              Evaluation of the suitability of risk     1       5       5
                       between the Risk                  semester (2x a year)    management policies with the
                       Management Policy (KMR) and                               implementation of Bank policies
                       the implementation of Bank                                carried out in accordance with the
                       policies                                                  provisions

                       Monitoring and evaluating the     Held every              Monitoring and evaluating the            0,5      5      2,5
                       implementation of the duties      semester (2x a year)    implementation of the duties of
                       of the Risk Management                                    the Risk Management Work Unit
                       Work Unit (SKMR) and the                                  (SKMR) and the Risk Management
                       Risk Management Committee                                 Committee (Komenko) carried out
                       (Komenko)                                                 in accordance with the provisions

                       Monitor & evaluate the            Held every              Monitor & evaluate the adequacy           1       5       5
                       adequacy of the process of        semester (2x a year)    of the process of identification,
                       identification, measurement,                              measurement, monitoring and
                       monitoring and control of Risk                            control of Risk Management
                       Management                                                carried out in accordance with the
                                                                                 provisions

                       Monitoring and evaluating         Implemented             Monitoring and evaluating                 1       5       5
                       contingency plans in Business     according to the        contingency plans in Business
                       Continuity Management             provisions and on       Continuity Management System
                       System (BCMS)                     time according to       (BCMS) carried out in accordance
                                                         the target. (at least   with the provisions
                                                         once a year)

                       Monitoring and evaluating         Held every              Monitoring and evaluating the             1       5       5
                       the implementation of the         semester (2x a year)    implementation of the principles
                       principles of Good Corporate                              of Good Corporate Governance
                       Governance (GCG)                                          (GCG) carried out in accordance
                                                                                 with the provisions

                       Monitoring of large exposure      Held every              Monitoring of large exposure              1       5       1
                       debtors above IDR100 billion      semester (2x a year)    debtors above IDR100 billion was
                                                                                 only carried out once this year



                       Opinions on credit or             Held every              Opinions on credit or financing           1       5       5
                       financing applications for the    semester (2x a year)    applications for the large exposure
                       large exposure category, and                              category, and approval of credit or
                       approval of credit or financing                           financing applications from Related
                       applications from Related                                 Parties carried out in accordance
                       Parties                                                   with the provisions




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                                                                                                                                Value   Final
No      Aspect                 Indicator                       Target                       Realization                 Score    (%)    score

                    Supervise the compliance             Held every semester     Supervision of the compliance            1       5        5
                    function and review reports          (2x a year              function as well as reviewing
                    on the implementation of the                                 reports on the implementation
                    Compliance function and the                                  of the Compliance function and
                    implementation of the duties                                 the implementation of the duties
                    of the Compliance Director                                   of the Compliance Director are
                                                                                 carried out in accordance with
                                                                                 provisions

                    Evaluate, direct and monitor         Implemented             Evaluating,      directing     and       1      2,5       2,5
                    the Information Technology           according to            monitoring      the     Information
                    Strategic Plan and Bank              regulations and on      Technology Strategic Plan and
                    policies regarding the use of        time according to       Bank policies regarding the use of
                    Information Technology               targets. (at least      Information Technology are carried
                                                         once a year).           out in accordance with provisions

                    Review Corplan, RSTI and RBB         Implemented             Review Corplan, RSTI and RBB             1      2,5       2,5
                    before being approved by the         according to the        before being approved by the
                    Board of Commissioners               provisions and on       Board of Commissioners carried
                                                         time according to       out in accordance with the
                                                         the target. (at least   provisions
                                                         once a year)

                    Company Manual Review                Implemented             Company Manual Review includes:          1      2,5       2,5
                    includes:                            according to the        • KPA & SOP for Capital
                    • KPA & SOP for Capital              provisions and on         Participation are implemented in
                       Inclusion                         time according to         accordance with provisions
                                                         the target. (at least
                                                         once a year)

                    Review and Update of the             Implemented             Review and Update of the                 1      2,5       2,5
                    Company Handbook includes:           according to the        Company Handbook includes:
                    • Product and Activity Policy        provisions and on       • Product and Activity Policy (KPA)
                    Financing (KPA) Credit or            time according to       Credit or Financing (PAP) financing
                    Financing (PAP).                     the target. (at least   is carried out in accordance with
                                                         once a year)            the provisions

                             Sub Total                                                                                            60    52,50

2    Active         Risk Monitoring      Committee       Held every quarter      The implementation of the Risk           1       15       15
     Surveillance   Meeting                              (4x a year )            Monitoring Committee Meeting
                                                                                 during 2023 was held 8 times

                    Coordination meeting with            Held every              The implementation of the Risk           1       10       10
                    divisions related to the Bank's      semester (2x a year)    Monitoring Committee Meeting
                    strategic issues                                             during 2023 was held 7 times

                    Visits to work units and office      Held every              Execution of Visitsto branch             1       10       10
                    networks in the context of:          semester (2x a year)    offices in order to carry out the
                    • Monitoring                  the                            supervisory function in 2023
                       implementation      of     risk                           carried out 6 (six) times and
                       management in the Bank’s                                  make visits and communicate
                       activities and products;                                  with the Board of Directors and
                    • Monitoring                  the                            Divisions related to the duties
                       implementation               of                           and responsibilities of the Risk
                       Governance principles                                     Monitoring Committee

                                                         Sub Total                                                                35       35

3    Competency     Self competency                      Implemented             Self competency development by           1      2,5       2,5
     Development    development by updating the          according to the        updating the understanding of
                    understanding of external and        provisions and on       external and internal regulations of
                    internal regulations                 time according to       the Risk Monitoring Committee in
                                                         the target. (2x a       2023 implemented optimally
                                                         year)


                    Competency improvement               Implemented             The implementation of the W o            1      2,5       2,5
                    programs, attending                  according to the        rkshop/seminar/Risk
                    education, training and              provisions and on       Monitoring Committee in 2023
                    seminars and or certification        time according to       was held 3 times
                                                         the target. (2x a
                                                         year)

                                                         Sub Total                                                               5,00      5,00

                                                           Total                                                                 100    92,50




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                          Total Rating                                                     Description


 Value 80 – 100                                                   Very good

 Value 70 - < 80                                                  Good

 Value 55 - < 70                                                  Pretty good

 Value < 55                                                       Poor


Mechanism of Termination and Withdrawal of The Board of Commissioners

The mechanism for dismissal and resignation of the Board of Commissioners based on the Articles of Association are as follows:
1. Members of the Board of Commissioners are appointed and terminated by the GMS.
   a. Member of the Board of Commissioners may submit a request to resign from his/her position by notifying in writing of this
      purpose to the Controlling Shareholders of the Company.
   b. The company is obliged to hold a GMS to decide on the resignation application as referred to in letter a, no later than 90
      (ninety) days after the resignation letter is received.
   c. Before the resignation becomes effective, the relevant members of the Board of Commissioners are still obliged to complete
      their duties and responsibilities in accordance with the articles of association and laws and regulations.
2. The position of a member of the Board of Commissioners ends if:
   a. Lossing Indonesian Citizenship.
   b. Resignation with due observance of the provisions of paragraph (11) of Article 11 of the Articles of Association
   c. No longer meets statutory requirements.
   d. Passed away.
   e. The term of office has ended.
   f. Was dismissed based on the resolution of the GMS.
   g. Was declared bankrupt or placed under pardon based on a court decision.


Sharia Supervisory Board

The Sharia Supervisory Board (DPS) has the duty and authority      7. Submit the results of sharia supervision at least every 6 (six)
to provide advice and advice to the Board of Directors, oversee       months to the Board of Directors, Board of Commissioners,
the sharia aspects of the operational activities of the Sharia        National Sharia Board - Indonesian Ulama Council and the
Business Unit (UUS) at the National Sharia Council - Indonesian       Financial Services Authority Keuangan.
Ulema Council.
                                                                   Term of Office of The Sharia Supervisory Board
Duties and Responsibilities of The Sharia
Supervisory Board                                                  Members of the Sharia Supervisory Board were appointed for
                                                                   a period of 4 (four) years and can be reappointed for a second
The duties and responsibilities of the Sharia Supervisory Board    term, after paying attention to laws and regulations and the
as stipulated in the articles of association include, among        provisions of the National Sharia Council - Indonesian Ulama
others:                                                            Council.
1. Assess and ensure compliance with sharia principles in
    operational guidelines and products issued by UUS.             Requirements For Sharia Supervisory Board
2. Monitor the process of developing UUS new products from         Members
    the start until the product is released.
3. Provide sharia opinions on new products and/or                  Members of the Sharia Supervisory Board must have the
    restructured financing.                                        following requirements:
4. Request a fatwa from the National Sharia Council for UUS        1. Integrity, which at least includes:
    new products for which there is no fatwa.                           a. Have good character and morals.
5. Conduct periodic reviews on compliance with sharia                   b. Have a commitment to comply with sharia banking
    principles on the mechanism for raising funds and                      regulations and other laws and regulations.
    channeling funds as well as Bank services                           c. Have a commitment to the development of sound and
6. Request data and information related to sharia aspects                  sustainable Islamic banking.
    from UUS work units in the context of carrying out their
    duties.




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   d. Not included in the Fit and Proper List (Disqualified List) as stipulated in the provisions concerning the fit and proper test
       stipulated by Bank Indonesia or the Financial Services Authority.
2. Competence, who at least have knowledge and experience in the field of sharia mu’amalah and knowledge in banking and/ or
   finance in general.
3. Financial reputation, which at least includes:
   a. Not on the bad credit list.
   b. Have never been declared bankrupt or have been a shareholder, member of the Board of Commissioners, or member of the
       Board of Directors of a company and/ or member of the management of a business entity found guilty of causing a company
       and/or business entity to be declared bankrupt, within the last 5 (five) years prior to nominated.dicalonkan.


Guidelines and Working Procedures of the Sharia Supervisory Board

The Guidelines and Rules of the Sharia Supervisory Board are currently in the process of being ratified. However, in carrying out its
duties the Sharia Supervisory Board refers to the Company’s Articles of Association which regulates the requirements for the Sharia
Supervisory Board, duties and responsibilities, and term of office.


Composition and Basis of Appointment of The Sharia Supervisory Board

Members of the Sharia Supervisory Board consist of at least 2 (two) person and a maximum of 3 (three) person, one of whom is the
Chairman. Members of the Sharia Supervisory Board are appointed by the GMS or on the recommendation of the National Sharia
Council - Indonesian Ulema Council in accordance with applicable laws and regulations, without prejudice to the rights of the GMS
to dismiss members of the Sharia Supervisory Board at any time in accordance with laws and regulations.



              Name                      Position          Executor                  Basis of Appointment                           Effective Date


 Dr. KH. Afifuddin Muhajir, M.Ag      Chairman        OJK              GMS for Fiscal Year 2018 on April 26, 2019          February 28, 2020

 Dr. H. M. Saad Ibrahim, MA           Member          OJK              GMS for Fiscal Year 2018 on April 26, 2019          February 28, 2020

Composition and Basis of Appointment of the Sharia Supervisory Board After The Annual GMS for Financial
Year 2022



              Name                     Position           Executor                 Basis of Appointment                           Effective Date


 Dr. KH. Afifuddin Muhajir, M.Ag      Chairman        OJK             - Annual GMS for Fiscal Year 2018 on April 26,    February 28, 2020
                                                                        2019 (first)
                                                                      - Annual GMS for Fiscal Year 2022 on April 12,
                                                                        2023 (second)

 Dr. dr. Sukadiono, MM                Member          OJK             Annual GMS for Fiscal Year 2022 on April 12,      Waiting for the MUI DSN
                                                                      2023                                              Recommendation Letter and OJK
                                                                                                                        Fit and Proper Test Approval


Training and/or Enhancement of The Competency of The Board of Sharia Supervisory Board Members


                                                             Types of Training and Competency              Implementation Time and
               Name                     Position                                                                                           Organizer
                                                              Development/ Training Materials                      Place


 Dr. KH. Afifuddin Muhajir, M.Ag      Chairman        -                                                -                               -

 Dr. H. M. Saad Ibrahim, MA*          Member          -                                                -                               -

 Dr. dr. Sukadiono, MM**              Member          Basic Training of Muamalah Maliyah and           June 20, 2023 – July 10,        DSN MUI
                                                      Fatwa                                            2023, Zoom Meeting              Institute

                                                      Basic Training for Sharia Supervisors            September 21, 2023              DSN MUI
                                                                                                       – October 10, 2023, Zoom        Institute
                                                                                                       Meeting

 *Resigned from office since April 12, 2023
 ** Waiting for the MUI DSN Recommendation Letter and OJK Fit and Proper Test Approval




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Orientation Program for New Sharia Supervisory Board

The Orientation Program is very important to be implemented for DPS who are taking office for the first time. Provisions regarding
the mandatory Orientation program regarding the Company’s activities. The orientation program that is given can be in the form
of participantss, meetings or visits to the Company’s facilities, introductions to Division Leaders, Groups and employees of the
Company and other programs..


Concurrent Position of Sharia Supervisory Board

Table of Concurrent Positions of Sharia Supervisory Board

                                                                      Position at Other
                  Name                           Position               Companies/                 Name of Company/Other Institution
                                                                        Institutions

 Dr. KH. Afifuddin Muhajir, M.Ag             Chairman              Chairman                  The Salafiyah Syafi'iyah Islamic Boarding School
                                                                                             Foundation, Sukorejo

                                                                   Vice Chairman             Deputy Rais Aam PBNU 2022 - 2027

 Dr. H. M. Saad Ibrahim, MA*                 Member                Chairman                  Regional Leaders of Muhammadiyah East Java

 Dr. dr. Sukadiono, MM**                     Member                Chairman                  Regional Leaders of Muhammadiyah East Java 2022-2027

                                                                   Leader                    Rector of Muhammadiyah University Surabaya 2020-2024

 *Resigned from office since April 12, 2023
 ** Waiting for the MUI DSN Recommendation Letter and OJK Fit and Proper Test Approval



Ownership of Sharia Supervisory Board

Table of Sharia Supervisory Board’ Share Ownership

                                                                                          Share Ownership in Bank Jatim

                  Name                           Position                                                         Non-bank
                                                                                                                                           Other
                                                                         Bank Jatim          Other Banks           financial
                                                                                                                                         Companies
                                                                                                                 institutions

 Dr. KH. Afifuddin Muhajir, M.Ag             Chairman              Nil                     Nil                 Nil                 Nil

 Dr. H. M. Saad Ibrahim, MA*                 Member                Nil                     Nil                 Nil                 Nil

 Dr. dr. Sukadiono, MM**                     Member                Nil                     Nil                 Nil                 Nil

 *Resigned from office since April 12, 2023
 ** Waiting for the MUI DSN Recommendation Letter and OJK Fit and Proper Test Approval



Meeting of Sharia Supervisory Board

Internal Meeting of Sharia Supervisory Board

Throughout 2023, the agenda, dates and participants of the Sharia Supervisory Board Meeting were as follows.


 Table of Sharia Supervisory Board Meeting

 No.             Date                                                    Agenda                                                 Participant

 1.      January 14, 2023         JConnect Remittance Opinion Discussion                                              Dr. KH. Afifuddin Muhajir, M.Ag
                                                                                                                      Dr. H. M. Saad Ibrahim, MA

 2.      March 31, 2023           FGD Plans for Utilizing Head Office Funds to Deliver Financing in Sharia Business   Dr. KH. Afifuddin Muhajir, M.Ag
                                  Units through Mudharabah Muqayadah Agreements                                       Dr. H. M. Saad Ibrahim, MA


 3.      April 5, 2023            The Discussion of Opinions on the Mudharabah Muqayadah Agreement                    Dr. KH. Afifuddin Muhajir, M.Ag
                                                                                                                      Dr. H. M. Saad Ibrahim, MA


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 No.             Date                                                    Agenda                                                  Participant

 4..     May 16, 2023             The Discussion of Opinions on the Implementation of New JConnect Mobile              Dr. KH. Afifuddin Muhajir, M.Ag

 5.      July 21, 2023            The Discussion of Opinions on Cardless Transaction Services                          Dr. KH. Afifuddin Muhajir, M.Ag

 6.      July 31, 2023            The Discussion of Opinions on the Priority of East Java Sharia Services              Dr. KH. Afifuddin Muhajir, M.Ag

 7.      August 2, 2023           — The Discussion of JConnect Remittance Hong Kong Opinion                            Dr. KH. Afifuddin Muhajir, M.Ag
                                  — The Discussion of Customer Self Service (CSS) Opinions

 8.      October 4, 2023          The Discussion of Dual Banking Leveraging Model (DBLM) Opinions                      Dr. KH. Afifuddin Muhajir, M.Ag

 9.      October 13, 2023         The Discussion of Opinions on the Use of Conventional Insurance                      Dr. KH. Afifuddin Muhajir, M.Ag

 10.     November 7, 2023         The Discussion of Opinion on Sharia People's Business Loan (KUR)                     Dr. KH. Afifuddin Muhajir, M.Ag

 11.     November 20, 2023        The Discussion of Acquirer's Electronic Data Capture (EDC) Service Opinion           Dr. KH. Afifuddin Muhajir, M.Ag

 12.     November 24, 2023        The Minutes of Refreshing Mu'awadhah, Tabarru, Qardh & Dain Agreements with          Dr. KH. Afifuddin Muhajir, M.Ag
                                  All Sharia Branches

 13.     December 5, 2023         The Discussion of Opinions on Fund Management Certificates Based on Interbank        Dr. KH. Afifuddin Muhajir, M.Ag
                                  Sharia Principles (SiPA)

 14.     December 11, 2023        The Discussion of Opinions on Deposit Fund Fees                                      Dr. KH. Afifuddin Muhajir, M.Ag

 15.     December 18, 2023        The Discussion of Deposit On Call (DOC) Opinions                                     Dr. KH. Afifuddin Muhajir, M.Ag

 16.     December 20, 2023        The Discussion of Opinions on the Use of MMQ Contracts in Syndicated                 Dr. KH. Afifuddin Muhajir, M.Ag
                                  Investment Financing

 17.     December 22, 2023        Opinions on the East Java Gen.2 Agent Application Service                            Dr. KH. Afifuddin Muhajir, M.Ag

Meeting Frequency and Participants

During 2023, the Sharia Supervisory Board has held 17 (seventeen) internal meetings. The frequency and participants of each
member of the Sharia Supervisory Board can be seen in the table below.


 Table of Frequency and Participants of Sharia Supervisory Board Meetings

                                                                                          Sharia Supervisory Board meeting
                  Name                           Position
                                                                         Number of                  Total                                Other
                                                                                                                    Percentage
                                                                         Meetings                Attendance                            Companies

 Dr. KH. Afifuddin Muhajir, M.Ag             Chairman              17                        17                 100%                Nihil

 Dr. H. M. Saad Ibrahim, MA*                 Member                3                         3                  100%                Nihil

 Dr. dr. Sukadiono, MM**                     Member                -                         -                  -                   Nihil

 *Resigned from office since April 12, 2023
 ** Waiting for the MUI DSN Recommendation Letter and OJK Fit and Proper Test Approval



Frequency and Method of Providing Advice as well as Supervision of Compliance with Sharia
Principles in the Capital Market to Issuers or Public Companies

Advice and suggestions were given on several occasions.                              4. Sharia Supervisory Board Opinion Regarding Cardless
One of them was when the DPS meeting was also attended                                  Transaction Services
by management. Throughout 2023 DPS has issued 16 (sixteen)                           5. Sharia Supervisory Board Opinion Regarding Priority East
Sharia Supervisory Board Opinions. DPS has carried out its                              Java Syariah Services
duties by supervising the fulfillment of Sharia Principles of Bank                   6. Sharia Supervisory Board Opinion Regarding JConnect
Jatim and issuing opinions including:                                                   Remittance Hong Kong
1. Sharia Supervisory Board Opinion Regarding JConnect                               7. Sharia Supervisory Board Opinion Regarding Customer Self
    Remittance                                                                          Service (CSS)
2. Sharia Supervisory Board Opinion Regarding the                                    8. Sharia Supervisory Board Opinion Regarding the Dual
    Mudharabah Muqayadah Agreement                                                      Banking Leveraging Model (DBLM)
3. Sharia Supervisory Board Opinion Regarding the                                    9. Sharia Supervisory Board Opinion Regarding the Use of
    Implementation of New JConnect Mobile                                               Conventional Insurance




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                                                                                                                        Annual Report 2023        385
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10. Sharia Supervisory Board Opinion Regarding Sharia                 opinions or recommendations regarding the activities of the
    People’s Business Loan (KUR)                                      Sharia Business Unit Business.
11. Sharia Supervisory Board Opinion Regarding Acquirer
    Electronic Data Capture (EDC) Services                            Nomination and Remuneration of the
12. Sharia Supervisory Board Opinion Regarding Fund                   Board of Commissioners and Board of
    Management Certificates Based on Interbank Sharia                 Directors
    Principles (SiPA)
13. Sharia Supervisory Board Opinion Regarding Charging of            Board of Commissioners and Board of
    Deposit Fund Fees                                                 Directors Nomination Procedures
14. Sharia Supervisory Board Opinion Regarding Deposits On
    Call (DOC)                                                        In the nomination process for the Board of Commissioners
15. Sharia Supervisory Board Opinion Regarding the Use of             and the Board of Directors of Bank Jatim, policies related
    MMQ Agreements in Syndicated Investment Financing                 to the selection/ replacement of members of the Board of
                                                                      Commissioners and Directors had been formulated, namely
16. Sharia Supervisory Board Opinion Regarding the East Java
                                                                      the System and Procedure for the Selection and/or Substitution
    Gen.2 Agent Application Service
                                                                      of Members of the Board of Commissioners and Directors.
                                                                      This policy was prepared and adjusted based on regulations
Sharia Supervisory Board Performance                                  related to the Company including POJK No. 33/POJK.04/2014
Assessment                                                            concerning the Board of Directors and Board of Commissioners
                                                                      of Issuers or Public Companies and other related regulations
Procedure for Implementation of Performance                           regarding procedures for selecting/replacing members of the
Assessment of the Sharia Supervisory Board                            Board of Commissioners/Directors.


Performance appraisal is carried out by self assessment and           The purpose of formulating this policy on the selection and/or
submitted to the Board of Commissioners and the GMS.                  replacement of members of the Board of Commissioners and
                                                                      the Board of Directors was to serve as a guide in the process of
                                                                      selecting/ replacing members of the Board of Commissioners
Sharia Supervisory Board Performance Evaluation
                                                                      in accordance with applicable regulations, as well as to ensure
Criteria
                                                                      the implementation of good corporate governance in every
                                                                      process of nomination/ election of members of the Board of
The DPS performance assessment is based on the implementation         Directors Commissioner.
of the DPS duties in 2023. The implementation of the DPS duties
can be seen from the number of meetings held and the opinions         The nomination/election process for the Board of
and recommendations that have been issued.                            Commissioners and the Board of Directors was proposed
                                                                      to the GMS by considering the recommendations from the
The party conducting the assessment                                   Remuneration and Nomination Committee. The stages of the
                                                                      nominations included the following:
                                                                      1. Announcement of acceptance of vacancies for candidates for
DPS conducts an independent assessment of DPS performance
                                                                          members of the Board of Commissioners and/or Directors.
in 2023 (self-assessment).
                                                                      2. Administrative selection.
                                                                      3. Implementation of the assessment by the appointed
Results of the Performance Assessment of the                              Independent institution.
Sharia Supervisory Board                                              4. Evaluation of assessment results.
                                                                      5. Final interview.
During 2023, the Sharia Supervisory Board has carried out its         6. Implementation of the Fit and Proper Test by the Financial
role properly. By holding 17 (seventeen) meetings and issuing             Services Authority.
                                                                      7. Appointment of selected candidates at the GMS.


Remuneration Determination Procedure

-   The stages in determining the remuneration of the management can be described as follows:



                       1                                          2                                          3
    Remuneration and Nomination Commit-
    tee evaluates the remuneration policy in       Remuneration and Nomination               Board of Commissioners submits re-
    coordination with the Division in charge    Committee submits the results of the        muneration proposals and recommen-
             of Human Resources.                remuneration evaluation to the Board        dations for management to the Gener-
                                                        of Commissioners.                     al Meeting of Shareholders (GMS).




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Proposals and recommendations from the Board of                                     5. Leave Allowance.
Commissioners to the General Meeting of Shareholders (GMS)                          6. Health Facilities/Costs.
can be in the form of:                                                              7. Other facilities/allowances determined by the
1. Approval of the structure, scale, form and amount of                                 Bank as remuneration provided are not related to
    remuneration; or                                                                    performance.
2. Giving power to the Board of Commissioners to determine                   2. Variable remuneration consists of:
    the structure, scale, form and amount of remuneration.                      1. Tantiem.
                                                                                2. Other facilities/allowances determined by the Bank as
Indicators of Remuneration Determination for                                        remuneration based on performance.
the Board of Commissioners and the Board of
Directors                                                                    Remuneration Structure of the Board of
                                                                             Commissioners and Board of Directors
Indicators for determining remuneration for the Board of
Commissioners and Directors are based on, among other                        Remuneration Structure for Members of the Board of
things, performance achievements including sustainability                    Commissioners and the Board of Directors Remuneration for
performance, remuneration for similar industries, business                   the Board of Commissioners and Directors is provided with due
complexity and others.                                                       observance to the prevailing remuneration provisions, namely
                                                                             in the form of:
The Bank set the remuneration to be 2 (two), namely:                         1. Remuneration is permanent in nature, is remuneration that
1. Permanent Remuneration                                                         is not related to performance and risks, including salaries/
   Remuneration policies that are permanent in nature at least                    honoraria, housing allowances, communication allowances,
   pay attention to:                                                              holiday allowances, annual leave pay, health facilities, other
   - Business scale, business complexity, peer group, inflation,                  allowances that are comparable to this.
       company conditions and capabilities, applicable laws and              2. Variable remuneration is remuneration related to
       regulations; - Fixed remuneration consists of:                             performance and risks, including production services,
       1. Honorarium.                                                             performance bonuses, bonuses or other forms that can
       2. Housing Allowance.                                                      be equated with the above. Remuneration in the form of
       3. Communication Allowances.                                               bonuses is given in cash and shares or share instruments
       4. Holiday allowance.                                                      issued by Bank Jatim.



Table of Remuneration Structure for the Board of Commissioners and Directors

                                                                                    Description
 No       Types of Income
                                               Board of Commissioners                                           Board of Directors

  1.   Honorarium               - President Commissioner 55% of the honorarium of the            - President Director 100%
                                  President                                                      - Director 80% of the honorarium of the President
                                - Director Commissioner 90% of the honorarium of the               Director
                                  Presi-dent Commissioner

  2.   Allowance                - 1 (one) time holiday allowance, if it is decided differently   - 1 (one) time holiday allowance, if it is decided
                                   then it needs to be decided by the Nomination and                differently then it needs to be decided by the
                                   Remuneration Committee Meeting.                                  Nomination and Remuneration Committee
                                                                                                    Meeting.

                                - Housing Allowance is given on a monthly basis if you do        - Housing Allowance is given on a monthly basis if
                                  not occupy an official residence                                 you do not occupy an official residence

                                - Communication allowance is given in lump sum every             - Annual Leave Allowance 1 (one) time honorarium
                                  month Communication allowance is given in lump sum
                                  every month

                                - Retirement Award of 38 (thirty eight) times honorarum          - Communication allowance is given in lump sum
                                                                                                   every month Communication allow-ance is given
                                                                                                   in lump sum every month

                                                                                                 - Retirement Award of 48 (thir-ty eight) times
                                                                                                   honorarum

  3.   Facility                 - Official vehicle facilities through the Car Ownership          - Official vehicle facilities    through    the   Car
                                  Program (COP)                                                    Ownership Program (COP)

                                - Inpatient and outpatient health facilities according to        - Inpatient and outpatient health facilities according
                                  internal regulations Number: 059/003/DK/KEP on April             to internal regulations Number: 059/003/DK/KEP
                                  27, 2020                                                         on April 27, 2020

                                - Legal Aid Facility in accordance with company                  - Legal Aid Facility in accord-ance with company
                                  regulations                                                      regula-tions

  4.   Bonus & Tantiem          - Bonus is given in cash                                         - Bonus is given in cash

                                - Tantiem is given in cash and in the form of shares issued      - Tantiem diberikan tunai dan dalam bentuk saham
                                  by Bank Jatim.                                                   yang diterbitkan Bank Jatim.



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Nominal Remuneration Components Each of Board of Commissioners and Directors

Table of Nominal Amount of Remuneration for the Board of Commissioners and Directors

                                                                                    Amount Received

   Number of Remuneration and                        Board of Commissioners                               Board of Directors
        Other Facilities
                                                                       Total in (IDR)                                  Total in (IDR)
                                               Total Person                                    Total Person
                                                                          MIllion                                         MIllion

                                                              REMUNERATION

 Honorarium                                          5                    4.611                       7                   10.437

 Housing Allowance                                   5                    1.683                       7                    2.223


 Communication Allowance                             5                        560                     7                        740

 Tantiem                                             5                   17.194                       6                   30.808

                                                          OTHER FACILITIES IN KIND

 Housing (cannot be owned)                            -                         -                     -                          -

 COP Program Transport (can be owned)                4                    3.700                       7                    6.400

 Health (cannot be owned)                            2                        212                     7                        150

                                                     TOTAL REMUNERATION IN 1 YEAR

 Above IDR1 billion to 2 billion                     4                   23.203                       6                   42.963

 Above IDR500 million to 1 billion                   0                          0                     1                    1.244

 Above IDR500 million to 1 billion                   1                        846                     0                          0

 Rp500 million and below                             0                          0                     0                          0



Policies on Diversity of Board of Commissioners and Board of Directors

The diversity of the composition of the Board of Commissioners                b. 1 (one) member who has expertise/work experience in
and Directors as stipulated in the Appendix of the Circular                       the banking industry, and
Letter of Financial Services Authority No. 32/SEOJK.04/2015                   c. 1 (one) member who has expertise/work experience in
concerning Governance Guidelines for Public Company has                           the field of risk management.
been accommodated in the Bank’s Articles of Association. The             2.   Nationality
appointment of the Board of Commissioners and Board of                        Members of the Board of Commissioners and Board of
Directors is carried out by taking into account the experience                Directors are Indonesian citizens
and understanding of the banking industry, the integrity and             3.   Gender
dedication of each individual.                                                Currently all members of the Board of Commissioners of
                                                                              Bank Jatim are Male. Meanwhile, 4 (four) members of the
The composition of members of the Board of Commissioners                      Board of Directors are male and 1 (one) member of the
and Board of Directors of Bank Jatim that is appropriate and in               Board of Directors is female.
accordance with the needs of the Bank will support the effectiveness     4.   Age
of carrying out the duties and responsibilities of the Board of               Members of the Board of Commissioners and Board of
Commissioners and Directors and support the achievement of the                Directors have a variety of ages.
Bank’s vision and mission to continue to grow and develop.               5.   Independence
                                                                              Board of Commissioners
Diversity factors in the composition of the members of Board of               a. Minimum 50% (fifty percent) of the members of the Board
Commissioners and Board of Directors include:                                     of Commissioners are Independent Commissioners.
1. The expertise/experience of the Board of Commissioners,                    b. The term of office of an Independent Commissioner is
    has at least:                                                                 a maximum of 4 (four) years, and can be reappointed
    a. 1 (1 (one) member who has expertise/work experience                        with due regard to applicable regulations.
        in the field of economics/business /finance, and/or




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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   Board of Directors
   In accordance with POJK No. 46/POJK.03/2017 Concerning the Implementation of Compliance Functions of Commercial Banks,
   Bank Jatim has a Director who is in charge of the Compliance Function, namely the Compliance Director and Risk Management
   as a Director who meets the independence requirements


Diversity Composition of the Board of Directors

Table of Diversity in the Composition of the Board of Directors

                                                                                                                      Work
       Name                         Position                   Age          Gender            Education                               Expertise
                                                                                                                    Experience

Busrul Iman              President Director                 59 years old      Man      - Bachelor in Economics      Have work        Management,
                                                                                         Accounting ;               experience in    Accounting
                                                                                       - Master in Management;      the banking
                                                                                       - Accountant Profession.     sector.

Tonny Prasetyo           Director of Compliance             54 years old      Man      - Bachelor in Agriculture;   Have work        Management
                                                                                       - Master in Management.      experience in
                                                                                                                    the banking
                                                                                                                    sector.

Zulhelfi Abidin          Director of IT and Digital         61 years old      Man      - Bachelor of Informatics    Have work        Informatics
                                                                                         Engineering                experience in    Engineering
                                                                                       - Master in Computer         the banking
                                                                                         Science                    sector.


Edi Masrianto            Director of Finance, Treasury &    59 years old      Man      - Bachelor in Man-           Have work        Management
                         Global Services                                                 agement Economics          experience in
                                                                                       - Master in Agribusi-ness    the banking
                                                                                         Management                 sector.

R. Arief Wicaksono       Director of Micro, Retail and      53 years old      Man      - Bachelor in Industrial     Have work        Management
                         Medium                                                          Technology                 experience in
                                                                                       - Master in Management       the banking
                                                                                                                    sector.

Eko Susetyono            Director of Risk Management        58 years old      Man      - Bachelor in Food           Have work        Finance,
                                                                                         Technology and             experience in    Management
                                                                                         Nutrition                  the bank-ing
                                                                                       - Master in Corporate        sector.
                                                                                         Finance and Investment
                                                                                       - Doctor in Management
                                                                                         and Business

Arif Suhirman            Director of Operations             57 years old      Man      - Bachelor in Economics      Have work        Management,
                                                                                         Accounting                 experience in    Accounting
                                                                                       - Master in Management       the banking
                                                                                         and Business               sector.



Composition Diversity of the Board of Commissioners

Table of Diversity in the Composition of the Board of Commissioners


  Name                Position            Age         Gender               Education                Work experience                 Expertise


Suprajarto*       President            67 years       Man        - Bachelor in Economics      Have work experience in the       Management,
                  Commissioner         old                       - Master in Management       banking sector.
                                                                 - Doctor in Management
                                                                   Science




                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  Annual Report 2023        389
Page 392
   Name               Position             Age         Gender                 Education                       Work experience                  Expertise


Candra Fajri      Independent           59 years       Man           - Bachelor in Economics             Have work experience in the       Economics
Ananda            Commissioner          old                          - Master (MSc.)                     fields of government, education
                                                                     - Doctor (Ph.D)                     and banking.

Muhammad          Independent           59 years       Man           - Bachelor in State Admin-          Have work experience in the       Administration,
Mas’ud            Commissioner          old                            istration Science                 fields of government and          Management,
                                                                     - Master in Management              education.                        International
                                                                     - Doctor in the field of                                              Politics
                                                                       School of Political and
                                                                       International Studies

Sumaryono         Independent           63 years       Man           - Bachelor in State                 Have work experience in the       Banking
                  Commissioner          old                            Administration Science            banking sector.

Heru              Commissioner          62 years       Man           - Bachelor in Engineering           Have work experience in the       Management,
Tjahjono**                              old                          - Master in Management              government sector.                Environment and
                                                                     - Doctor in Environmental                                             Development
                                                                       and Development
                                                                       Studies

Adhy              Commissioner          52 years       Man           - Bachelor in Political             Have work experience in the       Administration,
Karyono***                              old                            Science                           government sector.                Politics
                                                                     - Master in Public
                                                                       Administration
                                                                       Polytechnic

* Stop serving as President Commissioner on December 19, 2023 (passed away).
**Stop serving as Commissioner on April 12, 2023 (dismissed at the 2022 Annual GMS).
***Appointed as Commissioner at the 2022 Annual GMS on April 12, 2023 and effective November 24, 2023.



Transparency of Share Ownership of Directors and Board of Commissioners

Share ownership of members of the Board of Directors is 5% or more.


                                                                                                    Share Ownership (shares)
       Name                                Position                                                                  Non-bank financial          Other
                                                                             Bank Jatim        Other Bank
                                                                                                                        institutions           Companies

Busrul Iman               President Director                             -                     -                 -                         -

Tonny Prasetyo            Director of Compliance                         -                     -                 -                         -



Zulhelfi Abidin           Director of IT and Digital                     -                     -                 -                         -



Edi Masrianto             Director of Finance, Treasury & Global         -                     -                 -                         -
                          Services

R. Arief Wicaksono        Director of Micro, Retail and Medium           -                     -                 -                         -


Eko Susetyono             Director of Risk Management                    -                     -                 -                         -



Arif Suhirman             Director of Operations                         -                     -                 -                         -




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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Share ownership of members of the Board of Commissioners is 5% or more.


                                                                                              Share Ownership (shares)
         Name                      Position                                                                    Non-bank financial         Other
                                                                 Bank Jatim             Other Bank
                                                                                                                  institutions          Companies

    Suprajarto*         President Commissioner               -                      -                      -                        -

    Candra Fajri        Independent Commissioner             -                      -                      -                        -
    Ananda

    Muhammad            Independent Commissioner             -                      -                      -                        -
    Mas’ud

    Sumaryono           Independent Commissioner             -                      -                      -                        -


    Heru                Commissioner                         -                      -                      -                        -
    Tjahjono**

    Adhy                Commissioner                         -                      -                      -                        -
    Karyono***

 * Stop serving as President Commissioner on December 19, 2023 (passed away).
 **Stop serving as Commissioner on April 12, 2023 (dismissed at the 2022 Annual GMS).
 ***Appointed as Commissioner at the 2022 Annual GMS on April 12, 2023 and effective November 24, 2023




Share Ownership Transactions of The Board of Directors and The Board of Commissioners

Information Disclosure Policy on Share Ownership of the                                  Meanwhile, the submission of information by the Board of
Board of Commissioners and Directors was regulated in the                                Directors/Board of Commissioners applied to each change
Implementation Guidelines for Relations Corporate Secretary                              of ownership. Reports to the Public Company shall be made
Investor Chapter IV in the following:                                                    no later than 3 (three) working days after the ownership or
                                                                                         change in ownership of shares occured. Reports carried
•       Ownership Report or Any Change in Public Company Share                           out independently had to be submitted no later than 10
        Ownership                                                                        (ten) days from the occurrence of ownership or change in
        Reporting of members of the Board of Directors or members                        ownership of the shares of the Public Company. Reporting
        of the Board of Commissioners on ownership and any                               obligations could also be carried out by other parties (in
        changes in ownership of the shares of the Public Company,                        this case the Corporate Secretary) through written power
        either directly or indirectly, and any Party that owned                          of attorney. Submission of a report through a proxy had
        shares, either directly or indirectly, should be at least 5%                     to be made no later than 5 (five) days after the change in
        (five percent) of the paidup capital in the Public Company.                      share ownership occured and had to be accompanied by
        Reporting obligations for parties who owned at least 5%                          a copy of the power of attorney based on the applicable
        (five percent) could be applied to changes in ownership of                       regulations.
        at least 0.5% (zero point five percent) in 1 (one) or several
        transactions. The report had to be submitted no later than                  In 2023, the disclosure of Share Ownership Information for the
        10 (ten) days from the occurrence of ownership or change                    Board of Commissioners and Directors was in accordance with
        in ownership of the shares of the Public Company.                           the applicable Implementation Guidelines. Purchase/sale of
                                                                                    shares of the Board of Commissioners and Board of Directors in
                                                                                    2023 were as follows.



                                                                         Number of
                                                                                                                     Transaction        Transaction
    No            Name              Before              After            Transaction               Price
                                                                                                                        date              Purpose
                                                                           Shares

    1      Busrul Iman              1,946,500          2,486,500               540,000                   650      May 17, 2023      Investment

    2      R. Arief                    126,300           443,300               317,000                   650      May 19, 2023      Investment
           Wicaksono

    3      Tonny Prasetyo              628,500           728,500               100,000                   650      May 26, 2023      Investment

    4      Suprajarto                         -          191,000               191,000                   650      May 26, 2023      Program LTI




                                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                         Annual Report 2023       391
Page 394
                                                                Number of
                                                                                                      Transaction          Transaction
 No         Name              Before             After          Transaction           Price
                                                                                                         date                Purpose
                                                                  Shares

 5     Busrul Iman            2,486,500        2,958,900              472,400             650      May 26, 2023         Program LTI

 6     Tonny Prasetyo           728,500        1,067,400              338,900             650      May 26, 2023         Program LTI

 7     R. Arief                 443,300          728,200              284,900             650      May 26, 2023         Program LTI
       Wicaksono

 8     Edi Masrianto                   -         227,600              227,600             650      May 26, 2023         Program LTI

 9     Eko Susetyono                   -          24,100               24,100             650      May 26, 2023         Program LTI

 10    Zulhelfi Abidin                 -          24,200               24,200             650      May 26, 2023         Program LTI

 11    Eko Susetyono             24,100          124,100              100,000             650      June 5, 2023         Investment

 12    Edi Masrianto            227,600          327,600              100,000             650      June 7, 2023         Investment



Organs and Committees Under The Board                                     4. Prepare materials/materials that are needed in relation
of Commissioners                                                              to matters that must obtain a decision from the Board of
                                                                              Commissioners regarding the Company’s management
In supervising the Company, the Board of Commissioners                        activities carried out by the Board of Directors and all staff.
is assisted by the Secretariat of the Board of Commissioners              5. Prepare considerations, opinions, suggestions and
and Committees under the Board of Commissioners.                              other decisions from the Board of Commissioners for
Committees under the Board of Commissioners consist of the                    shareholders, the Board of Directors and parties related to
Audit Committee, the Risk Monitoring Committee and the                        the management of the Company.
Remuneration and Nomination Committee. The organs and                     6. Follow up every decision of the Board of Commissioners
committees under the Board of Commissioners are described                     by:
as follows.                                                                   a. Record every decision made in decision-making forums
                                                                                  and the person in charge.
Secretariat of Board of Commissioners                                         b. Monitor and check the progress stages of the
                                                                                  implementation of the results of meeting decisions/
The Board of Commissioners of Bank Jatim in carrying out                          considerations, opinions, suggestions and other
their duties and responsibilities is assisted by a work unit called               decisions of the Board of Commissioners.
the Secretariat of the Board of Commissioners. The Group                      c. Make efforts to encourage the implementation of
Secretariat of the Board of Commissioners of Bank Jatim is                        followup decisions on meetings/considerations,
structurally under the Corporate Secretary. The Secretariat                       opinions, suggestions and other decisions of the Board
Group of the Board of Commissioners is responsible to the                         of Commissioners to the person in charge.
Board of Commissioners to assist the Board of Commissioners               7. Report to the Company regarding the share ownership
in secretarial activities and in carrying out their duties.                   of members of the Board of Commissioners and/or their
                                                                              families in the Company and other Companies.
Duties and Responsibilities of The Secretariat of The                     8. Prepare a report on the supervisory duties that have been
Board of Commissioners                                                        carried out by the Board of Commissioners during the
                                                                              previous financial year to the GMS.
1. Mengatur Manage the agenda for the Board of                            9. Coordinate with the Committees of the Board of
   Commissioners meeting activities and be responsible                        Commissioners in preparing reports on the results of
   for the implementation process, prepare meeting                            supervision of the implementation of the Company’s
   materials, compile meeting minutes, and administer the                     Business Plan every semester to OJK in accordance with
   Board of Commissioners Meetings in an orderly manner,                      the prevailing laws and regulations.
   Committees Meetings under the Board of Commissioners,                  10. Coordinate the drafting of the Board of Commissioners’
   and Meetings of the Board of Commissioners inviting the                    Annual Work Plan and Budget which is an integral part of
   Board of Directors.                                                        the Company’s Annual Work Plan and Budget prepared by
2. Coordinate with the Board of Directors and related work                    the Board of Directors.
   units with regard to the activities and duties of the Board of         11. Coordinate the preparation of suggestions and opinions
   Commissioners.                                                             regarding the agenda and materials of the GMS, including
3. Coordinate with related work units in preparing the                        but not limited to:
   necessary materials in relation to the preparation of reports
   involving the Board of Commissioners.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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    a. Coordinating the agenda and materials with related          Audit Committee
        parties.
    b. Prepare materials that are the responsibility of the        Basic Establishment of The Audit Committee
        Board of Commissioners, and provide opinions on the
        material as a whol.                                        The establishment of the Audit Committee is based on the
12. Coordinate the participation of the Board of Commissioners        following rules:
    and Committees under the Board of Commissioners                1. POJK      No.    55/POJK.03/2016     concerning     the
    in training/ seminars/other competency development                Implementation of Governance for Commercial Banks
    activities in accordance with the respective areas of             and has been updated to POJK 17 of 2023 concerning
    supervision of the Board of Commissioners/ Committees.            the Implementation of Governance for Commercial Banks,
13. Carry out other duties to support the smoothness of the           dated September 14, 2023.
    supervisory and advisory duties carried out by the Board of    2. POJK No. 55/POJK.04/2015 concerning the Establishment
    Commissioners.                                                    and Guidelines for Implementing the Work of the Audit
                                                                      Committee, dated December 23, 2015.
The Implementation of The Secretariat of The Board                 3. POJK No. 46 /POJK.03/2017 concerning Implementation
of Commissioners                                                      of Compliance Function for Commercial Banks, dated July
                                                                      12, 2017.
During 2023 the Secretariat of the Board of Commissioners has      4. POJK      No.    39/POJK.03/2019     concerning     the
carried out the following task:                                       Implementation of Anti-Fraud Strategy for Commercial
1. Prepare meeting materials, compile minutes of meetings,            Banks, December 19, 2019.
    and administer the Board of Commissioners Meetings in          5. Company Articles of Association.
    an orderly manner, Meetings of committees under the
    Board of Commissioners, and Meetings of the Board of           Duties and Responsibilities of The Audit Committee
    Commissioners inviting the Directors.
2. Provide input and information to the Board of                   In carrying out their functions, the Audit Committee has the
    Commissioners on matters of concern to the Board of                following duties and responsibilities:
    Commissioners, including, among others, the policies and       1. Review the financial information that will be issued by the
    strategies of the Board of Directors in achieving the Bank’s       Bank to the public and/or the authorities including financial
    Business Plan.                                                     statements, projections, and other reports related to the
3. Cooperate with the Committees under the Board of                    Bank’s financial Information.
    Commissioners in fulfilling the obligations of the Board       2. Review the Bank activities’ compliance with laws and
    of Commissioners, including reports from the Board of              regulations.
    Commissioners to the Regulator.                                3. Provide independent opinion in the event of disagreements
4. Coordinate the drafting of the Board of Commissioners’              between management and the Accountant for the services
    Annual Work Plan and Budget and monitor the progress of            they provide.
    implementing the work plan on time.                            4. Provide recommendations to the Board of Commissioners
5. Mengkoordinasikan Coordinate the implementation                     regarding the appointment and dismissal of Public
    of Work Visits for the Board of Commissioners and                  Accountants (AP) and KAP based on independence, scope
    Committees under the Board of Commissioners, including             of assignment, and compensation for services.
    administering the Visit Report.                                5. Review the implementation of inspections by the Internal
6. Administer the correspondence of the Board of                       Audit Work Unit (SKAI) and monitoring the follow-up
    Commissioners and committees under the Board of                    implementation
    Commissioners, including drafting the approval of the          6. Review complaints related to the accounting process and
    Board of Commissioners on matters proposed by the                  financial reports of the Bank.
    Board of Directors to seek approval from the Board of          7. Review and provide advice to the Board of Commissioners
    Commissioners.                                                     regarding the potential conflict of interests of the Bank.
7. Coordinate the participation of the Board of Commissioners      8. Maintain the confidentiality of Bank documents, data and
    and committees under the Board of Commissioners                    information.
    in training/seminars/other competency development              9. Monitor the adequacy of the financial reporting process such
    activities in accordance with the respective areas of              as quarterly financial reports, annual reports, publication
    supervision of each Commissioner/Committee.                        reports, projections and other financial information that
8. Facilitate the implementation of the duties of the Board of         will be submitted to the public, Bank Indonesia and other
    Commissioners and committees related to the nomination             regulatory agencies
    process for the nomination of Bank Supervisory Candidates.     10. Review the adequacy of the Internal Audit function,
9. Carry out other duties to support the smoothness of the             including the number of auditors, the annual work plan and
    supervisory and advisory duties carried out by the Board of        budget as well as the work that has been carried out
    Commissioners. Komisaris.


                                                                              PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                     Annual Report 2023       393
Page 396
11. Monitor the planning and implementation of audits as             Authority of Audit Committee
    well as following up on the results of audits conducted by
    Management and other related Operational Work Units              In carrying out their duties, the Audit Committee has the
12. Monitor and evaluate the performance or implementation           following authority:
    of the duties of the SKAI function                               1. Accessing the Bank’s documents, data, and information
13. Evaluation of audit implementation by KAP included the                regarding to the employees, fund, assets, and the required
    adequacy of work programs and review of KAP audit                     company resources.
    plans including those related to internal control structures,    2. Communicating directly to the employees, including the
    material items and risk management.                                   Board of Directors and parties performing the internal audit
                                                                          function, risk management, and accountant in regard to the
Audit Committee Charter                                                   Audit Committee duties.
                                                                     3. Involving independent parties outside the Audit Committee
In implementing the principles of good governance, the Audit              members necessary to help conduct their duties (if
Committee had work guidelines set out in the Decree of the                required).
Board of Commissioners Number 061/04/DKM/KEP dated                   4. Performing any other authority given by the Board of
June 28, 2022, which regulated:                                           Commissioners.
1. Legal Foundation
2. Membership Structure                                              Term of Office of the Audit Committee
3. Membership Requirements
4. Duties and responsibilities                                       The term of office of the Audit Committee may not be longer
5. Authority                                                         than the term of office of the Board of Commissioners as
6. Audit Committee meeting                                           stipulated in the articles of association and may be re-elected
7. Tenure of Audit Committee Members                                 only for the next 1 (one) period.
8. Reporting
9. Handling Complaints/Reporting Violations



Structure, Membership, and Expertise of The Audit Committee

The structure, membership and expertise of the Audit Committee can be seen in the table below.


Structure, Membership and Expertise of the Audit Committee Period January 1, 2023 – December 28, 2023

           Name                           Position       Determination Decree               Expertise             Information

 Sumaryono                      Chairman              Board of Directors Decree       State Administration   Independent
                                                      Number       061/200/DIR/HCP/                          Commissioner
                                                      KEP concerning Changes to the
 Muhammad Mas'ud                Member                                                State Administration   Independent
                                                      Composition of the Committee
                                                                                                             Commissioner
                                                      of PT Bank Pembangunan Daerah
 Candra Fajri Ananda*           Member                Jawa Timur Tbk                  Economy                Independent
                                                                                                             Commissioner

 Kusnadi                        Member                                                Economic, Accounting   Independent Party

 * The term of office ends on December 28, 2023


Structure, Membership and Expertise of the Audit Committee Period December 29, 2023 - December 31, 2023

           Name                           Position       Determination Decree               Expertise             Information

 Sumaryono                      Chairman              Board of Directors Decree       State Administration   Independent
                                                      Number       062/105/DIR/HCP/                          Commissioner
                                                      KEP concerning Composition
 Muhammad Mas'ud                Member                                                State Administration   Independent
                                                      of the Board of Commissioners
                                                                                                             Commissioner
                                                      Committee for the 2024 Period
 Kusnadi                        Member                of PT Bank Pembangunan Daerah   Economic, Accounting   Independent Party
                                                      Jawa Timur Tbk

 Moch. Arifin*                  Member                                                Law                    Independent Party




         PT Bank Pembangunan Daerah Jawa Timur Tbk
394      Annual Report 2023
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Profile of Audit Committee

The profile of the Audit Committee as of December 31st, 2023,
is as follows.


Sumaryono

Chairman of the Audit Committee


His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.




Muhammad Mas’ud

Member of Audit Commitee


His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.




                                             Kusnadi

                                             Member of Audit Commitee (Independent Party)



                                             Citizenship            :   Indonesian citizens

                                             Domicile               :   Malang

                                             Place and Date of      :   Cianjur, June 18, 1966/ 57 years old as of December 2023
                                             Birth/Age

                                             Educational            :   • Bachelor of Accounting from Brawijaya University Malang,
                                             background                   Graduated in 1990
                                                                        • Master of Agribusiness UGM Yogyakarta, Graduated in 2004

                                             Work experience        :   •   Job Trainer Muara Bungo Branch Office (1990-1992)
                                                                        •   Staff I Bitung Branch Office (1992-1994)
                                                                        •   Staff II Tegal Branch Office (1994-1997)
                                                                        •   MLO Branch of Cilegon (1997-1999)
                                                                        •   MLO Jakarta Branch Office Roxi (1999-2002)
                                                                        •   Head of Wiradesa Pekalongan Sub-Branch (2002-2004)
                                                                        •   Head of BRI Luwuk Branch (2004-2006)
                                                                        •   Head of BRI Parepare Branch (2007-2009)
                                                                        •   Head of BRI Lubuk Pakam Branch (2009-2011)
                                                                        •   BRI Nganjuk Branch Manager (2011-2012)
                                                                        •   Head of BRI Jakarta City Branch (2012-2012)
                                                                        •   Special Staff BRI (2012-2016)
                                                                        •   Head of Logistics BRI Pekanbaru (2016-2019)
                                                                        •   GH AIW BRI Bandung (Year 2019-June 2022)

                                             Certification              • Level 2 Risk Management Certification 2006.
                                                                        • Bank Internal Audit Competency Certificate with Special
                                                                          Occupational Qualifications for BRI Audit Supervisor Jobs (BRI
                                                                          Professional Certification Institute) in 2021

                                             Legal Basis of         :   Board of Directors Decree No. 061/200/DIR/HCP/KEP dated October
                                             Appointment                3, 2022

                                             Period of Service          Period I

                                             Length of service          Period 2022-2026

                                             Double function            None




                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                           Annual Report 2023      395
Page 398
                                          Moch. Arifin

                                          Member of Audit Commitee (Independent Party)



                                          Citizenship            :   Indonesian citizens

                                          Domicile               :   Surabaya

                                          Place and Date of      :   Surabaya, February 2, 1971/52 years old as of December 2022
                                          Birth/Age

                                          Educational            :   • Universitas Bhayangkara Surabaya
                                          background

                                          Work experience        :   •   Advocate (1996 – Present)
                                                                     •   Legal Consultant PT Berlian Mandiri Perkasa, Surabaya (2001 –
                                                                     •   Present)
                                                                     •   Legal Consultant PT Java Green Transport, Sidoarjo (2009 –
                                                                     •   Present)
                                                                     •   Legal Consultant PT Multi Color Indonesia, Sidoarjo (2009 –
                                                                     •   Present)
                                                                     •   Legal Consultant at PT Angkasa Raya, Surabaya (2009- Present)
                                                                     •   Bank Legal Consultant Yudha Bhakti (2005 – 2015)
                                                                     •   Chairman of the Supervisory Board of the People’s Credit Bank in
                                                                     •   Kediri City, (2012 – 2018)
                                                                     •   Legal Consultant at PT Perkebunan Nusantara IX, Surakarta (2014
                                                                     •   – 2020)
                                                                     •   Expert Staff for the Legal Secretariat Bureau of East Java Provincial
                                                                     •   Government (2013 – Present)

                                          Certification              • Minutes of the Oath Taking Ceremony (BAPS)
                                                                     • Advocate Identification Card (KTA) Indonesian               Advocates
                                                                       Association (PERADI)

                                          Legal Basis of         :   Board of Directors Decree No. 061/200/DIR/HCP/KEP dated 03
                                          Appointment                October 2022

                                          Period of Service          Period I

                                          Length of service          Period 2022-2026

                                          Double function            • Legal Consultant PT Berlian Mandiri Perkasa, Surabaya (2001 –
                                                                       Present)
                                                                     • Legal Consultant PT Java Green Transport, Sidoarjo (2009 – Present)
                                                                     • Legal Consultant PT Multi Color Indonesia, Sidoarjo (2009 –
                                                                       Present)
                                                                     • Legal Consultant PT Angkasa Raya, Surabaya (2009- Present)
                                                                     • Expert Staff at the Legal Bureau of the Regional Secretariat of the
                                                                       East Java Provincial Government (2013 – Present)




Qualification of Education and Experience of Audit Committee


Table of Audit Committee Education Qualification and Work Experience


         Name              Position                         Period                                       Work Experience


 Sumaryono               Chairman       Bachelor in Business Administration Science,       Having work experience in banking.
                                        Brawijaya University

 Candra Fajri Ananda*    Member         Bachelor in Economics and Development Studies      Having work experience, among others, in
                                        Master Degree (MSc.) in Rural Development          finance,  research,  international relations,
                                        Doctor Degree (DR) in Rural Development            economics and banking supervision




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            Name                    Position                                Period                                           Work Experience


 Muhammad Mas’ud                 Member              Bachelor in State Administration Science Master          Having work experience, among others in the
                                                     of Management Doctor (Ph.D) in the field of              fields of finance, political science and economics
                                                     School of Political and International Studies

 Kusnadi                         Member              Bachelor in Accounting                                   Memiliki pengalaman kerja antara lain di bidang
                                                                                                              keuangan, ilmu politik dan perekonomian

 Moch. Arifin**                  Member              Master in Agribusiness                                   Have work experience in banking

                                                     Bachelor in Law                                          Have work experience in the field of law and
                                                                                                              banking

The term of office ends on December 28, 2023
* The term of office as Member of the Audit Committee starts from December 29, 2023, previously as Member of the Risk Monitoring Committee



Audit Committee Independence


Table of Audit Committee Independence


                                                                            Muhammad               Candra Fajri
          Independence Aspect                        Sumaryono                                                               Kusnadi          Moch. Arifin**
                                                                             Mas’ud                  Ananda

 Has no financial relationship with the
 Board of Commissioners and the Board
 of Directors

 Does not have a management
 relationship in the company, subsidiary, or
 affiliated company

 Does not have a share ownership
 relationship in the company

 Does not have a family relationship with
 the Board of Commissioners, Board of
 Directors, and/or fellow members of the
 Audit Committee

 Do not serve as administrators of political
 parties, officials and government

*The term of office ends on December 28, 2023
* The term of office as Member of the Audit Committee starts from December 29, 2023, previously as Member of the Risk Monitoring Committee



Audit Committee meeting

AUDIT COMMITTEE MEETING POLICY


The implementation and procedures for the Audit Committee                                reasons for the meeting participants for these differences.
   meetings are as follows:                                                              The minutes of the meeting are signed by all members of
1. Meetings are held at least 1 (one) time in 3 (three) months                           the Audit Committee present and submitted to the Board
   according to the needs of the Bank.                                                   of Commissioners.
2. Meetings can be held if attended by at least 51% of the                            6. Meetings can be held offline or online through digital media
   total committee members, including 1 (one) Independent                                which allows the Audit Committee meeting participants to
   Commissioner and Independent Party.                                                   participate in the meeting.
3. The meeting is chaired by the Chairman of the Audit
   Committee or a Member of the Audit Committee from an
   Independent Commissioner if the Chairman of the Audit
   Committee is unable to attend.                                                     AGENDA OF COMMITTEE AUDIT MEETING
4. Decisions of the Committee meetings are based
   on consensus deliberation. If there is no consensus                                Throughout 2023, the implementation date, Meeting Agenda
   deliberation, then the decision is made based on the                               and Meeting Participants of the Audit Committee are as follows.
   majority vote.
5. Committee meetings are recorded in the minutes of the
   meeting, including if there are dissenting opinions and the

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Table of Meeting Agenda of the Audit Committee


 No        Meeting Date                                                   Meeting Agenda                                              Meeting Participants


 1.     February 7, 2023            The discussion includes:                                                                         Sumaryono
                                    1. Progress in the resolution of the Occupational Punishment Committee (KBHJ)                    Candra Fajri Ananda
                                       regarding unresolved fraud cases.                                                             Kusnadi
                                    2. The Improvement of Standard Operating Procedures (SOP) regarding Providing
                                       Quick and Accurate Responses to Fraud Case Resolution.

 2      February 22, 2023           Board of Commissioners Supervision Report on the Implementa-tion of the Bank’s                   Sumaryono
                                    Business Plan (RBB) Semester II 2022                                                             Kusnadi

 3.     March 29, 2023              Legal Risk Mitigation of PT. G.P                                                                 Sumaryono
                                                                                                                                     Candra Fajri Ananda
                                                                                                                                     Muhammad Mas’ud
                                                                                                                                     Kusnadi

 4.     May 2, 2023                 Coordination of the Procurement Process for a Public Accounting Firm (KAP) for                   Sumaryono
                                    Auditing Financial Reports as of April 30, 2023, as part of a Series of Due Diligence            Kusnadi
                                    Processes for Bank Business Groups (KUB) with Bank NTB Syariah

 5.     July 11, 2023               The Proposal of Replacement of Internal Audit Division Leader                                    Sumaryono
                                                                                                                                     Kusnadi

 6.     September 21, 2023          The discussion includes:                                                                         Sumaryono
                                    1. Internal Audit Division Performance Evaluation                                                Candra Fajri Ananda
                                    2. Follow-up on Fraud Cases for the Period from 2021                                             Muhammad Mas’ud
                                                                                                                                     Kusnadi

 7.     October 30, 2023            The Results of Evaluation of Presentation of Bid Documents for Procurement of Public             Sumaryono
                                    Accounting Services (AP)/Public Account-ing Firm (KAP) in the context of Auditing the            Candra Fajri Ananda
                                    Financial Reports of PT Bank Pembangunan Daerah Jawa Timur Tbk.                                  Muhammad Mas’ud
                                                                                                                                     Kusnadi

 8.     December 28, 2023           Annual Audit Plan for the Internal Audit Division for the 2024 Peri-od.                          Sumaryono
                                                                                                                                     Kusnadi




FREQUENCY AND ATTENDANCE OF AUDIT COMMITTEE MEETINGS


During 2023, the Audit Committee has held 8 (eight) meetings. The frequency and level of attendance of each member of the Audit
Committee are as follows.


Table of Attendance Level on Audit Committee Meeting


                                                                                          Audit Committee Meeting

           Name                     Position                                       Number and Attendance Percentage

                                                        Number of Meetings                  Number of Attandance                           Percentage

 Sumaryono                       Chairman                            8                                     8                                 100%

 Candra Fajri Ananda*            Member                              8                                     4                                  50%

 Muhammad Mas’ud                 Member                              8                                     3                                 37,5%

 Kusnadi                         Member                              8                                     8                                 100%

 Moch. Arifin**                  Member                               -                                    -                                   -

* The term of office ends on December 28, 2023
*The term of office as Member of the Audit Committee starts from December 29 2023, previously as Member of the Risk Monitoring Committee




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Audit Committee Remuneration



 No              Description                                                        Non-Commissioner Member


 1      Salary / Honorarium               Receive an honorarium of 15% of the President Director’s Salary

 2      Post-Position Compensation        Not Given

 3      Holiday allowance                 In accordance with the applicable provisions for the Board of Commissioners or Permanent Employees of the
                                          Bank

 4      Bonus / Tantiem                   In accordance with the provisions that apply to Permanent Employees of the Bank

 5      Facility:

        Transportation Allowance          Not Given

        Health                            In accordance with the applicable provisions for the Board of Commissioners or Permanent Employees of the
                                          Bank

        Official travel                   In accordance with the applicable provisions for the Board of Commissioners or Permanent Employees of the
                                          Bank



Training and/or Competency Improvement of The Audit Committee In 2023


                                                     Types of Training and
                                                                                                      Time and place
        Name                Position                Development Materials                                                                   Organizer
                                                                                                     Implementation
                                                     Competence/Training

 Sumaryono                  Chairman        Education and/or Competency Improvement can be seen in the Education and/or Competency
                                            Improvement section for the Board of Commissioners

 Candra Fajri                Member         Education and/or Competency Improvement can be seen in the Education and/or Competency
 Ananda*                                    Improvement section for the Board of Commissioners

 Muhammad Mas’ud             Member         Education and/or Competency Improvement can be seen in the Education and/or Competency
                                            Improvement section for the Board of Commissioners

 Kusnadi                     Member         National Economy Outlook 2024 Seminar            Surabaya, November 16, 2023            FKDK – BPDSI
                                            on the Development of the Digital
                                            Economy

                                            National Seminar on Beware of Cyber              Surabaya, November 16, 2023            FKDK – BPDSI
                                            Crime Threats in the Midst of Digital
                                            Banking Transformation Efforts.

                                            National Economy Outlook 2024 Seminar            Surabaya, November 16, 2023            FKDK – BPDSI
                                            on the Development of the Digital
                                            Economy

 Moch. Arifin**              Member         National Seminar on Beware of Cyber              Surabaya, November 16, 2023            FKDK – BPDSI
                                            Crime Threats in the Midst of Digital
                                            Banking Transformation Efforts.

*The term of office ends on December 28, 2023
*The term of office as Member of the Audit Committee starts from December 29, 2023, previously as Member of the Risk Monitoring Committee



Work Program and Implementation of Duties of The Audit Committee In 2023

AUDIT COMMITTEE WORK PROGRAM FOR 2023                                                      Internal Audit Division
The Audit Committee prepared a work program in 2023,                                  •    Reviewing projected financial information and other reports
including the following:                                                                   related to financial information.
                                                                                      •    Monitoring the implementation of the Anti-Fraud Strategy
Quarter I                                                                                  (SAF) and Gratification Control.
• Evaluation of Follow-Up of General Audit Findings from Internal                     •    Monitoring and evaluating the implementation of the
• Evaluation of Special Audit & Fraud Follow-up from the                                   duties of the Internal Audit Work Unit (SKAI).
                                                                                      •    Making an annual report on the implementation of the
                                                                                           activities of the Audit Committee in the Annual Report.




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Quarter II                                                           b. The appointment of a Public Accounting Firm (KAP)
• Evaluasi Evaluation of General Annual Historical Financial             was based on independence, scope of assignment,
   Audit Results from KAP (Public Accountant Office).                    and compensation for services.
• Evaluation of Follow-Up of General Audit Findings from             c. Report on the Results of the Evaluation of the
   Internal and External Parties.                                        Implementation of Audit Services on the annual
• Reviewing projected financial information and other reports            historical financial information of PT Bank Pembangunan
   related to financial information.                                     Daerah Jawa Timur Tbk. Fiscal Year 2022.
• Coordination with the Internal Audit Division after the            d. The Election of the Head of SKAI.
   progress reports are received by the Audit Committee.          3. Conduct coordination meetings with related divisions,
                                                                     including:
Quarter III                                                          a. VP of Internal Audit:
• Evaluation of Follow-Up of General Audit Findings from                 - Evaluasi Evaluation of the 2023 Period Audit Plan
   Internal and External Parties.                                        - Evaluation of the Implementation of Providing Audit
• Evaluation of Special Audit & Fraud Follow-up from the                     Services on Annual Historical Financial Information
   Internal Audit Division.                                                  by Nexia Kanaka Puradiredja Suhartono Public
• Reviewing projected financial information and other reports                Accountant (AP) and/or Public Accounting Firm
   related to financial information.                                         (KAP) for the Fiscal Year 2022.
• Provide recommendations to the Board of Commissioners                  - The Evaluation of the preparation of preliminary
   regarding the appointment of a Public Accountant (AP)                     audit planning.
   based on independence, scope of assignment, and                       - Updating SAF Standard Operating Procedures
   compensation for services.                                                (SOPs);
• Monitoring the implementation of the Anti-Fraud Strategy               - The Improvement of Standard Operating
   (SAF) and Gratification Control.                                          Procedures (SOP) regarding Providing Quick and
• Evaluation of the implementation of compliance with                        Accurate Responses to Fraud Case Resolution.
   internal and external regulations.                                    - Internal Fraud Prevention Strategy & Program
                                                                             (repeated findings);
Quarter IV                                                               - Performance Evaluation of the Internal Audit Division.
• Evaluation of Follow-Up of General Audit Findings from                 - Qualifications of officers in the branch office
   Internal and External Parties.                                            internal control unit.
• Evaluation of the Audit Plan from the Internal Audit Division      b. VP Financial Control
   for Approval of the Implementation of the Audit Plan.                 - Valuation of the Implementation of Providing Audit
• Reviewing projected financial information and other reports                Services on Annual Historical Financial Information
   related to financial information.                                         by Nexia Kanaka Puradiredja Suhartono Public
• Coordination with the Internal Audit Division after the                    Accountant (AP) and/or Public Accounting Firm
   progress reports are received by the Audit Committee.                     (KAP) for the Fiscal Year 2022; dan
                                                                         - The coordination regarding financial performance,
BRIEF REPORT ON THE 2022 AUDIT COMMITTEE                                     calculation of CKPN formation.
ACTIVITIES                                                           c. VP General
                                                                         - The coordination of the procurement process
The Audit Committee carried out its duties and responsibilities              for Audit Services for Annual Historical Financial
properly in accordance with the Audit Committee Charter                      Information by Public Accountants (AP) and/
and referred to POJK No. 55/POJK.04/2015, concerning the                     or Public Accounting Firms (KAP) for the 2023
Establishment and Guidelines for the Implementation of Work                  Financial Year period.
of Audit Committees, as well as BPP Committees of the Board of       d. VP Human Capital
Commissioners. The Audit Committee during the 2023 period                - Standard Level Agreement (SLA) Punishment
held 8 (eight) meetings and carried out its duties including:                Process
1. Implementation of follow-up reports on a number of                    - Matrix Punishment
    fraudulent acts during 2023, and several matters that need           - Determination of Punishment up to the Branch
    to obtain approval from the Board of Commissioners,                      Organizational level.
    including reports on Realization of Business Plans (RBB),            - Progress in the resolution of the Occupational
    reports on the implementation of the audit function, review              Punishment         Committee      (KBHJ)   regarding
    of the company’s financial statements, and reports on                    unresolved fraud cases.
    internal audit results.                                              - Transfer of employee composition to the positions
2. Memberikan rekomendasi dan laporan yang berkaitan                         of Account Officer (AO) and Funding Officer (FO) in
    dengan persetujuan:                                                      work units in the Branch Office.
    a. Audit inspection plan (Audit Plan) of the Internal Audit          - Job Requirements for Quality Assurance unit (QA
        Division                                                             and/or second line of defense at Branch Offices).


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   e. VP of Strategic Planning & Performance Management            6. Holding meetings
      - The Coordination of the evaluation of the Bank             7. Reporting
          Business Plan (RBB) report for the first semester of
          2023.                                                    Duties and Responsibilities of The Remuneration
   f. VP of Subsidiary Management                                  and Nomination Committee
      - The Coordination of the Procurement Process
          for a Public Accounting Firm (KAP) for Financial         1. Related to Nomination function
          Report Audit Purposes as of April 30, 2023, as part         a. Provide recommendations to the Board of Commissioners
          of a Series of Due Diligence Processes for Bank                 regarding the structure, policies and amount of
          Business Groups (KUB) with Bank NTB Syariah                     Remuneration for members of the Board of Directors and/
                                                                          or members of the Board of Commissioners.
4. Coordinating with the Risk Monitoring Committee in order to:
                                                                      b. Assist the Board of Commissioners in evaluating
   a. Monitoring and evaluating Bank Health Level (TKB).
                                                                          performance in accordance with the remuneration
   b. The discussion of the Standard Level Agreement (SLA)
                                                                          received by each member of the Board of Directors and/
      Process for Punishment of Fraud Perpetrators.                       or members of the Board of Commissioners.
   c. The evaluation of the function and implementation of            c. In carrying out the remuneration function as referred to
      tasks in the Branch Office internal control unit.                   in point “a” above, the Remuneration and Nomination
   d. Revitalizing the Anti-Fraud Strategy (SAF) function and             Committee must perform the procedure:
      updating SAF Standard Operational Procedures (SOP).                 - Develop a Remuneration structure for members of
   e. Evaluating the implementation of SAF on handling                        the Board of Directors and/or members of the Board
      conflicts of interest and controlling gratuities,                       of Commissioners in the form of salaries, honorarium,
      transparency of financial and non-financial information,                incentives, permanent and/or variable visits.
                                                                          - Formulate policies on Remuneration for members of
      as well as integration of the Bank’s strategic plans.
                                                                              the Board of Directors and/or members of the Board
                                                                              of Commissioners.
Statement of the Audit Committee on the
                                                                          - Arrange the amount of Remuneration for members of
Effectiveness of the Internal Control System and                              the Board of Directors and/or members of the Board
Risk Management                                                               of Commissioners.
                                                                      d. The preparation of the structure, policy and amount of
The internal control system implemented by Bank Jatim is                  Remuneration must pay attention to:
considered to have been running effectively and adequately as             - Remuneration applicable to the industry in accordance
reflected in the effectiveness of the implementation of internal              with business activities and similar business scales in
control functions, including internal audit, risk management,                 its industry (peer groups).
compliance, financial and operational control functions.                  - The duties, responsibilities and authority of members
                                                                              of the Board of Directors and/or members of the Board
                                                                              of Commissioners are related to the achievement of
Remuneration and Nomination Committee
                                                                              the objectives and performance of the bank.
                                                                          - Performance targets or the performance of each
Basic Formation of The Remunerationand                                        member of the Board of Directors and/or members
Nomination Committee                                                          of the Board of Commissioners.
                                                                          - A balance of benefits between those that are
Members of the Remuneration and Nomination Committee are                      permanent and variable.
based on the following regulations:                                   e. Assist the Board of Commissioners in providing
1. POJK No. 55/POJK.03/2016 concerning Implementation                     recommendations on payroll/wage systems, provision of
   of Governance for Commercial Banks.                                    benefits and facilities for senior executive and employees.
2. POJK No. 34/POJK.04/2014 concerning the Nomination &               f. Assist the Board of Commissioners in providing
                                                                          recommendations on compensation systems and other
   Remuneration Committee of Issuers or Public Companies.
                                                                          benefits for senior executive and employees.
3. Articles of Association regarding the duties and authorities
                                                                      g. Assist the Board of Commissioners in providing
   of the Board of Commissioners and their amendments.
                                                                          recommendations on payroll/wage systems, provision of
                                                                          benefits and facilities for employees.
Charter of Remuneration and Nomination Committee                      h. Assist the Board of Commissioners in providing
                                                                          recommendations on compensation systems and other
The Remuneration and Nomination Committee has a Work                      benefits for employees.
Guidelines set out in the Charter/ Implementation Guidelines       2. Related to Remuneration function
for the Board of Commissioners Committee Number 060/002/              a. Provide recommendations to the Board of Commissioners
DK/Kep Date January 15, 2021, which regulates about:                      regarding the composition of the positions of members of
1. Roles and Functions                                                    the Board of Directors and/or members of the Board of
                                                                          Commissioners.
2. Responsibilities
                                                                      b. Provide recommendations to the Board of Commissioners
3. Authority
                                                                          regarding the policies and criteria needed in the
4. Membership Structure, Position and Period of Position
                                                                          Nomination process.
5. Work procedures

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     c.   Provide recommendations to the Board of Commissioners                                Board of Directors and/or members of the Board of
          regarding performance evaluation policies for members                                Commissioners.
          of the Board of Directors and/ or members of the Board                           •   Assist in the evaluation of the performance of
          of Commissioners.                                                                    members of the Board of Directors and/or members
     d.   Assist the Board of Commissioners in evaluating the                                  of the Board of Commissioners.
          performance of members of the Board of Directors and/                            •   Formulate a capacity building program for members
          or members of the Board of Commissioners based on                                    of the Board of Directors and/or members of the
          benchmarks that have been prepared as evaluation                                     Board of Commissioners.
          material.                                                                        •   Review and propose candidates who qualify as
     e.   Provide recommendations to the Board of Commissioners                                members of the Board of Directors and/or members
          regarding the capacity building program for members of                               of the Board of Commissioners to the Board of
          the Board of Directors and/or members of the Board of                                Commissioners to be submitted to the GMS.
          Commissioners.
     f.   Provide proposals for candidates who qualify as members                 Authority of Remuneration and Nomination
          of the Board of Directors and/or members of the Board                   Committee
          of Commissioners to the Board of Commissioners to be
          submitted to the GMS.                                                   The Board of Commissioners authorizes the Remuneration and
     g.   Provide recommendations regarding Independent Parties                   Nomination Committee within the scope of responsibility for:
          who will become members of the Audit Committee and                      1. Obtaining various information needed for the implementation
          members of the Risk Monitoring Committee.                                  of the Nomination and Remuneration function from various
     h.   Assist the Board of Commissioners in compiling and                         parties, both internal and external to the bank.
          analyzing dismissal criteria for the Board of Commissioners             2. Obtaining the advice or input needed in the context of
          and Directors.                                                             the implementation of the Nomination and Remuneration
     i.   Assist the Board of Commissioners in monitoring the                        function from both internal and external parties of the bank.
          implementation and analysis of selection criteria and
          procedures for bank executive candidates.Bank.                          Term of Office of the Remuneration and Nomination
     j.   In carrying out the Nomination function, the Remuneration               Committee
          and Nomination Committee must carry out the following
          procedures:                                                             The term of service of the Remuneration and Nomination
          • Compile the composition and process of nomination                     Committee may not be longer than the term of office of the Board
               of members of the Board of Directors and/or                        of Commissioners as stipulated in the Articles of Association and
               members of the Board of Commissioners.                             may be re-elected only for the next 1 (one) period.
          • Formulate policies and criteria needed in the process
               of nominating candidates for members of the




Structure, Membership and Expertise of The Remuneration and Nomination Committee
Structure, Membership and Expertise of the Remuneration and Nomination Committee Period January 1, 2023 - April 2023


           Name                     Position                Determination Decree                          Information                Expertise

 Muhammad Mas’ud                    Chairman          Decree of the Board of Directors     Independent Commissioner                 Economic
                                                      Number            061/036/DIR/HCP/
 Suprajarto                          Member           KEP concerning Changes in the        Independent Commissioner                 Economic
                                                      Composition of the Committees of
 Candra Fajri Ananda                 Member           PT Bank Pembangunan Daerah Jawa      Commissioner                             Economic
                                                      Timur Tbk. 2022-2023 period
 Sumaryono                           Member                                                Independent Commissioner                 Economic
 Haru Tjahjono*                      Member                                                Commissioner                             Economic
 Revi Adiana S**                     Member                                                Ex-Officio Member (HC Division Leader)   Economic

* Term of office ends as of the 2022 Fiscal Year Annual GMS on April 12, 2023
** The term of office ends on December 28, 2023




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Structure, Membership and Expertise of the Remuneration and Nomination Committee for the Period April 2023 -
31 December 2023

           Name                    Position                Determination Decree                             Information                   Expertise

 Muhammad Mas’ud                Chairman            Decree of the Board of Directors         Independent Commissioner                   Economic
                                                    Number            061/036/DIR/HCP/
 Suprajarto                     Member              KEP concerning Changes in the            President Com-missioner                    Economic
                                                    Composition of the Committees of
 Candra Fajri Ananda            Member              PT Bank Pembangunan Daerah Jawa          Independent Commissioner                   Economic
                                                    Timur Tbk. 2022-2023 period
 Sumaryono                      Member                                                       Independent Commissioner                   Economic
 Adhy Karyono*                  Member              Board of Directors Decree Number         Commissioner                               Economic
                                                    062/105/DIR/HCP/KEP      concerning
 Slamet Purwanto**              Member              Changes to the Composition of the        Ex-Officio Member (HC Division Leader)     Computer
                                                    Committee of PT Bank Pembangunan
                                                    Daerah Jawa Timur Tbk for the Period
                                                    2022 - 2023

*The term of office is effective from the date of passing the OJK UKK on November 24, 2023
**The term of office starts from December 28, 2023




Profile of The Remuneration and Nomination Committee

The profile of the Remuneration and Nomination Committee as of December 31, 2023 is as follows.


Muhammad Mas’ud

Chairman concurrently Member of Remuneration and Nomination Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.


Suprajarto
Member of Remuneration and Nomination Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.


Candra Fajri Ananda

Member of Remuneration and Nomination Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.


Sumaryono

Member of Remuneration and Nomination Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.




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                                            Slamet Purwanto
                                            Member of the Remuneration and Nomination Committee (Ex-officio)


                                            Citizenship             :    Indonesian citizen

                                            Domicile                :    Surabaya

                                            Tempat dan              :    Born in Surabaya in 1979. Age 44 years as of 2023.
                                            Tanggal Lahir/Usia

                                            Educational             :    • Bachelor of Computer Science at the College of Information
                                            background                     Management and Com-puter Engineering (STIKOM) (2004)
                                                                         • Master of Management from the National Development University
                                                                           “Veteran” East Java (2016)
                                            Work experience         :    Joined Bank Jatim in 2007. Before occupying his current position, he
                                                                         served as Senior Analyst in the Human Capital Division (2015), Head of
                                                                         Investor Relations Corporate Secre-tary Sub. Division (2015), Head of
                                                                         Human Capital Development Sub. Division (2020), Head of Human Capital
                                                                         Policy & Development Sub. Division (2020), Head of Learning Center Sub.
                                                                         Division (2021), AVP Learning Center (2023).
                                            Certification                •   Level 1 Risk Management Certification
                                                                         •   Level 2 Risk Management Certification
                                                                         •   Level 3 Risk Management Certification
                                                                         •   Level 4 Risk Management Certification
                                                                         •   Refreshment of Risk Management Certification
                                            Legal Basis of          :    Since July 2023 he has served as Pjs. Vice President of the Human
                                            Appointment                  Capital Division based on Directors’ Decree No. 062/055/DIR/HCP/
                                                                         KEP dated July 5, 2023.
                                            Period of Service            Period I

                                            Length of service            July 5, 2023 – present

                                            Double function              None




Qualification of Educational and Work Experience of The Remuneration and Nomination Committee


Table of Qualification of Educational and Work Experience of The Remuneration and Nomination Committee


       Nama             Jabatan                             Pendidikan                                       Pengalaman Kerja

 Muhammad Mas’ud    Chairman            Bachelor in Public Administration Master in           Having work experience, among others in the
                                        Management Doctor (Ph.D) in School of Political       fields of finance, political science and economics
                                        and International Studies

 Suprajarto         Member              Bachelor in Economics Postgraduate in                 Having work experience, among others, in
                                        Marketing Management Doctor in the field of           finance, banking
                                        Business Management

 Candra Fajri       Member              Bachelor in Economics and Development Studies         Having work experience, among others, in the
 Ananda                                 Master Degree (MSc.) in Rural Development             fields of finance, research, international relations,
                                        Doctor Degree (DR) in the field of Rural              economics and banking supervision
                                        Development

 Sumaryono          Member              Bachelor in Business Administration Science           Having work experience, among others, in
                                                                                              finance, banking

 Adhy Karyono       Member              Bachelor in Social and Political Sci-ences            Having work experience in the government
                                        Master in Public Administration (Apparatus            sector
                                        Resource Management)

 Slamet Purwanto    Ex-officio member   Bachelor in Computer Science Master of                Having work experience, among others in
                                        Management                                            banking and Human Resources




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Independence of The Nomination and Remuneration Committee

The Remuneration and Nomination Committee carries out its duties, responsibilities and authority professionally and independently,
without interference from any party that is not in accordance with the laws and regulations. Members of the Remuneration and
Nomination Committee have fulfilled all the independence criteria and are able to carry out their duties independently, uphold the
interests of the Bank and cannot be influenced by any party. This can be seen from the majority of Commissioners who are members
of the Remuneration and Nomination Committee who are Independent Commissioners.


Table of Independence of the Remuneration and Nomination Committee


       Aspek                                                                              Heru       Adhy       Revi         Slamet         Moch.
                         M. Mas’ud       Candra Fajri    Suprajarto    Sumaryono
    Independensi                                                                        Tjahjono   Karyono*   AdianaS**    Purwanto***      Arifin**


 Has no financial
 relationship with
 the Board of
 Commissioners
 and the Board of
 Directors

 Does not have
 a management
 relationship in
 the company,
 subsidiary, or
 affiliated company

 Does not have a
 share ownership
 relationship in the
 company

 Does not have a
 family relationship
 with the Board of
 Commissioners,
 Board of Directors,
 and/or fellow
 members of the
 Nomination and
 Remuneration
 Committee

 Do not serve as
 administrators of
 political parties,
 officials and
 government


* The term of office is effective from the date of passing the OJK UKK on November 24, 2023
**The term of office ends on December 28, 2023
***The term of office starts from December 28, 2023



Meeting of The Nomination and Remuneration Committee

NOMINATION AND REMUNERATION COMMITTEE MEETING POLICY
Remuneration and Nomination Committee meetings are held periodically at least 1 (one) time in 4 (four) months. Remuneration
and Nomination Committee meetings can only be held if presented by a majority of the total members of the Remuneration and
Nomination Committee and one of the majority of the members of the Remuneration and Nomination Committee is the Chairman
of the Remuneration and Nomination Committee.


MEETING AGENDA OF THE NOMINATION AND REMUNERATION COMMITTEE


Table of Agenda for the Remuneration and Nomination Committee Meeting


  No.          Date of Meeting                                              Meeting Agenda                                  Meeting Participants

    1       April 5, 2023                 Providing holiday allowances for the management of PT Bank Pembangunan          Muhammad Mas’ud
                                          Daerah Jawa Timur Tbk. (Remuneration)                                           Suprajarto
                                                                                                                          Heru Tjahjono
                                                                                                                          Candra Fajri Ananda
                                                                                                                          Sumaryono




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  No.         Date of Meeting                                               Meeting Agenda                                    Meeting Participants

    2      April 10, 2023                 Recommendations for Candidates for Bank Jatim Management (Nomination)              Muhammad Mas’ud
                                                                                                                             Suprajarto
                                                                                                                             Candra Fajri Ananda
                                                                                                                             Sumaryono

    3      April 26, 2023                 1. Technical Instructions on Calculating Tantiem and other Benefits for Bank       Muhammad Mas’ud
                                             Jatim Management. (Remuneration)                                                Suprajarto
                                          2. The Discussion of Key Performance Indicator (KPI) Data for Bank Jatim           Candra Fajri Ananda
                                             Management in 2022.                                                             Sumaryono

    4      June 23, 2023                  1. Koreno’s Evaluation and Recommendations for Bank Jatim Management               Muhammad Mas’ud
                                             Candidates who will carry out the OJK Fit & Proper Test. (Nomination)           Suprajarto
                                          2. The Proposal of Remuneration for the Sharia Supervisory Board; (Remuneration)   Candra Fajri Ananda
                                          3. Directors’ proposal regarding the replace-ment of the Head of the Internal      Sumaryono
                                             Audit Divi-sion & Corporate Secretary. (Nomination)

    5      August 18, 2023                1. The Proposal of Temporary Replacement Director of Compliance. (Nomination)      Muhammad Mas’ud
                                          2. The Composition of the Remuneration and Nomination Committee                    Suprajarto
                                             membership.                                                                     Candra Fajri Ananda
                                          3. Review KPI of the Board of Commissioners.                                       Sumaryono

    6.     December 28, 2023              1. The Discussion on Providing Variable Compensation End of 2023 for               Muhammad Mas’ud
                                             Management, Supervisory Board and Committees (Remuneration)                     Candra Fajri Ananda
                                                                                                                             Sumaryono



FREQUENCY AND ATTENDANCE LEVEL OF MEETING OF NOMINATION AND REMUNERATION COMMITTEE


Table of Attendance Level of Remuneration and Nomination Committee Meetings


                                                                                    Remuneration and Nomination Committee Meeting

                                                                                              Attendance Number and Percentage
            Name                             Position
                                                                                                         Number of
                                                                        Number of Meetings                                           Percentage
                                                                                                         Attendance

 Muhammad Mas’ud                  Chairman                                            6                       6                          100%

 Suprajarto                       Member                                              6                       5                          83%

 Candra Fajri Ananda              Member                                              6                       5                          83%

 Sumaryono                        Member                                              6                       6                          100%

 Adhy Karyono*                    Member                                              -                       -                            -

 Revi Adiana S**                  Ex-officio member

 Slamet Purwanto***               Ex-officio member                                   -                       -                            -

* The term of office is effective from the date of passing the OJK UKK on November 24, 2023
**The term of office ends on December 28, 2023
***The term of office starts from December 28, 2023




Remuneration and Nomination Committee Competency Improvement Program


                                                           Types of Training and
                                                                                                   Time and place
         Name                    Position                 Development Materials                                                     Organizer
                                                                                                  Implementation
                                                           Competence/Training

 Muhammad               Chairman                         Education and/or Competency Improvement can be seen in the Education and/ or Competency
 Mas’ud                                                  Improvement section for the Board of Commissioners

 Suprajarto             Member                           Education and/or Competency Improvement can be seen in the Education and/ or Competency
                                                         Improvement section for the Board of Commissioners

 Candra Fajri           Member                           Education and/or Competency Improvement can be seen in the Education and/ or Competency
 Ananda                                                  Improvement section for the Board of Commissioners




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                                                Types of Training and
                                                                                      Time and place
      Name                  Position           Development Materials                                                     Organizer
                                                                                     Implementation
                                                Competence/Training

 Sumaryono           Member                   Education and/or Competency Improvement can be seen in the Education and/ or Competency
                                              Improvement section for the Board of Commissioners

 Adhy Karyono        Member                   Education and/or Competency Improvement can be seen in the Education and/ or Competency
                                              Improvement section for the Board of Commissioners

 Slamet Purwanto     Ex-officio member        Corporate Value Internalization   Surabaya, January 14, 2023      Kubik Leadership
                                              for culture Leaders

                                              Learning Management System        Bandung, March 15, 2023         PT Bangun Kapasitas
                                              & E-Learning Application
                                              training

                                              Risk Management Certification     Surabaya, May 12, 2023          TD Consulting
                                              Refreshment Program

                                              Greeting and Sharing “Culture     Surabaya, October 18, 2023      Internal Bank Jatim
                                              Transformation With Growth
                                              Mindset “ by Ignasius Jonan



Remuneration and Nomination Committee Income



 No                             Description                                               Non-Commissioner Member


 1    Salary / Honorarium                                              Receive an honorarium of 12,5% of the President Director’s Salary

 2    Post-Position Compensation                                       Not Given

 3    Holiday allowance                                                In accordance with the applicable provisions for the Board of
                                                                       Commissioners or Permanent Employees of the Bank

 4    Bonus / Tantiem                                                  In accordance with the provisions that apply to Permanent Employees
                                                                       of the Bank

 5    Fasilitas:

      a. Transportation Allowance                                      Not Given

      b. Health                                                        In accordance with the applicable provisions for the Board of
                                                                       Commissioners or Permanent Employees of the Bank

      c. Official travel                                               In accordance with the applicable provisions for the Board of
                                                                       Commissioners or Permanent Employees of the Bank


Work Program and Implementation of Duties of The Remuneration and Nomination Committee In 2023
REMUNERATION AND NOMINATION COMMITTEE WORK PROGRAM



1. Evaluate and provide recommendations regarding System                  4. Assist in the evaluation of the performance of the
   policies and Procedures for Selection and/or Replacement                  Company’s Management
   of Members of the Board of Commissioners and Members                   5. Develop the structure and policies for the Remuneration of
   of the Board of Directors to be submitted to the GMS.                     the Company’s Management (Board of Commissioners and
2. Evaluate and provide recommendations regarding the                        Directors).
   criteria and qualifications required in the nomination                 6. Arrange the amount of remuneration for members of the
   process for the Board of Commissioners and Directors in                   Board of Directors and/or the Board of Commissioners
   accordance with the Bank’s strategic plan.                             7. Carry out Remuneration and Nomination Committee Meetings
3. Evaluate and recommend candidates who meet the                            and Coordination Meetings with other related parties
   requirements as members of the Board of Directors and/
   or members of the Board of Commissioners to the Board of               DUTIES OF THE REMUNERATION AND NOMINATION
   Commissioners to be submitted to the GMS.




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                                                                                                             Annual Report 2023            407
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COMMITTEE                                                           3. Articles of Association regarding the duties and authorities
1. The Remuneration & Nomination Committee carried out                 of the Board of Commissioners and their amendments
   the process of nominating several vacant management
   positions, including those for prospective members of the        Charter of Risk Monitoring Committee
   Board of Directors.
2. The Remuneration and Nomination Committee carried                In carrying out its duties and responsibilities, the Risk Monitoring
   out the selection process for accepting candidates for           Committee had a Risk Monitoring Committee Charter as
   Commissioners and Directors of Bank Jatim together with          contained in the Decree of the Board of Commissioners Number
   the Selection Committee formed through administrative            061/05/DKM/KEP dated June 28, 2022, which regulated:
   selection to assessment with a third party (independent).        1. Legal Basis
3. The Remuneration and Nomination Committee also                   2. General Purpose
   provided recommendations/considerations to the Board             3. Membership Structure
   of Commissioners in determining the third party to be            4. Membership Requirements
   appointed as the agency implementing the assessment              5. Duties and Responsibilities
   in the process of selecting candidates for members of the        6. Authority
   Commissioners and Directors of Bank Jatim.                       7. Risk Monitoring Committee Meetings
4. The Remuneration and Nomination Committee provided               8. Term of Office of Risk Monitoring Committee Members
   an assessment/evaluation of each candidate for the Board         9. Reporting
   of Directors which was agreed upon to be recommended
   to the Board of Commissioners for the fit and proper test        Duties and Responsibilities of The Risk Monitoring
   by the Financial Services Authority.                             Committee
5. In addition, in terms of remuneration activities, the
   Remuneration and Nomination Committee also reviewed the          The Risk Monitoring Committee performed the task of
   Guidelines for Implementing Governance in Remuneration           monitoring and evaluating the conformity between risk
   for management and their facilities, which could then be         management policies and the implementation of Bank policies,
   stipulated in a Board of Commissioners decision letter.          as well as implementing the work plans and duties of the Risk
6. The Remuneration and Nomination Committee also                   Management Committee and the Risk Management Work
   held several coordination meetings regarding the                 Unit (SKMR), to provide recommendations to the Board of
   implementation of additional income during 2023.                 Commissioners to ensure that the Bank had managed risks in
                                                                    an effective adequate manner.
Board of Directors’ Success Policy
                                                                    In carrying out its functions, the Risk Monitoring Committee has
Remuneration and Nomination Committee has assisted the              duties and responsibilities including:
Board of Commissioners in the Directors Succession program in       1. Monitor and review the adequacy of the Bank’s internal
accordance with policy. The Board of Directors succession policy        control as a whole including compliance with good
had been presented in the Nomination and Remuneration Sub               corporate governance policies.
Title for the Board of Commissioners and Directors Chapter of       2. Monitor and prepare reports on the implementation of
Corporate Governance in this Annual Report.                             good corporate governance with the contents and scope
                                                                        of at least according to the applicable regulations.
Risk Monitoring Committee                                           3. Monitor and evaluate the Bank’s compliance with the
                                                                        Articles of Association and laws and regulations related to
The Risk Monitoring Committee is tasked with assisting the              risk management.
implementation of the supervisory and coaching functions by the     4. Monitor and evaluate reports on the implementation
Board of Commissioners for executives (Directors and their staff)       of good corporate governance that reflect the actual
in the area of risk management implementation so that it can be         condition of the Bank or according to the results of the
carried out effectively, both regarding issues of risk management       Bank’s self-assessment.
and the internal control system as well as anticipatory steps       5. Monitor and evaluate the composite value and predicate
taken by the Board of Directors. in risk management.                    of self-assessment results to the public through Published
                                                                        Financial Reports in the nearest period.
Basic for The Establishment of The Risk Monitoring                  6. Deliver a complete revision of the results of the Bank’s Good
Committee                                                               Corporate Governance self-assessment to the regulator.
                                                                    7. Review financial and non-financial information regarding
The establishment of the Risk Monitoring Committee is based             the Bank, business plans or work plans and bank budgets,
on the following regulations:                                           management reports and other information related to risk
1. POJK No. 55/POJK.03/2016 concerning Implementation                   management.
    of Tata Manage Commercial Banks and has been updated            8. Conduct regular meetings with related work units to discuss
    to POJK 17 2023 concerning the Implementation of                    matters within the scope of the Committee’s assignments,
    Governance for Banks General, September 14, 2023.                   and report and provide input on matters that need to be
2. OJK Regulation No. 17/POJK.03/2014 dated November                    brought to the attention of the Board of Commissioners.
    18, 2014 concerning the Implementation of Integrated Risk       9. Prepare guidelines and work procedures for the Committee
    Management for Financial Conglomerates.                             (charter) and conduct reviews as needed at least once every
                                                                        3 (three) years, and make a self-assessment regarding the
                                                                        effectiveness of the Risk Monitoring Committee’s activities.

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Authority of Risk Monitoring Committee                                          4. Collaborate with the Risk Management Committee, SKMR,
                                                                                   Compliance Work Unit (SKK), Legal Work Unit (SKL),
The Risk Monitoring Committee is authorized by the Board of                        Information Technology Work Unit (SKTI) and other work
Commissioners to:                                                                  units related to the Committee’s duties.
1. Conduct a full, free and unlimited access to Bank records
   related to the implementation of the duties of the Risk                      Term of Office of the Risk Monitoring Committee
   Monitoring Committee.
2. Communicating with the Head of Work Unit and other                           The term of office of the Risk Monitoring Committee may not be
   parties at the Bank to obtain information, clarification and                 longer than the term of office of the Board of Commissioners as
   request documents and reports needed.                                        stipulated in the articles of association and may be re-elected
3. Obtain input or suggestions from external banking                            only for the next 1 (one) period.
   professionals related to the duties of the Risk Monitoring
   Committee.


Structure, Membership, and Expertise of Risk Monitoring Committee


Table of Structure, Membership and Expertise of the Risk Monitoring Committee Period January 1, 2023 –
December 28, 2023

          Name                  Position                    Determination Decree                          Information              Expertise

 Candra Fajri Ananda*           Chairman        Decree of the Board of Directors Number              Independent             Economic
                                                061/200/DIR/HCP/KEP concerning Changes in            Commissioner
                                                the Composition of the Committees of PT Bank
 Muhammad Mas’ud                 Member         Pembangunan Daerah Jawa Timur Tbk                    Independent             State Administration
                                                                                                     Commissioner

 Sumaryono                       Member                                                              Independent             State Administration
                                                                                                     Commissioner

 Sulam Andjar Rochim             Member                                                              Independent Party       Economic


  Moch. Arifin*                  Member                                                              Independent Party       Law

Note:
*The term of office ends on December 28, 2023



 Table of Structure, Membership and Expertise of the Risk Monitoring Committee Period December 29, 2023 –
 December 31, 2023

           Name                   Position                Determination Decree                         Information                 Expertise

 Sumaryono                        Chairman       Board of Directors Decree Num-ber 062/105/      Independent Commissioner   State Administration
                                                 DIR/HCP/KEP con-cerning the Composition
 Muhammad Mas’ud                   Member        of the Committee of PT Bank Pem-bangunan        Independent Commissioner   State Administration
                                                 Daerah Jawa Timur Tbk

 Sulam Andjar Rochim               Member                                                        Independent Party          Economic


Profile of The Risk Monitoring Committee

The profile of the Risk Monitoring Committee as of December 31, 2023 is as follows.


Sumaryono

Chairman concurrently Member of Risk Monitoring Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.




Muhammad Mas’ud

Member of Risk Monitoring Committee

His profile can be seen in the Profile of the Board of Commissioners in this Annual Report.




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                                                                                                                     Annual Report 2023        409
Page 412
                                            Sulam Andjar Rochim

                                            Member of Risk Monitoring Committee


                                            Citizenship             :   Indonesian citizens

                                            Domicile                :   Malang

                                            Place and Date of       :   Pasuruan, October 3, 1962/ 61 years old as of December 31, 2023
                                            Birth/Age

                                            Educational             :   • Brawijaya University Malang, Diploma Program Corporate Expert
                                            background                    Education Program (currently Vocational Program, Faculty of
                                                                          Economics and Business) (1985)
                                                                        • Gajayana University Malang (1990)
                                                                        • Center for Management and Applied Technology Development
                                                                          (PPMTT) Malang – Master of Business in Administration Program
                                                                          (1992)
                                            Work experience         :   • Branch Manager in Bangkalan (2010 - 2011)
                                                                        • Branch Manager in Jakarta (2011 - 2012)
                                                                        • Head of Asset Liability Management and Financial Institution Sub
                                                                          Division in the Treasury Division (2012 - 2015)
                                                                        • Sub Division Leader in the Strategic Planning Division (2015 - 2016)
                                                                        • Temporary Head of Strategic Planning Division (2016 - 2017)
                                                                        • Head of Internal Communications Sub Division at Corporate Secretary
                                                                          (2017 - 2020)
                                                                        • Leader of the Anti-Money Laundering and Prevention of Terrorism
                                                                          Financing (AML-CFT) Sub-Division in the Compliance and Governance
                                                                          Division
                                                                        • Chair of the Team for Restructuring the Company Manual PT Bank
                                                                          Pembangunan Daerah Jawa Timur Tbk (2020 - 2021)
                                            Certification               • Basic Knowledge Certification in the Pension Fund Sector –
                                                                          Certification Institute Pension Fund Professional (LSPDP)
                                                                        • Level 3 Risk Management Certification - Risk Management
                                                                          Certification Body (BSMR)
                                                                        • Level 2 Risk Management Certification - Risk Management
                                                                          Certification Body (BSMR)
                                                                        • Level 1 Risk Management Certification - Risk Management
                                                                          Certification Body (BSMR)
                                            Legal Basis of          :   Directors’ Decree Number 060/270/DIR/HCP/KEP
                                            Appointment

                                            Period of Service           Period I

                                            Length of service           2021 – 2025

                                            Concurrent Position         Main Commissioner of BPRS Mojo Artho Mojokerto City (Perseroda)
                                                                        period (2021-present)




Education Qualification and Work Experience of The Risk Monitoring Committee


Table of Education Qualification and Work Experience of the Risk Monitoring Committee


          Name                   Position                                 Education                                Work experience

 Sumaryono                Chairman                     Bachelor in Business Administration, Brawijaya        Having work      experience   in
                                                       University                                            banking

 Muhammad Mas’ud          Member                       Bachelor in Public Administration                     Having work experience, among
                                                       Master in Management                                  others in the fields of finance,
                                                       Doctor (Ph.D) in the School of Political and          political science and economics
                                                       International Studies

 Sulam Andjar Rochim      Member                       Bachelor in Accounting Economics                      Having work      experience   in
                                                       Master of Business in Administration                  banking




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Independence of The Risk Monitoring Committee                                    criteria and is able to carry out its duties independently, uphold
                                                                                 the interests of the Bank and cannot be influenced by any party.
The Risk Monitoring Committee carries out its duties,                            This can be seen from the membership consisting of 1 (one)
responsibilities and authorities in a professional and                           Head of Committee who is an Independent Commissioner, 2
independent manner without interference from any party that                      (two) members who are Independent Commissioners and 2
is not in accordance with the laws and regulations. Member of                    (two) non-Commissioner member from an Independent Party.
the Risk Monitoring Committee has fulfilled all independence

Table of Independence of the Risk Monitoring Committee

                                                                                                                      Sulam
                                              Candra Fajri                        Muhammad                                             Moch.
        Aspek Independensi                                       Sumaryono**                        Syafruddin        Andjar
                                               Ananda*                             Mas’ud                                             Arifin***
                                                                                                                      Rochim

 Has no financial relationship with
 the Board of Commissioners and the
 Board of Directors

 Does not have a management
 relationship in the company,
 subsidiary, or affiliated company

 Does not have a share ownership
 relationship in the company

 Does not have a family relationship
 with the Board of Commissioners,
 Board of Directors, and/or fellow
 members of the Audit Committee

 Do not serve as administrators
 of political parties, officials and
 government

* Resigned from office on December 28, 2023
** Appointed as Chair of the Risk Monitoring Committee since December 28, 2023
*** Resigned from office on December 28, 2023


Risk Monitoring Committee Meeting

RISK MONITORING COMMITTEE MEETING POLICY
Implementation and procedures for the Risk Monitoring Committee meeting were as follows:


1. Committee meetings were held as follows:                                         b. in the event that a decision is made by voting with
   a. according to the needs of the Bank and or at least 1                              an equal number of votes, then the decision is made
      (one) time in 3 (three) months;                                                   based on the majority vote; And
   b. can only be carried out if attended by at least 51% (fifty                    c. dissenting opinion that occurs at the Committee
      one percent) of the total members of the Committee                                Meeting must be clearly stated in the minutes of the
      including 1 (one) Independent Commissioner and 1                                  meeting along with the reasons for the dissent.
      (one) Independent Party non-Commissioner;                                  3. Committee meetings were set forth in the Minutes of
   c. chaired by the Committee Chair or a Committee                                 Meeting, which are signed by all Committee members
      member from an Independent Commissioner if the                                present and submitted to the Board of Commissioners.
      Committee Chair is unable to attend; And                                   4. The attendance of Committee members at meetings was
   d. can invite SKMR, SKK, SKL, SKTI as well as other work                         reported in the Committee’s quarterly report and annual
      units and other parties needed as resource persons for                        report in the Annual Report on Corporate Governance.
      discussion.
2. Committee meeting decisions are made based on:
   a. consensus deliberation, and in the event that consensus
      deliberation does not occur, the decision is made
      based on the majority of votes;




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                                                                                                                   Annual Report 2023        411
Page 414
MEETING AGENDA OF RISK MONITORING COMMITTEE
Throughout 2023, the implementation date, agenda and Meeting Participants of the Risk Monitoring Committee are as follows.


Table of Meeting Agenda of the Risk Monitoring Committee

                                                                                                                                     Meeting
  No.        Meeting Date                                                Meeting agenda
                                                                                                                                    Participants

    1      February 7, 2023         The discussion includes:                                                                    Candra Fajri Ananda
                                    1. Profile of employees who committed fraud for the 2022 period                             Sumaryono
                                    2. Progress in the resolution of the Occupational Punish-ment Committee (KBHJ)              Sulam Andjar Rochim
                                       regarding unresolved fraud cases                                                         Moch. Arifin

    2      February 24, 2023        The discussion includes:                                                                    Candra Fajri Ananda
                                    1. Development of Bank Jatim’s NPL                                                          Muhammad Mas’ud
                                    2. Quarter I NPL Projection                                                                 Sumaryono
                                    3. Decrease in Credit Quality for the January 2023 Period                                   Sulam Andjar Rochim
                                    4. Extracomtable data for the period January 2023                                           Moch. Arifin
    3      February 24, 2023        Board of Commissioners Supervision Report to Controlling Shareholders for the 2022          Candra Fajri Ananda
                                    period                                                                                      Sulam Andjar Rochim
                                                                                                                                Moch. Arifin
    4      March 29, 2023           The discussion includes:                                                                    Candra Fajri Ananda
                                    1. Overview of Risk Profile for December 2022 Period                                        Muhammad Mas’ud
                                    2. Credit Risk Profile for the February 2023 Period                                         Sumaryono
                                    3. Expected Credit Loss Coverage (ECL) for Non-Performing Loans (NPL) for the period        Sulam Andjar Rochim
                                       February 2023                                                                            Moch. Arifin
    5      August 7, 2023           Performance Evaluation Meeting with the Risk Management Directorate                         Candra Fajri Ananda
                                                                                                                                Muhammad Mas’ud
                                                                                                                                Sumaryono
                                                                                                                                Sulam Andjar Rochim
                                                                                                                                Moch. Arifin
    6      August 7, 2023           Progress Meeting on Resolving Several Legal Issues with the Compliance Directorate          Candra Fajri Ananda
                                                                                                                                Muhammad Mas’ud
                                                                                                                                Sumaryono
                                                                                                                                Sulam Andjar Rochim
                                                                                                                                Moch. Arifin
    7      November 7, 2023         The Discussion of Risk Profile and Legal Risk Mitigation for Fraud Cases with Significant   Candra Fajri Ananda
                                    Values that have not been or have been handled by Law Enforcement Officials (APH)           Sumaryono
                                                                                                                                Sulam Andjar Rochim
                                                                                                                                Moch. Arifin
    8      December 28, 2023        The Discussion of the latest Risk Profile and Credit Risk miti-gation for Large Exposure    Candra Fajri Ananda
                                    Debtors                                                                                     Muhammad Mas’ud
                                                                                                                                Sumaryono
                                                                                                                                Sulam Andjar Rochim
                                                                                                                                Moch. Arifin


FREQUENCY AND ATTENDANCE 0F RISK MONITORING COMMITTEE MEETINGS
During 2023, the Risk Monitoring Committee has held 8 (eight) meetings. The attendance rate of each member of the Risk Monitoring
Committee is as follows.


Table of Attendance at Risk Monitoring Committee Meetings

                                                                                             Risk Monitoring Committee Meeting

                                                                                             Attendance Number and Percentage
              Name                                  Position
                                                                                  Number of                 Number of
                                                                                                                                     Percentage
                                                                                  Meetings                  Attendance

 Candra Fajri Ananda*                 Chairman                                          8                          8                     100%

 Sumaryono**                          Chairman                                          8                          7                     87,5%

 Muhammad Mas’ud                      Member                                            8                          5                    62,5%

 Sulam Andjar Rochim                  Member                                            8                          8                     100%

 Moch. Arifin***                      Member                                            8                          8                     100%

*Resigned from office on December 28, 2023
**Appointed as Chair of the Risk Monitoring Committee since December 28 ,2023
***Resigned from office on December 28, 2023


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Risk Monitoring Committee Competence Improvement Program


                                               Types of Training and Competency                Implementation Time
        Name                    Position                                                                                           Organizer
                                                Development/ Training Materials                     and Place

 Candra Fajri                                Education and/or Competency Improvement can be seen in the Education and/ or Competency
                          Chairman
 Ananda*                                     Improvement section for the Board of Commissioners

 Sumaryono**                                 Education and/or Competency Improvement can be seen in the Education and/ or Competency
                          Chairman           Improvement section for the Board of Commissioners

 Muhammad Mas’ud                             Education and/or Competency Improvement can be seen in the Education and/ or Competency
                          Member             Improvement section for the Board of Commissioners

 Sulam Andjar                                The Special Batch of Corporate Governance-       Yogyakarta, July 26 – 28,     Indonesian Institude
 Rochim                                      Leadership Program Sustainability for Long-      2023                          Corporate Directorship
                                             Term Value Creation and ASEAN CG Scorcard                                      (IICD)

                                             National Economy Outlook 2024 Seminar on         Surabaya, November 16,        FKDK – BPDSI
                          Member             the Development of the Digital Economy           2023

                                             National Seminar on Beware of Cyber Crime        Surabaya, November 16,        FKDK – BPDSI
                                             Threats in the Midst of Digital Banking          2023
                                             Transformation Efforts.

 Moch. Arifin***                             Pendidikan dan/atau Peningkatan Kompetensi dapat dilihat pada bagian Program Peningkatan Kompetensi
                          Member             Komite Audit

* Resigned from office on December 28, 2023
** Appointed as Chair of the Risk Monitoring Committee since December 28, 2023
*** Resigned from office on December 28, 2023

Risk Monitoring Committee Income


  No                       Description                                                   Non-Commissioner Member

    1      Salary / Honorarium                              Receive an honorarium of 12,5% of the President Director’s Salary

    2      Post-Position Compensation                       Not Given

    3                                                       In accordance with the applicable provisions for the Board of Commissioners or Permanent
           Holiday allowance                                Employees of the Bank

    4      Bonus / Tantiem                                  In accordance with the provisions that apply to Permanent Employees of the Bank

    5      Facility:

           a. Transportation Allowance                      Not Given

                                                            In accordance with the provisions that apply to the Board of Commissioners or Permanent
           b. Health                                        Employees of the Bank


                                                            In accordance with the provisions that apply to the Board of Commissioners or Permanent
           c. Official travel                               Employees of the Bank



Work Program and Implementation of Duties of The Risk Monitoring Committee In 2023

RISK MONITORING COMMITTEE WORK PROGRAM FOR 2023
The Risk Monitoring Committee developed a work program in 2023, including the following:


Quarter I                                                                         Quarter II
• Monitoring and Evaluation of the Bank’s Risk Profile (PRB)                      • Monitoring and Evaluation of the Bank’s Risk Profile (PRB)
   Quarterly.                                                                        Quarterly.
• Monitoring and Evaluation of Quarterly Bank Soundness                           • Monitoring and Evaluation of Quarterly Bank Soundness
   Level (TKB) achievemen.                                                           Level (TKB) achievements.
• Monitoring and Evaluation of the implementation of the                          • Monitoring and Evaluation of the adequacy of risk
   duties of the Risk Management Work Unit (SKMR) and the                            management identification, measurement, monitoring and
   Risk Management Committee (Komenko).                                              control processes.
• Evaluation of conformity between the Risk Management                            • Monitoring of large exposure debtors above IDR100 billion.
   Policy (KMR) and the implementation of Bank policies.                          • Monitoring the compliance function and the implementation
• Monitoring and evaluating the implementation of Good                               of the compliance system, as well as reviewing reports on
   Corporate Governance (GCG) principles.


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                                                                                                                     Annual Report 2023          413
Page 416
    the implementation of the compliance function and the               c.   Evaluation of Monitoring Constraints and Achievement
    implementation of the duties of the Compliance Director.                 of Bank Soundness Level (TKB).
                                                                   2.   The working relationship of the Risk Monitoring Committee
Quarter III                                                             with the Directorate and Work Unit at the Head Office
• Monitoring and Evaluation of the Bank’s Risk Profile (PRB)            includes:
   Quarterly.                                                           a. Interactive discussion with 3(three) Directorates
• Monitoring and Evaluation of Quarterly Bank Soundness                      related to Legal risk mitigation, Compliance with the
   Level (TKB) achievements.                                                 procurement process and finalization of the draft of
• Monitoring and Evaluation of the implementation of the                     Activity and Produc Policy Credit or Financing (KPA
   duties of the Risk Management Work Unit (SKMR) and the                    PAP).
   Risk Management Committee (Komenko).                                 b. Working Visit in 7 (seven) division-level work units at
• Monitoring and Evaluation of the implementation of the                     the Head Office in order to strengthen the second
   principles of Good Corporate Governance (GCG).                            line at the Head Office and determine alternative risk
• Monitoring of large exposure debtors above IDR100 billion                  mitigation, especially credit risks, operational risks,
• Monitoring and Evaluation of contingency plans in the                      legal risk and strategic risks.
   Business Continuity Management System (BCMS).                        c. Sharing moment with related Work Units at the Head
• Review and Update of the Company’s Handbook (BPP)                          Office to discuss and provide views and find alternative
   including Anti-Money Laundering and Prevention of                         solutions related to mitigating legal risks, reputation
   Terrorism Financing Product Policy (KPA AML-CFT).                         risks and strategic risks.
                                                                   3.   Assisting the Board of Commissioners in carrying out Active
Quarter IV                                                              Supervision by making visits to Branch Offices identified as
• Monitoring and Evaluation of the Bank’s Risk Profile (PRB)            having a moderate or lower risk profile:
   Quarterly.                                                           a. Working Visit at 6 (six) Branch Offices that have a
• Monitoring and Evaluation of Quarterly Bank Soundness                      moderate to lower Risk Profile including Credit,
   Level (TKB) achievements.                                                 Operational and Legal Risks;
• Review Corplan, Information Technology Strategic Plan                 b. Socializing Security Awareness Improvement and
   (ITSP) and Bank’s Business Plan (BBP) before being                        Internal Control Strengthening to strengthen the
   approved by the Board of Commissioners.                                   second line in the apllication of the three line of
• Review and Update of the Company’s Manual (BPP) covering                   defense concept, as well as building a risk culture in
   Activity and Product Policy (KPA) Credit or Financing (PAP),              the Branch Office Network; and
   KPA dan Standart Operating Procedure (SOP) for Capital               c. Interactive discussions with fraudsters and branch
   Participation.                                                            officials regarding alternative risk mitigation options.
                                                                   4.   Conducting review and providing opinions and
RISK MONITORING COMMITTEE WORK PROGRAM BRIEF                            recommendations to the Board of Commissioners
REPORT IN 2023                                                          regarding issues of risk management implementation in
The Risk Monitoring Committee carried out its duties and                all activities and products that have the potential to cause
responsibilities properly, referring to POJK No. 17 Year 2023,          losses to the Bank.
concerning Implementation of Governance for Commercial             5.   Coordinating with the Audit Committee in order to:
Banks and referring to the BPP Committee of the Board of                a. Monitoring and evaluation of the Bank’s Soundness
Commissioners and the Risk Monitoring Committee Charter                      Level (TKB).
of Bank Jatim. The implememtation of the Risk Monitoring                b. Discussing Standart Level Agreement (SLA) Punishment
Committee work program during the 2023 period can be                         Process for Fraud Perpetrators
breifly reported as follows:                                            c. Evaluating functions and implementation of tasks in the
1. Conducting discussions in meetings with the Risk                          internal control unit of the Branch Office.
    Management Work Unit (SKMR), Compliance Work Unit                   d. Revitalizing the function of the Anti-Fraud Strategy
    (SKK), Legal Work Unit (SKL), and work units that carry out              (SAF) and updating the SAF Operational Standards and
    the function of providing large exposure loan covering:                  Procedures SOP).
    a. Monitoring and Evaluation of the Bank’s Risk Profile,            e. Evaluating the implementation of SAF on conflict of
         especially against the moderate to below risk profile               interest handling and gratification control, tranparency
         to identify, measure the potetioal losses and determine             of financial and non-financial information, and
         the risk mitigation.                                                integration of the Bank’s strategic plan.
    b. Follow-up Evaluation of Risk Management Committee
         decisions, as well as implementation of risk
         management policies on all activities and products of
         the Bank.




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                                                                                                                      CORPORATE
                                                                                                                     GOVERNANCE




Organ and Committee Under The Board of Directors

Corporate Secretary

Structure of The Corporate Secretary



                                                                             VP
                                                                     Corporate Secretary




                           AVP                                                   AVP Corporate                          AVP Investor
                       Secretariat                                              Communications                          Management




      Group                                                    Supervisor          Supervisor       Supervisor           Supervisor
 Secretariat of the    Supervisor          Supervisor
                                                               External            Internal       Corporate Social    Analyst & Investor
     Board of          Secretariat          Protocol
                                                            Communications      Communications     Responsibility         Relations
  Commissioners


                                                               External            Internal            Staff
                       Secretarial          Protocol
                                                            Communications      Communications    Corporate Social
                          Staff               Staff             Staff                Staff         Responsibility




                                                                                                    Marketing
                                                                                                                      Investor Analysis
                                                                                                   and Investor
                                                                                                                       and Intelligence
                                                                                                  Communications
                                                                                                                             Staff
                                                                                                      Staff



Functions, Duties and Responsibilities of The Corporate Secretary

The Corporate Secretary has duties and responsibilities, among         3. Assist the Board of Directors and Board of Commissioners
others:                                                                   in implementing corporate governance which includes:
1. Developing the Bank’s mission                                          - Disclosure of information to the public, including the
2. Mediators with Stakeholders such as regulators, investors                   availability of information on the company’s website
    and the public                                                        - Submission of reports to the Financial Services
3. Maintaining the Bank’s image as well                                        Authority on time
4. Provide information disclosure.                                        - Implementation and documentation of the General
                                                                               Meeting of Shareholders
The Corporate Secretary of Bank Jatim has access to material              - Organization and documentation of the Directors and/
and relevant information relating to the Company relating to                   or Board of Commissioners meetings; and
information disclosure issues. Bank Jatim’s Corporate Secretary           - Implementation of orientation programs for Directors
is in charge of 3 (three) Subdivisons, namely Secretarial                      and/or Board of Commissioners.
Subdivision, Corporate Communication Subdivision and                   4. Serve as a liaison between the Issuer or Public Company
Investor Management Subdivision.                                          and the shareholders of the Issuer or Public Company, the
                                                                          Financial Services Authority, and other stakeholders.
In carrying out its duties, the Corporate Secretary has the duties     5. Evaluate every information to be submitted externally and
and responsibilities to:                                                  ensure the image and reputation of the Bank is maintained.
1. Follow the development of regulations and legislation in            6. Build and maintain a good image for the Bank to support
    force in the Capital Market field.                                    and maintain the value of the company so that it always
2. Provide input to the Directors and Board of Commissioners              increases.
    to comply with the provisions of the regulations and
    legislation in the Capital Market.




                                                                                   PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                          Annual Report 2023      415
Page 418
Profile of Corporate Secretary



                                                 Wioga Adhiarma Aji

                                                 Head of Corporate Secretary



                                                 Citizenship                :   Indonesian citizens

                                                 Domicile                   :   Surabaya

                                                 Place and Date of          :   Born in Surabaya in 1978, 45 years as of December 2023
                                                 Birth/Age

                                                 Educational                :   - Bachelor of Legal Studies from Panca Marga University, Probolinggo
                                                 Background                       (2002)
                                                                                - Master of Law from University of 17 August 1945 Surabaya (2020)

                                                 Certification                  Badan Sertifikasi Manajemen Risiko (BSMR) Level 4

                                                 Legal Basis of             :   Since 2023 he has served as Vice President Corporate Secretary based
                                                 Appointment                    on Directors’ Decree No. 062/057/DIR/HCP/KEP dated 20 July 2023.


                                                 Job History                :   Joined Bank Jatim in 1997. Prior to his current position, he served as
                                                                                Head of Operations Bojonegoro Branch (2012), Head of Bojonegoro
                                                                                Branch (2013), Head of Operations Main Branch (2018), Head of Kediri
                                                                                branch (2020), Head of General Division (2022).




Corporate Secretary Competency Improvement Program

Throughout 2023, Bank Jatim’s Corporate Secretary has participated in various competency improvement programs in the form of
training, workshops, conferences and seminars, as shown in the following table:


                                                                                      Time and Place of
 Type of Training         Competency Development Material                                                                      Organizer
                                                                                       Implementation

 In House             Corporate Value Internalization For Culture Leaders       Surabaya, January 14, 2023          Kubik Leadership

 In House             Greeting And Sharing “Culture Transformation              Surabaya, October 18, 2023          Ignasius Jonan
                      With Growth Mindset” by Ignasius Jonan

 Public               Training of Corporate Secretary                           Yogyakarta, July 21, 2023           Patrari Jaya Consultant

 In House             Refreshment Program /Risk management                      May 12, 2023 (Online By Zoom        Risk Management Certification
                      Certification Refreshment                                 Meeting)                            Body (BSMR)



Implementation of Corporate Secretary Assignments in 2023

In 2023, the Corporate Secretary has carried out his duties                     2. Held Analyst Meetings 4 times to present quarterly
and responsibilities in accordance with the functions carried as                   performance. The Analyst Meeting is organized by
follows:                                                                           inviting Securities Company analysts, Asset Management
1. Holding the 2022 Annual General Meeting of Shareholders                         investment managers, Pension Fund investment managers,
     on April 12, 2023. Since the IPO, vote counting at the GMS                    Insurance Company investment managers, and other Fund
     has been carried out by scanning the barcode of stickers                      Managers.
     given to shareholders present at the GMS. Thebarcode                       3. Participated in the Public Expose Live which was held by
     sticker contains the identity of the shareholders and the                     the Indonesia Stock Exchange on November 2, 2023.
     number of votes, so that the voting process can run quickly
     and wel




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4. Submitted periodic reports and incidental reports to               Internal Audit Division
    regulators in accordance with applicable regulations.
5. Submitted information disclosure in accordance with                Organizational Structure of The Internal Audit
    applicable regulations.                                           Division
6. Developed company website related to company
    information to stakeholders. The development carried out          The organizational structure of the Internal Audit Divivsion
    such as the addition of financial ratios that are commonly        based on the Decree of the Board of Directors No.061/218/
    used by investors, macro and micro conditions, the                DIR/PRS/KEP December 7, 2022 is as follows:
    development of regulators, and comparison with industry.
    Stakeholders, especially local investors, can easily access
    company information for decision making in owning                       President Director
    company shares.
7. Organized media gatherings 3 (three) times by inviting
    leading media with offices in East Java.
                                                                             Internal Audit VIP
8. Coordinating the preparation of the Bank’s Annual Report
    Book.
9. Held Board of Commissioners meetings, Board of
    Directors meetings, and Board of Directors and Board of                                                AVP Audit Development
    Commissioners meetings, making minutes of meetings and
    administering them.
10. Accommodating student and student requests in submitting                                                AVP Head Office Audit
    Field Work Practices and research at Bank Jatim.
11. Administered, distributed and followed up on incoming
    and outgoing mail.
                                                                                                             AVP Regional Audit
12. Coordinating the procedures and concepts for Board of
    Directors meetings, ceremonies, Bank events and other
    meetings.
                                                                                                               AVP Information
                                                                                                              Technology Audit




The Position of The Internal Audit Division in Organizational Structure

The structure and position of the Internal Audit Division is regulated and determined according to:
1. POJK No.1/POJK.03/2019 concerning the Implementation of the Internal Audit Function in Commercial Banks.
2. Decree of the Board of Directors of Bank Jatim No. 061/218/DIR/PRS/KEP December 7, 2022 concerning the Organizational
   Structure and Work Procedures of PT Bank Pembangunan Daerah Jawa Timur Tbk.
3. Decree of the Board of Directors of Bank Jatim No. 061/162/DIR/AUI/KEP July 15, 2022 concerning the Audit Charter of the
   Internal Audit Division of PT Bank Pembangunan Daerah Jawa Timur Tbk.


The Head of the Internal Audit Division reports directly to the President Director. To support independence and ensure the smooth
operation of the audit and the authority to monitor follow-up, the Internal Audit Division can communicate directly with the Board
of Commissioners to inform various matters relating to the audit. The position, mechanism, duties and authority of the Internal
Audit Division including transparency and clarity are significant matters in the management of Bank Jatim, so that the internal audit
policy relating to responsibilities, authorities and levels of independence has been stated in the Internal Audit Charter signed by the
President Director and approved by the Board of Commissioners on July 15, 2022 which was compiled based on POJK Number 01/
POJK.03/2019 dated January 28, 2019 concerning the Obligation of Commercial Banks to Implement Standards for Implementing
Bank Internal Audit Functions (SPFAIB) and Regulation of the Financial Services Authority No.56/ POJK .04/2015 concerning the
Formation and Guidelines for the Preparation of Internal Audit Charter.




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023       417
Page 420
Profile of Head Internal Audit Division


                                              Wardhana Suryaatmaja

                                              Vice President of Internal Audit Division



                                              Citizenship                :   Indonesian Citizens

                                              Domicile                   :   Jl. Sekawan Nyaman IV Blok C No.34A, Sidoarjo

                                              Place and Date of          :   Surabaya, 09-12-1967
                                              Birth

                                              Age                        :   56 Years old

                                              Educational                :   • Bachelor of Development Studies from University of Wijaya Putra
                                              Background                       (1995).
                                                                             • Master in Management from Artha Bodhi Iswara College of
                                                                               Economics (1998).

                                              Legal Basis of             :   Legal Basis of Appointment: Since July 18, 2023, he has served as
                                              Appointment                    Corporate Leader Secretary based on Directors’ Decree No. 062/055/
                                                                             DIR/HCP/KEP dated July 5 2023.

                                              Position History           :   •   Vice President Internal Audit Division: 2023 - present
                                                                             •   Vice President Risk Management Division : 2020 – 2023
                                                                             •   Head of General Division: 2019 - 2020
                                                                             •   Head of Product & Policy Development Division: 2018
                                                                             •   Head of Information Technology Division: 2016 - 2017
                                                                             •   Head of Accounting Subdivision: 2015
                                                                             •   Acting Head of Sharia madium Branch : 2015
                                                                             •   Head of Sharia Sidoarjo Sub-Branch : 2014 - 2015
                                                                             •   Head of Sharia Gresik Sub-Branch : 2011 – 2013
                                                                             •   Accounting Supervisor of Sharia Surabaya Branch : 2009 – 2011
                                                                             •   Information Technology Manager of Operational Subdivision of
                                                                                 Sharia Business Support Division: 2007 – 2009
                                                                             •   PN Supervisor & Teller : 2004 – 2007
                                                                             •   Junior Programmer of Information technology Division: 1998 – 2004
                                                                             •   Staff of PDE Operatinal Bureau Adm.Finance : 1995 – 1998
                                                                             •   Staff of Accounting in Kediri Branch: 1993 - 1995

                                              Training /                     1. Education of Head of Internal Supervision System of Accounting
                                              Certification                     and Finance Development Center (PPA&K) : 2023
                                                                             2. BSMR Level 5 Risk Management Training and Certification: 2022
                                                                             3. Sosialization of AML, CFT and Gratification of the Directorate of
                                                                                Criminal Investigation of the Banking Crime Unit of the National
                                                                                Police: 2019
                                                                             4. Bankruptcy Law Training University Airlangga : 2016

                                              Basis of                       Vice President of Internal Audit Division (Based on Decree. No.
                                              Appointment                    062/061/DIR/HCP/KEP August 8, 2023)



The Party That Appoints and Removes The Head of
Internal Audit Division                                                      The Audit Charter of the Internal Audit Division of PT Bank
                                                                             Pembangunan Daerah Jawa Timur, Tbk was prepared based on:
The Head of the Internal Audit Division is appointed and removal             1. Financial Services Authority Regulation No. 56/POJK.04/2015
by the President Director with the approval of the Board of                     concerning the Establishment and Guidelines for the
Commissioners based on the recommendation of the Audit                          Preparation of the Internal Audit Charter.
Committee and reported to the Capital Market Supervisory                     2. Financial Services Authority Regulation Number 1/
Agency (Bapepam) and the Financial Services Authority (OJK).                    POJK.03/2019 concerning the Implementation of Internal
                                                                                Audit Function at Commercial Banks.
Internal Audit Charter                                                       3. Financial Services Authority Regulation No. 39/POJK.03/2019
                                                                                concerning the implementation of the Anti-Fraud strategy for
The Internal Audit Division has an Internal Audit Charter                       Commercial Banks.
stipulated by the Decree of the Board of Directors of Bank Jatim             4. Financial Services Authority Regulation Number 13 /
No. 061/162/DIR/AUI/KEP dated July 15, 2022 concerning                          POJK.03/2020 concerning Amendments to Financial Services
the Audit Charter of the Internal Audit Division of PT Bank                     Authority Regulation Number 38/POJK.03/2016 concerning
Pembangunan Daerah Jawa Timur, Tbk.

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   the Application of risk Management in the Use of Information      Authority of The Internal Audit Division
   Technology by Commercial Banks.
5. Bank Indonesia Regulation No. 22/23/PBI/2020 concering the        The Internal Audit Division has the authority to:
   payment system.                                                   1. Conducting Internal Audit activities and have full, free
6. Bank Indonesia Regulation No. 23/06/PBI/2021 concering               and unlimited access to records, information, employees,
   payment service providers.                                           funds, assets, locations/ areas, and other resources related
                                                                        to the implementation of audits and consultations.
Internal Audit Charter was created to provide an overview/           2. Communicating directly with the Directors, Board of
guidelines related to Vision, Mission, and Functions, Position          Commissioners, Audit Committee, and Sharia Supervisory
in the Organization, Duties and Responsibilities, Authorities,          Board.
Code of Ethics, Internal Auditor Requirrements, Responsibilities     3. Holding regular and incidental meetings with the Board of
of Heads of Internal Audit Division, Internal Audit and                 Directors, Board of Commissioners, Audit Committee, and
Investigation Activities, Internal Audit Division Relationship          Sharia Supervisory Board.
with External Auditors or Legal Experts, Limitation Policy and       4. Communicating and coordinating with external parties
Waiting Period, Reporting, Audit Devemopment, Audit Risk,               including regulators.
and Legal Protection.                                                5. Participating in strategic meetings without having voting
                                                                        rights.
Duties and Responsibilities of Internal Audit                        6. Conducting investigative activities on cases/problems in
Division                                                                every aspect and element of activities indicated by fraud
                                                                        and violation of the code of conduct.
The responsibilities of the Internal Audit Division, namely:
1. Plan and carry out Internal Audit activities with an emphasis     Internal Audit Division Personnel Composition
   on areas/activities that have high risk and evaluate existing
   procedures/control systems to gain confidence that the            The composition of Internal Audit Division personnels as of
   goals and objectives of the Bank can be achieved optimally.       December 31, 2023 is as follows.
2. Evaluating and having an active role in improving the
   effectiveness of the internal control system on an ongong         Table of Internal Audit Division Personnel Composition
   basis related to the implementation of bank operations that
                                                                                           Position                         Total
   are at risk of incurring losses.
3. Providing consultation services to internal parties to             Junior Auditor                                         36
   provide additional value and improvement to the quality
                                                                      Auditor                                                20
   of control, risk management, and corporate governance as
   long as it does not affect the independence and objectivity        Acting Senior Auditor                                  2
   of internal audit, and adequate resources are available.           Senior Auditor                                         6
4. Carry out steps in order to dig up information (investigation),
                                                                      Acting compliance Vice President Assistant of Audit
   report, and submit recommendations/conclusions on fraud                                                                   1
                                                                      Division
   to Management.
                                                                      Vice President Assistant of Audit Subdivision          1
5. Provide recommendations on audit results and monitor
   followup on the results of Internal Audit activities and           Vice President of Internal Audit Division              1
   investigative activities.                                          TOTAL                                                  67



Competency Improvement Program for The Internal Audit Division


  No.                        Training/Certification Date                                Type of Training/Certification

   1     January 13 – 14, 2023                                         Pawn Estimation Training

   2     May 4 – 14, 2023                                              Young Auditor Training Batch 1 (ACCIA)

   3     June 6 – 16, 2023                                             Young Auditor Training Batch 2 (ACCIA)

   4     July 31 – August 10, 2023                                     Young Auditor Training Batch 3 (ACCIA)

   5     May 22 – June 6, 2023                                         Advanced QIA Training

   6     July 12, 2023                                                 PIA Certification Competency Test




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        Annual Report 2023        419
Page 422
  No.                          Training/Certification Date                              Type of Training/Certification

   7       July 8 – 13, 2023                                           Tax Training

   8       August 21 – 23, 2023                                        ITIL Certification

   9       August 23 – 25, 2023                                        Web Pentest Training

   10      October 13 – 18, 2023                                       SKAI Head Certification (CPAM)

   11      December 15 – 22, 2023                                      Intermediate Auditor Training Batch 1 (CCIA)



Internal Audit Division Personnel Certification                      Independence
                                                                     The Internal Audit Division has independence in carrying out
Certifications having been owned by the Auditors as of               Internal Audit and investigative activities, expressing views
December 31, 2023, include:                                          and thoughts in accordance with its profession and applicable
                                                                     standards.
                                                                     1. Management must provide full support for the functions of
                   Certification                         Total
                                                                         the Internal Audit Division in order to be able to carry out
 BSMR 1                                                      39          their duties freely without interference from any party and
                                                                         management must follow up on the findings of the Internal
 BSMR 2                                                      19
                                                                         Audit Division.
 BSMR 3                                                      7       2. Internal Auditors are able to express their views and
 BSMR 4                                                      1           thoughts without influence or pressure from any other
                                                                         party.
 Web Pen Test                                                2
                                                                     3. The Internal Audit Division has the freedom to determine
 QIA Lanjutan                                                3           the audit methods, scope, methods, techniques and
 CISA                                                        1           approaches to be carried out.
                                                                     4. In managing Internal Audit Division personnel, with the
 ITIL                                                        4
                                                                         approval of the President Director and Head of the Internal
 Treasury Dealer                                             1           Audit Division.
 Kredit                                                      1
                                                                     Objectivity
 CCNA                                                        1
                                                                     1. Internal Auditors and Investigators must have an
 CFrA                                                        3          independent mental attitude in carrying out internal audit
 ACCIA                                                       62         and investigative activities. This mental attitude is reflected
                                                                        in a complete, objective report and based on careful and
 PIA                                                         1
                                                                        impartial analysis.
 CPAM                                                        1
                                                                     2. Internal Auditors and Investigators are free from conflicts of
 CEH                                                         1          interest over the object or activity being examined. If the
                                                                        Internal Auditor and Investigator have a conflict of interest
                                                                        in the object or activity being examined, the person
Auditor Code of Ethics                                                  concerned must state the connection and not be assigned
                                                                        to carry out an audit of the object or activity in question.
The Internal Audit Division must strive to be able to play a
role as a consultant for internal parties that need it, especially   Professionalism
regarding the scope of their duties. The Internal Audit Division     Professionalism becomes a reference for the Auditor in carrying
can provide responses to proposals for policies or new systems       out his duties. For this reason the auditor must have the
and procedures to assess aspects of internal control so that in      attitude:
its implementation its objectives can be achieved effectively        1. Integrity, mental attitude that is independent, honest,
and efficiently.                                                          objective, diligent, reliable, decisive, trustworthy, avoids
                                                                          conflicts of interest and upholds the ethics and profession
With the involvement of the Internal Audit Division in this               of the Internal Auditor, including being wise and cautious
system review, it does not mean that those things will be                 in using information obtained in carrying out tasks and not
excluded as audit objects. The Internal Audit Division does               use confidential information for personal interests or other
not have the authority or responsibility to carry out operational         things that could cause harm to the Bank (confidentiality
activities of the Auditee.                                                code).




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2. Competencies in accordance with the required competency            The frequency of meetings is held according to needs.
   profile.
3. The ability to interact and communicate effectively both           During 2023, the Internal Audit Division has attended meetings
   verbally and in writing.                                           with the Board of Directors, Board of Commissioners, and/or
4. Obligation to comply with the Internal Auditor’s Code of           the Audit Committee, with details as follows.
   Ethics and the Internal Auditor’s Professional Standards for
   the Internal Auditor and the Investigator’s Code of Ethics
                                                                                                                       Number of
   and Investigator’s Professional Standards for Investigators.         No.                Description
                                                                                                                       Meetings
5. Obligation to maintain the confidentiality of company
   information and/or data related to carrying out the duties            1.    Kick Off Audit Plan                           1
   and responsibilities of the Internal Auditor unless required
                                                                         2.    Rapat Komite Audit dan Dewan                  4
   by statutory regulations or court decisions/decisions.                      Komisaris

                                                                         3.    Meeting with the Board of Directors          49
Brief Report on The Implementation of Internal                                 Exit Meeting Cabang dan Divisi
Audit Activities In 2023

Audit Method                                                          Findings and Follow Up on Audit Results

The audit is carried out by a sampling method with a Risk Based       The Internal Audit Division must monitor and analyze and
Audit approach, namely an audit approach that begins with an          report the progress of the implementation of the follow-up
audit risk assessment process (risk profile), so that in planning,    improvements that have been made by the Auditee. The
implementing and reporting the audit is more focused on               followup includes:
important high-risk areas. The sampling method used the               1. Monitoring of follow-up implementation
Judgmental Sampling method by considering population and                   Monitoring of follow-up implementation must be carried
historic problem.                                                          out so that progress can be known and can be reminded
                                                                           to the Auditee if the auditee has not been able to carry out
Audit techniques are carried out to obtain relevant evidentiary            the commitment to improve before or until the promised
material in order to compare the existing conditions (conditions)          time limit.
with the conditions that should be (criteria), including              2. Analysis of adequacy of follow-up
substantive tests on financial reports, interviews, verification,          From the results of monitoring of follow-up implementation,
analysis, translation, reconciliation, inspections and if necessary        an adequacy analysis was carried out on the realization of
they can be carried out. confirmation to third parties (Notary,            the promise of improvement that had been carried out by
KJPP, KAP, Bouwheer, etc).                                                 the auditee. Furthermore, a follow-up check needs to be
                                                                           done if there are difficulties or obstacles that cause the
Audit Activities Implementation In 2023                                    follow-up to be unable to be carried out properly. Every
                                                                           time a followup is held, there is a follow-up evidence report
Audit activities in 2023 had been in accordance with Internal              signed by the auditor and auditee.
Audit Division Work Plan (Audit Plan) of 2023 No. 062/001/            3. Follow-up Reporting
AUI/AUDITPLAN dated January 24, 2023. The General Audit                    In its implementation, if the follow-up has not been fully
examinations had been conducted in Conventional Branch                     fulAccorded By the Auditee, the Head of the Internal Audit
Offices, Sharia Branch Offices, Thematic Audit, Surprize Audit,            Division provides a written report to the President Director
and Clarrification Audit in accordance with the possessed                  and the Board of Commissioners as well as a copy to the
authority. Thus, the scope of the audit covers aspects and                 Audit Committee and the Director of Compliance and Risk
elements of all Bank activities.                                           Management for further action.
                                                                      4. Compliance with the follow-up to General Audit findings.
MEETING WITH THE BOARD OF DIRECTORS, BOARD OF                              If none of the progress of follow up occurs within 3 months,
COMMISSIONERS, AND/OR AUDIT COMMITTEE                                      follow-up monitoring is submitted to Audit Policy Group
                                                                           and Quality Control Audit Internal Division, and periodically
The Internal Audit Division has the authority to hold regular              coordinated with the Auditee regarding the follow-up
and incidental meetings with the Board of Director, Board of               development.
Commissioners, Audit Committee and Sharia Supervisory
Board. In addition, the Internal Audit Division can participate in
strategic meetings without having voting rights.




                                                                                 PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                        Annual Report 2023        421
Page 424
Corporate Risk Management Division

Structure of Corporate Risk Management Division

The structure of the Company Risk Management Division consists of the Compliance and Risk Management Director who oversees
the Corporate Risk Management Division which consists of the Credit, Market and Liquidity Risk Management Subdivision and the
Operational Risk Management Subdivision and Others.




                                                               Director
                                                          Risk management




                                                            Vice President
                                                          Risk management




             AVP Market, Liquidity and                             AVP                                 AVP Management
            Corporate Risk Management                  Credit Risk Management                           Operational Risk




                                                                                                                            IT & BCM
                                     Market and        Group                            Operational        Quality
    Group         Enterprise Risk                                    Credit Portfolio                                      Operational
                                    Liquidity Risk                                         Risk           Assurance
                   Management                        Credit Risk      Management                                               Risk
 Middle Office                      Management                                          Management        Operations
                      Group                            Policy            Group                                             Management
                                       Group                                              Group            Group
                                                                                                                              Group




Duties and Responsibilities of The Corporate Risk                        7. Review proposed new products and/or activities developed
Management Division                                                          by a work unit including the completeness of the systems
                                                                             and procedures used and their impact on the overall risk
The duties and responsibilities of the Risk Management Division              exposure of the Bank.
were as follows:                                                         8. Provide recommendations to the risk-taking unit and/
1. Providing input to the Directors in preparing Risk                        or to the Risk Management committee regarding the
   Management policies and strategies.                                       implementation of risk management.
2. Develop procedures and tools for identification,                      9. Evaluate the accuracy and validity of the data used to
   measurement, monitoring and risk control.                                 measure risk for Banks using models for internal Bank
3. Design and implement the tools needed in the                              purposes.
   implementation of risk management.                                    10. Prepare and submit reports on Bank Soundness Level, Bank
4. Monitor the implementation of Risk Management policies,                   Risk Profile, KPMM in accordance with the Risk Profile to
   strategies and frameworks recommended by the risk                         the main Director and the Director in charge of the risk
   management committee and approved by the Board of                         management function.
   Directors.                                                            11. Carry out periodic reviews of the process of implementing
5. Monitor overall risk position or exposure, as well as per                 Risk Management.
   risk, including monitoring compliance with established risk           12. Independent form risk taking unit in performing risk
   tolerances and limits.                                                    management monitoring function. Monitoring function
6. Conduct Stress Testing to determine the impact of the                     aims to ensure that bank risk and portfolio have been well-
   implementation of risk management policies and strategies                 managed, such as by the determination of risk parameter
   on the Bank’s overall portfolio or performance.                           and limit.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                                GOVERNANCE




Profile of Corporate Risk Management Division Head

The Head of the Risk Management Division in 2023 will be Mrs. Suci Issumiyarti.




                                                 Suci Issumiyarti

                                                 Risk Management Division Leader



                                                 Kewarganegaraan         :   Indonesian Citizens

                                                 Domicile                :   Surabaya

                                                 Place and date of       :   Born in Semarang in 1966, 57 years old as of December 2023
                                                 birth

                                                 Educational             :   Bachelor of French from the Semarang State Teacher Training and
                                                 background                  Education Institute (1989).

                                                 Position History        :   Joined Bank Jatim in 1994. Prior to his current position, he served
                                                                             as Head of Operational Division of Ngawi Branch (2011), Head of
                                                                             Kepanjen Branch (2012), Head of Tulungagung Branch (2014), Head
                                                                             of Corporate Secretary Sub Division (2015), Head of Malang Branch
                                                                             (2015), Head of Strategic Planning Division (2017), Head of Institutional
                                                                             and Business Relations Division (2017), Head of Credit Risk Division
                                                                             (2018), Head of Business Risk Division (2020). Head of the Enterprise
                                                                             Risk Management Division (2021), Head of Operations Division (2022).

                                                 Certification               • Risk Management Level 4 Certification
                                                                             • Bank Staff and Leader School (SESPI) of 2021

                                                 Basis of                :   Since 2023, she has served as Head of Risk Management Division
                                                 Appointment                 based on Directors Decree No. 062/148/DIR/HCP/KEP dated August
                                                                             16, 2023.


Risk Management Competency Development

The competency development that has been followed by the Company’s Risk Management Division employees during 2023 is as
follows.


  No.                          Name of Education and Competency Development                                                  Execution time

   1    Corporate Value Internalization For Culture Leaders                                                            January 2023

   2    Training Transaksi DNDF, OIS Dan IRS                                                                           March 2023

   3    Full Stack Data Analytics Program                                                                              April 2023

   4    ATMR Market Risk Measurement in accordance with SEOJK No. 23/Seojk.03/2022                                     April 2023

   5    Value At Risk (Var) Measurement Limit Setting And Portofolio Management                                        May 2023

   6    Financing Analysis, Legal Administrator and Management Collection                                              June 2023

   7    Education and Training of Risk-Based Investment Permits Management                                             July 2023

   8    Trade Finance                                                                                                  July 2023

   9    Early Warning System                                                                                           July 2023

  10    Stress Testing On Market Risk & Liquidity Risk                                                                 August 2023

  11    Leadership And Problem Solving                                                                                 August 2023

  12    Critical Point Dan Strategi Anti Fraud                                                                         August 2023

  13    Facilitating Techniques And Customer Engagement                                                                September 2023

  14    Business Model Canvas                                                                                          September 2023

  15    Communication, Negotiation And Presentation Skills                                                             September 2023




                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                Annual Report 2023              423
Page 426
  No.                          Name of Education and Competency Development                                         Execution time

  16     Supply Chain Concept                                                                                   September 2023

  17     Technology, Banking Innovation, Security, and Data Protection                                          September 2023

  18     Understanding and Function of Funds Product, Funds Management, and Investment, Role of Funding         October 2023
         Officer

  19     AML-CFT, Gratification & Compliance Culture                                                            October 2023

  20     Foreign Exchange Management and Banknotes, ATM, EDC, and ETPD                                          October 2023

  21     Reward Punishment And Corporate Culture                                                                October 2023

  22     Culture Transformation With Growth Mindset                                                             October 2023


Risk Management Certification


  No                  Certification                                              Position                                 Amount

                                                      Directors                                                                 5

   1     Risk Management Certification Level 5        SEVP                                                                      2

                                                      Division Leader                                                           9

                                                      SEVP                                                                      1

                                                      Division Leader                                                          20

   2     Risk Management Certification Level 4        Head of Sub Division/Leader of Branch at the same level                  60

                                                      Senior/Subsidiary Branch Leader at the same level                         2

                                                      Level Staff                                                               1

                                                      Head of Sub Division/Leader of Branch at the same level                  33

                                                      Senior/Subsidiary Branch Leader at the same level                        207
   3     Risk Management Certification Level 3
                                                      Officer/Supervisor Level                                                  6

                                                      Level Staff                                                               2

                                                      Commissioner                                                              2

                                                      Head of Sub Division/Leader of Branch at the same level                   2

   4     Risk Management Certification Level 2        Senior/Subsidiary Branch Leader at the same level                        106

                                                      Officer/Supervisor Level                                                 740

                                                      Level Staff                                                              23

                                                      Officer/Supervisor Level                                                 85
   5     Risk Management Certification Level 1
                                                      Level Staff                                                              187


Implementation Duties of The Risk Management Division in 2023

During 2023, the Risk Management Division has carried out its duties and responsibilities, including:


1. In line with the rule making rule policy, the Risk Management            6. Review the methodology in assessing Bank Soundness
   Division strived to fulfill and comply with the applicable                   Level Parameters.
   regulations through the preparation and review of risk                   7. Monitor Risk Management Activities.
   management policies, both Main and Activity Policies,                    8. Reviewing and updating Risk Limits.
   Standard Operating Procedures and Technical Guidelines..                 9. Development of Risk Management Information System.
2. Compile Risk Assessment of New and Existing Products/                    10. Supervising the achievement of bank business plan by
   Activities.                                                                  attempting sustainably improving measures based on the
3. Execute the Risk Management Committee.                                       results of self-assessment regarding the Bank Soundness
4. Prepare and submit Reports to Regulators.                                    Level.
5. Compile a Stress Tes.




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                                                                                                               GOVERNANCE




11. Satisfaction of the provisions of regulations related         Pembangunan Daerah Jawa Timur Tbk Number 058/ 158/DIR/
    to changes of ATMR measurement for credit risk and            PRS/KEP dated June 17, 2019 concerning the Organizational
    operational risk as well as conducting ATMR Measurement       Structure and Work Procedures of PT Bank Pembangunan
    Trial for Market Risk using the standardized approach         Daerah Jawa Timur Tbk. There was a regulation in the Decree
    method.                                                       of the Board of Directors of PT Bank Pembangunan Daerah
12. Improve the quality of human resources through training       Jawa Timur Number 061/218/DIR/PRS/KEP dated December
    programs both Public Training and In House Training as        7, 2022, including that things to be done during the transition
    well as Risk Management Certification.                        period include but were not limited to:
13. Implement a risk culture strengthening program in order       1. Meeting the needs of Human Resources including transfer
    to increase employee awareness of the risks faced in each         of knowledge and fulfillment of the required competencies;
    work unit.                                                    2. Fulfillment and updating of internal provisions (KPA, SOP,
14. Evaluating the results of testing of internal controlling         Technical Guidelines, Job Descriptions and other related
    system of operational branch by Quality Assurance                 provisions);
    Operations.                                                   3. Fulfillment of the required facilities and infrastructure
                                                                      (including information systems and technology).
Committee Under The Board of Directors
                                                                  Changes to the Organizational Structure and Work Procedures
Provisions regarding the Board of Directors Committee of          were further regulated in the Board of Directors Circular Number
Bank Jatim are stipulated based on the Decree of the Board        062/003/DIR/PRS/SE dated February 24, 2023 regarding
of Directors Number 062/056/DIR/CSE/KEP dated July 12,            Organizational Structure Stages and Work Procedures of Bank
2023, concerning the Board of Directors Committee of PT Bank      Jatim-Grand Design, reulating as follows:
Pembangunan Daerah Jawa Timur Tbk. Following the Decree           1. Implementation        of   Organizational      Structure-Grand
of the Board of Directors of PT Bank Pembangunan Daerah               Design prevailing dated April 30, 2023. In terms of having
Jawa Timur Number 061/218/DIR/PRS/KEP dated December                  employees satisfaction before the effective date of the
7, 2022, concerning the Organizational Structure and Work             Organizational Structure-Grand Design, the organizational
Procedure of PT Bank Pembangunan Daerah Jawa Timur Tbk                structure of the unit can be stated applicable;
and Circular Letter of the Directors of PT Bank Pembangunan       2. Upon the implementation of the Organizational Structure-
Daerah Jawa Timur Tbk Number 062/003/DIR/PRS/SE dated                 Grand Design affecting to the internal provisions to make
February 24, 2023 regarding Organizational Structure and              updating of the internal provisions since the circular Letter
Work Procedure of Bank Jatim-Grand Design, the Committee              of the Board of Directors regarding the Organizational
for the Board of Directors of Bank Jatim in 2023 is as follows:       Structure-Grand Design is stipulated until the effective date
1. Asset Liability Committee (ALCO)                                   of the organizational structure-grand design is enacted;
2. Risk Management Committee                                      3. The authorities and responsibilities of the Board of
3. Personnel Management Committee                                     Directors and the Division on existing internal provisions
4. Information Technology Steering Committee (ITSC)                   (KPA/SOP/ Juknis) were declared to remain valid. If there
5. Credit Committee                                                   was a change/ movement of division nomenclature to be
     a. Credit Implementation Committee;                              adjusted with the Director of the field in charge;
     b. Credit Restructuring Committee                            4. In terms of SEVP position having not satisfied until the
     c. Credit Settlement Committee;                                  effective date of organizational structure- grand design,
     d. Credit Line Committee to the Corporation                      it will refer to Directors Decree No. 061/220/DIR/PRS/
     e. Term Loan Facility Committee;                                 KEP dated December 7, 2022 regarding Appointment
     f. Financing Implementation Committee                            of Temporary Authority and Division of Task of Senior
     g. Financing Restructuring Committee                             Executive Vice President (SEVP) of PT Bank Pembangunan
     h. Financing Rescue Committee                                    Daerah Jawa Timur Tbk;
     i. Credit Book Write-off Committee                           5. During the transition period from the pre-transition stage
     j. Committee Delete Financing                                    until the implementation of the organizational structure-
6. Credit Policy Committee                                            grand design, the authority and responsibilities of the
7. Product and Network Comittee:                                      Board of Directors and Divisions in the existing internal
     a. Product Sector PJP Committee                                  provisions (KPA/SOP/Juknis) are declared to remain valid.
     b. PJP Committee for Networking                                  If there are changes/moves in the Division nomenclature, it
                                                                      will be adjusted to the Division Director in charge;
Decree of the Board of Directors of PT Regional Development       6. The preparation and completion of job descriptions for all
Bank East Java Number 061/218/DIR/PRS/KEP dated                       positions will be carried out in parallel with adjustments to
December 7, 2022 concerning the Organizational Structure              internal provisions with a deadline until the effective date
and Work Procedure of PT Bank Pembangunan Daerah Jawa                 of the organizational structure-grand design is enacted.
Timur Tbk has revoked the Decree of the Directors of PT Bank




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    Annual Report 2023       425
Page 428
Asset Liability Committee (ALCO)                                            risks that occur in banks, especially Liquidity Risk, Interest Rates
                                                                            and Exchange Rates, cooperation and active participation from
In order to unify the decision making of assets and liabilities             the decision makers is necessary, both in terms of assets and
for the purposes outlined, a forum called the Asset Liabilities             liabilities. The cooperation will succeed if each decision maker
Committee (ALCO) is needed. To minimize and eliminate the                   understands the role and its impact on overall business profits.


STRUCTURE AND MEMBERSHIP OF ASSET LIABILITY COMMITTEE (ALCO)


      Position                                             Accorded by                                               Voting Right Status

 Chairman             President director                                                                         Have voting rights

 Subtitute chairman   Director of Finance, Treasury & Global Services                                            Have voting rights

 Secretary            VP Treasury                                                                                Have voting rights

 Permanent Member     •   Director other than Head and Substitute Head                                           Have voting rights
                      •   All VP other than invitees
                      •   All SEVP (Senior Executive Vice President)
                      •   Main Branch Leader

 Non-Permanent        •   Director of Compliance                                                                 Have voting rights
 Member               •   VP of Human Capital Division
                      •   VP of General Affairs Division
                      •   VP of Internal Audit Division
                      •   VP of Compliance & Corporate Governance Division
                      •   VP of Legal Division
                      •   Internal or external resource persons (e.g. Branches other than members, Consultant)




DUTIES, AUTHORITY, AND RESPONSIBILITIES OF ASSET                            6. Evaluate and set the banking book portfolio strategy based
LIABILITY COMMITTEE (ALCO)                                                      on the Bank’s Business Plan (RBB) and following current
                                                                                conditions while still considering Liquidity Risk, Market
ALCO memiliki tugas, wewenang dan tanggung jawab antara                         Risk, and Exchange Rate Risk.
lain:                                                                       7. Review and determine loan and fund interest rates
1. Formulation of strategies and policies for the management                    and list & terms of conditions in accordance with the
     and control of financial assets as well as Bank liabilities                recommendations, studies and the authority of each
     based on the predetermined liquidity risk, interest rate risk              division in charge.
     and exchange rate risk controls.                                       8. Review and determine the position strategy of the Primary
2. Review the balance sheet structure on exposure assets and                    Reserve, Secondary Reserve and Tertiary Reserve.
     liabilities so that it is in line with the Bank’s Business Plan        9. Review and determine the gap position strategy and its
     and established risk limits.                                               instruments.
3. Reviewing the latest developments and projections related                10. Review and define strategies for foreign exchange positions
     to the state of the economy, interest rates, exchange rates                and currencies.
     and foreign exchange to guide established policies                     11. Determine the internal funds transfer rate or inter-office
4. Conduct asset and liability pricing reviews to optimize the                  account prices to boost efficiency in branch management.
     results of investment funds, minimize the cost of funds, and           12. Review the performance and position of the Bank’s assets
     maintain a balance sheet structure in accordance with the                  and financial liabilities in order to assess the impact of asset
     company’s ALMA strategy.                                                   liability management on the Bank’s objectives and on the
5. Evaluate, develop and determine the Asset & Liabilities                      Bank’s internal compliance and regulatory compliance.
     Management position to ensure that the results of the risk             13. Adapt strategy, limitations and implementation guidelines
     taking position are consistent with management objectives:                 as well as policies in order to achieve asset liability
     a. Liquidity Risk.                                                         management objectives.
     b. Interest Risk.
     c. Foreign Exchange Risk.




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                                                                                                                     GOVERNANCE




PROFILE OF ASSET LIABILITY COMMITTEE (ALCO)                                 ASSET LIABILITY COMMITTEE (ALCO) MEETING AND
MEMBERS                                                                     DUTIES
Profiles of members of the Asset Liability Committee (ALCO)
can be seen in the Profiles of Directors and Profiles of Division           MEETING POLICY
Leaders in the Company Profile Chapter in this Annual Report.               The Bank regularly held ALCO (Asset & Liability Committee)
                                                                            Meetings every month. The ALCO meeting agenda was led by
ASSET LIABILITY COMMITTEE (ALCO) INDEPENDENCE                               the ALCO Chair and/or ALCO replacement Chair and attended
STATEMENT                                                                   by ALCO members and invitees. The ALCO Meeting Forum
All committee members had no affiliation with Other Directors,              had fulfilled the meeting quorum in accordance with the
Commissioners or Controlling Shareholders, and they were not                provisions or management policies related to the Committees
shareholders of the Company and could affect their ability to               under the Board of Directors. The ALCO Meeting agenda of
act independently, Commissioners, Directors or employees of                 each Business Division was decided in the ALCO forum and
companies that had affiliation or business with the Bank.                   was in accordance with the pricing policy and the Bank’s
                                                                            business needs.


Implementation of Meetings


                                                                                      Total
  No            Date                    Agenda                 Initiator Division               ALCO results          Attendance
                                                                                     Agenda

   1     January 30, 2023     • List of Term & Condition
                                                               Consumer Division                   Approved
                                Multiprpose Credit
                              • Micro Agent Program            Retail & Medium
                                                               Micro Credit            3           Approved               95%
                                                               Division
                              • List of Term & Condition
                                                               Treasury Division                   Approved
                                Transaksi Valas
   2     February 16, 2023    • Retail Micro & Medium          Micro Retail &
                                                                                       2           Approved              100%
                                Credit Interest Rates          Medium Division
   3     March 21, 2023       • Review of Basic Credit
                                                               Treasury Division       2           Approved               95%
                                Interest Rates
   4     April 14, 2023       • Automobile Credit
                                Interest Rates
                              • List of Term & Condition       Consumer Division                   Approved
                                of Property Credit                                                                        91%
                                                                                       5
                                Program
                              • List of Term & Condition
                                                               Divisi Konsumer                   Not approved
                                Program Kredit Multiguna
   5     May 30, 2023         • Deposit Interest Rates
                                                               Funds & Services
                                (Rupiah & Foreign                                                  Approved
                                                               Division
                                Exchange)
                              • List of Term & Condition       Funds & Services
                                                                                                   Approved
                                BI Fast                        Division
                              • List of Term & Condition       Information             6                                  71%
                                                                                                   Approved
                                API SNAP                       Technology Division
                              • Multipurpose credit            Consumer Credit
                                                                                                   Approved
                                Interest Rates                 Division
                              • Transfer Pricing
                                                               Treasury Division                   Approved
                                Adjustment
   6     June 22, 2023        • Special Sharia Deposit
                                                               Sharia Division         1           Approved               71%
                                Customer
   7     July 14, 2023        • List of Term & Condition       International
                                                                                                   Approved
                                of DPK Foreign Exchange        Banking Division
                              • Retail Jatim Credit Interest   Retail & Medium
                                Rates                          Micro Credit                        Approved
                                                               Division
                              • Special Deposit Interest       Funds & Services        7                                  83%
                                                                                                   Approved
                                Rates                          Division
                              • List of Term & Condition       Funds & Services
                                of ALCO other provisions                                           Approved
                                                               Division
                              • Property Credit Interest       Consumer Credit
                                                                                                   Approved
                                Rates                          Division


                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                             Annual Report 2023    427
Page 430
                                                                                   Total
  No           Date                    Agenda                Initiator Division            ALCO results         Attendance
                                                                                  Agenda

   8     August 9, 2023      • Property Credit Interest      Sharia Business
                                                                                             Approved
                               Rates                         Division

                             • List of Term & Condition      Retail & Medium
                               of Retail Credit              Micro Credit           5        Approved               71%
                                                             Division

                             • List of Term & Condition      Consumer Credit
                                                                                             Approved
                               of Multipurpose Credit        Division

   9     September 13,       • Suku Bunga dan List of
                                                             International
         2023                  Term & Condition Term                                         Approved
                                                             Banking Division
                               Loan Facility (TLF)                                  6                               87%
                             • List of Term & Condition      International
                                                                                             Approved
                               Trade Finance                 Banking Division

  10     October 10, 2023    • List of Term & Condition of   Consumer Credit
                                                                                             Approved
                               Automobile Credit             Division

                             • List of Term & Condition      Retail Microcredit
                               of Retail Credit & Medium     and Program                     Approved
                                                             Division               7                               87%

                             • List of Term & Condition      Commercial,
                               of Corporate Credit           Corporate &
                                                                                             Approved
                                                             Syndication Credit
                                                             Division

  11     October 13, 2023    • List of Term & Condition      Consumer Credit
                                                                                             Approved
                               Kredit Konsumer               Division
                                                                                    5                               93%
                             • List of Term & Condition      Services Fund
                                                                                             Approved
                               Dana Jasa                     Division

  12     November 8, 2023    • List of Term & Condition      Network & Service
                                                             Management                      Approved
                                                             Division

                             • Ujroh Financing of ib                                4                               95%
                               barokah gold                  Sharia Business
                                                                                             Approved
                             • Margin dan List of Term &     Division
                               Condition KUR

  13     November 14, 2023   • Special Debtor Interest       Commercial,
                               Rates                         Corporate and
                                                                                    1        Approved               71%
                                                             Syndication Credit
                                                             Division

  14     December 1, 2023    • Special Deposit Interest      Funds & Services
                                                                                    1        Approved               87%
                               Rates                         Division

  15     December 7, 2023    • BPR Apex Interest Rates       Sharia Business
                                                                                             Approved
                                                             Division

                             • Interest Rates & List of
                                                             Consumer Credit
                               Term & Condition of Cash                                      Approved
                                                             Division
                               Collateral Credit
                                                                                    4                               83%
                             • List of Term & Condition      Funds & Services
                                                                                             Approved
                               of Third Party Funds          Division

                             • List of Term & Condition      Network & Service
                               of Jatim Agent                Management                      Approved
                                                             Division


Risk Management Committee

The Risk Management Committee is established to maintain risk exposures at tolerable or profitable limits, so the Bank can conduct
its business activities and remain under control (manageable) based on the principle of prudence.




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STRUCTURE AND MEMBERSHIP OF RISK MANAGEMENT COMMITTEE
The structure and membership of the Risk Management Committee are as follows.


             Position                                    Accorded by                                  Accorded by Voting Rights Status

 Chairman                     President Director                                                     Have voting rights

 Interim Head of Committee    Director of Risk Management                                            Have voting rights

 Secretary                    Head of Corporate Risk Management Division                             Have no voting rights

 Permanent Member             Director of Divisions                                                  Have voting rights

                              Director of Compliance                                                 Have no voting rights

                              All Senior Executive Vice Presidents (SEVP)                            Have voting rights



DUTIES, AUTHORITIES AND RESPONSIBILITIES OF THE                             5. Determining overall limits, limits per type of risks, limits per
RISK MANAGEMENT COMMITTEE                                                      functional activity including limits related to business and
                                                                               other operations.
The authorities and responsibilities of the Risk Management                 6. Deciding the level of risk appetite and risk tolerance.
Committee is to evaluate and provide recommendations to                     7. Delivering strategic issues that are in line with business
the President Director regarding the implementation of risk                    strategy and follow up on these issues that are discussed in
management, including minimally as follows:                                    the previous Risk Management Committee and have been
1. Drafting of risk management policies and its changes,                       determined by the Division in charge.
    including risk management strategies, level of risks
    appetite and risk tolerance, risk management framework,                 RISK MANAGEMENT COMMITTEE MEMBERS PROFILE
    and contingency plans to anticipate the occurrence of
    abnormal conditions.                                                    Profiles of members of the Risk Management Committee can
2. Improving the risk management process periodically or                    be seen in the Profiles of Directors and Profile of Division
    incidentally as a result of changes in the Bank’s external              Leaders in the Company Profile Chapter in this Annual Report.
    and internal conditions that affect the Bank’s capital
    sufficiency, risk profile, and ineffective implementation of            RISK MANAGEMENT COMMITTEE INDEPENDENCE
    Risk Management based on the results of evaluation.                     STATEMENT
3. Determination of policies and/or business decisions
    that deviate from normal procedures, such as exceeding                  All committee members have no affiliation with Other
    significant business expansion compared to the Bank’s                   Directors, Commissioners or Controlling Shareholders, are not
    previously determined business plan or taking positions or              shareholders of the Company which can affect their ability to
    risk exposures that exceed predetermined limits.                        act independently, Commissioners, Directors or employees of
4. Submitting an assessment of the Bank’s Soundness Level                   companies that have affiliation or business with the Bank.
    and company risk profile.



MEETINGS AND IMPLEMENTATION OF RISK MANAGEMENT COMMITTEE TASKS


             Meeting                                                                Initiator      Number       Committee
  No.                                          Agenda                                                                           Attendance
              Date                                                                  Division      of Agenda      Results

   1.    January 31,    The results of self – assessment     for the period of
         2023           December 2022:
                                                                                      Risk
                        1. Bank’s Soundness Level
                                                                                  Management           5          Approved          86%
                        2. Bank’s risk prfile
                                                                                    Division
                        3. Governance
                        4. Rentability and Capialization

   2.    February 10,   1. Review of Authority Limit of Settlement towards
         2023              Transaction via Estim
                                                                                      Risk
                        2. Credit Portfolio or Financing Guidelines:
                                                                                  Management           2          Approved          71%
                           a. Target Market;
                                                                                    Division
                           b. Negative List;
                           c. Development Plan of East Java Region.




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             Meeting                                                                    Initiator      Number     Committee
  No.                                            Agenda                                                                         Attendance
              Date                                                                      Division      of Agenda    Results

   3.     May 4, 2023   1. Global Financial Market Dynamics
                        2. Banlk’s Risk Profile on March 2023 comprised of:
                           a. Follow-up Progress of Komenko #01
                                                                                           Risk
                           b. The Results of Self- Assessment of Bank’s Risk Profile
                                                                                       Management         2        Approved        71%
                              for the period of March 2023
                                                                                         Division
                           c. Risk Issue in 2023
                           d. The Results of Self- Assessment of Bank’s Risk Profile
                              for the period of February 2023

   4.     May 31,       1. Review of Authority Limits for Approval & Payment of
                                                                                           Risk
          2023             Goods/Services Procurement and Non-Product Costs
                                                                                       Management         3        Approved        71%
                        2. Review of Switching Limits and Budget Exceedings
                                                                                         Division
                        3. Risk Appetite Statement

   5.     October 24,   1. Bank’s Risk Profile Report for the period of September
                                                                                         Divisi
          2023             2023
                                                                                       Manajemen          3        Disetujui       92%
                        2. Review of Authority Limits for Settlement towards
                                                                                         Risiko
                           Transaction via Estim



Personnel Management Committee

The Personnel Management Committee was formed in order to obtain optimal results in deciding critical matters in the field of
Human Capital, both strategically, policies, and the Human Capital management system in line with the Bank’s Business Plan.


STRUCTURE AND MEMBERSHIP OF THE EMPLOYMENT COMMITTEE
Struktur Keanggotaan Komite Manajemen Kepegawaian adalah sebagai berikut:


        Chairman                                             President Director                                          Have Sound

 Substitute Head          Director of Fields Obtaining Appointment from the Main Director                          Have Sound

 Member                   Director of other fields and SEVP in charge of the Human Capital Division                Have Sound

 Secretary                Head of the Human Capital Division                                                       Have no Sound




DUTIES, AUTHORITIES AND RESPONSIBILITIES OF THE                                  b. Establish and decide standard operating procedures in
EMPLOYMENT COMMITTEE                                                                 the field of Human Capital
The Personnel Management Committee has duties, authorities                    3. Duties, authorities and responsibilities of the Board of
and responsibilities, among others:                                              Directors Committee in the field of career management
1. The duties, authorities and responsibilities of the Board                     include:
   of Directors Committee are divided into 3 (three) areas                       a. Deciding on the implementation of the official transfer/
   consisting of:                                                                    promotion program at Echelon 1 and Echelon 2 levels.
   a. Policy Area                                                                b. Evaluating the Key Performance Indicators (KPI) of
   b. Career Management                                                              individual officials with echelon 1 levels.
   c. Office Punishment                                                       4. The duties, authorities and responsibilities of the Board of
2. The duties, authorities and responsibilities of the Board of                  Directors Committee in the field of disciplinary punishment
   Directors Committee in the policy field include:                              are to decide on disciplinary violation sanctions for
   a. Ensure that the main policies related to Human Capital                     employees with echelon 1 and 2 levels and echelon levels
       activities are consistent and in line with the company’s                  below them if the violations are interrelated.
       strategic planning (Corporate plan).




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EMPLOYMENT COMMITTEE MEMBERS PROFILE


Profiles of Personnel Management Committee Members can be seen in the Profiles of Directors and Heads of Division in the
Company Profile Chapter in this Annual Report.


STATEMENT OF INDEPENDENCE OF EMPLOYEE MANAGEMENT COMMITTEE


All committee members have no affiliation with Other Directors, Commissioners or Controlling Shareholders, are not shareholders
of the Company which can affect their ability to act independently, Commissioners, Directors or employees of companies that have
affiliation or business with the Bank.


MEETINGS AND IMPLEMENTATION OF THE TASKS OF THE EMPLOYEE MANAGEMENT COMMITTEE


                                                                                                      Board of
                                                                                          Number
           Meeting                                                          Initiator                 Directors
  No                                           Agenda                                       of                       Attendance
            Date                                                            Division                 Committee
                                                                                          Agendas
                                                                                                       Results

   1    January 3,       CIRCULAR – Refinement of Grading and             Human Capital      1      Approved         Circular – 100%
        2023             Renumeration Policy                              Division

   2    January 6,       CIRCULAR – Recruitment of Experienced            Human Capital      1      Approved         Circular – 100%
        2023             Employees Echelon 2                              Division

   3    January 20,      CIRCULAR – Approval of Implementation of         Human Capital      1      Approved         Circular – 100%
        2023             Echelon 1 Recruitment                            Division

   4    February 14,     CIRCULAR – Refinement of Duty Travel Policy      Human Capital      1      Approved         Circular – 100%
        2023                                                              Division

   5    February 22,     - Transfer of Echelon 1 & 2 Officers             Human Capital      2      Approved         83%
        2023             - Appointment of Officers to SEVP Position       Division

   6    February 24,     Transfer of Echelon 2 Employees                  Human Capital      1      Approved         83%
        2023                                                              Division

   7    March 10, 2023   CIRCULAR – Refinement of Grading and             Human Capital      1      Approved         Sirkuler – 100%
                         Renumeration System                              Division

   8    March 10, 2023   CIRCULAR – Refinement of Punishment SOP          Human Capital      1      Approved         Sirkuler – 100%
                                                                          Division

   9    March 20, 2023   Positional Punishment                            Human Capital      1      Approved         88%
                                                                          Division

  10    March 28, 2023   Discussion of SEVP Interview Resutls             Human Capital      1      Approved         88%
                                                                          Division

  11    April 11, 2023   Division Leader KPI                              Human Capital      1      Approved         100%
                                                                          Division

  12    May 31, 2023     - Fulfillment of Vacant Position Echelon 1 & 2   Human Capital      2      Approved         100%
                         - Transfer of Task                               Division

  13    June 14, 2023    - Fulfillment of Vacant Position Echelon 1 & 2   Human Capital      2      Approved         75%
                         - Transfer of Task                               Division

  14    July 4, 2023     - Fulfillment of Vacant Position Echelon 1 & 2   Human Capital      2      Approved         75%
                         - Changes in Mutation SOP & KMK SOP              Division

  15    July 14, 2023    Refinement of Car Allowance Program SOP          Human Capital      1      Approved         100%
                                                                          Division

  16    August 7, 2023   Fulfillment of Vacant Position Echelon 1 & 2     Human Capital      1      Approved         88%
                                                                          Division
                         Positional Punishment                                               1      A follow-up
                                                                                                    committee
                                                                                                    will be held
                                                                                                    on October 6,
                                                                                                    2023

  17    October 6,       Positional Punishment                            Human Capital      1      A follow-up      75%
        2023                                                              Division                  committee will
                                                                                                    be held on
                                                                                                    December 21,
                                                                                                    2023


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                                                                                                        Annual Report 2023     431
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                                                                                                          Board of
                                                                                           Number
             Meeting                                                        Initiator                     Directors
  No                                           Agenda                                        of                          Attendance
              Date                                                          Division                     Committee
                                                                                           Agendas
                                                                                                           Results

   18    November 1,     SIRKULER - SOP Total Reward                     Human Capital           1      Approved         Sirkuler – 100%
         2023                                                            Division

   19    December 21,    Positional Punishment                           Human Capital           1      Approved         100%
         2023                                                            Division

                         Positional Punishment                                                          Extended
                                                                                                        committee was
                                                                                                        arranged

   20    December 29,    - Fulfillment of Vacant Position Echelon 2      Human Capital           1      Approved         100%
         2023            - Transfer of Task                              Division


Information Technology Steering Committee                             2. As part of IT governance in order to minimize the risk
                                                                         associated with the use of IT and to protect the interests
The roles and functions of the Information Technology Steering           of the IT Steering Committee, it was formed as a
Committee (ITSC) are:                                                    manifestation of the commitment of the Board of Directors
1. Information Technology Steering Committee (ITSC) is                   and management of Bank Jatim in the form of active
   part of IT governance in providing recommendations,                   supervision of IT management. As stipulated in POJK MRTI,
   the committee must pay attention to the efficiency factor             ITSC plays a role in assisting the implementation of the
   as part of IT governance in order to minimize the risk                Board of Directors’ duties in establishing the Information
   associated with the use of IT and to protect the interests of         Technology Strategic Plan and Bank policies related to the
   the Bank and customers.                                               use of Information Technology.


STRUCTURE AND MEMBERSHIP OF INFORMATION TECHNOLOGY STEERING COMMITTEEE


        Position                                        Accorded by                                      Voting Rights Status

 Chairman                 President director                                                     Have voting rights

 Substitute Chairman      Director of IT & Digital                                               Have voting rights

 Secretary                Vice President of Information Technology                               Have voting rights

                          1. Director of Operation                                               Have voting rights
                          2. Director of Finance, Treasury & Global Services
                          3. Director of Mikro, Retail and Medium Enterprises
                          4. Director of Risk Management
                          5. Director of Compliance
                          6. Corporate Secretary
 Permanent member         7. All of Senior Executive Vice Presidents
                          8. All of Vice Presidents, Except:
                             a. Vice President Internal Audit
                             b. Vice President Legal
                             c. Vice President Compliance and Anti-Money Laundry and Terrorism
                                Funding
                          9. All of Unit Leaders

                          1. Vice President Internal Audit                                       Have no voting rights
                          2. Vice President Legal
 Non-Permanent Member
                          3. Vice President Compliance and Anti-Money Laundry and Terrorism
                             Funding



DUTIES, AUTHORITIES AND RESPONSIBILITIES OF THE INFORMATION TECHNOLOGY STEERING COMMITTE
The duties, authorities, and responsibilities of the IT Committee are to provide recommendations to the Board of Directors concerning:
1. Strategic IT Plan aligned with the Bank’s business activity strategic plan. In providing recommendations, the Committee must
   consider factors such as efficiency, effectiveness, and other aspects, including:
   a. Roadmap to achieve needs supporting the Bank’s business strategy. The roadmap consists of the current state, the desired
        future state, and steps to be taken to achieve the desired state.




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      b. Required resources.                                                         8. Monitor the performance of Information Technology and
      c. Benefits to be obtained when the IT Strategic Plan is                           efforts to improve Information Technology performance,
           implemented.                                                                  such as detecting IT infrastructure obsolescence
      d. Constraints that may arise in the implementation of the                         and measuring effectiveness as well as efficiency in
           IT Strategic Plan.                                                            implementing Information Technology security policies.
2.    Formulate the primary Information Technology policies,                         9. Make efforts to resolve various Information Technology-
      standards, and procedures, including information                                   related issues that cannot be resolved by user units and
      security policy and risk management related to the use of                          Information Technology providers efficiently, effectively,
      Information Technology in the Bank.                                                and timely.
3.    Align the approved Information Technology projects                             10. Allocate adequately the resources owned by the Bank. In
      with the Information Technology Strategic Plan. The                                cases where the owned resources are inadequate and the
      Committee also sets priority status for critical IT projects                       Bank will use the services of other parties in IT management,
      that significantly impact the Bank’s operational activities,                       the IT steering committee must ensure that the Bank has
      such as the replacement of core banking applications,                              the necessary policies and procedures.
      production servers, and network topology.
4.    Align the implementation of Information Technology                             INFORMATION TECHNOLOGY STEERING COMMITTEE
      projects with the approved project plan. The Committee                         MEMBER PROFILE
      should supplement recommendations with analyses of                             Profiles of Information Technology Steering Committee
      major IT projects, enabling the Board of Directors to make                     Members can be seen in the Profiles of Directors and Division
      efficient decisions.                                                           Leaders in the Company Profile Chapter in this Annual Report.
5.    Align the operation of Information Technology with the
      needs of management information systems and the                                STEERING INDEPENDENCE OF INFORMATION
      business activities of the Bank.                                               TECHNOLOGY STEERING COMMITTEE
6.    Carry out effective measures to minimize risks of the Bank’s                   All committee members have no affiliation with Other
      investment in Information Technology.                                          Directors, Commissioners or Controlling Shareholders, are not
7.    Provide information that contributes to the achievement of                     shareholders of the Company which can affect their ability to
      the Bank’s business objectives.                                                act independently, Commissioners, Directors or employees of
                                                                                     companies that have affiliation or business with the Bank.


MEETINGS AND IMPLEMENTATION OF INFORMATION TECHNOLOGY STEERING COMMITTEE TASKS


                                                                                                      Number
                                                                                        Initiator                  Committee
     No        Meeting Date                           Agenda                                            of                         Attendance (%)
                                                                                        Division                    Results
                                                                                                      Agendas

     1        August 4, 2023         Progress and Realization of the Bank’s          Information
                                     Business Plan for the IT and Digital            Technology           1          Approved            81%
                                     Directorate

     2        November         24,   a. Progress dan Realisation of the Bank’s       Information
              2023                      Business Plan for the IT and Digital         Technology
                                        Directorate
                                                                                                          2          Approved            82%
                                     b. Presentation of the IT Strategic Plan 2024
                                        – 2028 : Simplifying Customer Lives –
                                        Ernst & Young (EY).



Credit Committee

STRUCTURE AND MEMBERSHIP OF THE CREDIT/FINANCE COMMITTEE


1. Membership Structure of Credit Implementation

                         Credit
     Category        Implementation                       Business Function Group                             Business Risk Function Group
                       Committee

                                            1. Director of Micro, Retail & Medium Enterprises           1. President Director
                                            2. Director of Finance, Treasury & Global Services          2. Director of Remedial and Wholesale Risk
                     Board of               3. SEVP Corporate, Syndication & Institutional Affairs      3. Director of Operation
          A                          A1
                     Directors              4. SEVP Consumer Banking                                    4. Director of IT & Digital banking
                                                                                                        5. SEVP Corporate Transformation/ SEVP
                                                                                                           Network & Services

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                          Credit
   Category           Implementation                               Business Function Group                                           Business Risk Function Group
                        Committee

                                                  1. Director of Micro, Retail & Medium Enterprises                          1. Director of Risk Management
                                                  2. Director of Finance, Treasury & Global Services                         2. Director of Operations
                                          A2      3. SEVP Corporate, Syndikacation & Institutional Affairs                   3. Director of IT & Digital
                                                                                                                             4. SEVP Corporate Transformation/                      SEVP
                                                                                                                                Network & Services

                                                  1. Director of Micro, Retail & Medium Enterprises/                         1. Direktur Manajemen Risiko
                                                     Director of Finance, Treasury & Global Services*                        2. Director of Operation/Director of IT & Digital
                                          A3      2. SEVP Corporate, Syndication & Institutional/ SEVP                          Banking**
                                                     Consumer Banking                                                        3. SEVP Corporate Transformation/ SEVP
                                                                                                                                Network & Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the
    business function of the Credit Committee (A3).
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3



2. Credit Restructuring Membership Structure

                        Committee
  Category            Restructurisation                           Business Function Group                                           Business Risk Function Group
                           Credit

                                                    1. Director of Micro, Retail & Medium Enterprises                    1. President Director
                                                    2. Director of Finance, Treasury & Global Services                   2. Director of Risk Management
                                                    3. SEVP Corporate, Syndication & Institutional Affairs               3. Director of Operations
                                          A
                                                    4. SEVP Consumer Banking                                             4. Director of IT & Digital
                                                                                                                         5. SEVP Corporate Transformation
                                                                                                                         6. SEVP Network & Services

                                                    1. Director of Micro, Retail & Medium Enterprises                    1. President Director
                                                    2. Director of Finance, Treasury & Global Services                   2. Director of Risk Management
                                                    3. SEVP Corporate, Syndication & Institutional Affairs               3. Director of Operations
                                          A1
                                                    4. SEVP Consumer Banking                                             4. Director of IT & Digital
                     Board of                                                                                            5. SEVP Corporate Transformation / SEVP Network
     Credit
                     Directors                                                                                              & Services

                                                    1. Director of Micro, Retail & Medium Enterprises                    1. Director of Risk Management
                                                    2. Director of Finance, Treasury & Global Services                   2. Director of Operations
                                          A2        3. SEVP Corporate, Syndication & Institutional Affairs               3. Director of IT & Digital
                                                                                                                         4. SEVP Corporate Transformation / SEVP Network
                                                                                                                            & Services

                                                    1. Director of Micro, Retail & Medium Enterprises /                  1. Director of Risk Management
                                                       Director of Finance, Treasury & Global Services *                 2. Director of Operations / Director of IT & Digital **
                                          A3
                                                    2. SEVP Corporate, Syndication & Institutional Affairs               3. SEVP Corporate Transformation/ SEVP Network &
                                                       / SEVP Consumer Banking                                              Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the business
   function of the Credit Committee (A3) for credit restructurisation
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3 for
   credit restructurisation



1) Membership Structure of the Credit Settlement Committee

                         Credit
  Category             Settlement                               Business Function Group                                             Business Risk Function Group
                       Committee

                                               1. Director of Micro, Retail & Medium Enterprises                          1. President Director
                                               1. Director of Finance, Treasury & Global Services                         2. Director of Risk Management
                                               2. SEVP Corporate, Syndication & Institutional Affairs                     3. Director of Operations
                                     A1
                                               3. SEVP Consumer Banking                                                   4. Director of IT & Digital
                                                                                                                          5. SEVP Corporate Transformation / SEVP Network
                    Board of                                                                                                 & Services
        A
                    Directors
                                               1.Director of Micro, Retail & Medium Enterprises                           1. Director of Risk Management
                                               2.Director of Finance, Treasury & Global Services                          2. Director of Operations
                                     A2        3.SEVP Corporate, Syndication & Institutional Affairs                      3. Director of IT & Digital
                                                                                                                          4. SEVP Corporate Transformation / SEVP Network
                                                                                                                             & Services



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                         Credit
  Category             Settlement                                Business Function Group                                              Business Risk Function Group
                       Committee

                                                1. Director of Micro, Retail & Medium Enterprises /                         1.Director of Risk Management
                                                   Director of Finance, Treasury & Global Services *                        2.Director of Operations / Director of IT & Digital **
                                      A3
                                                2. SEVP Corporate, Syndication & Institutional Affairs /                    3.SEVP Corporate Transformation / SEVP Network
                                                   SEVP Consumer Banking                                                       & Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the business
    function of the Credit Committee (A3).
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3



2) Membership Structure of Credit Line Committee to Corporations

                            Credit Line
    Category                                                       Business Function Group                                            Business Risk Function Group
                            Committee

                                                    1. President Director (Also functions as Director in                    Director of Risk Management
                                           A1          charge of Corporations)
                                                    2. Director of Finance, Treasury & Global Services
          A              DIREKSI                    1. Director in charge of corporate credit business                      Director of Risk Management
                                           A2
                                                    2. Director of Finance, Treasury & Global Services

                                           A3       Director of Finance, Treasury & Global Services                         VP Credit Risk Analyst




3) Membership Structure of Term Loan Facility (TLF)

                             Committee
     Category                                                       Business Function Group                                           Business Risk Function Group
                                TLF

                                                     1. President Director (Also functions as Director in                    Director of Risk Management
                                            A1          charge of Corporations)
                                                     2. Director of Finance, Treasury & Global Services
           A               DIREKSI
                                                     1. Director in charge of Corporations                                   Director of Risk Management
                                            A2
                                                     2. Director of Finance, Treasury & Global Services

                                            A3       Director of Finance, Treasury & Global Services                         VP Credit Risk Analyst




4) Membership Structure for Financing Implementation

                            Committee
    Category              Implementation                             Business Function Group                                          Business Risk Function Group
                             Financing

                                                        1. Director of Micro, Retail & Medium Enterprises                   1. President Director
                                                        2. Director of Finance, Treasury & Global Services                  2. Director of Risk Management
                                                        3. SEVP Corporate, Syndication & Institutional                      3.Director of Operations
                                           A1
                                                           Affairs                                                          4.Director of IT & Digital
                                                        4. SEVP Sharia Business                                             5. SEVP Corporate Transformation / SEVP Network
                                                                                                                               & Services

                                                        1. Director of Micro, Retail & Medium Enterprises                   1. Director of Risk Management
                                                        2. Director of Finance, Treasury & Global Services                  2. Director of Operations
          A                                A2           3. SEVP Sharia Business                                             3. Director of IT & Digital
                                                                                                                            4. SEVP Corporate Transformation/ SEVP Network
                                                                                                                               & Services

                                                        1. Director of Micro, Retail & Medium Enterprises /                 1. Director of Risk Management
                                                           Director of Finance, Treasury & Global Services *                2. Director of Operations / Director of IT & Digital
                                           A3           2. SEVP Sharia Business                                                **
                                                                                                                            3. SEVP Corporate Transformation/ SEVP Network
                                                                                                                               & Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the
     business function of the Credit Committee (A3).
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee
     A3




                                                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 438
5) Membership Structure of the Financing Restructurisation


                          Committee
  Category              Restructurisation                            Business Function Group                                                 Risk Function Group
                           Financing


                                                       1. Director of Micro, Retail & Medium                                1. President director
                                                       2. Director of Finance, Treasury & Global Services                   2. Director of Risk Management
                                                       3. SEVP Corporate, Syndication & Institutional                       3. Director of Operations
                                             A
                                                       4. SEVP Sharia Business                                              4. Director of IT & Digital
                                                                                                                            5. SEVP Corporate Transformation
                                                                                                                            6. SEVP Network & Services
                                                       1. Director of Micro, Retail & Medium                                1. President director
                                                       2. Director of Finance, Treasury & Global Services                   2. Director of Risk Management
                                                       3. SEVP Corporate, Syndication & Institutional                       3. Director of Operations
                                           A1
                                                       4. SEVP Sharia Business                                              4. Director of IT & Digital
                      Board of                                                                                              5. SEVP Corporate Transformation / SEVP Network
         A
                      Directors                                                                                                & Services
                                                       1. Director of Micro, Retail & Medium                                1. Director of Risk Management
                                                       2. Director of Finance, Treasury & Global Services                   2. Director of Operations
                                           A2          3. SEVP Sharia Business                                              3. Director of IT & Digital
                                                                                                                            4. SEVP Corporate Transformation / SEVP Network
                                                                                                                               & Services
                                                       1. Director of Micro, Retail & Medium/Director of                    1. Director of Risk Management
                                                          Finance, Treasury & Global Services*                              2. Director of Operations / Director of IT & Digital
                                           A3
                                                       2. SEVP Sharia Business                                              3. SEVP Corporate Transformation / SEVP Network
                                                                                                                               & Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the business
    function of the Credit Committee (A3) for financing restructurisation
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3 for
    financing restructurisation


6) Membership Structure of the Financing Settlement Committee

                        Committee
  Category              Completion                            Business Function Group                                                 Risk Function Group
                         Financing

                                                  1. Director of Micro, Retail & Medium                              1. President director
                                                  2. Director of Finance, Treasury & Global Services                 2. Director of Risk Management
                      Board of                    3. SEVP Corporate, Syndication & Institutional                     3. Director of Operations
         A                              A1
                      Directors                   4. SEVP Sharia Business                                            4. Director of IT & Digital
                                                                                                                     5. SEVP Corporate Transformation/ SEVP Network
                                                                                                                        & Services
                                                  1. Director of Micro, Retail & Medium                              1. Director of Risk Management
                                                  2. Director of Finance, Treasury & Global Services                 2. Director of Operations
                                        A2        3. SEVP Sharia Business                                            3. Director of IT & Digital
                                                                                                                     4. SEVP Corporate Transformation/ SEVP Network
                                                                                                                        & Services
                                                  1. Director of Micro, Retail & Medium/Director of                  1. Director of Risk Management
                                                     Finance, Treasury & Global Services*                            2. Operations Director/IT & Digital Director**
                                        A3
                                                  2. SEVP Sharia Business                                            3. SEVP Corporate Transformation/ SEVP Network
                                                                                                                        & Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in
    the business function of the Credit Committee (A3)
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee
    A3


7) Membership Structure of Write Off Credit Committee

                        Write Off
  Category              Financing                           Business Function Group                                                      Risk Function Group
                       Committee

                                                 1. Director of Micro, Retail & Medium                             1. President director
                                                 2. Director of Finance, Treasury & Global Services                2. Director of Risk Management
                    Board of                     3. SEVP Corporate, Syndication & Institutional                    3. Director of Operations
        A                             A1
                    Directors                    4. SEVP Consumer Banking                                          4. Director of IT & Digital
                                                                                                                   5. SEVP Corporate Transformation/SEVP Network &
                                                                                                                      Services


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                       Write Off
  Category             Financing                           Business Function Group                                                   Risk Function Group
                      Committee

                                              1. Director of Micro, Retail & Medium                             1. Director of Risk Management
                                              2. Director of Finance, Treasury & Global Services                2. Director of Operations
                                     A2       3. SEVP Corporate, Syndication & Institutional                    3. Director of IT & Digital
                                                                                                                4. SEVP Corporate Transformation/SEVP Network &
                                                                                                                   Services
                                              1. Director of Micro, Retail & Medium/Director of                 1. Director of Risk Management
                                                 Finance, Treasury & Global Services*                           2. Director of Operations / Director of IT & Digital
                                     A3
                                              2. SEVP Corporate, Syndication & Institutional/                   3. SEVP Corporate Transformation/SEVP Network &
                                                 SEVP Consumer Banking                                             Services

*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the business
    function of the Credit Committee (A3)
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3



8) Struktur Keanggotaan Hapus Buku Pembiayaan

                      Komite
 Kategori           Hapus Buku                           Kelompok Fungsi Bisnis                                                  Kelompok Fungsi Risiko
                    Pembiayaan

                                            1. Director of Micro, Retail & Medium                             1. President director
                                            2. Director of Finance, Treasury & Global Services                2. Director of Risk Management
                  Board of                  3. SEVP Corporate, Syndication & Institutional                    3. Director of Operations
       A                           A1
                  Directors                 4. SEVP Sharia Business                                           4. Director of IT & Digital
                                                                                                              5. SEVP Corporate Transformation/SEVP Network & Services


                                            1. Director of Micro, Retail & Medium                             1. Director of Risk Management
                                            2. Director of Finance, Treasury & Global Services                2. Director of Operations
                                            3. SEVP Sharia Business                                           3. Director of IT & Digital
                                   A2
                                                                                                              4. SEVP Corporate Transformation/SEVP Network & Services



                                            1. Director of Micro, Retail & Medium/Director of                 1. Director of Risk Management
                                               Finance, Treasury & Global Services*                           2. Director of Operations / Director of IT & Digital
                                   A3
                                            2. SEVP Sharia Business                                           3. SEVP Corporate Transformation/SEVP Network & Services


*) If the Director of Micro, Retail and Medium Enterprises is unable to attend, then the Director of Finance, Treasury & Global Services will serve as a substitute member in the business
    function of the Credit Committee (A3)
**) If the Director of Operations is unavailable to attend, then the Director of IT & Digital Banking will serve as a substitute member in the risk function of the Credit Committee A3




DUTIES, AUTHORITIES, & RESPONSIBILITIES OF THE                                                   6. Give approval or refusal to write off credit/financing books
CREDIT AND FINANCING COMMITTEE                                                                      following the credit authority limit set by the Board of
1. Provide direction if necessary to conduct a more in-depth                                        Directors;
   and comprehensive credit analysis (review of the credit                                       7. Give approval or rejection of Credit Line or Term Loan
   analysis memorandum);                                                                            (TLF) under the credit authority limit set by the Board of
2. Provide a decision or recommendation on the draft credit                                         Directors;
   decision submitted by the recommendation provider/                                            8. Establish credit plans, both restructured and unstructured
   proposer which is related but not limited to:                                                    from other financial institutions.
   a. Large debtors
   b. Industry specific.                                                                         The responsibilities of Credit and Financing Committee
3. Coordinate with the Asset & Liabilities Committee (ALCO)                                      include:
   in terms of credit funding aspects and credit interest rate                                   1. Implement their duties, especially in providing credit
   adjustments if necessary;                                                                         approval professionally, honestly, objectively, carefully, and
4. Give approval or credit rejection of the proposed credit                                          thoroughly.
   facility in accordance with the credit limit set by the Board                                 2. Reject requests and influence from parties with an interest
   of Directors;                                                                                     in the credit applicant to give approval that is merely a
5. Give approval or rejection of rescue and settlement of                                            formality.
   credit/ financing by the credit authority limit set by the
   Board of Directors;




                                                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                                       Annual Report 2023                         437
Page 440
Validity and Decision-Making of the Credit Committee:                   STATEMENT OF INDEPENDENCE OF THE CREDIT AND
1. The committee is considered valid if attended by all                 FINANCING COMMITTEE
    members of the Credit Committee according to the                    All committee members have no affiliation with Other
    category and type of the Credit Committee.                          Directors, Commissioners or Controlling Shareholders, are not
2. Decision-making is carried out through a mechanism of                shareholders of the Company which can affect their ability to
    consultation to reach a consensus from the voting members           act independently, Commissioners, Directors or employees of
    (collective collegial).                                             companies that have affiliation or business with the Bank.


PROFILE OF CREDIT AND FINANCING COMMITTEE
MEMBERS
Profiles of Credit Committee Members can be seen in the
Profile of the Board of Directors and Profile of Division Leaders
in the Company Profile Chapter of this Annual Report.



MEETINGS AND IMPLEMENTATION OF THE TASKS OF THE CREDIT COMMITTEE


                                                                                               Number
                                                                                                          Committee     Committee
 No.    Meeting Date             Agenda                       Initiator Division                 of
                                                                                                           Decision     Attendance
                                                                                               Agendas

  1.   January 5, 2023     Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  2.   January 9, 2023     Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  3.   February 8, 2023    Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  4.   February 16, 2023   Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  5.   February 28, 2023
                           Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%
  6.   March 8, 2023

  7.   March 13, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  8.   March 21, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

  9.   March 30, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 10.   April 5, 2023       Credit Implementation   Corporate and Syndicated Commercial Loans      2        Approved        100%

 11.   April 12, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 12.   April 12, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 13.   April 14, 2023      Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 14.   May 11, 2023        Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 15.   May 26, 2023        Credit Implementation   Retail & Medium Credit                         1        Approved        100%

 16.   June 7, 2023        Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 17.   June 14, 2023       Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 18.   June 26, 2023       Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

       November 16,
 19.                       Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%
       2023

       November 17,
 20.                       Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%
       2023

       November 17,
 21.
       2023
                           Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%
       November 22,
 22.
       2023

 23.   December 1, 2023    Credit Implementation   Corporate and Syndicated Commercial Loans      1        Approved        100%

 24.   December 28, 2023   Implementasi Kredit     Consumer Credit                                1        Approved        100%




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                               GOVERNANCE




Credit Restructurisation Committee

                                                                                                       Number
                                                                                                                     Committee      Committee
 No.     Meeting Date               Agenda                          Initiator Division                   of
                                                                                                                      Decision      Attendance
                                                                                                       Agendas

  1.    January 16, 2023     Credit Restructurisation   Corporate and Syndicated Commercial Loans            2         Approved        100%

  2.    March 27, 2023       Credit Restructurisation   Corporate and Syndicated Commercial Loans            1         Approved        100%

  3.    April 14, 2023       Credit Restructurisation   Corporate and Syndicated Commercial Loans            1         Approved        100%

  4.    April 14, 2023       Credit Restructurisation   Corporate and Syndicated Commercial Loans            1         Approved        100%

  5.    September 26, 2023   Credit Restructurisation   Corporate and Syndicated Commercial Loans            2         Approved        100%

  6.    December 13, 2023    Credit Restructurisation   Corporate and Syndicated Commercial Loans            2         Approved        100%



Term Loan Facility (TLF) Committee

                                                                                                      Number of      Committee      Committee
 No.       Meeting Date               Agenda                        Initiator Division
                                                                                                       Agendas        Decision      Attendance

   1.    December 21, 2023    Term Loan Facility           International Bankint                            1          Approved        100%



Financing Implementation Committee

                                                                                        Number of
 No.       Meeting Date                 Agenda                 Initiator Division                           Committee Results       Attendance
                                                                                         Agendas

                              Financing Implementation        Sharia Business                          A1 Committee- Approved
   1     March 3, 2023                                                                        1                                        100%
                              Committee                       Division                                 with remarks

                              Financing Implementation        Sharia Business                          A3 Committee- Approved
   2     March 20, 2023                                                                       1                                        100%
                              Committee                       Division                                 with remarks

                              Financing Implementation        Sharia Business                          A3 Committee- Approved
   3     August 2, 2023                                                                       1                                        100%
                              Committee                       Division                                 with remarks

         September 22,        Financing Implementation        Sharia Business                          A1 Committee- Approved
   4                                                                                          1                                        100%
         2023                 Committee                       Division                                 with remarks

                              Financing Implementation        Sharia Business                          A1 Committee- Approved
   5     December 14, 2023                                                                    1                                        100%
                              Committee                       Division                                 with remarks


Financing Restructurisation Committee

                                                                                              Number
                                                                           Initiator
 No.       Meeting Date                     Agenda                                              of           Committee Results      Attendance
                                                                           Division
                                                                                              Agendas

                              Syndication Financing                   Sharia Business                       A1 Committee-
   1     April 14, 2023                                                                           1                                    100%
                              Restructurisation Committee             Division                              Approved with remarks



Credit and Financing Write-Off Committee

                                                                                                    Number
                                                                                                                   Committee
 No.       Meeting Date                       Agenda                      Initiator Division          of                            Attendance
                                                                                                                    Results
                                                                                                    Agendas

                              Credit Committee (A2) for Write-off        Division of Credit
   1     June 26, 2023        Credit/Financing for the June 2023         Restructuring and              1        Approved              100%
                              Period                                     Recovery

                              Credit Committee (A2) for Write-off        Division of Credit
                                                                                                                 Approved with
   2     December 27, 2023    Credit/Financing for the December          Restructuring and              1                              100%
                                                                                                                 remarks
                              2023 Period                                Recovery




                                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                Annual Report 2023        439
Page 442
CREDIT POLICY COMMITTEE


Credit Policy Committee, hereinafter abbreviated as KKP, is a             This committee was formed with the aim of supporting sound
committee formed by the Board of Directors in the framework               lending and monitoring from the initial submission process to
of credit policy management that aims to support the provision            implementation using the precautionary principle. In the Credit
of sound credit and contains elements of internal control from            Policy can be divided into 2 namely:
the initial stage of the credit activity process to the credit            a. Credit Policy Committee
monitoring stage by observing the principle of prudence.                  b. Financing Policy Committee




STRUCTURE AND MEMBERSHIP OF CREDIT POLICY COMMITTE


             Position                                       Accorded by                                    Voting Rights Status

 Chairman                           President Director                                             Have voting rights

 Substitute Chairman                1. Commercial and Corporate Director, or                       Have voting rights
                                    2. Director of Consumer Retail & Sharia Business

 Secretary                          Operations Division                                            Have no voting rights

 Permanent member                   1. Board of Directors                                          Have voting rights
                                       • Director of Consumer Retail & Sharia Business
                                       • Director of Finance
                                       • Director of IT and Operations
                                       • Business Risk Director
                                    2. Division
                                       • Business Risk Division
                                       • Commercial, Corporate & Syndication Credit Division
                                       • Consumer Credit Division
                                       • Microcredit, Retail & Program Division
                                       • Strategic Planning & Performance Management Division
                                       • Treasury Division
                                       • Credit Rescue & Settlement Division

 Non-Permanent Member               1. Board of Directors                                          Have no voting rights
                                       • Director of Compliance & Risk Management
                                    2. Division
                                       • Compliance & Governance Division
                                       • Internal Audit Division
                                       • Legal Division
                                       • Human Capital Division
                                       • Corporate Risk Management Division

DUTIES, AUTHORITY, AND RESPONSIBILITIES OF CREDIT POLICY COMMITTEE
The tasks of the Credit Policy Committee include:


1. Assist in the formulation of policies and strategies for credit        The authority and responsibility of the Credit Policy Committee
   or financing proposed by each Credit or Financing Division             are:
   before being established in the Credit Policy Committee                1. Provide proposals/input to the Credit Policy Committee for
   meeting;                                                                    the formulation of policies, strategies, and guidelines;
2. Assist in the review process of changes in the                         2. Provide proposals/input to the Credit Policy Committee for
   implementation guidelines for credit or financing based                     monitoring, evaluation, improvement, and refinement of
   on changes in regulations from external parties such as                     the implementation of existing products.
   banking regulators and internal changes;                               3. Provide proposals/input to the Credit Policy Committee for
3. Provide advice on the fundamentals of the development                       justifying matters related to business decisions that deviate
   and changes in the implementation guidelines in the field                   from normal procedures (irregularities), such as:
   of credit or financing;                                                     a. Decisions on the development of credit or financing
4. Provide advice on improvement measures related to :                              products related to business needs not mentioned in
   a. Supervision results of the implementation of Credit                           the Bank’s business plan;
        Policy and Administrationfor Credit or Financing; and                  b. Take positions/exposures to risks resulting from the
   b. Monitoring and evaluation results related to the                              implementation of credit or financing products.
        implementation of KPA for Credit and or Financing.




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                                                                                                                             GOVERNANCE




PROFILE OF MEMBERS OF THE CREDIT POLICY COMMITTEE
Profiles of Credit Policy Committee Members can be seen in the Profiles of the Directors and Division Leaders in the Company Profile
Chapter in this Annual Report.


STATEMENT OF INDEPENDENCE OF THE CREDIT POLICY COMMITTEE
All committee members have no affiliation with other Directors, Commissioners or Controlling Shareholders, are not shareholders of
the Company which could affect their ability to act independently, Commissioners, Directors and employees from companies that
have affiliations or business with the Bank.


MEETINGS AND IMPLEMENTATION OF DUTIES OF THE CREDIT POLICY COMMITTEE

                                                                                                   Number of          Committee   Attendance
  No.         Meeting Date            Agenda                         Initiator Division
                                                                                                   Agen-das            Results        (%)

                              1. Review of Cash and
                                 Non-Cash Credit or
                                 Financing Approval
                                 Authority Limits
                                 (LKPK/P) with or
                                 without Committee
                              2. Review of Cash and
   1.     June 14, 2023          Non-Cash Credit or          Risk Management Division                    3             Approved      100%
                                 Financing Approval
                                 Authority Limits
                                 (LKPK/P).
                              3. Review Limit On The
                                 Spot (OTS) in the
                                 Credit or Financing
                                 Process


Product and Network Committee

PRODUCT COMMITTEE
The Product Committee is established for the management of policies and monitoring of products to ensure success in developing
and evaluating products in line with the Bank’s business plan.


STRUCTURE AND MEMBERSHIP OF THE PRODUCT COMMITTEE


          Position                                  Accorded by                                              Voting Rights Status

 Chairman                    President director                                               Have voting rights

                             a. Director of Operations; or                                    Have voting rights
 Substitute Chairman
                             b. Director of IT and Digital

                             a. VP of Product Development; or                                 Have no voting rights
 Secretary
                             b. VP of Digital Banking

                             a. Director of Field;                                            a. Have voting rights
 Permanent member            b. Director of Compliance; And                                   b. Have no voting rights
                             c. SEVP of the Related Division                                  c. Have voting rights

                             a. VP of the Related Division; and                               Have no voting rights
 Invitation
                             b. AVP of the Related Business Unit




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023     441
Page 444
DUTIES, AUTHORITY, AND RESPONSIBILITIES OF PRODUCT                 PRODUCT COMMITTEE MEMBERS PROFILE
COMMITTEE                                                          Profiles of Product, Network and Procedure Committee For
Duties and Authorities                                             Product Members can be seen in the Profiles of the Directors and
1. Deliberate, establish, and evaluate business strategies         the Profile of Division Leaders in the Company Profile Chapter in
    through product development, encompassing both digital         this Annual Report.
    and non-digital aspects, covering conventional and Sharia
    products. This includes the development of new and             STATEMENT OF INDEPENDENCE OF THE PRODUCT
    advanced products.                                             COMMITTEE
2. Monitor and evaluate the performance of products and            All committee members have no affiliation with Other
    make decisions regarding product sustainability based on       Directors, Commissioners or Controlling Shareholders, are not
    initiator recommendations (whether to continue, develop,       shareholders of the Company which can affect their ability to
    cease, or close a product).                                    act independently, Commissioners, Directors or employees of
3. Discuss and resolve strategic business issues related to        companies that have affiliation or business with the Bank.
    product development.
                                                                   MEETINGS AND IMPLEMENTATION OF DUTIES OF THE
Responsibilities                                                   PRODUCT COMMITTEE
1. Execute tasks, particularly those related to product            Throughout the year 2023, there were no implementation of
   development, professionally, optimally, accurately, securely,   product committee meetings, and the process was underway
   and competitively.                                              for updating internal provisions related to changes in the
2. Ensure that product development and its policies align with     Grand Design Organizational Structure. The update of the
   the established business strategy.                              Product Committee SOP had been carried out, and the
                                                                   Product Committee SOP had been issued through the Board of
                                                                   Directors Decree of PT Bank Pembangunan Daerah Jawa Timur
                                                                   Tbk No. 062/03/80/DIR/PGP/DEC dated December 29, 2023.




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NETWORK COMMITTEE
Network Committee acts as a compiler for the implementation of development, status changes and/or network closures as well as
determining the class of branches and sub-branches in network classification. The PJP Network Sector Committee functions as a
forum for policy management and monitoring effectiveness of the Bank’s network to ensure success in creating optimal profits.


STRUCTURE AND MEMBERSHIP OF THE NETWORK COMMITTEE


              Position                                  Accorded by                                   Voting Rights Status

 Chairman                          President director                                      Have voting rights

 Chairman 1                        Director of Operations                                  Have voting rights

 Chairman 2                        SEVP Network & Services                                 Have voting rights

 Secretary                         VP of Network Management & Services                     Have voting rights

 Vice Secretary                    AVP of Branch Management                                Have voting rights

                                   1. VP of General Affairs                                Have voting rights and can be represented
 Member                            2. VP of Human Capital
                                   3. VP of Corporate Risk Management

 Invitation                        Relevant Branch Manager (end user)                      Have no voting rights




DESCRIPTION OF DUTIES, AUTHORITY AND                                    4. Determine the amount of investment and the budget for
RESPONSIBILITIES OF THE NETWORK COMMITTEE                                  opening, changing status and/or closing the network.
Duties of the Branch Network Development Team include:                  5. Determine the boundaries of the division of areas and
1. Develop policies and strategies for network development                 organizational structure on the network.
    that are tailored to the needs and provide direction for            6. Decide on the results of network performance optimization;
    optimization and effectiveness of network performance.              7. Decide the class of branches and sub-branches of the
2. Directing and evaluating the network development                        network classification results.
    strategy;                                                           8. Determine the classification system and final mapping
3. Provide opinions or the latest issues regarding network                 results.
    development.
4. Monitor evaluation results and proposed changes in status            Responsibilities
    and/or closure of office networks.                                  1. Responsible for the implementation of the network
5. Provide recommendations:                                                development strategy;
    a. Types of networks eligible to open.                              2. Responsible for network classification implementation.
    b. Withdrawal/transfer of human capital on plans for                3. Responsible for the evaluation of network development
        downgrading and/or closing office networks.                        implementation.
    c. Readiness/availability of filling and placement of
        human capital in the office network development plan;           PROFILE OF NETWORK COMMITTEE MEMBERS
6. Monitor the results of network performance optimization.             Profiles of Product, Network and Procedure Committee For
7. Monitor the results of evaluating changes in the class of            Network Members can be seen in the Profiles of the Directors
    branches and sub-branches in the network classification;            and the Profile of Division Leaders in the Company Profile
8. Provide recommendations for changes to the class of                  Chapter in this Annual Report.
    branches and sub-branches in the network classification.
                                                                        STATEMENT OF INDEPENDENCE OF THE NETWORK
Authorities of the Branch Network Development Team are as               COMMITTEE
follows:                                                                All committee members have no affiliation with Other
1. Establish and decide on a customized network development             Directors, Commissioners or Controlling Shareholders, are not
     policy and strategy.                                               shareholders of the Company which may affect their ability to
2. Deciding on the type and number of networks included in              act independently, Commissioners, Directors or employees of
     the Bank’s Business Plan.                                          companies that have affiliation or business with the Bank.
3. Decide on changes in status/closure of office networks after
     evaluation by the related unit.




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023        443
Page 446
IMPLEMENTATION OF DUTIES OF THE NETWORK COMMITTEE


                                                                                         Number
                                                                                                      Committee
  No.     Meeting Date                    Agenda                   Initiator Division      of                           Attendance
                                                                                                       Results
                                                                                         Agenda

                                                                   Network & Service
   1     April 5, 2023       Network Opening and Relocation                                 10      Approved                100%
                                                                   Management Division

                                                                   Network & Service
   2     July 5, 2023        Network Expansion                                              1       Approved                100%
                                                                   Management Division

                             Upgrading Branch Status to Sub-       Network & Service
   3     July 21, 2023                                                                      4       Approved                100%
                             Branch (KCP) and Network Relocation   Management Division



Implementation of Governance In Provision of Remuneration for Commercial Banks In
Accordance With POJK 45/POJK.03/2015

Basis of Remuneration Determination                                     It is a condition where the MRT has been proven to have
                                                                        committed fraud through a decision that has permanent
The basis for the preparation of the determination of                   legal force (inkracht van gewijsde).
remuneration, namely:                                                2. Variable remuneration must be deferred at a certain
1. Law Number 40 of 2007 dated August 16, 2007 concerning               percentage determined by the Company.
   Limited Liability Companies.                                      3. The Malus implementation procedure is carried out by
2. Financial Services Authority Regulation No. 17/                      suspending or canceling the remuneration that is still
   POJK.03/2023 dated September 14, 2023, concerning the                suspended if certain conditions occur according to point 1
   Implementation of Governance for Commercial Banks.                   above.
3. Financial Services Authority Regulation (POJK) number
   45/POJK.03/2016 dated December 23, 2016 concerning                Remuneration and Nomination Committee
   Implementation of Governance in Providing Remuneration
   for Commercial Banks.                                             The Board of Commissioners formed a Remuneration and
4. Circular of the Financial Services Authority Number 40/           Nomination Committee which aimed to assist in carrying out
   SEOJK.03/2016 dated September 26, 2016 concerning                 its functions and duties in areas related to the remuneration
   Implementation of Governance in Providing Remuneration            and nomination of members of the Board of Directors and the
   for Commercial Banks.                                             Board of Commissioners. The remuneration and nomination
5. Bank Jatim Articles of Association.                               committee had duties and responsibilities, including:
                                                                     1. Regarding the mandatory remuneration policy:
Based on the application of the Financial Services Authority              a. Evaluating the remuneration policy based on
Regulation POJK Number 45/POJK.03/2015 concerning the                         performance, risk, fairness and peer group, long-term
Implementation of Governance in Providing Remuneration for                    goals and strategies of the Bank, fulfillment of reserves
Commercial Banks, Bank Jatim implemented governance in the                    as stipulated in legislation and potential future bank
provision of remuneration which considered several aspects                    earnings;
including bank ability and appropriateness, competitive, fair             b. Delivering evaluation results and recommendations
and based on risk could be accounted for and in accordance                    to the Board of Commissioners regarding the
with the prevailing laws and regulations. The Company might                   remuneration policy for the Board of Directors and the
postpone the provision of deferred variable remuneration                      Board of Commissioners to be submitted to the GMS.
(malus) or withdraw the variable remuneration that had been               c. Delivering evaluation results and recommendations
paid (clawback) to officials classified as Material Risk Taker                to the Board of Commissioners regarding the overall
(MRT), with the following conditions:                                         remuneration policy for employees to be submitted to
1. The Company may postpone the payment of deferred                           the Board of Directors;
    variable Remuneration (malus) to Material Risk Taker under            d. Ensuring that the remuneration policy is in accordance
    certain conditions, namely:                                               with applicable regulations; e. Conducting periodic
    - The Bank experience bankruptcy.                                         evaluations of the implementation of the remuneration
        Namely a condition in which the Bank’s balance sheet                  polic.
        (Profit and Loss Statement) experiences a loss (negative          e. Conduct regular evaluations of the implementation of
        profit).                                                              remuneration policies.
    - There was a fraud committed by Material Risk Takers
        that caused losses to the Bank.




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                                                                                                               GOVERNANCE




2. Regarding the mandatory nomination policy:                     Performance Measurement Associated with
   a. Preparing and providing recommendations regarding           Remuneration
      the system and procedure for selecting and / or
      replacing members of the Board of Directors and             Bank Jatim applied competency-based remuneration by
      members of the Board of Commissioners to the Board          measuring performance related to remuneration including
      of Commissioners to be submitted to the GMS;                a review of remuneration policies related to performance
   b. Providing recommendations regarding candidate               appraisal, methods of linking individual remuneration with
      members of the Board of Directors and / or candidates       Bank Jatim performance. Performance appraisal used a Key
      for members of the Board of Commissioners to the            Performance Indicator (KPI) which consisted of an individual
      Board of Commissioners to be submitted to the GMS;          performance assessment and each work unit.
   c. Providing recommendations regarding Independent
      Parties who would become members of the audit               The application of the remuneration strategy was also carried
      committee to the Board of Commissioners in                  out by taking into account the performance of each individual
      accordance with applicable regulations.                     employee (based on performance) and the performance of
                                                                  the work unit while still paying attention to the availability
Scope of Remuneration Policy and its                              of the company’s budget. In general, Bank Jatim provided
Implementation                                                    remuneration to employees in the form of monthly salaries,
                                                                  Overtime Allowance, Meal Allowance, Periodic Salary Increase,
In relation to the enactment of OJK Regulation No. 45/            Holiday Allowance (THR), Annual Leave Pay, Extended Leave
POJK.03/2015 concerning the Implementation of Governance          Allowance, Communication Allowance, Car Allowance Program
in Providing Remuneration for Commercial Banks, Bank Jatim        (CAP), Motor Allowance Program (MAP), Structural Allowance,
has established a remuneration policy for the Company’s           Incentives, Performance Bonus, and Production Incentive. Bank
Board of Directors, which was approved through the Board of       Jatim also provided health facilities for employees and their
Commissioners’ Decree dated January 18, 2023, and the Board       families including inpatient care, outpatient care, childbirth,
of Directors’ Decree dated April 18, 2023, related to the Total   general check-ups, replacement of glasses and outpatient
Reward policy for employees. The remuneration policy was          assistance programs for Bank Jatim pensioners.
the bank’s strategy in providing rewards to employees, which
were adjusted to the Bank’s ability to accommodate changes in     Remuneration Adjustment Associated With
employee demographics, managing labor costs, and in order         Performance and Risk
to encourage the achievement of Bank Jatim’s business goals.
Bank Jatim remuneration was prepared with the aim of being        Bank Jatim provided remuneration that was variable in nature,
able to attract, maintain, motivate, and increase employee        namely remuneration that was linked to performance and risks,
engagement in order to continuously provide optimal               including performance bonuses, production services, bonuses
performance, support the vision, mission and strategy of Bank     and other forms of remuneration that could be equated with
Jatim.                                                            this. Remuneration in the form of tantiem could be given in
                                                                  cash and in shares issued by Bank Jatim with the provisions
Bank Jatim sets the remuneration into 2 (two), namely:            stipulated in the Decree of the Board of Commissioners dated
1. Permanent Remuneration                                         January 18, 2023.
   - Remuneration policies that are permanent in nature at
       least pay attention to:                                    The Process of Preparing a Remuneration
       Business scale, complexity, peer group, inflation,         Policy
       financial conditions, capabilities, applicable laws,
       and regulations. The fixed remuneration consists of        The remuneration policy became one of the important factors in
       an honorarium, housing allowance, Communication            obtaining and/or retaining competent and qualified employees,
       Allowance, Holiday Allowance, Leave Allowance,             executive officers, Directors and Board of Commissioners.
       Health Facilities/Costs, and other Facilities/Allowances   The remuneration policy became Bank Jatim’s strategy in
       determined by the Bank. This remuneration is unrelated     providing rewards that were adjusted to Bank Jatim’s ability to
       to performance.                                            accommodate changes in employee demographics, managing
2. Variable remuneration consists of                              labor costs, and in order to encourage the achievement of
   The variable component of remuneration is linked to            Bank Jatim’s business goals. Bank Jatim remuneration was
   performance and risk, including bonuses (tantiem) and          prepared with the aim of being able to attract, retain, motivate,
   other Facilities/Allowances determined by the Bank as          and increase employee engagement in order to continuously
   remuneration provided based on performance. Tantiem is         provide optimal performance, support the vision, mission
   granted in the form of cash and shares or stock instruments    and strategy of Bank Jatim. Bank Jatim remuneration policy
   issued by Bank Jatim.                                          formulation considered:




                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                    Annual Report 2023       445
Page 448
1. The creation of effective risk management.                      Variable Remuneration
   - The remuneration policy had to be able to trigger an
       increase in performance.                                    Bank Jatim provides variable remuneration in the form of
2. Financial Stability;                                            performance bonuses, production services, tantiem and other
   - The remuneration policy also considered inflation and         forms of remuneration that can be equated with that.
       the Bank’s financial condition.
3. Adequacy and capital of the Bank;                               Number of Directors, Board of Commissioners
   - The remuneration policy could maintain the continuity         and Employees That Receive Variable
       of the Bank’s business in order to be able to survive and   Remuneration for 1 (one) Year
       develop, and be able to compete in the global market
       and in its peer groups. The Bank’s capital adequacy
       included capital adequacy in order to comply with                            Position                       Total
       regulatory capital and the Individual Capital Adequacy
                                                                    Board of Commissioners                        5 persons
       Assessment Process (ICAAP).
4. Long-term and short-term liquidity needs;                        Board of Directors                            7 persons
   - The remuneration policy had to consider the Bank’s
                                                                    Employees                                   4.671 persons
       ability.
5. Potential future income;
   - The remuneration policy had to be in accordance with          Position and Number of Parties That are
       the Bank’s long-term strategy.                              Material Risk Takers

Name of Extern Consultants and Duties of
Consultants Related to Remuneration Policy                                          Position                       Total

                                                                    Board of Commissioners                        5 persons
In determining the remuneration policy, the Bank cooperates
with GML Consulting whose task is to conduct benchmarking           Board of Directors                            7 persons
and/or Salary Survey as per the Bank’s requests on remuneration
policies. This ensures that the Bank stays abreast of workforce
market trends.                                                     Shares Options Owned by Directors, Board of
                                                                   Commissioners, and Executive Officers
Remuneration Package and Facilities Received
by The Board of Directors and Board of                             A description of the Shares Options Owned by the Board of
Commissioners                                                      Directors, Board of Commissioners and Executive Officers is
                                                                   explained in the Performance-Based Long-Term Compensation
The remuneration package and facilities received by the Board      Policy section of the Corporate Governance Chapter in this
of Directors and the Board of Commissioners have been              Annual Report.
presented in the Sub-Title of Remuneration of the Board of
Commissioners and Directors of the Corporate Governance
Chapter in this Annual Report.




Highest and Lowest Salary Ratio


                                          Description                                                Ratio

 President Commissioner’s Salary with Other Commissioners                                           1,11 : 1

 President Director’s Salary with other Directors                                                   1,25 : 1

 President Director’s Salary with the highest Employee Salary                                       2,38 : 1

 Director Salary with the Highest Employee Salary                                                   1,90 : 1

 Highest Employee Salary with Lowest Employee                                                       12,29 : 1




         PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                   CORPORATE
                                                                                                                  GOVERNANCE




Number of Recipients and Total Amount of Variable Remuneration Guaranteed Without Condition


                   Position                                 Total                        Amount (in millions of Rupiah)

 Board of Commissioners                                   4 persons                               251.100.000,-
 Board of Directors                                       6 persons                               600.000.000,-



Number of Recipients and Total Amount of Variable Remuneration Guaranteed Without Condition


                 Information                        Number of Employees                 Severance (in millions of Rupiah)

 Dismissed                                                    26                                 237.395.805,24
 Passed away                                                  7                                  1.696.250.978,86
 Pension                                                      90                                33.666.634.657,75
 Grand Total                                                 123                                35.600.281.441,85



Total Amount of Delayed Variable Remuneration


                   Position                                 Total                                   Amounts

 Board of Commissioners                                   5 persons                              505.546.323,79
 Board of Directors                                       6 persons                              887.290.106,65



Total Amount of Delayed Variable Remuneration Paid For 1 (one) Year


                   Position                                 Total                                   Amounts

 Board of Directors                                       5 persons                              941.116.263,63


Total Remuneration Provided in One Year


                   Position                                 Total                                   Amounts

 Board of Commissioners                                   5 persons                             15.129.704.673,37
 Board of Directors                                       7 persons                             33.962.469.135,19



Quantitative Information


                                                                               Total Deductions During the Reporting Period

         Types of Variable Remuneration*)               Remaining Pending    Caused Explicit   Caused Implicit         Total
                                                                             Adjustment (A)    Adjustment (B)         (A)+(B)

 Cash (in million rupiah)                                 1.653.519.230,88          -                 -                   -
 Shares/share-based instruments issued by the Bank
 (in shares and a nominal value of millions of rupiah
 which is the conversion of the said shares)              1.363.714.404,01          -                 -                   -


 Total                                                    3.017.233.634,89          -                 -                   -

Remarks: *) Only for MRT




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       Annual Report 2023       447
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                                                                     3. The Independent Auditor’s Report on the Financial
Public Accountant                                                       Statements for the period ending December 31, 2023 with
                                                                        comparative figures for the period ending December 31,
External Audit Function                                                 2022 in the form of:
                                                                        a. Financial Report;
Based on the Financial Services Authority Regulation No. 32/            b. Statement of Profit and Loss and Other Comprehensive
POJK.03/2016 concerning Amendments to Financial Services                    Income;
Regulation No. 6/POJK.03/2015 concerning Transparency                   c. Statement of Changes in Equity;
and Publication of Bank Reports, an audit of the Bank Jatim             d. Cash flow statement;
Financial Statements for the 2023 financial year has been               e. Publication Reports;
carried out by an independent, competent, professional, and             f. Notes to the Financial Statements, including information
objective public accountant following the Public Accountant                 regarding commitments and contingencies;
Professional Standards, as well as work agreements and scope            g. Other reports according to:
established audits.                                                         - Decree of the Chairman of the Capital Market
                                                                                and Financial Institution Supervisory Agency No:
For the audit process to follow the Professional Standards                      KEP-347/ BL/2012 Regulation VIII.G.7 concerning
for Accountants and work agreements and the audit scope                         Presentation and Disclosure of Financial Statements
that has been determined and completed according to a                           of Issuers or Public Companies.
predetermined time target, meetings are routinely held to                   - Decree of the Board of Directors of the Jakarta
discuss several significant essential issues. Bank Jatim is always              Stock Exchange Number: Kep-306/BEJ/07-2004
trying to improve communication between Public Accountants,                     concerning regulation Number I-E concerning
the Audit Committee, and the management of Bank Jatim to                        Obligations for Submitting Information. The
minimize problems during the audit process.                                     presentation of this information is provided in
                                                                                2 (two) versions, both in Bahasa Indonesia and
The appointment of a Public Accounting Firm and audit                           English (Bilingual), comprising 1 (one) original and
fees follow POJK No.13/POJK.03/2017 and SEOJK No. 36/                           50 (fifty) hard copies, including the soft copy.
SEOJK.03/2017 and the resolutions of the Annual GMS. Public          4. Report Management Letter (ML) in Indonesian in 10 (ten)
Accounting Firm and Public Accountant (partner in charge)               copies including the softcopy.
registered with the Financial Services Authority.                    5. Independent Auditor’s Report on compliance with laws
                                                                        and regulations and internal control in accordance
Appointment of Public Accountant                                        with Statement of Auditing Standards (PSA) No. 62 in
                                                                        Indonesian, a total of 10 (ten) copies including the softcopy.
Appointing a Public Accountant and KAP starts from the               6. The results of the inspection are in the form of documents
recommendation of the Board of Commissioners submitted to               specified in the scope of the Public Accountant Services
the GMS. The audit of Bank Jatim’s financial statements ending          Work for Examining the Financial Statements of PT Bank
December 31, 2023 was carried out based on the Cooperation              Pembangunan Daerah Jawa Timur, Tbk which ends on
Agreement First Party Number 062/137/DIR/AMK/PKS and                    December 31, 2023, including the Sharia Business Unit
Second Party Number E095.XI/ADH/2023 dated November                     along with working papers including other documents
22, 2023 to PUBLIC ACCOUNTING OFFICE (PAO) PAUL                         related to the audit, which belong to the PT East Lawa
HADIWINATA, HIDAJAT , ARSONO, RETNO, PALILINGAN &                       Regional Development Bank, Tbk.
PARTNERS with an audit fee of IDR1,175,000,000 (One Billion          7. Public Accounting Firm Paul Hadiwinata, Hidajat, Arsono,
One Hundred Seventy Five Million Rupiah) including VAT.                 Retno, Palilingan & Partners have communicated with
                                                                        the Financial Services Authority (OJK) for discussions
Services of the Public Accounting Firm to Banks include:                regarding the scope of the audit of the Bank Jatim Financial
1. Declaration of Independence Letter to Bank Jatim;                    Statements which ended on December 31, 2023.
2. inspection schedule including interim inspection schedule;




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                        GOVERNANCE




Public Accounting Firms, Accountant Names and Audit Service Fees

Table of Public Accounting Firms, Accountant Names and Audit Service Fees.

                                                                                Name of
                                                                                                                          Audit Service
                                                                               Accountant
  Year              Public Accounting Firm                 PAF period                                 AP Period            Fee (Million
                                                                               (Partner in
                                                                                                                             Rupiah)
                                                                                 Charge)

  2023     Paul Hadiwinata, Hidajat, Arsono, Retno,       2nd period                               2nd period                   1.175
                                                                           Ary Daniel H
           Palilingan & Partners

  2022     Paul Hadiwinata, Hidajat, Arsono, Retno,       1st period                               1st period                   1.121
                                                                           Ary Daniel H
           Palilingan & Partners

  2021     Kanaka Puradiredja, Suhartono                  1st period       Florus Daeli            1st period                   1.300

   2020    Amir Abadi Jusuf, Aryanto, Mawar & Rekan       1st period                               2nd period                   1.485
                                                                           Bimo Iman Santoso
           (RSM Indonesia)

   2019    Paul Hadiwinata, Hidajat, Arsono, Retno,       3rd period                               2nd period                    960
                                                                           Gideon
           Palilingan & Partners

   2018    Paul Hadiwinata, Hidajat, Arsono, Retno,       2nd period                               1st period                    940
                                                                           Gideon
           Palilingan & Partners

   2017    Paul Hadiwinata, Hidajat, Arsono, Retno,       1st period                               1st period                    570
                                                                           Ary Daniel H
           Palilingan & Partners

   2016    Hendrawinata Eddy Siddharta & Tanzil           2nd period       Rita Susilowati         2nd period                    840

   2015    Hendrawinata Eddy Siddharta & Tanzil           1st period       Rita Susilowati         1st period                    900

   2014    Purwantono, Suherman & Surja (Ernst & Young)   5th period       Sinarta                 3rd period                    980

   2013    Purwantono, Suherman & Surja (Ernst & Young)   4th period       Sinarta                 2nd period                     900

   2012    Purwantono, Suherman & Surja (Ernst & Young)   3rd period       Sinarta                 1st period                     675

   2011    Purwantono, Suherman & Surja (Ernst & Young)   2nd period       Drs. Hari Purwantono    2nd period                     795



Other Services Provided by Accountants                                  The Internal Control System (SPI) is a monitoring mechanism
                                                                        established by the management of Bank Jatim on an
During 2023, there are no other services provided by                    ongoing basis. An effective SPI is an essential component in
accountants.                                                            management and forms the basis for sound and safe Bank
                                                                        operational activities. Implementing an effective internal
Internal Control System                                                 control system can assist Bank management in safeguarding
                                                                        Bank assets, increasing Bank compliance with applicable
In order to create and improve the quality of risk management           laws and regulations, and reducing the occurrence of losses,
implementation that supported the effectiveness of a riskbased          deviations, and violations of prudential aspects.
Bank supervision framework, Bank Jatim was required to have
an Internal Control System (SPI) that was reliable and effective        mplementing a reliable and effective internal control system for
in managing its risk which was determined by the Bank’s                 the Bank is the responsibility of all risk-taker units, support units,
management on an ongoing basis, in order to:                            and the Internal Audit Division. The internal control system for
1. Safeguard and secure the assets of the Bank.                         risk refers to the overall internal control system, which includes:
2. Ensure the availability of more accurate reports.                    1. The Bank implements an effective internal control system
3. Increase compliance with applicable regulations.                          in implementing Risk Management regarding established
4. Reduce the financial impact or the impact of losses,                      policies and procedures. Applying the principle of
    irregularities including fraud and violations of prudential              segregation of functions (four eyes) is sufficient, and the
    aspects.                                                                 principle is implemented consistently.
5. Increase organizational effectiveness and increase cost              2. Comprehensive internal control system in the
    efficiency.                                                              implementation of Risk Management




                                                                                     PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                            Annual Report 2023          449
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3. Implementation of a review of the implementation of Risk         The adequacy of the Bank’s internal control was assessed
   Management                                                       based on the controls inherent in activities in accordance with
4. The results of the review assessment by the Company’s            the policies, systems and procedures implemented including
   Risk Management Division are submitted to the Board of           activity control, physical control, compliance and limit
   Commissioners, Internal Audit Division, Compliance and           provisions, reconciliation procedures, separation of functions
   Risk Management Director, Audit Committee, and other             and other elements of control.
   relevant Directors as input in order to improve the Risk
   Management framework.                                            Risk Assessment
5. Improvements to the findings of internal and external audits
   monitored by the Internal Audit Division. The Internal Audit     Measurement of Risk was the identification of entities and
   Division informs audit findings that have yet to be followed     analysis of relevant risks to achieve their goals forming a
   up to the Board of Directors to take the necessary steps.        basis for discovering how risks should be managed. Bank Risk
6. The level of responsiveness to weaknesses and/or                 Assessment became a series of activities to identify, measure,
   deviations that occur against the applicable internal and        monitor and control risks. Risk Assessment was carried out on
   external regulations.                                            all types of risks inherent in the Bank’s processes / activities.


Purpose                                                             Bank-wide risk assessment was carried out by the risk
                                                                    management unit (SKMR) on a quarterly basis as outlined in the
1. Compliance with statutory provisions and regulations or          Bank’s risk profile report. The assessment covered all risks faced
   compliance objectives.                                           by the Bank which included credit risk, market risk, liquidity risk,
2. The objective of compliance was to ensure that all of the        operational risk, legal risk, reputation risk, strategic risk and
   Bank’s business activities were carried out in accordance        compliance risk.
   with the laws and regulations, both those issued by the
   government, FSA, Bank Indonesia as well as internal              Control Activities - Financial and Operational
   policies, regulations and procedures stipulated by the           Control
   Bank.
3. The availability of financial and management information         Controls were classified as policies and procedures related to
   that was complete, accurate, appropriate, and timely or          performance reviews, information processing, physical controls,
   information purposes.                                            and segregation of duties.
4. The purpose of information was intended to ensure the
   availability of complete, accurate, efficient, and timely        Reviewing the performance of Branches and Supporting
   reports required in order to make appropriate and                Branches compared to predetermined targets is routinely
   accountable decisions.                                           carried out every 4 (four) months by the Board of Directors,
5. Effectiveness and efficiency in the Bank’s business activities   which was carried out on August 3, 2023 and August 4, 2023
   or operational objectives.                                       (Review Cawu II 2023). This will encourage control activities at
6. Operational objectives were intended to increase the             Branches and Sub-Branch Offices, especially regarding control
   effectiveness and efficiency of the use of assets and other      of performance targets for Third Party Funds, Loans, Liquidity
   resources in order to protect the Bank from the risk of loss.    Ratios, Earning Assets Quality, Earnings, Effectiveness, and
7. Increasing the effectiveness of the risk culture in the Bank’s   Efficiency. However, in the event of a decline or failure to
   organization as a whole or the objectives of the risk culture.   achieve operational performance, the Board of Directors
8. The objective of risk culture was intended to identify           coordinates the areas that cause the decline in performance
   weaknesses and assess deviations early as well as to             by making action plans for future improvements and intensive
   continuously assess the reasonableness of existing policies      monitoring
   and procedures in the Bank.
                                                                    The Internal Audit Division also conducts an examination of the
Environment of Control                                              organizational structure at Branch Offices, Sub-Branch Offices,
                                                                    and Cash Offices based on sampling, which includes vacancies,
The control environment provided direction for the organization     segregation of duties, concurrent positions, and competence
and affected the controlling awareness of the people within the     of officers in carrying out operational activities during the
organization. Factors that influenced the control environment       General Audit.
were integrity and ethical values, commitment to competence,
the Board of Directors and the Audit Committee, management          Information System Control through TSI examination with
style and operating style, organizational structure, granting of    the scope of Information Technology (IT) Audit covering
authority and responsibility, HR practices and policies.            Management & Governance; Development & Operations
                                                                    Process and Security Management. In addition, as an




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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obligation to comply with regulatory authorities, thematic          In improving the effectiveness of controlling compliance with
examinations of the Indonesian National Standard ISO                laws and regulations, the Compliance Unit has carried out its
27001:2013 for Information Security Management System and           duties, among others, to improve the culture of compliance
ISO 20000:2018 for Core Banking System Service Management           in work units both offline and online, and to continuously
System, JConnet Internet Banking, JConnet Mobile Banking,           improve employee understanding on the applicable rules and
and JConnet SMS Banking of Bank Jatim are conducted. The            regulations, identify, measure, monitor, and control compliance
examination scope includes an assessment (gap analysis) of the      risk to minimize the occurrence of compliance risk by using an
Bank’s internal policies and procedures against the Indonesian      application that will be built through a web portal, as well as
National Standard ISO.                                              developing a compliance portal so that it can function effectively
                                                                    to support the performance of all work units. , as well as
Documentation Control, ensured that:                                integrating external requirements summary working papers on
a. Documentation of policies, procedures, systems,                  the compliance portal.
   accounting standards, and adequate audit trail processes
   that are easily accessible to all Bank Jatim employees           Information and Communication
   through the Compliance Portal.
b. Easy access to documentation if needed for examination           Information and Communication became the identification,
   purposes.                                                        capture and exchange of information in a form and time that
c. Adequate document accuracy and availability.                     enables people to carry out their responsibilities. Strengthen
                                                                    effective communication channels with systems enabled the
Separation of Functions                                             information and communication distribution immediately and
The separation of functions was intended so that everyone in        accurately to reinforce the understanding and implementation of
his position did not have the opportunity to commit and hide        internal control objectives, processes, and responsibilities involving
mistakes or deviations in the implementation of his duties. the     the Board of Commissioners, Management, related Divisions to
Branch organizational structure, the functions of credit analysis   employees, as designed to provide adequate assurance about
and business administration and legal officers have been            achievement the purpose of the Bank.
separated. The subordinate credit analysts report to the credit
supervisor, while the business administration and legal officers    In carrying out its functions, internal audit as a strategic partner
report to the Business Administration & Legal Supervisor.           for the Bank in achieving its activity objectives always provided
                                                                    Assurance and Consultations that provided added value to improve
Physical Asset Control                                              the Bank’s performance, internal audit had to be independent,
Examination ensured the implementation of physical                  objective, professional and had adequate compensation and had
safeguards for Branch assets including physical numbers,            the authority to gain access to information complete in carrying
records and regular checks between physical and records, safe       out its duties, because this would provide assurance to the Bank
placement of assets and arrangements for authorized officers        regarding the quality and effectiveness of internal control, risk
including credit collateral documents, for example cash checks,     management as well as governance processes and systems to
inventories, physical checks of credit collateral, marketable       protect the assets of the bank, the organization and the reputation
papers and fixed assets.                                            of the Bank.


Compliance With Other Laws and Regulations                          Monitoring Activities

Control of compliance with laws and regulations is generally        Monitoring activity was a process that determined the quality
carried out by the Compliance Unit. The Compliance Work             of internal control performance over time. Monitoring included
Unit must be independent and only responsible directly to the       determining the design and operation of controls in a timely
Director in Charge of the Compliance Function. The duties           manner and taking corrective action. To ensure the quality of
and responsibilities of the Compliance Unit include, among          internal control system sustainable and periodic has carried
others, identifying, measuring, monitoring, and controlling         out and the necessary improvements in the making aligned
Compliance Risk with reference to OJK regulations governing         with existing conditions, particularly by continuous monitoring
the implementation of risk management for commercial                (ongoing monitoring). Passive/off-site inspection mechanisms or
banks and OJK regulations governing the implementation              separate evaluation is centrally conducted by the Internal Audit
of risk management for Islamic commercial banks and sharia          Division Head Office with the observations, research, and analysis
business unit. In addition, the Compliance Unit also assesses       of bank functional activities and branch performance aims to
and evaluates the effectiveness, adequacy, and conformity of        obtain information in the shortest possible time and identifying
the Bank’s policies, provisions, systems and procedures with        Branch problems so it can take corrective action to the responsible
statutory provisions.                                               parties.




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                                                                                                       Annual Report 2023          451
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Compliance With The Committee of Sponsoring                         Evaluation of Implementation of Internal
Organizations of Tradeway Commission Internal                       Control System
Control Framework (COSO)
                                                                    The implementation of a reliable and effective internal control
1. Control environment. Control environment factors included        system became the responsibility of all parties involved in the
   ethical values and competence of people and entities,            Bank organization, among others, as follows:
   management philosophy and operating styles that prioritize       1. Board of Directors
   integrity and corporate values which are implemented                 The Board of Directors of the Bank was responsible for creating
   in management control as a reference as a standard of                and maintaining an effective internal control system as well as
   corporate behavior. The Board of Commissioners also                  ensuring that the system run safely and reliably in accordance
   monitors the evaluation of the implementation of internal            with the internal control objectives set by the Bank. Meanwhile,
   control made by internal auditors and external auditors              the Director in charge of compliance and risk management
   with the aim of ensuring that there are improvements to              functions had to play an active role in preventing irregularities
   bank problems that can reduce the effectiveness of internal          by establishing policies related to the principle of prudence and
   control. Management also strives to place individuals with           disseminating information to all employees.
   integrity, competence and effectiveness in their work (right     2. Board of Commissioners
   man in the right place).                                             The Board of Commissioners of the Bank was responsible
2. Measuring risk (risk assessment). Management identified,             for supervising the implementation of internal control in
   analyzed, and measured risks to ensure adequacy that the             general, including the Board of Directors’ policies that
   risks in a company were managed in accordance with the               stipulate such internal control.
   risk appetite relevant to the business and operations of the     3. Internal Audit Work Unit
   bank in order to achieve the specified business plan, by             The Internal Audit Unit had to be able to evaluate and play
   establishing risk identification and risk management criteria        an active role in improving the effectiveness of the Internal
   to produce reliable financial reports.                               Control System on an ongoing basis with regard to the
3. Control activities. Actions taken by management in the               implementation of Bank operations that had the potential
   context of internal control relating to the implementation           to cause losses in achieving the targets set by bank
   of bank operations, especially the implementation of                 management. In addition, Banks needed to pay attention
   risk management, implementation of Good Corporate                    to the implementation of an independent internal audit
   Governance in achieving the targets set by management,               through adequate reporting channels, and the expertise
   were sufficient, effective and safe. Mainly by taking steps,         of the internal auditors in particular on the practice and
   including evaluating or updating policies and procedures, as         application of risk assessment.
   well as evaluating the security of all business functions and    4. All Bank Officers and Employees
   applications and networks included in Business Continuity            Every bank officer and employee had to understand and
   Management.                                                          implement the internal control system established by
4. Information and communication. Strengthening effective               bank management. Effective internal control increased the
   lines of communication with a system that allowed the                responsibilities of bank officers and employees, promote
   distribution of information and communication quickly and            an adequate risk culture and compliance culture, and
   accurately to support the understanding and implementation           accelerate the identification process of unhealthy banking
   of internal control objectives, processes and responsibilities       practices and to the organization through an efficient early
   involving the Board of Commissioners, Management, related            detection system.
   divisions and employees, which were designed to provide          5. External parties
   adequate assurance about the achievement of company                  External parties of the bank included the Financial Services
   objectives.                                                          Authority, Bank Indonesia, external auditors, and bank
5. Monitoring. In order to ensure the quality of internal               customers with an interest in the implementation of a
   control in a sustainable and periodic manner and that the            reliable and effective SPI of a bank.
   necessary improvements had been made according to
   existing conditions, it was necessary to carry out continuous    Results of the Internal Control System Evaluation conducted by
   monitoring (on going monitoring). Monitoring in the first        the Board of Directors through a review, namely the Board of
   line of defense is in the form of an Internal Control System     Directors periodically (every quarter) reviews the operational
   attached to each risk taking unit, while monitoring carried      performance report of the Head of Work Unit (Branch Head)
   out on the second line of defense in the first line of defense   through this review, evaluates findings such as the problem
   had to be carried out proactively and continuously in each       of weakness in the Internal Control System, Financial Report
   risk taking unit.                                                Errors or other irregularities (fraud). The evaluation results show
                                                                    that the implementation of Bank Jatim’s internal control system
                                                                    during 2023 is quite adequate.




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Statement of the Board of Directors and/or                         while comprehensively managing capital. Within the ERM
the Board of Commissioners on the Adequacy                         framework, risks are managed in an integrated manner through
of the Internal Control System                                     aligning risk appetite with business strategies.


The Board of Commissioners and the Board of Directors provide      The primary objective of implementing ERM is to enable the
direction on the results of the audit report on the Adequacy       Bank to achieve its business targets and plans while adhering
of the Internal Control System that has been carried out by        to the principle of prudence, maintaining good financial
the Internal Audit Division by holding regular coordination        performance, and ensuring compliance with applicable
meetings regarding issues that are obstacles in the Bank’s         regulations. This is realized through the establishment of a
operations and achievement of bank performance including           strong risk culture that serves as the foundation for control
discussions regarding the findings of Internal Audit within a      mechanisms within the ERM framework. Additionally, the Bank
certain period. Board of Commissioners and Directors assess        prepares risk mitigation measures to align risk exposure with
that the internal control system is effective and adequate.        the predetermined risk appetite.


Risk Management                                                    The ERM framework refers to and aligns with the scope of risk
                                                                   management set by the Financial Services Authority, which
Risk Management is a controlling risk activity through the         includes, among other things:
process of identifying, measuring, evaluating and monitoring       1. Active oversight by the Board of Commissioners and
to a portfolio in estimating potential losses that might occur.        Directors.
Thus, the application of risk management was expected that         2. Adequacy of policies, procedures, and limit determinations.
the risks that had the potential to occur could be mitigated and   3. Adequacy of processes for risk identification, measurement,
minimized.                                                             monitoring, and control, as well as risk management
                                                                       information systems.
Risk Management Framework                                          4. Comprehensive internal control systems..


The implementation of Risk Management at Bank Jatim is             In simple terms, ERM encompasses a “top-down strategic”
conducted in line with the Enterprise Risk Management (ERM)        and “bottom-up tactical” risk management approach that
framework. This framework provides the basis for a proactive       complement each other. The main components within the ERM
and forward-looking risk management process to ensure the          framework are depicted in the following diagram:
achievement of a healthy and sustainable business growth




                                           BANK JATIM BUSINESS STRATEGY
                                                 AND OBJECTIVES

                                                              RISK
                                                                                                                        Information Technology


                                                            APPETITE
   Risk Culture




                                                 Risk Management Process

                   Identification            Measurement               Monitoring                 Control
                       Risk                      Risk                    Risk                      Risk


                                             Risk Management Infrastructure

                                                      Information Systems
                    Human Resources                                                   Policies & Procedures
                                                          Management




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1. Risk Culture                                                               approach allows the First Line of Defense to identify
   The Bank integrates risk management as an inseparable                      and assess key risks and controls, enabling them to
   part of its corporate culture and decision-making                          plan appropriate corrective actions to minimize existing
   processes. The Bank’s risk management philosophy is                        risk exposure.
   embedded in the Three Lines of Defense approach, where
   risks are managed during risk-taking activities. There is a            b. Risk Measurement
   clear division of responsibilities for risk ownership among               Risk measurement aims to gauge the Bank’s risk profile
   different departments in the Bank.                                        to obtain an effective overview of the implementation
2. Information Technology                                                    of risk management by understanding the magnitude
   The implementation of information technology in risk                      of risk in a product, portfolio, and activity, as well as its
   management during the digitization era plays a crucial role               impact on the Bank’s profitability and capital.
   in supporting the organization in the effective identification,        c. Risk Management and Control
   measurement, monitoring, and control of risks..                           Risk management and mitigation are integral parts
3. Human Resources                                                           of the bank’s business, aiming to reduce risks to a
   Having personnel with appropriate skills and expertise                    manageable level and within the limits of risk appetite.
   is key to ensuring that the ERM framework functions                    d. Monitoring and Reporting
   effectively.                                                              Risk monitoring aims to continuously evaluate risk
4. Management Information System                                             exposure and refine reporting processes when there
   An adequate Management Information System supports                        are changes in the Bank’s business activities, products,
   risk management activities. To enhance the effectiveness                  transactions, risk factors, information technology, and
   of risk measurement processes, the Bank must have                         risk management information systems that are material.
   an information system that provides accurate and                          These risks are monitored and reported periodically
   timely reports and data to support decision-making by                     to ensure they remain within the Bank’s risk appetite
   management and generate reports for risk monitoring.                      limits.
5. Policies and Procedures
   Ensuring the adequacy of policies and procedures serves            7. Risk Appetite
   as the foundation for a consistent viewpoint across all               Risk Appetite is the level of risk that the Bank’s management
   organizational units in the daily risk-taking activities.             is willing to take and accept in order to achieve strategic and
6. Risk Management Process                                               business objectives. Risk Appetite is dynamic and changes
   The objective of a good risk management process is to                 in accordance with shifts in the Bank’s business priorities,
   manage inherent risks in the Bank’s activities with the goal          risk management capabilities, and external conditions. The
   of providing sustainable added value to the entire Bank’s             purpose of the Risk Appetite framework is to ensure that
   operations. The risk management process is conducted as               the boundaries of acceptable risk-taking activities align
   part of daily activities with the aim of ensuring that risks are      with the Bnk’s business strategy and operational plans. It
   considered, evaluated, and responded to in a timely and               should be clear and detailed enough to serve as a guide
   appropriate manner.                                                   for senior management and frontline employees across all
   a. Identification and Risk Assessment                                 business units in their daily decision-making. The process
        To establish effective risk management, risks need               of establishing Risk Appetite is conducted periodically,
        to be clearly defined, proactively identified, and               typically on an annual basis.
        continuously assessed based on a forward-looking              8. Business Strategy and Objectives
        approach. Accurate identification and assessment of              For effective risk management implementation, the Bank’s
        risks focus on awareness and understanding of all major          management must develop an organizational structure that
        inherent risks in business activities or key risks that may      aligns with business goals, size, complexity, and inherent
        arise from external factors or uncertainties.                    risks. In managing risk management, a robust corporate
                                                                         governance structure is essential to enhance the four eyes
        The Bank conducts risk identification through the self-          principle and transparency throughout the risk management
        assessment of the Risk Profile at the PRC branch as              processes. This ensures the effectiveness and consistency of
        a Risk Control Self-Assessment tool. This structured             the ERM Framework implementation.




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Risk Management System                                                  type, considering the risk appetite and risk tolerance in
                                                                        accordance with the condition of the Bank and considering
Based on the Financial Services Authority Regulation Number             the impact of risk on capital adequacy to seek approval
18/ POJK.03/2016 dated March 16, 2016, concerning                       from Board of Commissioners.
Application of Risk Management for Commercial Banks                 4. Formulating, determining, and periodically updating
and Financial Services Authority Circular Letter Number                 procedures and tools to identify, measure, monitor and
34/SEOJK.03/2016 dated September 1, 2016, concerning                    control risks.
Application of Risk Management for Commercial Banks. Bank           5. Evaluating and/or updating policies, strategies, and Risk
Jatim Risk Governance Structure was developed based on the              Management framework at least 1 (once) a year, or when
Four Pillars of Risk Management Implementation, namely:                 there were significant changes in factors affecting the
                                                                        Bank’s business activities, risk exposure, and/or risk profile.
Active Supervision of The Board of Commissioners                    6. Establishing an organizational structure including clear
and Directors                                                           authorities and responsibilities at each level of position
                                                                        related to the implementation of Risk Management.
The Board of Commissioners and Directors grant the approval         7. Being responsible for implementing policies, strategies
as well as evaluate the risk policies and strategies actively and       and Risk Management framework approved by the Board
periodically. Conducted by the Board of Commissioners, the              of Commissioners and evaluating and providing direction
establishment of policies and strategies functions as a reference       based on reports submitted by the Company’s Risk
for the Board of Directors to conduct out the Company’s                 Management Division including reports on risk profiles.
objective and that has estimated risk tolerance and its impact      8. Ensuring that all material risks and impacts arising
on capital, informing and communicating the risk policies and           from these risks had been followed up and submit an
strategies and evaluating its implementation to all related work        accountability report to the Board of Commissioners
units.                                                                  periodically containing progress reports and material risk
                                                                        issues accompanied by corrective steps that had been,
The duties, responsibilities and authorities of the Board               were being, and would be carried out.
of Commissioners related to active supervision in Risk              9. Ensuring the implementation of follow-up corrections for
Management activities include, among others:                            problems or irregularities in the Bank’s business activities
1. Ensuring that the implementation of Risk Management was              discovered by the Internal Audit Division.
   adequate in accordance with the characteristics, complexity      10. Developing a Risk Management culture including risk
   and risk profile of the Bank.                                        awareness at all levels of the organization, including
2. Having a good understanding of the types and levels of risk          adequate communication to all levels of the organization
   inherent in the Bank’s business activities.                          regarding the importance of effective internal control as
3. Approving the Risk Management policy including the Risk              evidenced in:
   Management strategy and framework that was determined                a. Minutes document attached with attendance list of
   in accordance with the Bank’s risk appetite and risk                     meeting participants, if communicated through the
   tolerance.                                                               meeting forum;
4. Evaluating Risk Management policies and Risk Management              b. Paper documents/handouts or other materials if
   Strategies at least 1 (once) a year or more frequently when              communicated through education and training forums,
   things occured that could significantly affect the Bank’s                accompanied by a list of attendees.
   business activities.                                             11. Ensuring adequate financial support and infrastructure to
5. Evaluating the accountability of the Board of Directors and          manage and control risks.
   provide direction for improvement on the implementation          12. Ensuring that the Risk Management function had been
   of Risk Management policies on a regular basis to ensure             implemented independently by means of a separation
   that the Board of Directors manages the Bank’s activities            of functions (four eyes principle) between the Company’s
   and risks effectively.                                               Risk Management Division which identified, measured,
                                                                        monitored and controlled risks with the Internal Audit
The duties, responsibilities and authorities of the Board of            Division and the risk taker unit.
Directors related to Risk Management activities include:
1. Ensuring that the implementation of Risk Management was          Adequacy of Policies and Procedures and Risk Limit
    adequate in accordance with the characteristics, complexity     Determination
    and risk profile of the Bank.
2. Having a good understanding of the types and levels of risk      Bank Jatim already had a Risk Management Policy which served
    inherent in the Bank’s business activities.                     as the main guideline in implementing risk management. For
3. Formulating and establishing a written and comprehensive         more specific business areas, Bank Jatim had more specific
    Risk Management policy, strategy and framework including        policies and procedures, for example in the fields of credit,
    determination of risk limits as a whole and per risk            treasury, and operations. These policies and procedures




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regulated the determination of limits for each activity, both              b. The risk measurement system can measure:
at the portfolio and transactional levels. The determination                   - The sensitivity of the product / activity to changes
of these limits consisted of overall limits (exposure limits),                      in the factors that influence it, both under normal
individual limits , counterparty limits, limits per type of risk and                and abnormal conditions.
limits per certain functional activity with risk exposure.                     - The trend of changes in these factors is based on
                                                                                    past fluctuations and their correlation.
Adequacy of Risk Identification, Measurement,                                  - Individual risk factors.
Monitoring and Control Processes and Risk                                      - Overall risk exposure as well as per Risk, taking into
Management Systems                                                                  account the relationship between Risks.
                                                                               - All risks inherent in all transactions and Bank
Bank Jatim run the Identification, Measurement, Monitoring                          products, including new products and activities,
and Risk Control Process, as well as a Risk Management System                       and can be integrated into the Bank’s management
through an Enterprise Risk Management (ERM) framework. Risk                         information system.
control policy guidelines provided an adequate reference for               c. The risk measurement method was carried out
the identification and measurement process of risk. In measuring               quantitatively and/or qualitatively according to the
the risk profile of each Bank activity, at the initial stage the               characteristics and complexity of business activities. The
Bank identified risks by recognizing and understanding all                     measurement methods were in the form of methods
inherent risks. After the risk identification was carried out, the             stipulated by the Financial Services Authority in the
measurement and risk monitoring was then carried out. This                     framework of risk assessment and capital calculation as
risk measurement was intended so that the Bank was able to                     well as methods that were developed by the Bank itself.
calculate the risk exposure inherent in each activity so that the          d. The Risk measurement system was evaluated and refined
impact on the Bank’s performance could be estimated.                           periodically or from time to time as necessary to ensure
                                                                               the suitability of assumptions, accuracy, fairness and data
Periodically evaluating risk exposures, especially those that                  integrity, as well as the procedures used to measure Risk.
were material in nature and or that had an impact on the                   e. Stress tests were carried out to complement the risk
Bank’s performance. The results of monitoring, which included                  measurement system by estimating the Bank’s potential
evaluation of risk exposures, were reported in a timely, accurate              losses in abnormal market conditions using certain
and informative manner which would be used to make                             scenarios in order to see the sensitivity of the Bank’s
decisions, including the necessary follow-up actions to monitor                performance to changes in risk factors and to identify
risks.                                                                         influences that had a significant impact on the Bank’s
1. Risk Identification                                                         portfolio.
     Proactive risk identification covered all business activities of      f. The Bank performed stress testing periodically and
     the Bank and was carried out in order to analyze the sources              reviews the stress testing results and takes appropriate
     and likelihood of risks and their impacts. Risk identification            steps if the predicted conditions that would occur exceed
     was carried out periodically by using a method or system                  an acceptable tolerance level. The results were used as
     to identify risks in all products and business activities of the          input when setting or changing policies and limits.
     Bank.                                                              3. Risk Monitoring
                                                                           a. The Bank had a monitoring system and procedure which
   The risk identification process was carried out by analyzing                included monitoring the amount of risk exposure, risk
   all risk sources that were at least carried out on the risks                tolerance, internal limit compliance, and the results of
   from the Bank’s products and activities and ensuring                        stress testing as well as the consistency of implementation
   that the risks from new products and activities had gone                    with established policies and procedures.
   through a proper Risk Management process before being                   b. Monitoring was carried out both by the risk taker unit
   introduced or implemented.                                                  and by the Company’s Risk Management Division.
2. Risk Measurement                                                        c. Monitoring results were presented in periodic reports
   a. The risk measurement system was used to measure                          submitted to Management in the context of risk
        the Bank’s risk exposure as a reference for exercising                 mitigation and the necessary actions.
        control. Risk measurement was carried out regularly                d. The Bank prepared an effective back-up system and
        for both products and portfolios as well as for all Bank               procedures to prevent disruptions in the risk monitoring
        business activities.                                                   process, and conducts regular checks and reassessments
                                                                               of the back-up system.




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4. Risk Control                                                         j.   The Bank administers and updates system
   a. The Bank had an adequate risk control system by                        documentation, which includes hardware, software,
       referring to the established policies and procedures.                 database (database), parameters, process stages,
   b. The risk control process implemented by the Bank was                   assumptions used, data sources, and resulting outputs
       adjusted to the risk exposure as well as the level of risk            to facilitate inherent control and implementation of
       to be taken and risk tolerance. Risk control was carried              audit trails.
       out by the Bank, among others by means of hedging
       mechanisms, and other risk mitigation methods such           Internal Controling System
       as issuing guarantees, asset securitization and credit
       derivatives, as well as increasing Bank capital to absorb    The Internal Control System (SPI) became a supervisory
       potential losses.                                            mechanism established by the management of Bank Jatim on
5. Risk Management System                                           an ongoing basis. Effective SPI was an important component
   a. The Risk Management System is part of the management          in management and forms the basis for sound and safe
       information system owned and developed by the needs          operational activities of the Bank. The effective implementation
       of the Bank to implement effective risk management.          of the internal control system could assist the Bank’s
   b. As part of the risk management process, a risk                management in safeguarding the Bank’s assets, improving the
       management system is used to support the                     Bank’s compliance with the prevailing laws and regulations, and
       implementation of risk identification, measurement,          reducing the occurrence of losses, deviations and violations of
       monitoring, and control processes.                           prudential aspects.
   c. The Risk Management System and the resulting
       information are adapted to the characteristics and           The implementation of a reliable and effective internal control
       complexity of the Bank’s business activities and are         system of the Bank was the responsibility of all risk taker units,
       adaptive to changes.                                         support units, and the Internal Audit Division. The internal
   d. The adequacy of the scope of information generated            control system for risk refers to the overall internal control
       from the risk management system is reviewed                  system which included:
       periodically to ensure that the coverage is adequate         1. The Bank implemented the internal control system
       by developments in the level of complexity of business           effectively in the application of Risk Management by
       activities.                                                      referring to the established policies and procedures. The
   e. As part of the risk management system, risk profile               application of the four eyes principle had been adequate
       reports are prepared periodically by the risk                    and consistently implemented.
       management division, independent of the work units           2. Comprehensive internal control system in the application
       conducting business activities. The frequency of                 of Risk Management
       submitting reports to the relevant Directors and the         3. Implementation of a review of the implementation of Risk
       Risk Management Committee is increased as needed,                Management.
       significantly when market conditions change rapidly.         4. The results of the review assessment by the Company’s
   f. The Risk Management System supports reporting to                  Risk Management Division were submitted to the Board
       the Financial Services Authority.                                of Commissioners, Internal Audit Division, Compliance
   g. In developing new information system technology and               and Risk Management Director, Audit Committee, and
       software, the Bank ensures that implementing the new             other relevant Directors as input in improving the Risk
       information system and technology will maintain the              Management framework.
       continuity of the Bank’s information system.                 5. Improvements to the results of internal and external audit
   h. If the Bank decides to outsource workers in software              findings monitored by the Internal Audit Division. The audit
       development and system improvement, the Bank                     findings that have not been followed up are informed by
       ensures that the decision to appoint a third party               the Internal Audit Division to the Board of Directors to take
       is carried out objectively and independently. The                the necessary steps.
       outsourcing agreement/contract includes clauses              6. The level of responsiveness to weaknesses and / or
       regarding maintenance and updating as well as                    deviations that occured against applicable internal and
       anticipatory steps to prevent disruptions that may               external regulations.
       occur in its operations.
   i. Prior to implementing the new management information
       system, the Bank conducts tests to ensure that the
       processes and resulting outputs have gone through
       an effective and accurate development, testing,
       and reassessment process, and the Bank ensures
       that the system can access historical accounting and
       management data/ the new software is acceptable.




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Risk Profile and Management                                           Credit Risk Mitigation
                                                                      The invented mitigation effort towards credit risk potential
The risks inherent in the Bank Jatim Business aligned with            losses is: Advancing the knowledge of Credit Analysts in the
the provisions of the Financial Services Authority stipulated         credit field aims to be more professional and master their
eight risks includes Credit Risk, Market Risk, Liquidity Risk,        duties, improving systems and procedures in the credit field,
Operational Risk, Legal Risk, Strategic Risk, Compliance Risk,        fostering and monitoring credit realization, more intensive
and Reputation Risk. A better description of each risk as follows     collection efforts for ‘The Special Case customers’ to prevent
                                                                      collectability deterioration, increase the supervision credit
Credit Risk                                                           function, implement the principle of Prudential Banking in
                                                                      credit expansion, supervise existing systems and procedures,
Based on OJK Regulation Number 18/POJK.03/2016, credit                as well as accurate and excellent Counterparty analyze.
risk is defined as the risk that occurs due to the failure of other
parties to fulfill their obligations, including credit risk due to    Market Risk
debtor failure, credit concentration risk, counterparty credit
risk, and settlement risk. The management of credit risk at           Market risk is the risk on balance sheet positions and
Bank Jatim until December 2023 has been optimally pursued,            administrative accounts, including derivative transactions, due
as reflected in the credit risk profile rating in December 2023,      to overall changes in market conditions, including the risk of
which was Moderate As for the quality of the implementation           changes in option prices. Market risk management aims to
of credit risk management related to the active supervision           minimize the possibility of negative impact due to changes
of the Board of Commissioners and the Board of Directors, it          in market conditions on the Bank’s capital assets. By the
has been running according to its function so that the general        regulations of the Financial Services Authority, Bank Jatim’s
assessment of the quality of the implementation of credit risk        market risk management, as reflected in the market risk profile
management is Fair so that the composite rating for credit risk       assessment rating in December 2023, is Low to Moderate for
is rating 3.                                                          inherent risk and Satisfactory for the quality of risk management
                                                                      implementation so that a composite rating is obtained, namely
From a policy standpoint, Bank Jatim constantly reviews and           rating 2.
updates the limits on the provision of funds following business
and organizational developments. In the process of limiting           Potential Risks
the provision of funds following business and organizational          Potential losses arising from market risk might occur on the
developments. The Risk Management Division provides reviews           following matters, such as the change of Bank interest rates
and determines the level of risk in determining transaction           impact on the Bank portfolio (Gap ratio Rate Sensitive Asset
facilities (Counterparty Limits), as well as regular monitoring of    & Rate Sensitive Liability portfolio), fluctuating exchange rates
Risk Appetite and Credit Risk Limits. In terms of strengthening       changes arise for foreign currency leads Bank to suffer losses,
credit risk management, the bank has also established a Credit        changes in prices of the Bank’s portfolio, changes in rating or
Risk unit/Division that concentrates explicitly on credit.            obligor’s financial performance means the bank’s portfolio value
                                                                      decline (for securities or bonds), inefficient market conditions
Potential Risks                                                       affected the accuracy of valuation in the financial transactions
Potential Risks to the Bank’s lending activities may arise due        inducing current financial losses (both in the capital and
to Human Resources in the credit sector having inadequate             stock market), as well as other losses associated with political
knowledge, inadequate internal credit processes, in-depth and         deterioration.
inaccurate credit analysis, funding in high-risk sectors, credit
concentration, and on placement activities. or buying securities      Market Risk Mitigation
from companies that are considered less bona fide, causing            The undertaken mitigation efforts made against potential losses
default and causing bank losses due to having to establish            on market risk, among others are: the application of floating
CKPN, reducing profits due to write-off credits, costs arising        interest rates, monitor of Net Open Position aligned with
from the credit settlement process (billing fees, legal process,      regulatory provisions, an excellent and accurate counterparty
auction process), and also resources that must be allocated for       analysis, counterparty ratings consideration, determinate and
collection and restructuring of credit. In addition to losses on      monitor of dealer limits, stop loss & cut loss, monitor over off
credit, it can also result from failure in the settlement process.    Market transactions, good provision of historical and data of
                                                                      potential market, application of technical and fundamental
                                                                      analysis on transactions exposed to market risk, also the IRRBB
                                                                      Limit on Assets and Liabilities implementation sensitive to
                                                                      interest rates changes (Risk Sensitive Assets and Risk Sensitive
                                                                      Liabilities).




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Liquidity Risk                                                        Operational Risk

Liquidity risk results from the Bank’s inability to meet its          Operational risk is defined as the arising losses risk due to
maturing obligations from cash flow funding sources and/or            insufficient and or non-functioning internal processes, human
high-quality liquid assets that can be pledged as collateral          errors, system failures, and or the presence of external parties
without disrupting the Bank’s activities and financial condition.     affect in the operation of Bank Jatim. Operational risk was
Bank Jatim’s liquidity risk management, as reflected in the           inherent in every product / activity / bank operational process.
liquidity risk profile assessment in December 2023, is Low to         In measuring operational risk, Bank Jatim calculated capital
Moderate for inherent risk and Satisfactory for the quality of risk   requirements for operational risk using a basic indicator
management implementation so that a composite rating of 2 is          approach. Operational risk is a crucial risk category, considering
obtained for liquidity risk.                                          that the growing business model and products, banking
                                                                      services of Bank Jatim, become more complex and diverse in
Potential Risks                                                       the future. To manage functional banking activities, products or
Potential losses arising from liquidity risk can occur on the         services optimally, the effective operational risk management
following matters: a large-scale withdrawal in behavior outside       implementation has been carried out. Furthermore, the
work, a rush of external factors, funding for stagnant ThirdParty     internal audit unit evaluates the risk management policies
Funds, installment under-performing payments credit debtors,          implementation and procedures in each of the operational
unfavorable liquidity & maturity profile gap, which leads a           banking activities.
tendency towards the provision of expensive, limited funds or
reduced potential for credit expansion, or more broader impact        The approach used in managing operational risk is through the
of bank losses, arising from reputational risk.                       determination of the most appropriate mitigation strategies to
                                                                      obtain an optimal balance between operational risk exposure,
Liquidity Risk Mitigation                                             the effectiveness of the control mechanism and the level
The undertaken mitigation effort of potential losses on liquidity     of risk that has been received by the Bank. Operational risk
risk is to anticipate and monitor funds withdrawals that have         management was supported by the involvement of:
been made by customers in withdrawals form through bank               1. Risk Management Committee
clearance and cash withdrawals through incoming funds both                The Board of Directors carried out the functions of
in incoming transfers and customer cash deposits (customer                supervision, control and risk management, including the
behavior). Bank Jatim has conducted liquidity banking                     establishment of risk management strategies, setting risk
sensitivity analyze to the largest ever withdrawal scenario,              limits, business limits and operational limits and monitoring
covers increasing access to funding sources, increasing and               risk profiles.
maintaining the stability of Third Party Funds. Bank Jatim has        2. Operational Risk Management Unit
maintained primary and secondary reserves as well as arranged             Operational risk management work unit that was
detailed cash flow projections in rupiah against interest                 responsible for formulating policies and operational risk
rate fluctuations. On top of that, Bank Jatim has conducted               management work tools.
a management gap to avoid or minimize interest rates                  3. Risk Taking Unit
fluctuations to actualize stable and growing profits. Bank Jatim          The work unit was fully responsible for managing operational
also continue to increase the number of good counterparties               risk and ensures that controls in each operational activity
and establish long-term positive relations, particularly in               were carried out effectively and in accordance with
the liquidity provision field which develops various forms of             regulations.
Contingency Funding Plans constantly in both normal and crisis        4. Compliance work unit
situations.                                                               Work units that carried out compliance functions with
                                                                          internal and external regulations.
                                                                      5. Internal Audit Unit
                                                                          Work units that implemented the effectiveness of internal
                                                                          controls on Bank activities.


                                                                      Until December 2023, Bank Jatim’s operational risk
                                                                      management, as reflected in the operational risk profile
                                                                      assessment, is Moderate for inherent risk and Fair for the
                                                                      quality of risk management implementation so that a composite
                                                                      rating of 3 is obtained for operational risk.




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Potential Risks                                                         Legal Risk Mitigation
With the presence of operational risk exposures, other risk             By reviewing juridical studies on all possibly arising legal
exposures can also increase including credit risk, market               issues (between the guarantor and its parties) to minimize the
risk, liquidity risk, legal risk, liquidity risk, strategic risk, and   demands, among others:
reputation risk, which possibly result in potential financial           1. Completeness of document fulfillment and Bank Guarantee
and nonfinancial losses. Another impact of operational risk is              requirements.
Soundness Level Rating decline leads banks unable to conduct            2. Bank Guarantee realization procedure
business activities and the expansion of new bank office and            3. Related to the contract/agreement contained in the Bank
under the status of incentive supervision from regulators.                  Guarantee File.


Operational Risk Mitigation                                             Strategic Risk
To mitigate operational risk, Bank Jatim establish Lost Event
Database application which connected to all work units, so a            Strategic Risk is the risk due to inaccuracy in making and/ or
work unit can input risk events that occur in no time using online      implementing a strategic decision and failure to anticipate
platform through web-based media. As a follow-up step, the              changes in the business environment. Strategic risk identification
collective data will be analyzed and mitigated against the risk         is based on strategic risk factors in certain functional activities,
event. The Bank is also committed to improving the quality and          such as credit, treasury and investment activities as well as
process of internal control, the Human Resources qualification          operations and services through a business plan prepared by
through various trainings, certifications and seminars, and banking     the Strategic Planning & Performance Management Division as
services through infrastructure improvements required, while            a translation of the General Policy of Board of Directors.
ensuring that Bank Jatim has adequate operational risk mitigation
policies and procedures obligate to comply with and conduct out         Strategic risk measurement and measurement parameters are
by every operational work unit with accomplished transactions and       based on the Bank’s performance by comparing the expected
activities accurately, efficiently and on scheduled. The Bank also      results with actual results, evaluating work unit performance,
has Operational Risk Management Implementation procedures,              and checking progress against the set targets. Strategic risk
Business Continuity Management (BCM) and carries out a Risk             monitoring is carried out by conducting quarterly reviews for
Assessment (RA) process to measure potential disruptions/               each division and quarterly reviews for each branch office. As
disasters that threaten the bank’s sustainability so as to minimize     of December 2023, Bank Jatim’s strategic risk management,
the Bank’s potential risks.                                             which is reflected in the strategic risk profile assessment, is
                                                                        rated Low to Moderate for inherent risk and Fair for the quality
Legal Risk                                                              of risk management implementation so that a composite rating
                                                                        of 2 is obtained for strategic risk.
The Bank carries out legal risk identification based on risk
factors, including lawsuits and weaknesses in juridical aspects         Potential Risks
arising from any contracts and agreements related to products           Potential risks that may occur include:
and services. As of December 2023, Bank Jatim’s legal risk              1. There was an error in the decision-making/determination of
management is reflected in the legal risk profile assessment,              the business strategy, causing the income earned to be not
which has Low to Moderate rating for inherent risk and Fair                optimal to the costs incurred
for the quality of risk management implementation so that a             2. Launching a new product without conducting a Feasibility
composite rating of 2 is obtained for legal risk.                          Study to analyze the plan for implementing the new
                                                                           product to prevent potential failure so that product sales
Potential Risks                                                            targets cannot be optimal.
Potential risks from legal risk, namely the existence of lawsuits       3. The launch of a new product must have an in-principle
as a result of weaknesses in legal or juridical aspects or the             permit, if it is not implemented, the product will not be
absence of supporting laws and regulations, resulting in                   able to run, so it will lose the opportunity to raise third-
financial and non-financial losses such as:                                party funds.
1. Expenditures for the incurring of compensation from the
    Customer.                                                           Strategic Risk Mitigation
2. Imposition of fines/sanctions for the occurrence of lawsuits.        Prepare and determine Bank business strategy by conducting a
3. Loss of Credit Guarantee.                                            comprehensive analysis of studies, risk control, and Feasibility
4. Claim Bank Guarantee
5. Delayed Auction Guarantee (which can affect NPL).




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Study which cover analysis of Cost and benefits. If there is a         Compliance Risk Mitigation
new program or product, then at least                                  To minimize compliance risk, Bank Jatim evaluate compliance
1. A new product or program has been included in the Bank              with internal and external provisions both from Bank Indonesia,
    business plan.                                                     the Financial Services Authority and other applicable
2. There is a principle permit for the launching of its product.       regulations. Besides that, the bank also analyzes event which
3. Perform the act based on the applicable Service Level               possibly inducing compliance risk by:
    Agreement and provide information regarding the costs and          1. Provide new products and new internal regulations risk
    potential; awaiting risks to the Debtor or the Customer in             assessment before granted approval by the board of
    case of credit realization, launch new products and monitor            directors.
    the total credit result from the set targets. Furthermore, if      2. Perform compliance checklists for certain operational
    the launching program went downhill, review the obstacle               activities.
    that might occur and provide a solution so that the business       3. Review internal regulations.
    plan still working onscheduled is necessary.                       4. Disseminate external regulations to the division and branch
                                                                           offices.
Compliance Risk
                                                                       Reputation Risk
Compliance Risk is a risk due to the Bank of does not comply
with and or implement the applicable laws and regulations. In          Reputation risk is a risk due facing the stakeholder trust gap
identifying compliance risk, the compliance division arranges a list   originating from various activities including events that can
of regulations applied to all work units has been adjusted to the      bring harm the reputation of the Bank (e.g. negative report
provisions of the Regulator as well as other applicable external       in the mass media, violations of business ethics and customer
parties.                                                               complaints) and other matters inducing reputational risks such
                                                                       as weakened corporate governance, corporate culture and
Compliance risk measurement has carried out to measure                 business banking practices.
potential losses caused by non compliance and the inability of
the Bank to comply with applicable regulations. The compliance         The transformation of Bank Jatim become into a public bank,
risk amount is estimated based on the Bank’s ability to fulfill        successfully identifies factors inherent risk in an openness
all regulations in the past and future. Those activities include       functional activities which include customer complaints about
reviewing internal and external audit findings has not yet been        its services, employees behavior in serving customers and
resolved and the frequency measurement as well as the nominal          conducted communication systems by the Bank.
penalties. Compliance Director & Human Capital assisted by the
Compliance & Governance Division regularly reviewing aspects of        The reputation risk measurement for December 2023 has a
compliance, especially suspicious or unnatural transactions.           Low to Moderate rating for the inherent risk. While efforts to
                                                                       implement reputation risk management itself have a Satisfactory
As of December 2023, Bank Jatim’s compliance risk management,          predicate by making efforts to improve the Bank’s reputation so
as reflected in the compliance risk profile assessment, is rated       that a composite rating of 2 is obtained.
Low to Moderate for inherent risk and Fair for the quality of risk
management implementation so that a composite rating of 2 is           Efforts to control reputation risk carried out by Bank Jatim
obtained for compliance risk.                                          through the Corporate Secretary are responsible for
                                                                       implementing policies related to handling and resolving
Potential Risks                                                        negative news or avoiding counter-productive information
Bank non-compliance with regulatory regulations and other              and carrying out public service functions in the framework of
internal regulations of the Bank may be subject to administrative      corporate social responsibility (Corporate Social Responsibility/
sanctions in the form of:                                              CSR). Bank Jatim’s Corporate Social Responsibility activities are
1. Written warning.                                                    carried out continuously and focus on 4 (four) aspects, including
2. Sanctions for the obligation to pay fines.                          aspects of education and banking education, culture, health,
3. Decrease rating of the Bank’s soundness.                            and social aspects, including repair of Uninhabitable Houses
4. Prohibition of opening office networks.                             (RTLH). In addition, the Bank continuously improves the bank’s
5. Freezing of certain businesses.                                     internal policies related to customer complaints and customer
6. The inclusion of management members, bank employees,                service in order to minimize the potential for a decline in the
    and or shareholders in the list of parties was predicated of       Bank’s reputation.
    not passing the fit and proper test or in the administrative
    records as stipulated in the provisions of the Financial           Potential Risks
    Services Authority.                                                Reputation risk is perceivable from several indicators including:
7. Dismissal of Bank management.                                       1. Violations of business ethics, the reporting quality of a
                                                                          Bank and customer complaints. The parameters of violation




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023       461
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   of business ethics come from various transparency of             maintain customer satisfaction by regularly evaluating levels of
   financial information criteria, human resources, marketing       service that has been carried out by the frontline in each branch
   of products and services, business cooperation with other        office.
   stakeholders that holds potential reputation risk suffer
   losses.                                                          At least every customer complaint can be resolved as soon as
2. Addressing the driving force of Bank success is a competent      possible, by informing customers so they don’t make complaints
   human resource, means quality service to the customers           via social media.
   involves qualified human resources. An unqualified human
   resource will bring potential reputation risk losses to the      Risk Evaluation Process
   customer, therefore, customer service should align with the
   applicable provisions of Service Standardize.                    The Bank’s Risk Management Division prepares Risk Evaluation
3. The most crucial potential losses are negative reporting in      Reports on a periodic basis, i.e. quarterly, and submits these
   the mass media where the customer already recognized             reports to various levels of management including to the Board
   it and poor customer service while handling complaints           of Commissioners, as well as to related external parties such
   whose experience the problems at Bank Jatim.                     as the Financial Services Authority. In addition, the Bank’s Risk
                                                                    Management Division has coordinated with the Internal Audit
Reputation Risk Mitigation                                          Division to discuss audit findings as material for evaluating risks
Always maintain the Bank credibility in front of shareholders and   and minimizing risks that occur. The findings are submitted
stakeholders, being responsive in responding complaint and          to the Company’s Risk Management Division for mitigation in
negative news, comply with applicable regulations and always        accordance with 8 (eight) risks and solutions are given.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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Effort to Manage Risk                                               Risk Assessment

As a bank that had a vision to encourage regional economic          Following OJK Regulation No. 18/POJK.03/2016 concerning
growth and participate in developing small and medium               Implementation of Risk Management for Commercial Banks,
enterprises that focused on providing credit to the MSME            article 23 regulates the obligation of Banks to submit Bank Risk
sector, it was strongly influenced by changes in the business       Profile Reports to OJK every 3 (three) months (quarterly).
climate such as inflation and competition with foreign products.
Thus, the increasing number of foreign products that entered        Based on OJK Circular No. 34/SEOJK.03/2016 dated September
Indonesia as a result of the free trade that Indonesia followed.    1, 2016 concerning the Implementation of Risk Management for
Efforts to minimize these negative impacts are carried out risk     Commercial Banks, the risk rating for Conventional Commercial
management based on the principle of prudence to ensure the         Banks is categorized into 5 (five) ratings, namely 1 (low), 2 (low
growth of a healthy and sustainable performance of the Bank.        to moderate), 3 (moderate), 4 (moderate to high) and 5 (high)
                                                                    for the level of inherent risk, while the rating for the quality
Risk management as an integral part of business growth and          of implementation of risk management is categorized into five
daily business activities of the Bank is carried out in various     ratings, namely 1 (strong), 2 (satisfactory), 3 (fair), 4 (marginal)
ways, among others:                                                 and 5 (unsatisfactory).
1. Presenting a risk perspective opinion on each new banking
    activities and products, along with a service banking           The results of the Bank’s risk profile self-assessment as of
    network expansion.                                              December 2023 were ranked 2 (PK-2) with an inherently Low
2. Continuously improve operational policies and procedures,        to Moderate risk rating and a Quality of Risk Management
    while adjusted risk tolerance limits to ensure its optimal      Implementation (KPMR) rating, namely Satsifactory.
    balance between asset quality and business profitability
3. Maintain the risk management implementation aligned
    with macroeconomics changes and the development of
    Bank Jatim business.




                                                                            Quality of Application of Risk
                  Type of Risk                      Inherent Risk                                                Composite Rating
                                                                                    Management

 Credit Risk                             Moderate                          Fair                                            3

 Market Risk                             Low to Moderate                   Satisfactory                                    2

 Liquidity Risk                          Low to Moderate                   Fair                                            2

 Operational Risk                        Moderate                          Fair                                            3

 Legal Risk                              Low to Moderate                   Fair                                            2

 Strategic Risk                          Low to Moderate                   Satisfactory                                    2

 Compliance Risk                         Low to Moderate                   Fair                                            2

 Reputation Risk                         Low to Moderate                   Satisfactory                                    2

 Composite Rating                        Low to Moderate                   Satisfactory                                    2


Review of The Effectiveness of The Risk Management System

The Bank constantly evaluates the effectiveness of the risk         role in evaluating the risk management system by reviewing
management system. The evaluation includes adjusting the            the results carried out by the Board of Directors as the organ
strategy and risk framework as part of the risk management          responsible for the effectiveness of the risk management system
policy, the adequacy of the information system, and the             implementation. The evaluation results show that implementing
adequacy of identifying, measuring, monitoring, and controlling     Bank Jatim’s risk management during 2022 is quite adequate.
risks.                                                              Evaluation of the implementation of risk management is carried
                                                                    out periodically. The evaluation results are then conveyed to
One form of evaluation of the risk management policy is             various levels of management as well as to related external
the evaluation of the Risk Management Policy and Standard           parties such as the Financial Services Authority.
Procedures. The Board of Commissioners plays an active




                                                                                  PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                         Annual Report 2023       463
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Statement of The Board of Directors and/                                    a. Determination of the use of measurement methods
or The Board of Commissioners or The Risk                                       and Risk Management information systems.
Monitoring Committee on The Adequacy of                                     b. Determination and determination of Risk limit.
The Risk Management System                                                  c. Determination of Risk rating
                                                                            d. Preparation of contingency plans in the worst case
The Board of Commissioners through the Risk Monitoring                          scenario
Committee assessed that the adequacy of risk management                     e. Determination of the internal control system in the
was effective and adequate as reflected in:                                     application of Risk Management.
1. Adequacy of Risk Management policies and procedures as                2. Adequacy of risk identification, measurement, monitoring
   well as determination of effective Risk limits which include,            and control processes, and an adequate Risk Management
   among others:                                                            Information System.




Compliance Function

Organizational Structure

                                                                   VP of Compliance & AML-CFT




                 AVP Compliance &
                                                                              AVP AML-CFT
                   Governance




   Governance Group        Compliance Research and                                            Grup Know                     Group
                                                         AML-CFT Analyst Group
   and Business Ethics       Development Group                                           Your Customer (KYC)          Regulatory Licensing




The establishment of the Compliance Unit by the Director in charge of Compliance is regulated in the Financial Services Authority
Regulation Number 46/POJK.03/2017 concerning the Implementation of the Compliance Function of Commercial Banks. The
Compliance Unit must be independent and only report directly to Director in charge of Compliance Function.



Profile of Vice President Compliance and AML-CFT


                                              Putu Denny H.

                                              Vice President Compliance and AML CFT


                                              Domicile                    :   Surabaya

                                              Place and Date of Birth/    :   Denpasar, June 28, 1977/Age 46 years as of December 2023
                                              Age

                                              Educational background      :   S1 Informatics Engineering Surabaya College of Engineering
                                                                              (2001)

                                              Certification               :   Level-4 Risk Management Certification

                                              Work experience             :   • Head of Product Development & Services Fund Policy
                                                                                Subdivision (2018)
                                                                              • Head of Main Branch Operations (2022)
                                                                              • Acting Vice President of Compliance & APU PPT

                                              Legal Basis of              :   Decree No. 062/055/DIR/HCP/KEP dated June 5, 2023
                                              Appointment




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Duties and Responsibilities of Compliance                                    Banks at least includes to:
Functions                                                                    1. Make steps to support the creation of a Compliance
                                                                                Culture in all Bank business activities at every level of the
In accordance with OJK Regulation No. 46/POJK.03/2017                           organization.
concerning Implementation of Compliance Function for                         2. Identify, measure, monitor and control Compliance
Commercial Banks, explained that the Compliance Function                        Risk by referring to the FSA regulations governing the
includes actions for:                                                           implementation of risk management for commercial banks
1. Realizing the implementation of Compliance culture at all                    and FSA regulations governing the implementation of
    levels of the Bank’s organization and business activities.                  risk management for sharia commercial banks and sharia
2. Managing compliance risks faced by the BankEnsuring                          business units.
    Bank Compliance with commitments                                         3. Assess and evaluate the effectiveness, adequacy and
3. Ensure that the policies, regulations, systems and                           suitability of the Bank’s policies, regulations, systems and
    procedures as well as business activities carried out by                    procedures with statutory provisions.
    the Bank are in accordance with the provisions of the                    4. Review and/or recommend updating and refinement of
    Financial Services Authority and the provisions of laws                     policies, regulations, systems and procedures that are
    and regulations, including the Sharia Principles for Islamic                owned by the Bank to comply with FSA regulations and
    commercial banks and sharia business units.                                 statutory provisions, including the Sharia Principles for
4. Ensuring Bank Compliance with commitments made by the                        Islamic commercial banks and sharia business units.
    Bank to the Financial Services Authority/Bank Indonesia                  5. Make efforts to ensure that the policies, regulations,
    and/ or other authorized supervisory authorities.                           systems and procedures, as well as the Bank’s business
                                                                                activities are in accordance with FSA regulations and
The duties and responsibilities of the Compliance Unit were                     statutory provisions.
based on FSA Regulation No. 46/POJK.03/2017 concerning                       6. Perform other duties related to the Compliance Function.
the Implementation of Compliance Function for Commercial


Compliance with Legal Provisions and Regulations

Throughout 2023, Bank Jatim has complied with all statutory provisions and regulations as well as fulfilled commitments with the
competent authorities.


Compliance Function Competency Development

The competency development that had been followed by Compliance Function Employees during 2023 is as follows:


 No                          Name of Education and Competency Development                                         Implementation date

  1    Corporate Value Internalization For Culture Leaders                                                      January 14, 2023

  2    Basic Sharia Banking Education (PDPS)                                                                    January 22, 2023

  3    Completion of the Compliance Function, Improvement of the Procedure Framework and Performance
                                                                                                                February 15, 2023
       Identification

  4    AML-CFT training                                                                                         February 21, 2023

  5    Understanding the Credit Process                                                                         February 27, 2023

  6    Financial Transaction Reporting Implementation Program                                                   March 8, 2023

  7    Level 2 Risk Management Certification                                                                    March 15, 2023

  8    Refinitiv Services                                                                                       March 16, 2023

  9    Process of Foreign Transaction Reports and Risk Mitigation of Money Laundering and Terrorism Financing   March 17, 2023

  10   DNDF, OIS and IRS transactions                                                                           March 19, 2023

  11   English Course Elementary Level                                                                          March 28, 2023

  12   Financial Integrity Rating (FIR) on Money Laundering and Terrorist Financing                             June 9, 2023

  13   Credit Review from Compliance and Risk Management Aspects                                                June 16, 2023



                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               Annual Report 2023      465
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 No                          Name of Education and Competency Development                                             Implementation date

  14   Compliance with Digital Banking                                                                              July 13, 2023

  15   Video Learning Production                                                                                    July 23, 2023

  16   Banking Legal Consultant                                                                                     August 25, 2023

  17   Preparation of Self Estimated Prices (HPS)                                                                   August 27, 2023

  18   Banking Legal Consultant Certification                                                                       September 14, 2023

  19   Facilitating Techniques and Customer Engagement                                                              September 15, 2023

  20   Strategy and Implementation of Strengthening the Banking Industry                                            October 13, 2023

  21   Culture Transformation with Growth Mindset                                                                   October 18, 2023

  22   Implementation of Supervision and Risk Mitigation of Suspicious Financial Transactions – POJK No 8 of 2023   October 20, 2023




Implementation of the Compliance Function                                      Bank comply with the provisions of the Financial Services
Duties                                                                         Authority and regulatory provisions laws and regulations,
                                                                               including Sharia Principles for sharia commercial banks and
The implementation of the Compliance Function duties that                      sharia business units
have been implemented in 2023 is as follows:                                3. Developing a compliance portal so that it can function
1. Improving programs for embodying a culture of compliance                    effectively to support the performance of all work units, as
   in work units both offline and online, and continuously                     well as integrating work papers on a summary of external
   increasing employee understanding of applicable rules and                   provisions in the compliance portal.
   regulations.                                                             4. Identify, measure, monitor and control compliance risk
2. Actively monitor and build communication with related                       to minimize the occurrence of compliance risk through
   work units on new external regulations issued by regulators                 monitoring parameters that affect compliance risk.
   as an effort to ensure that policies, provisions, systems                5. Development of a report monitoring application (monilap)
   and procedures and business activities carried out by the                   especially for monitoring features of Internal and External
                                                                               Audit findings.


Anti-Money Laundering Program, Prevention of Terrorism Funding & Prevention of
Funding for The Proliferation of Weapons of Mass Destruction

The existence of globalization in the financial services sector             2. Strengthening Know Your Customer (KYC) by utilizing
which is accompanied by the increasing development of financial                the Directorate General of Dukcapil’s (Civil Registry
service products including marketing (multi channel marketing), as             Office) EKTP and/or Digital Population Identity (IKD) data
well as increasingly complex financial services industry activities            verification services.
and technology both in terms of products, services and the use              3. Optimizing the implementation of Anti-Money Laundering
of information technology, has the potential to increase the risk              and Terrorism Financing Prevention Program in all financial
of using the financial services industry as a means of Money                   transactions and bank operations at all levels of the
Laundering, Terrorism Financing and/or Funding the Proliferation               organization.
of Weapons of Mass Destruction with its increasingly diverse and            4. Developing and improving the management information
advanced modus operandi.                                                       system for implementing AML, CFT & PPPSPM, as well
                                                                               as continuously improving the quality of customer data in
The Anti-Money Laundering and Terrorism Financing Prevention                   order to improve the quality of reporting as the task of the
Program implementations that had been carried out include:                     Reporter in the AML, CFT & PPPSPM regime.
                                                                            5. Play an active role and be part of the implementation
1. Implementation of the AML, CFT & PPPSPM programs                            of prevention and eradication of AML, CFT & PPPSPM
   under the supervision of the Director in charge of the                      programs through Go-AML, SIGAP, SIPENDAR, SIPESAT,
   Compliance function, has policies and procedures                            PEDAL, GRIPS Reports and Election-related Reports.
   supported by an adequate internal control system and                     6. The Bank has participated in the Financial Integrity Rating
   management information system, and competent human                          on ML/TF assessment conducted by PPATK with better
   resources.                                                                  results than the previous year.




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Lawsuit

During 2023 Bank Jatim faced several essential cases in the form of civil law issues that had been completed (had received Court
Decisions that had permanent legal force/inkracht), revocation of lawsuits and are still in the process of being resolved as follows:


Table of Important Matters

                                                                                                            Total
 No.                                 Cases
                                                                              Civil               Commerce                Industrial relations

  1.   Completed (There has been a Court Decision that has                     18                       -                          1
       permanent legal force/inkracht)

  2.   Lawsuit Revocation                                                        5                      -                           -

  3.   In Process of Completion                                                19                       1                           -



Important Case Faced by The Company

Of the several cases faced by the Bank, there were 7 (seven) significant civil cases as follows:


Table of Important Cases Faced by the Company

                                                                                                                                  Claims for
                                                                                 Management                   Sanctions            Material
 No         Case/Lawsuit                Completion Status            Risk
                                                                                   Efforts                    imposed        Compensation (in
                                                                                                                             millions of rupiah)

  1.   Case Number 584/               Won by Bank Jatim in       Legal Risk   Bank Jatim made a             None             Rp.3.000,-
       Pdt.G/2007/PN.Sby dated        the District Court and                  written confirmation to
       November 21, 2007              High Court                              the Court regarding the
       between PT Hikmah Surya                                                inkracht status of the
       Jaya and Bank Jatim                                                    High Court Decision

  2.   Bankruptcy Case Number         The process of verifying   Legal Risk   Bank Jatim has verified       None             Rp31.103,-
       40/Pdt.Sus/ PKPU/2019/         creditor files at the                   the debt to PT Citra
       PN.Niaga Sby with              Commercial Court at                     Gading Asritama/
       applicants PT Fatma Lestari    the Surabaya District                   Bank Jatim's debtor (in
       Abadi Mix and CV Azka          Court                                   bankruptcy)
       Pelangi Bersaudara against
       PT Citra Gading Asritama
       (in bankruptcy)

  3.   Civil Case Number 16/          Appeal Process at the      Legal Risk   Bank Jatim submitted          None             Rp.3.218,-
       Pdt.G/2023/PN.Bna dated        Banda Aceh High Court                   a counter appeal
       April 18, 2023 regarding PT                                            to strengthen Bank
       Rudi Jaya's lawsuit                                                    Jatim's position

  4.   Civil Case Number 124/          Trial process at Malang   Legal Risk   Bank Jatim submitted          None             Rp.3.100,-
       Pdt.G/2023/PN.Mlg dated         District Court                         answers and evidence
       May 30, 2023 regarding the                                             at trial to strengthen
       lawsuit of Galuh Nalibronto                                            Bank Jatim's position
       Prabaningrum and
       Ngatemoen Harijono

  5.   Civil Case Number 746/          Trial process at the      Legal Risk   Bank Jatim submitted          None             Rp.5.732,-
       Pdt.G/2023/PN.Sby dated         Surabaya District Court                answers and evidence
       July 26, 2023 regarding                                                at trial to strengthen
       the lawsuit of PT Toya Indo                                            Bank Jatim's position
       Manunggal

  6.   Civil Case Number 888/          Trial process at the      Legal Risk   Bank Jatim submitted          None             Rp.15.000,-
       Pdt.G/2023/PN.Sby dated         Surabaya District Court                answers and evidence
       August 29, 2023 regarding                                              at trial to strengthen
       the lawsuit of PT Anugerah                                             Bank Jatim's position
       Bersama Berkah Abadi




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                                                                                                                                   Claims for
                                                                                     Management               Sanctions             Material
 No          Case/Lawsuit             Completion Status             Risk
                                                                                       Efforts                imposed         Compensation (in
                                                                                                                              millions of rupiah)

  7.    Civil Case Number 176/       Trial process at the       Legal Risk        Bank Jatim submitted     None               Rp.27.988,-
        Pdt.G/2023/PN.Kpn            Surabaya District Court                      answers and evidence
        dated September 6, 2023                                                   at trial to strengthen
        regarding Yon Permadian                                                   Bank Jatim's position
        Tesna's lawsuit


Important Cases Which Faced by the Board of                                    Impact of Legal Problems on Bank
Commissioners and the Board of Directors
                                                                               The impact of civil law problems experienced by Bank Jatim
During 2023 there were no legal issues being faced by the                      through the legal process is not significant and does not
incumbent Board of Commissioners and Directors.                                interfere with the Bank’s performance because the Bank has
                                                                               carried out appropriate mitigation and litigation processes and
Legal Problems Facing Subsidiaries                                             in accordance with the provisions of laws and regulations.


During 2023, Bank Jatim does not yet have Subsidiaries,
so there is no information on legal issues being faced by
Subsidiaries.



Administrative Sanctions Imposed to Companies, Members of the Board of
Commissioners and the Board of Directors by Capital Market Authorities and Other
Authorities

Bank Jatim’s administrative sanctions for 2023 are as follows:


 No.                                        Sanction Name                                                               Institution

  1.    Imposition of Administrative Sanctions for Audit Position Findings June 30, 2022               Financial Services Authority

  2.    Imposition of Administrative Sanctions for Non-Compliance with SNAP Open API Periodic          Bank Indonesia
        Reporting

  3.    Sanctions for Delay in Submitting Debtor Reports to the Financial Information Services         Financial Services Authority
        System

  4.    Imposition of Obligation to Pay Sanctions for 2022 General Examination Results                 Financial Services Authority

  5.    Sanctions for Errors in SLIK Reporting on 2023 General Audit Results                           Financial Services Authority

  6.    Delay in Submitting the 2023 RBB Report                                                        Financial Services Authority

  7.    Delay in the 2023 RPPB Report                                                                  Financial Services Authority

  8.    Antasena Transaction Reporting Fines pln01                                                     Bank Indonesia

  9.    LBUT Monthly Antasena Reporting Fines                                                          Bank Indonesia

  10.   Lack of Fulfillment of Sharia Mandatory Minimum Reserves (GWM).                                Bank Indonesia

  11.   Submission of Foreign Exchange Traffic Report (LLD) exceeds the Cut Off Time                   Bank Indonesia

  12.   Misreporting of Financial Information                                                          Financial Services Authority




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 No.                                       Sanction Name                                                     Institution

  13.   Delay in Complaint Follow-up                                                        Financial Services Authority

  14.   Report Submission Correction Violations                                             Bank Indonesia

  15.   Operation of Products without Obtaining Permits                                     Financial Services Authority

  16.   Not Submitting Reports                                                              Bank Indonesia

  17.   Not Submitting Reports                                                              Bank Indonesia

  18.   Delay in Submitting Reports                                                         Financial Services Authority



During 2023 there were no administrative sanctions imposed           information on CSR distribution and the latest information /
on the members of the Board of Commissioners and Directors           news about Bank Jatim.
by the capital market authorities and other authorities.
                                                                     As information to the wider community, Bank Jatim regularly
Access to Company Information and Data                               participates in events held by other parties and distributes
                                                                     press releases to print and electronic media to inform Bank
The public can access all financial and non-financial reports that   Jatim activities and products. Bank Jatim also informs several
have been submitted by Bank Jatim in a transparent manner            important activities and published quarterly reports to the public
through various means that are available in a timely, complete       through cooperation with print and electronic media (internet).
and accurate manner.                                                 Bank Jatim uses social media as a means to communicate with
                                                                     external parties through:
Internal Communication                                               Facebook : bank jatim
                                                                     Twitter 		 : @bank_jatim
Bank Jatim maintained an internal communication network              Instagram : bankjatim
between the Bank’s management and employees and ensured              Youtube      : bank jatim
the implementation of communication went well within the
organization. By taking this into account, Bank Jatim developed      Investor Management
several communication channels, including through the Bank
Jatim Magazine, the human resources intranet portal and Bank         In maintaining the trust of shareholders and stakeholders, the
Jatim internal information media which provided information          Bank Jatim Investor Management team is in direct contact
to all Bank Jatim employees about various company activities         with investors, analysts and Shareholders to explain the Bank’s
and information needed in carrying out daily activities. Internal    performance. The activities carried out by Investor Relations
communication has a purpose, namely:                                 are as follows:
1. Responsibility for internal management.
2. Submission of draft speeches, papers, seminar materials for       Derry Widya Ariyanta
    the Board of Directors and materials for the GMS.                Corporate Secretary Kantor Pusat
3. Submission of the preparation of the Bank’s Annual Report         Bank Jatim
    Book and Company profile.                                        Jl. Basuki Rachmat No. 98-104, Surabaya
4. Proposal of procedures and concepts for Board of Directors        Email: iru@bankjatim.co.id
    meetings, ceremonies, Bank events and other meetings.            Telp: (6231) 5310090-99 ext 440


External Communication                                               The activities carried out by Investor Relations are as follows:
                                                                     1. Compiling the performance of Bank Jatim every month
Bank Jatim used various communication channels both to                  in accordance with the company’s monthly financial
internal and external parties which aimed to build a company            reports such as; macro and micro economic information,
image through print media, electronic media, broadcast media,           information on the company’s financial position based on
display media and others. To make it easier for the public to           balance sheets, ratios, percentages, business plans and
get the latest information about the company, Bank Jatim had            strategies as well as stock information.
a corporate website that could be accessed through www.              2. Managing information disclosure with investors and
bankjatim. co.id which also functioned as a service portal. On          analysts.
the Bank Jatim website, people can find detailed information         3. Coordinating, evaluating, and providing recommendations
about Bank Jatim starting from history, organizational structure,       in the implementation of activities including:
vision and mission, management, networks, achievements,                 a. One on One Meeting
fund products, credit products and Bank Jatim services for both              This activity is carried out to foster good relations with
conventional and sharia. In addition, the website also contains              potential investors, investors and analysts.




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
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    b. Analyst Meeting                                                         Activities carried out at the request of investors to visit
       Activities to present the company’s quarterly                           branches to see the operations of Bank Jatim.
       performance with analysts aimed at delivering the                    e. Roadshow
       latest information on the performance, strategies and                   Activities increase the interest of foreign investors to
       achievements that have been achieved by Bank Jatim..                    enter the country through Bank Jatim shares.
    c. Conference Call                                                   4. Compiling, managing, and carrying out preparation of
       Telephone calls made either at the request of an                     weekly, monthly, quarterly, semester and annual publication
       investor or an Investor Relations initiative.                        report.
    d. Site Visit



Investor Relation Performance

The activities that have been carried out by the Investor Relations Team during 2023 are as follows:


1. Analyst Meeting activities, in 2023 will be held 4 (four) times a year

      No                      Date                                 Location                                     Topics

      1      March 7, 2023                      Alila Hotel, Jakarta                          Analyst Meeting FY 2022 Audited

      2      April 28, 2023                     Bank Jatim Headquarter                        Analyst Meeting 3M23

      3      July 25, 2023                      Indonesian Stock Exchange Building, Jakarta   Analyst Meeting 1H23

      4      October 30, 2023                   Alila Hotel, Jakarta                          Analyst Meeting 9M23


2. Communication with analysts and investor is as follows:

      No                      Date                          Investors/Securities                                Topics

       1     March 20, 2023                     Bahana Sekuritas                              One On One Meeting

       2     May 12, 2023                       Panin Sekuritas                               One On One Meeting

       3     June 16, 2023                      Bahana Sekuritas                              One On One Meeting

       4     July 12, 2023                      PT Taspen                                     One On One Meeting

       5     July 24, 2023                      PT Taspen                                     One On One Meeting

       6     July 25, 2023                      Bahana Sekuritas                              One On One Meeting

       7     August 7, 2023                     Sinarmas Sekuritas                            Site Visit

       8     August 16, 2023                    Toccata Capital                               One On One Meeting

       9     August 28-30, 2023                 Ciptadana Asset Management                    One On One Meeting

                                                Semesta Asset Management

                                                Wanteg Asset Management

                                                GAP Capital

                                                BNI Life

                                                BCA Sekuritas

      10     September 22, 2023                 BRI Danareksa                                 Site Visit

      11     October 5-6, 2023                  BPJS                                          One On One Meeting

                                                Edgbaston Investment Partner

      12     October 31, 2023                   BRI Danareksa                                 One On One Meeting

      13     November 24, 2023                  Binaartha Sekuritas                           One On One Meeting

                                                Waterfront Sekuritas


4. On June 23, 2023, Bank Jatim was included in the Tempo-IDN Financial52 Index.
5. On September 18, 2023, Bank Jatim was included in the Financial Times Stock Exchange (FTSE) Russell for the Micro Cap
   category.




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6. On September 20, 2023, Bank Jatim won an award at the IDX Channel Anugrah Innovation Indonesia (ICAII) 2023 event in the
   Product Innovation & Business Model category by implementing the 5 (five) Pillars of Transformation Innovation.
7. Bank Jatim is included in the top 10 of the KCSI (Katadata Corporate Sustainability Index) Ranking for the September 2023
   period in the Finance sector.
8. Organizing a Live Public Expose which will be held on November 2, 2023 at Bank Jatim Head Office.
9. On November 23, 2023, Bank Jatim won an award at the CSA Award-The Best Innovation Regional Banks event.


Press Conference


 No           Date                                                         Press Conference

 1     January 19, 2023    Bank Jatim and RSU Brimedika Collaborated on Employee Health Services

 2     January 20, 2023    Bank Jatim Started 2023 with the Submission of CSR Bank Jatim care

 3     January 27, 2023    Bank Jatim Handed Over CSR to RSUD Husada Prima Surabaya

 4     January 30, 2023    Bank Jatim Handed Over CSR Assistance to Probolinggo City Government

 5     February 1, 2023    Consistently Implementing GCG, Bank Jatim Won Asean Asset Class PLCs Award

 6     February 2, 2023    Bank Jatim Supported Ministry of Finance Programs Through UMKM and KUR Assistance

 7     February 6, 2023    Supporting MSMEs in Kediri Regency, Bank Jatim Handed over CSR to Kediri Regency Government

 8     February 8, 2023    Bank Jatim Peduli Helped Construction of Landmark Simpang 4 Pasuruan City

 9     February 10, 2023   Total Prize of 3 billion, SIMPEDA National Lottery was lively

 10    March 5, 2023       Bank Jatim Presented E-Retribution (SI RATRI) at the Perak Jombang Market

 11    March 8, 2023       To support easier payment of tuition fees, Bank Jatim collaborated with Trunojoyo Madura University

 12    March 8, 2023       Strengthening Sharia Services, Bank Jatim Signed Business Synergy Cooperation Agreement with Bank NTB Syariah

 13    March 9, 2023       Bank Jatim Won 2023 Obsession Awards in Best Companies Category

 14    March 13, 2023      Bank Jatim Achieved Rank A in 2021 Sustainability Report

 15    March 14, 2023      Creating Work-Ready Human Resources, Bank Jatim and East Java Manpower and Transmigration Department Press
                           Mou for Providing Internships

 16    March 14, 2023      Bank Jatim and Tuban Regency Government synergized with each other to launch the East Java Agent

 17    March 17, 2023      Working on Sharia Economic Potential, Bank Jatim Launched Santri Savings

 18    March 20, 2023      Bank Jatim Supported the East Java Provincial Government's Trade Mission in East Kalimantan

 19    March 21, 2023      Bank Jatim Cares Provided CSR Assistance for the Construction of the Magetan Regency Border Gate

 20    April 5, 2023       Bank Jatim Won Award at the 2023 TOP BUMD Awards

 21    April 7, 2023       Encouraging Digital Financial Literacy, Bank Jatim Held JConnect Ramadhan Festival with MSME Players

 22    April 12, 2023      Performance Increases, Bank Jatim Distributed Dividends of IDR 797 billion

 23    April 14, 2023      QRIS Bank Jatim Made Trans East Java Bus Payments Easy

 24    April 15, 2023      Suroboyo Bridge Ramadhan Festival Helped MSMEs Upgrade

 25    April 28, 2023      Launching Five Pillar Digital Transformation, Bank Jatim's Credit Performance Grew Beyond Target

 26    April 30, 2023      Jconnect Ramadhan Festival 2023 recorded Transactions of Hundreds of Millions of Rupiah During the Exhibition

 27    May 8, 2023         Expanding the Market Bank Jatim Included 3 MSMEs It Assisted in the Lampung Trade Mission

 28    May 15, 2023        New Building Inaugurated by Bank Jatim Capem Porong Was Ready to Provide Optimal Service

 29    May 15, 2023        Supporting the Trade and Investment Mission of East Java Province, Bank Jatim Introduced JConnect Ramadhan in
                           Hong Kong

 30    May 17, 2023        Supporting each other, Bank Jatim and UNESA Signed MoU in the Business & Academic Sector

 31    May 21, 2023        Receiving Full Support from Bank Jatim, PT Enha Sentosa Indonesia Successfully Exported Ginger to Four Countries

 32    May 25, 2023        Explained Kangean Island Through CSR PJU Solar Cell from Bank Jatim

 33    May 26, 2023        Bank Jatim Facilitated PT Astana Shoga Asia to Penetrate the Export Market




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No           Date                                                        Press Conference

34    May 28, 2023        Realizing Economic Independence Bank Jatim Handed Over Two CSRs Simultaneously in Lamongan and Lumajang

35    May 29, 2023        Supporting the Acceleration of Digitalization Bank Jatim Handed Over CSR Assistance of 120 PC Units to Surabaya
                          City Government

36    May 30, 2023        Governor of East Java Inaugurated the Foreign Exchange Pendulum Village Assisted by Bank Jatim

37    June 1, 2023        Bank Jatim Distributed East Java Retail Credit in Kampoeng Kreasi Activities

38    June 5, 2023        Strengthening Collaboration with PT SIER, Bank Jatim Signed MoU, and Inaugurated New Office

39    June 7, 2023        Forming Trust Management for Company Performance, several Bank Jatim Directors Purchased BJTM Shares

40    June 9, 2023        Bank Jatim Won Award at the 2023 Indonesia Financial Top Leader Awards

41    June 10, 2023       Applying the Performance Management System, 99.8% of Bank Jatim Employees Felt Engaged

42    June 11, 2023       Applying Work Life Balance, Bank Jatim Participated in Badminton Friendly Match

43    June 12, 2023       Following the Trade Mission, Bank Jatim Provided Promotional Facilities and Market Access for its MSMEs

44    June 19, 2023       Accelerating Health Services, Bank Jatim Handed Over CSR Ambulance Assistance to RSJ Menur

45    June 20, 2023       Bank Jatim Social Media Won Award at the 20th Infobank-MRI BSE Awards 2023

46    June 23, 2023       Received High Dividend Appreciation, Real Evidence that Bank Jatim Contributed to the Country

47    June 27, 2023       Bank Jatim became the first bank to implement IKD for banking in Indonesia

48    July 3, 2023        Bank Jatim's Commitment to Fostered MSMEs in Trade Mission Activities

49    July 14, 2023       Bank Jatim Affiliated Company Operational Office Officially Moved to Rubber Building

50    July 15, 2023       Strengthening Sharia Performance, Bank Jatim Held Sharia Town Hall Meeting 2023

51    July 17, 2023       Realizing Concern for the Probolinggo Community, Bank Jatim Handed Over CSR & Launched Regional Financial
                          Electronification

52    July 17, 2023       Bank Jatim collaborated with PLN Insurance regarding bank guarantees

53    July 25, 2023       Bank Jatim Credit Distribution Grew Significantly

54    July 28, 2023       Optimal Performance, Bank Jatim Won Indonesia Best Bank Awards 2023

55    July 31, 2023       Supporting Village and Rural Progress, Bank Jatim & Ministry of Village PDTT Collaborated in ASEAN SOMRDPE
                          Indonesia 2023

56    August 9, 2023      Bank Jatim Strengthened Synergy with the East Java High Prosecutor's Office

57    August 10, 2023     Bank Jatim Collaborated with the Surabaya District Prosecutor's Office and the Tanjung Perak District Prosecutor's
                          Office

58    August 20, 2023     Celebrating its 62nd Birthday, Bank Jatim Launched JConnect Pro

59    August 20, 2023     Bank Jatim Facilitated MSME Terminal and Trans Jatim QRIS Bus Payments

60    August 21, 2023     Bank Jatim Supported the Submission of the 2022 PPPK Formation Decree by the Governor

61    August 22, 2023     East Java Provincial Government Together with Bank Jatim Distributed Social Assistance to Bangkalan

62    August 23, 2023     East Java Provincial Government and Bank Jatim Greeted Hundreds of ASN and Hand Over Social Assistance in
                          Pamekasan

63    August 23, 2023     Bank Jatim Synergized with Malang City Government to Revitalize the Square

64    August 24, 2023     Caring for Cigarette Workers, East Java Provincial Government Collaboratedwith Bank Jatim to Distribute Aid to
                          5,030 Workers

65    August 25, 2023     Continuously Positive Performance, Bank Jatim Won Infobank Award 2023

66    August 31, 2023     Bank Jatim Won Best BUMD Digital Innovation Award

67    August 31, 2023     Bank Jatim Became the Largest Fund Collector in Simpeda Savings

68    September 4, 2023   Encouraging Financial Inclusion, Bank Jatim's Highest Simple Savings Achievement in East Java

69    September 5, 2023   Synergy with PT Rajawali I Sugar Factory & PKPTR Malang, Bank Jatim Supported Financing of Sugarcane Farmers

70    September 6, 2023   Increasing Young Generation's Interest in Sports, Bank Jatim Handed Over Basketball Court CSR to Tuban Regency
                          Government




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No           Date                                                           Press Conference

71    September 6, 2023    Bank Jatim Won Two Awards at Once in the 2023 TOP GRC Awards

72    September 7, 2023    Encourage the Youth Hajj Movement through Bani Fest 2023

73    September 11, 2023   Supporting East Java Provincial Government Activities in the Trade and Investment Mission in Banten, Bank Jatim
                           Facilitated Local Products

74    September 11, 2023   Supporting Madiun Sugarcane Farmers, Bank Jatim Again Signed Cooperation Agreement with PT PG Rajawali I

75    September 16, 2023   Increasing GCG Values, Bank Jatim Held Executive Summit 2023

76    September 17, 2023   Synergy with the East Java Provincial Government, Bank Jatim Facilitated the Distribution of Social Assistance and
                           Productive Zakat

77    September 18, 2023   Bank Jatim Won Top 50 Best Issuers

78    September 18, 2023   Bank Jatim Supported E-Parking Payments in Jember Regency

79    September 18, 2023   Bank Jatim Handed Over CSR Construction of Mandiri Dukcapil Platform and MSME Equipment to Pamekasan

80    September 19, 2023   Encouraging East Java Investment Growth, Bank Jatim Signed Memorandum of Understanding with SEER

81    September 19, 2023   Bank Jatim Together with the Madiun Regency Government Launched E-Market Levy and Siskeudes

82    September 19, 2023   Supporting the Independent Career Movement, Bank Jatim Distributed CSR to the East Java Manpower and
                           Transmigration Department

83    September 20, 2023   Applying the Five Pillars of Transformation, Bank Jatim Won the 2023 ICAII Award

84    September 20, 2023   Bank Jatim Received Award as East Java Startup Supporting Institution

85    September 22, 2023   Improving Community Welfare, Bank Jatim Handed Over RTLH Rehabilitation CSR to Bondowoso Regency
                           Government

86    September 22, 2023   Consistently producing outstanding athletes, Bank Jatim won award as a business entity that cared about sports

87    September 23, 2023   Bank Jatim Handed Over CSR Operational Vehicles to BPBD East Java

88    September 23, 2023   Playing Wholeheartedly, Bank Jatim Won Overall Champion of PORMI

89    September 29, 2023   Bank Jatim Won Award from the Indonesian Ministry of Home Affairs

90    October 4, 2023      Bank Jatim Won Indonesia Best CFO Award 2023

91    October 6, 2023      Improving UUS Performance, Bank Jatim Launched Dual Banking Leveraging Model

92    October 14, 2023     Supporting Food Security, Bank Jatim Distributed Credit to Tulungagung Sugar Cane Gapoktan

93    October 17, 2023     Commemorating Batu City's 22nd Anniversary, Bank Jatim Handed Over CSR and Branding of Among Tani Main
                           Market

94    October 18, 2023     Trans Jatim Corridor III Inaugurated, Bank Jatim Received Appreciation Certificate

95    October 18, 2023     Supporting Recovery from the Impact of the Pandemic, Bank Jatim Received the Jatim Bangkit Awards

96    October 25, 2023     Commitment to help MSMEs advance to class, Bank Jatim handedover CSR Cone Tent to Jember Regency
                           Government

97    October 25, 2023     Encouraging an increase in non-cash transactions, Kediri Regency Government together with Bank Jatim launched
                           KKPD

98    October 26, 2023     Increasing Financial Literacy and Inclusion, JIFest 2023 Officially Held

99    October 27, 2023     UUS Bank Jatim SupportedStrengthening Sharia Interbank Money Market

100   October 30, 2023     Bank Jatim Aggressively Distributed Credit, Growth Skyrockets 12.61% Above Banking Average

101   November 3, 2023     Bank Jatim Handed Over CSR Corpse Ambulance Car to RSUD Dr. Soetomo

102   November 6, 2023     Bank Jatim Successfully Achieved Gold Rank ASRRAT 2023

103   November 9, 2023     OPOP Expo 2023, Bank Jatim Launched KUR Syariah

104   November 9, 2023     Increasing Synergy Between BPDs, Bank Jatim Held Treasury Talk 2023

105   November 10, 2023    Excellent Performance, Bank Jatim Won Road To CNBC Indonesia Awards 2023 Best Regional Banks

106   November 16, 2023    Encouraging Increased Export Transactions, Bank Jatim and LPEI Signed MoU

107   November 16, 2023    Bank Jatim Handed Over CSR Revitalization of Jombang Square

108   November 16, 2023    Discussing the Development of the Digital Economy, FKDK BPDSI was Successfully Held




                                                                                       PT Bank Pembangunan Daerah Jawa Timur Tbk
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 No             Date                                                          Press Conference

 109    November 18, 2023      Running While Donating, Bank Jatim Held Jatimers Run To Care

 110    November 18, 2023      Caring about the World of Health, Bank Jatim Handed over CSR Ambulance Bikes to Kanjuruhan Regional Hospital

 111    November 21, 2023      Supporting East Java Migrant Workers, Bank Jatim Provided Ambulance Assistance and Facilitated Financial
                               Transactions Abroad

 112    November 22, 2023      Bank Jatim Together with the East Java Provincial Government Encouraged Export Development Through the 2023
                               Empowered East Java Export Festival

 113    November 23, 2023      Bank Jatim Received 2023 CSA Awards

 114    November 24, 2023      Forming Synergy with Trenggalek Regency Government, Bank Jatim Handed Over CSR Ambulance Cars and
                               Launched KKPD

 115    November 24, 2023      Caring about Taxes, Bank Jatim Received Award from Bapenda East Java

 116    November 27, 2023      Adding Award Collection, Bank Jatim Won First Place in ARA 2022

 117    November 30, 2023      Spreading Business Wings, Bank Jatim KUB MoU with Bank Lampung

 118    December 4, 2023       Consistently Carrying Out Digital Transformation, Bank Jatim Won Two Awards at Once in the 2023 TOP Digital Awards

 119    December 9, 2023       Supporting the World of Education, Tourism, and MSMEs, Bank Jatim Distributed CSR Assistance to Mojokerto City
                               Government and Sumenep Regency Government

 120    December 12, 2023      First in Indonesia, Bank Jatim Broke MURI Record of 2,312 Debtors Signing Mass Consumer Credit Agreements

 121    December 13, 2023      Strengthen KUB, Bank Jatim Signed NDA and PKS Business Synergy with Bank Lampung

 122    December 14, 2023      Jokowi Celebrated the Inauguration of the Among Tani Main Market with Optimal Support from Bank Jatim

 123    December 15, 2023      Bank Jatim Leaded Innovation by Becoming a Pioneer in Indonesia in Implementing IKD, Visited by the Directorate
                               General of Dukcapil (civil registry office), Ministry of Home Affairs and the World Bank

 124    December 16, 2023      Big Success! 17 Thousand Participants in the Situbondo Healthy Walk with Bank Jatim Support

 125    December 15, 2023      Bank Jatim Sharia Business Unit Received Three Awards at Once in the 2023 BPKH Award

 126    December 19, 2023      President Commissioner of Bank Jatim, has passed away




Bulletin


       Volume                                                               Bulletin Theme

 26th Edition            2023, Progressive Perbankan Performance in the first quarter

 27th Edition            Acceleration of banking digitalization



Transparency of Report Submission

Bank Jatim is always committed to being transparent in submitting reports, both periodic and incidental reports. The reports that
have been submitted by Bank Jatim for 2023 are as follows.


Periodic Report


 No.                           Type of Report                                   Goals                 Report Period                    Total

 1.     Securities Holder Registration Report                              BEI and OJK         Monthly                                  12

 2.     Foreign Exchange Debt Report                                       BEI and OJK         Monthly                                  12

 3.     Annual report                                                      BEI and OJK         Annual                                     1




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Incidentile Report


 No.       Date         Reference Number        Goals                                    Regarding

 1.    27/2/2023     062/056/DIR/CSE/Srt       OJK       Presentation at Annual General Meeting of Shareholders

 2.    6/3/2023      062/091/DIR/CSE/Srt       OJK       The Announcement of Annual General Meeting of Shareholders planning

 3.    6/3/2023      062/4/CSE/IVR/Srt         OJK       Presentation of Advertisement for Annual General Meeting of Shareholders
                                                         planning

 4.    8/3/2023      062/169/AMK/AKP/GPL/SRT   OJK       Presentation of Information Advertisement about Annual Financial Statements

 5.    13/3/2023     062/102/DIR/CSE/Srt       OJK       Request for Clarification from The Issuer and Public Company in Response to
                                                         Indnesia’s Financial Authority letter (OJK)

 6.    21/3/2023     062/107/DIR/CSE/Srt       OJK       Call for Annual General Meeting of Shareholders

 7.    21/3/2023     062/05/CSE/IVR/Srt        OJK       Presentation of Advertisement for Annual General Meeting Call

 8.    21/3/2023     062/114/DIR/CSE/Srt       OJK        Request of Emitent Explanation and Other Public Companies

 9.    21/3/2023     062/110/DIR/CSE/Srt       OJK       Presentation of Annual and Sustainable Reports

 10.   21/3/2023     062/109/DIR/CSE/Srt       SIPENA    Submission of Sustainability Report Book from Regional Development Bank
                                               – OJK     in 2022

 11.   14/4/2023     062/149/DIR/CSE/Srt       OJK       Summary of Annual General Meeting of Shareholders

 12.   14/4/2023     062/08/CSE/IVR/Srt        OJK       Disclosure of Information related to Corporate Action- Cash Dividend

 13.   14/4/2023     062/07/CSE/IVR/Srt        OJK       Submission of Advertisement General Meeting Shareholders’ results

 14.   28/4/2023     062/344/AMK/AKP/GPL/SRT   OJK       The Submission of Advertisement for Interim Financial Report

 15.   28/4/2023     062/158/DIR/CSE/Srt       SIPENA-   Announcement of Temporary Replacement Report for the Bank Jatim Director
                                               OJK

 16.   2/5/2023      062/226/DIR/CSE/Srt       OJK       Change of Corporate Secretary

 17.   10/5/2023     062/190/DIR/CSE/Srt       OJK       Summary of Annual General Meeting Shareholders

 18.   22/5/2023     062/220/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 19.   22/5/2023     062/221/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 20.   30/5/2023     062/224/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 21.   6/6/2023      062/228/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 22.   6/6/2023      062/287/DIR/CSE/Srt       OJK       Request of Emitent Explanation and Other Public Companies

 23.   6/6/2023      062/232/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 24.   6/6/2023      062/231/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 25.   6/6/2023      062/230/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 26.   6/6/2023      062/227/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 27.   6/6/2023      062/111/DKM/SDK/SRT       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 28.   6/6/2023      062/10/CSE/IVR/Srt        OJK       Monthly Report of Security Holders Registration

 29.   6/6/2023      062/229/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 30.   9/6/2023      062/240/DIR/CSE/Srt       OJK       Report of Material Information of Facts : Submission of the Assessment Results
                                                         of Competence and Suitability

 31.   9/6/2023      062/238/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 32.   9/6/2023      062/236/DIR/CSE/Srt       OJK       Report of Ownership or Any Changes in Share Ownership of a Public Company

 33.   7/7/2023      062/367/CSE/CMAI/Srt      OJK       Internal Audit Change

 34.   18/7/2023     062/396/CSE/CMAI/Srt      OJK       Corporate Secretary Change

 35.   26/7/2023     062/624/AMK/AKP/GPL/SRT   OJK       The Submission of Advertisement for Interim Financial Report

 36.   23/8/2023     062/456/DIR/CSE/Srt       OJK       Internal Audit Change

 37.   25/8/2023     062/332/DIR/CSE/Srt       SIPENA-   Report Regarding the Temporary Replacement of the Director in charge of
                                               OJK       Compliance Function in Bank Jatim

 38.   19/10/2023    062/730/CSE/CMAI/Srt      BEI       Annual Plan for Public Expose




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   Annual Report 2023             475
Page 478
 No.         Date              Reference Number             Goals                                       Regarding

 39.    23/10/2023         062/378/DIR/CSE/Srt            OJK          Report of Material Information of Facts : Submission of the Assessment Results
                                                                       of Competence and Suitability

 40.    30/10/2023         062/15/CSE/CMAI/Srt            BEI          Presentation of Annual Public Expose Material

 41.    31/10/2023         062/940/AMK/AAPK/SRT           OJK          The Submission of Advertisement for Interim Financial Report


 No.         Date              Reference Number             Goals                                       Regarding

 42.    6/11/2023          062/17/CSE/CMAI/Srt            OJK          Laporan Hasil Public Expose - Tahunan

 43.    23/11/2023         062/894/AMK/AAKP/Surat         OJK          Request for Explanation from Issuers and Other Public Companies (Reviewer
                                                                       of Financial Reports)

 44.    29/11/2023         062/807/CSE/CMAI/Srt           SIPENA-      Appointment of Public Accountant Firm of East Java Regional Development
                                                          OJK          Bank in 2023

 45.    5/12/2023          062/435/DIR/CSE/Srt            OJK          Report of Material Information of Facts : Submission of the Assessment Results
                                                                       of Competence and Suitability

 46.    29/12/2023         062/450.2/DIR/CSE/Srt          OJK          Presentation at Annual General Meeting of Shareholders




Code of Conduct                                                               Scope of Code of Conduct

The Code of Conduct or Corporate Culture is a guideline that                  Bank Jatim’s Code of Conduct is regulated in manual book
functions as:                                                                 No. 058/116/DIR/PRS/KEP concerning code of conduct, work
1. Codification or compilation of policies, employee                          ethics and business (code of conduct) dated May 14, 2019.
    regulations that set standards of behavior both for                       Implementation of the Code of Conduct is a must of which
    Management and Employees in realizing GCG and the                         lead to making governance as a company culture that can be
    Bank’s work culture.                                                      measured through guidelines for behavior and work & business
2. Reference for every Bank employee in good and                              ethics. The Code of Conduct is the main reference about the
    professional behavior to regulate themselves based on                     attitudes or actions that must be taken and which should not
    mutual interests with all stakeholders.                                   be carried out by Bank Jatim Personnel in carrying out daily
3. The basis for determining service products and various                     activities within the Bank Jatim environment. This means that
    activities carried out by the Bank are deemed to have                     managers and employees are obliged to obey and comply with
    fulfilled the specified code of conduct, work ethics and                  the code of conduct in Bank Jatim.
    business.
4. Reference to maintain a good relationship between the                      The scope of the Code of Conduct includes:
    Bank’s personnel and related external parties based on                    1. Company Relations with Stakeholders such as guidelines
    GCG principles and the application of behavior, work ethics                  for the Bank’s organs and all employees
    and business. The implementation of the Code of Conduct                   2. Internal Environmental Behavior (Board of Commssioners,
    is a must and must be obeyed by every Bank employee                          Board of Directors, and employees) with the external
    consistently showing that the Bank upholds cultural values                   environment, for example conflicts of interest, giving and
    as well as business ethics and behavior in carrying it out.                  receiving gifts and donations, compliance with regulations,
    As a code of conduct, and work and business ethics of                        and confidentiality of information.
    the Bank, the Code of Conduct is in line with the vision
    and mission to be achieved by the Bank and supported by
    values that are upheld in accordance with the prevailing
    corporate culture.



Principals of Code of Conduct

The main points of the Code of Ethics contain work ethics and business ethics. Work ethics and business ethics includes the following
aspects:

                                                                   Work Ethics

 Handling of Conflict of Interest   In carrying out business activities that refer to the principles of Good Corporate Governance, the Bank is required
                                    to manage conflicts of interest. Conflict of interest management is aimed at creating a work climate that always
                                    puts the interests of the Bank ahead of personal interests and improves good relations with suppliers, customers,
                                    and other stakeholder parties. Handling of conflicts of interest to refer to the applicable internal provisions.


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                                                             Work Ethics

Gratification Control        a.   All Bank Officials and Employees are prohibited from giving or promising gratuities either directly or
                                  indirectly, which are considered as giving bribes to civil servants or State administrators if the gift relates to
                                  their position and is contrary to their obligations or duties;
                             b.   All Bank Officers and Employees are prohibited from receiving and soliciting gratuities that are considered
                                  bribes either directly or indirectly from any party in order to comply with policies/ decisions/treatment of
                                  Bank officials and employees according to their position, authority, and responsibility;
                             c.   All Bank Officers and Employees are required to reject gratuities that are considered bribes, whether
                                  received directly or indirectly;
                             d.   Categories and procedures for reporting gratuities are regulated in more detail in the applicable regulations.

Political Activities         a.   The Bank guarantees and respects the rights of the Bank’s management and employees to exercise their
                                  political rights in accordance with the provisions of the applicable laws and regulations. Banks will not
                                  impose their will/limit the rights of management and bank employees as individuals to be able to channel
                                  their political aspirations;
                             b.   Its management and Bank employees individually can convey political aspirations freely without pressure
                                  from any party in accordance with the applicable laws and regulations;
                             c.   Prohibited activities:
                                  1. Management and Bank Employees are prohibited from becoming administrators of political parties
                                       and/or/candidates/members of the legislature;
                                  2. Bank management and employees are prohibited from participating in election campaigns and/or
                                       being election campaign executors;
                                  3. Bank Management and Employees are prohibited from providing donations and other assistance in
                                       any form including the use of facilities and infrastructure owned by the Bank for Presidential Elections,
                                       Regional Head Elections and members of the legislature;
                                  4. Pursuant to the Law on Elections, members of the DPR, DPD and DPRD, management and employees
                                       of banks who become campaigners can be subject to criminal sanctions and imprisonment as provided
                                       for in the applicable laws.
                             d.   Resignation and Cessation from Political Activities
                                  Resignation and Bank employees who become Executives of Political Parties/and/or become candidates/
                                  members of the legislature are required to resign and/or be dismissed from their respective positions and
                                  obtain rights according to the Bank’s internal provisions that apply.




                                                          Bussiness Ethics

Bank Ethics with Employees   Bank Ethics with employees can be conveyed as follows:
                             a. Fairness of treatment of Bank employees;
                             b. Assignments and Employee Activities Outside the Bank;
                             c. Prohibition of Employee Involvement in Bank Securities Business Activities;
                             d. Employee Discipline;
                             e. Work environment;
                             f. Employee Aspiration Channel;

Bank Ethics with Customers   a.   Offering products and services according to predetermined quality standards;
                             b.   Providing the best service to customers and following up on customer complaints fairly without
                                  discrimination;
                             c.   Carrying out continuous promotions in a healthy, fair, honest, non-misleading manner and accepted by
                                  applicable norms to achieve customer satisfaction and trust.

Bank Ethics with Goods and   a.   The selection of goods and services providers must be based on an assessment of capabilities, achievements,
Service Providers                 and based on compliance and objectivity in the fields of price standards, quality, availability, requirements
                                  and services provided by partners/suppliers;
                             b.   Banks do not treat goods and services providers who have become customers of the Bank in a special way;
                             c.   Carry out payments to providers of goods and services on time as long as the invoice issued is accompanied
                                  by supporting documents and is in accordance with the agreed amount;
                             d.   Imposing sanctions on goods and services providers who commit violations;
                             e.   Maintaining good communication with providers of goods and services including following up on complaints
                                  and objections;
                             f.   Utilizing good relations with providers of goods and services as an intelligent market and intelligent
                                  competitor;
                             g.   Applying the latest goods and services procurement technology;
                             h.   Every Bank employee is prohibited from asking for and/or receiving compensation, both financial and non-
                                  financial for personal gain;
                             i.   Goods and service providers are advised to understand and follow Bank regulations relating to procurement
                                  and services from external parties;
                             j.   Other provisions regarding the procurement of goods and services refer to the provisions stipulated by the
                                  General Division.




                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                               Bussiness Ethics

 Bank Ethics With Competitors      a.   The Bank complies with the provisions of the anti-monopoly law;
                                   b.   Conduct market research to find out competitors’ positions;
                                   c.   Carrying out fair and competitive competition by prioritizing the excellence of quality products and services.

 Bank Ethics with Work Partners    a.   Making mutually beneficial cooperation agreements with partners;
                                   b.   Uphold agreed rules and procedures;
                                   c.   Prioritizing the achievement of optimal results according to the best standards;
                                   d.   Building intensive communication with work partners to continuously improve performance on an ongoing
                                        basis.

 Bank Ethics with the Government   a.   Employees are required to study, understand and comply with all provisions, policies and/or/ regulations
 and Regulators                         both internal and external including the provisions of BI, OJK and applicable laws and regulations of other
                                        authorities and regulators;
                                   b.   Employees must be aware not to cooperate with customers and/or active parties who violate the law;
                                   c.   Deviations, negligence or employee violations of internal and external provisions, policies and regulations
                                        including BI, OJK and applicable laws and regulations as well as other authorities and regulatory provisions
                                        are subject to sanctions in accordance with applicable procedures;
                                   d.   Fostering good relations and communication with the Central and Regional Governments, the Financial
                                        Services Authority, Bank Indonesia and other external parties;
                                   e.   Applying the best standards (best practices) by taking into account the applicable regulations regarding the
                                        quality of services, products and services, health, safety, and the environment;
                                   f.   Avoid practices of Corruption, Collusion and Nepotism (KKN) in dealings with the Government and
                                        Regulators.

 Bank Ethics with Society          a.   Development in the social sector, namely activities that have an impact on improving the quality of social
                                        life, culture, religion, and social welfare;
                                   b.   Supporting environmental preservation efforts;
                                   c.   Community economic development;
                                   d.   Incidental activities.

 Bank Ethics With Mass Media       a.   Providing relevant and balanced information to the mass media, both general, specific, strategic and
                                        sensitive information;
                                   b.   The Bank appoints a spokesperson who represents the Bank in communicating with the media, namely:
                                        1. Main Director and Director;
                                        2. Corporate Secretary;
                                        3. Branch Manager.
                                   c.   The Bank’s communication tools with the mass media consist of press conferences, press releases, interviews
                                        and media inquiries;
                                   d.   Accept and follow up on constructive criticism conveyed through the mass media, but still pay attention to
                                        the aspects of risk and costs.

 Bank Ethics with Professional     a.   Make mutual agreements regarding ethical standards that apply to fellow members of professional and
 Organizations                          regulatory organizations;
                                   b.   Uphold the attitude of partnership and equality towards fellow members of professional and regulatory
                                        organizations.


Compliance with Code of Conduct                                                   a. Printed advertising (posters, banners, hanging banners,
                                                                                     stickers, and mica standing)
The Code of Conduct applies to the Board of Directors, Board                      b. Other campaigns include agendas, mouse pads, flash
of Commissioners and all employees. The Bank requires the                            drives, paper fans, umbrellas, tumblers, power banks
Board of Directors, Board of Commissioners and all employees                                                  1.1 One form of risk culture campaign
                                                                                                                  is through the use of a pain on the
to sign an Integrity Pact statement so that it can be implemented                                                 left of the uniform.
as well as possible. The successful implementation of the Code
of Conduct is the responsibility of all leaders in their respective
work units. The company requires the signing of a Integrity
Pact statement to be implemented to the best of one’s ability.                               Pic 1.1
The success of the Code of Conduct implementation is the                          c. Portal and Corporate Identity
responsibility of all leaders within their respective work units.                 d. Quiz
                                                                                  e. Social media
Dissemination of Code of Conduct                                                     - Employee Involvement Campaign including the
                                                                                         Expression songwriting contest
Facilities for the dissemination of Code of Conduct are as                           - Leaders Talks Values
follows:
1. Human Capital Portals
2. Compliance Portal
3. Integrity Pact
4. Campaign Program, includes:


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Efforts for Implementation and Enforcement of                            b. Category II - Moderate Position Penalty
the Code of Conduct                                                            Salary Increase Postponement
                                                                               Personal Grade Decrease
Implementation of the code of ethics is an obligation for the            c. Category III - Heavy Service Penalties
management and employees of the Bank. This code of conduct                     1 (one) Level Demotion
will always be used as a guide in the preparation of policies,                 2 (two) Levels of Demotion
manuals/ procedures and management practices. Bank Jatim                       Revocation of Mandates for Position Holders
regularly monitors compliance with the Code of Conduct In order                Disrespectful Termination
to build commitment to the implementation of the code of ethics,
all management and employees will apply the code of ethics with       Number of Violations and Sanctions Given
commitment and consistency, which is documented through the
signing of the Integrity Pact or Statement of Attitudes of Bank       During 2023, there were 24 (twenty-four) cases that were
Jatim personnel regarding the implementation of the Code of           resolved and sanctions were imposed, including:
Conduct. This integrity pact is valid until the person concerned is   1. Warning Letter
not actively working at Bank Jatim.                                   2. Written Reprimand
                                                                      3. Statement of Dissatisfaction
Types of Violations of Code of Conduct                                4. Postponement of Salary Increase”
                                                                      5. Reduction in Personal Grade
The sanctions for violations of the Code of Ethics are regulated      6. Demotion by 1 (one) level
in Guideline Book No. 059/197/DIR/HCP/KEP regarding                   7. Revocation of Mandate for Position Holder
the Implementation Guide for the Reward and Punishment                8. Termination with Dishonorable Discharge
System dated August 7, 2020. Sanctions will be given to each
personnel of the Bank who has been proven to have violated            Performance-Based Long-Term
and legally violated by the person concerned. New sanctions           Compensation Policy
can be determined after the type of violation is known. All
types of administrative sanctions in the form of mild, moderate,      The provision of long-term performance-based compensation
or severe sentence are determined by a Decree of the Board of         is granted by the Bank in the Employee and/or Management
Directors, and the person concerned will lose the opportunity         Stock    Ownership     Program    (ESOP/MSOP).   Deferred
to attend education/training funded by the Bank as long as            remuneration.
the person concerned has not finished serving and is receiving
rehabilitation from the Board of Directors.                           Share Ownership Program by Employees and/
                                                                      or Management (ESOP/MSOP)
The types of sanctions for violating the code of ethics are as
follows:                                                              Bank Jatim held a share ownership program by employees
1. Sanctions for Code Violation                                       and management based on the resolution of the Company’s
     a. Sanctions for Violation of Rules in the Form of Guidance      General Meeting of Shareholders on March 19, 2012 which was
             Verbal Reprimand                                         then stated in Deed No. 89 dated April 25, 2012.
             Reminder Letter
     b. Sanctions for Violation of Rules in the Form of               Purpose of Employee Stock Allocation (ESA) and
         Disciplinary Penalties                                       Management Employee Stock Option Plans (MESOP)
             Sanctions for Misuse of Bank Secrets and Data and
             Activities that Endanger the Bank’s Busines              The main objective of the Company’s Management and
             Sanctions for Discipline                                 Employee Share Ownership Program is that the management
             Sanctions for Disciplinary Violation                     and employees of the Company have a sense of belonging
2. Criteria for Disciplinary Violations                               and are expected to increase the work productivity of each
     a. Violation of Authority & Procedure                            employee which in turn will also improve overall corporate
     b. On purpose                                                    performance, so that there is an increase in company value.
     c. Financial                                                     which can be enjoyed by the Company’s stakeholders.
3. Categories of Disciplinary Violations
     a. Category I - Minor Punishment                                 Total Share and/or Option
     b. Category II - Moderate Position Penalty
     c. Category III - Severe Service Penalties                       Bank Jatim holds an Employee Stock Allocation (ESA) program
4. Types of Disciplinary Punishment                                   by allocating shares as much as 10% (ten percent) of the total
     a. Category I - Minor Position Penalty:                          issuance of Shares Offered and issuing Stock options for the
            Written Warning                                           Management and Employee Stock Option Plans (MESOP)
            Unsatisfied Statement




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
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program as much as 0, 71% (zeropoint seven one percent)                     -  Has been worked for 1 (one) year as of April 30,
of the total issued and fully paid-up capital after the Public                 2012
Offering.                                                                  - Not in the status of being subject to office
                                                                               sanctions/ suspension
Period of Implementation                                                   - Allocation based on position
                                                                           - The award shares are subject to a “lockup” for 2
The Implementation Period is determined following the                          (two) years
provisions of Registration Regulation No. I-A attached to the              - During the lockup period when the employee
Decree of the Board of Directors of the Jakarta Stock Exchange                 resigns or is terminated due to administrative
No.Kep-305/ BEJ/07-2004 dated July 19, 2004, namely a                          sanctions, the right to the Award Shares is null and
maximum of 2 (two) implementation periods per year with                        void.
the provision that each implementation period will be open          2. Certain Allotment Shares
for 30 (thirty) Exchange days. The MESOP program will be               a. Offered to all “Employees” to buy shares at IPO price.
implemented following the applicable laws and regulations.                 There is no obligation to buy.
                                                                       b. Allotment must be worth 7 times Employee’s salary
Requirements for Employee and/or Entire                                c. Employees who voluntarily buy their certain allotment
Management                                                                 shares, their account will be blocked for payment in
                                                                           cash on the date of the highest payment price
EMPLOYEE STOCK ALLOCATION (ESA)                                        d. Requirements for buying Certain Allotment Shares:
                                                                           - Has worked for 1 (one) year starting from April 30,
ESA is a share allocation program for employees, in this program               2012
Bank Jatim provides a special allocation or percentage for                 - Not in the suspension status
employees to own Bank Jatim shares. The ESA program can be                 - Certain Allotment is as much as 7 times Employee’s
seen in several companies when they are about to conduct an                    salary.
Initial Public Offering (IPO). The price for implementing the ESA          - Certain Allotment Shares are subject to “Lock-up”
program is the same as the bid price at the time of the IPO.                   for 3 months.


The share allocation for the ESA program consists of:               The procedures to obtain shares in the ESA program are as
• Award Shares, namely the provision of shares to employees         follows:
    as an Award.                                                    • For Award Shares, Program Participants will obtain a free
• Certain Allotment Shares, namely the allocation of share               allocation of Award Shares on the date of allotment of
    ownership to employees in the form of purchasing certain             shares for the Initial Public Offering of the Bank’s Shares.
    shares of IPO according to the limit.                                Program Participants will obtain a Share Allotment
                                                                         Confirmation Form.
Participants who can be included in the share ownership             • For Certain Allotment Shares, Program Participants
program or ESA program are as follows:                                   who wish to buy shares offered for the certain allotment
• Employees who have worked for 1 (one) year starting from               submit an order for maximum Certain Allotment Shares
    April 30, 2012.                                                      in accordance with the amount allocated on behalf of the
• Not in the status of being sanctioned by position/                     Participant. At the time of ordering the Certain Allotment
    suspension.                                                          Shares, Participants must provide full price payment funds
                                                                         in accordance with the amount ordered. Participants
If the total shares allocated in the ESA program are not fully           must provide power of attorney to PT Bahana Sekuritas
distributed, the remainder will be offered to the community.             to sign the Share Purchase Order Form (FPPS) on behalf
Provisions for the implementation of ESA program are as                  of the Ordering Party. On the date of allotment of shares,
follows:                                                                 Participants will receive Confirmation of Shares Allotment
1. Award Shares                                                          on the Certain Allotment Shares ordered through the ESA
     a. Distributed to all “Employees” at the cost of Bank               program.
         Jatim.
     b. The employees receive the shares freely at the time         MANAGEMENT EMPLOYEE STOCK OPTION PLANS
         the Bank’s shares are listed on the Indonesia Stock        (MESOP)
         Exchange
     c. Award Shares are provided amounting to 1 time               The Management & Employee Stock Option Plan (MESOP) is a
         Employee’s salary                                          program established to grant option rights to the participants
     d. Employees are obliged to sign a statement of                (optionee) to buy Bank’s shares at the exercised price previously
         compliance with the provisions of ESA program. The         specified. The shares can be exercised in accordance with the
         requirements for receiving Award Shares are:               specified exercised windows.




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The exercise price of Option Rights will be determined                    •   Members of Board of Directors who served at the time of
based on Item V.2.2 of the Regulation of Registration No. I-A,                issuance of Option Rights
Attachment of the Decree of Board of Directors of Jakarta Stock           •   Structural Officers, including Division Heads, Main Branch
Exchange No. Kep-305/BEJ/07- 2004 dated July 19, 2004,                        Managers, Sub-Division Heads, Branch Managers, and
which is at least 90% of the average closing price of the Bank’s              Department Heads at Main Branch.
share trading on the Indonesian Stock Exchange, before the                •   Participants entitled to participate in the MESOP
date of the Bank’s notification to the Indonesia Stock Exchange               program are permanent employees registered as MESOP
concerning the opening of the Exercise Window Period for                      participants in accordance with the provisions of the Fifth
Option Rights in the MESOP Program.                                           Dictum paragraph (1) Decree No: 057/251/DIR/CSE/
                                                                              KEP regarding Procedures for Implementing the MESOP
Participants of the MESOP Program are as follow:                              Program. This decision with the same position and/or level
• Board of Commissioners, excluding Independent                               as well as above that, until the time of implementation of
    Commissioners                                                             the MESOP program.
• Sharia Supervisory Board                                                •   Participants not entitled to participate in the MESOP
                                                                              program are employees who resign, dishonorably
                                                                              dismissed, or pass away.


The Option Rights in the MESOP Program will be issued in 3 Phases, namely:


Table of MESOP Program Option Rights

                   Phase I                                         Phase II                                       Phase III

 Up to 30% of the number of Option Rights that   Up to 30% of the number of Option Rights that   Up to 40% of the number of Option Rights that
 can be issued in the MESOP Program              can be issued in the MESOP Program              can be issued in the MESOP Program


Implementation Price or Implementation Price Determination

Bank Jatim has carried out the Management and Employee                    4. Means of complaints provided by the Bank in the form of:
Stock Option Plans (MESOP) program since 2016 and ends                       • Come in person and write to the Bank Jatim Internal
in 2020 with an offering price of IDR450, IDR409 and IDR599.                     Audit Division (Jln. Basuki Rahmat No.98 - 104
The number of shares issued for IDR409 was 3,163,900, and                        surabaya).
shares with a price of IDR599 were 9,963,600 shares. So that                 • Website via https://wbs.bankjatim.co.id/
the total paid-up capital on December 31, 2020, amounted                     • Text/Whatsapp Phone to 081330003040
to IDR3,753,874,520,500 or a value of 15,015,498,082 shares.              5. Fraud complaint criteria refer to the provisions and
In 2022, Bank Jatim will not carry out the Management                        applicable laws.
and Employee Stock Option Plans (MESOP) program, so
there will be no distribution of shares to either the Board of            Protection of Whistleblowers
Commissioners, Directors, or executive officers.
                                                                          As a form of the Bank’s commitment to implementing antifraud
Whistleblowing System                                                     strategies and mechanisms for complaints of violations and
                                                                          guaranteeing protection for reporters in good faith, the Bank
Submission and Media of Violation Reports                                 is obliged to:
                                                                          1. Banks are required to protect whistleblowers.
The policy and scope of complaints are regulated as follows,              2. The protection provided by the Bank against whistleblowers
among others:                                                                 is intended to encourage the courage of whistleblowers to
1. Source of whistleblowing reporting with identity                           report fraud complaints in a clear, detailed and transparent
2. The Bank’s management emphasizes the effectiveness of                      manner.
   implementing a fraud control system on the disclosure of               3. Whistleblower      protection     includes    protection   of
   complaints.                                                                whistleblower identity and report content.
3. Management of the Bank has a strong commitment to                      4. The Bank is committed to protecting whistleblowers in
   provide support and protection to each fraud reporter and                  good faith and the Bank will comply with all relevant laws
   to guarantee the confidentiality of the identity and report                and regulations as well as best practices that apply in
   of fraud submitted.                                                        managing whistleblowers.
                                                                          5. All reports of fraud complaints will be guaranteed
                                                                              confidentiality and security by the Bank and whistleblowers
                                                                              can obtain information about the progress of their
                                                                              complaints.

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6. The Bank provides protection to internal Bank employee          4. Carrying out examination on the weaknesses of the system
   whistleblowers from the following:                                 procedure, the weakness of the technology system or
   - Dismissal.                                                       others.
   - Demotion.                                                     5. Calculating the estimated loss (financial loss) that occurs
   - Discriminatory acts.                                             from the fraud.
   - Intimidation.
   - Other protections in accordance with the prevailing           Employees involved in fraud cases are subject to sanctions
       laws and regulations.                                       according to the prevailing Reward & Punishment Guidelines
                                                                   of Bank Jatim, including written warnings, demotions to
Complaint Management                                               termination of employment depending on the type of violation
                                                                   that has been committed and the loss suffered.
The process of investigating and collecting evidence related to
events that are reasonably suspected of acts constituting fraud    Bank Jatim will continue to strive to increase the understanding
consisting of several stages including:                            and concern of employees and other parties to report violations
1. Reviewing information entered through the whistleblower         through whistleblowing facilities so that they are expected to
   or from the results of the examination of the Bank’s internal   be able to create a clean and integrity work environment. In this
   audit team and collecting evidence of both physical             regard, the following steps have been taken:
   evidence, information on the scene (other information) and      1. Undertake Anti-Fraud Strategy program, including surprise
   summons of witnesses related to the type of irregularities          audit (Operational & Credit).
   that occurred and people who were indicated to have             2. Conducting socialization related to the implementation of
   committed a crime (fraud).                                          anti-fraud strategy and whistleblowing system at the exit
2. Conducting an examination by verifying the evidence                 meeting results of the audit and employees including new
   and information and the truth can be trusted and if the             employees.
   verification and information cannot be trusted then the         3. Disseminating materials related to the implementation of
   evidence is made as a document/archive and the process is           antifraud and whistleblowing strategies in the education
   terminated.                                                         schedule of employee promotion programs.
3. If the perpetrators and witnesses are not cooperative           4. Developing the Anti-Fraud Strategy system.
   (collaboration) confrontation will take place.




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                                                          Flowchart Penerapan Strategi Anti Fraud

                                                                                                           Start



                                                   Whistlebower                      Suprise Audit                         Surveillance Audit                   General Audit
    Operational and Financial Audit Sub Division




                                                     WITNESS                                         Initial Indications                               INITIAL EVIDENCE
                 (Deep Indication)




                                                   Extracting Information from Initial Witnesses
                                                                                                                               Testing (Validation) of Initial Physical Evidence
                                                                    (Reporters)



                                                   Cross-Examination of Additional Witnesses                                   Expansion and Testing of Additional Evidence




                                                                                                                                    No                       Investigation
                                                                                                          FRAUD
                                                                                                                                Enough Proof                 Discontinued


                                                                                                             Ya                                   VALID EVIDENCE


                                                                                                   Initial Fraud Report                            Bank Indonesia




                                                                                                       Special Audit
    Special & Assistance Sub Division
         (Special Audit Process)




                                                      Confrontation of the Parties Involved                                            Verification of Material Losses




                                                         Confrontation of the Main Actor                                              Modus Operandi Reconstruction




                                                                                                                                                President Director
                                                                                                   Special Audit Report
                                                                                                                                                 Board of Commissioners
Operational Sub Division and




                                                                                                  Semester Report on
                                                                                                                                                   Bank Indonesia
                                                                                                Implementation of S.A.F
    Financial Auditing
        (Reporting)




                                                                                           Monitoring, Evaluation & Follow-up                         Relevant part



                                                                                                         Finished




                                                                                                                    PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 486
Types of Violations that can be Reported                             Sanctions/Follow Up on Complaints In 2023

There were 2 types of violations, namely violations of discipline    Complaints that have been successfully processed and proven
and disciplinary violations related to violations of rules that      are then subject to sanctions according to the provisions
were processed through the Human Capital Division and their          outlined in Bank Jatim’s reward and punishment policy.
actions in the form of Coaching, Mentoring and Counseling
related to disciplinary violations, types of violations that could
                                                                         Completed Complaints                          Sanctions/
later be processed and deepened by the Internal Audit Division.                                            Total
                                                                           Processed in 2023                           Follow Up

Management of Violation Reports                                       Proven                           1           1

                                                                      Not Proven                       -           -
The complaint database from the whistleblower was under
the authority and responsibility of the Internal Audit Division
and for complaint information was the responsibility of the          Anti Corruption Program
Operational & Financial Audit Sub Division.
                                                                     Programs and Procedures in Overcoming
Socialization of Whistleblowing System                               Corruption, Kickbacks, Fraud, Bribery and/or
                                                                     Gratification Practices
Socialization of the Whistleblowing System is carried out
simultaneously with socialization related to the implementation      Prevention of Corruption Practices
of anti-fraud strategies and at the exit meeting of audit results
and employees including new employees.                               Bank Jatim has implemented several policies related to
                                                                     Corruption Prevention, including the Implementation of Anti-
Number of Complaints and Its Follow Up                               Fraud Strategies, Work and Business Ethical Behavior (Code of
                                                                     Conduct), Conflict of Interest Guidelines, Corporate Culture,
In 2023, there were 777 reports through the whistleblower            Gratuity Policy, Employee Discipline Regulations, Market
system. Out of these 777 reports, 776 of them did not undergo        Code of Ethics Guidelines, and Guidelines for Maintaining the
further resolution, because:                                         Confidentiality of Data and Information.
1. The report is not related to fraud or does not meet the
    criteria for fraud                                               Actions taken by Bank Jatim to address issues of corrupt
2. The report falls under the category of customer service           practices, particularly in Conflict of Interest, are regulated,
    complaints.                                                      including the following
3. The report falls under the category of operational questions      1. All parties, both employees and leaders, must obey the
    about the bank.                                                      code of ethics
                                                                     2. Maintaining the confidentiality of company information
There was one report through the whistleblower system that           3. A prohibition for all levels of the Company from providing
was followed up together with the Human Capital Division                 or promising gratuities, both directly and indirectly, which
and is currently marked as ‘Completed.’ Here is the table of             are considered bribery to government officials or state
the number of complaints through the whistleblower system                administrators if such provision is related to their position
in 2023:                                                                 and conflicts with their obligations or duties
                                                                     4. A prohibition on receiving or requesting gratuities,
                                                                         considered as bribery, directly or indirectly, from any
                                                  Number of
 No                 Description                                          party to influence the policies/decisions/treatments of
                                                  Complaints
                                                                         Bank officials and employees according to their positions,
  1    Number of Complaints in2023                     777               authorities, and responsibilities.
                                                                     5. The obligation to reject gratuities considered as bribery,
  2    Number of Complaints Processed                    1
                                                                         whether received directly or indirectly.
  3    Number of Complaints That Have Been
                                                         1
       Completely Processed

  4    Number of Unfinished Complaints
                                                          -
       Processed




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Implementation of Anti-Fraud Strategy                               The implementation of the four pillars takes into account the
                                                                    following:
In order to prevent cases of operational irregularities at the      1. Bank’s internal and external environmental conditions
Bank, especially fraud that could harm customers or banks           2. Complexity of business activities
and the issuance of Financial Services Authority Regulation         3. Potential, types and risks of fraud
No. 39/POJK.03/2019, dated December 19, 2019, concerning            4. Adequacy of the required resources
implementing an Anti-fraud Strategy for Commercial Banks, it
is necessary to increase the effectiveness of internal control to   The successful implementation of the overall antifraud strategy
minimize fraud risk including implementing an antifraud strategy.   depends very much on the commitment and enthusiasm of
The organizational system responsible for implementing the          the Board of Commissioners and Directors to foster a culture
anti-fraud strategy at Bank Jatim is the Internal Audit Divisi.     and anti-fraud concern at all levels of the Bank’s organization.
                                                                    One of them is by making a written commitment called the
The fraud control system has been implemented following             AntiFraud Declaration signed by the Board of Commissioners,
the anti-fraud strategy guidelines following the Decree of the      Directors and all employees of the Bank’s organization.
Board of Directors number 060/22/DIR/AUI/KEP dated January
28, 2021 concerning the Handbook for Implementing the Anti-         Prevention and detection and identification of potential risks
Fraud Strategy of PT Bank Pembangunan Daerah Jawa Timur             of vulnerability is an early warning system for the operational
Tbk. Every fraud incident is of particular concern in resolving     process. Identification of findings that indicate fraud, is implied
the case. The Bank’s Management requires that all appropriate       in the whistleblowing policy and mechanism. Through this
levels within the Bank’s internal environment have concerns for     mechanism it is expected to detect early on the occurrence
anti-fraud. The anti-fraud concern is pursued continuously in       of a violation and can increase the level of participation of
the form of zero tolerance for fraud. In implementing the Anti-     employees, customers and other stakeholders in reporting a
Fraud Strategy in the form of a Fraud control system, it includes   violation and be used as an early warning of the possibility of a
4 (four) interrelated pillars, namely Prevention, Detection,        violation in the Bank.
Investigation Reporting and Sanctions, Monitoring Evaluation,
and Follow Up.                                                      Anti-Bribery Management System

Prevention                                                          Bribery is a phenomenon that often occurs within the
                                                                    banking sector. Bribery has serious implications for the Bank’s
The prevention pillar is part of the fraud control system that      performance sustainability. Therefore, Bank Jatim is committed
aims to include steps to reduce the potential risk of fraud,        to preventing bribery through the implementation of the ISO
including anti-fraud awareness, identification of vulnerabilities   37001:2016 Anti-Bribery Management System (ABMS).
and Know your employee.
                                                                    Implementation of the ISO 37001:2016 Anti-Bribery
Detection                                                           Management System (ABMS) is carried out by Bank Jatim
                                                                    through a series of the following steps:
The detection pillar is part of the fraud control system which      1. Establishment of the Anti-Bribery Management System
aims to contain steps to identify and find fraud in the Bank’s          Policy signed by all Directors
business activities, including policies and mechanisms for          2. Appointment of a competent work unit to oversee
whistleblowing, surprise audits, surveillance systems.                  compliance with anti-bribery practices, referred to as the
                                                                        Anti-Bribery Compliance Function
Reporting Investigations and Sanctions                              3. Training on awareness of the ISO 37001:2016 Anti-Bribery
                                                                        Management System (ABMS) attended by representatives
The Investigation, Reporting and Sanctions Pillar is part of the        from the relevant work units
fraud control system which aims to include steps for digging up     4. Establishment of internal regulations related to the Anti-
information (investigation), reporting system, and imposition of        Bribery Management System
sanctions for fraud in the Bank’s business activities.              5. Implementation of anti-bribery and gratuity socialization
                                                                        for Bank vendors
Monitoring Evaluation and Follow-up                                 6. Sign the Integrity Pledge by the Board of Commissioners,
                                                                        Board of Directors, and all employees
The Monitoring Evaluation and Follow-up Pillar is part of the       7. Implementation of Stage 1 and Stage 2 audits by the
fraud control system which aims to include steps to monitor             Certification Body
and evaluate fraud as well as follow-up mechanisms for frauds
that occur.




                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                      Annual Report 2023         485
Page 488
Due to the steps taken, Bank Jatim obtained the ISO 37001:2016               Year, to all administrators and work units.
Anti-Bribery Management System (ABMS) Certificate from the               4. Socialization of gratification to all Branch Managers,
Certification Body on December 18, 2023. With the acquisition                Operational Leaders, Sub-Branch Managers, and Branch
of the ISO Anti-Bribery Management System (ABMS) certificate,                General Suipervisors.
it is expected that :                                                    5. Socialization with the theme Synergy to Create Clean Bank
1. Raising the awareness among all executives and employees                  Jatim without Bribery and Gratification, to ± 250 vendors
      about the risk of bribery in Bank Jatim business processes             of Bank Jatim and Anti-Bribery Compliance Function team
2. Enhancing the trust of stakeholders and shareholders in                   (FKAP) through zoom meeting.
      Bank Jatim services.                                               6. Providing briefing material to new employees.
3. Improving Bank Jatim business performance                             7. Participation in the Gratification Control Unit (UPG) 2023,
                                                                             Performance realization Webinar organized by the Corruption
Gratification Policy                                                         Eradication Commission through zoom meeting.
                                                                         8. Participation in the Socialization of Guidelines for
In order to create an anti-corruption culture and provide a                  Monitoring and Evaluation of the 2023 Gratification
reference for the implementation of gratificiation control and               Control Program organized by the Corruption Eradication
reportin, Bank Jatim establishes a gratification policy through:             Commission through zoom meeting.
1. Decree of the Board of Directors Number 062/03/41/DIR/                9. Participation in E-learning to improve understanding of
    KPT/KEP dated July 21, 2023 concerning Standard Operating                gratification with 49 participants.
    Procedure (SOP) Gratification Control and Reporting.                 10. Dissemination commemorating World Anti-Corruption Day
2. Circular Letter Number 062/04/25/KPT/SE dated April 4, 2023               (Hakordia) through Bank Jatim Instagram and Videotron.
    concerning Technical Guidelines for Gratification Reporting.         11. Identifying risks/vulnerable points of gratification that
                                                                             could potentially occur in Bank Jatim banking activities.
The policy regulates the types of gratification objects that must        12. Conducting risk mitigation on the results of the
be reported, the types of gratification objects that are not                 identification of risks/vulnerable points of gratification that
required to be reported (excluded), the rights and protection of             could potentially occur in Bank Jatim banking activities.
the reporter, as well as the gratification reporting mechanism.          13. Implementation of Gratification Control Innovation, in forms of:
                                                                             a. Executive Summit of the Board of Commissioners
GRATIFICATION CONTROL MANAGEMENT                                                  and Directors of Bank Jatim, with the theme of GCG
                                                                                  as the Key to Healthy and Successful Company and
As an effort in controlling gratification, Bank Jatim implements                  presenting speakers from external parties.
several programs that refer to the provisions and procedures                 b. Implementation of SNI (Indonesian National Standard)
set by the Corruption Eradicatio Commission (KPK) including:                      ISO 37001 certification of Anti-Bribery Management
1. Gratification Dissemination                                                    System (SMAP)
2. Risk Identification / Vulnerable Points of Gratification and              c. Signing the Integrity Pact by the Board of
    Risk Mitigation                                                               Commissioners, Directors and all employees.
3. Gratification Control Innovation                                          d. Preparation of internal provisions to gratification.
4. Overcoming Gratification Reporting                                    14. Periodic monitoring of the acceptance and/or rejection of
                                                                             gratification that occur in all work units through appeals to
As for a number of steps taken by Bank Jatim to implement the                all work units to submit reports on the acceptance and/or
gratification control program include:                                       gratifications.
1. Installation of active directory wallpaper “Love Your                 15. Submission to the Corruption Eradication Commission
    Profession for Sincere Dedication Without Gratification”.                (KPK) of reports on the acceptance and/or rejection of
2. Submission of Appeal for the Prohibition of Giving Gratification          gratification submitted by all work units.
    at the Moment of the New Year 2023 and Eid al-Fitr 1444 H            16. The implementation of the Gratification Control Program
    published on the Instagram account of Bank Jatim.                        (PPG) is reported every semester to the Corruption
3. Submission of Appeal for the Prohibition of Gratification                 Eradication Commission (KPK) via www.gol.kpk.go.id.
    and the Precautionary Principle in Entering the Political


Socialization of Gratification Policy

Bank Jatim organizes gratification socialization to internal and external parties held on:

             Theme                                     Participants                                 Schedule                Socialization
                                                                                                                               Media

 Synergy to Create Clean Bank      All Branch Managers, Operational Leaders, Sub-Branch    June 7, 14, 16, 21, 23, 2023   Offline
 Jatim     without Bribery and     Managers, and General Branch Supervisors
 Gratification
                                   Approximately 250 Bank Jatim vendors and Anti-Bribery   August 24, 2023                Zoom Meeting
                                   Compliance Function (FKAP) team



        PT Bank Pembangunan Daerah Jawa Timur Tbk
486     Annual Report 2023
Page 489
                                                                                                                                       CORPORATE
                                                                                                                                      GOVERNANCE




Gratification Report in 2023

During 2023, there was 1 (one) report of receiving gratification and has received a determination from the Corruption Eradication
Commission (KPK) as a gratification that are not required to be reported.


Anti-Corruption Training/Socialization to Employees

                                                Theme                                                       Implementation Time              Number of
                                                                                                                                             participants

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Anti                 Friday, January 6, 2023
                                                                                                                                                 33
 Gratification

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Anti Gratification   Saturday, January 7, 2023            40

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Anti                 Sunday, January 8 ,2023
                                                                                                                                                 25
 Gratification

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Anti                 Thursday, January 12, 2023
                                                                                                                                                 32
 Gratification

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Anti                 Sunday, January 15 ,2023
                                                                                                                                                  6
 Gratifi-Cation

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Gratifica-           Saturday, August 26,2023
                                                                                                                                                 33
 Tion & Obedient Culture

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Gratifica-           Sunday, September 10,2023
                                                                                                                                                 33
 Tion & Obedient Culture

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Gratifica-           Thursday, September 21,
                                                                                                                                                 32
 Tion & Obedient Culture                                                                                    2023

 Legal Law of Banking, Anti Money Laundering and Combating The Financing of Terrorism, Gratifica-           Wednesday,    October       4,
                                                                                                                                                 31
 Tion & Obedient Culture                                                                                    2023



Management of State Official Wealth Reports


Bank Jatim has implemented Reporting on State Official Wealth                        d. Announcement of Mandatory Report of the State
Reports (LHKPN) since 2018 based on Directors Decree No.                                Officials Wealth Reports (LHKPN)
057/401/DIR/KPT/KEP dated December 31, 2018 concerning                               e. Power of Attorney
BPP LHKPN within PT Bank Jatim Tbk. As these provisions                           3. Administrations and Sanctions
have been revoked and regulated in Decree of the Board of                            a. Administrations
Directors No. 060/03/47/DIR/KPT/KEP dated November 25,                               b. Sanctions
2021 concerning SOP for State Assets Report (LHKPN). Decree
of the Board of Directors No. 060/03/47/DIR/KPT/KEP dated                         Mandatory Report of The State Assets Report
November 25, 2021 concerning the SOP for State Officials                          (LHKPN)
Wealth Reports (LHKPN) regulates the following:
1. Organization                                                                   In accordance with the Corruption Eradication Commission
    a. Cooperation between the Corruption Eradication                             Regulation No. 07 of 2016 concerning Procedures for Registration,
        Commission (KPK) and the Bank                                             Announcement and Examination of State Organizer’s Assets, as
    b. Management Unit of the State Officials Wealth Reports                      updated in the Corruption Eradication Commission Regulation No.
        (LHKPN)                                                                   2 of 2020 that State Organizers are required to submit the State
    c. Mandatory Report of the State Officials Wealth Reports                     Officials Wealth Reports (LHKPN) to the Corruption Eradication
        (LHKPN)                                                                   Commission. Therefore, those categorized as Mandatory Reports
2. Implementation Procedures                                                      within the Bank in accordance with Law No. 28 of 1999 are as
    a. Registration                                                               follows:
    b. Reporting Process                                                          1. Board of Commissioners
    c. Improvement Mechanism of the State Officials Wealth                        2. Sharia Supervisory Board
        Reports (LHKPN)                                                           3. Board of Directors




                                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                      Annual Report 2023              487
Page 490
4. SEVP                                                              4. Fasilitate PN/WL of LHKPN who experience technical
5. Division Leaders                                                     problems when using the e- LHKPN application;
6. Branch Managers                                                   5. Obtain information from the Corruption Eradication
                                                                        Commission on LHKPN who have not submitted LHKPN
Management Unit The State Officials Wealth                              and/or make improvements to LHKPN that have been
Reports (LHKPN)                                                         verified by the Corruption Eradication Commission;
                                                                     6. Monitoring the level of compliance of PN/WL in
In accordance with the Decree of the Board of Directors No.             implementing LHKPN reporting to the Corruption
059/258/DIR/KPT/KEP dated September 22, 2020 concerning                 Eradication Commission;
the Appointment of Agnecy Admins and Work Unit Admins                7. Have the independence to issue warning letters or
for E-LHKPN Application Management within Bank Jatim as                 administrative sanctions for PN/WL that do not sumbit
follows:                                                                LHKPN according to the predetermined time limit.
1. Agency Admin
     Managed by the Compliance Work Unit with organs:           2. Work Unit Admin
     1. The Supervisor is the Head of Compliance and               Managed by the work unit authorized to handle human
         Governance Division;                                      capital with organs:
     2. The person in charge is the Head of Compliance Sub-        1. The supervisor is the Head of Human Capital Division;
         Division;                                                 2. The person in charge is the Operational Sub Division
     3. The executor is the Governance and Business Ethics             Leader;
         Group.                                                    3. The executor is the Recruitment Data Group,
                                                                       Assessment Center and Personnel Data.
    Has duties and authorities which include:
    1. Coordinating with KPK regarding regulatory changes            Has duties and authorities including:
       and e-LHKPN application management within the                 Manage the e- LHKPN application (e-registration menu)
       Bank;                                                         within the Bank’s work unit through the e- LHKPN
    2. Conducting socialization to PN/WL on external                 application involving:
       provisions and internal provisions regarding LHKPN;           1. Updating PN/WL of LHKPN staffing data that has
    3. Managing the LHKPN e-registration application within              changed data within the Bank in the e- LHKPN
       the Bank through the e-LHKPN application including:               application (e-registration menu);
       a. Registering and activating PN/WL data that must            2. Coordinate with the agency admin for data changes
           report LHKPN using the e- LHKPN application                   within the Bank.
           (e-registration menu);
       b. Updating PN/WL of LHKPN employment data that          LHKPN reporting until the end of the 2023 period, as many as 63
           has changed data in the Bank environment in the      (sixty three) people and has been submitted to the Corruption
           e- LHKPN application (e-registration menu);          Eradication Commission in terms of LHKPN management with
       c. Verifying the updating of PN/WL of LHKPN data         the category of activeness in submitting reports in a timely
           carried out by the Work Unit Admin;                  manner over a period of 4 (four) years. As for the special LHKPN
                                                                reporting early served period 2023 as many as 16 (sixteen)
                                                                people and has been submitted to the Corruption Eradication
                                                                Commission in September and October 2023.
Total Internal Frauds and Remedies

                                                    Number of frauds committed (Internal)

                          Members of the Board of
  Internal Fraud in      Commissioners and Members            Permanent Employees             Non-Permanent Employees
       1 Year                 of the Directors

                         Previous Year   Current Year    Previous Year     Current Year      Previous Year      Current Year
                            (2022)          (2023)          (2022)            (2023)            (2022)             (2023)

 Total Fraud                   -                               15                12                 3                 1

 Resolved                      -                               15                12                 3                 1

 In the Settlement             -                                 -                                  -
 Process in the Bank's                                                                                                -
 Internal




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                     CORPORATE
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                                                         Number of frauds committed (Internal)

                          Members of the Board of
  Internal Fraud in      Commissioners and Members                 Permanent Employees               Non-Permanent Employees
       1 Year                 of the Directors

                         Previous Year      Current Year      Previous Year      Current Year       Previous Year       Current Year
                            (2022)             (2023)            (2022)             (2023)             (2022)              (2023)

 Not Resolved Yet               -                                     -                                    -

 Has Been Followed Up           -                                    5                                     1
                                                                                       -                                       -
 Through Legal Process


Provision of Funding for Social and/or                               An activity is considered to give rise to a conflict of interest if:
Political Activities                                                 1. Transactions for the provision of funds and procurement
                                                                        of goods/services occur between the Company and
A description related to corporate social responsibility is             Related Parties including the Board of Directors, Board of
submitted in the 2023 Sustainability Report. As for providing           Commissioners, Executive Officers, Decision-making Officers
funds for political activities, during 2023, Bank Jatim will not     2. There are officers/employees of the Company who have
provide funds for political activities or to political parties.         a first degree family relationship who are in 1 (one) line of
                                                                        management
Provision of Funds to Related Parties and                            3. Transactions with other affiliated parties
Provision of Large Funds
                                                                     Transactions and activities that have the potential to give rise to
Descriptions regarding Provision of Funds to Related Parties         conflicts of interest include:
and Provision of Large Funds are presented in the Management         1. Credit transactions are categorized as containing a conflict
Analysis and Discussion Chapter in this Annual Report.                   of interest if the Bank/deciding official is the same party or
                                                                         has a family, ownership, management, financial or interest
Bank Strategic Plan                                                      relationship with the credit recipient.
                                                                     2. Fund and service transactions are categorized as containing
A description of the Bank’s Strategic Plan is presented in the           a conflict of interest if the Bank/deciding official is the same
Management Discussion and Analysis Chapter in this Annual                party or has a family, ownership, management, financial or
Report.                                                                  interest relationship with the deposit customer or user of
                                                                         the Bank’s services so that the customer in question is given
Share Buyback and Bond Buyback                                           special conditions that are different from the treatment of
                                                                         customers in general.
During 2023, the Company will not carry out share buybacks           3. Goods and services transactions are categorized as
and bond buybacks.                                                       containing a conflict of interest if the Bank or the deciding
                                                                         official is the same party or has a family, ownership,
Transactions Containing Conflicts of                                     management, financial or interest relationship with the
Interest                                                                 provider of the goods/services so that the determination
                                                                         of the appointment or winner has potentially unreasonable
The forms of conflict of interests include:                              conditions causing detrimental effect to the bank or reduce
1. Gratification                                                         the bank’s profits.
2. Misappropriation of Assets                                        4. Management of human resources which has the potential
3. Misuse of confidential/important information                          for a conflict of interest if in a bank there are several people
4. Position Traps                                                        who have family relationships up to the second degree and
5. Granting special access that violates the procedure                   are at the same bank.
6. Unprofessional supervision                                        5. What is included in the category of prohibited conflicts
7. Subjective and not independent assessment                             of interest is the practice of giving and/or receiving gifts,
8. Decision on licensing, allocation/budget, investment                  bribes and the like which are reasonably suspected to be
9. Determination of partners (procurement)                               detrimental to the Company’s interests, contrary to sound
10. Recruitment, hiring, performance appraisal                           business ethics and/or contrary to applicable law.
11. Use of information
12. Commercialization of public services




                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                       Annual Report 2023          489
Page 492
In an effort to avoid conflicts of interest, all parties, both        Prevention of Insider Trading
employees and company leaders, must comply with the
code of ethics. If employees and company leaders become               The provisions governing Insider Trading actions have been
aware of practices that lead to a conflict of interest, they must     regulated in the Corporate Secretary Investor Management
immediately report it to their superiors.                             SOP Chapter II, presented as follows:


The main elements that must be fulfilled in managing conflicts        TRADING INSIDER CRITERIA
of interest of the company, employees and company leaders
are as follows:                                                       This practice occurs when parties outside the bank buy or
1. Comply with and comply with applicable laws and                    sell bank securities based on information from insiders that is
    regulations, including company culture.                           not published. This work procedure prohibits insider actions
2. Avoid activities that could cause a conflict of interest.          that encourage/influence other people or provide inside
3. Store and maintain the confidentiality of company                  information to other parties.
    information and information with parties who have business        a. Insider Trading Criteria
    relationships with the company. Compliance with the                    1. Bank insider, namely:
    company’s code of conduct is very important to maintain                   a. Commissioner, Director or Bank Employee;
    and advance the company’s reputation.                                     b. The main shareholder of the Bank;
                                                                              c. Individuals who because of their position or
Conflict of Interest Disclosure                                                     profession or because of their business relationship
1. If there is a conflict of interest, officials and/or employees                   with the issuer or public company enable that
   who have a conflict of interest do not use their rights/                         person to obtain information; or
   authority in making decisions and are required to disclose                 d. A party who within the last 6 (six) months is no
   the said conflict of interest.                                                   longer a party as referred to in letters a, b, c above.
2. If there is a conflict of interest in the field of credit and/or        2. Have inside information, where the information or
   operations at a branch office, officials and/or employees                  material facts are not yet available to the public.
   who have a conflict of interest do not use their rights/                   Insiders are prohibited:
   authority in making decisions.                                             1. Influencing other parties to buy or sell the securities
3. If a conflict of interest occurs in an employee/officer                          in question;
   according to their respective fields, the employee/official                2. Providing inside information to any party who
   does not use his authority in making decisions and then the                      reasonably suspects may use the information in
   decision-making process is handed over to his superiors in                       question to purchase or sell securities.
   stages.                                                                    All of the two elements mentioned above must be met
4. If a decision still has to be taken, the official or employee              in order to be subject to insider trading.
   involved in the decision-making process must prioritize the        b. Sanctions for Insider Trading
   economic interests of the Bank from losses that may arise               • Article 102 Law No. 8 of 1995
   or the possibility of reducing the Bank’s profits.                         Imposing administrative sanctions in the form of:
5. Required to disclose the condition of the conflict of interest             - Written Warning;
   which is attached to the Minutes of Meeting along with                     - Fines, namely the obligation to pay a certain
   documentation containing considerations for making the                           amount of money;
   decision.                                                                  - Restrictions on business activities;
                                                                              - Suspension of business;
During 2023, there was no transactions containing conflicts of                - Revocation of business permits;
interest.                                                                     - Cancellation of consent; And
                                                                              - Cancellation of registration.
Internal Disputes                                                          • Article 104 of Law No.8 of 1995
                                                                              Any party who violates the provisions as intended in
During 2023 there were no internal disputes caused by the                     Article 90, Article 91, Article 92, Article 93, Article 95,
remuneration policy.                                                          Article 96, Article 97 paragraph (1), and Article 98 is
                                                                              threatened with imprisonment for a maximum of 10
                                                                              (ten) years and a fine of up to IDR 15,000,000,000
                                                                              (fifteen billion rupiah).




        PT Bank Pembangunan Daerah Jawa Timur Tbk
490     Annual Report 2023
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                                                                                                                                 GOVERNANCE




During 2023, Bank Jatim will not have Insider Trading                        3. Corporate Governance Information such as:
                                                                                a. Vision and mission of the Bank
Transparency of Financial and Nonfinancial                                      b. Composition and Profile of the Board of Commissioners
Conditions                                                                           and Board of Directors
                                                                                c. Guidelines and Rules of Committee
Bank Jatim has fulfilled its obligation to Bank Indonesia to                    d. Corporate Governance Practices
conduct transparency of financial and non-financial conditions               4. Information on Bank’s Products and Services such as e-forms
in accordance with applicable regulations, publication of                       of credit along with a wide spread of Office Networks
information submission through print media and the Bank’s                       making it easier for customers, investors to access such
website as follows:                                                             information.
1. Monthly and Quarterly Financial Statements that have                      5. Information that aims to educate customers such as
    been submitted and published to the Regulator and on the                    banking services, banking mediation, customer complaints
    Bank’s website.                                                             mechanisms, banking security tips and magazines/bulletins
2. Annual Reports that have been submitted and published to                     for Bank Jatim which can be downloaded via the Company’s
    the Regulator and on the Bank’s website.                                    website.




Implementation of Sustainable Finance, Including Implementation of Social and
Environmental Responsibility

An explanation of the implementation of sustainable finance, including the implementation of social and environmental responsibility,
has been explained in the 2023 Bank Jatim Sustainability Report.




Implementation of Public Company
Governance Guidelines

      No                          Aspect; Principle; Recommendation                                                  Comply or Explain

 A.        ASPECT 1: PUBLIC COMPANY RELATIONS WITH SHAREHOLDERS IN
           GUARANTEEING SHAREHOLDERS’ RIGHTS

 A.1.          PRINCIPLE 1: INCREASING THE VALUE OF HOLDING A GENERAL MEETING
               OF SHAREHOLDERS (GMS).

 A.1.1.              Recommendation 1 :                                                                    Comply
                     Public companies have voting methods or technical procedures both open and
                     closed that promote independence and the interests of shareholders.                   Bank Jatim has procedures for the General
                                                                                                           Meeting of Shareholders (GMS) which are
                     Explanation :                                                                         regulated in the Company’s Articles of
                     Every share with voting rights issued has one voting right (one share one vote).      Association Deed number 15 dated May
                     Shareholders can use their voting rights when making decisions, especially when       09, 2023
                     making decisions by voting. However, the decision-making mechanism by way
                     of open and closed voting has not been regulated in detai.
                                                                                                           Each shareholder is only given 1 (one) vote,
                     Public companies are recommended to have a voting procedure in making                 representing the entire number of shares
                     decisions on a GMS agenda. The voting procedure must maintain the                     he owns. Vote counting will be carried out
                     independence or freedom of shareholders. For example, in open voting,                 using a “raise hand and hand over voting
                     voting is carried out by raising hands in accordance with the choice instructions     rights” mechanism.
                     offered by the chairman of the GMS. Meanwhile, closed voting is carried out for
                     decisions that require secrecy or at the request of shareholders, by using a ballot
                     card or by using electronic voting.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023              491
Page 494
  No                             Aspect; Principle; Recommendation                                                 Comply or Explain

A.1.2.               Recommendation 2 :                                                                  Comply
                     All members of the Board of Directors and members of the Public Company’s
                     Board of Commissioners attend the Annual GMS.                                       At the 2022 Fiscal Year GMS, all members
                                                                                                         of the Board of Directors and Board of
                     Explanation :                                                                       Commissioners were present.
                     The purpose of the presence of all members of the Board of Directors and
                     members of the Board of Commissioners of the Public Company is that each
                     member of the Board of Directors and Board of Commissioners can observe,
                     explain, and answer directly the problems that occur or questions raised by
                     shareholders regarding the agenda at the GMS.

A.1.3.               Recommendation 3 :                                                                  Comply
                     The summary of the minutes of the GMS is available on the Public Company
                     Website for at least 1 (one) year.                                                  The minutes of the AGMS and EGMS in
                                                                                                         Indonesian and English are available on
                     Explanation :                                                                       the Website and can be downloaded until
                     Based on the provisions in Article 34 paragraph (2) of the Financial Services       the 2022 fiscal year.
                     Authority Regulation Number 32/POJK.04/2014 concerning the Plan and
                     Implementation of a Public Company General Meeting of Shareholders, the
                     Public Company is required to make a summary of the minutes of the GMS in
                     Indonesian and foreign languages (at least in in English), as well as announced 2
                     (two) working days after the GMS is held to the public, one of which is through
                     the Public Company Website. Availability of the summary of the minutes of the
                     GMS on the Public Company Website provides an opportunity for shareholders
                     who are not present to obtain important information in holding the GMS
                     easily and quickly. Therefore, the provision regarding the minimum period for
                     the availability of the summary of the minutes of the GMS on the Website is
                     intended to provide sufficient time for shareholders to obtain such information.

A.2.           PRINCIPLE 2 : IMPROVING THE QUALITY OF PUBLIC COMPANY
               COMMUNICATION WITH SHAREHOLDERS OR INVESTORS.

A.2.1.               Recommendation 4 :                                                                  Comply
                     Public companies have a communication policy with shareholders or investors.
                                                                                                         Bank Jatim has a Communication Policy
                     Explanation :                                                                       with shareholders or investors as stipulated
                     The existence of communication between a Public Company and shareholders            in the Directors Decree number 062/03/40/
                     or investors is intended so that shareholders or investors get a clearer            DIR/CSE/KEP regarding SOP Investor
                     understanding of information that has been published to the public, such as         Management.
                     periodic reports, information disclosure, business conditions or prospects and
                     performance, as well as the implementation of corporate governance Open.
                     Besides that, shareholders or investors can also submit input and opinions to the
                     management of the Public Company
                     .
                     The communication policy with shareholders or investors shows the Public
                     Company’s commitment to communicating with shareholders or investors.
                     The policy may include strategies, programs and timing of communications, as
                     well as guidelines that support shareholders or investors to participate in these
                     communications.

A.2.2.               Recommendation 5 :                                                                  Comply
                     Public Companies disclose their communication policies with shareholders or
                     investors on the Website.                                                           The Communication Policy with Investors
                                                                                                         as described in recommendation 4 can
                     Explanation :                                                                       be accessed by the public through the
                     Disclosure of communication policy is a form of transparency of the Public          Bank Jatim website at the following link:
                     Company’s commitment to provide equality to all shareholders or investors           https://www.bankjatim.co.id/id/tatakelola-
                     in the implementation of communication. Disclosure of this information also         company/kebijakan
                     aims to increase the participation and role of shareholders or investors in the
                     implementation of public company communication programs.




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     No                        Aspect; Principle; Recommendation                                                     Comply or Explain

B.        ASPECT 2: FUNCTIONS AND ROLES OF THE BOARD OF COMMISSIONERS

B.1.         PRINCIPLE 3: STRENGTHENING THE MEMBERSHIP AND COMPOSITION OF
             THE BOARD OF COMMISSIONERS.

B.1.1.            Recommendation 6:                                                                        Comply
                  Determining the number of members of the Board of Commissioners takes into
                  account the condition of the Public Company.                                             Determination       the      Board      of
                                                                                                           Commissioners members of Bank Jatim
                  Explanation:                                                                             has taken into the conditions of the Public
                  The number of members of the Board of Commissioners can affect the                       Company including the number of assets,
                  effectiveness of carrying out the duties of the Board of Commissioners.                  achievement of company performance,
                  Determination of the number of members of the Public Company Board                       vision mission, goals and strategic
                  of Commissioners must refer to the provisions of the applicable laws and                 directions, and also the provisions of the
                  regulations, which consists of at least 2 people based on the provisions of the          Financial Services Authority Regulation
                  Financial Services Authority Regulation Number 33/POJK.04/2014 concerning                Number 33/POJK.04/2014 concerning
                  Directors and Board of Commissioners of Issuers or Public Companies. In                  Directors and Board of Commissioners of
                  addition, it is also necessary to consider the condition of the Public Company           Public Companies. This number has also
                  which includes among other things the characteristics, capacity and size, as             been adjusted to the number of Board
                  well as the achievement of goals and the fulfillment of different business needs         of Directors members, as well as the
                  among Public Companies. However, the number of members of the Board of                   effectiveness of the implementation of
                  Commissioners that is too large has the potential to disrupt the effectiveness of        the Board of Commissioners’ supervisory
                  the implementation of the Board of Commissioners’ functions.                             function.

B.1.2.            Recommendation 7:                                                                        Comply
                  Determining the composition of members of the Board of Commissioners takes
                  into account the diversity of skills, knowledge and experience required.                 Referring to Deed Number 22 dated
                                                                                                           February 20, 2018 regarding the Minutes
                  Explanation:                                                                             of the Annual Shareholders Meeting (GMS)
                  The composition of the Board of Commissioners is a combination of                        for the 2017 Fiscal Year, “The Remuneration
                  characteristics both in terms of the organs of the Board of Commissioners and            and Nomination Committee has screened
                  individual members of the Board of Commissioners, in accordance with the                 Bank Jatim internal candidates, as
                  needs of the Public Company. These characteristics can be reflected in the               well as from external parties using the
                  determination of the expertise, knowledge and experience needed in carrying              following criteria assessment: integrity,
                  out supervisory and advisory duties by the Board of Commissioners of the Public          competence , understanding of banking
                  Company. The composition that has taken into account the needs of the Public             and macroeconomics, understanding of
                  Company is a positive thing, especially regarding decision making in the context         the East Java economic condition, internal
                  of implementing the supervisory function which is carried out by considering a           and external banking provisions.
                  wider variety of aspects.

B.2.         PRINCIPLE 4: IMPROVING THE QUALITY OF IMPLEMENTATION OF DUTIES
             AND RESPONSIBILITIES OF THE BOARD OF COMMISSIONERS.

B.2.1.            Recommendation 8:                                                                        Comply
                  The Board of Commissioners has a self-assessment policy to assess the
                  performance of the Board of Commissioners.                                               The Board of Commissioners has
                                                                                                           a self-assessment policy to assess
                  Explanation:                                                                             the performance of the Board of
                  The Board of Commissioners’ self-assessment policy is a guideline used as a              Commissioners which is regulated in the
                  form of accountability for assessing the collegial performance of the Board              Board of Commissioners Decree Number
                  of Commissioners. The intended self-assessment or self-assessment is carried             059/009/DK/KEP dated December 22,
                  out by each member to assess the collegial performance of the Board of                   2020 concerning Amendments to the
                  Commissioners, and not to assess the individual performance of each member               Board of Commissioners Decree Number
                  of the Board of Commissioners. With this self-assessment, it is hoped that               059/005/DK/KEP dated April 29, 2020
                  each member of the Board of Commissioners can contribute to improving the                concerning the Working Paper for the
                  performance of the Board of Commissioners on an ongoing basis.                           Performance Assessment of the Board of
                                                                                                           Commissioners of PT Bank Pembangunan
                  In this policy, it can include assessment activities carried out along with their aims   Daerah Jawa Timur Tbk
                  and objectives, time for implementation on a regular basis, and benchmarks
                  or assessment criteria used in accordance with the recommendations given by
                  the nomination and remuneration function of the Public Company, where this
                  function is required in the Authority Regulation. Financial Services Number 34/
                  POJK.04/2014 concerning the Nomination and Remuneration Committee of
                  Issuers or Public Companies.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023              493
Page 496
  No                              Aspect; Principle; Recommendation                                                  Comply or Explain

B.2.2.               Recommendation 9:                                                                     Comply
                     Self-assessment policy to assess the performance of the Board of Commissioners,
                     disclosed through the Public Company Annual Report.                                   The Guidelines for the Performance
                                                                                                           Assessment of the Board of Commissioners
                     Explanation:                                                                          of PT Bank Pembangunan Daerah Jawa
                     Disclosure of the self-assessment policy on the performance of the Board of           Timur Tbk are disclosed in the Annual
                     Commissioners is carried out not only to fulfill the aspect of transparency as a      Report.
                     form of accountability for the implementation of their duties, but also to provide
                     confidence especially to shareholders or investors regarding the efforts that
                     need to be made to improve the performance of the Board of Commissioners.
                     With this disclosure, shareholders or investors know the check and balance
                     mechanism on the performance of the Board of Commissioners.

B.2.3.               Recommendation 10:                                                                    Explain
                     The Board of Commissioners has a policy regarding the resignation of members
                     of the Board of Commissioners if they are involved in financial crimes.               The resignation policy for the Board
                                                                                                           of Commissioners only if the person
                     Explanation:                                                                          concerned is a state official who is a
                     The policy of resigning members of the Board of Commissioners who are                 member of the Board of Commissioners,
                     involved in financial crimes is a policy that can increase stakeholder confidence     then the person concerned is required to
                     in a Public Company, so that the integrity of the company will be maintained.         resign from his position in government,
                     This policy is needed to help smooth the legal process and so that the legal          who is involved in financial crimes is
                     process does not interfere with the course of business activities. In addition, in    a policy that can increase stakeholder
                     terms of morality, this policy builds an ethical culture within the Public Company.   confidence in a Public Company.
                     These policies can be included in the Guidelines or Code of Ethics that apply to
                     the Board of Commissioners.

                     Furthermore, what is meant by being involved in a financial crime is the
                     existence of a convict status against a member of the Board of Commissioners
                     from the competent authority. Financial crimes referred to include manipulation
                     and various forms of embezzlement in financial service activities as well as
                     Money Laundering Crimes as referred to in Law Number 8 of 2010 concerning
                     Prevention and Eradication of Money Laundering Crimes.

B.2.4.               Recommendation 11:                                                                    Comply
                     The Board of Commissioners or Committees that carry out the Nomination and
                     Remuneration functions develop a succession policy in the Nomination process          The succession policy in the nomination
                     for members of the Board of Directors.                                                process for members of the Board
                                                                                                           of Directors is regulated in the
                     Explanation :                                                                         Board of Commissioners Committee
                     Based on the provisions of the Financial Services Authority Regulation Number         Implementation     Guidelines   number
                     34/POJK.04/2014 concerning the Nomination and Remuneration Committee                  058/002/DK/KEP dated April 23, 2019
                     of Issuers or Public Companies, the committee that carries out the nomination         and its amendments in accordance with
                     function has the duty to develop the policies and criteria needed in the              the Decree of the Board of Commissioners
                     nomination process for candidates for members of the Board of Directors. One          Number 060/02/DK/KEP dated January
                     of the policies that can support the Nomination process as intended is the            15, 2021.
                     succession policy for members of the Board of Directors. The policy regarding
                     succession aims to maintain the continuity of the process of regeneration or
                     regeneration of leadership in the company in order to maintain business
                     continuity and the company’s long-term goals.




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     No                        Aspect; Principle; Recommendation                                                      Comply or Explain

C.        ASPECT 3: FUNCTIONS AND ROLES OF THE BOARD OF DIRECTORS

C.1.         PRINCIPLE 5: STRENGTHENING THE MEMBERSHIP AND COMPOSITION OF
             THE BOARD OF DIRECTORS.

C.1.1.            Recommendation 12:                                                                       Comply
                  Determining the number of members of the Board of Directors takes into
                  account the condition of the Public Company and effectiveness in decision                The determination of the members of the
                  making.                                                                                  Board of Directors, totaling 7 (seven) Directors
                                                                                                           with the current composition of 5 (five) people,
                  Explanation:                                                                             has taken into account the condition of the
                  As a company organ that is authorized to manage the company, the determination           Public Company, including the number of
                  of the number of Directors greatly influences the performance of the Public              assets, company performance achievements,
                  Company. Thus, the determination of the number of members of the Board of                etc. as well as the provisions of Financial
                  Directors must be carried out through careful consideration and must refer to            Services Authority Regulation Number 33/
                  the provisions of the applicable laws and regulations, which are based on the            POJK.04/ 2014 concerning Directors and
                  Financial Services Authority Regulation Number 33/ POJK.04/2014 concerning               Board of Commissioners of Issuers or Public
                  the Directors and Board of Commissioners of Issuers or Public Companies at               Companies. This number has also been
                  least consists of 2 (two) people. Besides that, the determination of the number          adjusted to reflect the 6 (six) members of
                  of Directors must be based on the need to achieve the goals and objectives               the Bank’s Board of Commissioners with the
                  of the Public Company and adjusted to the conditions of the Public Company               current composition of 3 (three) people and
                  which includes the characteristics, capacity and size of the Public Company and          the effectiveness of decision making carried
                  how the Board of Directors’ decision-making effectiveness is achieved.                   out by the Board of Directors.

C.1.2.            Recommendation 13:                                                                       Comply
                  Determining the composition of members of the Board of Directors takes into
                  account the diversity of expertise, knowledge and experience required.                   The determination of the composition
                                                                                                           Board of Directors meber has taken into
                  Explanation:                                                                             account the diversity of skills, knowledge
                  Like the Board of Commissioners, the diversity in the composition of the                 and experience required. Board of
                  members of the Board of Directors is a combination of desired characteristics            Directors member who are appointed at
                  both in terms of the organs of the Board of Directors and individual members of          the GMS have met the requirements set
                  the Board of Directors, in accordance with the needs of a Public Company. The            out, including the general requirements
                  combination is determined by taking into account the appropriate expertise,              and special requirements as stipulated in
                  knowledge and experience in the division of duties and functions of the Board            the Articles of Association and Standard
                  of Directors in achieving the goals of the Public Company. Thus, consideration of        Operating Procedure (SOP) for the
                  the combination of characteristics referred to will have an impact on the accuracy       Selection and/or Replacement of the Board
                  of the nomination process and collegial appointment of individual members of             of Commissioners and Board of Directors
                  the Board of Directors or the Board of Directors.                                        member. Board of Directors members have
                                                                                                           also obtained approval from the Financial
                                                                                                           Services Authority regarding the results of
                                                                                                           the fit and proper test as stipulated based
                                                                                                           on the Decree of Members of the Board
                                                                                                           of Commissioners of the Financial Services
                                                                                                           Authority.

C.1.3.            Recommendation 14:                                                                       Comply
                  Members of the Board of Directors in charge of accounting or finance have expertise
                  and/or knowledge in accounting.                                                          Finance Director Profile

                  Explanation:                                                                             Name:
                  The Financial Report is a management accountability report on the management             Edi Masrianto (2022-present)
                  of resources owned by a Public Company, which must be prepared and presented             Education:
                  in accordance with generally accepted Financial Accounting Standards in Indonesia        - Bachelor of Management Economics,
                  as well as related OJK regulations, including laws and regulations in the Capital        Jember University, 1989
                  Market sector which regulates the presentation and disclosure of Public Company          - Master of Agribusiness Management,
                  Financial Statements. Pursuant to laws and regulations in the Capital Markets sector     Gajah Mada University, 2004
                  governing the responsibilities of the Board of Directors for Financial Statements, the
                  Board of Directors is jointly and severally responsible for the Financial Statements,    Members of the Board of Directors in
                  which are signed by the President Director and members of the Board of Directors         charge of accounting or finance have
                  in charge of accounting or finance.                                                      expertise and/or knowledge in accounting.

                  Thus, the disclosure and preparation of financial information presented in the           The Board of Directors has submitted
                  financial statements will depend heavily on the expertise and/or knowledge of            financial reports at the Annual GMS and
                  the Board of Directors, particularly members of the Board of Directors in charge         obtained approval from the GMS.
                  of accounting or finance. The qualifications of expertise and/or knowledge in
                  accounting that at least belong to the said members of the Board of Directors
                  can provide confidence in the preparation of the Financial Statements, so that
                  the Financial Statements can be relied on by stakeholders as a basis for making
                  economic decisions regarding the Public Company in question. Such expertise and/
                  or knowledge can be proven by educational background, training certification, and/
                  or related work experience.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 Annual Report 2023                  495
Page 498
  No                              Aspect; Principle; Recommendation                                                   Comply or Explain

C.2.           PRINCIPLE 6: IMPROVING THE QUALITY OF THE IMPLEMENTATION OF THE
               BOARD OF DIRECTORS’ DUTIES AND RESPONSIBILITIES.

C.2.1.               Recommendation 15:                                                                     Comply
                     The Board of Directors has a self-assessment policy to assess the performance
                     of the Board of Directors.                                                             The Board of Directors has a self-
                                                                                                            assessment      policy   to    assess   the
                     Explanation:                                                                           performance of the Board of Directors as
                     Like the Board of Commissioners, the Board of Directors’ self-assessment               regulated in the Directors’ Decree number
                     policy is a guideline used as a form of accountability for evaluating the              059/128/DIR/PRS/KEP dated May 11, 2020
                     performance of the Board of Directors collegially. The intended selfassessment         concerning Key Performance Indicators
                     or self-assessment is carried out by each member of the Board of Directors to          (KPI) for the Board of Directors of PT Bank
                     assess the collegial performance of the Board of Directors, and not to assess          Pembangunan Daerah Jawa Timur Tbk.
                     the individual performance of each member of the Board of Directors. With
                     this self-assessment, it is hoped that each member of the Board of Directors
                     can contribute to improving the performance of the Board of Directors on an
                     ongoing basis.

                     This policy may include assessment activities carried out along with their
                     aims and objectives, the time of implementation on a regular basis, and the
                     benchmarks or assessment criteria used in accordance with the recommendations
                     given by the nomination and remuneration function of the Public Company,
                     where the formation of this function is required in the Authority Regulation.
                     Financial Services Number 34/POJK.04/2014 concerning the Nomination and
                     Remuneration Committee of Issuers or Public Companies.

C.2.2.               Recommendation 16:                                                                     Comply
                     The self-assessment policy to assess the performance of the Board of Directors
                     is disclosed in the Public Company’s annual report.                                    Performance Assessment of the Board
                                                                                                            of Directors of PT Bank Pembangunan
                     Explanation:                                                                           Daerah Jawa Timur Tbk. disclosed in the
                     Disclosure of the self-assessment policy on the performance of the Board of            Annual Report.
                     Directors is carried out not only to fulfill the transparency aspect as a form
                     of accountability for carrying out their duties, but also to provide important
                     information for improvement efforts in the management of the Public Company.
                     This information is very useful in giving confidence to shareholders or investors
                     that there is certainty that the management of the company will continue to be
                     carried out in a better direction. With this disclosure, shareholders or investors
                     know the check and balance mechanism on the performance of the Board of
                     Directors.

C.2.3.               Recommendation 17:                                                                     Explain
                     The Board of Directors has a policy regarding the resignation of members of the        The resignation policy for Board of
                     Board of Directors if they are involved in financial crimes.                           Directors members is regulated in the
                                                                                                            Articles of Association and Work Guidelines
                     Explanation:                                                                           for the Board of Directors. The Articles of
                     The policy of resigning members of the Board of Directors who are involved in          Association and Work Guidelines for the
                     financial crimes is a policy that can increase stakeholder confidence in a Public      Board of Directors also stipulate provisions
                     Company, so that the integrity of the company will be maintained. This policy is       related to the termination of the positions
                     needed to help smooth the legal process and so that the legal process does not         of members of the Board of Directors and
                     interfere with the course of business activities. In addition, in terms of morality,   dismissal of members of the Board of
                     this policy will build an ethical culture within the Public Company. These policies    Directors.
                     can be included in the Guidelines or Code of Ethics that apply to the Board of
                     Directors.                                                                             The Ethical Culture Policy has been
                                                                                                            regulated in the Board of Directors Decree
                     Furthermore, what is meant by being involved in a financial crime is the               Number 060/019/ DIR/PRS/KEP dated
                     existence of a convict status against a member of the Board of Directors from          January 26, 2021 concerning Guidelines
                     the competent authority. Financial crimes include manipulation and various             for the Implementation of Behavior,
                     forms of embezzlement in financial service activities as well as money laundering      Work Ethics and Business of PT Bank
                     as referred to in Law Number 8 of 2010 concerning Prevention and Eradication           Pembangunan Daerah Jawa Timur Tbk.
                     of Money Laundering Crimes.




         PT Bank Pembangunan Daerah Jawa Timur Tbk
496      Annual Report 2023
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                                                                                                                                 CORPORATE
                                                                                                                                GOVERNANCE




     No                        Aspect; Principle; Recommendation                                                   Comply or Explain

D.        ASPECT 4: STAKEHOLDER PARTICIPATION

D.1.         PRINCIPLE 7: IMPROVING CORPORATE GOVERNANCE ASPECTS THROUGH
             STAKEHOLDER PARTICIPATION.

D.1.1.            Recommendation 18:                                                                     Comply
                  Public Company has a policy to prevent insider trading.
                                                                                                         Bank Jatim has a policy to prevent insider
                  Explanation:                                                                           trading which is regulated in Directors’
                  A person who has inside information is prohibited from engaging in a Securities        Decree Number 057/008/DIR/KEP/TRE
                  transaction using inside information as referred to in the Law on Capital Markets.     dated January 11, 2018 concerning Market
                  Public companies can minimize the occurrence of insider trading through                Code of Ethics for Treasury Activities.
                  prevention policies, for example by strictly separating confidential data and/
                  or information from public ones, and dividing the tasks and responsibilities for
                  managing the said information proportionally and efficiently.

D.1.2.            Recommendation 19:                                                                     Comply
                  Public Companies have anti-corruption and anti-fraud policies.
                                                                                                         Bank Jatim has several policies related
                  Explanation:                                                                           to Corruption Prevention, including the
                  The anti-corruption policy is useful to ensure that the Public Company’s business      Implementation of Anti-Fraud Strategies,
                  activities are carried out legally, prudently, and in accordance with the principles   Work and Business Ethical Behavior (Code
                  of good governance. The policy can be part of the code of ethics, or in a separate     of Conduct), Conflict of Interest Guidelines,
                  form. This policy may include, among other things, programs and procedures             Corporate Culture, Gratification Policy,
                  carried out in dealing with corruption practices, kickbacks, fraud, bribery and/       Employee Discipline Regulations, Market
                  or gratuities in a public company. The scope of the policy must describe the           Code of Ethics Guidelines, and Obligations
                  prevention of the Public Company from all corrupt practices, whether giving or         Guidelines. Maintain Confidentiality of
                  receiving from other parties.                                                          Data and Information.

D.1.3.            Recommendation 20:                                                                     Comply
                  Public Company has a policy regarding the selection and capacity building of
                  suppliers or vendors.                                                                  Bank Jatim has a policy regarding the
                                                                                                         procurement of goods and services which
                  Explanation:                                                                           is regulated in the Decree of the Directors
                  Policies regarding supplier or vendor selection are useful for ensuring that a         number 060/03/34/DIR/ UMM/KEP dated
                  Public Company obtains the goods or services it needs at competitive prices            October 04, 2021 concerning SOP for
                  and good quality. Meanwhile, supplier or vendor capacity building policies are         Procurement of Goods or Services.
                  useful for ensuring that the supply chain runs efficiently and effectively. The
                  ability of suppliers or vendors to supply/fulfill the goods or services required by
                  the company will affect the quality of the company’s output.

                  Thus, the implementation of these policies can guarantee the continuity of
                  supply, both in terms of quantity and quality required by the Public Company.
                  The scope of this policy includes criteria for selecting suppliers or vendors,
                  transparent procurement mechanisms, efforts to increase the capacity of
                  suppliers or vendors, and fulfillment of rights related to suppliers or vendors.

                  The Company has a policy regarding the procurement of goods and services
                  which contains the selection and capacity building of suppliers or vendors as
                  stipulated in the Procurement Guidelines standard.

D.1.4.            Recommendation 21:                                                                     Explain
                  Public companies have a policy on fulfilling creditors’ rights.
                                                                                                         Bank Jatim explains the creditor’s rights in
                  Explanation:                                                                           the Credit Agreement (PK), including;
                  The policy on fulfilling creditors’ rights is used as a guide in making loans to       1. The bank ensures that the creditor
                  creditors. The purpose of the intended policy is to maintain the fulfillment of           receives the principal and interest on the
                  rights and maintain creditors’ trust in the Public Company. The policy includes           loan according to the agreed schedule;
                  considerations in entering into agreements, as well as follow-up in fulfilling the     2. The bank ensures that the creditor
                  obligations of the Public Company to creditors.                                           receives the loan usage report;
                                                                                                         3. The bank ensures that creditors receive
                                                                                                            fines for payments that exceed the
                                                                                                            agreed schedule;
                                                                                                         4. The Bank ensures that principal and
                                                                                                            interest payments on loans are not
                                                                                                            subject to penalties if the payment
                                                                                                            schedule falls on a holiday and is paid
                                                                                                            on the next working day;




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               Annual Report 2023               497
Page 500
     No                            Aspect; Principle; Recommendation                                                   Comply or Explain

D.1.5.                Recommendation 22:                                                                     Comply
                      Public companies have a whistleblowing system policy.
                                                                                                             The Public Company has a whistleblowing
                      Explanation:                                                                           system policy which is clearly stated in
                      A well-developed whistleblowing system policy will provide certainty of                the Directors’ Decree Number 060/22/
                      protection for witnesses or reporters of an indication of violations committed         DIR/AUI/KEP dated January 28, 2021
                      by employees or management of the Public Company. The implementation of                concerning Implementation Guidelines
                      these system policies will have an impact on the formation of a culture of good        for the Implementation of PT’s Anti-Fraud
                      corporate governance. The whistleblowing system policy includes, among other           Strategy. East Java Regional Development
                      things, types of violations that can be reported through the whistleblowing            Bank Tbk
                      system, methods of complaint, protection and guarantee of confidentiality of
                      reporters, handling of complaints, parties managing complaints, and the results
                      of complaints handling and follow-up.

D.1.6.                Recommendation 23:                                                                     Comply
                      Public companies have a policy of providing long-term incentives to Directors
                      and employees.                                                                         Public Companies have a policy of
                                                                                                             providing long-term incentives to Directors
                      Explanation:                                                                           and employees which is clearly expressed
                      Long-term incentives are incentives based on achieving long-term performance.          in Board of Commissioners Decree No.
                      The long-term incentive plan has the premise that the company’s long-term              059/003/DK/KEP dated April 27, 2020
                      performance is reflected by the growth in the value of the company’s shares or         concerning Implementation of Governance
                      other long-term targets. Long-term incentives are useful in order to maintain          for Providing Remuneration for the Board
                      loyalty and provide motivation to the Board of Directors and employees                 of Commissioners and Directors and
                      to improve their performance or productivity which will have an impact on              Facilities at PT Bank Pembangunan Daerah
                      increasing the company’s performance in the long term.                                 Jawa Timur Tbk.

                      The existence of a long-term incentive policy is a real commitment of the Public
                      Company to encourage the implementation of long-term incentives for Directors
                      and Employees with conditions, procedures and forms that are adjusted to the
                      long-term objectives of the Public Company. The intended policy may include,
                      among other things, the intent and purpose of providing long-term incentives,
                      the conditions and procedures for granting incentives, and the conditions and
                      risks that must be considered by the Public Company in granting incentives. This
                      policy can also be included in the existing Public Company remuneration policy.

E.           ASPECT 5: INFORMATION DISCLOSURE

E.1.            PRINCIPLE 8: IMPROVING THE IMPLEMENTATION OF INFORMATION
                DISCLOSURE.

E.1.1.                Recommendation 24:                                                                     Comply
                      Public Companies take advantage of the use of information technology more
                      broadly besides Websites as a medium for information disclosure.                       The Bank utilizes information technology
                                                                                                             more broadly besides the Website as
                      Explanation:                                                                           a medium for information disclosure
                      The use of information technology can be useful as a medium for information            which increases the effectiveness of
                      disclosure. The disclosure of information that is carried out is not only disclosure   the dissemination of such information,
                      of information that has been regulated in laws and regulations, but also other         including the following:
                      information related to Public Companies that are felt to be useful for the             • Instagram @Bank Jatim
                      knowledge of shareholders or investors. By using information technology                • Facebook @Bank Jatim
                      more broadly besides the Website, it is hoped that the company can increase            • Twitter @Bank Jatim
                      the effectiveness of disseminating company information. Even so, the use               • Youtube @Bank Jatim
                      of information technology is carried out while still taking into account the
                      company’s benefits and costs.

E.1.2.                Recommendation 25:                                                                     Comply
                      The Public Company Annual Report discloses the ultimate beneficial owner in
                      the Public Company share ownership of at least 5% (five percent), in addition to       The ultimate beneficial owner of the
                      disclosing the ultimate beneficial owner in the Public Company share ownership         shares which amount to at least 5% is
                      through the main and controlling shareholders.                                         the Controlling Shareholder which is the
                                                                                                             Government of East Java Province.
                      Explanation:
                      Laws and regulations in the Capital Markets sector governing the submission of
                      the Public Company’s annual report have regulated the obligation to disclose
                      information regarding shareholders who own 5% (five percent) or more shares of
                      the Public Company, as well as the obligation to disclose information regarding
                      major and controlling shareholders Public Company either directly or indirectly
                      up to the last beneficiary in the ownership of the shares. In this Governance
                      Guidelines it is recommended to disclose the ultimate beneficial owner of share
                      ownership of a Public Company of at least 5% (five percent), in addition to
                      disclosing the ultimate beneficial owner of share ownership by the main and
                      controlling shareholders.




          PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                                      CORPORATE
                                                                                                                                     GOVERNANCE




Governance Principles for Banks
Issued by The Basel Committee In Banking
Supervision
The Governance Guidelines covered 12 principles of corporate governance. Governance Guidelines are best practice standards
that can be used as a reference in the implementation of corporate governance in banking. The description of its application can be
conveyed as follows.


        Principle                              Explanation                                         Implementation at Bank Jatim

 Principle 1                  The Board of Commissioners has responsibilities     The Board of Commissioners has carried out its responsibilities
 Responsibilities             which include: approval and supervision of the      accordingly with the conditions as stipulated in:
 of the Board of              implementation of business strategy, structure      - Decree of the Board of Commissioners Number 060/01/DK/KEP
 Commissioners.               and governance mechanisms and corporate               dated January 15, 2021 concerning Work Guidelines for the Board
                              culture.                                              of Commissioners
                                                                                  - Decree of the Board of Commissioners Number 059/009/DK/KEP
                                                                                    dated December 22 , 2020 concerning Working Paper for the
                                                                                    Performance Assessment of the Board of Commissioners of PT Bank
                                                                                    Pembangunan Daerah Jawa Timur Tbk.
                                                                                  One of them is the Board of Commissioners providing opinions and
                                                                                  suggestions on the Annual Work Plan and Budget and providing advice
                                                                                  on matters considered important by the Company.

 Principle 2 Qualifications   Members of the Board of Commissioners               The Board of Commissioners of Bank Jatim has fulfilled the qualifications
 and Composition of the       must have quality in accordance with their          and composition in accordance with applicable regulations. This is also
 Board of Commissioners       duties and responsibilities, both individually      regulated in the Bank’s internal provisions SK Board of Commissioners
                              and collegially. The Board of Commissioners         Number 060/01/DK/KEP dated January 15, 2021 concerning Work
                              must understand its role in supervising and         Guidelines for the Board of Commissioners. One of the components
                              implementing corporate governance, and              that has been fulfilled is that the Board of Commissioners of Bank
                              being able to carry out sound and objective         Jatim has no financial relationship, management relationship, share
                              decision-making.                                    ownership and/or family relationship with other members of the
                                                                                  Board of Commissioners, Directors and/or Controlling Shareholders
                                                                                  or relationship with the Bank, which may affect the ability of those
                                                                                  concerned to act independently as stipulated in the provisions on the
                                                                                  Implementation of Good Corporate Governance for Commercial Banks
                                                                                  and have signed a Statement of Independence.

 Principle 3 Structure and    The Board of Commissioners must establish           The Board of Commissioners has Committees under the Board of
 Mechanism of the Board       appropriate governance structures and               Commissioners that assist the implementation of the duties of the Board
 of Commissioners.            practices in carrying out their duties and          of Commissioners, namely the Audit Committee, the Remuneration
                              periodically review their effectiveness.            and Nomination Committee and the Risk Monitoring Committee. This
                                                                                  has also been accommodated in Bank Jatim internal provisions Decree
                                                                                  of the Board of Commissioners Number 060/01/DK/KEP dated January
                                                                                  15, 2021 concerning Work Guidelines for the Board of Commissioners.

 Principle 4 Directors.       Under the direction and supervision of              The Board of Directors manages the Company under the direction
                              the Board of Commissioners, the Board of            and supervision of the Board of Commissioners as reflected in the
                              Directors is able to manage the Bank’s activities   Governance Structure of Bank Jatim Directors Decree Number
                              in accordance with the business strategy, risk      058/158/DIR/PRS/KEP date June 17, 2019.
                              appetite, remuneration policies and other
                              policies that have been approved by the Board
                              of Commissioners

 Principle 5 Business         Within a business group, the Board of               The Board of Directors and Board of Commissioners of Bank Jatim
 Group Governance             Commissioners of the parent company has             have knowledge and understanding of the company’s main business
 Structure.                   overall responsibility for the business group       and main risks, as evidenced by the passage of the entire Board of
                              and for ensuring the establishment and              Commissioners and Directors from the Fit and Proper Test. The Board
                              implementation of clean governance practices        of Directors and Board of Commissioners also regularly participate
                              related to the structure, business and risks of     in training and development to improve their capabilities. This is
                              business groups and entities. The Board of          regulated in Bank Jatim internal provisions:
                              Commissioners and Directors must understand         - Decree of the Board of Directors Number 060/044/DIR/CSE/KEP
                              the organizational structure of the business           dated February 9, 2021 concerning Work Guidelines for the Board
                              group and the risks it faces.                          of Directors.
                                                                                  - Decree of the Board of Commissioners Number 060/01/DK/KEP
                                                                                     dated January 15, 2021 concerning Work Guidelines for the Board
                                                                                     of Commissioners.




                                                                                               PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                      Annual Report 2023             499
Page 502
        Principle                              Explanation                                         Implementation at Bank Jatim

 Principle 6 Risk             Banks must have a quality risk management           Bank Jatim runs the Process of Identification, Measurement, Monitoring,
 Management Function.         function, be independent, have quality              Risk Control and Risk Management Information Systems. Bank Jatim
                              resources and have access to the Board of           always improves the capabilities and knowledge of all employees,
                              Commissioners.                                      especially in terms of risk management, by organizing internal training,
                                                                                  socialization which is in line with the internalization of corporate
                                                                                  culture. As well as communicating risk management to the Board of
                                                                                  Commissioners through the Risk Monitoring Committee.

 Principle 7 Identification   Risks must be identified, monitored and             In the management of Bank Jatim Risk Management identification,
 of Risk Monitoring and       controlled for all activities of the Bank. The      measurement and risk assessment have been carried out, compiling
 Control.                     quality of the risk management and internal         a risk profile. Risk measurement and assessment is in accordance with
                              control infrastructure must be able to keep up      established policies and adjusts to the level of risk faced by Bank Jatim.
                              with changes in the Bank’s risk profile, external
                              risk conditions and industry practices.

 Principle 8 Risk             Effective implementation of risk governance         Submission of risk profiles is submitted quarterly and Bank Soundness
 Communication                requires accurate risk communication within the     Level every semester to the Board of Directors through the Risk
                              Bank both between organizations and through         Management Committee and to the Board of Commissioners through
                              reporting to the Board of Commissioners and         the Risk Monitoring Committee.
                              Directors.

 Principle 9 Compliance.      The Board of Commissioners is responsible for       The Board of Commissioners ensures the implementation of good
                              overseeing management related to the Bank’s         corporate governance in business activities and corporate governance
                              compliance risk. The Board of Commissioners         policies, including the implementation of compliance.
                              must establish a compliance function and
                              provide approval for policies and processes for
                              identifying, assessing, monitoring and reporting,
                              and providing advice on compliance risks.

 Principle 10 Internal        The internal audit function must report             Conduct objective testing of evidence in order to provide an
 Auditing.                    independent assurance activities to the Board       independent assessment of the adequacy of internal control, risk
                              of Commissioners and must support the Board         management and governance processes within the organization.
                              of Commissioners and Directors in encouraging       Internal Audit is directly responsible to the President Director and
                              the implementation of an effective governance       communicates with the Board of Commissioners through the Audit
                              process and the long term health of the Bank        Committee.

 Principle 11                 The Bank’s remuneration structure must support      The legal basis for Bank Jatim’s remuneration refers to the Decree of
 Compensation.                the implementation of corporate governance          the Board of Commissioners No. 059/003/DK/KEP dated April 27,
                              and risk management.                                2020 concerning the Implementation of Governance for Providing
                                                                                  Remuneration for the Board of Commissioners and Directors and
                                                                                  Facilities at PT Bank Pembangunan Daerah Jawa Timur Tbk.

 Principle 12 Disclosure      The implementation of governance from the           Bank Jatim constantly updates the Company’s website to ensure
 and Transparency.            Bank must be carried out in a transparent           information disclosure for stakeholders such as Annual Reports,
                              manner to Shareholders, Depositors, other           Sustainability Reports and Public Exposes.
                              relevant Stakeholders and Market Participants.




Good Corporate Governance
Assessment
Assessment Criteria                                                               1. Implementation of Duties and Responsibilities of the Board
                                                                                     of Commissioners
In conducting a self-assessment regarding the implementation                      2. Implementation of Duties and Responsibilities of the Board
of Good Governance, Bank Jatim refers to the provisions of                           of Directors
POJK No. 55/POJK.03/2016, POJK No. 17 of 2023, SEOJK                              3. Completeness and Implementation of Committee Duties
No. 13/SEOJK.03/2017 concerning the Implementation of                             4. Handling of Conflict of Interest
Governance for Commercial Banks.                                                  5. Implementation of the Bank’s Compliance Function
                                                                                  6. Implementation of the Internal Audit Function
Self-assessment is carried out periodically on at least 11 (eleven)               7. Implementation of the External Audit Function
factors for assessing the implementation of Governance which                      8. Implementation of the Risk Management Function,
is carried out in a comprehensive and structured manner which                        Including the Internal Control System
is integrated into 3 (three) aspects of governance, namely                        9. Provision of Funds to Related Parties and Large Debtors
governance structure, governance process and governance                              (Large Exposure)
outcomes including:


         PT Bank Pembangunan Daerah Jawa Timur Tbk
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                                                                                                                             CORPORATE
                                                                                                                            GOVERNANCE




10. Transparency of Financial and Non-Financial Conditions, GCG Implementation Reports and Internal Reporting
11. The Bank’s Strategic Plan.


Parties That Carry Out The Assessment

The self-assessment process involves the Board of Commissioners, Directors, Board of Commissioners Committees and work units in
charge to produce a comprehensive and structured assessment of the implementation of Governance at all levels of the organization.


The Score of Assessment

Table of GCG Assessment Results

                                                                                                 June 2022       Dec 2022        June 2023
                                    Parameter                                   Weight (%)
                                                                                                               Skor x Bobot

 Implementation of Duties and Responsibilities of the Board of Commissioners         10              0.2              0.2              0.2

 Implementation of Duties and Responsibilities of the Board of Directors             20              0.6              0.6              0.4

 Completeness and Implementation of Committee Duties                                 10              0.3              0.2              0.2

 Handling of Conflict of Interest                                                    10              0.3             0.21              0.2

 Implementation of the Bank's Compliance Function                                     5              0.1             0.15            0.15

 Implementation of the Internal Audit Function                                        5             0.15             0.15            0.15

 Implementation of the External Audit Function                                        5              0.1              0.1              0.1

 Implementation of the Risk Management Function Including the Internal               7.5            0.19            0.225
                                                                                                                                     0.16
 Control System

 Provision of funds to related parties and large debtors (Large Exposure)            7.5            0.15            0.225           0.225

 Transparency of Financial and Non-Financial             Conditions,    GCG          15             0.23              0.3
                                                                                                                                       0.2
 Implementation Reports and Internal Reporting

 Bank Strategic Plan                                                                  5             0.15             0.15            0.15

 Total Score                                                                                        2.47             2.51            2.14

 Rating                                                                                               2                 3               2


Recommendations and Follow Up                                                  4. Disclosure and Transparency.
                                                                               5. Responsibilities of Directors and Commissioners.
During 2023, there are no recommendations from the OJK.
                                                                               Parties That Carry Out The Assessment

ASEAN Corporate Governance                                                     The assessment is carried out by the ASEAN Capital Market
Scorecard                                                                      Forum (ACMF) as a representative in each participating country
                                                                               to carry out the assessment on a national scale and is appointed
Assessment of the implementation of good corporate                             by the regulator of each country..
governance (GCG) was also carried out based on the ASEAN
Corporate Governance Scorecard (ACGS) criteria which                           The Score of Assessment
adopted the principles of Corporate Governance issued by
The Organization for Economic Cooperation and Development                      Based on the results of the 2021 ACGS Bank Jatim assessment,
(OECD).                                                                        Bank Jatim received the ASEAN Asset Class award in the
                                                                               ASEAN Corporate Governance Scorecard (ACGS) ranking by
Assessment Criteria                                                            the ASEAN Capital Market Forum (ACMF).


The ACGS assessment criteria include the following 5 (five)                    Recommendations and Follow Up
aspects:
1. Rights of Shareholders.                                                     There are recommendations for improvements related to the
2. Equal Treatment of Shareholders.                                            implementation and disclosure of governance at Bank Jatim.
3. The Role of Stakeholders.                                                   These improvement recommendations become the basis for
                                                                               carrying out continuous improvement


                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  Annual Report 2023     501
Page 504
CORPORATE
SOCIAL
Responsibility




      PT Bank Pembangunan Daerah Jawa Timur Tbk
500   2023 Annual Report
Page 505
PT Bank Pembangunan Daerah Jawa Timur Tbk
                       2023 Annual Report   501
Page 506
Bank Jatim implements its social responsibility activities by        As a financial services institution, the implementation of
referring to the principle of sustainability. Bank Jatim always      corporate social responsibility at Bank Jatim refers to POJK
considers the impact of every decision and its business activities   No. 51/POJK.03/2017 concerning the Implementation of
on society and the natural environment through transparent           Sustainable Finance for Financial Service Institutions of
and ethical behavior.                                                Issuers and Public Companies and the international standard,
                                                                     namely ISO 26000. In accordance with the Circular Letter of
Bank Jatim is committed to implementing sustainable principles       the Financial Services Authority No. 16 /SEOJK.04/2021
that are able to create economic, social and ecological values       Regarding the Form and Contents of the Annual Report of
in the process and at the level of policy and decision making        Issuers or Public Companies Information on corporate social
that can drive the Bank’s success while still contributing to the    responsibility, especially related to sustainable governance,
achievement of sustainable development goals. Sustainable            sustainable economic performance, sustainable environmental
development goals include ensuring the integrity of the              performance and sustainable social performance is submitted
environment as well as the safety, capabilities, well-being and      in the Sustainability Report which is presented separately from
quality of life of present and future generations.                   the Annual Report.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
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Page 507
                                                                                                                        CORPORATE SOCIAL
                                                                                                                           RESPONSIBILITY




OJK
Index

                   Criteria                                                 Explanation                                Page        Regulations

                                                                       GENERAL

Annual Report is well printed and bound.          The Annual Report is well printed and bound.                           √           POJK 29

Annual Report must be reproduced in the form                                                                             √           POJK 29
of printed copies of documents and electronic
copies of documents.

Annual Reports are presented in Indonesian                                                                               √           POJK 29
and foreign languages

Annual Report must be published on the                                                                                   √           POJK 29
Issuer’s or Public Company’s Website on the
same date as the submission of the Annual
Report to the Financial Services Authority.

                                                           PERFORMANCE HIGHLIGHTS

Summary of important financial data contains      Information includes, among others:
financial information presented in comparative
form for 3 (three) financial years or since
starting their business if the Issuer or Public
Company has been running its business
activities for less than 3 (three) years.

                                                  1. Sales revenue.                                                      22         SEOJK 16

                                                  2. Gross profit.                                                       22

                                                  3. Operational profit.                                                 22          SEOJK 9

                                                  4. Profit before tax.                                                  22

                                                  5. Net profit.                                                         22

                                                  6. Profit and loss.                                                    22         SEOJK 16

                                                  7. Total comprehensive profit (loss).                                  23          SEOJK 9

                                                  8. Total profit (loss) attributable to owners of the parent           N/A         SEOJK 16
                                                     entity and non-controlling interests.

                                                  9. Total comprehensive profit (loss).                                  23         SEOJK 16

                                                  10. Total comprehensive profit (loss) attributable to owners of       N/A
                                                      the parent entity and non-controlling interests.

                                                  11. Earnings (loss) per share.                                         23          SEOJK 9
                                                                                                                                    SEOJK 16
                                                  12. Total assets.                                                      20

                                                  13. Total liabilities.                                                 21

                                                  14. Total equity.                                                      22

                                                  15. Third-party funds.                                                 21          SEOJK 9

                                                  16. Loans received.                                                    21

                                                  17. Ratio of profit (loss) to total assets.                            24         SEOJK 16

                                                  18. Profit (loss) to equity ratio.                                     24

                                                  19. Profit (loss) to revenue/sales ratio.                              24

                                                  20. Current ratio.                                                     24

                                                  21. Liability to equity ratio.                                         24

                                                  22. Ratio of liabilities to total assets.                              24




                                                                                                PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                       2023 Annual Report   503
Page 508
                    Criteria                                      Explanation                                 Page    Regulations

                                         23. CAR ratio.                                                        24       SEOJK 9

                                         24. Productive assets.                                                24

                                         25. Non-performing loans (NPL) ratio.                                 24

                                         26. Ratio of Operating Expenses to Operating Income                   24
                                             (BOPO).

                                         27. Cost to Income Ratio(CIR).                                        24

                                         28. Net Interest Margin (NIM) ratio.                                  24

                                         29. Percentage of violations and exceedances of the Legal             24
                                             Lending Limit (BMPK).

                                         30. Statutory Reserve Ratio (GWM).                                    24

                                         31. Net Open Position (NOP) Ratio.                                    24

                                         32. Information and other financial ratios that are relevant to       24       SEOJK 9
                                             the issuer or public company and the type of industry.                    SEOJK 16

Stock Information                        Information on shares for Public Companies at least contains:                 SEOJK 16

                                         1. Shares that have been issued for each quarter presented in        25-27
                                            comparative form for the last 2 (two) financial years, at least
                                            contain:

                                           a. Number of outstanding shares.

                                           b. Market capitalization is based on the price on the stock
                                              exchange where the shares are listed.

                                           c. The highest, lowest and closing share prices are based
                                              on the price on the stock exchange where the shares are
                                              listed.

                                           d. Volumetrading on the stock exchange where the shares
                                              are listed.

                                           Information in letter b), letter c) and letter d) is only
                                           disclosed if the shares are listed on the stock exchange.
                                           Information is presented in the form of graphs and tables.

                                         2. such as a stock split, reverse stock, stock dividends, bonus       27      SEOJK 16
                                            shares, changes in the nominal value of shares, issuance of
                                            convertible securities, and additions and capital reduction,
                                            share information as referred to in number 1) is added with
                                            an explanation of at least:

                                           a. The date of implementation of the corporate action.

                                           b. Stock split ratios, reverse stock ratios, stock dividends,
                                              bonus shares, number of convertible securities issued,
                                              and changes in share nominal value.

                                           c. The number of outstanding shares before and after the
                                              corporate action.

                                           d. The number of effect conversions implemented (if any).

                                           e. Stock prices before and after corporate actions.

                                         3. In the event of a temporary suspension of share trading            27      SEOJK 16
                                            (suspension) and/or delisting of shares during the financial
                                            year, the reasons for the temporary suspension of share
                                            trading (suspension) and/or delisting of shares (delisting)
                                            shall be explained.

                                         4. In the event that the temporary suspension of share trading        27      SEOJK 16
                                            (suspension) as referred to in number 3) and/or the process
                                            of canceling the listing of shares (delisting) is still ongoing
                                            until the end of the Annual Report period, the actions
                                            taken to resolve the temporary suspension of share trading
                                            (suspension) and/or cancellation are explained. listing of
                                            shares (delisting).




       PT Bank Pembangunan Daerah Jawa Timur Tbk
504    2023 Annual Report
Page 509
                   Criteria                                Explanation                               Page      Regulations

                              REPORT OF DIRECTORS AND BOARD OF COMMISSIONERS

Directors Report                    The Board of Directors’ report contains at least a brief
                                    description of:

                                    1. Performance of Issuers or Public Companies, at least
                                       includes:

                                      a. Issuer’s or Public Company’s strategy and strategic          44         SEOJK 9
                                         policies (including for UUS if the Bank owns UUS).                     SEOJK 16


                                      b. The role of the Board of Directors in formulating the        44        SEOJK 16
                                         strategy and strategic policies of the Issuer or Public
                                         Company.

                                      c. The process carried out by the Board of Directors to         44
                                         ensure the implementation of the Issuer’s or Public
                                         Company’s strategy.

                                      d. Comparison between the results achieved and those           44-45       SEOJK 9
                                         targeted by the Issuer or Public Company.                              SEOJK 16

                                      e. Obstacles faced by Issuers or Public Companies.              45

                                      f. Organizational structure.                                    38         SEOJK 9

                                      g. Main activity.                                               37

                                      h. Information Technology.                                      38

                                      i. Types of products and services offered, including lending   37-39
                                         to debtors of micro, small and medium enterprises.

                                      j. Interest rates for raising and providing funds.             39-43

                                      k. Economic development and target market.                      39

                                      l. Networks and business partners at home and/or abroad.        38

                                      m. Number, type and location of offices.                        38

                                      n. Ownership of the Board of Directors, Board of               N/A
                                         Commissioners and shareholders in the Bank’s business
                                         group.

                                      o. Important changes that occurred in the Bank and the         N/A
                                         Bank’s business group in the year concerned.

                                      p. Important things that are expected to happen in the         45-46
                                         future.

                                      q. Human resources include the number, level of education,      38
                                         training, and development of human resources.

                                    2. An overview of the business prospects of the Issuer or        45-46       SEOJK 9
                                       Public Company.                                                          SEOJK 16

                                    3. Implementation of Issuer or Public Company governance.        46-49

Report of the Board of              The Board of Commissioners’ report contains at least a brief
Commissioners                       description of:

                                    1. Assessment of the Board of Directors’ performance             53-56      SEOJK 16
                                       regarding the management of Issuers or Public Companies,                  SEOJK 9
                                       including oversight by the Board of Commissioners in the
                                       formulation and implementation of the Issuer’s or Public
                                       Company’s strategy carried out by the Board of Directors.

                                    2. Views on the business prospects of Issuers or Public          56-57
                                       Companies compiled by the Board of Directors.

                                    3. Views on the implementation of governance of the Issuer       57-60
                                       or Public Company.

                                    4. Changes in the composition of the Board of Commissioners       62         SEOJK 9
                                       (if any) and reasons for the changes.

                                    5. Frequency and method of providing advice to members of         53
                                       the Board of Directors.




                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                   2023 Annual Report   505
Page 510
                      Criteria                                         Explanation                                 Page    Regulations

Statement Letter from Members of the Board     Statement Letter from Members of the Board of Directors             63-64    SEOJK 16
of Directors and Members of the Board of       and Members of the Board of Commissioners regarding                           POJK 29
Commissioners                                  Responsibility for the Annual Report. Statement letter from
                                               members of the Board of Directors and members of the
                                               Board of Commissioners regarding responsibility for the
                                               Annual Report is prepared in accordance with the format of
                                               Statement Letter from Members of the Board of Directors
                                               and Members of the Board of Commissioners regarding
                                               Responsibility for the Annual Report.

                                                            COMPANY PROFILE

Company name and full address                  Access to Issuers or Public Companies including branch               68      SEOJK 9
                                               offices or representative offices that enable the public to                  SEOJK 16
                                               obtain information about Issuers or Public Companies,
                                               including:

                                               1. Address

                                               2. Phone number

                                               3. Email address

                                               4. Website address

Name and address of subsidiary and/or branch   Contains information including:
office or representative office (if any)
                                               1. Name and address of the subsidiary, including:                   69-70    SEOJK 9
                                                  a. Address                                                                SEOJK 16
                                                  b. Phone number
                                                  c. E-mail address
                                                  d. Website address

                                               1. Name and address of the branch/representative office,
                                                  including:
                                                  a. Address
                                                  b. Phone number
                                                  c. Email address
                                                  a. Website address

                                               Notes: if the company does not have subsidiaries, branch
                                               offices, and representative offices, so that it is disclosed.

Brief history of Issuer or Public Company      Include among others: date/year of establishment, name,             72-73    SEOJK 9
                                               change of company name (if any), and effective date of                       SEOJK 16
                                               change of company name.

                                               Notes: if the company has never changed its name, please
                                               disclose it.

Vision, Mission and Corporate Culture          Includes:                                                                    SEOJK 9
                                                                                                                            SEOJK 16
                                               1. Company Vision                                                    74

                                               2. Company Mission                                                   74

                                               3. Statement that the vision and mission have been reviewed         76-78
                                                  and approved by the Board of Directors/Board of
                                                  Commissioners in the financial year.

Business activities                            Description of, among others:                                                SEOJK 9
                                                                                                                            SEOJK 16
                                               1. The company’s business activities according to the latest         79
                                                  articles of association.

                                               2. Business Activities Undertaken.                                   80

                                               3. Products and/or services produced.                               80-92

Operational Area                               Issuer’s or Public Company’s operational area. The operational      94-97    SEOJK 16
                                               area is the area or area where operational activities are carried
                                               out or the scope of the company’s operational activities.

Organizational structure                       The organizational structure of the Issuer or Public Company        98-99    SEOJK 9
                                               in the form of a chart, at least up to 1 (one) level below the               SEOJK 16
                                               Board of Directors including committees under the Board
                                               of Directors (if any) and committees under the Board of
                                               Commissioners, accompanied by names and positions.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
506     2023 Annual Report
Page 511
                    Criteria                           Explanation                                 Page      Regulations

Association Membership         List of industry association memberships both on a national           97       SEOJK 16
                               and international scale related to the implementation of
                               sustainable finance.

Board of Directors Profile     Profile of the Board of Directors, at least contains:               100-108     SEOJK 9
                                                                                                              SEOJK 16
                               1. Name and position in accordance with the duties and
                                  responsibilities.

                               2. Latest photos.

                               3. Age.

                               4. Citizenship.

                               5. Educational history and/or certification.

                               6. Position history, including information on:

                                 a. The legal basis for appointment as a member of the
                                    Board of Directors of the Issuer or Public Company
                                    concerned

                                 b. Concurrent positions, both as members of the Board
                                    of Directors, members of the Board of Commissioners,
                                    and/or committee members as well as other positions
                                    both inside and outside the Issuer or Public Company.
                                    In the event that members of the Board of Directors do
                                    not have concurrent positions, then this is disclosed.

                                 c. Work experience and time period both inside and
                                    outside the Issuer or Public Company.

                               7. of the Board of Commissioners, major shareholders                            SEOJK 9
                                  and controllers, either directly or indirectly to individual                SEOJK 16
                                  owners, including names of affiliated parties. In the                        POJK 13
                                  event that members of the Board of Directors have no
                                  affiliation, the Issuer or Public Company shall disclose this.
                                  Financial relationships and family relationships of members
                                  of the Board of Directors and members of the Board of
                                  Commissioners with other members of the Board of
                                  Directors, other members of the Board of Commissioners,
                                  and/or controlling shareholders of the Bank.

                               8. Changes in the composition of members of the Board of                       SEOJK 16
                                  Directors and reasons for the changes. In the event that
                                  there is no change in the composition of the members of
                                  the Board of Directors, this will be disclosed.

Profile of the Board of        Profile of the Board of Commissioners, at least contains:           109-116     SEOJK 9
Commissioners                                                                                                 SEOJK 16

                               1. Name and position.

                               2. Latest photos.

                               3. Age.

                               4. Citizenship.

                               5. Educational history and/or certification.

                               6. Position history, including information on:

                                 a. The legal basis for appointment as a member of the
                                    Board of Directors of the Issuer or Public Company
                                    concerned

                                 b. Legal basis for the first appointment as a member of
                                    the Board of Commissioners who is an independent
                                    commissioner of the Issuer or Public Company
                                    concerned.

                                 c. Concurrent positions, both as members of the Board
                                    of Directors, members of the Board of Commissioners,
                                    and/or committee members as well as other positions
                                    both inside and outside the Issuer or Public Company.
                                    In the event that members of the Board of Directors do
                                    not have concurrent positions, then this is disclosed.




                                                                         PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                2023 Annual Report   507
Page 512
                    Criteria                                      Explanation                                 Page      Regulations

                                            d. Work experience and time period both inside and
                                               outside the Issuer or Public Company.

                                          7. Affiliation with other members of the Board of Directors,                   SEOJK 9
                                             members of the Board of Commissioners, major                                SEOJK 13
                                             shareholders and controllers, either directly or indirectly to              SEOJK 16
                                             individual owners, including names of affiliated parties. In                 POJK 17
                                             the event that members of the Board of Directors have no
                                             affiliation, the Issuer or Public Company shall disclose this.

                                            Financial relationships and family relationships of members
                                            of the Board of Directors and members of the Board of
                                            Commissioners with other members of the Board of
                                            Directors, other members of the Board of Commissioners,
                                            and/or controlling shareholders of the Bank.

                                          8. Statement of independence of the independent                                SEOJK 16
                                             commissioner in the event that the independent
                                             commissioner has served more than 2 (two) terms.

                                          9. Changes in the composition of members of the Board of
                                             Directors and reasons for the changes. In the event that
                                             there is no change in the composition of the members of
                                             the Board of Directors, this will be disclosed.

Executive officer brief profile           Including the composition of executive officers along with          121-140     SEOJK 9
                                          their positions and a summary of Curriculum Vitae.

Number of employees and employee          Data on employee competency development that has been               141-142     SEOJK 9
competency development data.              carried out in the financial year consisting of parties (position              SEOJK 16
                                          levels) who attended training, types of training, and training
                                          objectives as well as equal opportunities for all employees.

                                          Employee competency development costs that have been
                                          incurred in the financial year.

Shareholder composition                   Names of shareholders and percentage of ownership at the            143-148     SEOJK 9
                                          beginning and end of the financial year, which consists of                     SEOJK 16
                                          information regarding:                                                          POJK 17

                                          1. Shareholders who own 5% (five percent) or more shares of
                                             Issuers or Public Companies.

                                          2. Members of the Board of Directors and members of the
                                             Board of Commissioners who own shares of Issuers or
                                             Public Companies.

                                            In the event that all members of the Board of Directors
                                            and/or all members of the Board of Commissioners do not
                                            own shares, then this matter shall be disclosedthe.

                                          3. shares by members of the Board of Directors and members
                                             of the Board of Commissioners at the beginning and
                                             end of the financial year, including information regarding
                                             shareholders who are registered in the register of
                                             shareholders for the benefit of indirect ownership by
                                             members of the Board of Directors and members of the
                                             Board of Commissioners.

                                            In the event that all members of the Board of Directors
                                            and/or all members of the Board of Commissioners do not
                                            have indirect ownership of the shares of the Issuer or Public
                                            Company, then this matter must be disclosed.

                                            Directors and commissioners who own Shares (Directors
                                            and Board of Commissioners/Supervisory Board must
                                            report to the company regarding their and/or family’s
                                            share ownership in the company concerned and other
                                            companies, including any changes thereto).

                                          4. Group of public shareholders, namely groups of                              SEOJK 16
                                             shareholders who each own less than 5% (five percent) of
                                             the shares of the Issuer or Public Company.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
508     2023 Annual Report
Page 513
                    Criteria                                              Explanation                                Page      Regulations

                                                  1. Number of shareholders and percentage of ownership at                      SEOJK 16
                                                     the end of the financial year based on classification:

                                                    a. Ownership of local institutions.

                                                    b. Ownership of foreign institutions.

                                                    c. Local individual ownership.

                                                    d. Foreign individual ownership.

                                                  The above information can be presented in tabular form.

Major and controlling shareholder                 Information regarding major shareholders and controllers of         148       SEOJK 9
                                                  Issuers or Public Companies, either directly or indirectly, up                SEOJK 16
                                                  to individual owners, presented in the form of a schematic
                                                  or chart.

List of associate subsidiaries, venture           Names of subsidiaries, associated companies, joint venture          148        SEOJK 9
companies                                         companies where the Issuer or Public Company has joint                        SEOJK 16
                                                  control of the entity (if any), along with the percentage of
                                                  share ownership, line of business, total assets, and operating
                                                  status of subsidiaries, associated companies, joint venture
                                                  companies.
                                                  For subsidiaries, information regarding the address of the
                                                  subsidiary is added.

Information related to the Bank Business          Banks that are part of a business group and/or have                 N/A        SEOJK 9
Group                                             Subsidiaries, must add:

                                                  The structure of the Bank’s business group which includes:

                                                  a. The structure of the Bank’s business group consists of the
                                                     Bank, Subsidiaries, sister companies, Parent Entity up to
                                                     the ultimate shareholder.

                                                  b. Management linkage structure within the Bank’s business
                                                     group.

                                                  c. Shareholders acting on behalf of other shareholders. The
                                                     definition of a shareholder acting on behalf of another
                                                     shareholder is an individual shareholder or an entity that
                                                     has the common goal of controlling the Bank, based on or
                                                     not based on an agreement.

Share listing chronology                          Chronology of share listing, number of shares, number of           149-150    SEOJK 16
                                                  listed shares after each corporate action, nominal value, and
                                                  offering price from the
                                                  beginning of listing to the end of the financial year as well
                                                  as the name of the stock exchange where the Issuer’s or
                                                  Public Company’s shares are listed, including stock splits (
                                                  stock split), merger of shares (reverse stock), stock dividends,
                                                  bonus shares, and changes in the nominal value of shares,
                                                  implementation of conversion effects, implementation of
                                                  capital additions and reductions (if any).

Information on the listing of other securities    Information on the listing of other securities that are not yet     151       SEOJK 16
                                                  due in the financial year at least contains the names of the
                                                  securities, the type of corporate action that causes a change
                                                  in the number of other
                                                  securities, year of issue, interest rate/yield, maturity date,
                                                  offering value, name of stock exchange where other securities
                                                  are listed, and
                                                  securities rating (if any).

Information on the use of public accounting       Information on the use of public accounting services (AP)           152       SEOJK 16
services (AP) and public accounting firms (KAP)   and public accounting firms (KAP) and their networks/
                                                  associations/alliance includes:

                                                  1. Name and address.

                                                  2. Assignment period.

                                                  3. Information on audit and/or non-audit services provided.

                                                  4. Audit and/or non-audit service fees for each assignment
                                                     given during the financial year.




                                                                                            PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                   2023 Annual Report   509
Page 514
                   Criteria                                               Explanation                                  Page      Regulations

                                                5. In the event that the designated AP and KAP and their
                                                   network/ association/alliance do not provide non-audit
                                                   services, then the information shall be disclosed.

                                                Disclosure of information on the use of AP and KAP services
                                                and their networks/associations/alliances can be presented in
                                                tabular form.

Name and address of supporting institution      Names and addresses of capital market supporting institutions         152-153     SEOJK 16
and/or profession.                              and/or professions other than AP and KAP.

Awards and Certifications.                      Information includes, among others:                                   154-160      SEOJK 9

                                                1. Name of award and/or             certification   (national   and
                                                   international scale).

                                                2. Year of award and/or certification.

                                                3. Awarding and/or certification bodies.

                                                4. Validity period (for certification).

                              MANAGEMENT DISCUSSION AND ANALYSIS OF THE COMPANY’S PERFORMANCE

Bank Strategic Plan                             1. Long term plan (corporate plan).                                   171-172     SEOJK 13
                                                2. Medium and short term plans (business plan).                                    POJK 17

Operational review per business segment         Operational review per business segment according to the                           SEOJK 9
                                                type of industry of the Issuer or Public Company, at least                        SEOJK 16
                                                concerning:

                                                1. Explanation of each business segment.                              177-209

                                                2. Performance per business segment, among others:

                                                   a. Production, which includes process, capacity, and               178-209
                                                      development.

                                                   b. Increase/decrease in production capacity.                       178-209

                                                   c. Sales/business income.                                          198, 209

                                                   d. Profitability.                                                  198, 209

Description of the company’s                    Comprehensive financial performance which includes a                               SEOJK 9
financial performance                           comparison of financial performance in the last 2 (two)                           SEOJK 16
                                                financial years (in the form of
                                                narratives and tables), an explanation of the causes of the
                                                changes and the impact of these changes, at least concerning:

                                                1. Current assets, non-current assets, and total assets.              211-221

                                                2. Short term liabilities, long term liabilities and total            221-225
                                                   liabilities.

                                                3. Funding (investment and giving credit/financing).                  218, 214

                                                4. Third party funds and other funding sources.                         222

                                                5. Equity.                                                            225-226

                                                6. Income/sales, expenses, profit (loss), other comprehensive         227-233
                                                   income, and total comprehensive profit (loss).

                                                7. Cash flow.                                                         233-235

                                                8. Basic credit interest rate.                                          243        SEOJK 9

Analysis of the quality of earning assets and                                                                         242-249      SEOJK 9
relevant financial ratios.

Discussion and analysis of the ability to pay   Explanation of:                                                                   SEOJK 16
debts and the collectability of the company’s
receivables, by presenting the calculation of   1. Ability to pay debts, both short term (liquidity) and long         235-237
the relevant ratio according to the type of        term (solvability).
company’s industry.                             2. Receivables collectibility level.                                  237-238




       PT Bank Pembangunan Daerah Jawa Timur Tbk
510    2023 Annual Report
Page 515
                   Criteria                                              Explanation                                 Page      Regulations

Discussion on capital structure and              Top explanation:                                                               SEOJK 16
management policies on capital structure
(capital structure policy).                      1. Details of the capital structure (capital structure), which      250-251
                                                    consists of interest-based debt/sukuk and equity.

                                                 2. Management policies on capital structure (capital structure       250
                                                    policies).

                                                 3. Basis for selection of management policies.                       250

Discussion on material commitments for capital   Explanation of:                                                                SEOJK 16
goods investment (not funding commitments)
in the last financial year.                      1. The name of the party making the bond.                            264

                                                 2. The purpose of the bond.

                                                 3. Source of funds expected to fulfill these ties.

                                                 4. The currency to be denominated.

                                                 5. The steps the company plans to take to protect against
                                                    risks from related foreign currency positions.

                                                 Notes: if the company has no ties related to investment in
                                                 capital goods in the last financial year to be disclosed.

Discussion on investment in capital goods        Explanation of:                                                                SEOJK 9
realized in the last financial year.                                                                                            SEOJK 16
                                                 1. Types of investment in capital goods.                             264

                                                 2. The purpose of investing in capital goods.                        265

                                                 3. Investment value of capital goods issued in the last              264
                                                    financial year.

                                                 Notes: if there is no realization of investment in capital goods,
                                                 so that it is disclosed.

Description of the company’s business            The business prospects of Issuers or Public Companies               266-268    SEOJK 16
prospects.                                       are linked to industry conditions, the general economy
                                                 and international markets accompanied by quantitative
                                                 supporting data from reliable data sources.

Comparative information between targets at       Comparison between targets/projections at the beginning                        SEOJK 16
the beginning of the financial year with the     of the financial year with the results achieved (realization),
results achieved (realization), and targets or   regarding:
projections to be achieved for the
next year.                                       1. Sales revenue.                                                    269

                                                 2. Profit and loss.                                                  269

                                                 3. Capital structure.                                                270

                                                 4. Marketing.                                                       270-271

                                                 5. HR Development.                                                   271

                                                 6. Other matters deemed important by the Issuer or Public            269
                                                    Company.

                                                 Targets/projections to be achieved by Issuers or Public
                                                 Companies for the next 1 (one) year, regarding:

                                                 1. Sales revenue.                                                    272

                                                 2. Profit and loss.                                                  272

                                                 3. Capital structure.                                                272

                                                 4. Dividend policy.                                                  273

                                                 5. Marketing.                                                        273

                                                 6. Pengembangan SDM.                                                 273

                                                 7. Other matters deemed important by the Issuer or Public            272
                                                    Company.

Description of the marketing aspect.             Marketing aspects of the Issuer’s or Public Company’s goods         174-177     SEOJK 9
                                                 and/or services, at least regarding marketing strategy and                     SEOJK 16
                                                 market share.




                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  2023 Annual Report   511
Page 516
                    Criteria                                                  Explanation                              Page      Regulations

Description of dividends for the last 2 (two)       Description of dividends for the last 2 (two) financial years,                SEOJK 16
financial years.                                    at least:

                                                    1. The dividend policy, among other things, contains                274
                                                       information on the percentage of the amount of dividends
                                                       distributed to net income.

                                                    2. Cash dividend payment date and/or non-cash dividend              274
                                                       distribution date.

                                                    3. Amount of dividends per share (cash and/or non-cash).            274

                                                    4. The amount of dividends per year paid.                           274

                                                    Notes: if there is no distribution of dividends, please state
                                                    the reasons.

Realization of the use of proceeds from the         Contains descriptions of:                                                     SEOJK 16
public offering (in the event that the company
is still required to submit a report on the         1. Total proceeds.                                                  275
realization of the use of funds)                    2. Fund usage plan.                                                 275

                                                    3. Details of use of funds.                                         275

                                                    4. Fund balance.                                                    275

                                                    5. The date of approval of the GMS/RUPO for changes in the          275
                                                       use of funds (if any).

                                                       a. a. In the event that during the financial year, the Issuer
                                                          has an obligation to submit a report on the realization
                                                          of the use of funds, the cumulative realization of the use
                                                          of proceeds from public offerings until the end of the
                                                          financial year is disclosed.
                                                       b. In the event that there is a change in the use of funds as
                                                          stipulated in the Financial Services Authority Regulation
                                                          regarding the report on the realization of the use of
                                                          funds from a public offering, the Issuer shall explain the
                                                          change.

                                                    Note: if you do not have information on the realization of the
                                                    use of proceeds from a public offering, please disclose it.

Material information (if any), including            Contains descriptions of:                                                     SEOJK 16
investment, expansion, divestment, business
merger/ consolidation, acquisition, debt/
capital restructuring, material transactions,
affiliated transactions, and conflict of interest
transactions.

                                                    a. Date, value, and transaction object.                            275-280

                                                    b. The name of the party conducting the transaction.

                                                    c. Nature of the affiliation relationship (if any).

                                                    d. Explanation of the fairness of the transaction.

                                                    e. Fulfillment of related provisions.

                                                    f. In the event that there is an affiliation relationship, apart
                                                       from disclosing the information referred to in number a)
                                                       through number f), the Issuer or Public Company also
                                                       discloses information:

                                                       1) The Board of Directors’ statement that affiliated
                                                          transactions have gone through adequate procedures
                                                          to ensure that affiliated transactions are carried out in
                                                          accordance with generally accepted business practices,
                                                          among others, carried out by fulfilling the arm’s length
                                                          principle.




        PT Bank Pembangunan Daerah Jawa Timur Tbk
512     2023 Annual Report
Page 517
                   Criteria                                              Explanation                                 Page      Regulations

                                                   2) The role of the Board of Commissioners and the audit
                                                      committee in carrying out adequate procedures to
                                                      ensure that affiliated transactions are carried out in
                                                      accordance with generally accepted business practices,
                                                      among others, is carried out by fulfilling the arm’s length
                                                      principle.

                                                 g. For affiliate transactions or material transactions which are
                                                    business activities carried out in order to generate business
                                                    income and are carried out routinely, repeatedly and/or
                                                    continuously, an explanation is added that the affiliated
                                                    transactions or material transactions are business activities
                                                    carried out in order to generate business income and are
                                                    carried out routinely, repeatedly, and/or continuously.

                                                   In the case of affiliated transactions or material transactions
                                                   referred to have been disclosed in the annual financial
                                                   statements, information is added regarding references to
                                                   disclosure in the said annual financial statements.

                                                 h. For disclosure of affiliated transactions and/or conflict                   SEOJK 16
                                                    of interest transactions which are the result of the                        SEOJK 13
                                                    implementation of affiliated transactions and/or conflict
                                                    of interest transactions that have been approved
                                                    by independent shareholders, information is added
                                                    regarding the date of the GMS that approves the affiliated
                                                    transactions and/or conflict of interest transactions.

                                                 i. In the event that there are no affiliated transactions and/or
                                                    conflict of interest transactions, then this is disclosed.

Description of changes to laws and regulations   The description contains, among others:                                        SEOJK 16
on companies in the last financial year.
                                                 1. The names of the laws and regulations that have changed.         279-280

                                                 2. The impact (quantitative and/or qualitative) on the              279-280
                                                    company (if significant) or the statement that the impact is
                                                    not significant.

                                                 Notes: if there is no change in laws and regulations in the last
                                                 financial year, so that it is disclosed.

Description of changes in accounting policies    The description contains, among others:                                        SEOJK 16
implemented by the company in the last
financial year.                                  1. Changes in accounting policies.                                  280-281

                                                 2. Reasons for changes in accounting policies.                       280

                                                 3. Quantitative impact on financial statements.                      281

                                                 Notes: If there is no change in accounting policy in the last
                                                 financial

Information on Risk Exposure and                 Risk exposure and capital includes annual period risk and           251-264     SEOJK 9
Capital.                                         capital exposure reports as stipulated in part II of the
                                                 Publication Report on risk and capital exposure.

                                                     GOOD CORPORATE GOVERNANCE

GMS.                                             Information regarding GMS resolutions in the financial year         325-333    SEOJK 16
                                                 and 1 (one) year before the financial year includes:

                                                 a. a. GMS resolutions in the financial year and 1 (one) year
                                                    prior to the financial year realized in the financial year.

                                                 b. GMS decisions in the financial year and 1 (one) year prior
                                                    to the financial year that have not been realized along with
                                                    the reasons for not being realized.

                                                 In the event that an Issuer or Public Company uses an
                                                 independent party in the implementation of the GMS to carry
                                                 out the vote count, it shall be disclosed regarding this matter.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report   513
Page 518
                 Criteria                                        Explanation                              Page      Regulations

Directors.                                1. 1. Duties and responsibilities of each member of the          337       SEOJK 13
                                             Board of Directors. Information regarding the duties and                SEOJK 16
                                             responsibilities of each member of the Board of Directors                POJK 17
                                             is described and can be presented in tabular form.

                                          2. Statement that the Board of Directors has a guideline or      336       SEOJK 16
                                             charter (charter) of the Board of Directors.

                                          3. Policy and implementation of the frequency of meetings of    338-342    SEOJK 16
                                             the Board of Directors, meetings of the Board of Directors
                                             with the of Commissioners, and the level of attendance
                                             of members of the Board of Directors at these meetings
                                             including attendance at the GMS. Information on the level
                                             of attendance of members of the Board of Directors at
                                             meetings of the Board of Directors, meetings of the Board
                                             of Directors with the Board of Commissioners or GMS can
                                             be presented in tabular form.

                                          4. Training and/or competency improvement for members of        343-344    SEOJK 16
                                             the Board of Directors:

                                            a. Policy on training and/or competency improvement
                                               for members of the Board of Directors, including an
                                               orientation program for newly appointed members of
                                               the Board of Directors (if any).

                                            b. Training and/or competency improvement attended by
                                               members of the Board of Directors in the financial year
                                               (if any).

                                          5. The Board of Directors’ assessment of the performance        346-347    SEOJK 16
                                             of the committees that support the implementation of
                                             the duties of the Board of Directors in the financial year
                                             contains at least:

                                            a. Performance appraisal procedures.

                                            b. The criteria used include performance achievements
                                               during the financial year, competence and attendance
                                               at meetings.

                                            In the event that the Issuer or Public Company does not
                                            have a committee that supports the implementation of the
                                            duties of the Board of Directors, this will be disclosed.

                                          6. members of the Board of Commissioners who reach 5%            390       SEOJK 13
                                             (five percent) or more of paid-up capital, which includes                POJK 17
                                             the type and number of shares in:
                                             a. The bank in question...
                                             b. other banks.
                                             c. Non-bank financial institutions.
                                             d. Other companies domiciled both inside and outside the
                                                 country.

Board of Commissioners.                   1. Duties and responsibilities of the Board of Commissioners.   348-349    SEOJK 13
                                                                                                                     SEOJK 16
                                                                                                                      POJK 17

                                          2. Statement that the Board of Commissioners has guidelines      351       SEOJK 16
                                             or charter of the Board of Commissioners.

                                          3. Policy and implementation of the frequency of meetings       355-363    SEOJK 13
                                             of the Board of Commissioners, meetings of the Board of                 SEOJK 16
                                             Commissioners with the Board of Directors and the level
                                             of attendance of members of the Board of Commissioners
                                             at these meetings including attendance at the GMS.
                                             Information on the level of attendance of members of
                                             the Board of Commissioners at meetings of the Board
                                             of Commissioners, meetings between the Board of
                                             Commissioners and the Board of Directors, or GMS can be
                                             presented in tabular form.

                                          4. Training and/or competency improvement for members of        363-365    SEOJK 16
                                             the Board of Commissioners:




        PT Bank Pembangunan Daerah Jawa Timur Tbk
514     2023 Annual Report
Page 519
                   Criteria                                               Explanation                               Page      Regulations

                                                    a. Policy on training and/or competency improvement for
                                                       members of the Board of Commissioners, including an
                                                       orientation program for newly appointed members of
                                                       the Board of Commissioners (if any).

                                                    b. Training and/or competency improvement attended by
                                                       members of the Board of Commissioners in the financial
                                                       year (if any).

                                                  5. Assessment of the performance of the Board of Directors        366-376    SEOJK 16
                                                     and the Board of Commissioners as well as each member
                                                     of the Board of Directors and members of the Board of
                                                     Commissioners, contains at least:

                                                    a. Procedure for implementing performance appraisal.

                                                    b. The criteria used include performance achievements
                                                       during the financial year, competence and attendance
                                                       at meetings.

                                                    c. The party making the assessment.

                                                  6. The Board of Commissioners’ assessment of the                  376-382    SEOJK 16
                                                     performance of the Committees that support the
                                                     implementation of the duties of the Board of Commissioners
                                                     in the financial year includes:

                                                    a. Performance appraisal procedures.

                                                    b. The criteria used include performance achievements
                                                       during the financial year, competence and attendance
                                                       at meetings.

Nomination and remuneration of the Board of       Least load:
Directors and Board of
Commissioners.                                    1. Nomination procedures, including a brief description            386       SEOJK 16
                                                     of the policies and nomination process for members of
                                                     the Board of Directors and/or members of the Board of
                                                     Commissioners.

                                                  2. Procedures and implementation of remuneration for the          386-388    SEOJK 16
                                                     Board of Directors and Board of Commissioners, including:

                                                    a. Procedure for determining remuneration for the Board
                                                       of Directors and Board of Commissioners.

                                                    b. Disclosure of indicators for determining              the
                                                       remuneration of the Board of Directors.

                                                    c. The remuneration structure for the Board of Directors
                                                       and the Board of Commissioners such as salaries,
                                                       allowances, bonuses/ bonuses and others; And

                                                       Notes: if there are no performance bonuses, non
                                                       performance bonuses and stock options received by
                                                       each member of the Board of Commissioners and Board
                                                       of Directors, to be disclosed.

                                                  d. The amount of remuneration for each member of the Board
                                                     of Directors and members of the Board of Commissioners;
                                                  Disclosure of information can be presented in tabular form.

Sharia supervisory board, for Issuers or Public   Least load:                                                       382-386    SEOJK 16
Companies that carry out business activities
based on sharia principles as stated in the       a. Name.
articles of association.                          b. The legal basis for the appointment of the Sharia
                                                     Supervisory Board.

                                                  c. The assignment period of the Sharia Supervisory Board.

                                                  d. Duties and responsibilities of the Sharia Supervisory Board.

                                                  e. Frequency and method of providing advice and suggestions
                                                     as well as monitoring compliance with sharia principles in
                                                     the capital market to Issuers or Public Companies.




                                                                                          PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                 2023 Annual Report   515
Page 520
                   Criteria                                      Explanation                               Page      Regulations

Audit Committee.                          1. Name and title in the membership of the committee.            394-396    SEOJK 16
                                                                                                                       POJK 17
                                          2. Age.

                                          3. Citizenship.

                                          4. Educational background.

                                          5. Position history, including information on:

                                             a. Legal basis for appointment as committee member.

                                             b. Concurrent positions, both as members of the Board
                                                of Commissioners, members of the board of directors,
                                                and/or committee members and other positions (if
                                                any).

                                             c. Work experience and time period both inside and
                                                outside the issuer or public company.

                                          6. Period and tenure of audit committee members.

                                          7. Description of duties and responsibilities.                   393-394

                                          8. Audit committee independence statement.                        397

                                          9. Training and/or competency improvement that has been           399
                                             attended in the financial year (if any).

                                          10. Policy and implementation of the frequency of audit          397-398    SEOJK 13
                                              committee meetings and the level of attendance of audit                 SEOJK 16
                                              committee members at these meetings.                                     POJK 17

                                          11. Implementation of audit committee activities in the          399-401
                                              financial year according to what is stated in the audit
                                              committee guidelines or charter.

Issuer or Public Company nomination and   Least load:
remuneration committee or function.

                                          1. Name and title in the membership of the committee.            403-404    SEOJK 16
                                                                                                                       POJK 17

                                          2. Age.

                                          3. Citizenship.

                                          4. Educational background.

                                          5. Position history, including information on:

                                             a. Legal basis for appointment as committee member.

                                             b. Concurrent positions, both as members of the Board
                                                of Commissioners, members of the board of directors,
                                                and/or committee members and other positions (if any).

                                             c. Work experience and time period both inside and
                                                outside the issuer or public company.

                                          6. Period and tenure of committee members.

                                          7. Committee independence statement.                              405

                                          8. Training and/or competency improvement that has been          406-407
                                             attended in the financial year (if any).

                                          9. Description of duties and responsibilities.                   401-402

                                          10. Statement that already has a guideline or charter.            401

                                          11. Policy and implementation of the frequency of meetings       405-406
                                              and the level of attendance of members at these
                                              meetings.

                                          12. A brief description of the implementation of activities in   407-408
                                              the financial year.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
516    2023 Annual Report
Page 521
                       Criteria                                          Explanation                                 Page      Regulations

                                                In the event that a nomination and remuneration committee
                                                is not formed, it is sufficient for the Issuer or Public Company
                                                to disclose the information referred to in letter i) to letter l)
                                                and disclose:

                                                1. The reasons for not forming the committee

                                                2. Parties carrying    out    nomination    and    remuneration
                                                   functions.

Other committees owned by Issuers or Public     Least load:                                                          409-410    SEOJK 16
Companies in order to support the functions                                                                                      POJK 17
and duties of the Board of Directors (if any)   1. Name and title in the membership of the committee.
and/ or committees that support the functions   2. Age.
and duties of the Board of Commissioners.
                                                3. Citizenship.

                                                4. Educational background.

                                                5. Position history, including information on:

                                                   a. Legal basis for appointment as committee member.

                                                   b. Concurrent positions, both as members of the Board
                                                      of Commissioners, members of the board of directors,
                                                      and/or committee members and other positions (if any).

                                                   c. Work experience and time period both inside and
                                                      outside the issuer or public company.

                                                6. Period and tenure of committee members.

                                                7. Committee independence statement.                                  411

                                                8. Training and/or competency improvement that has been               413
                                                   attended in the financial year (if any).

                                                9. Description of duties and responsibilities.                        408

                                                10. Statement that already has a guideline or charter.                408

                                                11. Policy and implementation of the frequency of meetings           411-412
                                                    and the level of attendance of members at these
                                                    meetings.

                                                12. A brief description of the implementation of activities in       413-414
                                                    the financial year.

Company secretary.                              1. Name.                                                              416       SEOJK 16

                                                2. domicile.

                                                3. Position history, including:

                                                  a. Legal basis for appointment as company secretary.

                                                  b. Work experience and time period both inside and
                                                     outside the issuer or public company.

                                                4. Educational background.

                                                5. Training and/or competency improvement attended in the             416
                                                   financial year.

                                                6. Brief description of the implementation of the duties of the      416-417
                                                   corporate secretary in the financial year.

Internal Audit Unit.                            1. Name of the head of the internal audit unit.                       418       SEOJK 16
                                                                                                                                 POJK 17

                                                2. Position history, including:

                                                  a. Legal basis for appointment as company secretary.

                                                  b. Work experience and time period both inside and
                                                     outside the issuer or public company.

                                                3. Qualification or certification as internal audit profession (if    420
                                                   any).




                                                                                           PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                  2023 Annual Report   517
Page 522
                     Criteria                                          Explanation                                 Page      Regulations

                                               4. Number of employees (internal auditors) in the internal           419
                                                  audit unit.

                                               5. Training and/or competency improvement attended in the           419-420
                                                  financial year.

                                               6. The structure and position of the internal audit unit.            417

                                               7. Description of duties and responsibilities.                       419

                                               8. A statement that the internal audit unit has guidelines or       418-419
                                                  charters.

                                               9. A brief description of the implementation of the duties of        421
                                                  the internal audit unit in the financial year including the
                                                  policy and implementation of the frequency of meetings
                                                  with the directors, board of commissioners and/or the
                                                  audit committee.

Public Accountant.                             1. The name and year of the public accountant who audited           448-449     POJK 17
                                                  the annual financial statements for the last 5 years.

                                               2. The name and year of the public accountant who audited
                                                  the annual financial statements for the last 5 years.

                                               3. The amount of the fee for each type of service provided by
                                                  the Public Accounting Firm in the last financial year.

                                               4. Other services provided by the Public Accounting Firm
                                                  and public accountants in addition to auditing the annual
                                                  financial statements for the last financial year.

                                               Notes: if there is no other service in question, so that it is
                                               disclosed.

Description of the internal control system     1. Financial and operational control, as well as compliance         450-451    SEOJK 13
implemented by the issuer or public company.      with other laws and regulations.                                            SEOJK 16

                                               2. Review of the effectiveness of the internal control system.      452-453

                                               3. Statement of the Board of Directors and/or Board of               453       SEOJK 16
                                                  Commissioners regarding the adequacy of the internal
                                                  control system.

Risk management system implemented by          1. General description of the Issuer’s or Public Company’s risk     453-457    SEOJK 16
Issuers or Public Companies.                      management system.                                                          SEOJK 13

                                               2. Types of risk and how to manage them.                            458-462

                                               3. Review of the effectiveness of the Issuer’s or Public             463
                                                  Company’s risk management system.

                                               4. Statement of the Board of Directors and/or Board of               464       SEOJK 16
                                                  Commissioners or the audit committee on the adequacy of
                                                  the risk management system.

Compliance function.                           The level of the Bank’s compliance with all provisions and laws     464-466    SEOJK 13
                                               and regulations as well as fulfillment of commitments with the                  POJK 17
                                               competent authorities.

Legal cases with a material impact faced by    1. Main case/lawsuit.                                               467-468    SEOJK 16
issuers or public companies, subsidiaries,
members of the board of directors and          2. Case/lawsuit settlement status.
members of the board of commissioners (if      3. The impact on the condition of issuers or public companies.
any).                                             The risks faced by the company and the nominal value of
                                                  claims/lawsuits.

                                               4. Disclosure regarding legal issues at least includes:                        SEOJK 13
                                                  a. the number of civil and criminal cases faced and
                                                     decisions that have permanent legal force.
                                                  b. the number of civil and criminal matters faced and still in
                                                     the process of being resolved.

                                                 Notes: in the event that the company, subsidiaries,
                                                 members of the Board of Commissioners and members of
                                                 the Board of Directors do not have important matters, this
                                                 must be disclosed.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
518    2023 Annual Report
Page 523
                   Criteria                                           Explanation                              Page      Regulations

Information on administrative sanctions/                                                                       468-469    SEOJK 16
sanctions imposed on issuers or public
companies, board members commissioners
and members of the board of directors, by
the Financial Services Authority and other
authorities in the financial year (if any).

Information regarding the code of ethics of   1. Principles of the code of ethics.                             476-478    SEOJK 16
Issuers or Public Companies
                                              2. Forms of dissemination of the code of ethics and              478-479
                                                 enforcement efforts

                                              3. Statement that the code of ethics applies to members           479
                                                 of the Board of Directors, members of the Board of
                                                 Commissioners, and employees of the Issuer or Public
                                                 Company

Implementation of Governance in               1. Remuneration Committee                                        444-445     POJK 45
Providing Remuneration for Banks.                a. Name of members, composition, duties and
                                                    responsibilities.
                                                 b. Number of meetings held.
                                                 c. Remuneration that has been paid to members of the
                                                    Remuneration Committee for 1 (one) year.

                                              2. Remuneration policy formulation process which includes:        444
                                                a. Review of the background and objectives of the
                                                   Remuneration policy.
                                                b. Implementation of a review of the Remuneration policy
                                                   in the previous year, along with its improvements.
                                                c. Mechanism to ensure that Remuneration for Employees
                                                   in the control unit is independent from the work unit
                                                   they supervise.

                                              3. Remuneration policy coverage and its implementation            445
                                                 per business unit, per region and in subsidiaries or branch
                                                 offices located overseas

                                              4. Remuneration is associated with risks that include:            445
                                                 a. The main type of risk (key risk) used in implementing
                                                    Remuneration.
                                                 b. Criteria for determining the main types of risk,
                                                    including for risks that are difficult to measure.
                                                 c. The impact of determining the main risk on the
                                                    Variable Remuneration policy.
                                                 d. Changes in the determination of the main types of risk
                                                    compared to last year and the reasons, if any.

                                              5. Performance      measurement      is   associated    with      445
                                                 Remuneration which includes:
                                                 a. Review of Remuneration policies linked to performance
                                                     appraisal.
                                                 b. The method of linking individual Remuneration
                                                     with Bank performance, work unit performance and
                                                     individual performance.
                                                 c. A description of the method used by the Bank to state
                                                     that the agreed performance cannot be achieved, so
                                                     it is necessary to make adjustments to remuneration
                                                     and the amount of remuneration adjustments if this
                                                     condition occurs.

                                              6. Remuneration Adjustment is related to Performance and          445
                                                 Risk which includes:
                                                a. Policy regarding Variable Remuneration that is deferred,
                                                    the amount, and the criteria for determining the amount.
                                                b. The Bank’s policy regarding Variable Deferred
                                                    Remuneration which is postponed for payment (malus),
                                                    or withdrawn when it has been paid (clawback).

                                              7. The name of the external consultant and the duties of the      446
                                                 consultant related to the Remuneration policy, if the Bank
                                                 uses the services of an external consultant

                                              8. The Remuneration Package and facilities received by the        446
                                                 Board of Directors and Board of Commissioners include the
                                                 Remuneration structure and details of the nominal amount.




                                                                                      PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                             2023 Annual Report   519
Page 524
                   Criteria                                              Explanation                              Page      Regulations

                                                 9. Variable Remuneration includes:                                446
                                                    a. Forms of Variable Remuneration along with the reasons
                                                       for choosing this form. And
                                                    b. An explanation if there are differences in the provision
                                                       of Variable Remuneration among the Directors, Board
                                                       of Commissioners and/or Employees.

                                                 10. the number of Directors, Board of Commissioners and           446
                                                     Employees who receive Variable Remuneration for 1 (one)
                                                     year, and the total amount.

                                                 11. Position and number of parties who are material risk          446
                                                     takers.

                                                 12. Shares optionowned by the Board of Directors, Board of        446
                                                     Commissioners and Executive Officers.

                                                 13. The ratio of the highest and lowest salaries                  446

                                                 14. The number of beneficiaries and the total amount of           447
                                                     Variable Remuneration guaranteed unconditionally will
                                                     be given by the Bank to candidates for the Board of
                                                     Directors, candidates for the Board of Commissioners,
                                                     and/or prospective Employees during the first 1 (one) year
                                                     of work

                                                 15. The number of employees affected by termination of            447
                                                     employment and the total amount of severance paid

                                                 16. The total amount of deferred Variable Remuneration,           447
                                                     which consists of cash and/or shares or share-based
                                                     instruments issued by the Bank.

                                                 17. The total amount of deferred Variable Remuneration paid       447
                                                     for 1 (one) year.

                                                 18. Details of the amount of Remuneration given in one year       447
                                                     include:
                                                     a. Fixed or variable remuneration.
                                                     b. Deferred and non-deferred remuneration.
                                                     c. Forms of Remuneration provided in cash and/or shares
                                                        or share-based instruments issued by the Bank.

                                                 19. Quantitative information about:                               447
                                                     a. The total remaining Remuneration that is still
                                                        suspended, both exposed to implicit and explicit
                                                        adjustments.
                                                     a. Total reduction in Remuneration caused by explicit
                                                        adjustments during the reporting period.
                                                     b. Total reduction in Remuneration caused by implicit
                                                        adjustments during the reporting period.

A brief description of the policy of providing   In terms of compensation in the form of management               479-481    SEOJK 16
performance-based longterm compensation          stock ownership program (MSOP) and/or employee stock
to management and/or employees owned             ownership program (ESOP).
by issuers or public companies (if any),         The information disclosed shall contain at least:
including but not limited to management stock
ownership programs program ownership/            1. Number of shares and/or options.
MSOP) and/or employee stock ownership            2. Implementation period.
program (ESOP).
                                                 3. Eligible employee and/or management requirements.

                                                 4. The exercise price or the determination of the exercise
                                                    price.

A brief description of the Information           1. Share ownership of members of the Board of Directors and      391-392    SEOJK 16
disclosure policy regarding                         members of the Board of Commissioners no later than 3
                                                    (three) working days after the ownership or any change in
                                                    ownership of the shares of the Public Company.

                                                 2. Implementation of the intended policy.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
520    2023 Annual Report
Page 525
                    Criteria                                                Explanation                                 Page      Regulations

Description of the whistleblowing                  1. How to submit a violation report.                                  481       SEOJK 16
system at the Issuer or Public Company.
                                                   2. Protection for reporters.                                         481-482

                                                   3. The handling of complaints.                                       482-483

                                                   4. The party managing the complaint.                                  484

                                                   5. The results of handling complaints, at least:                      484

                                                     a. Number of complaints received and processed in the
                                                        financial year.

                                                     b. Complaint follow-up.

                                                   In the event that an issuer or a public company does not have
                                                   a whistleblowing system, this will be disclosed.

Description of the Issuer’s or Public Company’s    1. Programs and procedures carried out in Overcoming                 484-487    SEOJK 16
anti-corruption policy.                               corrupt practices, kickbacks, fraud, bribery and/or                           POJK 17
                                                      gratuities in Issuers or Public Companies.

                                                   2. Anti-corruption training/socialization for employees of            487
                                                      Issuers or Public Companies.

                                                   In the event that the Issuer or Public Company does not have
                                                   an anticorruption policy, the reasons for not having the said
                                                   policy will be explained.

Handling conflicts of interest                                                                                          489-490    SEOJK 13
                                                                                                                                    POJK 17

Provision of funds to related parties and          Information that needs to be disclosed is the total amount of         489       SEOJK 13
provision of large funds (large exposure).         debit balances for provision of funds to related parties and to
                                                   core debtors (individuals or groups) per report position

Transparency of the Bank’s financial and                                                                                 491       SEOJK 13
non-financial conditions that have not been                                                                                         POJK 17
disclosed in other reports.

Other information related to Bank Governance,                                                                            490       SEOJK 13
including owner
intervention, internal disputes or problems that
arise as a result of
remuneration policies at the Bank.

Number of Deviations (Internal Fraud).             Disclosure of irregularities (internal fraud) at least includes:     488-489    SEOJK 13
                                                   1. Number of deviations (internal fraud) that have been
                                                      resolved.
                                                   2. The number of irregularities (internal fraud) that are in the
                                                      process of being resolved internally at the bank.
                                                   3. Number of irregularities (internal fraud) that have not been
                                                      resolved internally at the bank.
                                                   4. The number of irregularities (internal fraud) that have been
                                                      followed up through the legal process.

Buy Back of Shares and/or Bank Bonds.              1. Policy in buying back shares or bonds of the Bank.                 489       SEOJK 13
                                                   2. Number of shares and/or bonds bought back.
                                                   3. Repurchase price per share and/or bond.
                                                   4. Increase in earnings per share and/or bonds.

Provision of Funds for Social Activities and/or    Disclosure regarding the provision of funds for social activities     489       SEOJK 13
Political Activities During the                    and/or political activities at least includes the recipient of the
Reporting Period.                                  funds and the
                                                   amount of funds provided.




                                                                                             PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                                    2023 Annual Report   521
Page 526
                   Criteria                                            Explanation                                Page      Regulations

Implementation of sustainable finance,                                                                             491        POJK 17
including implementation of social and
environmental responsibility

Implementation of Public Company               1. Statement regarding recommendations that have been              491-498    SEOJK 16
governance guidelines for Issuers that issue      implemented and/or
equity securities or Public Companies.
                                               2. Explanation of recommendations that have not been
                                                  implemented, accompanied by reasons and alternatives
                                                  for implementation (if any).

                                               Disclosure of information can be presented in tabular form.

                          SOCIAL AND ENVIRONMENTAL RESPONSIBILITY OF THE ISSUER OR PUBLIC COMPANY

Corporate Social Responsibility                1. The information disclosed in the social and environmental        502       SEOJK 16
                                                  responsibility section is a Sustainability Report as intended
                                                  in Financial Services Authority Regulation Number 51/
                                                  POJK.03/2017 concerning the Implementation of
                                                  Sustainable Finance for Financial Services Institutions,
                                                  Issuers and Public Companies, containing at least :

                                                 a) Explanation of sustainability strategy.

                                                 b) Overview of sustainability aspects (economic, social and
                                                    environmental).

                                                 c) Brief profile of the Issuer or Public Company.

                                                 d) Directors’ Explanation.

                                                 e) Sustainability governance.

                                                 f) Sustainability performance.

                                                 g) Written verification from an independent party, if any.

                                                 h) Feedback sheet for readers, if any.

                                                 i) The Issuer’s or Public Company’s response to feedback
                                                    from the previous year’s report.

                                               2. Sustainability Report as referred to in number 1), must
                                                  be prepared in accordance with the Technical Guidelines
                                                  for Preparing Sustainability Reports for Issuers and Public
                                                  Companies as stated in Appendix II which is an inseparable
                                                  part of this Financial Services Authority Circular Letter.

                                               3. Sustainability Report information in number 1) can:

                                                 a) Disclosed in other relevant sections outside the social
                                                    and environmental responsibility section, such as the
                                                    Directors’ explanation regarding the Sustainability
                                                    Report disclosed in the relevant section of the Directors’
                                                    Report; and/or

                                                 b) Refer to other sections outside the social and
                                                    environmental responsibility section while still referring
                                                    to the Technical Guidelines for Preparing Sustainability
                                                    Reports for Issuers and Public Companies as listed in
                                                    Appendix II which is an inseparable part of this Financial
                                                    Services Authority Circular Letter, such as the profile
                                                    Issuer or Public Company.




       PT Bank Pembangunan Daerah Jawa Timur Tbk
522    2023 Annual Report
Page 527
                  Criteria                                              Explanation                                Page         Regulations

                                                4. The Sustainability Report as referred to in number 1)
                                                   is an inseparable part of the Annual Report but can be
                                                   presented separately from the Annual Report.

                                                5. In the event that the Sustainability Report is presented
                                                   separately from the Annual Report, the information
                                                   disclosed in the Sustainability Report must:

                                                   a) Contains all information as intended in number 1); And

                                                   b) Prepared in accordance with the Technical Guidelines
                                                      for Preparing Sustainability Reports for Issuers and
                                                      Public Companies as stated in Appendix II which is
                                                      an inseparable part of this Financial Services Authority
                                                      Circular Letter.

                                                   6. If the Sustainability Report is presented separately from
                                                      the Annual Report, then the social and environmental
                                                      responsibility section contains information that
                                                      information regarding social and environmental
                                                      responsibility has been disclosed in the Sustainability
                                                      Report which is presented separately from the Annual
                                                      Report.

                                                7. Submission of a Sustainability Report which is presented
                                                   separately with the Annual Report must be submitted
                                                   simultaneously with the submission of the Annual Report.



NOTE
SEOJK 16   :   Financial Services Authority Circular No. 16/SEOJK.04/2021 concerning Form and Content of Annual Reports of Issuers or Public
               Companies.

SEOJK 9    :   Financial Services Authority Circular No. 9/SEOJK.03/2020 concerning Transparency and Publication of Conventional Commercial
               Bank Reports.

SEOJK 13       Financial Services Authority Circular No. 13/SEOJK.03/2017 concerning Implementation of Governance for Commercial Banks.

POJK 45    :   Financial Services Authority Regulation No. 45/POJK.03/2015 concerning Implementation of Governance in Providing
               Remuneration for Commercial Banks.

POJK 17    :   Financial Services Authority Regulation 17 of 2023 concerning the Implementation of Governance for Commercial Banks




                                                                                        PT Bank Pembangunan Daerah Jawa Timur Tbk
                                                                                                               2023 Annual Report         523
Page 528
Laporan Keuangan
31 Desember 2023 dan 2022
dan untuk tahun yang berakhir pada tanggal-tanggal tersebut
beserta laporan auditor independen/

Financial Statements
as of December 31, 2023 and 2022
and for the years then ended with independent auditor’s report




       PT Bank Pembangunan Daerah Jawa Timur Tbk
Page 529
                                                                                            The original financial statements included herein are in Indonesian language

 PT BANK PEMBANGUNAN DAERAH                                                                                     PT BANK PEMBANGUNAN DAERAH
 JAWA TIMUR Tbk                                                                                                                     JAWA TIMUR Tbk
 LAPORAN KEUANGAN                                                                                                          FINANCIAL STATEMENTS
 31 Desember 2023 dan 2022                                                                                              December 31, 2023 and 2022
 beserta laporan auditor independen                                                                                with independent auditor’s report
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                    (Expressed in millions of Rupiah, unless otherwise stated)




                                                              Daftar Isi/Table of Contents


                                                                               Halaman/
                                                                                Page


Surat Pernyataan Direksi            .............................................           ................................. Board of Director’s Statement

Laporan Auditor Independen .........................................                        ................................... Independent Auditors’ Report

Laporan Posisi Keuangan .............................................. 1 - 2 ............................. Statements of Financial Position

Laporan Laba Rugi dan ....................................................            3     ................................. Statements of Profit or Loss and
 Penghasilan Komprehensif Lain .....................................                  3     .................................. Other Comprehensive Income

Laporan Perubahan Ekuitas ..............................................              4     ................................ Statements of Changes in Equity

Laporan Arus Kas ............................................................. 5 - 6 .......................................... Statements of Cash Flows

Catatan atas Laporan Keuangan ...................................... 7 - 209 .............................. Notes to the Financial Statements


                                                                                    *****
Page 530
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                             SURAT Pf, ru\ryATAAI{ I'IREKSI                                               K)ARD OF DIRECTORS' STATEMENT
                           TENTANG TANC.GUNG JAWAB ATAS                                                  REGARDING THE RESN)IISIBILITY FOR
                            I-1.FORAN KEUANGAN TANmAL                                                        I-ITE FINAI{U L STATEM ENT
                           3I DESEMBER fl23 DAN 2022                                                         DECE MBE R 3 1, 2023 AND 202 2
                     DAN UNTUX TAHI]N YANG BERAKHIR PADA                                                  AND FOR THE YEARS THEN ENDED
                         TAN@AL - TANG,GAL TERSEBIIT

                           PI BANK PEMBANGUNAN DAERAH                                                       PT BANK PEMBANG T]N4N DAERAH
                                       JAWA TIMUR TbK                                                                    JAIYA TI MAR TbK

              Ksmi ymg bertaD& tsrlg8l dibawsh iri                                          Ve, 2 undedigned :
              l.   NEne                : Busul ImaD                                                                               Busml Imat
                   Alelat ksnt6        :   L Basuki Rshmad 9E-lO4                                  Ofice dnss                     Jl. Basuki Rah ad 9&101
                                           Surabaya                                                                               $rabaln
                   Alsm€t &rnisili     :   L  Puaeak Cogkeh tlo. l0                                Retidetial     d*ts            Jl. Pwuak Cengkeh No. ,0
                                           M"l"ng                                                                                 Mal.Dtg
                   Nom(r telepon       : (031) 5310090 ex.206                                      Telephae                       (03I ) 53llbtn en.206
                   Jabalro             :   Drektl[ Ulflru                                                                         Pruident Dirzctoi


                    Nama                   &li M6ia o                                                                             Edi Mosriolto
                    Alalnat k8ntor         Jl. Basuki Rrbtmd 98-104                                Ojice ddrcss                   l. Buuki Rahod9&lA
                                           sEabaya                                                                                tutueryn
                    Alamal dornisrli       L Meyar Tirtoy6 Ut8'! 8 No 28                           R*idzntial aidfts\             Jl. Ma4to littolao Uum 8 No 28
                                           Sursbaya                                                                               &rohp
                    N€,moa telepm          (031) 53tm90 ext 208                                    Telepla ne                     (031) 53lul90 en 28
                    Jabatan                Direktnr Keuargaq lrcarury dn Global                                                   Fhwee, Trcanry otd Gldal
                                                                                                                                  9Qic$ DiBcbt

              lvleayaraka bohwat                                                            Ibclarc tlxtc
              L K,mi bt'l@ggrDg ja$/rb dss p€rl}rrsutrm (h p.alarjim                        ). lfe at rcspwibb for tlc pnpaia @rd prcteflatton o!
                lapao keueEm PI Brok Feobeguom Ds€rsh Jawa                                     fr@rcial tloten cia oI PT M Pcnbanguut Deruh Jowo
                   Timrr Tbk;                                                                     T rur Tt*:
              2. l,aporan keuangsn PT Bank PerDban$matr Darrah Jaws TimE                    2. The lnancial statcnotts { I'T Bank Paabaguran Daemh Jatw
                   Tbk telah dis.lsun dan disajik& sesuai d€ngm StEde.                         Tinw Tbk ha'e been wryr"l and pnsentd in accordarce wirt
                   AkmtaDsi Keuangu di lndmesia:                                                  I ndac s i dn Fi rw, cia I .4c cdrni n g S andzrds ;

              3. a S€oua inf.ftD&si ddm lryotan ke,egm PT Bdlk                              3. a All intomaion in c lrnrial tzteneta oJ PT Bat*
                      Pembmguno Daerah Jawa Timru' Tbk tdah diriust               wa             Penbagumn Demh Ja*a Tinrur Tt* luee lEen
                      len8kap &n b6rar;                                                               ditckxed in a canplete otd nrrtful nataea

                   b. Laporaa keuaogan PT Bonk Pernbangurao Daerah Jawa                           b. The lrwdal ttote enB of PT Bak Penfungoutt
                      Timrr Tbk tidrk rne.g"' r-g itrffrtrusi alau fsltu truterial                    Mt Jawa Tinur Tb* do w)t @nbin any irrc&iccl
                      yeS tid6k b<6dr, &d tidok rE?ogbil&gk& inhrEai dar                              t {q*,$ s t,ebl Je.t, nr b tlcq o* ery
                      faka mat€riol;                                                                  iaJbnnaion or nacrial facu:

              4. Kaoi berlanggun8 jawab atas sisem peryeodsliao int6Dd                      4. We an nspottsible lot n B@rf Penbrgut@, D@rah Jaea
                   daldn PT Bank Pembanglrnan Daerah Jawa Timur Tbk.                              TinurTbk intemal co nol ryttem-

              Demikian pemyataan ini dibuar dengan sebenarnya.                               This sldrernent has been ,nd& trtthfully.


                                       / Atas naoa aan rnewaUf l}rr*si ; For aad on btnlf ol tte Boad of
                                       ,                Srrabqa.l5 l$r]Eifr24 I Jonuoy 15, 2024                                              f
                                                                                       TElvtPtL
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                                                    Busrul lman                                     Edi Masrianto -
                                                U|alr,al l'ft s ident Di recror            Direlt Keuangan, Trea$iry dan Clobal
                                                                                       ServiceVfinarce, Treasury a Global Semices
                                                                                                         Dilector




bankjatim.co.id
Page 531

          
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Page 540
                                                                                 The original financial statements included herein are in Indonesian language

PT BANK PEMBANGUNAN DAERAH                                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                            JAWA TIMUR Tbk
LAPORAN POSISI KEUANGAN                                                                          STATEMENTS OF FINANCIAL POSITION
31 Desember 2023 dan 2022                                                                                     December 31, 2023 and 2022
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                           (Expressed in millions of Rupiah, unless otherwise stated)


                                                                            31 Desember/        31 Desember/
                                                       Catatan/             December 31,        December 31,
                                                        Notes                   2023                2022

ASET                                                                                                                                                      ASSETS

Kas                                              2b, 2d, 2f, 3, 44, 45             2.652.775          1.988.262                                              Cash

Giro pada Bank Indonesia                      2b, 2d, 2g, 4, 43, 44, 45            7.971.412         10.786.740              Current accounts with Bank Indonesia

Giro pada bank lain                         2b, 2c, 2d, 2g, 5, 43, 44, 45           491.330             303.129                  Current accounts with other banks
Cadangan kerugian penurunan nilai                    2m, 5, 43e                      (1.077)              (441)                   Allowance for impairment losses
                                                                                    490.253             302.688

Penempatan pada Bank Indonesia                       2b, 2c, 2d,                                                                  Placements with Bank Indonesia
 dan bank lain                                    2h, 6, 43, 44, 45                5.234.721          6.916.329                                  and other banks
Cadangan kerugian penurunan nilai                    2m, 6, 43e                       (5.026)            (3.154)                  Allowance for impairment losses
                                                                                   5.229.695          6.913.175

Tagihan spot dan derivatif                                  7                               -               361                  Receivables of spot and derivative

Surat berharga                             2b, 2c, 2d, 2i, 8, 43, 44, 45          16.323.831         23.217.671                             Marketable securities
Cadangan kerugian penurunan nilai                     2m, 8, 43e                       (511)              (400)                   Allowance for impairment losses
                                                                                  16.323.320         23.217.271

Surat berharga yang dijual dengan                                                                                                 Marketable securities sold under
 janji dibeli kembali                            2d,2j,9, 43, 44, 45               8.303.663          4.095.066                         repurchased agreement

Tagihan dari surat berharga yang dibeli                                                                                     Receivable from marketable securities
  dengan janji dijual kembali                     2d, 10, 43, 44, 45               6.247.318          7.822.847              purchased under resale agreement

Tagihan lainnya                                2d, 2k, 11, 43, 44, 45               223.138             286.147                                  Other receivables

Kredit yang diberikan
  dan pembiayaan syariah                                                                                                              Loans, and sharia financing
  - Pihak berelasi                                                                   184.848             134.871                                Related parties -
                                             2c, 2d, 2e, 12, 40, 43, 44
  - Pihak ketiga                                                                 54.576.055          46.061.786                                   Third parties -
Jumlah                                                                           54.760.903          46.196.657                                              Total
Cadangan kerugian penurunan nilai                    2m, 12, 43e                 (1.364.905)         (1.318.612)                  Allowance for impairment losses
                                                                                 53.395.998          44.878.045

Pendapatan bunga yang
 masih akan diterima                           2b, 2d, 13, 43, 44, 45               685.734             646.125                            Accrued interest income

Biaya dibayar dimuka                                    2n, 14                      207.452             166.661                                  Prepaid expenses

Aset tetap                                                                                                                                          Fixed assets
 Biaya perolehan                                                                   2.230.878          2.109.260                                           Cost
                                                         2o, 15
 Akumulasi penyusutan                                                              (953.165)          (825.010)                        Accumulated depreciation
Nilai buku                                                                         1.277.713          1.284.250                                   Net book value

Aset pajak tangguhan, neto                              2x, 22g                     472.123             502.238                            Deferred tax assets, net

Piutang pajak                                             22a                            777                493                                    Tax receivables

Aset lain-lain, neto                                       16                       373.402             140.998                                  Other assets, net

JUMLAH ASET                                                                      103.854.773        103.031.367                                   TOTAL ASSETS




 Catatan atas laporan keuangan merupakan bagian yang                                                      The accompanying notes to the financial statements
 tidak terpisahkan dari laporan keuangan secara keseluruhan                                      form an integral part of these financial statements as a whole

                                                                             1
Page 541
                                                                              The original financial statements included herein are in Indonesian language

PT BANK PEMBANGUNAN DAERAH                                                                         PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                         JAWA TIMUR Tbk
LAPORAN POSISI KEUANGAN                                                                       STATEMENTS OF FINANCIAL POSITION
31 Desember 2023 dan 2022                                                                                  December 31, 2023 and 2022
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)

                                                                  31 Desember/       31 Desember/
                                                 Catatan/         December 31,       December 31,
                                                  Notes               2023                2022

 LIABILITAS, DANA SYIRKAH                                                                                                    LIABILITIES, TEMPORARY
   TEMPORER DAN EKUITAS                                                                                                 SYIRKAH FUNDS AND EQUITY

 LIABILITAS                                                                                                                                  LIABILITIES
 Liabilitas segera                             2q, 17, 44, 45           987.604               872.514                         Obligations due immediately

 Simpanan dari nasabah                                                                                                           Deposits from customers
   - Pihak berelasi                              2b, 2d, 2e          12.644.538           15.295.405                                  Related parties -
   - Pihak ketiga                            2r, 18, 40, 44, 45      63.205.317           64.630.285                                      Third parties -
                                                                     75.849.855           79.925.690

 Simpanan dari bank lain                                                                                                        Deposits from other banks
   - Pihak berelasi                              2d, 2e, 2s              56.694               141.996                                  Related parties -
   - Pihak ketiga                              19, 40, 44, 45         2.503.627             3.168.842                                      Third parties -
                                                                      2.560.321             3.310.838

 Liabilitas surat berharga yang dijual               20               7.915.163             3.891.346              Liabilities of marketable securities sold
   dengan janji dibeli kembali                                                                                                under repurchase agreement

 Pinjaman yang diterima                       2d, 2t, 21,44, 45         596.977               631.464                                           Borrowings

 Utang pajak                                      2x, 22b               143.245                90.783                                       Taxes payable

 Beban yang masih harus dibayar                2d, 23, 44, 45           504.748               520.840                                   Accrued expenses

                                              2b, 2d, 2z, 2ac,
 Liabilitas lain-lain                                                   779.314               472.054                                       Other liabilities
                                                24, 44, 45

 JUMLAH LIABILITAS                                                   89.337.227           89.715.529                                  TOTAL LIABILITIES

 DANA SYIRKAH TEMPORER                                                                                                   TEMPORARY SYIRKAH FUNDS
 Simpanan dari nasabah                                                                                                           Deposits from customers
   - Pihak berelasi                                  25                   3.764                 2.302                                 Related parties -
   - Pihak ketiga                                    25               2.343.291             1.839.390                                    Third parties -
                                                                      2.347.055             1.841.692
 Simpanan dari bank lain                                                                                                        Deposits from other banks
   - Pihak ketiga                                    25                    19.422              28.285                                     Third parties -
                                                                           19.422              28.285
 TOTAL DANA SYIRKAH                                                                                                                TOTAL TEMPORARY
                                                                      2.366.477             1.869.977
  TEMPORER                                                                                                                           SYIRKAH FUNDS

 EKUITAS                                                                                                                                         EQUITY
 Modal saham:                                                                                                                               Share capital:
  - Seri A : nilai nominal Rp250                                                                                        Series A : Rp250 (full Rupiah) -
    (Rupiah penuh) per saham                                                                                                      par value per share
  - Seri B : nilai nominal Rp250                                                                                        Series B : Rp250 (full Rupiah) -
    (Rupiah penuh) per saham                                                                                                      par value per share

 Modal dasar:                                                                                                                                 Authorized:
  - Seri A : 24.000.000.000 saham                                                                                    Series A : 24,000,000,000 shares -
  - Seri B : 12.000.000.000 saham                                                                                    Series B : 12,000,000,000 shares -

 Modal ditempatkan dan disetor penuh:                                                                                               Issued and fully paid:
  - Seri A - 11.934.147.982 saham                                                                                   Series A - 11,934,147,982 shares -
  - Seri B - 3.081.350.100 saham                                                                                     Series B - 3,081,350,100 shares -
    (2023 : 15.015.498.082 saham)                    26               3.753.875             3.753.875                 (2023 : 15,015,498,082 shares)

 Tambahan modal disetor - neto                    2aa, 27               532.734               532.734                                  Paid-in capital - net

 Surplus revaluasi aset tetap                                           788.049               789.998                  Revaluation surplus of fixed assets

 Pengukuran kembali liabilitas imbalan                                                                              Remeasurement of defined employee
  kerja pasti - setelah pajak tangguhan                                (117.777)             (100.912)               benefit liability - net of deferred tax

 Kerugian yang belum direalisasi atas                                                                                      Unrealized loss financial assets
  aset keuangan yang diukur pada nilai                                                                                    measured at fair value through
  wajar melalui penghasilan komprehensif                                                                                   other comprehensive income
  lain - setelah pajak tangguhan                     8                  (63.958)             (115.048)                              - net of deferred tax

 Saldo laba                                                                                                                             Retained earnings
  Cadangan umum                                                       5.788.041             5.042.390                                   General reserve
  Belum ditentukan penggunaannya                                      1.470.105             1.542.824                                    Unappropriated
 JUMLAH EKUITAS                                                      12.151.069           11.445.861                                  TOTAL EQUITY
 JUMLAH LIABILITAS, DANA SYIRKAH                                                                                      TOTAL LIABILITIES, TEMPORARY
                                                                    103.854.773          103.031.367
   TEMPORER DAN EKUITAS                                                                                                 SYIRKAH FUNDS AND EQUITY



Catatan atas laporan keuangan merupakan bagian yang                                                  The accompanying notes to the financial statements
tidak terpisahkan dari laporan keuangan secara keseluruhan                                  form an integral part of these financial statements as a whole

                                                                       2
Page 542
                                                                             The original financial statements included herein are in Indonesian language

PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
LAPORAN LABA RUGI                                                                                 STATEMENTS OF PROFIT OR LOSS
DAN PENGHASILAN KOMPREHENSIF LAIN                                                           AND OTHER COMPREHENSIVE INCOME
Untuk tahun yang berakhir pada                                                                               For the years then ended
31 Desember 2023 dan 2022                                                                                December 31, 2023 and 2022
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)


                                                                         31 Desember/        31 Desember/
                                                         Catatan/        December 31,        December 31,
                                                          Notes              2023                2022

  Pendapatan bunga dan syariah                       2e,2v, 2w, 30, 40          7.357.284           6.882.651                        Interest and sharia income
  Beban bunga dan syariah                               2e, 40, 31            (2.316.184)         (1.965.595)                       Interest and sharia expense
  PENDAPATAN BUNGA                                                                                                                     INTEREST AND SHARIA
   DAN SYARIAH, NETO                                                           5.041.100           4.917.056                                     INCOME, NET
  PENDAPATAN OPERASIONAL LAINNYA                                                                                                 OTHER OPERATING INCOME
  Administrasi giro, tabungan                                                                                                         Current accounts, savings
   dan deposito                                               32                 193.996             184.480                  and deposits administration fees
  Penerimaan kembali kredit hapus buku                        32                 127.264              56.653                       Collection of loans written-off
  Administrasi kredit                                         32                  30.880              42.511                            Loan administration fees
  Provisi dan komisi selain dari                                                                                                   Fees and commissions from
   kredit yang diberikan                                  2w, 32                  22.093              11.105                                  other than loans
  Lainnya                                                   32                   274.187             238.820                                              Others
  JUMLAH PENDAPATAN                                                                                                                               TOTAL OTHER
   OPERASIONAL LAINNYA                                                           648.420             533.569                            OPERATING INCOME

  BEBAN OPERASIONAL LAINNYA                                                                                                  OTHER OPERATING EXPENSES
  Tenaga kerja dan tunjangan karyawan                     2z, 34              (1.762.643)         (1.674.698)                  Salaries and employee benefits
  Umum dan administrasi                                     35                (1.182.987)         (1.229.388)                       General and administrative
  Penyisihan kerugian penurunan                                                                                                       Provision for impairment
   nilai atas aset keuangan                               2m, 33                (694.136)           (404.659)                      losses on financial assets
  Beban lainnya                                             36                  (194.713)           (201.054)                                  Other expenses
  JUMLAH BEBAN OPERASIONAL LAINNYA                                            (3.834.479)         (3.509.799)          TOTAL OTHER OPERATING EXPENSES
  LABA OPERASIONAL                                                              1.855.041           1.940.826                  INCOME FROM OPERATIONS

  PENDAPATAN (BEBAN) NON-OPERASIONAL                                                                                   NON-OPERATING INCOME (EXPENSES)
  Fee jasa pelayanan pajak                                  37                      6.444               6.084                                Tax service fees
  Keuntungan atas penjualan aset tetap                      37                      5.608               5.274                 Gain on sale of fixed asset - net
  Keuntungan selisih kurs                                 2b, 37                    2.390                   -                       Gain on foreign exchange
  Keuntungan penjualan efek-efek neto                       37                      8.698               2.757                  Gain on sale of securities - net
  Beban non-operasional                                     38                   (19.339)            (83.405)                        Non-operating expenses
  Lainnya                                                   37                     33.901            158.513                                            Others
  JUMLAH PENDAPATAN (BEBAN)                                                                                                TOTAL NON OPERATING INCOME
   NON OPERASIONAL                                                                37.702              89.223                                   (EXPENSES)
  LABA SEBELUM BEBAN PAJAK                                                     1.892.743           2.030.049                INCOME BEFORE TAX EXPENSE

  BEBAN PAJAK:                                                                                                                                 TAX EXPENSES:
   Kini                                                2x, 22c, 22e            (399.474)           (307.452)                                          Current
   Tangguhan                                                                     (23.164)          (179.773)                                         Deferred
                                                                               (422.638)           (487.225)
  LABA TAHUN BERJALAN                                                          1.470.105           1.542.824                           INCOME FOR THE YEAR

  PENGHASILAN KOMPREHENSIF LAIN                                                                                           OTHER COMPREHENSIVE INCOME
  Pos-pos yang tidak akan direklasifikasi                                                                                    Items that will not be reclassified
   ke laba rugi:                                                                                                               subsequently to profit or loss:
   Surplus (defisit) revaluasi aset tetap                                         (1.949)              40.281       Revaluation surplus (deficit) of fixed assets
   Pengukuran kembali liabilitas imbalan kerja                                   (21.898)            100.163       Remeasurement of employee benefit liability
   Penyesuaian saldo awal                                                               -            (19.678)                   Beginning balance adjustment
   Pajak penghasilan terkait                                                        5.033            (17.586)                            Related income taxes
                                                                                 (18.814)            103.180
  Pos-pos yang akan direklasifikasi                                                                                              Items that will be reclassified
   ke laba rugi:                                                                                                               subsequently to profit or loss:
   Keuntungan yang belum direalisasi
     atas aset keuangan yang diukur pada nilai                                                                                       Unrealized gain on financial
                                                                                  63.074            (400.611)
     wajar melalui penghasilan                                                                                                   assets measured at fair value
     komprehensif lain                                                                                                    through other comprehensive income
   Penyesuaian saldo awal                                                               -             (3.730)                    Beginning balance adjustment
   Pajak penghasilan terkait                                                     (11.984)              76.116                            Related income taxes
                                                                                   51.090           (328.225)
  PENGHASILAN KOMPREHENSIF LAIN                                                                                                   OTHER COMPREHENSIVE
   NETO SETELAH PAJAK                                                             32.276            (225.045)                       INCOME - NET OF TAX
  JUMLAH LABA KOMPREHENSIF                                                                                                            TOTAL COMPREHENSIVE
   TAHUN BERJALAN                                                              1.502.381           1.317.779                         INCOME FOR THE YEAR
  LABA PER SAHAM DASAR                                                             97,91              102,75                   BASIC EARNINGS PER SHARE
                                                          2y, 39
   (DALAM NILAI PENUH)                                                                                                                  (IN FULL AMOUNT)




 Catatan atas laporan keuangan merupakan bagian yang                                                  The accompanying notes to the financial statements
 tidak terpisahkan dari laporan keuangan secara keseluruhan                                  form an integral part of these financial statements as a whole

                                                                         3
Page 543
                                                                                                                                                                             The original financial statements included herein are in Indonesian language

 PT BANK PEMBANGUNAN DAERAH                                                                                                                                                                        PT BANK PEMBANGUNAN DAERAH
 JAWA TIMUR Tbk                                                                                                                                                                                                        JAWA TIMUR Tbk
 LAPORAN PERUBAHAN EKUITAS                                                                                                                                                                    STATEMENTS OF CHANGES IN EQUITY
 Untuk tahun yang berakhir pada                                                                                                                                                                                For the years then ended
 tanggal-tanggal 31 Desember 2023 dan 2022                                                                                                                                                                 December 31, 2023 and 2022
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                                                                                       (Expressed in millions of Rupiah, unless otherwise stated)
 _____________________________________________________________________________________________________________                              _________________________________________________________________________________________________




                                                                                                                               Keuntungan (kerugian) yang belum
                                                                                                        Pengukuran              direalisasi atas aset keuangan
                                                                                                    kembali liabilitas            yang diukur pada nilai wajar
                                           Modal                                                       imbalan kerja                   melalui pendapatan
                                       ditempatkan                                  Surplus           pasti - setelah              komprehensif lain - setelah
                                       dan disetor          Tambahan            revaluasi aset       pajak tangguhan/                   pajak tangguhan/
                                          penuh/           modal disetor-            tetap/         Remeasurement of           Unrealized gain (loss) on financial        Saldo laba/ Retained earnings
                                       Issued and              neto/             Revaluation        defined employee             assets measured at fair value         Cadangan              Belum ditentukan
                            Catatan/       fully           Other paid-in           surplus of        benefit liability -         through other comprehensive            umum/                 penggunaannya/        Total ekuitas/
                             Notes     paid capital         capital-net           fixed asset       net of deferred tax           income - net of deferred tax       General reserve          Unappropriated        Total equity
31 Desember 2021                               3.753.875              532.734            749.717                   (163.811)                              213.177              4.301.777               1.523.070         10.910.539                  December 31, 2021
Pembentukan cadangan umum     26e                      -                    -                  -                           -                                    -                740.613               (740.613)                  -     Appropriation for general reserve
Pembagian dividen tunai     2ab, 26e                   -                    -                  -                           -                                    -                      -               (782.457)          (782.457)        Distribution of cash dividends
Jumlah laba komprehensif                                                                                                                                                                                                                   Total comprehensive income
  tahun berjalan                                       -                    -             40.281                      62.899                            (328.225)                      -               1.542.824          1.317.779                         for the year
31 Desember 2022                               3.753.875              532.734            789.998                   (100.912)                            (115.048)              5.042.390               1.542.824         11.445.861                  December 31, 2022
Pembentukan cadangan umum     26e                      -                    -                  -                           -                                    -                745.651               (745.651)                  -     Appropriation for general reserve
Pembagian dividen tunai     2ab, 26e                   -                    -                  -                           -                                    -                      -               (797.173)          (797.173)        Distribution of cash dividends
Jumlah laba komprehensif                                                                                                                                                                                                                   Total comprehensive income
  tahun berjalan                                       -                    -             (1.949)                   (16.865)                               51.090                      -               1.470.105          1.502.381                         for the year
31 Desember 2023                               3.753.875              532.734            788.049                   (117.777)                             (63.958)              5.788.041               1.470.105         12.151.069                  December 31, 2023




    Catatan atas laporan keuangan merupakan bagian yang                                                                                                                                                                  The accompanying notes to the financial statements
    tidak terpisahkan dari laporan keuangan secara keseluruhan                                                                                                                                                  form an integral part of these financial statements as a whole

                                                                                                                                 4
Page 544
                                                                          The original financial statements included herein are in Indonesian language

PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
LAPORAN ARUS KAS                                                                                     STATEMENTS OF CASH FLOWS
Untuk tahun yang berakhir pada tanggal-tanggal                                                               For the years then ended
31 Desember 2023 dan 2022                                                                                December 31, 2023 and 2022
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                      (Expressed in millions of Rupiah, unless otherwise stated)


                                                    Catatan/   December 31,        December 31,
                                                     Notes         2023                2022
 Arus kas dari aktivitas operasi                                                                                 Cash flows from operating activities
 Penerimaan bunga, syariah,                                                                                                Receipts of interest, sharia,
  provisi dan komisi                                                7.324.150            7.030.426                            fees and commissions
 Pembayaran bunga, syariah,                                                                                               Payments of interest, sharia,
  provisi dan komisi                                               (2.310.264)          (1.931.344)                           fees and commissions
 Penerimaan dari pendapatan                                                                                                          Receipts of other
  operasional lainnya                                                 521.156              476.364                                 operating income
 Penerimaan kembali dari
  kredit hapus buku                                                   127.264               56.653                       Collection of loans written-off
 Penerimaan dari pendapatan                                                                                                              Receipts from
  non-operasional                                                      60.386              172.136                             non-operating income
 Pembayaran untuk biaya                                                                                                                   Payments for
  non-operasional                                                    (19.337)              (82.913)                         non-operating expenses
 Pembayaran beban tenaga kerja                                                                                                    Payments of salaries
  dan tunjangan karyawan                                           (1.763.167)          (1.659.597)                           and employee benefits
 Pembayaran beban umum                                                                                                            Payments of general
  dan administrasi                                                 (1.283.327)          (1.296.665)                     and administrative expenses
 Pembayaran pajak                                                    (368.455)            (389.372)                                  Payment of taxes
 Arus kas dari aktivitas operasi sebelum                                                                   Cash flow from operating activities before
   perubahan dalam aset dan liabilitas operasi                      2.288.406            2.375.688       changes in operating assets and liabilities
 Perubahan dalam aset                                                                                                               Changes in operating
   dan liabilitas operasi:                                                                                                         assets and liabilities:
 Penempatan pada Bank Indonesia                                                                                           Placement with Bank Indonesia
   dan bank lain                                                       (1.500)              (7.000)                                      and other bank
 Kredit yang diberikan                                             (9.193.797)          (4.347.656)                                                  Loans
 Surat berharga yang dijual dengan                                                                                       Marketable securities sold under
   janji dibeli kembali                                            (4.208.597)          (4.095.066)                              repurchase agreement
 Tagihan dari surat berharga yang dibeli                                                                         Receivable from marketable securities
   dengan janji dijual kembali                                       1.575.529          (4.402.162)                purchased under resale agreement
 Aset lain-lain dan tagihan lainnya                                  (166.678)            (117.044)                 Other assets and other receivables
 Liabilitas segera                                                     115.091              278.638                          Obligations due immediately
 Simpanan dari nasabah                                             (3.570.473)          (1.434.484)                              Deposits from customers
 Simpanan dari bank lain                                             (759.380)            (848.777)                             Deposits from other banks
 Liabilitas surat berharga yang dijual                                                                           Liabilities of marketable securities sold
   dengan janji dibeli kembali                                      4.023.817            3.891.346                         under repurchase agreement
 Liabilitas lain-lain                                                 200.981              (39.476)                                         Other liabilities

 Kas bersih digunakan untuk aktivitas operasi                      (9.696.601)          (8.745.993)              Net cash used in operating activities

 Arus kas dari aktivitas investasi                                                                                Cash flows from investing activities
 Penjualan surat berharga                                           6.948.323            8.846.760                   Proceeds of marketable securities
 Perolehan aset tetap                                  15           (149.298)            (248.269)                          Acquisition of fixed assets
 Penjualan aset tetap                                  15               5.608                5.274                                    Fixed asset sold
 Kas bersih diperoleh dari aktivitas investasi                      6.804.633            8.603.765        Net cash provided from investing activities

 Arus kas dari aktivitas pendanaan                                                                               Cash flows from financing activities
 Penerimaan (pembayaran) dari                                                                                                 Proceeds (payments of)
  pinjaman yang diterima                                               43.578              (23.825)                                 from borrowings
 Penerimaan (pembayaran) liabilitas sewa                                6.316              (21.111)             Proceeds (payments of) lease liability
 Pembayaran dividen kas                                26e          (797.173)             (782.457)                       Payments of cash dividends
 Kas bersih digunakan untuk aktivitas pendanaan                     (747.279)             (827.393)              Net cash used in financing activities




Catatan atas laporan keuangan merupakan bagian yang                                             The accompanying notes to the financial statements
tidak terpisahkan dari laporan keuangan secara keseluruhan                             form an integral part of these financial statements as a whole

                                                                      5
Page 545
                                                                                 The original financial statements included herein are in Indonesian language

 PT BANK PEMBANGUNAN DAERAH                                                                           PT BANK PEMBANGUNAN DAERAH
 JAWA TIMUR Tbk                                                                                                           JAWA TIMUR Tbk
 LAPORAN ARUS KAS (lanjutan)                                                                STATEMENTS OF CASH FLOWS (continued)
 Untuk tahun yang berakhir pada tanggal-tanggal                                                                   For the years then ended
 31 Desember 2023 dan 2022                                                                                    December 31, 2023 and 2022
  (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                         (Expressed in millions of Rupiah, unless otherwise stated)


                                                                        31 Desember/       31 Desember/
                                                             Catatan/   December 31,       December 31,
                                                              Notes         2023               2022

  Penurunan neto kas                                                                                                                        Decrease in cash
                                                                            (3.639.247)           (969.621)
   dan setara kas                                                                                                                      and cash equivalents

  Kas dan setara kas                                                                                                             Cash and cash equivalents
                                                                           19.988.131          20.957.752
   pada awal tahun                                                                                                                    at beginning of year
  Kas dan setara kas pada akhir tahun                                      16.348.884          19.988.131           Cash and cash equivalents at end of year

  Kas dan setara kas terdiri dari:                                                                                    Cash and cash equivalents consist of:
  Kas                                                           3           2.652.775           1.988.262                                                 Cash
  Giro pada Bank Indonesia                                      4           7.971.412          10.786.740               Current accounts with Bank Indonesia
  Giro pada bank lain                                           5             491.330             303.129                   Current accounts with other bank s
  Penempatan pada Bank Indonesia                                                                                              Placements with Bank Indonesia
   dan bank lain (jangka waktu jatuh tempo                                                                            and other banks (maturity within three
    tiga bulan atau kurang sejak tanggal perolehan)             6           5.233.367           6.910.000           months or less since the acquisition date)
  Jumlah kas dan setara kas                                                16.348.884          19.988.131                   Total cash and cash equivalents




Catatan atas laporan keuangan merupakan bagian yang                                                 The accompanying notes to the financial statements
tidak terpisahkan dari laporan keuangan secara keseluruhan                                 form an integral part of these financial statements as a whole

                                                                           6
Page 546
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN                                                         NOTES TO THE FINANCIAL STATEMENTS
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


  1.    UMUM                                                         1.      GENERAL

        a.   Pendirian Bank dan informasi umum                               a.   Establishment of the Bank and general
                                                                                  information

             PT Bank Pembangunan Daerah Jawa Timur Tbk                            PT Bank Pembangunan Daerah Jawa Timur Tbk
             (“Bank”) didirikan dengan nama PT Bank                               (the “Bank”) was established under the name of
             Pembangunan Daerah Djawa Timur pada tanggal                          PT Bank Pembangunan Daerah Djawa Timur
             17 Agustus 1961 dengan akta yang dibuat oleh                         based on the notarial deed No.91 dated August
             Notaris Anwar Mahajudin, No.91 tanggal 17                            17, 1961 of Anwar Mahajudin. Pursuant to Law
             Agustus 1961. Dengan adanya Undang-Undang                            No.13 year 1962 regarding the Basic Terms for
             No.13 tahun 1962 tentang Ketentuan Pokok Bank                        Regional Development Banks, which require that
             Pembangunan Daerah, yang mengharuskan Bank                           the establishment of Regional Development
             Pembangunan       Daerah    didirikan  dengan                        Banks be based on Municipal District
             Peraturan Pemerintah Daerah, maka Pemerintah                         Regulations, therefore the Municipal District I of
             Daerah Tingkat I Jawa Timur mengeluarkan                             East Java issued Municipal District Regulation
             Peraturan Daerah No.2 tahun 1976. Atas dasar                         No.2 year 1976. Based on such Municipal
             peraturan daerah tersebut, nama PT Bank                              District Regulation, the name of PT Bank
             Pembangunan Daerah Djawa Timur diubah                                Pembangunan Daerah Djawa Timur was
             menjadi Bank Pembangunan Daerah Jawa Timur.                          changed to Bank Pembangunan Daerah Jawa
                                                                                  Timur.

             Peraturan Pemerintah Daerah tersebut disahkan                        Such Municipal District Regulation was approved
             oleh Menteri Dalam Negeri dalam Surat                                by the Minister of Internal Affairs under Decision
             Keputusan No.Pem.10/5/26-18 tanggal 31                               Letter No.Pem.10/5/26-18 dated January 31,
             Januari 1977 dan diumumkan dalam Lembaran                            1977 and published in the Municipal Gazette
             Daerah Propinsi Daerah Tingkat I Jawa Timur                          District I Province of East Java Year 1977 Series
             Tahun 1977 Seri C No.I/c tanggal 1 Februari                          C No.I/c dated February 1, 1977. This Regulation
             1977. Peraturan Daerah tersebut mengalami                            has been amended several times, with the latest
             beberapa kali perubahan, dan yang terakhir                           amendment being Municipal District Regulation
             diubah dengan Peraturan Daerah No.11 tahun                           No.11 year 1996, dated December 30, 1996,
             1996 tanggal 30 Desember 1996 yang disahkan                          which was approved by the Minister of Domestic
             oleh Menteri Dalam Negeri dengan Surat                               Affairs in Decision Letter No.584.35-280 dated
             Keputusan No.584.35-280 tanggal 21 April 1997.                       April 21, 1997. Pursuant to the approval of
             Dengan pengesahan Peraturan Daerah No.1                              Municipal District Regulation No.1 year 1999 by
             tahun 1999 oleh DPRD Propinsi Jawa Timur                             the Regional Legislative Assembly of East Java
             tanggal 20 Maret 1999, dan oleh Menteri Dalam                        dated March 20, 1999 and by the Minister of
             Negeri dengan Surat Keputusan No.584.35-317                          Domestic Affairs in Decision Letter No.584.35-
             tanggal 14 April 1999, maka bentuk hukum Bank                        317 dated April 14, 1999, the legal status of the
             Pembangunan Daerah Jawa Timur diubah dari                            Bank was changed from a Regional Corporation
             Perusahaan Daerah menjadi Perseroan Terbatas.                        to a Limited Liability Company.

             Perubahan status bentuk hukum tersebut sesuai                        This change in status of legal form was based
             dengan akta No.1 tanggal 1 Mei 1999 yang dibuat                      on the notarial deed No.1 dated May 1, 1999 of
             oleh Notaris R. Sonny Hidayat Julistyo, S.H., dan                    R. Sonny Hidayat Julistyo, S.H., which has been
             telah disahkan oleh Menteri Kehakiman Republik                       approved by the Minister of Justice of the
             Indonesia      dengan      Surat      Keputusan                      Republic of Indonesia in Decision Letter
             No.C2.8227.HT.01.01.TH.99 tanggal 5 Mei 1999                         No.C2.8227.HT.01.01. TH.99 dated May 5,
             serta diumumkan dalam Lembaran Berita Negara                         1999 and was published in the State Gazette of
             Republik Indonesia tanggal 25 Mei 1999 No.42,                        the Republic of Indonesia No.42, dated May 25,
             Tambahan Berita Negara Republik Indonesia                            1999 in Supplement of the Republic of
             No.3008/1999.                                                        Indonesia No.3008/1999.




                                                                 7
Page 547
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  1.   UMUM (lanjutan)                                           1.    GENERAL (continued)

       a.   Pendirian Bank dan informasi umum (lanjutan)               a.    Establishment of the Bank and general
                                                                             information (continued)

            Seiring dengan perkembangan perekonomian dan                      In line with the economic growth and to comply
            dalam rangka memenuhi persyaratan sebagai                         with the requirement to be Regional Champion
            Bank Pembangunan Daerah (BPD) Regional                            BPD, with one of the indicators is to strengthen
            Champion yang salah satu parameternya adalah                      the capital structure, an amendment of Article of
            untuk memperkuat permodalan, maka dilakukan                       Associations was taken based on Extraordinary
            perubahan Anggaran Dasar Bank berdasarkan                         General Meetings of Shareholders Decision
            akta No.89 tanggal 25 April 2012 yang dibuat oleh                 Deeds No.89 dated April 25, 2012 of Fathiah
            Notaris Fathiah Helmi, S.H., di Jakarta yang telah                Helmi, S.H., Notary in Jakarta and granted
            memperoleh persetujuan dari Kementerian                           approval from Ministry of Law and Human Rights
            Hukum dan Hak Asasi Manusia berdasarkan                           based on decree No.AHU-22728.AH.01.02. Year
            Surat     Keputusan     No.AHU-22728.AH.01.02.                    2012 dated April 30, 2012, registered on the
            Tahun 2012 tanggal 30 April 2012, telah                           Company list according to Limited Company Law
            didaftarkan dalam Daftar Perseroan sesuai                         with registration No.AHU-0038044.AH.01.09
            dengan Undang Undang Perseroan Terbatas                           Year 2012 dated April 30, 2012, as well as by
            dengan No.AHU-0038044.AH.01.09 Tahun 2012                         Decision Letter of the Capital Market and
            tanggal 30 April 2012 serta berdasarkan Surat                     Financial Institutions Supervisory Agency
            Keputusan Badan Pengawas Pasar Modal dan                          (BAPEPAM-LK) dated November 29, 2012 that
            Lembaga Keuangan (BAPEPAM-LK) tanggal 29                          declared effective registration statement to
            November 2012 dinyatakan efektif untuk                            become a public company and changed its
            pernyataan pendaftaran dan berubah nama                           name to PT Bank Pembangunan Daerah Jawa
            menjadi PT Bank Pembangunan Daerah Jawa                           Timur Tbk.
            Timur Tbk.

            Selanjutnya, Anggaran Dasar tersebut telah                        Hereinafter, the Articles of Associations has
            mengalami perubahan melalui akta No.23 tanggal                    been amended No.23 dated April 8, 2015 made
            8 April 2015 yang dibuat oleh Notaris Bambang                     by Bambang Heru Djuwito, S.H., Notary in
            Heru Djuwito, S.H., Notaris di Surabaya, dan telah                Surabaya and has been registered on the
            terdaftar di Kementerian Hukum dan Hak Asasi                      Ministry of Law and Human Rights of the
            Manusia Republik Indonesia No.AHU-AH.01.03-                       Republic of Indonesia No.AHU-AH.01.03-
            0927646 tanggal 27 April 2015. Perubahan                          0927646 dated April 27, 2015. The next deed
            selanjutnya melalui akta No.55 tanggal 22 April                   No.55 dated April 22, 2020 made by Sitaresmi
            2020 yang dibuat oleh Notaris Sitaresmi                           Puspadewi Subianto, S.H., Notary in Surabaya
            Puspadewi Subianto, S.H., Notaris di Surabaya,                    and has been registered on the Ministry of Law
            dan telah terdaftar di Kementerian Hukum dan                      and Human Rights of the Republic Indonesia
            Hak Asasi Manusia Republik Indonesia No.AHU-                      No.AHU-AH.01.03-0197642 dated April 23,
            AH.01.03-0197642 tanggal 23 April 2020.                           2020. The latest deed No.95 dated May 31,
            Perubahan terakhir melalui akta No.95 tanggal 31                  2021 made by Sitaresmi Puspadewi Subianto,
            Mei 2021 yang dibuat oleh Notaris Sitaresmi                       S.H., Notary in Surabaya and has been
            Puspadewi Subianto, S.H., Notaris di Surabaya,                    registered on the Ministry of Law and Human
            dan telah terdaftar di Kementerian Hukum dan                      Rights of the Republic Indonesia No.AHU-
            Hak Asasi Manusia Republik Indonesia No.AHU-                      AH.01.03-0387989 dated June 21, 2021.
            AH.01.03-0387989 tanggal 21 Juni 2021.

            Bank mulai melakukan kegiatan operasional                         The Bank started its commercial operations in
            sesuai Surat Keputusan Menteri Keuangan                           accordance with the Decision Letter of the
            Republik Indonesia No.BUM 9-4-5 pada tanggal                      Minister of Finance of the Republic of Indonesia
            15 Agustus 1961. Sedangkan Unit Usaha Syariah                     No.BUM 9-4-5 on August 15, 1961. The Sharia
            (UUS) dibentuk dan mulai beroperasi sejak                         Operating Unit started its commercial operations
            tanggal 21 Agustus 2007 sesuai dengan surat                       on August 21, 2007 in accordance with the
            Persetujuan Prinsip Pendirian UUS dari Bank                       approval     letter  from     Bank     Indonesia
            Indonesia No.9/75/DS/Sb tanggal 4 April 2007.                     No.9/75/DS/Sb dated April 4, 2007 for the
                                                                              establishment of the Bank’s Sharia Operating
                                                                              Unit.




                                                             8
Page 548
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 1.   UMUM (lanjutan)                                               1.     GENERAL (continued)

      a.   Pendirian Bank dan informasi umum (lanjutan)                   a.    Establishment of the                 Bank      and      general
                                                                                information (continued)
           Entitas induk terakhir dari Bank adalah                              The ultimate parent of the Bank is the Government
           Pemerintah Propinsi Jawa Timur.                                      of East Java Province.
           Bank memperoleh ijin untuk beroperasi sebagai                        The Bank obtained a license to operate as foreign
           bank devisa berdasarkan Surat Keputusan Direksi                      exchange bank based on the decision letter
           Bank Indonesia (BI) No.23/28/KEP/DIR tanggal                         No.23/28/KEP/DIR of the Board of Director of Bank
           2 Agustus 1990.                                                      Indonesia (BI) dated August 2, 1990.

           Sesuai dengan pasal 3 Anggaran Dasar Bank                            In accordance with article 3 of the Bank’s Articles
           tersebut, ruang lingkup kegiatan Bank adalah                         of Association, the Bank’s scope of activities is to
           menjalankan     kegiatan    usaha    di   bidang                     engage in general banking services, including
           perbankan, termasuk perbankan berdasarkan                            banking activities based on Sharia principles and
           prinsip Syariah serta kegiatan perbankan lainnya                     other banking activities in accordance with the
           yang lazim sesuai dengan peraturan perundang-                        prevailing laws and regulations.
           undangan yang berlaku.

           Tugas utama Bank adalah ikut mendorong                               The main role of the Bank is to participate in
           pertumbuhan potensi ekonomi daerah melalui                           developing regional economic growth by providing
           peran sertanya dalam mengembangkan sektor-                           facilities to small and medium scale businesses to
           sektor usaha kredit kecil dan menengah dalam                         achieve appropriate profit levels. Its main activities
           rangka memperoleh laba yang optimal. Kegiatan                        involve collecting and lending funds and rendering
           utamanya yaitu menghimpun dan menyalurkan                            other banking services.
           dana serta memberikan jasa-jasa perbankan
           lainnya.
      b.   Penawaran umum perdana saham                                   b.    Initial public offering (IPO)
           Berdasarkan Surat Badan Pengawas Pasar                               Based on letter No.S-8143/BL/2012 of the Capital
           Modal dan Lembaga Keuangan (BAPEPAM-LK)                              Market and Financial Institutions Supervisory
           No.S-8143/BL/2012 tanggal 29 November 2012,                          Agency (BAPEPAM-LK) dated November 29, 2012,
           pernyataan pendaftaran yang diajukan Bank                            the registration statement submitted by the Bank
           dalam rangka Penawaran Umum Perdana saham                            relating to the Initial Public Offering of
           kepada masyarakat sejumlah 2.983.537.000                             2,983,537,000 Series B shares at Rp250 (full
           saham Seri B, dengan nilai nominal sebesar                           Rupiah) per share with selling price of Rp430 (full
           Rp250 (Rupiah penuh) setiap saham dengan                             Rupiah) per share became effective on November
           harga penawaran sebesar Rp430 per saham                              29, 2012. The shares which were offered to the
           (Rupiah penuh) telah menjadi efektif pada tanggal                    public, were listed and traded on the Indonesia
           29 November 2012. Saham yang ditawarkan                              Stock Exchange on July 12, 2012. The excess of
           tersebut dicatatkan dan mulai diperdagangkan di                      the share offer price over the par value per share
           Bursa Efek Indonesia pada tanggal 12 Juli 2012.                      was recognized as “Other paid-in capital - net of
           Selisih lebih antara harga penawaran per saham                       share issuance cost”, which is presented under the
           dengan nilai nominal per saham dicatat sebagai                       Equity section of the Statement of Financial
           “Tambahan modal disetor, setelah dikurangi                           Position.
           dengan biaya emisi saham”, yang disajikan pada
           bagian Ekuitas pada Laporan Posisi Keuangan.

           Berkaitan dengan penawaran umum saham                                In relation to the Initial Public Offering of the
           perdana, Bank akan mengimplementasikan                               shares, the Bank will implement Employee Stock
           program Employee Stock Allocation (ESA)                              Allocation (ESA) program by allocating maximum
           dengan mengalokasikan saham sebanyak-                                of 10% of the newly issued shares and issued
           banyaknya sebesar 10% dari jumlah penerbitan                         Management and Employee Stock Option Plan
           saham yang ditawarkan dan menerbitkan opsi                           (MESOP) program with maximum of 0.71% of the
           saham untuk program Management and                                   issued and paid-up shares after Initial Public
           Employee Stock Option Plan (MESOP) sebanyak-                         Offering.
           banyaknya sebesar 0,71% dari jumlah modal
           ditempatkan   dan   disetor   penuh   setelah
           penawaran umum perdana saham.

                                                               9
Page 549
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


  1.   UMUM (lanjutan)                                          1.         GENERAL (continued)
       b.   Penawaran umum perdana saham (lanjutan)                   b.    Initial public offering (IPO) (continued)
            Program MESOP Tahap I Periode Tahun 2016                        The MESOP Program Period 2016 Phase I has
            telah dilaksanakan dari tanggal 1 Agustus 2016                  been implemented from August 1, 2016 to
            sampai dengan 13 November 2016, tanggal 1                       November 13, 2016, February 1, 2017 to March 13,
            Februari 2017 sampai dengan 13 Maret 2017,                      2017, August 1, 2017 to November 13, 2017,
            tanggal 1 Agustus 2017 sampai dengan 13                         February 1, 2018 to March 15, 2018, August 1,
            November 2017, tanggal 1 Februari 2018 sampai                   2019 to September 11, 2019. The MESOP
            dengan 15 Maret 2018, tanggal 1 Agustus 2019                    Program Period 2017 Phase II has been
            sampai dengan 11 September 2019. Program                        implemented from August 1, 2017 to November 13,
            MESOP Tahap II Periode Tahun 2017 telah                         2017, February 1, 2018 to March 15, 2018,
            dilaksanakan dari tanggal 1 Agustus 2017 sampai                 February 1, 2019 to March 18, 2019, August 1,
            dengan 13 November 2017, tanggal 1 Februari                     2019 to September 11, 2019. The MESOP
            2018 sampai dengan 15 Maret 2018, tanggal 1                     Program Phase III has been implemented from
            Februari 2019 sampai dengan 18 Maret 2019,                      August 1, 2018 to September 14, 2018, February
            tanggal 1 Agustus 2019 sampai dengan 11                         1, 2019 to March 18, 2019, August 1, 2019 to
            September 2019. Program MESOP Tahap III telah                   September 11, 2019.
            dilaksanakan tanggal 1 Agustus 2018 sampai
            dengan 14 September 2018, tanggal 1 Februari
            2019 sampai 18 Maret 2019, tanggal 1 Agustus
            2019 sampai dengan 11 September 2019.

       c.   Manajemen eksekutif                                       c.    Excecutive management
            Susunan Dewan Komisaris dan Direksi Bank                        The composition of the Bank’s Board of
            sesuai dengan Akta Rapat Umum Pemegang                          Commissioners and Directors in accordance with
            Saham No.25 tanggal 12 April 2023 dan Akta                      the General Meeting of Shareholders No.25 dated
            Rapat Umum Pemegang Saham Luar Biasa                            April 12, 2023 and the Extraordinary General
            No.23 tanggal 7 Desember 2022 dari notaris                      Meeting of Shareholders No.23 dated December 7,
            Sitaresmi Puspadewi Subianto, S.H. adalah                       2022 of notary Sitaresmi Puspadewi Subianto, S.H.
            sebagai berikut:                                                are as follows:
                                                                2023
            Dewan Komisaris                                                                               Board of Commissioners
            Komisaris Utama                               Suprajarto *)                                     President Commissioner
            Komisaris                                    Adhy Karyono                                                 Commissioner
            Komisaris Independen                       Candra Fajri Ananda                               Independent Commissioner
            Komisaris Independen                       Muhammad Mas’ud                                   Independent Commissioner
            Komisaris Independen                          Sumaryono                                      Independent Commissioner
            Direksi                                                                                          Board of Directors
            Direktur Utama                                 Busrul Iman                                        President Director
            Direktur Operasi                              Arif Suhirman                                       Operation Director
            Direktur Mikro, Ritel dan Menengah         R. Arief Wicaksono                     Micro, Retail and Medium Director
            Direktur Teknologi Informasi dan Digital     Zulhelfi Abidin             Information Technology and Digital Director
            Direktur Kepatuhan                          Tonny Prasetyo                                      Compliance Director
            Direktur Manajemen Risiko                    Eko Susetyono                               Risk Management Director
            Direktur Keuangan, Treasury dan Global        Edi Masrianto                   Finance, Treasury and Global Service
            Service                                                                                                     Director




                                                           10
Page 550
                                                                             The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                  and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)


 1.   UMUM (lanjutan)                                                         1.     GENERAL (continued)
      c.    Manajemen eksekutif (lanjutan)                                        c.      Excecutive management (continued)
                                                                              2022
            Dewan Komisaris                                                                                              Board of Commissioners
            Komisaris Utama                                             Suprajarto                                         President Commissioner
            Komisaris                                                 Heru Tjahjono                                                  Commissioner
            Komisaris Independen                                    Muhammad Mas’ud                                     Independent Commissioner
            Komisaris Independen                                    Candra Fajri Ananda                                 Independent Commissioner
            Komisaris Independen                                       Sumaryono                                        Independent Commissioner
            Direksi                                                                                                            Board of Directors
            Direktur Utama                                             Busrul Iman                                              President Director
            Direktur Operasi                                        Tonny Prasetyo **)                                          Operation Director
            Direktur Mikro, Ritel dan Menengah                      R. Arief Wicaksono                          Micro, Retail and Medium Director
            Direktur Teknologi Informasi dan Digital                 Zulhelfi Abidin ***)              Information Technology and Digital Director
            Direktur Kepatuhan                                                -                                               Compliance Director
            Direktur Manajemen Risiko                                 Eko Susetyono                                    Risk Management Director
            Direktur Keuangan, Treasury dan Global                                                          Finance, Treasury and Global Service
            Service                                                     Edi Masrianto                                                     Director
            *)                                                                           *)
                 meninggal dunia tanggal 19 Desember 2023.                                    passed away December 19, 2023.
            **)                                                                          **)
                 ditunjuk sebagai pengganti sementara Direktur                                appointed as a temporary substitute Compliance
                 Kepatuhan, sehingga jabatan Direktur Operasi                                 Director, so that the position of Operation Director
                 sementara dilepaskan untuk memenuhi aspek                                    was temporarily released to fulfill the independence
                 independensi.                                                                aspect.
            ***)                                                                         ***)
                 ditunjuk untuk merangkap sebagai Direktur Operasi.                           appointed concurrently as the Operation Director.
            Hal tersebut sesuai dengan Surat Keputusan Dewan                             This is in accordance with the Decree of the Board of
            Komisaris No.061/10/DKM/KEP tanggal 13 Desember                              Commissioners No.061/10/DKM/KEP dated December
            2022 dan telah dicatat dalam administrasi pengawasan                         13, 2022 and has been recorded in the OJK supervision
            OJK berdasarkan surat No.S-4/KR.0413/2023 tanggal 4                          administration based on letter No.S-4/KR.0413/2023
            Januari 2023.                                                                dated January 4, 2023.
            Susunan Komite Audit adalah sebagai berikut:                                  The composition of the Audit Committee are as
                                                                                          follows:
                                                    2023                                             2022
            Ketua                                 Sumaryono                                        Sumaryono                   Chairman
            Anggota                            Muhammad Mas’ud                                 Muhammad Mas’ud                  Member
            Anggota                                Kusnadi                                     Candra Fajri Ananda              Member
            Anggota                              Moch. Arifin                                       Kusnadi                     Member
            Susunan Komite             Pemantau      Risiko    adalah                     The composition of the Risk Monitoring Committee
            sebagai berikut:                                                              are as follows:
                                                     2023                                             2022
             Ketua                                Sumaryono                                   Candra Fajri Ananda                 Chairman
             Anggota                           Muhammad Mas’ud                                Muhammad Mas’ud                      Member
             Anggota                          Sulam Andjar Rochim                                  Sumaryono                       Member
             Anggota                                   -                                     Sulam Andjar Rochim                   Member
             Anggota                                   -                                          Moch. Arifin                     Member
            Susunan Komite Remunerasi dan Nominasi                                        The composition of the Remuneration and
            adalah sebagai berikut:                                                       Nomination Committee are as follows:
                                          2023                                                      2022
             Ketua                  Muhammad Mas’ud                                          Muhammad Mas’ud                   Chairman
             Anggota                  Adhy Karyono                                                Suprajarto                    Member
             Anggota                    Sumaryono                                            Candra Fajri Ananda                Member
             Anggota                 Slamet Purwanto                                             Sumaryono                      Member
             Anggota                        -                                                  Heru Tjahyono                    Member
             Anggota                        -                                                  Revi Adiana S.                   Member
                 Susunan Komite Audit, Komite Pemantau Risiko, dan Komite                      The composition of the Audit Committee, the Risk Monitoring
                 Remunerasi dan Nominasi sesuai dengan Surat Keputusan                         Committee, and the Remuneration and Nomination Committee
                 No.062/105/DIR/HCP/KEP tanggal 29 Desember 2023.                              accordance to Decision Letter No.062/105/DIR/HCP/KEP dated
                                                                                               December 29, 2023.



                                                                        11
Page 551
                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)



  1.   UMUM (lanjutan)                                          1.       GENERAL (continued)
       c. Manajemen eksekutif (lanjutan)                               c. Excecutive management (continued)
          Susunan Internal Audit pada tanggal 31                          The composition of the Internal Audit as of
          Desember 2023 dan 2022 adalah sebagai                           December 31, 2023 and 2022 are as follows:
          berikut:
                                                 2023                              2022
          Pemimpin Divisi              Wardhana Suryaatmaja                  Ratna Hastutik                    Division Head
          Pemimpin Sub Divisi           R. Sonny Soelaksono                     M. Muad                   Sub Division Head
          Pemimpin Sub Divisi          Agung Setya Nugroho               R. Sonny Soelaksono              Sub Division Head
          Pemimpin Sub Divisi                      -                                 -                    Sub Division Head
          Sekretaris Perusahaan pada tanggal             31                The Corporate Secretary as of December 31,
          Desember 2023 dan 2022 adalah sebagai berikut:                   2023 and 2022 are as follows:
                                                 2023                                2022
          Pemimpin Divisi                Wioga Adhiarma Aji                    Budi Sumarsono                 Division Head
          Pemimpin Sub Divisi             Bambang Supriadi                   Bambang Supriadi            Sub Division Head
          Pemimpin Sub Divisi            Derry Widya Ariyata                Derry Widya Ariyata          Sub Division Head
          Pemimpin Sub Divisi              Lestari Nur Imani                  Lestari Nur Imani          Sub Division Head
          Susunan Dewan Pengawas Syariah Bank pada                         The composition of the Sharia Supervisory Board
          tanggal 31 Desember 2023 dan 2022 adalah                         as of December 31, 2023 and 2022 are as
          sebagai berikut:                                                 follows:
                                                 2023                                2022
          Ketua                            Afifuddin Muhajir                   Afifuddin Muhajir              Division Head
          Anggota                                   -                           Sa’ad Ibrahim            Sub Division Head
          Pada tanggal 31 Desember 2023 dan 2022, Bank                     As of December 31, 2023 and, 2022, the Bank
          memiliki karyawan tetap masing-masing sebanyak                   has 4,219 and 4,385 permanent employees,
          4.219 dan 4.385 orang (tidak diaudit).                           respectively (unaudited).
       d. Jaringan kantor                                              d. Office network
          Pada tanggal 31 Desember 2023, Bank memiliki                     As of December 31, 2023, the Bank has 41
          41 kantor cabang konvensional termasuk 1 Unit                    branches including 1 Sharia Operating Unit (UUS)
          Usaha Syariah (UUS) yang mempunyai 7 cabang                      which has 7 Sharia branches and 163
          Syariah serta 163 kantor cabang pembantu                         conventional sub-branches, 10 Sharia sub-
          konvensional, 10 kantor cabang pembantu                          branches, 212 conventional functional offices, 4
          Syariah, 212 kantor fungsional konvensional, 4                   Sharia functional office, 196 Sharia service
          kantor fungsional Syariah, 196 kantor layanan                    offices, 828 ATMs (Automated Teller Machines),
          Syariah, 828 ATM (Automated Teller Machine), 26                  26 ATMs Sharia (Sharia Automated Teller
          ATM Syariah (Sharia Automated Teller Machine),                   Machines), 84 CRM (Cash Recycling Machines)
          84 CRM (Cash Recycling Machine) konvensional,                    conventional, 10 CRM (Cash Recycling Machines)
          10 CRM (Cash Recycling Machine) Syariah di                       Sharia located in Indonesia.
          Indonesia.
           Pada tanggal 31 Desember 2022, Bank memiliki                     As of December 31, 2022, the Bank has 41
           41 kantor cabang konvensional termasuk 1 Unit                    branches including 1 Sharia Operating Unit (UUS)
           Usaha Syariah (UUS) yang mempunyai 7 cabang                      which has 7 Sharia branches and 162
           Syariah serta 162 kantor cabang pembantu                         conventional sub-branches, 10 Sharia sub-
           konvensional, 10 kantor cabang pembantu                          branches, 212 conventional functional offices, 3
           Syariah, 212 kantor fungsional konvensional, 3                   Sharia functional office, 195 Sharia service
           kantor fungsional Syariah, 195 kantor layanan                    offices, 815 ATMs (Automated Teller Machines),
           Syariah, 815 ATM (Automated Teller Machine), 26                  26 ATMs Sharia (Sharia Automated Teller
           ATM Syariah (Sharia Automated Teller Machine),                   Machines), 58 CRM (Cash Recycling Machines)
           58 CRM (Cash Recycling Machine) konvensional,                    conventional, 7 CRM (Cash Recycling Machines)
           7 CRM (Cash Recycling Machine) Syariah di                        Sharia located in Indonesia.
           Indonesia.




                                                           12
Page 552
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)



 1.   UMUM (lanjutan)                                                  1.     GENERAL (continued)

      d.   Jaringan kantor (lanjutan)                                        d.    Office network (continued)

           Bank mengklasifikasikan kantor cabang menjadi                           The Bank classifies its branch offices into main
           kantor cabang utama, kantor cabang khusus,                              branches, special branches, first-class branches,
           kantor cabang kelas I, kantor cabang kelas II dan                       second-class branches and third-class branches.
           kantor cabang kelas III. Masing-masing cabang                           Each branch has sub-branches and/or cash offices
           mempunyai kantor cabang pembantu dan/atau                               and/or payment points.
           kantor kas dan/atau payment point.

 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                           2.     INFORMATION             OF       MATERIAL           ACCOUNTING
                                                                              POLICIES
      Kebijakan akuntansi utama yang ditetapkan dalam                         The principal accounting policies adopted in preparing
      penyusunan laporan keuangan Bank adalah                                 the financial statements of the Bank are set out below:
      sebagaimana diuraikan di bawah ini:

      a.   Basis penyusunan laporan keuangan                                 a.    Basis of preparation of the financial statements
           Pernyataan kepatuhan                                                    Statement of compliance
           Laporan keuangan pada tanggal 31 Desember                               The financial statements as of December 31 2023
           2023 dan 2022 disusun dan disajikan sesuai                              and 2022 have been prepared and presented in
           dengan Standar Akuntansi Keuangan (SAK) di                              accordance with Financial Accounting Standards
           Indonesia, yang meliputi Pernyataan Standar                             (SAK) and Statements of Financial Accounting
           Akuntansi Keuangan (PSAK) dan Interpretasi                              Standards (PSAK) and Interpretation of Financial
           Standar Akuntansi Keuangan (ISAK) yang                                  Accounting Standards (ISAK) issued by the
           diterbitkan oleh Dewan Standar Akuntansi                                Financial Accounting Standard Board of the
           Keuangan-Ikatan Akuntan Indonesia (DSAK-IAI)                            Institute of Indonesia Charterad Accountans and
           dan Peraturan Badan Pengawas Pasar Modal dan                            the Regulation of Capital Market and Financial
           Lembaga Keuangan (Bapepam-LK) No. VIII.G.7                              Institution Supervisor Board (Bapepam-LK) No.
           yang terlampir dalam Keputusan Ketua Bapepam-                           VIII.G.7 in the Decree of Chairman of Bapepam-LK
           LK No. KEP-347/BL/2012 tanggal 25 Juni 2012                             No. KEP-347/BL/2012 dated June 25, 2012
           tentang “Penyajian dan Pengungkapan Laporan                             regarding “Presentation and Disclosure of Financial
           Keuangan Emiten atau Perusahaan Publik”.                                Statements of the Issuer or Public Company”.
           Informasi keuangan UUS Bank disajikan sesuai                            The financial information of UUS have been
           dengan PSAK 101, “Penyajian Laporan                                     prepared in conformity with PSAK 101, “Sharia
           Keuangan Syariah”, PSAK 102, “Akuntansi                                 Financial Statements Presentation”, PSAK 102,
           Murabahah”, PSAK 103, “Akuntansi Salam”,                                “Accounting for      Murabahah”,     PSAK     103,
           PSAK 104, “Akuntansi Istishna”, PSAK 105,                               “Accounting for Salam”, PSAK 104, “Accounting for
           “Akuntansi Mudharabah”, PSAK 106, “Akuntansi                            Istishna”, PSAK 105, “Accounting for Mudharabah”,
           Musyarakah”, dan PSAK 107, “Akuntansi Ijarah”                           PSAK 106, “Accounting for Musyarakah” and
           yang menggantikan PSAK 59 tentang “Akuntansi                            PSAK 107, “Accounting for Ijarah” which replaces
           Perbankan Syariah” yang berkaitan dengan                                PSAK 59, "Accounting for Sharia Banking",
           pengakuan,       pengukuran,    penyajian  dan                          associated    with   recognition,   measurement,
           pengungkapan untuk topik tersebut, PSAK 110                             presentation and disclosure for the respective
           “Akuntansi Sukuk”, PSAK 111 “Akuntansi Wa’d”                            topics, PSAK 110 “Accounting for Sukuk”, PSAK
           dan PSAK lain selama tidak bertentangan dengan                          111 “Accounting for Wa’d” and other PSAK, as
           prinsip syariah dan Pedoman Akuntansi                                   long as not contradict with sharia principles and
           Perbankan Syariah Indonesia (PAPSI) yang                                Accounting Guidelines for Indonesian Sharia
           diterbitkan oleh Bank Indonesia dan IAI.                                Banks (PAPSI) issued by Bank Indonesia and IAI.

           Laporan keuangan telah disajikan berdasarkan                            The financial statements have been prepared on a
           nilai historis, kecuali disebutkan lain dan disusun                     historical cost basis, unless otherwise stated, and
           dengan dasar akrual (kecuali bagi hasil dari                            under the accrual basis of accounting (except for
           pembiayaan mudharabah dan musyarakah).                                  profit sharing for mudharabah and musyarakah
                                                                                   financing).




                                                                 13
Page 553
                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                     and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                   2.    INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                     POLICIES (continued)

       a.   Basis penyusunan laporan keuangan (lanjutan)              a.    Basis of preparation                 of     the     financial
                                                                            statements (continued)

            Pernyataan kepatuhan (lanjutan)                                 Statement of compliance (continued)

            Laporan arus kas disusun dengan menggunakan                     The statements of cash flows have been
            metode langsung dan dikelompokkan atas dasar                    prepared based on the direct method and have
            aktivitas operasi, investasi dan pendanaan. Untuk               been classified on the basis of operating,
            tujuan laporan arus kas, yang termasuk kas dan                  investing and financing activities. For the
            setara kas terdiri dari kas, giro pada Bank                     purpose of the statements of cash flows, cash
            Indonesia dan bank lain, penempatan pada Bank                   and cash equivalents consist of cash, current
            Indonesia dan bank lain dan Fasilitas Simpanan                  accounts with Bank Indonesia and other banks,
            Bank Indonesia, yang jatuh tempo dalam waktu 3                  placements with Bank Indonesia and other banks
            (tiga) bulan sejak tanggal perolehan, sepanjang                 and Bank Indonesia Deposits Facility maturing
            tidak digunakan sebagai jaminan atas pinjaman                   within 3 (three) months from the acquisition date,
            yang diterima serta tidak dibatasi penggunaannya.               and not used as collateral for borrowing and not
                                                                            for restricted in use.

            Mata uang fungsional dan penyajian                              Functional and presentation currency

            Laporan keuangan disajikan dalam mata uang                      The financial statements are presented in
            Rupiah, yang merupakan mata uang fungsional                     Rupiah, which is the functional currency of the
            Bank. Angka-angka yang disajikan dalam laporan                  Bank. Unless otherwise stated, all figures
            keuangan, kecuali bila dinyatakan secara khusus,                presented in the financial statements are
            adalah dibulatkan dalam jutaan Rupiah.                          rounded off to millions of Rupiah.

       b.   Transaksi dan saldo dalam mata uang asing                 b.    Transaction and balances in foreign currency

            Transaksi dalam mata uang asing dijabarkan ke                   Transactions denominated in foreign currencies
            mata uang rupiah dengan menggunakan kurs yang                   are converted into rupiah at the exchange rates
            berlaku pada tanggal transaksi. Pada tanggal                    prevailing at the dates of the transactions. At the
            laporan posisi keuangan, aset dan liabilitas                    statement of financial position, monetary assets
            moneter dalam mata uang asing dijabarkan dengan                 and liabilities denominated in foreign currencies
            menggunakan kurs yang berlaku pada tanggal                      are translated at the exchange rates prevailing at
            laporan posisi keuangan.                                        such date.

            Keuntungan dan kerugian selisih kurs yang timbul                Exchange gains and losses arising from
            dari transaksi dalam mata uang asing dan dari                   transactions denominated in foreign currencies
            penjabaran aset dan liabilitas moneter dalam mata               and from the translation of monetary assets and
            uang asing diakui dalam laporan laba rugi dan                   liabilities denominated in foreign currencies are
            penghasilan komprehensif lain tahun berjalan.                   recognized in the statement of profit and loss
                                                                            and other comprehensive income for the current
                                                                            year.

            Laba atau rugi kurs valuta asing atas aset dan                  The foreign currency gains or losses on
            liabilitas moneter merupakan selisih antara biaya               monetary assets and liabilities are the difference
            perolehan diamortisasi dalam Rupiah pada awal                   between amortized cost in Rupiah at the
            tahun, disesuaikan dengan tingkat suku bunga                    beginning of the year, adjusted for effective
            efektif dan pembayaran selama tahun berjalan, dan               interest rate and payments during the year, and
            biaya perolehan diamortisasi dalam valuta asing                 the amortized cost in foreign currency translated
            yang dijabarkan ke dalam Rupiah dengan                          into Rupiah using the exchange rate at the end
            menggunakan kurs pada akhir tahun.                              of the year.

            Aset dan liabilitas non-moneter dalam mata uang                 Non-monetary assets and liabilities denominated
            asing dijabarkan dengan menggunakan kurs pada                   in foreign currencies are translated using the
            tanggal transaksi.                                              exchange rates prevailing at the transaction
                                                                            date.



                                                           14
Page 554
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.     INFORMATION OF MATERIAL                             ACCOUNTING
      (lanjutan)                                                             POLICIES (continued)
      b.   Transaksi dan saldo dalam mata uang asing                        b.       Transaction and balances in foreign currency
           (lanjutan)                                                                (continued)

           Berikut ini adalah kurs mata uang asing utama                             Below are the major exchange rates used for
           yang digunakan untuk penjabaran dalam rupiah                              translation into rupiah as of December 31, 2023
           pada 31 Desember 2023 dan 2022 yang                                       and 2022 using the middle rates based on Reuters
           menggunakan kurs tengah berdasarkan Reuters                               (at 16.00 hours Western Indonesian Time) (in full
           (pukul 16.00 Waktu Indonesia Barat) (dalam                                amount).
           Rupiah penuh).
                                                   2023                               2022
           1 Poundsterling Inggris Raya                19.626                                18.786     Great Britain Poundsterling 1/Rp
           1 Euro                                      17.038                                16.582                            Euro 1/Rp
           1 Dolar Amerika Serikat                     15.397                                15.568           United States Dollar 1/Rp
           1 Dolar Singapura                           11.676                                11.593               Singapore Dollar 1/Rp
           1 Dolar Australia                           10.521                                10.558                Australian Dollar 1/Rp
           1 Riyal Saudi Arabia                          4.106                                4.139            Saudi Arabian Riyal 1/Rp
           1 Ringgit Malaysia                            3.355                                3.534              Malaysian Ringgit 1/Rp
           1 Yuan China Renminbi                         2.170                                2.239       Chinese Yuan Renminbi 1/Rp
           1 Dolar Hong Kong                             1.970                                1.997              Hong Kong Dollar 1/Rp
           100 Yen Jepang                              10.888                                11.800               Japanese Yen 100/Rp
      c.   Perubahan pada pernyataan standar akuntansi                      c.       Changes to the statements of financial
           keuangan dan interpretasi atas Pernyataan                                 accounting standard and interpretations of the
           Standar Akuntansi Keuangan                                                Statements of Financial Accounting Standard
           Pada tanggal 1 Januari 2023, terdapat standar                             On 1 January, 2023 there were new standards and
           baru dan penyesuaian atau amendemen terhadap                              adjustments or amendments for several prevailing
           beberapa standar yang masih berlaku dan berlaku                           standards and effective since that date, as follows:
           efektif sejak tanggal tersebut yaitu sebagai
           berikut:

           -   Amendemen PSAK 1, “Penyajian Laporan                              -     Amendment to PSAK 1, “Presentation of
               Keuangan tentang Klasifikasi Liabilitas                                 Financial Statements concerning Classification
               sebagai Jangka Pendek atau Jangka                                       of Liabilities as Short-Term or Long-Term”,
               Panjang”, penerapan lebih awal diizinkan.                               earlier      application    is    permitted. The
               Amandemen menentukan persyaratan untuk                                  amendments specify the requirement to classify
               mengklasifikasikan kewajiban sebagai lancar                             liabilities as current or non-current.
               atau tidak lancar.

           -   Amendemen       PSAK     25,    “Kebijakan                        -     Amendment to PSAK 25, “Accounting Policies,
               Akuntansi, Perubahan Estimasi Akuntansi                                 Changes in Accounting Estimates and Error”,
               dan Kesalahan”, penerapan lebih awal                                    earlier application is permitted. Amendments to
               diizinkan. Amendemen PSAK 25 memberi                                    PSAK 25 provide a new definition of accounting
               definisi baru dari estimasi akuntansi dan                               estimate and an explanation.
               penjelasannya.

           -   Amendemen PSAK 46, “Pajak Penghasilan”                            -     Amendments to PSAK 46, “Income Taxes”
               tentang Pajak Tangguhan terkait Aset dan                                regarding Deferred Tax on Assets and Liabilities
               Liabilitas yang timbul dari Transaksi Tunggal,                          arising from a Single Transaction, earlier
               penerapan lebih awal diizinkan. Amendemen                               application is permitted. This amendment to
               PSAK 46 ini mengusulkan agar entitas                                    PSAK 46 proposes that entities recognize
               mengakui aset maupun liabilitas pajak                                   deferred tax assets and liabilities upon initial
               tangguhan pada saat pengakuan awalnya                                   recognition,    for    example      from    lease
               misalnya dari transaksi sewa, untuk                                     transactions, to eliminate differences in practice
               menghilangkan       perbedaan     praktik   di                          in the field for such transactions and similar
               lapangan atas transaksi tersebut dan                                    transactions.
               transaksi serupa.


                                                                15
Page 555
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)


 2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                           2.     INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                              POLICIES (continued)

       c.    Perubahan pada pernyataan standar akuntansi                      c.    Changes to the statements of financial
             keuangan dan interpretasi atas Pernyataan                              accounting standard and interpretations of the
             Standar Akuntansi Keuangan (lanjutan)                                  Statements of Financial Accounting Standard
                                                                                    (continued)

             Implementasi dari standar-standar tersebut tidak                       The implementation of the above standards did not
             menghasilkan perubahan substansial terhadap                            result in substantial changes to the Bank’s
             kebijakan akuntansi Bank dan tidak memiliki                            accounting policies and had no material impact to
             dampak yang material terhadap laporan                                  the consolidated financial statements for current or
             keuangan di periode berjalan atau tahun                                prior financial periods.
             sebelumnya.

      d.    Aset dan liabilitas keuangan                                     d.    Financial assets and liabilities

            Aset keuangan Bank terutama terdiri dari kas, giro                     The Bank’s financial assets mainly consist of cash,
            pada Bank Indonesia, giro pada bank lain,                              current accounts with Bank Indonesia, current
            penempatan pada Bank Indonesia dan bank lain,                          accounts with other banks, placements with Bank
            surat berharga, surat berharga yang dijual dengan                      Indonesia and other banks, marketable securities,
            janji dibeli kembali, surat berharga yang dibeli                       marketable securities sold under repurchased
            dengan janji dijual kembali, tagihan lainnya, kredit                   agreement, marketable securities purchased under
            yang diberikan dan pembiayaan syariah dan                              resale agreement (reverse repo), other receivables,
            pendapatan bunga yang masih akan diterima.                             loans and sharia financing and interest receivables.

            Sesuai PSAK 71, terdapat 3 (tiga) klasifikasi                          In accordance with PSAK 71, there are 3 (three)
            pengukuran aset keuangan yaitu biaya perolehan                         measurement classifications for financial assets:
            diamortisasi, diukur pada nilai wajar melalui laba                     amortized cost, fair value through profit or loss
            rugi (FVTPL) dan diukur pada nilai wajar melalui                       (FVTPL) and fair value through other comprehensive
            pendapatan komprehensif lainnya (FVOCI).                               income (FVOCI).

            Aset keuangan diklasifikasikan menjadi kategori                        Financial assets are classified into these categories
            tersebut di atas berdasarkan model bisnis dimana                       based on the business model within which they are
            aset keuangan tersebut dimiliki dan karakteristik                      held and their contractual cash flow characteristics.
            arus     kas    kontraktualnya.   Model     bisnis                     The business model reflects how group of financial
            merefleksikan     bagaimana     kelompok     aset                      assets are managed to achieve particular business
            keuangan dikelola untuk mencapai tujuan bisnis                         objective.
            tertentu.

            Liabilitas keuangan Bank terutama terdiri dari                         The Bank’s financial liabilities mainly consist of
            simpanan dari nasabah, simpanan dari bank lain,                        deposits from customers, deposits from other banks,
            liabilitas surat berharga yang dijual dengan janji                     liabilities of marketable securities sold under
            dibeli kembali dan pinjaman yang diterima.                             repurchase agreements and borrowings.




                                                                   16
Page 556
                                                                          The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)



  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                              2.        INFORMATION OF MATERIAL                        ACCOUNTING
        (lanjutan)                                                                    POLICIES (continued)

       d.    Aset dan liabilitas keuangan (lanjutan)                             d.   Financial assets and liabilities (continued)

            1)   Klasifikasi                                                          1)   Classification

                 Aset keuangan dapat diukur dengan biaya                                   A financial asset is measured at amortized cost
                 perolehan diamortisasi hanya jika memenuhi                                only if it meets both of the following conditions
                 kedua kondisi berikut dan tidak ditetapkan                                and is not designated as FVTPL:
                 sebagai FVTPL:

                     -   Aset keuangan dikelola dalam model                                -       The financial assets are managed in a
                         bisnis yang bertujuan untuk memiliki aset                                 business model which objective is to hold
                         keuangan dalam rangka mendapatkan                                         the asset to obtain contractual cash flows;
                         arus kas kontraktual; dan                                                 and
                     -   Persyaratan    kontraktual   dari    aset                         -       Its contractual terms of the financial assets
                         keuangan tersebut memberikan hak pada                                     provide rights on a specified date for cash
                         tanggal tertentu atas arus kas yang                                       flows obtained solely from payments of
                         diperoleh semata dari pembayaran pokok                                    principal and interest (SPPI) on the principal
                         dan bunga (SPPI) dari jumlah pokok                                        amount outstanding.
                         terutang.

                     Aset keuangan diklasifikasikan sebagai FVOCI                              Financial assets are classified as FVOCI if they
                     jika memenuhi kondisi berikut:                                            meet the following condition:

                 -       Aset keuangan dikelola dalam model bisnis                         -       The financial assets are managed in a
                         yang bertujuan untuk mendapatkan arus                                     business model which objective is to obtain
                         kas kontraktual dan menjual aset                                          contractual cash flows and sell the financial
                         keuangan; dan                                                             asset; and
                 -       Persyaratan   kontraktual    dari    aset                         -       The contractual requirements of the financial
                         keuangan tersebut memenuhi kriteria                                       assets meet the SPPI criteria.
                         SPPI.

                     Aset keuangan lainnya yang tidak memenuhi                                 Financial assets that do not meet the
                     persyaratan untuk diklasifikasikan sebagai                                requirements to be classified as financial assets
                     aset keuangan yang diukur pada biaya                                      measured at amortized cost or FVOCI, are
                     perolehan      diamortisasi  atau  FVOCI,                                 classified as FVTPL.
                     diklasifikasikan sebagai FVTPL.

                     Aset keuangan tidak boleh direklasifikasi                                 Financial assets are not permitted to be
                     setelah pengakuan awal.                                                   reclassified subsequently to their initial
                                                                                               recognition.

                     Liabilitas keuangan diklasifikasikan ke dalam                             Financial liabilities are classified into the
                     kategori sebagai berikut pada saat pengakuan                              following categories on initial recognition:
                     awal:

                     -    Diukur pada nilai wajar melalui laba rugi,                           -   Fair value through profit or loss, which has
                          yang memiliki 2 (dua) sub-klasifikasi, yaitu                             2 (two) sub-classifications, i.e. financial
                          liabilitas keuangan yang ditetapkan                                      liabilities designated as such upon initial
                          demikian pada saat pengakuan awal dan                                    recognition      and   financial    liabilities
                          liabilitas keuangan dipersyaratkan diukur                                mandatorily classified as fair value through
                          pada nilai wajar melalui laba rugi; dan                                  profit or loss; and

                     -    Liabilitas keuangan lainnya merupakan                                -    Other financial liabilities pertain to financial
                          liabilitas keuangan yang tidak dimiliki untuk                             liabilities that are not held for trading nor
                          dijual atau ditentukan sebagai nilai wajar                                designated as at fair value through profit or
                          melalui laba rugi saat pengakuan liabilitas.                              loss upon recognition of the liability.




                                                                     17
Page 557
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.      INFORMATION OF MATERIAL ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)
       d. Aset dan liabilitas keuangan (lanjutan)                          d. Financial assets and liabilities (continued)
            2) Pengakuan dan pengukuran awal                                  2) Recognition and initial measurement
                Semua aset atau liabilitas keuangan pada                           All financial assets or liabilities are measured
                saat pengakuan awal diukur sebesar nilai                           initially at their fair value plus transaction
                wajarnya ditambah biaya transaksi, kecuali                         costs, except for financial assets and financial
                untuk aset keuangan dan liabilitas keuangan                        liabilities measured at fair value through profit
                yang diukur pada nilai wajar melalui laba                          or loss, transaction costs are recognized
                rugi, dimana biaya transaksi diakui langsung                       directly in profit or loss.
                dalam laba rugi.
                Pembelian dan penjualan aset keuangan                              Regular way purchases and sales of financial
                yang lazim (regular), diakui pada tanggal                          assets are recognized on the trade date at
                perdagangan    dimana     Bank   memiliki                          which the Bank commits to purchase or sell
                komitmen untuk membeli atau menjual aset                           those assets.
                tersebut.
                Semua aset dan liabilitas keuangan lainnya                         All other financial assets and liabilities are
                pada    awalnya    diakui   pada     tanggal                       initially recognized on the trade date at which
                perdagangan dimana Bank menjadi suatu                              the Bank becomes a party to the contractual
                pihak dalam ketentuan kontraktual instrumen                        provisions of the instrument.
                tersebut.
               Biaya transaksi hanya meliputi biaya-biaya                          Transaction costs include only those costs that
               yang dapat diatribusikan secara langsung                            are directly attributable to the acquisition of a
               untuk perolehan suatu aset keuangan atau                            financial asset or issuance of a financial
               penerbitan suatu liabilitas keuangan dan                            liability and are incremental costs that would
               merupakan biaya tambahan yang tidak akan                            not have been incurred if the financial
               terjadi apabila instrumen keuangan tersebut                         instruments had not been acquired or issued.
               tidak diperoleh atau diterbitkan. Untuk aset                        In the case of financial assets, transaction
               keuangan, biaya transaksi ditambahkan pada                          costs are added to the amount recognized
               jumlah yang diakui pada awal pengakuan                              initially, while for financial liabilities, transaction
               aset, sedangkan untuk liabilitas keuangan,                          costs are deducted from the amount of liability
               biaya transaksi dikurangkan dari jumlah                             recognized initially.
               liabilitas yang diakui pada awal pengakuan
               liabilitas.
               Biaya transaksi tersebut diamortisasi selama                        Such transaction costs are amortized over the
               umur instrumen berdasarkan metode suku                              terms of the instruments based on the effective
               bunga efektif dan dicatat sebagai bagian dari                       interest method and are recorded as part of
               pendapatan bunga untuk biaya transaksi                              interest income for transaction costs related to
               sehubungan dengan aset keuangan atau                                financial assets or interest expenses for
               sebagai bagian dari beban bunga untuk                               transaction costs related to financial liabilities.
               biaya transaksi sehubungan dengan liabilitas                        After initial recognition, the Bank measures
               keuangan. Setelah pengakuan awal, Bank                              financial assets, according to the classification
               mengukur aset keuangan, sesuai dengan                               of financial assets at (i) amortized cost; (ii) Fair
               klasifikasi aset keuangan pada; (i) Biaya                           value through other comprehensive income; or
               perolehan diamortisasi; (ii) Nilai wajar melalui                    (iii) Fair value through profit or loss.
               penghasilan komprehensif lain; atau (iii) Nilai
               wajar melalui laba rugi.
               Aset keuangan pada biaya perolehan                                  Financial assets at amortized cost are
               diamortisasi diukur dengan menjumlahkan                             measured by adding up the financial assets
               aset keuangan yang diukur saat pengakuan                            measured at initial recognition minus principal
               awal dikurangi pembayaran pokok, ditambah                           payments, added or reduced by cumulative
               atau dikurangi dengan amortisasi kumulatif                          amortization using the effective interest method
               menggunakan metode bunga efektif yang                               calculated from the difference between the
               dihitung dari selisih antara nilai awal dan nilai                   initial value and the maturity value and
               jatuh temponya dan disesuaikan dengan                               adjusted for the allowance for losses.
               penyisihan kerugiannya.


                                                               18
Page 558
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                           2.     INFORMATION OF MATERIAL                             ACCOUNTING
      (lanjutan)                                                              POLICIES (continued)
      d.   Aset dan liabilitas keuangan (lanjutan)                           d.        Financial assets and liabilities (continued)
           2) Pengakuan dan pengukuran awal (lanjutan)                            2)     Recognition        and       initial      measurement
                                                                                         (continued)

               Keuntungan atau kerugian akibat fluktuasi nilai                           Gains or losses due to fluctuations in fair value
               wajar tidak diakui aset keuangan pada biaya                               are not recognized financial assets at amortized
               perolehan diamortisasi.                                                   cost.
               Pendapatan bunga dihitung menggunakan                                     Interest income is calculated using the effective
               metode      bunga     efektif  yaitu    dengan                            interest method by applying an effective interest
               menerapkan suku bunga efektif atas jumlah                                 rate to the gross carrying amount of financial
               tercatat bruto aset keuangan, kecuali untuk:                              assets, except for:
              a)     aset keuangan yang dibeli atau yang                                 a)   financial assets purchased or originating
                     berasal dari aset keuangan memburuk.                                     from financial assets deteriorate. For these
                     Untuk aset keuangan tersebut, Bank                                       financial assets, the Bank applies an
                     menerapkan suku bunga efektif yang                                       effective interest rate adjusted by credit for
                     disesuaikan dengan kredit atas biaya                                     the amortized cost of the financial assets
                     perolehan diamortisasi aset keuangan                                     from initial recognition.
                     sejak pengakuan awal.
              b) aset keuangan yang tidak dibeli atau                                    b)    financial assets that are not purchased or
                     yang berasal dari aset keuangan                                          that originate from financial assets
                     memburuk tetapi selanjutnya menjadi                                      deteriorate but subsequently become
                     aset keuangan memburuk. Untuk aset                                       financial assets deteriorate. For these
                     keuangan tersebut, Bank menerapkan                                       financial assets, the Bank applies an
                     suku bunga efektif atas biaya perolehan                                  effective interest rate on the amortized cost
                     diamortisasi aset keuangan di periode                                    of the financial assets in the next reporting
                     pelaporan selanjutnya.                                                   period.
              Setelah pengakuan awal, Bank mengukur                                      After initial recognition, the Bank measures
              liabilitas keuangan, sesuai dengan klasifikasi                             financial liabilities, according to the classification
              aset keuangan pada: (i) Biaya perolehan                                    of financial assets at: (i) Amortized cost; or (ii)
              diamortisasi; atau (ii) Nilai wajar melalui laba                           Fair value through profit or loss.
              rugi.
              Untuk liabilitas keuangan yang diukur pada                                 For financial liabilities measured at profit or loss,
              laba rugi, keuntungan dan kerugian diakui pada                             gains and losses are recognized in profit or loss.
              laba rugi. Terdapat pengecualian pada kasus                                There are exceptions in the case of financial
              liabilitas keuangan ditetapkan sebagai FVTPL                               liabilities designated as FVTPL where changes
              dimana perubahan risiko kredit liabilitas diakui                           in credit liability risks are recognized in other
              pada penghasilan komprehensif lain dengan                                  comprehensive income with other gains and
              keuntungan dan kerugian lainnya diakui pada                                losses recognized in profit or loss.
              laba rugi.
              Setelah pengakuan awal, liabilitas keuangan                                After initial recognition, financial liabilities at
              yang diukur pada FVTPL diukur pada nilai                                   FVTPL are measured at its fair value. Gains or
              wajarnya. Keuntungan atau kerugian yang                                    losses arising from a change in the fair value are
              timbul dari perubahan nilai wajar diakui dalam                             recognized in profit or loss.
              laba rugi.
           3) Penghentian pengakuan                                               3)     Derecognition
              Bank menghentikan pengakuan aset keuangan                                  The Bank derecognizes a financial asset when
              pada saat hak kontraktual atas arus kas yang                               the contractual rights to the cash flows from the
              berasal    dari    aset   keuangan    tersebut                             financial asset expire or when the Bank
              kadaluwarsa atau pada saat Bank mentransfer                                transfers the rights to receive the contractual
              seluruh hak untuk menerima arus kas                                        cash flows on the financial asset in a transaction
              kontraktual dari aset keuangan dalam transaksi                             in which substantially all the risks and rewards
              dimana Bank secara substansial telah                                       of ownership of the financial asset are
              mentransfer seluruh risiko dan manfaat atas                                transferred.
              kepemilikan aset keuangan.


                                                                 19
Page 559
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                         2.     INFORMATION OF MATERIAL ACCOUNTING
      (lanjutan)                                                            POLICIES (continued)
      d. Aset dan liabilitas keuangan (lanjutan)                            d. Financial assets and liabilities (continued)
           3) Penghentian pengakuan (lanjutan)                                  3) Derecognition (continued)
               Setiap hak atau kewajiban yang timbul atau                           Any interest in transferred financial assets that
               yang masih dimiliki oleh Bank diakui sebagai                         is created or retained by the Bank is
               aset atau liabilitas secara terpisah.                                recognized as a separate asset or liability.

               Bank menghentikan pengakuan liabilitas                               The Bank derecognizes a financial liability
               keuangan pada saat kewajiban yang                                    when    its contractual obligations are
               ditetapkan dalam kontrak dilepaskan atau                             discharged or cancelled or expired.
               dibatalkan atau kadaluarsa.
               Dalam transaksi dimana Bank secara                                   In transaction in which the Bank neither
               substansial tidak memiliki atau tidak                                retains nor transfers substantially all the risks
               mentransfer seluruh risiko dan manfaat atas                          and rewards of ownership of a financial asset,
               kepemilikan      aset     keuangan,      Bank                        the Bank derecognizes the asset if it does not
               menghentikan pengakuan aset tersebut jika                            retain control over the asset. The rights and
               Bank tidak lagi memiliki pengendalian atas                           obligations retained in the transfer are
               aset tersebut. Hak dan kewajiban yang masih                          recognized separately as assets and liabilities
               dimiliki dalam transfer tersebut diakui secara                       as appropriate. In transfers in which control
               terpisah sebagai aset atau liabilitas. Dalam                         over the asset is retained, the Bank continues
               transfer dimana pengendalian atas aset                               to recognize the asset to the extent of its
               masih dimiliki, Bank tetap mengakui aset                             continuing involvement, determined by
               yang ditransfer tersebut sebesar keterlibatan                        theextent to which it is exposed to changes in
               berkelanjutan Bank yang ditentukan dengan                            the value of the transferred asset.
               seberapa jauh Bank terekspos terhadap
               perubahan nilai aset yang ditransfer.
               Bank menghapusbukukan aset keuangan                                  The Bank writes off financial assets and any
               dan cadangan kerugian penurunan nilai                                related allowance for impairment losses when
               terkait pada saat Bank menentukan bahwa                              the Bank determines that those financial
               aset keuangan tersebut tidak dapat ditagih.                          assets are uncollectible. The decision is
               Keputusan ini diambil setelah Bank                                   reached after Bank had undertaken various
               melakukan       berbagai     upaya     untuk                         efforts to obtain back the financial asset as
               memperoleh kembali aset keuangan tersebut                            well as considering information such as the
               serta mempertimbangkan informasi seperti                             occurrence of significant changes in the
               telah terjadinya perubahan signifikan pada                           financial position of borrower/financial asset
               posisi keuangan debitur/penerbit aset                                issuer such that the borrower/financial asset
               keuangan sehingga debitur/penerbit aset                              issuer can no longer pay the obligation or that
               keuangan tidak lagi dapat melunasi                                   proceeds from collateral will not be sufficient
               kewajibannya atau hasil penjualan agunan                             to pay back the entire exposure.
               tidak akan cukup untuk melunasi seluruh
               eksposur yang diberikan.
          4)   Saling hapus                                                      4) Offsetting
               Aset keuangan dan liabilitas keuangan dapat                          Financial assets and financial liabilities are set
               saling hapus dan nilai bersihnya disajikan                           off and the net amount is presented in the
               dalam laporan posisi keuangan jika, dan                              statement of financial position when, and only
               hanya jika, Bank memiliki hak yang dapat                             when, the Bank has a legally enforceable right
               dipaksakan secara hukum untuk melakukan                              to set off the amounts and intends either to
               saling hapus atas jumlah yang telah diakui                           settle on a net basis or realize the asset and
               tersebut dan berniat untuk menyelesaikan                             settle the liability simultaneously.
               secara neto atau untuk merealisasikan aset
               dan menyelesaikan liabilitasnya secara
               simultan.
               Pendapatan dan beban disajikan dalam                                 Income and expenses are presented on a net
               jumlah bersih hanya jika diperkenankan oleh                          basis only when permitted by accounting
               standar akuntansi.                                                   standards.



                                                                20
Page 560
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.     INFORMATION OF MATERIAL                            ACCOUNTING
        (lanjutan)                                                          POLICIES (continued)

       d.   Aset dan liabilitas keuangan (lanjutan)                        d. Financial assets and liabilities (continued)

            5) Pengukuran biaya perolehan diamortisasi                         5)    Amortized cost measurement

                Biaya perolehan diamortisasi dari aset atau                          The amortized cost of a financial asset or
                liabilitas keuangan adalah jumlah aset atau                          liability is the amount at which the financial
                liabilitas keuangan yang diukur pada saat                            asset or liability is measured at initial
                pengakuan awal, dikurangi pembayaran pokok,                          recognition, minus principal repayments, plus or
                ditambah atau dikurangi dengan amortisasi                            minus the cumulative amortization using the
                kumulatif dengan menggunakan metode suku                             effective interest method of any difference
                bunga efektif yang dihitung dari selisih antara                      between the initial amount recognized and the
                nilai awal dan nilai jatuh temponya, dan untuk                       maturity amount and adjusted for any expected
                aset keuangan disesuaikan dengan cadangan                            credit loss allowance. The gross carrying
                kerugian kredit ekspektasian. Nilai tercatat                         amount of a financial asset is the amortized cost
                bruto aset keuangan merupakan biaya                                  of a financial asset before adjusting for any
                perolehan diamortisasi aset keuangan sebelum                         expected credit loss allowance.
                disesuaikan dengan cadangan kerugian kredit
                ekspektasian.

               Tingkat suku bunga efektif adalah suku bunga                          The effective interest rate is the rate that exactly
               yang secara tepat mendiskontokan estimasi                             discounts the estimated future cash flows
               arus kas di masa datang selama perkiraan                              through the expected life of the financial asset
               umur dari aset keuangan atau liabilitas                               or financial liability (or, where appropriate, a
               keuangan (atau jika lebih tepat, digunakan                            shorter period), to the gross carrying amount of
               periode yang lebih singkat), atas nilai tercatat                      the financial asset (when the asset is not credit-
               bruto aset keuangan (ketika aset tidak                                impaired) or to the amortized cost of the
               mengalami penurunan nilai) atau pada biaya                            financial liability. When calculating the effective
               perolehan     diamortisasi   untuk      liabilitas                    interest rate, the Bank estimates future cash
               keuangan. Pada saat menghitung tingkat suku                           flows considering all contractual terms of the
               bunga efektif, Bank mengestimasi arus kas di                          financial instrument (for example prepayment
               masa datang dengan mempertimbangkan                                   options), but does not consider any future credit
               seluruh ketentuan kontraktual dalam instrumen                         losses. For purchased or originated credit-
               keuangan tersebut (antara lain opsi pelunasan                         impaired financial assets, a credit-adjusted
               dipercepat), namun tidak mempertimbangkan                             effective interest rate is calculated using
               kerugian kredit di masa mendatang. Untuk aset                         estimated future cash flows including ECL.
               keuangan yang dibeli atau yang berasal dari
               aset keuangan memburuk, suku bunga efektif
               yang disesuaikan dengan risiko kredit dihitung
               dengan menggunakan arus kas di masa
               datang termasuk ECL.

               Perhitungan suku bunga efektif mencakup                               The calculation of the effective interest rate
               biaya transaksi dan seluruh provisi yang                              includes transaction costs and all fees paid or
               dibayarkan atau diterima yang merupakan                               received that are an integral part of the effective
               bagian tak terpisahkan dari suku bunga efektif.                       interest rate.

            6) Pengukuran nilai wajar                                           6)    Fair value measurement

                Nilai wajar adalah harga yang akan diterima                           Fair value is the price that would be received to
                untuk menjual suatu aset atau harga yang                              sell an asset or paid to transfer a liability in an
                akan dibayar untuk mengalihkan suatu liabilitas                       orderly transaction between market participants
                dalam transaksi teratur (orderly transaction)                         at the measurement date in the principal market
                antara pelaku pasar (market participants) pada                        or, in its absence, the most advantageous
                tanggal pengukuran di pasar utama atau, jika                          market to which the Bank has access at that
                tidak terdapat pasar utama, di pasar yang                             date. The fair value of a liability reflects its non-
                paling menguntungkan dimana Bank memiliki                             performance risk.
                akses pada tanggal tersebut. Nilai wajar
                liabilitas mencerminkan risiko wanprestasinya.

                                                               21
Page 561
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

 2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                     2.      INFORMATION OF MATERIAL                        ACCOUNTING
       (lanjutan)                                                         POLICIES (continued)
      d.   Aset dan liabilitas keuangan (lanjutan)                        d.   Financial assets and liabilities (continued)
           6) Pengukuran nilai wajar (lanjutan)                                6)   Fair value measurement (continued)
              Jika tersedia, Bank mengukur nilai wajar                              When available, the Bank measures the fair
              instrumen keuangan dengan menggunakan                                 value of a financial instrument using the
              harga kuotasian di pasar aktif untuk instrumen                        quoted price in an active market for that
              tersebut. Suatu pasar dianggap aktif jika                             instrument. A market is regarded as active if
              transaksi atas aset dan liabilitas terjadi dengan                     transactions for the asset or liability take
              frekuensi dan volume yang memadai untuk                               place with sufficient frequency and volume to
              menyediakan informasi penentuan harga                                 provide pricing information on an ongoing
              secara berkelanjutan.                                                 basis.
               Jika harga kuotasian tidak tersedia di pasar                         If there is no quoted price in an active market,
               aktif, Bank menggunakan teknik penilaian                             then the Bank uses valuation techniques that
               dengan memaksimalkan penggunaan input                                maximize the use of relevant observable
               yang dapat diobservasi dan relevan dan                               inputs and minimize the use of unobservable
               meminimalkan penggunaan input yang tidak                             inputs. The chosen valuation technique
               dapat diobservasi. Teknik penilaian yang                             incorporates all of the factors that market
               dipilih menggabungkan semua faktor yang                              participants would take into account in pricing
               diperhitungkan oleh pelaku pasar dalam                               a transaction.
               penentuan harga transaksi.
               Bukti terbaik atas nilai wajar instrumen                             The best evidence of the fair value of a
               keuangan pada saat pengakuan awal adalah                             financial instrument at initial recognition is
               harga transaksi, yaitu nilai wajar dari                              normally the transaction price, i.e., the fair
               pembayaran yang diberikan atau diterima. Jika                        value of the consideration given or received.
               Bank menetapkan bahwa nilai wajar pada                               If the Bank determines that the fair value at
               pengakuan awal berbeda dengan harga                                  initial recognition differs from the transaction
               transaksi dan nilai wajar tidak dapat dibuktikan                     price and the fair value is evidenced neither
               dengan harga kuotasian di pasar aktif untuk                          by a quoted price in an active market for an
               aset atau liabilitas yang identik atau                               identical asset or liability nor based on a
               berdasarkan teknik penilaian yang hanya                              valuation technique that uses only data from
               menggunakan data dari pasar yang dapat                               observable markets, then the financial
               diobservasi, maka nilai wajar instrumen                              instrument is initially measured at fair value,
               keuangan pada saat pengakuan awal                                    adjusted to defer the difference between the
               disesuaikan untuk menangguhkan perbedaan                             fair value at initial recognition and the
               antara nilai wajar pada saat pengakuan awal                          transaction      price.    Subsequently,    that
               dan harga transaksi. Setelah pengakuan awal,                         difference is recognized in profit or loss on
               perbedaan tersebut diakui dalam laba rugi                            an appropriate basis over the life of the
               berdasarkan umur dari instrumen tersebut                             instrument but no later than when the
               namun tidak lebih lambat dari saat penilaian                         valuation is wholly supported by observable
               tersebut didukung sepenuhnya oleh data                               market data or the transaction is closed out.
               pasar yang dapat diobservasi atau saat
               transaksi ditutup.
               Jika aset atau liabilitas yang diukur pada nilai                     If an asset or a liability measured at fair
               wajar memiliki harga penawaran dan harga                             value has a bid price and an ask price, then
               permintaan, maka Bank mengukur aset dan                              the Bank measures assets and long
               jangka panjang berdasarkan harga penawaran                           positions at a bid price and liabilities and
               dan mengukur liabilitas dan jangka pendek                            short positions at an ask prices.
               berdasarkan harga permintaan.
               Portofolio aset keuangan dan liabilitas                              Portfolios of financial assets and financial
               keuangan yang diukur pada nilai wajar, yang                          liabilities measured at fair value, that are
               terekspos risiko pasar dan risiko kredit yang                        exposed to market risk and credit risk that
               dikelola oleh Bank berdasarkan eksposur                              are managed by the Bank on the basis of the
               netonya baik terhadap risiko pasar ataupun                           net exposure to either market or credit risk,
               risiko kredit diukur berdasarkan harga yang                          are measured on the basis of a price that
               akan diterima untuk menjual posisi net long                          would be received to sell a net long position
               (atau dibayar untuk mengalihkan posisi net                           (or paid to transfer a net short position) for a
               short) untuk eksposur risiko tertentu.                               particular risk exposure.


                                                             22
Page 562
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                (Expressed in millions of Rupiah, unless otherwise stated)


  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.      INFORMATION OF MATERIAL                            ACCOUNTING
        (lanjutan)                                                              POLICIES (continued)
       d.    Aset dan liabilitas keuangan (lanjutan)                             d.     Financial assets and liabilities (continued)
            6) Pengukuran nilai wajar (lanjutan)                                        6)    Fair value measurement (continued)
                  Penyesuaian pada level portofolio tersebut                                  Those       portfolio-level  adjustments are
                  dialokasikan pada aset dan liabilitas individual                            allocated to the individual assets and
                  berdasarkan penyesuaian risiko relatif dari                                 liabilities on the basis of the relative risk
                  masing-masing instrumen individual di dalam                                 adjustment of each of the individual
                  portofolio.                                                                 instruments in the portfolio.
       e.   Transaksi dengan pihak-pihak berelasi                             e. Transactions with related parties
            Dalam menjalankan usahanya, Bank melakukan                            In the normal course of its business, the Bank enters
            transaksi dengan pihak-pihak berelasi seperti                         into transactions with related parties which are
            yang didefinisikan dalam PSAK 7 (Revisi 2015)                         defined under PSAK 7 (Revised 2015), “Related
            tentang “Pengungkapan Pihak-pihak Berelasi”.                          Party Disclosures”.
            Yang dimaksud dengan pihak yang berelasi                              The meaning of a related party is a person or entity
            adalah orang atau entitas yang berelasi dengan                        that is related to a reporting entity as follow:
            entitas pelapor sebagai berikut:
            i. Orang atau anggota keluarga terdekat                               i.     A person or a close member of that person’s
                 mempunyai relasi dengan entitas pelapor jika                            family is related to a reporting entity if that
                 orang tersebut:                                                         person:
                  a)   memiliki       pengendalian       atau                            a)   has control or joint control over the reporting
                       pengendalian bersama atas entitas                                      entity;
                       pelapor;
                  b) memiliki pengaruh signifikan atas                                   b)   has significant influence over the reporting
                       entitas pelapor; atau                                                  entity; or
                  c) personil manajemen kunci entitas                                    c) a member of the key management
                       pelapor atau entitas induk dari entitas                                personnel of the reporting entity or of a
                       pelapor.                                                               parent of the reporting entity.
            ii.    Satu entitas berelasi dengan entitas                           ii.    An entity is related to the reporting entity if any
                   pelapor jika memenuhi salah satu hal                                  of the following conditions applies:
                   berikut:
                  a)   Entitas dan entitas pelapor adalah                                a)   The entity and the reporting entity are
                       anggota dari kelompok usaha yang                                       members of the same Bank and its
                       sama (artinya entitas induk, entitas                                   subsidiaries (which means that each parent,
                       anak, dan entitas anak berikutnya                                      subsidiary and fellow subsidiary is related to
                       terkait dengan entitas lainnya);                                       the others);
                  b)   Satu entitas adalah entitas asosiasi                              b)   One entity is an associate or joint venture of
                       atau ventura bersama dari entitas lain                                 the other entity (or an associate or joint
                       (atau entitas asosiasi atau ventura                                    venture of a member of a Bank and its
                       bersama yang merupakan anggota                                         subsidiaries of which the other entity is a
                       suatu kelompok usaha, yang tersebut                                    member);
                       adalah anggotanya);
                  c)   Kedua entitas tersebut adalah ventura                             c)   Both entities are joint ventures of the same
                       bersama dari pihak ketiga yang sama;                                   third party;
                  d)   Satu entitas adalah ventura bersama                               d)   One entity is a joint venture of a third entity
                       dari entitas ketiga dan entitas yang lain                              and the other entity is an associate of the
                       adalah entitas asosiasi dari entitas                                   third entity;
                       ketiga;
                  e)   Entitas tersebut adalah suatu program                             e)   The entity is a post-employment benefit plan
                       imbalan pasca kerja untuk imbalan                                      for the benefit of employees of either the
                       kerja dari salah satu entitas pelapor                                  reporting entity, or an entity related to the
                       atau entitas yang terkait dengan entitas                               reporting entity;
                       pelapor;
                  f)   Entitas     yang    dikendalikan    atau                          f)   The entity is controlled or jointly controlled
                       dikendalikan bersama oleh orang yang                                   by a person identified in (a);
                       diidentifikasi dalam huruf (i);

                                                                   23
Page 563
                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                    (Expressed in millions of Rupiah, unless otherwise stated)



 2.        INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                     2.          INFORMATION OF MATERIAL                          ACCOUNTING
           (lanjutan)                                                             POLICIES (continued)
       e.     Transaksi    dengan     pihak-pihak     berelasi                e. Transactions with related parties (continued)
              (lanjutan)
                  g)   Orang yang diidentifikasi dalam huruf                           g)    A person identified in (a). (1) has significant
                       (i). (a) memiliki pengaruh signifikan                                 influence over the entity or is a member of
                       atas entitas atau personil manajemen                                  the key management personnel of the entity
                       kunci entitas (atau entitas induk dari                                (or a parent of the entity); or
                       entitas); atau
                  h)   Entitas atau anggota dari kelompok                              h)    The entity or any members of a Bank and its
                       yang mana entitas merupakan bagian                                    subsidiaries of which it is a part, provides
                       dari kelompok tersebut, menyediakan                                   key management personnel service to the
                       jasa personil manajemen kunci kepada                                  reporting entity or to the parent of the
                       entitas pelapor atau kepada entitas                                   reporting entity.
                       induk dari entitas pelapor.
            Transaksi dengan pihak-pihak berelasi dilakukan                        Transactions with related parties are made on the
            dengan syarat dan kondisi yang sama dengan                             same term and conditions as those transactions with
            transaksi-transaksi dengan pihak ketiga. Transaksi                     third parties. All transaction done by Bank have
            yang dilakukan Bank telah memenuhi Peraturan                           complied with Financial Services Authority
            Otoritas       Jasa       Keuangan         (POJK)                      Regulation (POJK) No.42/POJK.04/2020 about
            No.42/POJK.04/2020 tentang “Transaksi Afiliasi                         “Affiliated Transactions and Conflict of Interest
            dan Transaksi Benturan Kepentingan”.                                   Transactions”.
            Seluruh transaksi dan saldo yang material dengan                       All material transactions and balances with related
            pihak berelasi diungkapkan dalam catatan atas                          parties are disclosed in the relevant notes to the
            laporan keuangan yang relevan dan rinciannya                           financial statements and the detail is presented in
            disajikan dalam (Catatan 40).                                          (Note 40).
      f.    Kas dan setara kas                                               f.    Cash and cash equivalents
            Kas dan setara kas dalam laporan arus kas terdiri                      Cash and cash equivalents presented in the
            dari kas, giro pada Bank Indonesia dan bank lain,                      statements of cash flows consist of cash, current
            penempatan pada Bank Indonesia dan bank lain                           accounts with Bank Indonesia and other banks,
            dan Sertifikat Bank Indonesia, yang jatuh tempo                        placements with Bank Indonesia and other banks
            dalam waktu 3 (tiga) bulan sejak tanggal                               and Bank Indonesia Certificates Facility maturing
            perolehan, sepanjang tidak digunakan sebagai                           within 3 (three) months from the acquisition date,
            jaminan atas pinjaman yang diterima serta tidak                        and not used as collateral for borrowing and not
            dibatasi penggunaannya.                                                restricted in use.
      g. Giro pada Bank Indonesia dan bank lain                              g.    Current accounts with Bank Indonesia and other
                                                                                   banks
            Giro pada Bank Indonesia dan bank lain                                 Current accounts with Bank Indonesia and other
            dinyatakan sebesar biaya perolehan diamortisasi                        banks are stated at amortized cost using the
            menggunakan metode suku bunga efektif dikurangi                        effective interest rate method less an allowance for
            penyisihan kerugian penurunan nilai. Giro pada                         impairment losses. Current accounts with Bank
            Bank Indonesia dan bank lain diklasifikasikan                          Indonesia and other banks are classified as
            sebagai biaya perolehan diamortisasi.                                  amortized cost.
      h. Penempatan pada Bank Indonesia dan bank                             h.    Placements with Bank Indonesia and other
         lain                                                                      banks
            Penempatan pada Bank Indonesia dan bank lain                           Placement with Bank Indonesia and other banks
            terdiri dari Fasilitas Simpanan Bank Indonesia                         consists of Bank Indonesia Deposit Facility (FASBI),
            (FASBI), call money dan deposito berjangka.                            call money and time deposits.
            Penempatan pada Bank Indonesia dan bank lain                           Placements with Bank Indonesia and other banks
            dinyatakan sebesar biaya perolehan diamortisasi                        are stated at amortized cost using the effective
            menggunakan metode suku bunga efektif dikurangi                        interest rate method less an allowance for
            penyisihan kerugian penurunan nilai. Penempatan                        impairment losses. Placements with Bank Indonesia
            pada Bank Indonesia dan bank lain diklasifikasikan                     and other banks are classified as amortized cost.
            sebagai biaya perolehan diamortisasi.

                                                                 24
Page 564
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


  2.     INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                         2.      INFORMATION OF MATERIAL                          ACCOUNTING
         (lanjutan)                                                             POLICIES (continued)
       i. Surat berharga                                                     i. Marketable securities
         Surat berharga yang dimiliki terdiri dari Surat utang                   Marketable securities consist of Government bonds,
         negara, obligasi korporasi, reksadana, Surat                            corporate bonds, mutual funds, domestic L/C, export
         Keterangan Berdokumen Dalam Negeri (SKBDN),                             bills receivable, interbank mudarabah investment
         tagihan   wesel   ekspor,      sertifikat   investasi                   certificate, NCD, sukuk, other money market and
         mudharabah antar bank, NCD, sukuk, surat                                capital market securities.
         berharga pasar uang dan pasar modal lainnya.
         Surat utang negara terdiri dari surat utang yang                        Government bonds are bonds issued by the
         diterbitkan oleh Pemerintah Indonesia yang                              Government of Indonesia acquired through the
         diperoleh melalui pasar perdana dan sekunder.                           primary and secondary markets.
          Surat-surat berharga pada awalnya disajikan                             Marketable securities are initially measured at fair
          sebesar nilai wajarnya. Setelah pengakuan awal,                         value. After the initial recognition, the marketable
          surat-surat berharga dicatat sesuai dengan                              securities are recorded according to their category,
          kategorinya yaitu yang diukur pada nilai wajar                          i.e., fair value through other comprehensive
          melalui penghasilan komprehensif lain, investasi                        income, amortized cost investments or at fair value
          pada biaya perolehan diamortisasi atau berdasarkan                      through profit or loss.
          nilai wajar melalui laba atau rugi.
          Penilaian     surat    berharga     didasarkan atas                     The value of marketable securities is stated based
          klasifikasinya sebagai berikut:                                         on the classification as follows:
          1) Surat berharga yang dicatat pada biaya                               1)    Amortized cost marketable securities are
             perolehan yang diamortisasi menggunakan                                    carried at amortized cost using the effective
             metode suku bunga efektif.                                                 interest rate method.
          2) Surat     berharga    yang     dimiliki   untuk                      2)    Marketable securities classified as held-for-
             diperdagangkan dan yang ditetapkan pada nilai                              trading and designated at fair value through
             wajar melalui laba rugi pada saat pengakuan                                profit or loss on initial recognition are stated at
             awal dinyatakan pada nilai wajar. Keuntungan                               fair value. Gains and losses from changes in
             dan kerugian yang timbul dari perubahan nilai                              fair value are recognized in the statements of
             wajar diakui dalam laporan laba rugi dan                                   profit or loss and other comprehensive income.
             penghasilan komprehensif lain.
          3) Surat berharga yang diklasifikasikan pada nilai                      3)    Marketable securities classified as fair value
             wajar melalui penghasilan komprehensif lain                                through     other   comprehensive      income
             dinyatakan pada nilai wajar. Pendapatan bunga                              investments are stated at fair value. Interest
             diakui dalam laporan laba rugi dan penghasilan                             income is recognized in the statements of profit
             komprehensif lain menggunakan metode suku                                  or loss and other comprehensive income using
             bunga efektif. Laba atau rugi selisih kurs atas                            the effective interest rate method. Foreign
             surat berharga yang tersedia untuk dijual diakui                           exchange gains or losses on available-for-sale
             pada laporan laba rugi dan penghasilan                                     marketable securities are recognized in the
             komprehensif lain.                                                         statements of profit or loss and other
                                                                                        comprehensive income.
           Perubahan nilai wajar lainnya diakui secara                              Other fair value changes are recognized directly
           langsung dalam ekuitas sampai dengan surat-surat                         in equity until the marketable securities are sold or
           berharga tersebut dijual atau mengalami                                  impaired, whereby the cumulative gains and
           penurunan nilai, dimana keuntungan dan kerugian                          losses previously recognized in equity are
           kumulatif yang sebelumnya diakui dalam ekuitas                           recognized in the statements of profit or loss and
           harus diakui pada laporan laba rugi dan                                  other comprehensive income.
           penghasilan komprehensif lain.

           Aset Keuangan Sukuk                                                      Sukuk Financial Assets

           Bank menerapkan PSAK No.110 "Investasi Sukuk"                            The Bank applies PSAK No.110 “Sukuk
           yang mengatur mengenai pengakuan, pengukuran,                            Investment" which regulate about recognition,
           penyajian, dan pengungkapan transaksi sukuk                              measurement, presentation, and disclosure
           ijarah dan sukuk mudharabah.                                             transaction of sukuk ijarah and sukuk
                                                                                    mudharabah.



                                                                 25
Page 565
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                    (Expressed in millions of Rupiah, unless otherwise stated)


 2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.     INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                             POLICIES (continued)
      i.   Surat berharga (lanjutan)                                         i. Marketable securities (continued)
           1) Diukur pada biaya perolehan                                      1)   Measured at cost
              a)    Investasi tersebut dimiliki dalam suatu                         a)   The investment is held in abusiness model
                    model usaha yang bertujuan utama untuk                               whereby the primary goal is to obtain
                    memperoleh arus kas kontraktual dan                                  contractual cash flows and has contractual
                    terdapat persyaratan kontraktual dalam                               term in determining the specific date of
                    menentukan      tanggal    tertentu atas                             principal payments and or the results.
                    pembayaran pokok dan atau hasilnya.
              b)    Biaya perolehan sukuk termasuk biaya                            b)
                                                                                    Sukuk acquisition cost includes transaction
                    transaksi.                                                      cost.
              c)    Selisih antara biaya perolehan dan nilai                     c) The difference between the acquisition cost
                    nominal diamortisasi secara garis lurus                         and the nominal value is amortized on a
                    selama jangka waktu sukuk.                                      straight line basis over the period of the
                                                                                    sukuk.
              d)  Rugi penurunan nilai diakui jika jumlah                        d) Impairment loss is recognized if the recovable
                  terpulihkan lebih kecil dari jumlah tercatat                      amount is less than the carrying amount and
                  dan disajikan sebagai rugi penurunan nilai                        is presented as an impairment loss in the
                  di dalam laba rugi.                                               profit or loss.
           2) Diukur pada nilai wajar                                          2) Measured at fair value
               a)   Nilai wajar ditentukan dengan mengacu                           a)  The fair value is determined withreference to
                    pada urutan sebagai berikut:                                        the following order:
                     - Kuotasi harga di pasar aktif.                                     - Price quotation in active market.
                     - Harga yang terjadi dari transaksi terkini,                        - Price from the current transaction, if there
                       apabila tidak ada kuotasi harga di pasar                            is no available price quotations in an
                       aktif.                                                              active market.
                     - Nilai wajar instrumen sejenis, apabila                            - Fair value of similar instrument, if there is
                       tidak ada kuotasi harga di pasar aktif, dan                         no available price quotations in an active
                       tidak ada harga yang terjadi dari transaksi                         market and no price from the current
                       terkini.                                                            transaction.
               b)   Biaya perolehan sukuk tidak termasuk                             b) Sukuk acquisition cost does not include
                    biaya transaksi.                                                    transaction cost.
               c)   Selisih antara nilai wajar dan jumlah                            c) The difference between fair value and
                    tercatat diakui dalam laba rugi.                                    carrying value is presented in profit or loss.
      j.   Surat berharga yang dijual dengan janji dibeli                   j. Marketable securities sold under repurchase
           kembali (repo) dan surat berharga yang dibeli                       agreement (repo) and marketable securities
           dengan janji dijual kembali (reverse repo)                          purchased under resale agreement (reverse repo)
           Surat berharga yang dijual dengan janji dibeli                      Marketable securities sold under repurchased
           kembali (repo) disajikan sebagai liabilitas dalam                   agreements (repo) are presented as liabilities in the
           laporan posisi keuangan sebesar harga pembelian                     statement of financial position at the agreed
           kembali yang disepakati dikurangi selisih antara                    repurchase price less the difference between the
           harga jual dan harga pembelian kembali yang                         selling price and agreed repurchase price. The
           disepakati. Selisih antara harga jual dan harga                     difference between the selling price and agreed
           pembelian kembali yang disepakati tersebut                          repurchase price is amortised using effective interest
           diamortisasi dengan menggunakan metode suku                         method as interest expense over the period
           bunga efektif sebagai beban bunga selama jangka                     commencing from the selling date to the repurchase
           waktu sejak surat berharga tersebut dijual hingga                   date.
           saat dibeli kembali.
           Surat berharga yang dijual dengan janji dibeli                      Marketable securities sold under repurchased
           kembali diklasifikasikan sebagai biaya perolehan                    agreement are classified as amortized cost.
           diamortisasi.
           Surat berharga yang dibeli dengan janji untuk dijual                Marketable securities purchased under resale
           kembali (reverse repo) disajikan sebagai aset                       agreements (reverse repo) are presented as an asset
           dalam laporan posisi keuangan sebesar harga beli                    in the statement of financial position at the purchase
           ditambah dengan pendapatan bunga yang sudah                         price added with interest income recognised but not
           diakui tapi belum diterima, dikurangi dengan                        yet received, less allowance for impairment losses,
           cadangan kerugian penurunan nilai, jika diperlukan.                 where appropriate.

                                                                  26
Page 566
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                     2.     INFORMATION OF MATERIAL                           ACCOUNTING
        (lanjutan)                                                        POLICIES (continued)

       j.   Surat berharga yang dijual dengan janji dibeli               j.    Marketable securities sold under repurchase
            kembali (repo) dan surat berharga yang dibeli                      agreement (repo) and marketable securities
            dengan janji dijual kembali (reverse repo)                         purchased under resale agreement (reverse
            (lanjutan)                                                         repo) (continued)

            Pada pengukuran awal, surat berharga yang                          Marketable securities purchased under resale
            dibeli dengan janji dijual kembali (reverse repo)                  agreement (reverse repo) are initially measured at
            disajikan sebesar nilai wajar ditambah dengan                      fair value plus directly attributable transaction
            biaya transaksi yang dapat diatribusikan secara                    costs.
            langsung.

            Surat berharga yang dibeli dengan janji dijual                     Marketable securities purchased under resale
            kembali (reverse repo) diklasifikasikan sebagai                    agreement (reverse repo) are classified as
            biaya perolehan diamortisasi.                                      amortized cost.

       k.   Tagihan lainnya                                              k.    Other receivables

            Tagihan lainnya terdiri dari tagihan transfer dan                  Other receivables consist of transfer receivable
            transaksi ATM antar bank.               Akun ini                   and inter-banks ATM transaction. This account is
            diklasifikasikan  sebagai      biaya    perolehan                  classified as amortized cost.
            diamortisasi.

       l.   Kredit yang diberikan dan pembiayaan syariah                 l.    Loans and sharia financing

            Kredit yang diberikan pada awalnya diukur pada                     Loans are initially measured at fair value plus
            nilai wajar ditambah dengan biaya transaksi yang                   transaction costs that are attributable to obtaining
            dapat diatribusikan secara langsung dan                            the financial asset, and subsequently measured at
            merupakan biaya tambahan untuk memperoleh                          their amortized cost using the effective interest
            aset keuangan tersebut, dan setelah pengakuan                      rate method, net of allowance for impairment
            awal diukur pada biaya perolehan diamortisasi                      losses.
            menggunakan metode suku bunga efektif
            dikurangi dengan penyisihan kerugian penurunan
            nilai.

            Kredit yang diberikan diklasifikasikan sebagai                     Loans are classified as amortized cost.
            biaya perolehan diamortisasi.

            Penerusan kredit yang diberikan dinyatakan                         Channeling loans are stated at the principal
            sebesar pokok kredit yang diberikan.                               amount.

            Biaya yang dapat diatribusikan secara langsung                     Attributable costs to the recognition of loans
            dalam pengakuan kredit yang diberikan meliputi                     comprises of provision and commissions.
            biaya provisi dan komisi.

            Kredit yang diberikan termasuk piutang syariah,                    Loans    may      include sharia receivables,
            pendanaan mudharabah dan musyarakah serta                          mudharabah and musyarakah financing and
            piutang qardh.                                                     qardh receivable.

            Piutang syariah merupakan hasil dari transaksi                     Sharia receivables result from sale and purchase
            jual beli berdasarkan perjanjian murabahah.                        transactions based on murabahah agreements.

            Murabahah adalah akad jual beli barang tertentu                    Murabahah is an agreement to buy and sell
            dengan harga ditentukan sebesar harga                              certain products at acquisition cost plus a certain
            perolehan ditambah keuntungan yang disepakati                      margin to be agreed by both the buyer and seller
            dan Bank sebagai penjual harus mengungkapkan                       and the Bank as the seller is required to disclose
            harga perolehan barang tersebut kepada pembeli                     the acquisition cost to the buyer. Murabahah
            (debitur). Piutang murabahah dinyatakan sebesar                    receivables are stated at the amount of
            jumlah piutang setelah dikurangi dengan ”marjin                    receivables less unrealized deferred margin and
            yang ditangguhkan” yang belum direalisasikan                       allowance for losses.
            dan penyisihan kerugian.

                                                            27
Page 567
                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)

 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                           2.      INFORMATION     OF                MATERIAL           ACCOUNTING
      (lanjutan)                                                               POLICIES (continued)
      l. Kredit yang diberikan dan pembiayaan syariah                         l. Loans and sharia financing (continued)
         (lanjutan)
        Mudharabah adalah kontrak kerjasama usaha                                 Mudharabah is a business cooperation contract
        antara pemilik dana (shahibul maal) dan manajer                           between the owner of the funds (shahibul maal) and
        pendanaan      (mudharib)   berdasarkan   rasio                           fund managers (mudharib) based on the ratio of
        pendapatan atau keuntungan dan kerugian yang                              income or gains and losses are predetermined.
        ditentukan sebelumnya. Piutang mudharabah pada                            Mudharabah receivables are initially measured at fair
        awalnya diukur pada nilai wajar diamortisasi                              value is amortized using the effective margin method
        menggunakan metode margin efektif dikurangi                               less any allowance for impairment losses.
        dengan cadangan kerugian penurunan nilai.
        Biaya transaksi yang dapat diatribusikan secara                           Transaction costs that are directly attributable and an
        langsung dan merupakan pendapatan dan biaya                               income and additional costs to acquire the financial
        tambahan untuk memperoleh aset keuangan                                   asset is amortized using the effective margin method
        tersebut diamortisasi menggunakan metode margin                           less any allowance for impairment losses.
        efektif dikurangi dengan cadangan kerugian
        penurunan nilai.
        Musyarakah adalah akad kerjasama yang terjadi                             Musyarakah is an agreement between the investors
        diantara para pemilik modal (mitra musyarakah)                            (musyarakah partners) to enter into a joint-venture in
        untuk menggabungkan modal dan melakukan                                   the form of a partnership with revenue or profit and
        usaha secara bersama dalam suatu kemitraan,                               loss sharing based on an agreement or capital
        dengan nisbah pembagian hasil atau kerugian                               contribution proportion.
        sesuai dengan kesepakatan atau secara
        proporsional sesuai kontribusi modal.
        Qardh adalah pinjam meminjam dana tanpa                                   Qardh is a loan/borrowing funds without any agreed
        imbalan yang diperjanjikan dengan liabilitas pihak                        consideration wherein the borrower has the obligation
        peminjam mengembalikan pokok pinjaman secara                              to return the principal of the loan at lump sum or on
        sekaligus atau cicilan dalam jangka waktu tertentu.                       installment over a certain period.
        Kredit yang direstrukturisasi disajikan sebesar nilai                     Restructured loans are stated at the lower of carrying
        yang lebih rendah antara nilai tercatat kredit pada                       value of the loan at the time of restructuring or net
        tanggal restrukturisasi atau nilai tunai penerimaan                       present value of the total future cash receipts after
        kas masa depan setelah restrukturisasi. Kerugian                          restructuring. Losses arising from any excess of the
        akibat selisih antara nilai tercatat kredit pada                          carrying value of the loan at the time of restructuring
        tanggal     restrukturisasi   dengan       nilai tunai                    over the net present value of the total future cash
        penerimaan        kas     masa     depan        setelah                   receipts after restructuring are recognized in the
        restrukturisasi diakui dalam laporan laba rugi dan                        statement of profit or loss and other comprehensive
        penghasilan        komprehensif      lain.      Setelah                   income. Thereafter, all cash receipt under the new
        restrukturisasi, semua penerimaan kas masa                                terms shall be accounted for as the recovery of
        depan yang ditetapkan dalam persyaratan baru                              principal and interest income. In accordance with the
        dicatat sebagai pengembalian pokok kredit yang                            restructuring scheme.
        diberikan dan pendapatan bunga sesuai dengan
        syarat-syarat restrukturisasi.
        Kredit yang diberikan dihapusbukukan ketika tidak                         Loans are written-off when there are no realistic
        terdapat prospek yang realistis mengenai                                  prospects of future recovery and all collateral have
        pengembalian di masa datang dan semua jaminan                             been realized or have been foreclosed. When loans
        telah diupayakan untuk direalisasi atau sudah                             are deemed uncollectible, they are written-off against
        diambil alih. Kredit yang tidak dapat dilunasi                            the related allowance for impairment losses.
        dihapusbukukan dengan mendebet cadangan                                   Subsequent recoveries of loans written-off are
        kerugian penurunan nilai. Pelunasan kemudian                              credited to the allowance for impairment losses in the
        atas    kredit    yang     telah   dihapusbukukan                         statements of financial position, if recovered in the
        sebelumnya, jika pada periode berjalan dikreditkan                        current year and are recognized in the statement of
        ke cadangan kerugian penurunan nilai di laporan                           profit or loss and other comprehensive income as
        posisi keuangan, jika setelah tanggal laporan posisi                      other operating income, if recovered after the
        keuangan      dikreditkan    sebagai    pendapatan                        statement of financial position date.
        operasional lainnya dalam laporan laba rugi dan
        penghasilan komprehensif lain.



                                                                  28
Page 568
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.     INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                         POLICIES (continued)

       m. Identifikasi  dan       pengukuran       kerugian              m. Identification and measurement of impairment
          penurunan nilai                                                   losses
          Aset produktif terdiri dari giro pada bank lain,                     Earning assets consist of current accounts with
          penempatan pada Bank Indonesia dan bank lain,                        other banks, placements with Bank Indonesia and
          surat berharga, surat berharga yang dijual dengan                    other banks, marketable securities, marketable
          janji dibeli kembali (repo), surat berharga yang                     securities sold under purchased agreement
          dibeli dengan janji dijual kembali (reverse repo),                   (repo), marketable securities purchased under
          kredit yang diberikan, tagihan lainnya dan                           resale agreement (reverse repo), loans, other
          komitmen dan kontinjensi.                                            receivable and commitments and contingencies.
          Komitmen dan kontinjensi pada transaksi rekening                     Commitments and contingencies are off-balance
          administratif, antara lain terdiri dari namun tidak                  sheet transactions which include but are not
          terbatas pada penerbitan jaminan, letter of credit,                  limited to issued guarantees, letters of credit,
          standby letter of credit dan fasilitas kredit yang                   standby letters of credit and unused loan facilities.
          belum digunakan.

          Penurunan nilai aset keuangan                                        Impairment of financial assets

          PSAK 71 mengharuskan cadangan kerugian diakui                        PSAK 71 requires a loss allowance to be
          sebesar kerugian kredit ekspektasian (Expected                       recognized at an amount equal to either 12 month
          Credit Loss ECL) 12 bulan (12-month ECL) atau                        Expected Credit Loss or lifetime ECLs. Lifetime
          kerugian kredit ekspektasian sepanjang umur aset                     ECLs are the ECLs that result from all possible
          keuangan (lifetime ECL). Lifetime ECL adalah                         default events over the expected life of a financial
          kerugian kredit ekspektasian yang berasal dari                       instrument, whereas 12-month ECLs are the
          semua kemungkinan kejadian gagal bayar                               portion of ECLs that result from default events that
          sepanjang umur ekspektasian suatu instrumen                          are possible within the 12 months after reporting
          keuangan, sedangkan ECL 12 bulan adalah porsi                        date.
          dari kerugian kredit ekspektasian yang berasal dari
          kemungkinan kejadian gagal bayar dalam 12 bulan
          setelah tanggal pelaporan.

          Bank mengakui cadangan kerugian untuk ECL                            The Bank recognizes loss allowances for ECL on
          pada instrumen keuangan berikut yang tidak diukur                    the following financial instruments that are not
          pada FVTPL:                                                          measured at FVTPL:

           - Aset keuangan yang merupakan instrumen utang;                     - Financial assets that are debt instruments;
           - Kontrak jaminan keuangan yang diterbitkan; dan                    - Financial guarantee contracts issued; and
           - Komitmen pinjaman diberikan.                                      - Loan commitments issued.

          Pada setiap tanggal pelaporan, Bank akan                             At each reporting date, the Bank shall measure
          mengukur cadangan kerugian instrumen keuangan                        the loss allowance for a financial instrument at an
          sejumlah kerugian kredit ekspektasian sepanjang                      amount equal to the lifetime credit losses, if the
          umur (lifetime) instrumen keuangan, jika risiko                      credit risk on that financial instrument has
          kredit atas instrumen keuangan tersebut telah                        increased significantly since initial recognition.
          meningkat secara signifikan sejak pengakuan awal.                    The Bank will recognize loss allowances at an
          Bank akan mengakui cadangan kerugian sejumlah                        amount equal to lifetime ECLs, except in the
          lifetime ECL, kecuali dalam kondisi berikut, dimana                  following cases, for which the amount recognized
          cadangan kerugian sejumlah ECL 12 bulan yang                         will be 12-month ECLs:
          akan diakui:
          - Instrumen keuangan dengan risiko kredit rendah                     - The financial instruments with low credit risk
            atau ekuivalen dengan tingkat risiko negara                          when its credit risk rating is equivalent to the
            Republik Indonesia; dan                                              sovereign risk rating of Republic of Indonesia;
                                                                                 and
          - Risiko kredit instrumen keuangan yang belum                        - Financial instruments for which credit risk has
            meningkat secara signifikan sejak pengakuan                          not   increased significantly since        initial
            awal.                                                                recognition.


                                                            29
Page 569
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)

 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.      INFORMATION OF MATERIAL                             ACCOUNTING
      (lanjutan)                                                           POLICIES (continued)

      m. Identifikasi  dan      pengukuran       kerugian                 m. Identification and measurement of impairment
         penurunan nilai (lanjutan)                                          losses (continued)
         Penurunan nilai aset keuangan (lanjutan)                               Impairment of financial assets (continued)
         Ketentuan-ketentuan penurunan nilai menurut                            The impairment requirements of PSAK 71 are
         PSAK 71 adalah kompleks dan memerlukan                                 complex and require management judgments,
         pertimbangan-pertimbangan,  estimasi-estimasi                          estimates and assumptions, particularly in the
         dan asumsi-asumsi manajemen, terutama untuk                            following areas:
         area-area berikut ini:
         - Evaluasi apakah risiko kredit dari suatu                             - Assessing whether the credit risk of an instrument
           instrumen telah meningkat secara signifikan                            has increased significantly since initial recognition;
           sejak pengakuan awal; dan                                              and
         - Memasukkan informasi yang bersifat forward                           - Incorporating forward-looking information into the
           looking dalam pengukuran ECL.                                          measurement of ECLs.
         Bank menganggap sekuritas investasi pemerintah                         The Bank considers an IDR denominated
         dalam mata uang Rupiah dan dana yang                                   government investment securities and funds placed
         ditempatkan pada Bank Indonesia memiliki risiko                        with Bank Indonesia are having low credit risk,
         kredit yang rendah, karena pokok dan bunga                             since the principal and interest of government bond
         investasi pemerintah tersebut dijamin oleh                             are guaranteed by the government and there is no
         pemerintah dan tidak ada kerugian yang pernah                          historical loss experience. The Bank does not apply
         terjadi. Bank tidak menerapkan pengecualian                            the low credit risk exemption to any other financial
         risiko kredit yang rendah untuk instrumen                              instruments.
         keuangan lainnya.
         ECL 12 bulan adalah bagian dari ECL yang                               12-month ECL is the portion of ECL resulted from
         dihasilkan dari kejadian gagal bayar pada                              default events on a financial instrument that are
         instrumen keuangan yang mungkin terjadi dalam                          possible within the 12 months after the reporting
         12 bulan setelah tanggal pelaporan. Instrumen                          date. Financial instruments for which a 12-month
         keuangan yang diakui dari ECL 12 bulan disebut                         ECL is recognized are referred to as “Stage 1
         sebagai “instrumen keuangan tahap 1”.                                  financial instruments”.
         Kerugian kredit ekspektasian sepanjang umur                            Life-time ECL is the ECL resulted from all possible
         aset    keuangan      adalah   kerugian    kredit                      default events over the expected life of the financial
         ekspektasian yang dihasilkan dari semua kejadian                       instrument. Financial instruments for which a
         gagal bayar yang mungkin terjadi selama                                lifetime ECL is recognized but which are not credit-
         perkiraan umur instrumen keuangan. Instrumen                           impaired are referred to as “Stage 2 financial
         keuangan yang diakui dari kerugian kredit                              instruments”.
         ekspektasian sepanjang umur aset keuangan
         tetapi tidak mengalami penurunan nilai kredit
         disebut sebagai “instrumen keuangan tahap 2”.
         Pengukuran ECL                                                         Measurement of ECL
         ECL adalah estimasi kemungkinan kerugian                               ECL is a probability-weighted estimate of credit
         kredit berdasarkan probabilitas tertimbang. ECL                        losses. It is measured as follows:
         diukur sebagai berikut:
          - Aset keuangan yang tidak             mengalami                      - Financial assets that are not credit-impaired at the
            penurunan nilai pada tanggal pelaporan:                               reporting date: as the present value of all cash
            sebesar nilai kini dari seluruh kekurangan kas                        shortfalls (i.e. the difference between the cash
            (yaitu perbedaan antara arus kas terutang                             flows due to the entity in accordance with the
            sesuai dengan kontrak dan arus kas yang                               contract and the cash flows that the Bank expects
            diperkirakan akan diterima oleh Bank);                                to receive);
          - Aset keuangan yang mengalami penurunan nilai                        - Financial assets that are credit-impaired at the
            kredit pada tanggal pelaporan: sebagai                                reporting date: as the difference between the
            perbedaan antara nilai tercatat bruto dan nilai                       gross carrying amount and the present value of
            kini dari estimasi arus kas masa depan;                               estimated future cash flows;



                                                              30
Page 570
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.    INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                            POLICIES (continued)
       m.   Identifikasi  dan      pengukuran         kerugian                m. Identification  and      measurement                           of
            penurunan nilai (lanjutan)                                           impairment losses (continued)
            Pengukuran ECL (lanjutan)                                              Measurement of ECL (continued)

            ECL adalah estimasi kemungkinan kerugian kredit                        ECL is a probability-weighted estimate of credit
            berdasarkan probabilitas tertimbang. ECL diukur                        losses. It is measured as follows (continued):
            sebagai berikut (lanjutan):
            - Komitmen pinjaman yang belum ditarik: sebagai                         - Undrawn loan commitments: as the present
              nilai kini dari selisih antara arus kas kontraktual                     value of the difference between the contractual
              terutang kepada Bank jika komitmen direalisasi                          cash flows that are due to the Bank if the
              menjadi pinjaman dan arus kas yang                                      commitment is drawn-down and the cash flows
              diperkirakan akan diterima oleh Bank; dan                               that the Bank expects to receive; and
            - Kontrak jaminan keuangan: pembayaran yang                             - Financial guarantee contracts: the expected
              diperkirakan       akan      dibayarkan    kepada                       payments to reimburse the holder less any
              pemegang kontrak jaminan keuangan dikurangi                             amounts that the Bank expects to recover.
              jumlah yang diperkirakan dapat dipulihkan oleh
              Bank.
            Aset keuangan yang mengalami penurunan nilai                           Credit impaired financial assets
            kredit

            Pada setiap tanggal pelaporan, Bank menilai                            At each reporting date, the Bank assesses
            apakah aset keuangan yang dicatat pada biaya                           whether financial assets carried at amortized
            perolehan diamortisasi dan aset keuangan dalam                         cost and debt financial assets carried at FVOCI
            bentuk efek utang yang dicatat pada FVOCI                              are credit-impaired (referred to as “Stage 3
            mengalami penurunan nilai kredit (disebut                              financial assets”). A financial asset is “credit-
            sebagai “aset keuangan tahap 3”). Aset keuangan                        impaired” when one or more events that have a
            mengalami penurunan nilai ketika satu atau lebih                       detrimental impact on the estimated future cash
            peristiwa yang memiliki dampak buruk pada                              flows of the financial asset have occurred.
            perkiraan arus kas masa depan dari aset
            keuangan telah terjadi.

            Berikut adalah rangkuman data yang dapat                               Evidence that a financial asset is credit-impaired
            diobservasi sebagai bukti bahwa aset keuangan                          includes the following observable data:
            mengalami penurunan nilai:
            - Kesulitan keuangan yang signifikan dari debitur                       - Significant financial difficulty of the borrower or
              atau penerbit;                                                          issuer;
            - Pelanggaran kontrak seperti gagal bayar atau                          - A breach of contract such as a default or past
              tunggakan;                                                              due event;
            - Restrukturisasi pinjaman oleh Bank dengan                             - The restructuring of loan by the Bank on terms
              ketentuan yang Bank tidak akan pertimbangkan                            that the Bank would not consider otherwise;
              sebelumnya;
            - Kemungkinan      bahwa      peminjam      akan                        - It is becoming probable that the borrower will
              mengalami kebangkrutan atau reorganisasi                                enter     bankruptcy     or   other       financial
              keuangan lainnya; atau                                                  reorganization; or
            - Hilangnya dari pasar aktif suatu efek                                 - The disappearance of an active market for a
              dikarenakan kesulitan keuangan.                                         securities because of financial difficulties.
            Pinjaman yang telah dinegosiasikan ulang karena                        A loan that has been renegotiated due to a
            memburuknya kondisi           peminjam    biasanya                     deterioration in the borrower’s condition is
            dianggap mengalami penurunan nilai kredit,                             usually considered to be credit-impaired, unless
            kecuali ada bukti bahwa risiko tidak menerima                          there is evidences that the risk of not receiving
            arus kas kontraktual berkurang secara signifikan                       contractual cash flows has reduced significantly
            dan tidak ada indikator penurunan nilai lainnya.                       and there are no other indicators of impairment.
            Selain itu, pinjaman ritel yang jatuh tempo selama                     In addition, a retail loan that is overdue for 90
            90 hari atau lebih dianggap mengalami penurunan                        days or more is considered credit-impaired even
            nilai kredit meskipun definisi gagal bayar menurut                     when the regulatory definition of default is
            peraturan berbeda.                                                     different.

                                                               31
Page 571
                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                    (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.      INFORMATION     OF                MATERIAL           ACCOUNTING
      (lanjutan)                                                              POLICIES (continued)

      m. Identifikasi  dan      pengukuran          kerugian                 m. Identification and measurement of impairment
         penurunan nilai (lanjutan)                                             losses (continued)

         Penyajian cadangan ECL dalam laporan posisi                               Presentation of allowance for ECL in the statement
         keuangan                                                                  of financial position

         Cadangan kerugian untuk ECL disajikan dalam                               Loss allowances for ECL are presented in the
         laporan posisi keuangan sebagai berikut ini:                              statement of financial position as follows:

          - Aset keuangan diukur pada biaya perolehan                              - Financial assets measured at amortized cost: as a
            diamortisasi: sebagai pengurang dari nilai                               deduction from the gross carrying amount of the
            tercatat bruto aset;                                                     assets;
          - Komitmen pinjaman dan kontrak jaminan                                  - Loan commitments and financial guarantee
            keuangan: umumnya, sebagai provisi;                                      contracts: generally, as a provision;
          - Jika instrumen keuangan mencakup komponen                              - Where a financial instrument includes both a
            yang telah ditarik dan yang belum ditarik, dan                           drawn and an undrawn component, and the Bank
            Bank tidak dapat mengidentifikasi ECL pada                               cannot identify the ECL on the loan commitment
            komponen komitmen pinjaman secara terpisah                               component separately from those on the drawn
            dari komponen yang telah ditarik: Bank                                   component: the Bank presents a combined loss
            menyajikan cadangan kerugian gabungan untuk                              allowance for both components. The combined
            kedua komponen. Jumlah gabungan cadangan                                 amount is presented as a deduction from the
            kerugian disajikan sebagai pengurang dari nilai                          gross carrying amount of the drawn component.
            tercatat bruto komponen yang telah ditarik.                              Any excess of the loss allowance over the gross
            Kelebihan dari cadangan kerugian atas nilai                              carrying amount of the drawn component is
            tercatat komponen yang telah ditarik disajikan                           presented as a provision; and
            sebagai provisi; dan
          - Instrumen utang diukur pada FVOCI: tidak ada                           - Debt instruments measured at FVOCI: no loss
            cadangan kerugian diakui sebagai pengurang                               allowance is recognized as deduction to the
            nilai tercatat aset keuangan karena nilai tercatat                       carrying amount of the financial asset due to the
            dari aset-aset ini adalah pada nilai wajar.                              carrying amount of these assets is their fair value.
            Namun, cadangan kerugian kredit diakui                                   However, the credit loss allowance is recognized
            sebagai bagian dari cadangan nilai wajar dalam                           as part of fair value reserve in other
            penghasilan komprehensif lain.                                           comprehensive income.

         Penghapusan                                                               Write-off

         Pinjaman dan efek utang dihapuskan (baik                                  Loans and debt securities are written off (either
         sebagian atau seluruhnya) ketika tidak ada                                partially or in full) when there is no reasonable
         harapan yang wajar untuk memulihkan aset                                  expectation of recovering a financial asset in its
         keuangan secara keseluruhan atau sebagian. Hal                            entirety or a portion thereof. This is generally the
         ini biasanya terjadi ketika Bank memastikan                               case when the Bank determines that the borrower
         bahwa debitur tidak memiliki aset atau sumber                             does not have assets or sources of income that
         pendapatan yang dapat menghasilkan arus kas                               could generate sufficient cash flows to repay the
         yang cukup untuk membayar jumlah pinjaman                                 amounts subject to the write-off. This assessment is
         yang akan dihapusbukukan. Penilaian ini                                   carried out at the individual asset level.
         dilakukan pada tingkat aset individu.

         Pemulihan    atas      jumlah   pinjaman     yang                         Recoveries of amounts previously written-off are
         sebelumnya dihapusbukukan termasuk dalam                                  included in “other income” in the statement of profit
         ”pendapatan lain-lain” dalam laporan laba rugi dan                        or loss and other comprehensive income.
         penghasilan komprehensif lain.

         Aset keuangan yang dihapusbukukan masih                                   Financial assets that are written-off could still be
         diusahakan penagihannya sesuai prosedur Bank                              subject to enforcement activities in order to comply
         untuk pemulihan jumlah yang terutang.                                     with the Bank’s procedures for recovery of amounts
                                                                                   due.




                                                                 32
Page 572
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                           2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                              POLICIES (continued)

       m.   Identifikasi  dan      pengukuran          kerugian                m. Identification  and     measurement                            of
            penurunan nilai (lanjutan)                                            impairment losses (continued)

            Peningkatan risiko kredit secara signifikan                              Significant increase in credit risk

            Dalam PSAK 71, ketika menentukan apakah                                  Under PSAK 71, when determining whether the
            risiko kredit atas suatu instrumen keuangan telah                        credit risk of a financial instrument has
            meningkat secara signifikan sejak pengakuan                              increased significantly since initial recognition,
            awal, Bank akan mempertimbangkan informasi                               the Bank will consider reasonable and
            yang wajar dan terdukung yang relevan dan                                supportable information that is relevant and
            tersedia tanpa biaya atau upaya yang berlebihan,                         available without undue cost or effort, including
            termasuk informasi kuantitatif dan kualitatif dan                        both quantitative and qualitative information and
            analisa berdasarkan pengalaman masa lalu Bank,                           analysis based on the Bank historical
            penilaian kredit dan informasi yang bersifat                             experience, credit assessment and forward-
            forward-looking.                                                         looking information.

            Analisa apakah risiko kredit telah meningkat                             Assessing whether credit risk has increased
            secara signifikan sejak pengakuan awal instrumen                         significantly since initial recognition of financial
            keuangan memerlukan identifikasi tanggal                                 instrument requires identifying the date of initial
            pengakuan awal dari instrumen tersebut.                                  recognition of the instrument.

            Bank     telah    membentuk    kerangka     yang                         The Bank has established a framework that
            memasukkan informasi kuantitatif dan kualitatif                          incorporates both quantitative and qualitative
            untuk menentukan apakah risiko kredit dari suatu                         information to determine whether the credit risk
            instrumen keuangan telah meningkat secara                                on a financial instrument has increased
            signifikan sejak pengakuan awal. Kerangka ini                            significantly since initial recognition. The
            sejalan dengan internal proses manajemen risiko                          framework aligns with the Bank’s internal credit
            kredit Bank. Kriteria untuk menentukan apakah                            risk management process. The criteria for
            risiko kredit telah meningkat secara signifikan                          determining whether credit risk has increased
            akan bervariasi berdasarkan portofolio.                                  significantly will vary by portfolio.

            Sebagai batas, sesuai dengan yang disyaratkan                            As a limit, and as required by PSAK 71, the
            oleh PSAK 71, Bank menentukan kenaikan risiko                            Bank consider that a significant increase in
            kredit secara signifikan pada portofolio ritel terjadi                   credit risk of retail portfolio occurs when an
            pada saat aset telah tertunggak lebih dari 30 hari.                      asset is more than 30 days past due.

            Input yang digunakan untuk pengukuran ECL                                Input into measurement of ECLs

            Input utama yang digunakan untuk pengukuran                              The key inputs into the measurement of ECLs
            ECL adalah variabel berikut:                                             are the following variables:

            - Probability of Default (PD);                                            - Probability of Default (PD);
            - Loss Given Default (LGD); dan                                           - Loss Given Default (LGD); and
            - Exposure At Default (EAD).                                              - Exposure At Default (EAD).

            Peringkat risiko kredit akan menjadi masukan                             Credit risk grades will be a primary input into the
            utama untuk menentukan PD atas eksposur. Bank                            determination of the term structure of PD for
            akan menggunakan model statistik untuk                                   exposures. The Bank will employ statistical
            menganalisa data yang telah dikumpulkan dan                              models to analyze the data collected and
            menghasilkan estimasi PD sepanjang sisa umur                             generate estimates of the remaining lifetime PD
            dari eskposur dan bagaimana perubahan                                    of exposures and how these are expected to
            ekspektasian akan terjadi dalam suatu kurun                              change as a result of the passage of time. This
            waktu. Analisa ini akan termasuk identifikasi dan                        analysis will include the identification and
            kalibrasi atas hubungan antara perubahan tingkat                         calibration of relationships between changes in
            gagal bayar dan perubahan faktor utama makro                             default rates and changes in key macro-
            ekonomi, sebagai contohnya: tingkat inflasi,                             economic factors, for example: CPI inflation,
            pertumbuhan Produk Domestik Bruto (PDB), suku                            real Gross Domestic Products (GDP) growth,
            bunga acuan dan tingkat pengangguran.                                    benchmark interest rates and unemployment
                                                                                     rate.

                                                                33
Page 573
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.      INFORMATION     OF                MATERIAL           ACCOUNTING
      (lanjutan)                                                           POLICIES (continued)
      m. Identifikasi  dan      pengukuran         kerugian               m. Identification and measurement of impairment
         penurunan nilai (lanjutan)                                          losses (continued)
         Input yang digunakan untuk pengukuran ECL                              Input into measurement of ECLs (continued)
         (lanjutan)
         Konsep dari LGD adalah menggabungkan semua                             The concept of LGD is incorporating all recoveries
         pemulihan dari proses penagihan yang telah                             from a completed collection process into loss rate
         selesai    menjadi    tingkat  kerugian    yang                        which would reflect the collection cost and the time
         mencerminkan biaya penagihan dan nilai waktu                           value on loss rate. The data of recoveries are
         atas tingkat kerugian. Data pemulihan yang                             collected based on recoveries received by the Bank
         dikumpulkan adalah jumlah pemulihan yang                               from the non-performing loan account that has been
         diterima oleh Bank dari akun non-performing loan                       written-off or fully repaid/settled.
         yang telah dihapusbukukan atau telah lunas
         dibayar/diselesaikan.
         EAD merupakan eksposur ekspektasian pada                               EAD represents the expected exposure in the event
         saat terjadi gagal bayar. Bank akan mendapatkan                        of a default. The Bank will derive the EAD from the
         nilai EAD berdasarkan eksposur terhadap pihak                          current exposure to the counterparty and potential
         lawan saat ini dan kemungkinan perubahan                               changes to the current amount allowed under the
         terhadap eksposur saat ini berdasarkan kontrak,                        contract, including amortization, and prepayments.
         termasuk amortisasi dan pelunasan dipercepat.                          The EAD of a financial asset will be the gross
         EAD dari aset keuangan adalah nilai tercatat                           carrying amount at default. For lending commitments
         bruto saat gagal bayar. Untuk komitmen pinjaman                        and financial guarantees, the EAD will consider the
         dan kontrak jaminan keuangan, nilai EAD akan                           amount drawn, as well as potential future amounts
         mempertimbangkan jumlah yang telah ditarik, dan                        that may be drawn or repaid under the contract.
         potensial jumlah yang akan ditarik di masa depan
         atau dibayarkan sesuai dengan kontrak.
         Penurunan nilai atas aset non-produktif                                Impairment of non-productive assets
         Penyesuaian atas penyisihan penghapusan aset                           Adjustments to the allowance for losses on non-
         non-produktif dicatat dalam periode dimana                             productive assets are reported in the year that such
         penyesuaian tersebut diketahui atau dapat ditaksir                     adjustments become known or can be reasonably
         secara wajar. Termasuk di dalam penyesuaian ini                        estimated. These adjustments include additional
         adalah penambahan penyisihan penghapusan                               allowance for losses as well as recoveries of
         aset non-produktif maupun pemulihan aset non-                          previously written-off non-productive assets.
         produktif yang telah dihapusbukukan sebelumnya.
         Aset non-produktif dihapusbukukan dengan                               Non-productive assets are written-off against the
         mengurangi penyisihan penghapusan yang                                 respective allowance for losses when management
         bersangkutan apabila menurut manajemen aset                            believes that the recoverability of those assets is
         tersebut tidak mungkin dipulihkan lagi.                                unlikely.
         Penyisihan kerugian aset produktif dan aset non-                       Allowance for possible losses of earning assets and
         produktif - produk perbankan Syariah                                   non-earning assets - Sharia banking product
         Unit Usaha Syariah membentuk penyisihan                                The Sharia Business Unit has provided the
         kerugian atas aset produktif dan aset non-                             allowance for possible losses on earning assets and
         produktif berdasarkan penelaahan manajemen                             non-earning assets based on management’s review
         terhadap kualitas aset produktif dan aset non-                         of the quality of these earning assets and non-
         produktif tersebut pada tiap akhir tahun, evaluasi                     earning assets at the end of each year, and
         manajemen atas prospek usaha, kinerja                                  management evaluation of every debtor’s business
         keuangan dan kemampuan membayar setiap                                 prospect, financial performance and repayment
         debitur. Serta mempertimbangkan juga hal-hal                           ability. Moreover, the allowance also considers other
         lain seperti klasifikasi berdasarkan hasil                             things such as classification based on Financial
         pemeriksaan Otoritas Jasa Keuangan, klasifikasi                        Services Authority audit results, classification
         yang ditetapkan oleh bank umum lainnya atas                            determined by either commercial banks on earning
         aset produktif yang diberikan oleh lebih dari satu                     assets provided by more than one bank (SLIK
         bank (SLIK checking) dan ketersediaan laporan                          checking) and availability of debtor’s audited
         keuangan debitur yang telah diaudit.                                   financial statements.


                                                              34
Page 574
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                         2.     INFORMATION OF MATERIAL ACCOUNTING
       (lanjutan)                                                            POLICIES (continued)
       m. Identifikasi       dan    pengukuran       kerugian                m. Identification       and       measurement       of
            penurunan nilai (lanjutan)                                           impairment losses (continued)
            Penyisihan kerugian aset produktif dan aset non-                     Allowance for possible losses of earning assets
            produktif - produk perbankan Syariah (lanjutan)                      and non-earning assets - Sharia banking
                                                                                 product (continued)
            Untuk tujuan evaluasi penurunan nilai kolektif atas                  For the purpose of evaluating the collective
            piutang dan pembiayaan yang diberikan                                impairment on receivables and financing, as
            sebagaimana diwajibkan oleh Bank Indonesia                           required by Bank Indonesia based on Circular
            sesuai dengan Surat Edaran Bank Indonesia                            Letter Bank Indonesia No.15/26/DPbS dated
            No.15/26/DPbS tanggal 10 Juli 2013, PSAK 102                         July 10, 2013, PSAK 102 (revised 2013) and
            (revisi 2013) dan Surat Otoritas Jasa Keuangan                       Financial Services Authority’s letter No.S-
            (OJK)      No.S-159/PB.13/2014    tertanggal      3                  159/PB.13/2014 dated December 3, 2014,
            Desember 2014, perihal tanggapan atas usulan                         concerning the respond of ASBISINDO’s
            ASBISINDO, untuk penerapan pertama kali PSAK                         proposal, in adopting of PSAK 102 (revised
            102 (revisi 2013) dan PAPSI 2013. Bank                               2013) and PAPSI 2013. The Bank applies the
            menerapkan ketentuan transisi penurunan nilai                        transition rule for collective impairment with the
            secara kolektif dengan menggunakan estimasi                          calculation based on the applicable Bank
            yang didasarkan pada ketentuan Bank Indonesia                        Indonesia’s regulation on the Quality Rating of
            yang berlaku Penilaian Kualitas Aktiva Bank                          assets of Commercial Bank which conduct
            Umum yang Melaksanakan Kegiatan Usaha                                Business Based on Sharia Principles.
            Berdasarkan Prinsip Syariah.
            Dalam evaluasi penurunan nilai terhadap piutang                        The evaluation of impairment of murabahah
            murabahah dilakukan secara periodik pada setiap                        receivables is done periodically on every
            tanggal laporan keuangan, untuk memastikan                             financial statement date, to ensure methodology
            metodologi dan asumsi yang digunakan dapat                             and assumptions are reliable, and to reduce
            diandalkan, serta meminimalkan perbedaan                               difference between estimated losses amount
            antara estimasi jumlah kerugian dengan jumlah                          and actual losses amount.
            kerugian aktual.
            Penyisihan kerugian penurunan nilai secara                             Allowance for impairment losses is calculated
            individual dihitung dengan menggunakan metode                          individually by using discounted cash flows
            diskonto arus kas (discounted cash flows).                             method. Murabahah receivables that has been
            Piutang murabahah yang telah mengalami                                 impaired is recognized based on amount that
            penurunan nilai dicatat berdasarkan jumlah yang                        are discounted (discounted value) and not
            didiskonto (discounted value) dan bukan                                based on net book value, because the amount
            berdasarkan nilai buku, karena tidak akan dapat                        of murabahah receivables that had been given
            diperoleh kembali seluruh jumlah piutang                               to debtors are unable to be fully recovered. The
            murabahah yang telah diberikan kepada debitur.                         amount of discounted value is obtained by
            Jumlah yang didiskonto (discounted value)                              estimating the future cash flows (includes
            diperoleh dengan mengestimasi arus kas masa                            payment of principles and margin) that is
            datang (mencakup pembayaran pokok dan                                  discounted at effective margin.
            marjin) yang didiskonto menggunakan marjin
            efektif.
            Sedangkan penyisihan kerugian penurunan nilai                          Allowance for impairment losses on financial
            atas aset keuangan yang dinilai secara kolektif                        assets are collectively evaluated on the basis of
            berdasarkan pengalaman kerugian yang lalu                              historical loss experience. Historical loss
            (historical loss experience). Historical loss                          experience is adjusted on the basis of current
            experience disesuaikan menggunakan dasar data                          observable data to reflect the effects of current
            yang dapat diobservasi untuk mencerminkan efek                         conditions affecting the Bank and to remove the
            dari kondisi saat ini terhadap Bank dan                                past effects of conditions in the historical period
            menghilangkan efek dari masa lalu yang sudah                           that no longer valid.
            tidak berlaku saat ini.
            Bank menggunakan roll rate analysis method                             The Bank uses roll rate analysis method to
            untuk menilai penyisihan kerugian penurunan nilai                      assess the allowance for impairment losses.
            aset. Bank menggunakan data historis selama 3                          The Bank uses historical data in the 3 (three)
            (tiga) tahun dalam perhitungan Probability of                          years in calculating the Probability of Default
            Default (PD) dan menggunakan data historis                             (PD) and also using those 3 (three) years of
            selama 3 (tiga) tahun untuk Loss Given Default                         historical data to compute for the Loss Given
            (LGD).                                                                 Default (LGD).
                                                              35
Page 575
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                        2.      INFORMATION     OF                MATERIAL           ACCOUNTING
      (lanjutan)                                                            POLICIES (continued)

      m. Identifikasi  dan      pengukuran        kerugian                 m. Identification and measurement of impairment
         penurunan nilai (lanjutan)                                           losses (continued)

           Penyisihan kerugian aset produktif dan aset non-                      Allowance for possible losses of earning assets and
           produktif - produk perbankan Syariah (lanjutan)                       non-earning assets - Sharia banking product
                                                                                 (continued)

           Pengelompokan karakteristik risiko pembiayaan                         The classification characteristics of risk loan is
           digolongkan berdasarkan Bank Wide pembiayaan                          classified based on Bank Wide murabahah financing
           murabahah dan dilakukan evaluasi (loan review)                        and is evaluated every 1 (one) year.
           setiap 1 (satu) tahun sekali.

           Dalam menentukan penyisihan kerugian (selain                          In determining the allowance for losses (except
           piutang murabahah) dan peringkat kualitas aset,                       murabahah receivables) and asset quality rating, the
           Unit    Usaha    Syariah    menerapkan      PBI                       Sharia Business Unit applies PBI No.8/21/PBI/2006
           No.8/21/PBI/2006 tanggal 5 Oktober 2006 yang                          dated October 5, 2006 wherein certain articles have
           mana dalam pasal-pasal tertentu telah diubah                          been amended by PBI No.9/9/2007 dated November
           dengan PBI No.9/9/2007 tanggal 18 November                            18, 2007 and PBI No.10/24/PBI/2008 dated October
           2007 dan PBI No.10/24/PBI/2008 tanggal 16                             16, 2008 and No.13/13/PBI/2011 dated March 24,
           Oktober 2008 serta PBI No.13/13/PBI/2011                              2011 regarding Asset Quality Rating for Commercial
           tanggal 24 Maret 2011 tentang Penilaian Kualitas                      Banks Conducting Business Based on Sharia
           Aset Bank Umum yang melaksanakan Kegiatan                             Principles for determination of impairment losses.
           Usaha Berdasarkan Prinsip Syariah dalam
           menentukan kerugian penurunan nilai.

           Penyisihan kerugian minimum atas aset produktif                       Minimum allowance for possible losses on earning
           adalah sebagai berikut:                                               assets is as follows:

                                              Persentase minimum penyisihan kerugian/
                                        Minimum percentage of allowance for impairment losses
           Lancar *)                                          Minimum 1%                                                             Current *)
           Dalam perhatian khusus                             Minimum 5%                                                        Special mention
           Kurang lancar                                      Minimum 15%                                                         Sub-standard
           Diragukan                                          Minimum 50%                                                              Doubtful
           Macet                                                  100%                                                                    Loss

           *) Di luar Fasilitas Simpanan Bank Indonesia                          *) Excluding Deposit Facilities of Bank Indonesia
              Syariah, Sertifikat Bank Indonesia Syariah dan                        Sharia, Certificates of Bank Indonesia Sharia and
              surat berharga yang diterbitkan Pemerintah                            marketable securities sharia and earning assets
              berdasarkan prinsip syariah aset produktif                            secured by cash collateral.
              dengan agunan tunai.

           Penyisihan khusus terhadap kredit bermasalah                          Specific provisions for non-performing loans were
           dihitung berdasarkan kemampuan debitur dalam                          calculated based on the borrower's debt servicing
           membayar utang. Penyisihan khusus dibentuk                            capacity. Specific provisions were made as soon as
           ketika timbul keraguan akan kemampuan debitur                         the debt servicing of the loan is questionable and
           dalam membayar dan menurut pertimbangan                               management considers that the estimated recovery
           manajemen, estimasi jumlah yang akan diperoleh                        from the borrower was likely to fall short from the
           kembali dari debitur berada di bawah jumlah                           amount of principal and interest outstanding.
           pokok dan bunga kredit yang belum terbayar.

      n.   Biaya dibayar dimuka                                            n.    Prepaid expenses

           Biaya dibayar dimuka diamortisasi selama masa                         Prepaid expenses are amortized over the beneficial
           manfaat     masing-masing     biaya    dengan                         periods using the straight-line method.
           menggunakan metode garis lurus.




                                                               36
Page 576
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.      INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)
       o.   Aset tetap                                                      o.    Fixed assets
            Aset tetap, kecuali tanah, dicatat sebesar harga                      Fixed assets, except land, are recorded at cost
            perolehan dikurangi akumulasi penyusutan. Biaya                       less accumulated depreciation. Such cost
            perolehan termasuk biaya penggantian bagian                           includes the cost of replacing part of fixed
            aset tetap saat biaya tersebut terjadi, jika                          assets when that cost is incurred, if the
            memenuhi kriteria pengakuan. Selanjutnya, pada                        recognition criteria are met. Likewise, when a
            saat inspeksi yang signifikan dilakukan, biaya                        major inspection is performed, its cost is
            inspeksi itu diakui ke dalam jumlah tercatat                          recognized in the carrying amount of fixed
            (“carrying amount”) aset tetap sebagai suatu                          assets as a replacement if the recognition
            penggantian jika memenuhi kriteria pengakuan.                         criteria are satisfied. All other repairs and
            Semua biaya pemeliharaan dan perbaikan yang                           maintenance costs that do not meet the
            tidak memenuhi kriteria pengakuan diakui dalam                        recognition criteria are recognized in the
            laporan laba rugi dan penghasilan komprehensif                        statements of profit or loss and other
            lain pada saat terjadinya.                                            comprehensive income as incurred.

            Aset tetap kecuali tanah disusutkan dengan                            Fixed assets, except land are depreciated using
            menggunakan metode dan taksiran masa                                  the methods and over their estimated useful
            manfaat aset tetap sebagai berikut:                                   lives of fixed assets as follows:

                                                                         Taksiran masa manfaat/
                                                                          Estimated useful lives                  Tarif penyusutan/
               Jenis/ Classification           Metode/ Method                 Tahun/Years                         Depreciation rate
            Bangunan/ Buildings            Garis lurus/ Straight-line              20                                     5%
            Kendaraan/ Vehicles            Saldo menurun ganda/
                                           Double declining balance                     4-8                             25%-50%
            Peralatan kantor/              Saldo menurun ganda/
            Office equipment               Double declining balance                     4-8                             25%-50%

            Peralatan kantor terdiri dari perabotan dan                           Office equipment consists of furniture and
            perlengkapan, instalasi, perangkat lunak dan                          fixtures, installation, computer software and
            perangkat keras komputer, peralatan komunikasi                        hardware, communication and other office
            dan peralatan kantor lainnya.                                         equipment.

            Tanah awalnya dinyatakan berdasarkan harga                            Land initially stated at cost and is not
            perolehan dan tidak disusutkan. Setelah                               depreciated. After initial recognition, land is
            pengakuan awal, tanah diukur pada nilai wajar                         measured at fair value on the date of the
            pada tanggal revaluasi dikurangi akumulasi rugi                       revaluation less any accumulated impairment
            penurunan nilai setelah tanggal revaluasi.                            losses after the date of revaluation. Assessment
            Penilaian terhadap tanah dilakukan oleh penilai                       of the land is done by assessors who have
            yang memiliki kualifikasi profesional, dan                            professional qualifications, and are conducted
            dilakukan secara berkala untuk memastikan                             regularly to ensure that the carrying amount of
            bahwa jumlah tercatat tanah tidak berbeda secara                      land does not differ materially from the amount
            material dengan jumlah yang ditentukan dengan                         determined using fair value at the end of the
            menggunakan nilai wajarnya pada akhir periode                         reporting period (Note 15).
            pelaporan (Catatan 15).

            Kenaikan nilai tercatat yang timbul dari revaluasi                    The increase in the carrying amount arising
            dicatat sebagai “Surplus Revaluasi Aset Tetap”,                       from the revaluation is recorded as "Surplus
            dan disajikan dalam penghasilan komprehensif                          Revaluation of Fixed Assets", and are presented
            lain. Namun, kenaikan tersebut diakui dalam laba                      in other comprehensive income. However, the
            rugi hingga sebesar jumlah penurunan nilai aset                       increase is recognized in profit or loss up to the
            yang sama akibat revaluasi yang pernah                                amount of impairment of the similar assets due
            dilakukan    sebelumnya     dalam     laba    rugi.                   to revaluation that was done before in profit or
            Penurunan nilai tercatat yang timbul dari revaluasi                   loss. The decrease in the carrying amount
            diakui dalam laba rugi.                                               arising from the revaluation is recognized in
                                                                                  profit or loss.



                                                             37
Page 577
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.       INFORMATION     OF               MATERIAL           ACCOUNTING
      (lanjutan)                                                            POLICIES (continued)

      o.   Aset tetap (lanjutan)                                            o.   Fixed assets (continued)

           Jumlah     tercatat    aset     tetap dihentikan                      Carrying amount of fixed assets is derecognized
           pengakuannya pada saat dilepaskan atau saat                           upon disposal or when no future economic benefits
           tidak ada manfaat ekonomis masa depan yang                            are expected from its use or disposal. Any gain or
           diharapkan dari penggunaan atau pelepasannya.                         loss arising on derecognition of the asset
           Laba atau rugi yang timbul dari penghentian                           (calculated as the difference between the net
           pengakuan aset (dihitung sebagai perbedaan                            disposal proceeds and the carrying amount of the
           antara jumlah neto hasil pelepasan dan jumlah                         asset) is included in the statement of profit or loss
           tercatat dari aset) dimasukkan dalam laporan                          and other comprehensive income in the year the
           laba rugi dan penghasilan komprehensif lain                           asset is derecognized.
           pada     tahun      aset    tersebut  dihentikan
           pengakuannya.

           Aset tetap dievaluasi kemungkinan penurunan                           Fixed assets are reviewed for impairment when
           nilainya jika terjadi peristiwa atau perubahan                        events or changes in circumstances indicate that
           keadaan yang mengindikasikan bahwa nilai                              the carrying values may not be fully recoverable.
           tercatatnya tidak dapat seluruhnya dipulihkan.

           Pada setiap akhir tahun buku, nilai residu, umur                      At each financial year end, the assets’ residual
           manfaat dan metode penyusutan direview, dan                           values, useful lives and methods of depreciation
           jika sesuai dengan keadaan, disesuaikan secara                        are reviewed, and adjusted prospectively as
           prospektif. Pada saat inspeksi yang signifikan                        appropriate. When a significant inspection of the
           dilakukan, biaya inspeksi itu diakui ke dalam                         asset is performed, the cost of inspection is
           jumlah tercatat (carrying amount) aset tetap                          capitalized as part of the replacement cost of the
           sebagai suatu penggantian jika memenuhi                               asset’s carrying amount, if the criteria for
           kriteria pengakuan. Semua biaya pemeliharaan                          recognition are met. All maintenance and repair
           dan perbaikan yang tidak memenuhi kriteria                            costs which do not fulfill the capitalization criteria,
           pengakuan diakui dalam laporan laba rugi pada                         are recognized in profit or loss upon occurrence.
           saat terjadinya.

           Aset dalam penyelesaian dinyatakan sebesar                            Construction-in-progress is stated at cost. The
           harga perolehan. Akumulasi biaya perolehan                            accumulated cost will be reclassified to the
           akan dipindahkan ke masing-masing aset tetap                          appropriate fixed asset account when the
           pada saat pekerjaan selesai dan aset tersebut                         construction is completed and the asset is ready for
           siap untuk digunakan.                                                 its intended use.

           Semua biaya dan beban yang terjadi                                    All costs and expenses incurred in connection with
           sehubungan dengan perolehan hak atas tanah,                           the acquisition of land right, recognized as the
           diakui sebagai biaya perolehan hak atas tanah.                        acquisition cost of land right. The legal cost
           Biaya pengurusan legal hak atas tanah ketika                          occurred when the land was first acquired is
           tanah diperoleh pertama kali diakui sebagai                           recognized as part of the acquisition cost of land
           bagian dari biaya perolehan aset tanah. Biaya                         right. Extension or renewal of the maintenance cost
           pengurusan perpanjangan atau pembaruan legal                          of legal rights over land recognized as an intangible
           hak atas tanah diakui sebagai aset tak berwujud                       asset and amortized over the life of legal rights or
           dan diamortisasi sepanjang umur hukum hak                             economic life of the land, whichever is shorter.
           atau umur ekonomis tanah, mana yang lebih
           pendek.




                                                              38
Page 578
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                          POLICIES (continued)

       p.   Aset hak guna dan liabilitas sewa                              p.    Right of use assets and lease liabilities
            Pada tanggal permulaan kontrak, Bank menilai                         At the inception of a contract, the Bank
            apakah kontrak merupakan atau mengandung                             assesses whether the contract is or contains a
            sewa.     Suatu    kontrak    merupakan      atau                    leases. A contract is or contains a leases if the
            mengandung sewa jika kontrak tersebut                                contract conveys the right to control the use of
            memberikan      hak     untuk    mengendalikan                       an identified assets for a period of time in
            penggunaan aset identifikasian selama suatu                          exchange for consideration. The Bank can
            jangka waktu untuk dipertukarkan dengan                              choose not to recognise the right-of-use asset
            imbalan. Bank dapat memilih untuk tidak                              and lease liabilities for:
            mengakui aset hak-guna dan liabilitas sewa
            untuk:
               - Sewa jangka-pendek; dan                                            - Short term lease; and
               - Sewa yang aset pendasarnya bernilai rendah.                        - Low value asset.

            Untuk menilai apakah kontrak memberikan hak                          To assess whether a contract conveys the right
            untuk      mengendalikan     penggunaan    aset                      to control the use of an identified asset, the
            identifikasian, Bank harus menilai apakah:                           Bank shall assess whether:

              - Bank memiliki hak untuk mendapatkan secara                          - The Bank has the right to obtain
                substansial seluruh manfaat ekonomi dari                              substantially all the economic benefit from
                penggunaan aset identifikasian; dan                                   use of the asset throughout the period of
                                                                                      use; and
              - Bank memiliki hak untuk mengarahkan                                 - The Bank has the right to direct the use of
                penggunaan aset identifikasian. Bank memiliki                         the asset. The Bank has described when it
                hak ini ketika Bank memiliki hak untuk                                has a decision-making rights that are the
                pengambilan keputusan yang relevan tentang                            most relevant to changing how and for what
                bagaimana dan untuk tujuan apa aset                                   purpose     the     asset  is   used     are
                digunakan telah ditentukan sebelumnya:                                predetermined:

               a) Bank memiliki hak untuk mengoperasikan                              a) The Bank has the right to operate the
                  aset;                                                                  asset;
               b) Bank telah mendesain aset dengan cara                               b) The Bank has designed the asset in a way
                  menetapkan sebelumnya bagaimana dan                                    that predetermine how and for what
                  untuk tujuan apa aset akan digunakan                                   purpose it will be used.
                  selama periode penggunaan.

            Pada tanggal permulaan sewa, Bank mengakui                           The Bank recognises a right-of-use asset and a
            aset hak-guna dan liabilitas sewa. Aset hak-guna                     leases liability at the leases commencement
            diukur pada biaya perolehan, dimana meliputi                         date. The right-of-use asset is initially measured
            jumlah pengukuran awal liabilitas sewa yang                          at cost, which comprises the initial amount of
            disesuaikan dengan pembayaran sewa yang                              the leases liability adjusted for any leases
            dilakukan pada atau sebelum tanggal permulaan,                       payment made at or before the commencement
            ditambah dengan biaya langsung awal yang                             date, plus any initial direct cost incurred. For the
            dikeluarkan. Untuk pengukuran selanjutnya, aset                      subsequent measurements, the right of use
            hak guna dikurangi dengan akumulasi penyusutan                       assets less the accumulated depreciation, any
            dan kerugian penurunan nilai, serta disesuaikan                      accumulated impairment losses, and adjusted
            untuk setiap pengukuran kembali liabilitas sewa.                     for any remeasurement of lease liabilities. The
            Aset hak-guna diamortisasi dengan menggunakan                        right-of-use asset is amortised over the straight-
            metode garis lurus sepanjang jangka waktu sewa.                      line method throughout the lease term.




                                                            39
Page 579
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                    2.       INFORMATION     OF               MATERIAL           ACCOUNTING
      (lanjutan)                                                         POLICIES (continued)
       p.   Aset hak guna dan liabilitas sewa (lanjutan)                    p.    Right of use assets and lease liabilities
                                                                                  (continued)
            Liabilitas sewa diukur pada nilai kini pembayaran                     The lease liability is initially measured at the
            sewa yang belum dibayar pada tanggal                                  present value of the lease payments that are not
            permulaan, didiskontokan dengan menggunakan                           paid at the commencement date, discounted
            suku bunga implisit dalam sewa atau jika suku                         using the interest rate implicit in the lease or, if
            bunga tersebut tidak dapat ditentukan, maka                           that right cannot be readily determined, using
            menggunakan suku bunga pinjaman inkremental.                          incremental borrowing rate. Generally, the Bank
            Pada umumnya, Bank menggunakan suku bunga                             uses its incremental borrowing rate as a
            pinjaman inkremental sebagai tingkat bunga                            discount     rate.    For       the    subsequent
            diskonto. Untuk pengukuran selanjutnya, jumlah                        measurement, amount of lease liabilities
            liabilitas sewa ditingkatkan untuk mencerminkan                       increased to reflect the increasing of interest
            pertambahan bunga dan dikurangi pembayaran                            and reduced by the lease payments. In addition,
            sewa yang dilakukan. Selain itu, jumlah tercatat                      the carrying amount of lease liabilities
            liabilitas sewa diukur kembali jika terdapat                          remeasured if there is a modification, change in
            modifikasi, perubahan jangka waktu sewa,                              lease term, change of lease payment, or
            perubahan pembayaran sewa, atau perubahan                             changes in assessment of purchase option of
            dalam penilaian opsi untuk membeli aset                               the underlying asset.
            pendasar.
            Pembayaran sewa dialokasikan menjadi bagian                           Each leases payment is allocated between the
            pokok dan biaya keuangan. Biaya keuangan                              liability and finance cost. The finance cost is
            dibebankan pada laba rugi selama periode sewa                         charged to profit or loss over the leases period
            sehingga menghasilkan tingkat suku bunga                              so as to produce a constant periodic rate of
            periodik yang konstan atas saldo liabilitas untuk                     interest on the remaining balance of the liability
            setiap periode.                                                       for each period.


            Jika sewa mengalihkan kepemilikan aset                                If the leases transfers ownership of the
            pendasar kepada Bank pada akhir masa sewa                             underlying asset to the Bank by the end of the
            atau jika biaya perolehan aset hak-guna                               leases term or if the cost of the right-of-use
            merefleksikan Bank akan mengeksekusi opsi beli,                       asset reflects that the Bank will exercise a
            maka Bank menyusutkan aset hak-guna dari                              purchase option, the Bank depreciates the right-
            tanggal permulaan hingga akhir umur manfaat                           of-use asset from the commencement date to
            aset pendasar. Jika tidak, maka Bank                                  the end of the useful life of the underlying asset.
            menyusutkan aset hak-guna dari tanggal                                Otherwise, the Bank depreciates the right-of-
            permulaan hingga tanggal yang lebih awal antara                       use asset from the commencement date to the
            akhir umur manfaat aset hak-guna atau akhir                           earlier of the end of the useful life of the right-of-
            masa sewa.                                                            use asset or the end of the leases term.

            Modifikasi sewa                                                       Leases modification
            Bank mencatat modifikasi sewa sebagai sewa                            The Bank account for a leases modification as a
            terpisah jika:                                                        separate leases if both:
            - modifikasi meningkatkan ruang lingkup sewa                          - the modification increases the scope of the
                dengan      menambahkan       hak      untuk                         leases by adding the right to use one or
                menggunakan satu aset pendasar atau lebih;                           more underlying assets;
            - imbalan sewa meningkat sebesar jumlah yang                          - the consideration for the leases increases by
                setara dengan harga tersendiri untuk                                 an amount commensurate with the
                peningkatan dalam ruang lingkup dan                                  standalone price for the increase in scope
                penyesuaian yang tepat pada harga tersendiri                         and any appropriate adjustments to that
                tersebut untuk merefleksikan kondisi kontrak                         standalone price to reflect the circumstances
                tertentu.                                                            of the particular contract.




                                                           40
Page 580
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.     INFORMATION     OF               MATERIAL            ACCOUNTING
      (lanjutan)                                                          POLICIES (continued)

      q.   Liabilitas segera                                              q.        Obligations due immediately

           Liabilitas segera dicatat pada saat timbulnya                            Obligations due immediately are recorded at the
           liabilitas atau diterima perintah dari pemberi                           time the obligations occurred or on receipt of
           amanat, baik dari masyarakat maupun dari bank                            transfer orders from customers or other banks.
           lain. Liabilitas segera dinyatakan sebesar                               Obligations due immediately are stated at the
           liabilitas Bank dan diukur sebesar biaya                                 amount payable by the Bank measured at their
           perolehan diamortisasi.                                                  amortized cost.

      r.   Simpanan dari nasabah                                          r.        Deposits from customers

           Simpanan dari nasabah adalah dana yang                                   Deposits from customers are the funds placed
           ditempatkan oleh masyarakat kepada Bank                                  by customers (excluding banks) with the Bank
           berdasarkan perjanjian penyimpanan dana.                                 based on fund deposit agreements. Included in
           Termasuk dalam akun ini adalah giro, tabungan,                           this account are current accounts, saving
           deposito berjangka dan bentuk lain yang                                  accounts, time deposits and other forms which
           dipersamakan dengan itu.                                                 are similar.

           Giro merupakan simpanan dari nasabah yang                                Current accounts represent customers’ funds
           dapat digunakan sebagai alat pembayaran, yang                            which can be used as payment instruments, and
           penarikannya dapat dilakukan setiap saat melalui                         which can be withdrawn by the depositors at any
           cek, atau dengan cara pemindahbukuan dengan                              time through check writing, or transfers between
           bilyet giro dan sarana perintah pembayaran                               accounts using bilyet giro and other orders of
           lainnya.                                                                 payment or transfer.

           Tabungan merupakan simpanan dari nasabah                                 Savings deposits represent deposits of
           yang penarikannya hanya dapat dilakukan                                  customers that may only be withdrawn over the
           melalui counter dan kartu Anjungan Tunai                                 counter and via Automatic Teller Machine card
           Mandiri    (ATM),      atau    dengan    cara                            (ATM), or funds transfers when certain agreed
           pemindahbukuan jika memenuhi persyaratan                                 conditions are met, but which may not be
           yang disepakati, tetapi penarikan tidak dapat                            withdrawn by cheque or other equivalent
           dilaksanakan dengan menggunakan cek atau                                 instruments.
           instrumen setara lainnya.

           Deposito berjangka merupakan simpanan                                    Time deposits represent deposits from
           nasabah di Bank yang penarikannya hanya                                  customers with the Bank that may only be
           dapat dilakukan pada waktu tertentu sesuai                               withdrawn at specific maturities in accordance
           dengan perjanjian antara nasabah dengan Bank.                            with the agreements between the depositor and
                                                                                    the Bank.

           Deposito on call merupakan deposito dengan                               Deposits on call represent deposits with daily
           jangka waktu harian dan dapat ditarik sewaktu-                           maturity and could be withdrawn at any time.
           waktu.




                                                              41
Page 581
                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                     and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                   2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                      POLICIES (continued)

       r.   Simpanan dari nasabah (lanjutan)                           r.    Deposits from customers (continued)

            Simpanan nasabah diklasifikasikan sebagai                        Deposits from customers are classified as
            liabilitas keuangan dan diukur pada biaya                        financial liabilities and measured at amortized
            perolehan diamortisasi menggunakan suku bunga                    cost using the effective interest rate except for
            efektif, kecuali simpanan berdasarkan prinsip                    deposits under sharia principles that are stated
            syariah yang dinyatakan sebesar liabilitas Bank                  as the Bank’s liability to the customers.
            kepada nasabah. Biaya tambahan yang dapat                        Incremental costs that can be attributed directly
            diatribusikan secara langsung dengan perolehan                   to the acquisition of deposits from customers
            simpanan nasabah dikurangkan dari jumlah                         are deducted from total deposits received.
            simpanan yang diterima.

            Simpanan dari nasabah berdasarkan prinsip                        Deposits from customers under sharia principles
            syariah terdiri dari:                                            as follows:

            1) Simpanan syariah berupa giro wadiah yad-                      1)    Sharia deposits in the form of wadiah yad-
               adhamanah, yakni titipan dana dalam bentuk                          adhamanah, a current account whereby the
               giro yang akan mendapatkan bonus sesuai                             customers may receive bonus income in
               dengan kebijakan Bank; dan                                          accordance with the Bank’s policy; and
            2) Investasi tidak terikat syariah, berupa:                      2)    Sharia non-binding investments in the form
                                                                                   of:

                a) Tabungan mudharabah mutlaqah, yaitu                            a)    Mudharabah mutlaqah savings are non-
                   tabungan tidak terikat, dimana nasabah                               binding saving investments on which
                   akan memperoleh bagi hasil (nisbah)                                  the customers are entitled to receive a
                   atas penggunaan dana nasabah sesuai                                  share of the Bank’s Sharia Unit’s
                   dengan kesepakatan bersama antara                                    income (nisbah) in return for the usage
                   Bank dan nasabah; dan                                                of the funds in accordance with the
                                                                                        defined terms; and
                b) Deposito mudharabah mutlaqah, yaitu                            b)    Mudharabah mutlaqah deposits are
                   deposito tidak terikat sebagai investasi                             non-binding investments in the form of
                   berjangka,   dimana     nasabah    akan                              time deposits on which the customers
                   memperoleh bagi hasil (nisbah) atas                                  are entitled to receive a share of the
                   penggunaan dana nasabah sesuai                                       Bank’s Sharia Unit’s income (nisbah)
                   dengan kesepakatan bersama antara                                    for the usage of the funds in
                   Bank dan nasabah.                                                    accordance with the pre-defined terms.

       s.   Simpanan dari bank lain                                    s.    Deposits from other banks

            Simpanan dari bank lain terdiri dari liabilitas                  Deposits from other banks represent liabilities to
            terhadap bank lain, baik dalam maupun luar                       domestic and overseas banks, in the form of
            negeri, dalam bentuk giro, tabungan, deposito                    current accounts, savings, time deposits,
            berjangka, giro wadiah, tabungan mudharabah                      wadiah current accounts, mudharabah savings
            dan deposito berjangka mudharabah.                               and time deposits.
            Simpanan dari bank lain diklasifikasikan sebagai                 Deposits from other banks are classified as
            liabilitas keuangan dan diukur pada biaya                        financial liabilities and measured at amortized
            perolehan diamortisasi menggunakan suku                          cost using the effective interest rate except for
            bunga efektif, kecuali simpanan syariah yang                     sharia deposits which are stated at the Bank’s
            dinyatakan sebesar nilai liabilitas Bank kepada                  liability amount to the customer. Incremental
            nasabah.     Biaya    tambahan      yang   dapat                 costs that can be attributed directly to the
            diatribusikan secara langsung dengan perolehan                   acquisition of deposits from other banks are
            simpanan dari bank lain dikurangkan dari jumlah                  deducted from the total deposits received.
            simpanan yang diterima.




                                                           42
Page 582
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                        2.     INFORMATION OF MATERIAL                            ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)
       t.   Pinjaman yang diterima                                          t.        Borrowings
            Pinjaman diterima merupakan dana yang                                     Borrowings are funds received from Bank
            diterima dari Bank Indonesia atau pihak lain                              Indonesia or other parties with payment
            dengan liabilitas pembayaran kembali sesuai                               obligation based on borrowings agreement.
            dengan persyaratan perjanjian pinjaman.
            Pinjaman diterima diakui sebesar nilai wajar                              Borrowings are initially recognized at fair value
            pada awalnya dan selanjutnya diukur sebesar                               and subsequently measured at amortized cost
            biaya     perolehan     diamortisasi  dengan                              using the effective interest rate method.
            menggunakan metode suku bunga efektif.                                    Amortized cost is calculated by taking into
            Biaya perolehan diamortisasi dihitung dengan                              account any discount or premium related to the
            memperhitungkan adanya diskonto atau premi                                initial recognition of borrowings and transaction
            terkait dengan pengakuan awal pinjaman                                    costs are an integral part of the effective
            diterima dan biaya transaksi merupakan bagian                             interest rate method.
            tidak terpisahkan dari metode suku bunga
            efektif.
       u.   Dana syirkah temporer                                           u.        Temporary syirkah funds
            Dana syirkah temporer merupakan investasi                                 Temporary syirkah funds represent investment
            dengan akad mudharabah mutlaqah, yaitu                                    from other parties conducted on the basis
            pemilik dana memberikan kebebasan kepada                                  mudharabah mutlaqah contract in which the
            pengelola dana dalam pengelolaan investasinya                             owners of the funds grant freedom to the fund
            dengan     keuntungan    dibagikan     sesuai                             manager in the management of their
            kesepakatan. Dana syirkah temporer terdiri dari                           investments with profit distributed based on the
            giro mudharabah, tabungan mudharabah, dan                                 contract. Temporary syirkah funds consist of
            deposito mudharabah.                                                      mudharabah current account, mudharabah
                                                                                      saving deposits, and mudharabah time
                                                                                      deposits.
            Giro dan tabungan mudharabah merupakan                                    Mudharabah current accounts and saving
            investasi yang bisa ditarik kapan saja atau                               deposits represent investment which could be
            sesuai dengan persyaratan tertentu yang                                   withdrawn anytime or can be withdrawn based
            disepakati. Giro dan tabungan mudharabah                                  on certain agreed terms. Mudharabah current
            dinyatakan sebesar saldo tabungan nasabah di                              accounts and savings deposits are stated
            bank.                                                                     based on the customer’s savings deposits
                                                                                      balance in bank.
            Deposito mudharabah merupakan investasi                                   Mudharabah      time    deposits   represent
            yang hanya bisa ditarik pada waktu tertentu                               investment that can only be withdrawn at a
            sesuai dengan perjanjian antara pemegang                                  certain time based on the agreement between
            deposito mudharabah dengan bank. Deposito                                 the customer and the bank. Mudharabah time
            mudharabah dinyatakan sebesar nilai nominal                               deposits are stated at nominal amount as
            sesuai dengan perjanjian antara pemegang                                  agreed between the deposit holder and the
            deposito dengan bank.                                                     bank.
            Dana syirkah temporer tidak dapat digolongkan                             Temporary syirkah fund cannot be classified as
            dengan kewajiban. Hal ini karena bank tidak                               liability. This was because bank does not have
            berkewajiban untuk mengembalikan jumlah                                   any liability to return the initial fund to the
            dana awal dari pemilik dana kecuali akibat                                owners, except for losses due to bank
            kelalaian atau wanprestasi ketika mengalami                               management’s negligence or when default of
            kerugian. Di sisi lain dana syirkah temporer                              loss is incurred. On the other hand, temporary
            tidak dapat digolongkan sebagai ekuitas karena                            syirkah fund cannot be classified as
            mempunyai waktu jatuh tempo dan pemilik                                   shareholders’ equity, because of the maturity
            dana tidak mempunyai hak kepemilikan yang                                 period and the depositors do not have the
            sama dengan pemegang saham seperti hak                                    same rights as the shareholders’ such as
            voting dan hak atas realisasi keuntungan yang                             voting rights and the rights of realised gain
            berasal dari aset lancar dan aset non investasi.                          from current assets and other non-investmet
                                                                                      account.


                                                               43
Page 583
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


 2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                         POLICIES (continued)

       u. Dana syirkah temporer (lanjutan)                                u.     Temporary syirkah funds (continued)

           Pemilik dana syirkah temporer mendapatkan                             The owner of temporary syirkah funds receives
           imbalan bagi hasil sesuai dengan nisbah yang                          a return from the profit sharing based on
           ditetapkan.                                                           predetermined ratio.

           Hak nasabah atas bagi hasil dana syirkah temporer                     Third parties’ share on return of temporary
           merupakan bagian bagi hasil milik nasabah yang                        syirkah funds represents customer’s share on
           didasarkan pada prinsip mudharabah atas hasil                         the bank’s income derived from the
           pengelolaan dana mereka oleh bank. Pendapatan                         management of their funds by the bank under
           yang dibagikan adalah yang telah diterima (cash                       mudharabah principles. Income that will be
           basis).                                                               distributed is the cash received (cash basis)
                                                                                 from the share.

           Pembagian hasil usaha dilakukan berdasarkan                           The distribution of revenue is based on profit
           prinsip bagi hasil usaha yaitu dari pendapatan bank                   sharing scheme on the bank’s gross profit
           yang diterima berupa laba kotor (gross profit                         margin.
           margin).

           Pendapatan marjin dan bagi hasil atas pembiayaan                      Margin income and profit sharing on financing
           yang diberikan dan atas aset produktif lainnya akan                   facilities and other earning assets are
           dibagikan kepada nasabah penyimpan dana dan                           distributed to fund owners and the bank based
           bank sesuai dengan proporsi dana yang dipakai                         on proportion of fund used in the financing and
           dalam pembiayaan yang diberikan dan aset                              other earning assets. Margin income and profit
           produktif lainnya. Selanjutnya, pendapatan margin                     sharing income allocated to fund owners are
           dan bagi hasil yang tersedia untuk nasabah                            then distributed to fund owners and depositors
           tersebut kemudian dibagihasilkan ke nasabah                           as shahibul maal and the bank as mudharib
           penabung dan deposan sebagai shahibul maal dan                        based on a predetermined ratio (nisbah).
           bank sebagai mudharib sesuai porsi nisbah bagi                        Margin income and profit sharing from financing
           hasil yang telah disepakati bersama sebelumnya.                       facilities and other earning assets using the
           Pendapatan marjin dan bagi hasil dari pembiayaan                      bank’s funds, are entirely shared for the bank,
           dan aset produktif lainnya yang memakai dana                          including income from the bank’s fee-based
           bank, seluruhnya menjadi milik bank, termasuk                         transactions.
           pendapatan dari investasi bank berbasis imbalan.

       v. Pendapatan dan beban bunga                                      v.     Interest income and expenses

           Konvensional                                                          Conventional

           Pendapatan dan beban bunga diakui pada laporan                        Interest income and expenses are recognized in
           laba rugi dan penghasilan komprehensif lain                           the statement of profit or loss and other
           dengan menggunakan metode suku bunga efektif.                         comprehensive income using the effective
                                                                                 interest rate method.

           Suku bunga efektif adalah suku bunga yang secara                      The effective interest rate is the rate that exactly
           tepat mendiskontokan estimasi pembayaran atau                         discounts the estimated future cash payments
           penerimaan kas di masa datang selama perkiraan                        or receipts through the expected life of the
           umur dari aset keuangan atau liabilitas keuangan                      financial instrument (or, where appropriate, a
           (atau, jika lebih tepat, digunakan periode yang lebih                 shorter period) to the net carrying amount of the
           singkat) untuk memperoleh nilai tercatat neto dari                    financial asset or financial liability.
           aset keuangan atau liabilitas keuangan.




                                                              44
Page 584
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


 2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                          2.     INFORMATION OF MATERIAL ACCOUNTING
       (lanjutan)                                                             POLICIES (continued)
       v. Pendapatan dan beban bunga (lanjutan)                               v. Interest income and expenses (continued)
           Konvensional (lanjutan)                                                   Conventional (continued)
           Pada saat menghitung suku bunga efektif, Bank                             When calculating the effective interest rate, the
           mengestimasi arus kas di masa datang dengan                               Bank estimates future cash flows considering all
           mempertimbangkan          seluruh     persyaratan                         contractual terms of the financial instrument but
           kontraktual dalam instrumen keuangan tersebut,                            not future credit losses. This calculation reflects
           tetapi tidak mempertimbangkan kerugian kredit di                          all commissions, provisions, and other forms
           masa mendatang. Perhitungan ini mencakup                                  that accepted by the parties in the contract
           seluruh komisi, provisi, dan bentuk lain yang                             which are an integral part of the effective
           diterima oleh para pihak dalam kontrak yang                               interest rate, transaction costs, and all other
           merupakan bagian yang tidak terpisahkan dari suku                         premiums and discounts.
           bunga efektif, biaya transaksi, dan seluruh premi
           atau diskon lainnya.
           Jika aset keuangan atau kelompok aset keuangan                            If financial assets or similar financial asset
           serupa telah diturunkan nilainya sebagai akibat                           groups have been impaired as a consequence
           kerugian penurunan nilai, maka pendapatan bunga                           of a loss on impairment, then the interest
           yang diperoleh setelahnya diakui berdasarkan suku                         income subsequently received is recognized
           bunga yang digunakan untuk mendiskonto arus kas                           based on the interest rate used for discounting
           masa datang dalam menghitung kerugian                                     future cash flows in calculating the loss on
           penurunan nilai.                                                          impairment.
           Kredit yang pembayaran angsuran pokok atau                                Loans where the principal or interest has been
           bunganya telah lewat 90 hari atau lebih setelah                           past due for 90 days or more, or where
           jatuh tempo, atau kredit yang pembayarannya                               reasonable doubt exists as to the timely
           secara tepat waktu diragukan, secara umum                                 collection, are generally classified as impaired
           diklasifikasikan sebagai kredit yang mengalami                            loans.
           penurunan nilai.
           Syariah                                                                   Sharia
           Pendapatan operasi utama terdiri dari pendapatan                          The main operating income consists of income
           dari murabahah, pendapatan bagi hasil dari                                from murabahah transactions, income from
           pembiayaan mudharabah dan musyarakah dan                                  profit sharing of mudharabah and musyarakah
           pendapatan lainnya.                                                       financing and others.
           Pendapatan         atas      piutang       murabahah                      Income from murabahah receivables using the
           menggunakan metode setara tingkat imbal hasil                             effective rate of return method (effective
           efektif (margin efektif). Margin efektif adalah margin                    margin). Effective margin is the margin that
           yang secara tepat mendiskontokan estimasi                                 precisely discounts the estimated future cash
           pembayaran atau penerimaan kas di masa datang                             payments or receipts through the expected life
           selama perkiraan umur dari piutang murabahah.                             of the murabahah receivables. When calculating
           Pada saat menghitung margin efektif, Bank                                 the effective margin, Bank estimates the future
           mengestimasi arus kas di masa datang dengan                               cash flows considering all contractual terms of
           mempertimbangkan            seluruh        persyaratan                    the financial instrument, but does not consider
           kontraktual dalam instrumen keuangan tersebut,                            the loss of receivables in the future. This
           tetapi tidak mempertimbangkan kerugian piutang di                         calculation includes all commissions, provision
           masa mendatang. Perhitungan ini mencakup                                  fees and other forms accepted by the parties in
           seluruh komisi, provisi dan bentuk lain yang                              the contract that are an inseparable part of the
           diterima oleh para pihak dalam kontrak yang                               effective margin, transaction costs and all other
           merupakan bagian tak terpisahkan dari margin                              premiums or discounts.
           efektif, biaya transaksi, dan seluruh premi atau
           diskon lainnya.
           Bagi hasil dari pembiayaan mudharabah dan                                 Profit    sharing   from   mudharabah       and
           musyarakah diakui pada saat angsuran diterima                             musyarakah financing is recognized upon
           secara tunai (cash basis). Pendapatan operasi                             collection (cash basis). Other main operating
           utama lainnya terdiri dari pendapatan dari                                income consists of income derived from
           penempatan pada bank syariah lain. Pendapatan                             placements with other sharia banks. Other main
           operasi utama lainnya diakui pada saat diterima.                          operating income is recognized upon collection.


                                                               45
Page 585
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                       2.        INFORMATION OF MATERIAL                            ACCOUNTING
       (lanjutan)                                                             POLICIES (continued)

       v.   Pendapatan dan beban bunga (lanjutan)                             v. Interest income and expenses (continued)

            Syariah (lanjutan)                                                    Sharia (continued)

            Margin dan bagi hasil diakui secara akrual,                           Margin and profit sharing are recognized on an
            kecuali pendapatan margin dan bagi hasil atas                         accrual basis, except for margin and profit sharing
            kredit yang diberikan dan pembiayaan syariah                          income on loans and sharia financing and other
            dan aset produktif lainnya yang diklasifikasi                         earning assets classified as non-performing, which
            sebagai non-performing, yang diakui pada saat                         is recognized only when such interest is received in
            pendapatan tersebut diterima. Pendapatan                              cash. Margin and profit sharing income recognized
            margin dan bagi hasil yang telah diakui tetapi                        or recorded but not yet received, is reversed when
            belum tertagih dibatalkan pada saat kredit                            the loans are classified as non-performing, and the
            diklasifikasikan non-performing, dan selanjutnya                      interest amounts are recorded as contingent
            dilaporkan sebagai tagihan kontinjensi dalam                          receivables in the administrative accounts and
            rekening administratif dan diakui sebagai                             such interest is recognized as income on a cash
            pendapatan pada saat diterima tunai.                                  received basis.

       w.   Pendapatan - provisi dan komisi                                   w. Revenue - commissions and fees

            Pendapatan provisi dan komisi yang jumlahnya                          Significant fees and commission income directly
            signifikan yang berkaitan langsung dengan                             related to lending activities, or fees and
            kegiatan pinjaman, atau pendapatan provisi dan                        commission income which relate to a specific
            komisi yang berhubungan dengan jangka waktu                           period, are amortized over the term of the
            tertentu, diamortisasi sesuai dengan jangka                           underlying contract using the effective interest rate.
            waktu kontrak menggunakan suku bunga efektif.                         Unamortized fees and commission income relating
            Untuk pinjaman yang dilunasi sebelum jatuh                            to loans settled prior to maturity are recognized at
            temponya, saldo pendapatan provisi dan komisi                         the settlement date. Other fees and commission
            ditangguhkan diakui pada saat pinjaman dilunasi.                      income are recognized at the transaction date.
            Pendapatan provisi dan komisi lainnya diakui
            pada saat terjadinya transaksi.

            Pendapatan provisi dan komisi yang berkaitan                          Fees and commission income related to lending
            dengan kredit diakui sebagai bagian dari                              activities are recognized as part of interest income.
            pendapatan bunga. Untuk pembiayaan syariah,                           For sharia financing, fees and commissions are
            provisi dan komisi diakui selama jangka waktu                         recognized over the term of the contract with the
            akad dengan metode garis lurus.                                       straight-line method.

            Provisi dan komisi lainnya yang tidak berkaitan                       Other commissions and fees not related to lending
            dengan kegiatan perkreditan dan atau jangka                           activities or loan periods, or not material are
            waktu perkreditan, atau jumlahnya tidak material                      recognized as revenues and expenses at the time
            diakui sebagai pendapatan atau beban pada saat                        the transactions occur.
            terjadinya transaksi.

       x.   Pajak penghasilan badan                                           x. Corporate income tax

            Perlakuan akuntansi atas pajak penghasilan                            Accounting treatment for income tax is accordance
            sesuai dengan PSAK 46, “Pajak Penghasilan”.                           with PSAK 46, “Income Tax”.

            Beban pajak kini ditentukan berdasarkan laba                          Current tax expense is determined based on the
            kena pajak dalam periode yang bersangkutan                            taxable income for the year computed using the
            yang dihitung berdasarkan tarif pajak yang                            prevailing tax rates or substantively enacted at the
            berlaku atau yang secara substansial telah                            reporting date.
            berlaku pada tanggal pelaporan.




                                                               46
Page 586
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.      INFORMATION OF MATERIAL                         ACCOUNTING
        (lanjutan)                                                          POLICIES (continued)

       x.   Pajak penghasilan badan (lanjutam)                              x.    Corporate income tax (continued)

            Bank menerapkan metode liabilitas untuk                               The Bank applies the liability method to
            menentukan pajak penghasilannya. Berdasarkan                          determine its income tax expense. Under the
            metode liabilitas, aset dan liabilitas pajak                          liability method, deferred tax assets and
            tangguhan diakui atas perbedaan temporer                              liabilities are recognized for temporary
            pelaporan komersial dan pajak atas aset dan                           differences between the financial and the tax
            liabilitas pada setiap tanggal pelaporan. Metode                      bases of assets and liabilities at each reporting
            ini mensyaratkan pengakuan manfaat pajak di                           date. This method also requires the recognition
            masa mendatang, contoh: saldo rugi fiskal yang                        of future tax benefits, such as the carryforward
            belum        digunakan,    sepanjang      terdapat                    of unused tax losses, to the extent that
            kemungkinan besar realisasi manfaat pajak                             realization of such benefits is probable.
            tersebut.

            Aset dan liabilitas pajak tangguhan diukur                            Deferred tax assets and liabilities are measured
            berdasarkan tarif pajak yang diharapkan akan                          at the tax rates that are expected to apply to the
            berlaku pada tahun saat aset direalisasikan atau                      period when the asset is realized or the liability
            liabilitas diselesaikan berdasarkan tarif atau                        is settled, based on tax rates (and tax laws) that
            peraturan perpajakan yang berlaku atau yang                           have been enacted or substantively enacted at
            secara substantif telah diberlakukan pada tanggal                     the statement of financial position date.
            laporan posisi keuangan.

            Penyesuaian atas liabilitas pajak dicatat saat                        Adjustments to tax obligations are recorded
            surat ketetapan pajak diterima, atau jika Bank                        when an assessment is received or, if appealed
            mengajukan keberatan, saat putusan banding                            by the Bank, when the result of the appeal is
            telah diterbitkan.                                                    determined.

            Jumlah tercatat aset pajak tangguhan ditelaah                         The carrying amount of deferred tax assets is
            pada setiap tanggal pelaporan dan nilai tercatat                      reviewed at each reporting date and reduced to
            aset pajak tangguhan tersebut diturunkan apabila                      the extent that it is no longer probable that
            tidak lagi terdapat kemungkinan besar laba fiskal                     sufficient taxable profits will be available to
            tersedia untuk mengkompensasi sebagian atau                           allow all or part of the benefit of the deferred tax
            semua manfaat aset pajak tangguhan.                                   assets to be utilized.

       y.   Laba per saham                                                  y.    Basic earnings per share

            Laba per saham dasar dihitung dengan membagi                          Basic earnings per share are computed by
            laba tahun berjalan dengan jumlah rata-rata                           dividing income for the year by the weighted
            tertimbang saham yang beredar pada tahun yang                         average number of shares outstanding during
            bersangkutan.                                                         the year.

       z.   Program imbalan kerja                                           z.    Employee benefit plan

            Bank menerapkan PSAK 24 (revisi 2013),                                The Bank implement PSAK 24 (revised 2013),
            "Imbalan Kerja", efektif sejak 1 Januari 2015,                        "Employee benefit", effective January 1, 2015,
            menggantikan PSAK 24 (revisi 2010): "Imbalan                          change of PSAK 24 (revised 2010): "Employee
            Kerja". Dengan diterapkan PSAK 24 (revisi 2013),                      Benefit". The applied PSAK 24 (revised 2013),
            maka      Bank     menghentikan    penggunaan                         Bank which eliminates corridor approach in
            pendekatan     koridor    dalam     perhitungan                       calculation actuarial gain and loss in reporting
            keuntungan dan kerugian aktuarial di periode                          period other comprehensive income.
            pelaporan pada penghasilan komprehensif lain.




                                                            47
Page 587
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                         2.     INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                            POLICIES (continued)

       z.   Program imbalan kerja (lanjutan)                                 z.      Employee benefit plan (continued)

            Program imbalan pasti                                                    Defined benefits plans

            Imbalan kerja ditentukan berdasarkan peraturan                           The benefits are determined based on the
            Bank dan Undang-undang Cipta Kerja No.11                                 Bank’s regulations and Job Creation No.11
            tahun 2020 tanggal 2 November 2020.                                      year 2020 dated 2 November 2020. The
            Penyisihan untuk imbalan masa kerja diukur                               provision for employee service entitlements is
            berdasarkan        laporan     aktuaria.    Bank                         estimated on the basis of actuarial reports. The
            menggunakan metode penilaian aktuarial                                   Bank uses the projected unit credit method to
            projected unit credit untuk menentukan nilai kini                        determine the present value of benefits, current
            dari imbalan, biaya jasa kini dan biaya jasa lalu.                       service cost and past service cost. Actuarial
            Keuntungan dan kerugian aktuarial diakui                                 gains and losses are recognized as income or
            sebagai pendapatan atau beban apabila                                    expense      when       the    net    cumulative
            akumulasi keuntungan dan kerugian aktuarial                              unrecognized actuarial gains and losses at the
            bersih yang belum diakui untuk setiap program                            end of the previous reporting year exceed the
            pada akhir periode pelaporan sebelumnya                                  greater of 10% of the higher of the present
            melebihi jumlah yang lebih besar diantara 10%                            value of the defined benefits obligation (before
            dari nilai kini kewajiban imbalan pasti (sebelum                         deducting plan assets) or 10% of the fair value
            dikurangi aset program) pada tanggal tersebut                            of plan assets at that date. Such actuarial gains
            atau 10% dari nilai wajar aset program pada                              or losses are recognized as income or expense
            tanggal tersebut. Keuntungan atau kerugian                               on a straight-line basis over the expected
            aktuarial diakui sebagai pendapatan atau beban                           average remaining working lives of the
            berdasarkan metode garis lurus selama rata-rata                          employees.
            sisa masa kerja karyawan.

            Biaya jasa lalu yang terjadi ketika pengenalan                           Past-service costs arising from the introduction
            program imbalan pasti atau perubahan imbalan                             of a defined benefit plan or changes in the
            terutang pada program yang ada diamortisasi                              benefits payable of an existing plan are
            selama periode sampai dengan imbalan tersebut                            required to be amortized over the period until
            menjadi hak pekerja atau vested.                                         the benefits concerned become vested.

            Imbalan kerja jangka pendek                                              Short-term employee benefits

            Imbalan kerja jangka pendek seperti upah, iuran                          Short-term employee benefits such as wages,
            jaminan sosial, cuti jangka pendek, bonus dan                            social   security  contributions, short-term
            imbalan non-moneter lainnya diakui selama                                compensated leaves, bonuses and other non-
            periode jasa diberikan. Imbalan kerja jangka                             monetary benefits are recognized during the
            pendek diukur sebesar jumlah yang tidak                                  period when services have been rendered.
            didiskontokan.                                                           Short-term employee benefits are measured
                                                                                     using undiscounted amounts.

            Program pensiun manfaat pasti                                           Defined benefit pension plan

            Pada tahun 2019, Bank melakukan perubahan                               In 2019, the Bank has modified the Pension
            Peraturan Dana Pensiun sesuai dengan                                    Fund Policy in accordance with the decision of
            Keputusan Direksi PT Bank Pembangunan                                   the Directors of PT Bank Pembangunan
            Daerah Jawa Timur Tbk selaku pendiri Dana                               Daerah Jawa Timur Tbk as the founder of
            Pensiun Pegawai Bank Pembangunan Daerah                                 Dana Pensiun Pegawai Bank Pembangunan
            Jawa Timur No. 058/050.2/DIR/HCP/KEP tanggal                            Daerah                Jawa              Timur
            12 Maret 2019. Peraturan Dana Pensiun tersebut                          No.058/050.2/DIR/HPC/KEP dated on March
            telah mendapat pengesahan dari Dewan                                    12, 2019. The Pension Fund Policy was
            Komisaris Otoritas Jasa Keuangan No.Kep-                                approved by the decree of Indonesia Financial
            24/NB.1/2019 tanggal 14 Juni 2019.                                      Services    Authority   No.KEP-24/NB.1/2019
                                                                                    dated on June 14, 2019.




                                                                 48
Page 588
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.     INFORMATION OF MATERIAL                            ACCOUNTING
       (lanjutan)                                                         POLICIES (continued)

       z.    Program imbalan kerja (lanjutan)                                z.    Employee benefit plan (continued)
             Program pensiun manfaat pasti (lanjutan)                              Defined benefit pension plan (continued)

             Peraturan Dana Pensiun tersebut merubah                               The Policy superseded the decision of the
             Keputusan Direksi PT Bank Pembangunan                                 Directors of PT Bank Pembangunan Daerah
             Daerah Jawa Timur Tbk selaku pendiri Dana                             Jawa Timur Tbk as the founder of Dana
             Pensiun Pegawai Bank Pembangunan Daerah                               Pensiun Pegawai Bank Pembangunan Daerah
             Jawa Timur No.056/096/KEP/DIR/SK tanggal 22                           Jawa Timur No.056/096/KEP/DIR/SK dated on
             Mei 2017, yang telah mendapat pengesahan dari                         May 22, 2017, as approved by the decree of
             Dewan Komisaris Otoritas Jasa Keuangan                                Indonesia    Financial    Services    Authority
             No.KEP-56/NB.1/2017 tanggal 8 November 2017.                          No.KEP-56/NB.1/2017 dated November 8,
             Bank menyelenggarakan program pensiun                                 2017. The Policy applies to all employees who
             manfaat pasti untuk pegawai yang telah terdaftar                      are registered in Financial Institutions Fund
             di Dana Pensiun PT Bank Pembangunan Daerah                            Pension of PT Bank Pembangunan Daerah
             Jawa Timur Tbk serta telah diangkat menjadi                           Jawa Timur Tbk and has been appointed as
             pegawai tetap sampai dengan tanggal 24 Agustus                        permanent employee of the Bank before and
             2012. Kontribusi pegawai sebesar 5% dari                              on August 24, 2012. The contribution paid by
             penghasilan dasar pensiun pekerja dan atas sisa                       the employees is 5% of employees’ basic
             jumlah yang perlu didanakan kepada Dana                               pension salaries and the remaining amount is
             Pensiun merupakan kontribusi Bank.                                    paid by the Bank.
             Program pensiun iuran pasti                                           Defined contribution pension plan

             Sesuai dengan keputusan Direksi PT Bank                               In accordance with the decision of the Directors
             Pembangunan Daerah Jawa Timur Tbk                                     of PT Bank Pembangunan Daerah Jawa Timur
             No.050/067/KEP/DIR/SDM tanggal 20 April 2012,                         Tbk No.050/067/KEP/DIR/SDM dated April 20,
             Bank mengadakan perjanjian kerjasama dengan                           2012, the Bank entered into a cooperation
             Dana Pensiun Lembaga Keuangan (DPLK) Bank                             agreement with “Dana Pensiun Lembaga
             Rakyat Indonesia pada tanggal 23 April 2012                           Keuangan Bank Rakyat Indonesia“ dated April
             tentang pengelolaan program pensiun iuran pasti                       23, 2012 regarding defined contribution
             bagi pegawai Bank.                                                    pension plan for the Bank’s employees.

             Iuran kepada dana pensiun sebesar persentase                          Contribution payable to a pension fund
             tertentu dari gaji pegawai yang menjadi peserta                       equivalent to a certain percentage of salaries
             program pensiun iuran pasti Bank, dicadangkan                         for qualified employees under the Bank’s
             dan diakui sebagai biaya ketika jasa telah                            defined contribution plan is accrued and
             diberikan oleh pegawai-pegawai tersebut.                              recognized as expense when services have
                                                                                   been rendered by qualified employees.

            Program asuransi tunjangan hari tua                                   Pension insurance plan
            1) Keputusan       Direksi   No.KEP.079/BPD/83                        1) Directors’   decision    No.KEP.079/BPD/83
                tanggal 11 November 1983 dan perubahannya                            dated November 11, 1983 and its amendment
                No.KEP.006/BPD/85 tanggal 29 Januari 1985,                           No.KEP.006/BPD/85 dated January 29, 1985,
                Bank juga menyelenggarakan program                                   the Bank provides mutual aid pensions
                manfaat pasti dalam bentuk tunjangan hari tua                        (tunjangan hari tua) in the form of a Mutual
                melalui Program Asuransi Tunjangan Hari Tua                          Aid Pension Insurance Plan (Program
                untuk seluruh karyawan melalui perjanjian                            Asuransi Tunjangan Hari Tua) for all
                kerja sama yang diadakan pada tanggal 3                              employees through a cooperation agreement
                November 1993 dengan Asuransi Jiwa                                   dated November 3, 1993 with Asuransi Jiwa
                Bersama      Bumiputera      1912,    tentang                        Bersama Bumiputera 1912 for insurance
                Pengelolaan Program Asuransi Dwiguna                                 under a program Asuransi Dwiguna Standar
                Standar US$. Berdasarkan program ini, pada                           US$. Based on this program, at the
                saat mulai memasuki masa pensiun, selain                             commencement of the pension period, in
                tunjangan pensiun, karyawan juga akan                                addition to pension allowances, each
                memperoleh tunjangan hari tua yang besarnya                          employee will also receive a mutual aid
                bervariasi sesuai dengan jabatan terakhir dari                       pension (tunjangan hari tua) based on the
                karyawan.                                                            employee’s latest position.

                                                             49
Page 589
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)

  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.    INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                        POLICIES (continued)
       z.   Program imbalan kerja (lanjutan)                             z. Employee benefit plan (continued)
            Program asuransi tunjangan hari tua (lanjutan)                  Pension insurance plan (continued)
            1) Keputusan                                Direksi             1) Directors’                           decision
                No.046/042.1/KEP/DIR/SDM tanggal 3 Maret                       No.046/042.1/KEP/DIR/SDM dated March 3,
                2008, telah diamendemen dengan Keputusan                       2008 has been amended with Director’s
                Direksi           No.048/068.1/KEP/DIR/SDM                     decision No.048/068.1/KEP/DIR/SDM dated
                tertanggal 3 Mei 2010 yang menyatakan                          May 3, 2010, which stated that the pension
                besarnya tunjangan hari tua ditentukan sesuai                  allowance was determined based on the
                dengan jabatan dengan besaran dasar uang                       employees position with a basic insurance
                asuransi antara Rp22,5 sampai dengan                           value ranging from Rp22.5 to Rp200. The
                Rp200. Premi asuransi masing-masing                            insurance premiums for employees are paid
                peserta dibayar dimuka oleh Bank dan                           in advance by the Bank and are amortized
                diamortisasi selama sisa masa kerja                            over the remaining years of service of
                karyawan.                                                      employees.
                Sesuai      dengan     Keputusan        Direksi                Pursuant      with     Director’s    decision
                No.050/020/ADD/SP/DIR/SDM              tanggal                 No.050/020/ADD/SP/DIR/SDM dated March
                30 Maret 2012 terkait addendum atas                            30, 2012 about added for aggrement for
                perjanjian kerjasama pengelolaan program                       management insurance program pension with
                asuransi tunjangan hari tua dengan Asuransi                    Insurance    Jiwasraya     (Corporate)   was
                Jiwasraya bahwa disepakati adanya kenaikan                     acceptable increase premiums insurance.
                uang asuransi dan premi.
            2) Sesuai dengan persetujuan Dewan Komisaris                      2)   Pursuant to the Board of Commissioners’
                No.040/090/DK/BPD/02 tanggal 30 Desember                           decision    No.040/090/DK/BPD/02       dated
                2002, Bank juga menyelenggarakan program                           December 30, 2002, the Bank also provides
                manfaat pasti dalam bentuk tunjangan hari tua                      mutual aid pensions (tunjangan hari tua),
                melalui Program Asuransi Tunjangan Hari Tua                        through management of a Mutual Aid Pension
                untuk seluruh karyawan melalui perjanjian                          Insurance Plan (Program Asuransi Tunjangan
                kerja sama yang diadakan pada tanggal 31                           Hari Tua) for all employees under a
                Desember 2002 dengan PT Asuransi                                   cooperation agreement, dated December 31,
                Jiwasraya (Persero) tentang Pengelolaan                            2002 with PT Asuransi Jiwasraya (Persero)
                Program Asuransi Tunjangan Hari Tua.                               regarding Management of a Mutual Aid
                Berdasarkan program ini, pada saat mulai                           Pension Insurance Plan. Based on this plan,
                memasuki masa pensiun, selain tunjangan                            at the commencement of the pension period,
                pensiun, karyawan juga akan memperoleh                             in addition to a pension allowance,
                tunjangan hari tua yang besarnya disesuaikan                       employees will also receive mutual aid
                dengan masa kerja dan jumlah gaji terakhir.                        pensions (tunjangan hari tua) equal to the
                Premi asuransi masing-masing peserta                               number of years of service multiplied by the
                dibayar di muka oleh Bank dan diamortisasi                         employee’s latest monthly salary. The
                selama sisa masa kerja karyawan.                                   insurance premiums for employees are paid
                                                                                   in advance by the Bank and are amortized
                                                                                   over the remaining years of service of
                                                                                   employees.
            3) Sesuai dengan persetujuan melalui Keputusan                    3)   Pursuant to the the approval through the
               Direksi       No.KEP.061/03/29/DIR/HC/KEP                           Decree of the Board of Directors
               tanggal    18   Juli  2022,    Bank     juga                        No.KEP.061/03/29/DIR/HC/KEP dated July
               menyelenggarakan program manfaat pasti                              18, 2022, the Bank also organizes a defined
               dalam bentuk tunjangan hari tua melalui                             benefit program in the form of pension
               Program Asuransi Tunjangan Hari Tua untuk                           benefits through the pension Benefit
               seluruh karyawan melalui perjanjian kerja                           Insurance Program for all employees through
               sama yang diadakan pada tanggal 13 Juni                             a cooperation agreement held on June 13,
               2022 dengan PT Asuransi Jiwa Inhealth                               2022 with PT Asuransi Jiwa Inhealth
               Indonesia, tentang Pengelolaan Program                              Indonesia, regarding the Management of the
               Asuransi Dwiguna. Berdasarkan program ini,                          endowment Insurance Program. Based on
               pada saat mulai memasuki masa pensiun,                              this program, when entering retirement age,
               meninggal dunia, mengundurkan diri degan                            he dies, resigns with honor and resigns due
               hormat dan mengundurkan diri karena                                 to participating in the employee service
               mengikuti program pengakhiran bakti pegawai.                        termination program.



                                                              50
Page 590
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                        2.     INFORMATION OF MATERIAL                            ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)
       z.   Program imbalan kerja (lanjutan)                                z.    Employee benefit plan (continued)
            Program imbalan pasca kerja lainnya dan jangka                        Other post employee benefits program and long-
            panjang lainnya                                                       term employee benefits program
            Bank juga memberikan imbalan pasca kerja dan                         The Bank also provides post benefits program and
            jangka panjang lainnya, meliputi uang duka bagi                      long term benefit plan that includes death benefits
            pegawai yang meninggal dunia dan penghargaan                         to employees who has passed away and gratuity.
            masa kerja.
            Liabilitas dan pendanaan penghargaan masa                            Liabilities and employees gratuity funding is
            kerja dan uang duka dihitung aktuaris independen                     calculated by an independent actuary in projected
            dengan metode projected unit credit.                                 unit credit method.
            Jasa produksi                                                        Bonuses
            Bank juga memberikan jasa produksi tahunan                           The Bank also provides annual bonuses for
            kepada para Komisaris, Direksi dan karyawan dan                      Commissioners, Directors and employees. These
            untuk setiap tahun buku dicadangkan dan diakui                       costs are recognized as current year’s expenses
            sebagai beban pada tahun berjalan yang                               and the amount is determined based on the
            jumlahnya ditetapkan berdasarkan jumlah jasa                         bonuses authorized during Shareholders’ General
            produksi yang disetujui dalam RUPS tahun-tahun                       Meetings (RUPS) in the prior year. Such bonuses
            sebelumnya dan kemudian diusulkan untuk                              are subsequently proposed for approval by the
            disetujui/disahkan dalam RUPS yang akan                              Shareholders in the following Shareholders’
            datang. Jika terdapat selisih antara jumlah jasa                     General Meeting (RUPS). Any difference between
            produksi yang dicadangkan dengan jumlah yang                         the amount accrued and the amount approved by
            disahkan oleh RUPS, maka selisih tersebut                            the RUPS is charged/credited to statement of profit
            dibebankan/dikreditkan pada laporan laba rugi                        or loss and other comprehensive income as an
            dan penghasilan komprehensif lain sebagai                            addition to or deduction of the provision for
            penambah atau pengurang cadangan jasa                                bonuses.
            produksi.
            Program penghargaan akhir masa jabatan Dewan                         End of service awards program for the Boards of
            Komisaris dan Direksi                                                Commissioners and Directors
            Bank memberikan penghargaan akhir masa                               The Bank provides end of service awards program
            jabatan untuk Komisaris dan Direksi melalui                          for Commissioners and Directors through an
            program asuransi yang jumlahnya dihitung secara                      insurance program, which amount is calculated
            proporsional sesuai dengan masa jabatannya                           proportionally during the period of service in
            berdasarkan Surat Keputusan Dewan Komisaris                          accordance with a Decision Letter of the Bank’s
            dan Direksi No.046/04/SK/DK/BPD/2008, tanggal                        Boards     of   Commissioners    and     Directors
            30 April 2008 yang mengacu pada Akta Rapat                           No.046/04/SK/DK/BPD/2008, dated April 30, 2008
            Umum Pemegang Saham No.55, tanggal 17 April                          referred to the Minutes of Shareholders’ Meeting
            2008 yang dibuat oleh Notaris Untung                                 No. 55, dated April 17, 2008 prepared by Untung
            Darnosoewirjo, S.H., di Surabaya, akta RUPS                          Darnosoewirjo, S.H., public notary in Surabaya,
            No.28 tanggal 19 Mei 2009 yang dibuat oleh                           Minutes of Shareholders’ Meeting No.28, dated
            Notaris Untung Darnosoewirjo, S.H., di Surabaya                      May 19, 2009 prepared by Untung Darnosoewirjo,
            dan RUPS No.26 tanggal 14 April 2010 yang                            S.H., public notary in Surabaya, and Minutes of
            dibuat oleh Notaris Wachid Hasyim, S.H., di                          Shareholders’ Meeting No.26, dated April 14, 2010
            Surabaya.                                                            prepared by Wachid Hasyim, S.H., public notary in
                                                                                 Surabaya.
            Premi yang dibayar dibebankan pada laporan laba                      Premiums paid are charged proportionally to
            rugi dan penghasilan komprehensif lain selama                        statement of profit or loss and other comprehensive
            masa jabatannya secara proporsional.                                 income over the service period.




                                                               51
Page 591
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                    2.      INFORMATION OF MATERIAL                         ACCOUNTING
       (lanjutan)                                                        POLICIES (continued)

       aa. Biaya emisi saham                                             aa.        Shares issuance costs
            Biaya-biaya yang terjadi sehubungan dengan                              The cost related to the public offering of shares
            penawaran saham kepada masyarakat (termasuk                             (including pre-emptive rights issue) are
            penerbitan hak memesan efek terlebih dahulu)                            deducted from the proceeds and presented as a
            dikurangkan langsung dari hasil emisi dan                               deduction from the “Other Paid-In Capital - Net”
            disajikan sebagai pengurang pada akun                                   account, under Equity section in the statements
            “Tambahan Modal Disetor - Neto” sebagai bagian                          of financial position.
            dari ekuitas pada laporan posisi keuangan.
       ab. Dividen                                                       ab.        Dividend
            Pembagian dividen kepada para pemegang                                  Dividend distribution to the Bank’s shareholders
            saham Bank diakui sebagai sebuah liabilitas                             is recognized as a liability in the Bank financial
            dalam laporan keuangan Bank pada tahun ketika                           statements in the year in which the dividends
            dividen tersebut disetujui oleh para pemegang                           are approved by the Bank’s shareholders.
            saham Bank.
       ac. Provisi                                                       ac.        Provisions
            Provisi diakui jika Bank memiliki kewajiban kini                        Provisions are recognized when the Bank has a
            (baik bersifat hukum maupun bersifat konstruktif)                       present obligation (legal or constructive) where,
            yang akibat peristiwa masa lalu, besar                                  as a result of a past event, it is probable that an
            kemungkinannya         penyelesaian   kewajiban                         outflow of resources embodying economic
            tersebut mengakibatkan arus keluar sumber daya                          benefits will be required to settle the obligation
            yang mengandung manfaat ekonomi dan                                     and reliable estimate can be made of the
            estimasi yang andal mengenai jumlah kewajiban                           amount of obligation.
            tersebut dapat dibuat.
            Provisi ditelaah pada setiap tanggal pelaporan                          Provisions are reviewed at each reporting date
            dan disesuaikan untuk mencerminkan estimasi                             and adjusted to reflect the current best
            terbaik yang paling kini. Jika arus keluar sumber                       estimate. If it is no longer probable that an
            daya      untuk     menyelesaikan       kewajiban                       outflow of resources embodying economic
            kemungkinan besar tidak terjadi, maka provisi                           benefits will be required to settle the obligation,
            dibatalkan.                                                             the provision is reversed.
       ad. Liabilitas dan aset kontinjensi                               ad.        Contingent liabilities and assets
            Liabilitas kontinjensi tidak diakui dalam laporan                       Contingent liabilities are not recognized in the
            keuangan tetapi diungkapkan kecuali jika                                financial statements but are disclosed unless
            kemungkinan terjadi kecil. Aset kontinjensi tidak                       the possibility of an outflow of resources
            diakui namun diungkapkan dalam laporan                                  embodying economic benefits is remote.
            keuangan ketika adanya kemungkinan untuk                                Contingent assets are not recognized but are
            mendapatkan manfaat ekonomi.                                            disclosed in the financial statement when an
                                                                                    inflow of economic benefits are probable.
       ae. Informasi segmen                                              ae.        Segment information
            Bank menentukan dan menyajikan segmen                                   The Bank determines and presents operating
            operasi berdasarkan informasi yang secara                               segments based on the information that is
            internal diberikan oleh bagian akuntansi kepada                         internally provided by accounting department to
            pengambil keputusan operasional.                                        the operating decision maker.

            Bank mengidentifikasikan segmen          operasi                        The Bank defines an operating segment as a
            sebagai suatu komponen dari entitas:                                    component of an entity:
            1) yang terlibat dalam aktivitas bisnis yang                       1)     that engages in business activities from which
               mana    memperoleh        pendapatan   dan                             it may earn revenues and incur expenses
               menimbulkan beban (termasuk pendapatan                                 (including revenues and expenses relating to
               dan beban terkait dengan transaksi dengan                              transactions with other components of the
               komponen lain dari entitas yang sama);                                 same entity);




                                                            52
Page 592
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


  2.    INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                         2.   INFORMATION     OF                MATERIAL           ACCOUNTING
        (lanjutan)                                                          POLICIES (continued)

        ae. Informasi segmen (lanjutan)                                      ae. Segment information (continued)

             Bank mengidentifikasikan segmen operasi                              The Bank defines an operating segment as a
             sebagai suatu komponen dari entitas (lanjutan):                      component of an entity (continued):

             2)   hasil operasinya dikaji ulang secara reguler                  2)      whose operating results are reviewed regularly
                  oleh pengambil keputusan operasional untuk                            by the entity’s chief operating decision maker
                  membuat keputusan tentang sumber daya                                 to make decisions about resources to be
                  yang dialokasikan pada segmen tersebut                                allocated to the segment and assess its
                  dan menilai kinerjanya; dan                                           performance; and
             3)   tersedia informasi keuangan yang dapat                        3)      for which discrete financial information is
                  dipisahkan.                                                           available.

             Bank mengungkapkan segmen operasionalnya                             Bank discloses its operating segments based on
             berdasarkan segmen usaha yang meliputi                               business segments that consist of banking
             perbankan konvensional dan syariah.                                  conventional and sharia.

             Segmen geografis meliputi penyediaan jasa di                         A geographical segment is engaged in providing
             dalam lingkungan ekonomi tertentu yang                               services within a particular economic environment
             memiliki risiko serta tingkat pengembalian yang                      that is subject to risks and returns that are different
             berbeda dengan segmen operasi lainnya yang                           from those of segments operating in other
             berada dalam lingkungan ekonomi lain. Segmen                         economic environments. The Bank’s geographical
             geografis Bank adalah Jawa Timur dan selain                          segments are East Java and other than East Java.
             Jawa Timur.

       af.   Peristiwa setelah periode pelaporan                            af. Subsequent event

             Setiap peristiwa setelah akhir tahun yang                            Any post-year-end event that provides additional
             menyebabkan tambahan informasi mengenai                              information about the Bank’s financial position
             posisi keuangan Bank (adjusting event) akan                          (adjusting event) is reflected in the financial
             disesuaikan dalam laporan keuangan. Peristiwa                        statements. Post-year-end events that are not
             setelah akhir tahun yang bukan merupakan                             adjusting events, if any, are disclosed when
             adjusting events, jika ada, akan diungkapkan                         material to the financial statements.
             ketika memiliki dampak material terhadap
             laporan keuangan.

       ag.   Penggunaan estimasi        dan    pertimbangan                 ag. Use of significant accounting estimates and
             akuntansi signifikan                                               judgments

             Penyusunan        laporan     keuangan      Bank                     The preparation of the Bank’s financial statements
             mengharuskan manajemen untuk membuat                                 requires management to make judgments,
             pertimbangan, estimasi dan asumsi yang                               estimates and assumptions that affect the reported
             mempengaruhi jumlah yang dilaporkan dari                             amounts of revenues, expenses, assets and
             pendapatan, beban, aset dan liabilitas, dan                          liabilities, and the disclosure of contingent liabilities,
             pengungkapan atas liabilitas kontinjensi, pada                       at the end of the reporting period. Uncertainty about
             akhir     periode    pelaporan.    Ketidakpastian                    these assumptions and estimates could result in
             mengenai asumsi dan estimasi tersebut dapat                          outcomes that require a material adjustment to the
             mengakibatkan penyesuaian material terhadap                          carrying amount of the asset and liability affected in
             nilai tercatat aset dan liabilitas dalam periode                     future periods.
             pelaporan berikutnya.




                                                                 53
Page 593
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                      2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                         POLICIES (continued)

       ag. Penggunaan estimasi dan              pertimbangan              ag. Use of significant accounting estimates and
           akuntansi signifikan (lanjutan)                                    judgments (continued)

            Pertimbangan                                                        Judgments
            Pertimbangan berikut ini dibuat oleh manajemen                      The following judgments are made by
            dalam rangka penerapan kebijakan akuntansi                          management in the process of applying the
            Bank yang memiliki pengaruh paling signifikan                       Bank’s accounting policies that have the most
            atas jumlah yang diakui dalam laporan keuangan:                     significant effects on the amounts recognized in
                                                                                the financial statements:

            Kelangsungan usaha                                                  Going concern
            Manajemen Bank telah melakukan penilaian atas                       The Bank’s management has assessed the
            kemampuan Bank untuk mempertahankan                                 Bank’s ability to continue as a going concern
            kelangsungan usahanya dan berkeyakinan bahwa                        and believes that the Bank has the resources to
            Bank      memiliki    sumber     daya     untuk                     continue its business in the future. In addition to
            mempertahankan usahanya di masa mendatang.                          that, management is not aware of any material
            Selain itu, manajemen tidak mengetahui adanya                       uncertainty that may cast significant doubt to the
            ketidakpastian material yang dapat menimbulkan                      Bank’s ability to continue as a going concern.
            keraguan yang signifikan terhadap kemampuan                         Therefore, the financial statements have been
            Bank untuk mempertahankan usahanya. Oleh                            prepared on going concern basis.
            karena itu, laporan keuangan telah disusun atas
            dasar usaha yang berkelanjutan.

            Klasifikasi aset dan liabilitas keuangan                            Classification of financial assets and liabilities
            Bank menetapkan klasifikasi atas aset dan                           The Bank determines the classifications of
            liabilitas tertentu sebagai aset keuangan dan                       certain assets and liabilities as financial assets
            liabilitas keuangan dengan mempertimbangkan                         and financial liabilities by judging if they meet
            apakah definisi yang ditetapkan PSAK 71                             the definition set forth in PSAK 71. Accordingly,
            dipenuhi. Dengan demikian, aset keuangan dan                        the financial assets and financial liabilities are
            liabilitas keuangan diakui sesuai dengan                            accounted for in accordance with the Bank’s
            kebijakan akuntansi Bank seperti diungkapkan                        accounting policies disclosed in (Note 2d).
            pada (Catatan 2d).

            Nilai wajar instrumen keuangan                                      Fair value of financial instruments
            Semua aset dan liabilitas dimana nilai wajar                        All assets and liabilities in which fair value is
            diukur atau diungkapkan dalam laporan keuangan                      measured or disclosed in the financial
            dapat dikategorikan pada level hierarki nilai wajar,                statements can be classified in fair value
            berdasarkan tingkatan input terendah yang                           hierarchy levels, based on the lowest level of
            signifikan atas pengukuran nilai wajar secara                       input that is significant on the overall fair value
            keseluruhan:                                                        measurement:

            - Level 1: harga kuotasian (tanpa penyesuaian)                      - Level 1: quoted price (without adjustments)
              di pasar aktif untuk aset atau liabilitas yang                      in active markets for identical assets or
              identik yang dapat diakses pada tanggal                             liabilities that are accessible at the
              pengukuran.                                                         measurement date.
            - Level 2: input selain harga kuotasian yang                        - Level 2: inputs other than quoted prices
              termasuk dalam level 1 yang dapat diobservasi                       included in Level 1 that are observable for the
              untuk aset dan liabilitas, baik secara langsung                     assets and liabilities, either directly or
              atau tidak langsung.                                                indirectly.
            - Level 3: input yang tidak dapat diobservasi                       - Level 3: unobservable inputs for the asset
              untuk aset dan liabilitas.                                          and liability.




                                                              54
Page 594
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                        2.     INFORMATION OF MATERIAL                            ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)

       ag. Penggunaan estimasi dan pertimbangan                             ag. Use of significant accounting estimates and
           akuntansi signifikan (lanjutan)                                      judgments (continued)

           Pertimbangan (lanjutan)                                                 Judgments (continued)

           Klasifikasi investasi   pada   biaya   perolehan                        Classification to amortized cost investments
           diamortisasi
           Surat berharga dengan klasifikasi pada biaya                            The classification under amortized cost securities
           perolehan diamortisasi membutuhkan judgment                             requires significant judgment. In making this
           yang signifikan. Dalam membuat judgment ini,                            judgment, the Bank evaluates its business model
           Bank    mengevaluasi      model     bisnis  dan                         and the contractual termsof thefinancial asset
           persyaratan kontraktual dari aset keuangan yang                         give rise on specified dates to cash flows that are
           pada tanggal tertentu meningkatkan arus kas                             solely payments of principal and interest.
           yang semata dari pembayaran pokok dan bunga.

           Aset keuangan yang tidak memiliki harga pasar                           Financial assets not quoted in an active market
           Bank mengklasifikasikan aset keuangan dengan                            The Bank classifies financial assets by
           mengevaluasi, antara lain, apakah aset tersebut                         evaluating, among others, whether the asset is
           dikuotasi atau tidak di pasar aktif. Termasuk                           quoted or not in an active market. Included in the
           dalam evaluasi adalah apakah aset keuangan                              evaluation on whether a financial asset is quoted
           yang dikuotasi di pasar aktif tersebut ditentukan                       in an active market is the determination on
           berdasarkan apakah harga kuotasi tersedia                               whether quoted prices are readily and regularly
           secara rutin, dan apakah harga tersebut                                 available, and whether those prices represent
           mencerminkan harga aktual yang secara teratur                           actual    and     regulary   occurring     market
           terjadi transaksi pasar secara wajar.                                   transactions on an arm’s length basis.

           Kontinjensi                                                             Contingencies
           Bank saat ini terlibat dalam beberapa kasus                             Bank is currently involved in various legal
           hukum. Estimasi atas biaya yang mungkin terjadi                         proceedings. The estimate of the probable costs
           atas penyelesaian tuntutan-tuntutan tersebut                            for the resolution of these claims has been
           sudah dikonsultasikan dengan penasihat dari                             developed in consultation with outside counsel
           luar yang menangani pembelaan Bank dalam                                handling the Bank’s defense on these matters
           hal-hal tersebut dan berdasarkan analisa dari                           and is based upon an analysis of the potential
           hasil yang mungkin terjadi. Bank saat ini tidak                         results. The Bank currently does not believe that
           yakin kalau kasus-kasus ini akan memiliki efek                          these proceedings will have a material adverse
           kerugian yang material pada laporan keuangan.                           effect on the financial statements. It is possible,
           Bagaimanapun, ada kemungkinan dari hasil-hasil                          however, that future results of operations could
           operasi di masa akan datang akan terpengaruh                            be materially affected by changes in the
           secara material oleh perubahan dari perkiraan-                          estimates or in the effectiveness of the strategies
           perkiraan atau dalam keefektifan dari strategi                          relating to the proceedings.
           yang     berhubungan    dengan    kasus-kasus
           tersebut.




                                                               55
Page 595
                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                     and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                   2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                      POLICIES (continued)

       ag. Penggunaan estimasi dan            pertimbangan             ag. Use of significant accounting estimates and
           akuntansi signifikan (lanjutan)                                 judgments (continued)

            Pertimbangan (lanjutan)                                          Judgments (continued)

            Penilaian mata uang fungsional                                   Assessment of functional currency

            Manajemen telah melakukan pertimbangan untuk                     The management has considered to use its
            menentukan mata uang fungsional yang paling                      judgment to determine the entity’s functional
            mewakili dampak ekonomi dari suatu transaksi,                    currency such that it most faithfully represents
            kejadian dan kondisi-kondisi yang relevan                        the economic effects of the underlaying
            terhadap entitas. Dalam membuat pertimbangan                     transactions, events and conditions that are
            tersebut, Bank telah mempertimbangkan hal-hal                    relevant to the entity. In making this judgment,
            sebagai berikut:                                                 the Bank has considered the following:

            1) mata uang yang mempengaruhi harga jual                       1)    the currency that mainly influences sales
               atas instrumen keuangan dan jasa-jasa                              prices for financial instruments and services
               lainnya (biasanya dari mata uang atas harga                        (this will often be the currency in which sales
               jual instrumen keuangan dan jasa-jasa yang                         prices for its financial instruments and
               telah diselesaikan);                                               services are denominated and settled);
            2) mata uang atas dana yang dihasilkan dari                     2)    the currency in which funds from financing
               aktivitas pendanaan; dan                                           activities are generated; and
            3) mata uang atas yang biasa diterima dari                      3)    the currency in which funds from operating
               aktivitas operasi.                                                 are usually retained.

            Sewa operasi                                                     Operating leases

            Bank, sebagai lessee, telah mengadakan                           The Bank, as a lessee, has entered into lease
            perjanjian    sewa    untuk    bangunan      yang                on premises used for its operations. The Bank
            digunakannya untuk operasi.          Bank telah                  has determined that all signifikan risk and
            menentukan bahwa semua risiko dan manfaat                        rewards of ownership of the properties it leases
            signifikan dari kepemilikan properti yang disewa                 on operating lease are not transferrable to the
            dalam sewa operasi tersebut tidak dapat dialihkan                Bank.
            kepada Bank.

            Estimasi dan asumsi                                              Estimates and assumptions

            Asumsi utama masa depan dan sumber utama                         The key assumptions concerning the future and
            estimasi ketidakpastian lain pada tanggal                        other key sources of estimation uncertainty at
            pelaporan yang memiliki risiko signifikan yang                   the reporting date that have a significant risk of
            dapat menimbulkan penyesuaian yang material                      causing a material adjustment to the carrying
            terhadap nilai tercatat aset dan liabilitas untuk                amounts of assets and liabilities within the next
            tahun keuangan berikutnya, diungkapkan di                        financial year are disclosed below. The Bank
            bawah ini. Bank mendasarkan asumsi dan                           based its assumptions and estimates on
            estimasinya pada parameter yang tersedia pada                    parameters available when the financial
            saat laporan keuangan disusun. Situasi yang ada                  statements      were      prepared.       Existing
            dan asumsi perkembangan masa depan, dapat                        circumstances and assumptions about future
            berubah akibat perubahan pasar atau situasi yang                 developments, may change due to market
            berada di luar kendali Bank. Perubahan-                          changes or circumstances arising beyond the
            perubahan tersebut dicerminkan di dalam asumsi-                  control of the Bank. Such changes are reflected
            asumsi terkait pada saat terjadinya.                             in the assumptions as they occur.




                                                           56
Page 596
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                        2.     INFORMATION OF MATERIAL                           ACCOUNTING
       (lanjutan)                                                           POLICIES (continued)
       ag. Penggunaan estimasi dan pertimbangan                             ag. Use of significant accounting estimates and
           akuntansi signifikan (lanjutan)                                      judgments (continued)
           Estimasi dan asumsi (lanjutan)                                          Estimates and assumptions (continued)
           Aset pajak tangguhan                                                    Deferred tax assets
           Aset pajak tangguhan diakui atas jumlah pajak                           Deferred tax assets are recognized for the
           penghasilan terpulihkan (recoverable) pada                              future recoverable taxable income arising from
           periode mendatang sebagai akibat perbedaan                              temporary difference. Management’s judgement
           temporer yang boleh dikurangkan. Justifikasi                            is required to determine the amount of deferred
           manajemen diperlukan untuk menentukan jumlah                            tax assets that can be recognized, based upon
           aset pajak tangguhan yang dapat diakui, sesuai                          the likely timing on level of future taxable profits
           dengan waktu yang tepat dan tingkat laba fiskal                         together with future tax planning strategics
           di masa mendatang sejalan dengan strategi                               (Note 22g).
           rencana perpajakan ke depan (Catatan 22g).
           Pensiun                                                                 Pension
           Program-program          pensiun       ditentukan                       Pension programs are determined based on
           berdasarkan perhitungan aktuaria. Perhitungan                           actuarial valuation. The actuarial valuation
           aktuaria menggunakan asumsi-asumsi seperti                              involves assumptions such as discount rate
           tingkat diskonto, tingkat pengembalian investasi,                       expected rate of returns on investments, future
           tingkat kenaikan gaji, tingkat kematian, tingkat                        salary increase, mortality rate, resignation rates
           pengunduran diri dan lain-lain (Catatan 54).                            and others (Note 54).
           Penurunan nilai surat berharga pada biaya                               Impairment        of    amortized       cost    marketable
           perolehan diamortisasi                                                  securities
           Bank       mereviu    surat    berharga      yang                       Bank revwiews marketable securities classified
           diklasifikasikan   pada      biaya      perolehan                       amortized cost at each financial position date to
           diamortisasi pada setiap tanggal posisi keuangan                        assess whether there is an impairment in value.
           untuk menilai apakah telah terjadi penurunan
           nilai.
           Dalam    menentukan        pertimbangan,    Bank                        In making this judgment, the Bank evaluates,
           mengevaluasi diantaranya faktor, pergerakan                             among others factors, historical market price
           harga pasar historis dan jangka waktu serta lama                        movements and duration and the extent to
           perpanjangan di mana nilai wajar dari investasi                         which the fair value of the investment is less
           kurang dari biayanya (Catatan 8 dan 43e).                               than the cost (Note 8 and 43e).
           Penurunan nilai atas aset tidak produktif                               Impairment of non-productive assets
           Bank melakukan penilaian atas penurunan nilai                           Bank assesses impairment on non productive
           pada aset non-finansial kapan saja terdapat                             assets whenever events or changes in
           peristiwa atau perubahan keadaan yang                                   circumstances indicate that the carrying amount
           mengindikasikan bahwa nilai tercatat pada suatu                         of an asset may not be recoverable. The factors
           aset mungkin tidak dapat diperoleh kembali.                             that the Bank considers important which could
           Faktor-faktor yang dianggap penting oleh Bank                           trigger an impairment review include the
           yang dapat memicu adanya ulasan atas                                    followings (Note 43e):
           penurunan nilai termasuk sebagai berikut
           (Catatan 43e):
            1) Kinerja di bawah rata-rata yang signifikan                         1)   Significant underperfomance relative to
               yang relatif terhadap hasil historis atau                               expected historical or projected future
               proyeksi hasil operasi yang diharapkan; di                              operating results;
               masa yang akan datang;
            2) Perubahan yang signifikan dari cara                                2)   Significant changes in the manner of use of
               penggunaan aset yang diperoleh atau                                     the acquired assets or the strategy for
               strategi untuk bisnis secara keseluruhan;                               overall business; and
               dan
            3) Tren negatif industri dan ekonomi yang                             3)    Significant negative industry or economic
               signifikan.                                                             trends.



                                                               57
Page 597
                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                     and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


  2.   INFORMASI KEBIJAKAN AKUNTANSI MATERIAL                   2.     INFORMATION OF MATERIAL                          ACCOUNTING
       (lanjutan)                                                      POLICIES (continued)

       ag. Penggunaan estimasi dan           pertimbangan               ag. Use of significant accounting estimates and
           akuntansi signifikan (lanjutan)                                  judgments (continued)

            Estimasi dan asumsi (lanjutan)                                    Estimates and assumptions (continued)
            Pengukuran     penyisihan     kerugian    kredit                  Measurement of expected credit loss (ECL)
            ekspektasian (ECL)                                                allowance
            Pengukuran       penyisihan     kerugian  kredit                  The measurement of the expected credit loss
            ekspektasian untuk aset keuangan yang diukur                      allowance for financial assets measured at
            dengan biaya perolehan diamortisasi dan FVOCI                     amortized cost and FVOCI is an area that
            adalah area yang memerlukan penggunaan                            requires the use of complex models and
            model yang kompleks dan asumsi signifikan                         significant assumptions about future economic
            tentang kondisi ekonomi dan perilaku kredit di                    conditions and credit behaviour (e.g. the
            masa depan (misalnya kemungkinan pelanggan                        likelihood of customers defaulting and the
            gagal bayar dan kerugian yang timbul).                            resulting losses). Explanation of the inputs,
            Penjelasan tentang input, asumsi dan teknik                       assumptions and estimation techniques used in
            estimasi yang digunakan dalam mengukur ECL                        measuring ECL is further detailed in (Note 2m),
            dirinci lebih lanjut di (Catatan 2m), yang juga                   which also sets out key sensitivities of the ECL
            menetapkan sensitivitas kunci ECL terhadap                        to changes in these elements.
            perubahan elemen-elemen ini.
            Sejumlah pertimbangan signifikan juga diperlukan                  A number of significant judgements are also
            dalam menerapkan persyaratan akuntansi untuk                      required   in    applying   the    accounting
            mengukur ECL, seperti:                                            requirements for measuring ECL, such as:
            - Menentukan kriteria untuk peningkatan risiko                    - Determining criteria for significant increase in
              kredit yang signifikan;                                           credit risk;
            - Memilih model dan asumsi yang tepat untuk                       - Choosing      appropriate       models      and
              pengukuran ECL;                                                   assumptions for the measurement of ECL;
            - Menetapkan jumlah dan bobot relatif dari                        - Establishing the number and relative
              skenario forward-looking untuk setiap jenis                       weightings of forward-looking scenarios for
              produk/pasar dan ECL terkait; dan                                 each type of product/market and the
                                                                                associated ECL; and
            - Membentuk kelompok aset keuangan serupa                         - Establishing Banks of similar financial assets
              untuk keperluan pengukuran ECL.                                   for the purposes of measuring ECL.

            Estimasi ini didasarkan pada asumsi-asumsi                       These estimates are based on assumptions
            tentang sejumlah faktor dan hasil aktual mungkin                 about a number of factors and actual results
            berbeda, yang tercermin dalam perubahan                          may differ, as reflected in changes in the ECL
            penyisihan ECL tersebut di masa mendatang                        allowance in the future (Note 12).
            (Catatan 12).

            Penyusutan dan estimasi masa manfaat dari aset                   Depreciation and estimated useful lives of fixed
            tetap                                                            assets
            Biaya perolehan aset tetap disusutkan dengan                     The costs of fixed asset are depreciated on a
            menggunakan metode garis lurus untuk bangunan                    straight-line method for buildings and on a
            dan metode saldo menurun ganda untuk selain                      double declining balance method for other than
            bangunan berdasarkan taksiran masa manfaat                       buildings over their estimated useful lives. The
            ekonomisnya. Manajemen Bank mengestimasi                         Bank’s management estimates the useful lives
            masa manfaat ekonomis aset tetap antara 4                        of these fixed assets to be within 4 to 20 years.
            sampai dengan 20 tahun.
            Perubahan tingkat pemakaian dan perkembangan                     Changes in the expected level of the usage and
            teknologi dapat mempengaruhi masa manfaat                        technological development could impact the
            ekonomis dan nilai sisa aset, dan karenanya                      economic useful lives and the residual values of
            biaya penyusutan masa depan mungkin direvisi                     the assets, and thefore future depreciation
            (Catatan 15).                                                    changes could be revised (Note 15).




                                                           58
Page 598
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                          and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                             (Expressed in millions of Rupiah, unless otherwise stated)


  3.    KAS                                                                             3.        CASH

                                                       31 Desember/                                        31 Desember/
                                                       December 31,                                        December 31,
                                                           2023                                                2022
                                      Jumlah nosional mata uang                           Jumlah nosional mata uang
                                         asing/ Notional amount        Ekuivalen             asing/ Notional amount          Ekuivalen
                                       foreign currencies (Dalam        Rupiah/            foreign currencies (Dalam          Rupiah/
                                              angka penuh/              Rupiah                    angka penuh/                Rupiah
                                             In full amount )          equivalent                In full amount )            equivalent
        Rupiah                                                          2.593.983                                             1.946.513                         Rupiah
        Mata uang asing                                                                                                                            Foreign currencies
         Dolar Amerika Serikat                          1.731.887          26.668                             1.338.167          20.832           United States Dollar
         Riyal Saudi Arabia                             3.759.449          15.436                             1.749.592           7.242           Saudi Arabian Riyal
         Dolar Singapura                                  663.426           7.746                               967.717           3.420             Malaysian Ringgit
         Euro                                             182.730           3.113                               536.709           6.222               Singapore Dollar
         Ringgit Malaysia                                 591.322           1.984                               122.970           2.039                           Euro
         Dolar Australia                                  134.405           1.414                                84.290             890               Australian Dollar
         Poundsterling Inggris Raya                        57.475           1.128                                 5.100              96    Great Britain Poundsterling
         Yen Jepang                                     5.606.000             610                             2.560.000             302                 Japanese Yen
         Dolar Hong Kong                                  186.580             368                               215.120             429              Hong Kong Dollar
         Yuan China Renminbi                              150.105             325                               124.248             277      Chinese Yuan Renminbi
        Jumlah mata uang asing                                             58.792                                                41.749       Total foreign currencies
        Jumlah kas                                                      2.652.775                                             1.988.262                       Total cash


        Kas dalam Rupiah pada tanggal 31 Desember 2023                                          Cash in Rupiah as of December 31, 2023 and 2022,
        dan 2022, masing-masing termasuk uang pada mesin                                        includes funds at Automatic Teller Machines (ATM)
        Anjungan Tunai Mandiri (ATM) dan Cash Recycle                                           and Cash Recycle Machine (CRM) amounting to
        Machine (CRM) sejumlah Rp300.802 dan Rp295.380.                                         Rp300,802 and Rp295,380, respectively.

   4.   GIRO PADA BANK INDONESIA                                                        4.      CURRENT ACCOUNTS WITH BANK INDONESIA


                                                        31 Desember/                                          31 Desember/
                                                        December 31,                                          December 31,
                                                            2023                                                  2022
                                       Jumlah nosional mata uang                             Jumlah nosional mata uang
                                         asing / Notional amount        Ekuivalen              asing / Notional amount        Ekuivalen
                                        foreign currencies (Dalam        Rupiah/              foreign currencies (Dalam        Rupiah/
                                               angka penuh/              Rupiah                      angka penuh/              Rupiah
                                              In full amount )          equivalent                  In full amount )          equivalent
         Rupiah                                                          7.940.618                                            10.774.286                         Rupiah
         Dolar Amerika Serikat                           2.000.000          30.794                               800.000          12.454             United States Dollar
         Jumlah                                                          7.971.412                                            10.786.740                           Total


        Dalam giro pada Bank Indonesia termasuk giro yang                                     Current accounts with Bank Indonesia include current
        didasarkan pada prinsip perbankan syariah sebesar                                     accounts based on sharia banking principles
        Rp188.268 dan Rp184.549 masing-masing pada                                            amounting to Rp188,268 and Rp 184,549 as of
        tanggal 31 Desember 2023 dan 2022.                                                    December 31, 2023 and 2022, respectively.




                                                                                59
Page 599
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


 4.    GIRO PADA BANK INDONESIA (lanjutan)                          4.     CURRENT ACCOUNTS WITH BANK INDONESIA
                                                                           (continued)
       Rasio (GWM) Bank adalah sebagai berikut:                            The statutory reserve of the Bank was as follows:
                                                    31 Desember/         31 Desember/
                                                    December 31,         December 31,
                                                        2023                 2022
       Konvesional                                                                                                               Conventional
       Rupiah                                                                                                                           Rupiah
       GWM Primer                                                                                                  Primary Statutory Reserve
        Harian                                         2,49%                4,75%                                                       Daily
        Rata-rata                                      6,36%                7,40%                                                   Average
       Penyangga Likuiditas Makroprudensial (PLM)     30,50%               36,38%                              Macroprudential Liquidity Buffer
       Mata uang asing                                 6,62%                7,39%                                         Foreign currencies

       Syariah                                                                                                                         Sharia
       Rupiah                                          5,81%                6,54%                                                      Rupiah

       Rasio GWM pada tanggal 31 Desember 2023 dihitung                             The statutory reserves ratio as of December 31,
       berdasarkan Peraturan Bank Indonesia (PBI)                                   2023 is calculated based on Bank Indonesia
       No.15/15/PBI/2013 sebagaimana diubah terakhir                                Regulation (PBI) No.15/15/PBI/2013 which have
       dengan PBI No.24/4/PBI/2022 tanggal 25 Februari                              been amanded with PBI No.24/4/PBI/2022
       2022 dengan Peraturan Anggota Dewan Gubernur                                 dated February 25, 2022 with PADG No.2 year
       (PADG) terakhir yaitu PADG No.2 tahun 2023 tanggal                           2023 dated March 24, 2023 regarding Statutory
       24 Maret 2023 tentang tentang Giro Wajib Minimum                             Reserves in Rupiah and Foreign Currency, for
       dalam Rupiah dan Valuta Asing, Bagi Bank Umum                                Conventional Commercial Banks, Islamic
       Konvensional, Bank Umum Syariah dan Unit Usaha                               Commercial Banks and Sharia Business Units.
       Syariah.
       Berdasarkan       surat    dari   Bank      Indonesia                        Based on a letter from Bank Indonesia
       No.25/321/DKMP/Srt/B tanggal 5 Desember 2023 dan                             No.25/321/DKMP/Srt/B dated December 5,2023
       merujuk pada Peraturan Bank Indonesia Nomor                                  and referring to Bank Indonesia Regulation
       24/5/PBI/2022, untuk periode tanggal 1 Desember                              Number 24/5/PBI/2022, from December 1, 2023
       2023 s/d 29 Februari 2024, Bank telah memperoleh                             to February 29, 2024, Bank has obtained
       insentif atas penyediaan dana untuk kegiatan ekonomi                         incentives for providing funds for activities a
       tertentu dan inklusif berupa pemotongan pemenuhan                            certain and inclusive economy that reduction in
       GWM        masing-masing    sebesar    2,8%     untuk                        the fulfillment of the statutory reserve
       konvensional dan 2,0% untuk syariah.                                         requirement by 2.8% for conventional and 2.0%
                                                                                    for sharia respectively.
       Rasio GWM pada tanggal 31 Desember 2022 dihitung                             The statutory reserves ratio as of December 31,
       berdasarkan Peraturan Bank Indonesia (PBI)                                   2022 is calculated based on Bank Indonesia
       No.15/15/PBI/2013 sebagaimana diubah terakhir                                Regulation (PBI) No.15/15/PBI/2013 which have
       dengan PBI No.24/4/PBI/2022 tanggal 25 Februari                              been amanded with PBI No.24/4/PBI/2022
       2022 dengan Peraturan Anggota Dewan Gubernur                                 dated February 25, 2022 with PADG
       (PADG) terakhir yaitu PADG No.24/8/PADG/2022                                 No.24/8/PADG/2022 dated June 30, 2022
       tanggal 30 Juni 2022 tentang tentang Giro Wajib                              regarding Statutory Reserves in Rupiah and
       Minimum dalam Rupiah dan Valuta Asing, Bagi Bank                             Foreign Currency, for Conventional Commercial
       Umum Konvensional, Bank Umum Syariah dan Unit                                Banks, Islamic Commercial Banks and Sharia
       Usaha Syariah.                                                               Business Units.
       Rasio PLM pada tanggal 31 Desember 2023 dihitung                             The PLM ratio as of December 31, 2023 is
       berdasarkan Peraturan Bank Indonesia (PBI)                                   calculated based on Bank Indonesia Regulation
       No.15/15/PBI/2013 sebagaimana diubah terakhir                                (PBI) No.15/15/PBI/2013 which have been
       dengan PBI No.24/16/PBI/2022 tanggal 31 Oktober                              amanded with PBI No.24/16/PBI/2022 dated
       2022 dengan Peraturan Anggota Dewan Gubernur                                 October 31, 2022 with PADG No.18 year 2023
       (PADG) terakhir yaitu PADG No. 18 tahun 2023                                 dated    November     29,     2023    regarding
       tanggal 29 November 2023 tentang Rasio Intermediasi                          Macroprudential Intermediation Ratio and
       Makroprudensial     dan    Penyangga      Likuiditas                         Macroprudential     Liquidity     Buffer     for
       Makroprudensial bagi Bank Umum Konvensional, Bank                            Conventional Commercial Banks, Islamic
       Umum Syariah, dan Unit Usaha Syariah.                                        Commercial Banks and Sharia Business Units.



                                                               60
Page 600
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)         (Expressed in millions of Rupiah, unless otherwise stated)


 4.   GIRO PADA BANK INDONESIA (lanjutan)                         4.       CURRENT ACCOUNTS WITH BANK INDONESIA
                                                                           (continued)
      Rasio PLM pada tanggal 31 Desember 2022 dihitung                     The PLM ratio as of December 31, 2022 is calculated
      berdasarkan Peraturan Bank Indonesia (PBI)                           based on Bank Indonesia Regulation (PBI)
      No.15/15/PBI/2013 sebagaimana diubah terakhir                        No.15/15/PBI/2013 which have been amanded with
      dengan PBI No.24/16/PBI/2022 tanggal 31 Oktober                      PBI No.24/16/PBI/2022 dated October 31, 2022 with
      2022 dengan Peraturan Anggota Dewan Gubernur                         PADG No.24/14/PADG/2022 dated October 31, 2022
      (PADG) terakhir yaitu PADG No. 24/14/PADG/2022                       regarding Macroprudential Intermediation Ratio and
      tanggal 31 Oktober 2022 tentang Rasio Intermediasi                   Macroprudential Liquidity Buffer for Conventional
      Makroprudensial     dan   Penyangga      Likuiditas                  Commercial Banks, Islamic Commercial Banks and
      Makroprudensial bagi Bank Umum Konvensional,                         Sharia Business Units.
      Bank Umum Syariah, dan Unit Usaha Syariah.

      Pada tanggal 31 Desember 2023 dan 2022, sesuai                       As of December 31, 2033 and 2022, based on the
      dengan ketentuan Bank Indonesia tersebut di atas,                    above Bank Indonesia regulations, The Bank is
      Bank harus memenuhi persyaratan GWM dalam                            required to maintain primary statutory reserve in
      Rupiah sebesar 9%, sedangkan untuk mata uang                         Rupiah amounting to 9%, while statutory reserve for
      asing sebesar 4%. Untuk Penyangga Likuiditas                         foreign currency amounting to 4%. Macroprudential
      Makroprudensial (PLM) masing-masing sebesar 6%                       Liquidity Buffer (PLM) amounting to 6% and 5% in
      dan 5% dalam Rupiah pada tanggal 31 Desember                         Rupiah as of December 31, 2023 and 2022
      2023 dan 31 Desember 2022.                                           respectively.

      Pada tanggal 31 Desember 2023 dan 2022, sesuai                       As of December 31, 2023 and 2022, based on the
      dengan    ketentuan   Bank     Indonesia tersebut                    Bank Indonesia regulations, for sharia principle, the
      berdasarkan prinsip syariah, Bank harus memenuhi                     Bank is required to maintain statutory reserve in
      persyaratan GWM dalam Rupiah masing-masing                           Rupiah amounting 7.5%.
      sebesar 7,5%.

      Bank telah memenuhi ketentuan Bank Indonesia                         The Bank has complied with Bank Indonesia
      tentang Giro Wajib Minimum pada tanggal 31                           regulations concerning the minimum reserve
      Desember 2023 dan 2022.                                              requirments as of December 31, 2023 and 2022.

      Sisa umur jatuh tempo atas giro pada Bank Indonesia                  The remaining period of current amount with Bank
      dikategorikan sebagai kurang dari 1 (satu) bulan                     Indonesia is catagorized as less than 1 (one) month
      (Catatan 45).                                                        (Note 45).




                                                            61
Page 601
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


  5.   GIRO PADA BANK LAIN                                                            5.     CURRENT ACCOUNTS WITH OTHER BANKS
       a.   Berdasarkan bank                                                                  a.     By bank
                                                                     31 Desember/            31 Desember/
                                                                     December 31,            December 31,
                                                                         2023                    2022
            Rupiah                                                                                                                                      Rupiah
             PT Bank Rakyat Indonesia (Persero) Tbk                         248.110                  146.357           PT Bank Rakyat Indonesia (Persero) Tbk
             PT Bank Central Asia Tbk                                        74.098                   37.005                        PT Bank Central Asia Tbk
             PT Bank CIMB Niaga Tbk                                          10.873                    4.440                        PT Bank CIMB Niaga Tbk
             PT Bank Mandiri (Persero) Tbk                                    2.990                    2.150                    PT Bank Mandiri (Persero) Tbk
             PT Bank Negara Indonesia (Persero) Tbk                             417                      505           PT Bank Negara Indonesia (Persero) Tbk
                                                                            336.488                  190.457
            Mata uang asing                                                                                                                Foreign currencies
             DBS Singapore Ltd                                               64.172                    6.241                              DBS Singapore Ltd
             PT Bank Central Asia Tbk                                        54.323                   26.777                        PT Bank Central Asia Tbk
             PT Bank Negara Indonesia (Persero) Tbk                          18.428                   70.647           PT Bank Negara Indonesia (Persero) Tbk
             PT Bank Mandiri (Persero) Tbk                                    7.584                    5.748                    PT Bank Mandiri (Persero) Tbk
             PT Bank Rakyat Indonesia (Persero) Tbk                           5.987                    2.365           PT Bank Rakyat Indonesia (Persero) Tbk
             PT Bank ICBC Indonesia                                           4.348                      894                         PT Bank ICBC Indonesia
                                                                            154.842                  112.672
            Jumlah                                                          491.330                  303.129                                                 Total
            Cadangan kerugian penurunan nilai                                (1.077)                    (441)                     Allowance for impairment losses
            Neto                                                            490.253                  302.688                                                  Net

            Pada tanggal 31 Desember 2023 dan 2022, giro                                             As of December 31, 2023 and 2022, current
            pada bank lain termasuk giro yang didasarkan                                             accounts with other banks include current
            pada prinsip perbankan syariah masing-masing                                             accounts based on sharia banking principles
            sebesar Rp209 dan Rp228.                                                                 amounting to Rp209 and Rp228 respectively.
       b.   Berdasarkan mata uang                                                             b.     By currency
                                                          31 Desember/                               31 Desember/
                                                         December 31,                               December 31,
                                                              2023                                       2022
                                                Jumlah nosional                            Jumlah nosional
                                                mata uang asing/                           mata uang asing/
                                                Notional amount                            Notional amount
                                                    foreign                                    foreign
                                                  currencies        Ekuivalen                currencies        Ekuivalen
                                                 (Dalam angka         Rupiah/               (Dalam angka         Rupiah/
                                                 penuh/ In full        Rupiah               penuh/ In full        Rupiah
                                                    amount)         equivalent                 amount)         equivalent

            Rupiah                                                     336.488                                     190.456                              Rupiah
            Mata uang asing                                                                                                                 Foreign currencies
             Dolar Amerika Serikat                     5.074.571        78.132                     5.665.585        96.313                 United States Dollar
             Dolar Singapura                           5.495.878        64.172                       538.334         6.241                     Singapore Dollar
             Yuan China Renminbi                       2.003.450         4.348                       399.403           894            Chinese Yuan Renminbi
             Dolar Australia                             335.609         3.531                       493.256         5.208                     Australian Dollar
             Euro                                        182.202         3.104                       141.924         2.353                                 Euro
             Poundsterling Inggris Raya                   56.643         1.112                        52.645           989          Great Britain Poundsterling
             Dolar Hong Kong                             195.940           386                       208.023           415                    Hong Kong Dollar
             Yen Jepang                                  521.168            57                     2.205.651           260                       Japanese Yen
            Jumlah mata uang asing                                     154.842                                     112.673             Total foreign currencies
                                                                       491.330                                     303.129
            Cadangan kerugian penurunan nilai                           (1.077)                                       (441)     Allowance for impairment losses
            Neto                                                       490.253                                     302.688                                Net




                                                                           62
Page 602
                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                         (Expressed in millions of Rupiah, unless otherwise stated)



 5.   GIRO PADA BANK LAIN (lanjutan)                                              5.        CURRENT ACCOUNTS                         WITH     OTHER          BANKS
                                                                                            (continued)

      c.    Tingkat suku bunga per tahun                                                   c.       Interest rates per annum

                                                                 December 31,                   December 31,
                                                                     2023                           2022
            Rupiah                                                  0,10%                          0,16%                                                   Rupiah
            Mata uang asing                                         0,89%                          0,29%                                        Foreign Currencies

      d.    Berdasarkan hubungan                                                           d.       By relationship

            Pada tanggal 31 Desember 2023 dan 2022,                                                 As of December 31, 2023 and 2022, no current
            tidak ada giro pada bank lain pada pihak                                                accounts in related parties.
            berelasi.

      e.    Berdasarkan kolektibilitas                                                     e.       By collectability

            Giro pada bank lain pada tanggal 31 Desember                                            Current accounts with other banks as of
            2023 dan 2022, digolongkan sebagai lancar.                                              December 31, 2023 and 2022 were classified as
            Tidak terdapat saldo giro pada bank lain yang                                           current. None were blocked or under liens as
            diblokir atau digunakan sebagai agunan.                                                 collateral.

      f.    Nilai tercatat bruto                                                           f.       Gross carrying amount
                                                                                 31 Desember/
                                                                                 December 31,
                                                                                     2023

                                                   Tahap 1/            Tahap 2/                   Tahap 3/           Jumlah/
                                                   Stage 1             Stage 2                    Stage 3             Total

            Rupiah                                      336.488                        -                         -       336.488                                 Rupiah
            Mata uang asing                             154.842                        -                         -       154.842                      Foreign currencies
            Jumlah                                      491.330                        -                         -       491.330                                    Total
            Cadangan kerugian penurunan nilai            (1.077)                       -                         -        (1.077)        Allowance for impairment losses
            Neto                                        490.253                        -                         -       490.253                                     Net


                                                                                 31 Desember/
                                                                                 December 31,
                                                                                     2022

                                                  Tahap 1/            Tahap 2/                   Tahap 3/            Jumlah/
                                                  Stage 1             Stage 2                    Stage 3              Total

            Rupiah                                    190.456                      -                         -            190.456                              Rupiah
            Mata uang asing                           112.673                      -                         -            112.673                   Foreign currencies
            Jumlah                                    303.129                      -                         -            303.129                                 Total
            Penyisihan kerugian penurunan nilai          (441)                     -                         -               (441)     Allowance for impairment losses
            Neto                                      302.688                      -                         -            302.688                                  Net


      g.    Cadangan kerugian penurunan nilai                                                   g. Allowance for impairment losses
                                                                 31 Desember/               31 Desember/
                                                                 December 31,               December 31,
                                                                     2023                       2022
            Saldo awal tahun                                              441                        238                              Balance at beginning of year
            Penyisihan tahun berjalan                                       636                              203                         Provision during the year
            Saldo akhir tahun                                            1.077                               441                          Balance at end of year

            Manajemen    berpendapat   bahwa    jumlah                                              Management believes that the allowance for
            penyisihan kerugian penurunan nilai untuk                                               impairment losses on current accounts with other
            menutup kemungkinan kerugian yang timbul                                                banks is adequate.
            akibat adanya giro pada bank lain adalah
            memadai.

                                                                       63
Page 603
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)


 5.    GIRO PADA BANK LAIN (lanjutan)                                                5.       CURRENT ACCOUNTS WITH OTHER BANKS
                                                                                              (continued)
       g.   Cadangan            kerugian          penurunan         nilai                     g. Allowance for impairment losses (continued0
            (lanjutan)

            Informasi mengenai klasifikasi aset keuangan                                      Information with respect to classification of impaired
            dan mengalami penurunan nilai dan tidak                                           and not impaired financial assets also information
            mengalami penurunan nilai berikut dengan                                          about the staging of current accounts with other
            informasi staging cadangan kerugian penurunan                                     bank are disclosed in (Note 43e).
            nilai giro pada bank lain diungkapkan pada
            (Catatan 43e).

  6.   PENEMPATAN             PADA        BANK          INDONESIA    DAN               6.     PLACEMENTS WITH BANK INDONESIA AND
       BANK LAIN                                                                              OTHER BANKS
       a.   Berdasarkan jenis dan mata uang                                                 a.     By type and currency
                                                                      2023                       2022
            Rupiah                                                                                                                                           Rupiah
            Deposito berjangka:                                                                                                                       Time deposits:
            Lain-lain (Bank Perkreditan Rakyat)                              1.500                      7.000                                    Others (Rural Bank)
                                                                             1.500                      7.000
            Pasar Uang Antar Bank:                                                                                                             Interbank call money:
            PT Bank DKI                                                 400.000                             -                                         PT Bank DKI
            PT Bank BTPN Tbk                                            400.000                             -                                    PT Bank BTPN Tbk
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
             Sulawesi Selatan dan Sulawesi Barat                        346.985                    300.000                    Sulawesi Selatan dan Sulawesi Barat
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Kalimantan Timur dan Kalimantan Utara                     308.000                    200.000                  Kalimantan Timur dan Kalimantan Utara
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Sumatera Selatan dan Bangka Belitung                      295.000                    240.000                  Sumatera Selatan dan Bangka Belitung
            PT Bank Pembangunan Daerah Bali                             288.000                     50.000                      PT Bank Pembangunan Daerah Bali
            PT. Bank Pan Indonesia Tbk                                  200.000                    400.000                              PT. Bank Pan Indonesia Tbk
            PT Bank CTBC Indonesia                                      190.000                          -                                 PT Bank CTBC Indonesia
            PT Bank Pembangunan Daerah Papua                            180.000                    175.000                    PT Bank Pembangunan Daerah Papua
            PT Bank Pembangunan Daerah                                                                                              PT Bank Pembangunan Daerah
             Kalimantan Selatan                                         174.000                     75.000                                     Kalimantan Selatan
            PT Bank Pembangunan Daerah                                                                                              PT Bank Pembangunan Daerah
             Kalimantan Tengah                                          170.000                    150.000                                     Kalimantan Tengah
            PT Bank Pembangunan Daerah Jambi                            160.000                          -                     PT Bank Pembangunan Daerah Jambi
            PT Bank Pembangunan Daerah                                                                                              PT Bank Pembangunan Daerah
             Sulawesi Tenggara                                          135.000                    140.000                                      Sulawesi Tenggara
            PT Bank Pembangunan Daerah Maluku dan                                                                       PT Bank Pembangunan Daerah Maluku dan
             Maluku Utara                                               135.000                    140.000                                            Maluku Utara
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Sulawesi Utara Gorontalo                                  105.000                             -                            Sulawesi Utara Gorontalo
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
             Nusa Tenggara Timur                                        100.000                    100.000                                   Nusa Tenggara Timur
            PT Bank Pembangunan Daerah Lampung                          100.000                    125.000                  PT Bank Pembangunan Daerah Lampung
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
             Sulawesi Tengah                                            100.000                    115.000                                        Sulawesi Tengah
            PT Bank Ina Perdana Tbk                                      70.000                     50.000                               PT Bank Ina Perdana Tbk
            PT Bank Syariah Indonesia Tbk                                46.191                    200.000                          PT Bank Syariah Indonesia Tbk
            PT Bank China Construction Bank Indonesia Tbk                46.191                          -            PT Bank China Construction Bank Indonesia Tbk
            PT Bank Allo Bank Indonesia Tbk                              45.000                          -                          PT Bank Allo Bank Indonesia Tbk
            PT Bank Capital Indonesia Tbk                                45.000                          -                            PT Bank Capital Indonesia Tbk
            PT Bank JTrust Indonesia Tbk                                 22.000                          -                             PT Bank JTrust Indonesia Tbk
            PT Bank Victoria International Tbk                           22.000                    120.000                       PT Bank Victoria International Tbk
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Jawa Tengah                                                        -                 600.000                                            Jawa Tengah
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Jawa Barat dan Banten Tbk                                          -                 400.000                             Jawa Barat dan Banten Tbk
            PT Bank Nationalnobu Tbk                                             -                 110.000                                PT Bank Nationalnobu Tbk
            PT Bank Mestika Dharma Tbk                                           -                 100.000                             PT Bank Mestika Dharma Tbk
            PT Bank Sahabat Sampoerna                                            -                 100.000                           PT Bank Sahabat Sampoerna
            PT Bank Pembangunan Daerah                                                                                               PT Bank Pembangunan Daerah
              Sumatera Utara                                                     -                 100.000                                           Sumatera Utara
            PT Bank Pembangunan Daerah                                                                                              PT Bank Pembangunan Daerah
              Daerah Istimewa Yogyakarta                                         -                 100.000                            Daerah Istimewa Yogyakarta
            PT Bank Pembangunan Daerah                                                                                              PT Bank Pembangunan Daerah
             Kalimantan Barat                                                 -                      75.000                                       Kalimantan Barat
                                                                      4.083.367                   4.165.000

            Fasilitas Simpanan Bank Indonesia (FASBI)                 1.150.000                     745.000                   Bank Indonesia Deposit Facility (FASBI)
            Term Deposit                                                      -                   2.000.000                                            Term Deposit
            Dikurangi: Diskonto yang
                                                                                                                                          Less: Unamortized interest
              belum diamortisasi                                           (146)                       (671)
                                                                      1.149.854                   2.744.329
            Jumlah                                                    5.234.721                   6.916.329                                                     Total
            Cadangan kerugian penurunan nilai                            (5.026)                     (3.154)                         Allowance for impairment losses
            Neto                                                      5.229.695                   6.913.175                                                      Net




                                                                            64
Page 604
                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                          (Expressed in millions of Rupiah, unless otherwise stated)



 6.    PENEMPATAN PADA                    BANK   INDONESIA         DAN             6.       PLACEMENTS WITH BANK INDONESIA AND
       BANK LAIN (lanjutan)                                                                 OTHER BANKS (continued)

       a.   Berdasarkan jenis dan mata uang (lanjutan)                                      a.       By type and currency (continued)
            Pada tanggal 31 Desember 2023 dan 2022,                                                  As of December 31, 2023 and 2022, placements
            dalam penempatan pada Bank Indonesia dan                                                 with Bank Indonesia and other banks include
            bank lain termasuk penempatan yang didasarkan                                            placements based on sharia banking principles
            pada prinsip perbankan syariah masing-masing                                             amounting to Rp150,209 and Rp145,228
            sebesar Rp150.209 dan Rp145.228.                                                         respectively.

       b.   Berdasarkan jangka waktu                                                        b.       By maturity
                                                              December 31,                  December 31,
                                                                  2023                          2022
            Kurang dari 1 bulan                                     5.233.221                           6.309.329                            Less than 1 month
            1 - 3 bulan                                                     -                             600.000                                  1 - 3 months
            3 - 6 bulan                                                 1.500                               7.000                                  3 - 6 months
                                                                    5.234.721                           6.916.329



       c.   Berdasarkan kolektibilitas                                                      c.       By collectability

            Semua penempatan Bank pada Bank Indonesia                                                All placements with Bank Indonesia and other
            dan bank lain pada tanggal 31 Desember 2023                                              banks as of December 31, 2023 and December
            dan 2022 digolongkan lancar.                                                             2022 were classified as current.

       d.   Berdasarkan hubungan                                                            d.       By relationship

            Pada tanggal 31 Desember 2023 dan 2022 tidak                                             As of December 31, 2023 and 2022, the Bank
            terdapat penempatan pada pihak berelasi.                                                 had no funds placed with related parties.

       e.   Tingkat suku bunga per tahun                                                    e.       Interest rates per annum
                                                         December 31,                    December 31,
                                                             2023                            2022
            Rupiah                                                                                                                                   Rupiah
             Interbank call money                               5,92%                            3,55%                                Interbank call money
             Term deposit                                       5,64%                            3,25%                                        Term deposit
             Deposit Facility                                   5,10%                            3,08%                                      Deposit Facility
             Deposito berjangka                                 6,02%                            3,49%                                  Deposito berjangka
            Mata uang asing                                                                                                             Foreign Currencies
             Term deposit                                       5,29%                            0,00%                                        Term deposit
             Interbank call money                               5,17%                            1,47%                                Interbank call money



       f.   Nilai tercatat bruto                                                            f.       Gross carrying amount

                                                                                     2023

                                                   Tahap 1/             Tahap 2/                 Tahap 3/           Jumlah/
                                                   Stage 1              Stage 2                  Stage 3             Total

            Rupiah:                                                                                                                                          Rupiah:
             Penempatan pada Bank Indonesia           1.149.854                      -                      -          1.149.854    Placements with Bank Indonesia
             Pasar uang antar Bank                    4.083.367                      -                      -          4.083.367              Interbank call money
              Deposito berjangka                          1.500                      -                      -              1.500                     Time deposits
            Jumlah                                    5.234.721                      -                      -          5.234.721                               Total

            Cadangan kerugian penurunan nilai            (5.026)                     -                      -             (5.026)    Allowance for impairment losses
            Neto                                      5.229.695                      -                      -          5.229.695                                 Net


                                                                        65
Page 605
                                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                (Expressed in millions of Rupiah, unless otherwise stated)


  6.   PENEMPATAN PADA                  BANK      INDONESIA         DAN            6.       PLACEMENTS WITH BANK INDONESIA AND
       BANK LAIN (lanjutan)                                                                 OTHER BANKS (continued)

       f.   Nilai tercatat bruto (lanjutan)                                                 f.    Gross carrying amount (continued)

                                                                                 December 31,
                                                                                     2022

                                                    Tahap 1/          Tahap 2/               Tahap 3/           Jumlah/
                                                    Stage 1           Stage 2                Stage 3             Total

            Rupiah:                                                                                                                                        Rupiah:
             Penempatan pada Bank Indonesia            2.744.329                    -                   -           2.744.329     Placements with Bank Indonesia
             Pasar uang antar Bank                     4.165.000                    -                   -           4.165.000               Interbank call money
             Deposito berjangka                            7.000                    -                   -               7.000                      Time deposits
            Jumlah                                     6.916.329                    -                   -           6.916.329                                Total

            Penyisihan kerugian penurunan nilai           (3.154)                   -                   -              (3.154)     Allowance for impairment losses
            Neto                                       6.913.175                    -                   -           6.913.175                                  Net


       g.   Cadangan kerugian penurunan nilai                                               g.    Allowance for impairment losses

                                                               December 31,                 December 31,
                                                                   2023                         2022
            Saldo awal tahun                                            3.154                        1.763                       Balance at beginning of year
            Penyisihan tahun berjalan                                   1.872                        1.391                          Provision during the year
            Saldo akhir tahun                                           5.026                        3.154                           Balance at end of year


            Manajemen      berpendapat    bahwa   jumlah                                          Management believes that the allowance for
            penyisihan kerugian penurunan nilai untuk                                             impairment losses on placements with Bank
            menutup kemungkinan kerugian yang timbul                                              Indonesia and other banks is adequate.
            akibat adanya penempatan pada Bank Indonesia
            dan bank lain adalah memadai.

            Informasi mengenai klasifikasi aset keuangan                                          Information with respect to classification of
            dan mengalami penurunan nilai dan tidak                                               impaired and not impaired financial assets also
            mengalami penurunan nilai berikut dengan                                              information about the staging of placement with
            informasi staging cadangan kerugian penurunan                                         other bank are disclosed in (Note 43e).
            nilai penempatan pada bank lain diungkapkan
            pada (Catatan 43e).

       h.   Penempatan pada bank lain yang digunakan                                        h.    Placements with other banks pledged as
            sebagai jaminan                                                                       collateral

            Tidak terdapat penempatan pada bank lain yang                                         There were no placements with other banks
            digunakan sebagai jaminan pada tanggal-tanggal                                        pledged as collateral as of December 31, 2023
            31 Desember 2023 dan 2022.                                                            and 2022.




                                                                       66
Page 606
                                                                                                               The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                           (Expressed in millions of Rupiah, unless otherwise stated)


 7.   TAGIHAN SPOT DAN DERIVATIF                                                                                    7.     SPOT AND DERIVATIVE RECEIVABLES
           Tagihan spot dan derivatif per 31 Desember 2022                                                                  Spot and derivative receivables as of December 31,
           adalah sebagai berikut:                                                                                          2022 are as follows:

                                                                                                               2022

                                                                    Jumlah nosional mata uang                                    Nilai wajar/ Fair values
                                                    Jenis              asing/ National amount
                  Instrumen                        valuta/               foreign currencies                         Tagihan derivatif/                                                            Instruments
                                                  Currency          ( dalam angka penuh/in full                        Derivative          Liabilitas derivatif/
                                                                              amount)                                 receivables          Derivative payable
                                                                                                                            dalam Rupiah/ in Rupiah
           Terkait nilai tukar                                                                                                                                                           Exchange rate related
           Kontrak swap - jual                   USD                                       10.000.000                                    361                                  -           Swap contract - sell
                                                                                                                                         361                                  -
                                                                                                                                                  31 Desember

 8.   SURAT-SURAT BERHARGA                                                                                          8.     MARKETABLE SECURITIES
      a.      Berdasarkan jenis dan mata uang                                                                             a.        By type and currency

                                                                                           2023                                                 2022

                                                                        Nilai nominal/            Nilai tercatat/              Nilai nominal/          Nilai tercatat/
                                                                        Nominal value             Carrying value               Nominal value           Carrying value

              Rupiah:                                                                                                                                                                                                  Rupiah:
              Biaya perolehan dimortisasi                                                                                                                                                                       Amortised cost
                Surat Utang Negara                                             4.784.487                 4.848.046                   11.798.009               12.025.332                                     Government bonds
                Obligasi                                                       2.084.021                 2.089.300                    1.841.700                1.851.074                                                 Bonds
                Sekuritas Rupiah Bank Indonesia                                  603.488                   592.400                            -                        -                     Bank Indonesia Rupiah Securities
                Sukuk Bank Indonesia                                             450.000                   450.000                      400.000                  400.000                             Sukuk of Bank Indonesia
                Sertifikat Investasi Mudharabah Antar Bank                       450.000                   450.000                      325.000                  325.000           Interbank Mudarabah Investment Certificate
                Negotiable Certificate of Deposit (NCD)                           30.000                    28.500                       50.000                   47.237                Negotiable Certificate of Deposit (NCD)
                Reksadana                                                         90.000                    90.000                       90.000                   90.000                                           Reksadana
                Surat kredit berdokumen dalam negeri                              12.913                    12.913                        2.056                    2.056                                         Domestic L/C
                                                                               8.504.909                 8.561.159                   14.506.765               14.740.700
              Mata uang asing:                                                                                                                                                                            Foreign currencies:
                 Wesel                                                               112                       112                          362                      362                                               Bill
                                                                                     112                       112                          362                      362
              Penyisihan kerugian penurunan nilai                                      -                     (511)                            -                    (400)                      Allowance for impairment losses
              Jumlah biaya perolehan diamortisasi                              8.505.021                 8.560.760                   14.507.127               14.740.662                                Total amortized cost


              Nilai wajar melalui penghasilan komprehensif lain                                                                                                            Fair value through other comprehensive income
                 Surat Utang Negara                                            7.727.329                 7.762.560                    8.574.841                8.476.609                             Government bonds
              Jumlah nilai wajar melalui penghasilan                                                                                                                         Total fair value through other comprehensive
              komprehensif lain                                                7.727.329                 7.762.560                    8.574.841                8.476.609                                          income

              Jumlah biaya perolehan diamortisasi dan nilai wajar                                                                                                                 Total amortized cost and fair value through
               melalui penghasilan komprehensif lain                          16.232.350                16.323.320                   23.081.968               23.217.271                        other comprehensive income
              Penyisihan kerugian penurunan nilai                                      -                         -                            -                        -                       Allowance for impairment losses
              Jumlah surat berharga                                           16.232.350                16.323.320                   23.081.968               23.217.271                          Total marketable securities



      b.       Berdasarkan hubungan                                                                                            b.     By relationship

               Pada tanggal 31 Desember 2023 dan 2022,                                                                               As of December 31, 2023 and 2022, there were
               tidak terdapat surat berharga pada pihak                                                                              no marketable securities transactions with related
               berelasi.                                                                                                             parties.

                                                                                                       67
Page 607
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)




 8.    SURAT-SURAT BERHARGA (lanjutan)                                8.      MARKETABLE SECURITIES (continued)

       c.   Berdasarkan penerbit                                              c.     By issuers


                                                        2023                       2022
            Pemerintah Republik Indonesia                1.042.400                 20.501.941                  Government of the Republic of Indonesia
            Bank Indonesia                              12.610.606                    400.000                                         Bank Indonesia
            Perbankan :                                                                                                                     Banking:
             PT Bank Rakyat Indonesia (Persero) Tbk        181.055                   146.035                 PT Bank Rakyat Indonesia (Persero) Tbk
             PT Bank Aceh Syariah                          150.000                   225.000                                  PT Bank Aceh Syariah
             PT Bank Mandiri (Persero) Tbk                 114.000                    27.343                          PT Bank Mandiri (Persero) Tbk
             PT Bank Muamalat Indonesia Tbk                100.000                         -                       PT Bank Muamalat Indonesia Tbk
             PT Bank NTB Syariah                           100.000                         -                                  PT Bank NTB Syariah
             PT Bank Negara Indonesia (Persero) Tbk         80.000                   127.610                 PT Bank Negara Indonesia (Persero) Tbk
             PT Bank Syariah Indonesia Tbk                  70.000                         -                          PT Bank Syariah Indonesia Tbk
             PT Bank Tabungan Negara (Persero) Tbk          55.500                    32.003                 PT Bank Tabungan Negara (Persero) Tbk
             PT Bank Syariah Mega Indonesia                 30.000                         -                        PT Bank Syariah Mega Indonesia
             PT Bank Mandiri Taspen                         29.021                    24.011                                PT Bank Mandiri Taspen
             PT Bank Maybank Indonesia Tbk                  23.000                    33.032                        PT Bank Maybank Indonesia Tbk
             PT Bank Pan Indonesia Tbk                           -                    11.538                             PT Bank Pan Indonesia Tbk
             PT Bank Sinarmas Tbk                                -                   100.000                                 PT Bank Sinarmas Tbk
             PT Bank Pembangunan Daerah                                                                              PT Bank Pembangunan Daerah
               Jawa Barat dan Banten Tbk                          -                   12.219                             Jawa Barat dan Banten Tbk
                                                           932.576                   738.790
            Korporasi                                                                                                                        Corporate:
             PT Semen Indonesia (Persero) Tbk              244.970                    135.454                    PT Semen Indonesia (Persero) Tbk
             PT Astra Sedaya Finance                       197.862                    152.966                              PT Astra Sedaya Finance
             PT Permodalan Nasional Madani (Persero)       194.218                    140.000              PT Permodalan Nasional Madani (Persero)
             PT Pupuk Indonesia (Persero)                  192.203                    192.250                         PT Pupuk Indonesia (Persero)
             PT Sarana Multigriya Finansial (Persero)      133.308                     26.000                PT Sarana Multigriya Finansial (Persero)
             PT Federal International Finance              112.190                     99.615                       PT Federal International Finance
             PT Kereta Api Indonesia (Persero)              90.877                     91.519                     PT Kereta Api Indonesia (Persero)
             PT XL Axiata Tbk                               85.097                     60.000                                      PT XL Axiata Tbk
             PT Perusahaan Listrik Negara (Persero)         83.628                     69.861                PT Perusahaan Listrik Negara (Persero)
             PT Pegadaian (Persero)                         80.000                    480.000                               PT Pegadaian (Persero)
             PT Adira Dinamika Multi Finance Tbk            74.888                     24.803                   PT Adira Dinamika Multi Finance Tbk
             PT Tower Bersama Infrastructure Tbk            69.338                           -                 PT Tower Bersama Infrastructure Tbk
             PT Mandiri Tunas Finance                       58.174                      5.265                             PT Mandiri Tunas Finance
             PT Jasa Marga (Persero) Tbk                    33.158                     63.243                          PT Jasa Marga (Persero) Tbk
             PT BCA Finance                                 30.000                           -                                      PT BCA Finance
             PT Toyota Astra Financial Services             25.000                           -                   PT Toyota Astra Financial Services
             PT Wahana Ottomitra Multiartha Tbk             15.036                           -                  PT Wahana Ottomitra Multiartha Tbk
             Surat kredit berdokumen dalam negeri           12.913                           -                                           Domestic L/C
             PT Telekomunikasi Indonesia Tbk                 5.279                      5.454                      PT Telekomunikasi Indonesia Tbk
             Wesel                                             112                        362                                                     Bill
             PT Indonesia Infrastructure Finance                  -                    30.148                    PT Indonesia Infrastructure Finance
                                                         1.738.249                  1.576.940
            Penyisihan kerugian penurunan nilai               (511)                      (400)                         Allowance for impairment losses
            Jumlah surat-surat berharga                 16.323.320                 23.217.271                              Total marketable securities


                                                           68
Page 608
                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                  and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)



 8.   SURAT-SURAT BERHARGA (lanjutan)                                         8.        MARKETABLE SECURITIES (continued)
      d.   Berdasarkan peringkat                                                        d.     By rating
           Peringkat surat berharga pada tanggal 31                                            The ratings of marketable securities as of
           Desember 2023 dan 2022 adalah sebagai berikut:                                      December 31, 2023 and 2022 are as follows:
                                                                           December 31,
                                                                               2023
                                                         Pemeringkat/       Peringkat/        Nilai tercatat/
                                                          Agencies            Rating         Carrying value
            Rupiah:                                                                                                                                         Rupiah:
              Surat Utang Negara                                 -                 -              12.610.606                                     Goverment Bonds
              Bank Indonesia                                     -                 -               1.042.400                        Certificates of Bank Indonesia
              PT Semen Indonesia (Persero) Tbk               Pefindo          idAA+                  244.970                   PT Semen Indonesia (Persero) Tbk
              PT Astra Sedaya Finance                        Pefindo          idAAA                  197.862                             PT Astra Sedaya Finance
              PT Permodalan Nasional Madani (Persero)            -                 -                 194.218             PT Permodalan Nasional Madani (Persero)
              PT Pupuk Indonesia (Persero)               Fitch Indonesia     AAA(idn)                192.203                        PT Pupuk Indonesia (Persero)
              PT Bank Rakyat Indonesia (Persero) Tbk         Pefindo          idAAA                  181.055              PT Bank Rakyat Indonesia (Persero) Tbk
              PT Bank Aceh Syariah                           Pefindo             idA                 150.000                                PT Bank Aceh Syariah
              PT Sarana Multigriya Finansial (Persero)       Pefindo          idAAA                  133.308               PT Sarana Multigriya Finansial (Persero)
              PT Bank Mandiri (Persero) Tbk                  Pefindo          idAAA                  114.000                       PT Bank Mandiri (Persero) Tbk
              PT Federal International Finance               Pefindo          idAAA                  112.190                      PT Federal International Finance
              PT Bank Muamalat Indonesia Tbk                 Pefindo            idA+                 100.000                     PT Bank Muamalat Indonesia Tbk
              PT Bank NTB Syariah                                -                 -                 100.000                                 PT Bank NTB Syariah
              PT Kereta Api Indonesia (Persero)                  -                 -                  90.877                    PT Kereta Api Indonesia (Persero)
              PT XL Axiata                               Fitch Indonesia     AAA(idn)                 85.097                                          PT XL Axiata
              PT Perusahaan Listrik Negara (Persero)         Pefindo          idAAA                   83.628               PT Perusahaan Listrik Negara (Persero)
              PT Pegadaian (Persero)                         Pefindo          idAAA                   80.000                               PT Pegadaian (Persero)
              PT Bank Negara Indonesia (Persero) Tbk         Pefindo          idAAA                   80.000              PT Bank Negara Indonesia (Persero) Tbk
              PT Adira Dinamika Multi Finance Tbk            Pefindo          idAAA                   74.888                  PT Adira Dinamika Multi Finance Tbk
              PT Bank Syariah Indonesia Tbk                  Pefindo          idAAA                   70.000                       PT Bank Syariah Indonesia Tbk
              PT Tower Bersama Infrastructure            Fitch Indonesia     AA+(idn)                 69.338                     PT Tower Bersama Infrastructure
              PT Mandiri Tunas Finance                       Pefindo          idAA+                   58.174                            PT Mandiri Tunas Finance
              PT Bank Tabungan Negara (Persero) Tbk      Fitch Indonesia     AA+(idn)                 55.500              PT Bank Tabungan Negara (Persero) Tbk
              PT Jasa Marga (Persero) Tbk                    Pefindo           idAA-                  33.158                         PT Jasa Marga (Persero) Tbk
              PT Bank Syariah Mega Indonesia                     -                 -                  30.000                     PT Bank Syariah Mega Indonesia
              PT BCA Finance                                 Pefindo          idAAA                   30.000                                      PT BCA Finance
              PT Bank Mandiri Taspen                         Pefindo          idAAA                   29.021                              PT Bank Mandiri Taspen
              PT Toyota Astra Financial Services         Fitch Indonesia     AAA(idn)                 25.000                   PT Toyota Astra Financial Services
              PT Maybank Indonesia Tbk                       Pefindo          idAAA                   23.000                           PT Maybank Indonesia Tbk
              PT Wahana Ottomitra Multiartha Tbk         Fitch indonesia      AA(idn)                 15.036                  PT Wahana Ottomitra Multiartha Tbk
            Surat kredit berdokumen dalam negeri                 -                 -                  12.913                                         Domestic L/C
              PT Telekomunikasi Indonesia Tbk                Pefindo          idAAA                    5.279                     PT Telekomunikasi Indonesia Tbk
            Jumlah Rupiah                                                                         16.323.719                                          Total Rupiah
            Mata uang asing:                                                                                                                    Foreign currency:
            Wesel ekspor                                                                                 112                                            Export bill
                                                                                                  16.323.831
            Penyisihan kerugian penurunan nilai                                                         (511)                     Allowance for impairment losses
            Jumlah surat-surat berharga                                                           16.323.320                            Total marketable securities




                                                                      69
Page 609
                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                  and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                      (Expressed in millions of Rupiah, unless otherwise stated)


  8.   SURAT-SURAT BERHARGA (lanjutan)                                        8.        MARKETABLE SECURITIES (continued)
       d.   Berdasarkan peringkat (lanjutan)                                           d.   By rating (continued)
                                                                           December 31,
                                                                               2022
                                                         Pemeringkat/       Peringkat/       Nilai tercatat/
                                                          Agencies            Rating        Carrying value
            Rupiah:                                                                                                                                   Rupiah:
              Surat Utang Negara                                 -                -             20.501.941                                  Goverment Bonds
              Bank Indonesia                                     -                -                400.000                     Certificates of Bank Indonesia
              PT Pegadaian (Persero)                         Pefindo          idAAA                480.000                            PT Pegadaian (Persero)
              PT Bank Aceh Syariah                           Pefindo             A                 225.000                             PT Bank Aceh Syariah
              PT Pupuk Indonesia (Persero)               Fitch Indonesia     AAA(idn)              192.250                    PT Pupuk Indonesia (Persero)
              PT Astra Sedaya Finance                        Pefindo          idAAA                152.966                         PT Astra Sedaya Finance
              PT Bank Rakyat Indonesia (Persero) Tbk         Pefindo          idAAA                146.035          PT Bank Rakyat Indonesia (Persero) Tbk
              PT Permodalan Nasional Madani (Persero)            -                -                140.000         PT Permodalan Nasional Madani (Persero)
              PT Semen Indonesia (Persero)                   Pefindo          idAA+                135.454                    PT Semen Indonesia (Persero)
              PT Bank Negara Indonesia (Persero) Tbk         Pefindo          idAAA                127.610          PT Bank Negara Indonesia (Persero) Tbk
              PT Bank Sinarmas Tbk                       Fitch Indonesia         A-                100.000                             PT Bank Sinarmas Tbk
              PT Federal International Finance           Fitch Indonesia     AAA(idn)               99.615                  PT Federal International Finance
              PT Kereta Api Indonesia (Persero)                  -                -                 91.519                PT Kereta Api Indonesia (Persero)
              PT Perusahaan Listrik Negara (Persero)         Pefindo          idAAA                 69.861           PT Perusahaan Listrik Negara (Persero)
              PT Jasa Marga (Persero) Tbk                    Pefindo           idAA-                63.243                     PT Jasa Marga (Persero) Tbk
              PT XL Axiata Tbk                           Fitch Indonesia     AAA(idn)               60.000                                  PT XL Axiata Tbk
              PT Maybank Indonesia Tbk                       Pefindo          idAAA                 33.032                       PT Maybank Indonesia Tbk
              PT Bank Tabungan Negara (Persero) Tbk          Pefindo          idAA+                 32.003          PT Bank Tabungan Negara (Persero) Tbk
              PT Indonesia Infrastructure Finance            Pefindo          idAAA                 30.148               PT Indonesia Infrastructure Finance
              PT Bank Mandiri (Persero) Tbk                  Pefindo          idAAA                 27.343                    PT Bank Mandiri (Persero) Tbk
              PT Sarana Multigriya Finansial (Persero)       Pefindo          idAAA                 26.000           PT Sarana Multigriya Finansial (Persero)
              PT Adira Dinamika Multi Finance Tbk            Pefindo          idAAA                 24.803              PT Adira Dinamika Multi Finance Tbk
              PT Bank Mandiri Taspen                     Fitch indonesia      AA(idn)               24.011                           PT Bank Mandiri Taspen
              PT Bank Pembangunan Daerah                                                                                  PT Bank Pembangunan Daerah
               Jawa Barat dan Banten Tbk                    Pefindo            idAA-                12.219                     Jawa Barat dan Banten Tbk
              PT Bank Pan Indonesia Tbk                     Pefindo             idAA                11.538                       PT Bank Pan Indonesia Tbk
              PT Telekomunikasi Indonesia Tbk               Pefindo           idAAA                  5.454                 PT Telekomunikasi Indonesia Tbk
              PT Mandiri Tunas Finance                      Pefindo           idAA+                  5.265                        PT Mandiri Tunas Finance
            Jumlah Rupiah                                                                       23.217.309                                       Total Rupiah

            Mata uang asing:                                                                                                              Foreign currency:
            Wesel ekspor                                                                               362                                        Export bill
                                                                                                23.217.671
            Penyisihan kerugian penurunan nilai                                                       (400)                 Allowance for impairment losses
            Jumlah surat-surat berharga                                                         23.217.271                        Total marketable securities




                                                                    70
Page 610
                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)


 8.   SURAT-SURAT BERHARGA (lanjutan)                                                  8.   MARKETABLE SECURITIES (continued)
      e.    Jangka waktu dan tingkat bunga                                                  e.        By maturity and interest rates
                                                              31 Desember/                  31 Desember/
                                                              December 31,                  December 31,
                                                                  2023                          2022
            Kurang dari 1 tahun                                        11.668.277                        986.769                                        Less than 1 year
            1 - 5 tahun                                                 4.655.554                     22.230.902                                              1 - 5 years
                                                                       16.323.831                     23.217.671
            Dikurangi: Penyisihan kerugian                                                                                                           Less: Allowance for
             penurunan nilai                                                (511)                            (400)                                  impairment losses
            Jumlah surat-surat berharga                                16.323.320                     23.217.271                           Total marketable securities

            Tingkat bunga per tahun:                                                                                                          Interest rates per annum:
                                                              31 Desember/                  31 Desember/
                                                                  2023                          2022
            Rupiah                                                                                                                                               Rupiah
             Surat Utang Negara                                   5,72%                           6,01%                                             Government Bonds
             Obligasi                                             6,40%                           7,11%                                                            Bond
             Sukuk Bank Indonesia                                 6,19%                           3,85%                                          Bank Indonesia Sukuk
             Sertifikat Investasi Mudharabah Antarbank            6,24%                           3,56%                   Interbank Mudharabah investment Certificate
             Negotiable Cerificate of Deposit (NCD)               6,53%                           5,15%                          Negotiable Cerificate of Deposit (NCD)
             Reksadana                                            8,90%                           4,94%                                                    Mutual Funds

       f.   Perubahan laba (rugi) yang belum direalisasi                                         f.     The movement of unrealized gains (losses)
            Perubahan laba (rugi) yang belum direalisasi dari                                           The movement of unrealized gains (losses) from
            perubahan nilai wajar surat berharga untuk tujuan                                           the change in fair value of marketable securities
            investasi yang diukur pada nilai wajar melalui                                              measured at fair value through other
            penghasilan komprehensif lain adalah sebagai                                                comprehensive income are as follows:
            berikut:
                                                                December 31,                          December 31,
                                                                    2023                                  2022
            Saldo awal                                                     (142.034)                                 258.577                         Beginning balance
            Penambahan laba (rugi) yang belum                                                                                        Addition of unrealized gains (loss)
             direalisasi selama tahun berjalan                                63.074                               (400.611)                          during the year
            Jumlah sebelum pajak tangguhan                                  (78.960)                               (142.034)                  Total before deferred tax
            Pajak tangguhan                                                   15.002                                  26.986                               Deferred tax
            Saldo akhir bersih                                              (63.958)                               (115.048)                       Ending balance net

       g.   Kolektibilitas                                                                       g.      Collectibility
            Pada tanggal 31 Desember 2023 dan 2022,                                                      As of December 31, 2023 and 2022, the
            kolektibilitas surat-surat berharga adalah dalam                                             collectibility of securities are classified as
            kategori lancar.                                                                             current.
       h.   Nilai tercatat bruto                                                                 h.      Gross carrying amount
                                                                                    31 Desember/
                                                                                    December 31,
                                                                                        2023

                                                     Tahap 1/               Tahap 2/              Tahap 3/               Jumlah/
                                                     Stage 1                Stage 2               Stage 3                 Total


            Rupiah:                                                                                                                                                Rupiah:
             Surat Utang Negara                          12.753.006                     -                      -          12.753.006                Government bonds
             Obligasi                                     2.089.300                     -                      -           2.089.300                            Bonds
             Sekuritas Rupiah Bank Indonesia                450.000                     -                      -             450.000 Bank Indonesia Rupiah Securities
             Sukuk Bank Indonesia                           450.000                     -                      -             450.000             Bank Indonesia Sukuk
             Sertifikat Investasi Mudharabah                                                                                                       Interbank Mudarabah
              Antar Bank (SIMA)                            450.000                      -                      -               450.000            Investment Cerificate
             Negotiable Certificate of Deposit              28.500                      -                      -                28.500   Negotiable Certificate of Deposit
             Surat kredit berdokumen dalam negeri           12.913                      -                      -                12.913                      Domestic L/C
             Reksadana                                      90.000                      -                      -                90.000                       Mutual funds
            Mata uang asing:                                                                                                                         Foreign currencies:
             Wesel                                              112                     -                      -                 112                                    Bill
            Jumlah surat berharga                        16.323.831                     -                      -          16.323.831           Total marketable securities
            Penyisihan kerugian penurunan nilai                (511)                    -                      -                (511)     Allowance for impairment losses
            Neto                                         16.323.320                     -                      -          16.323.320                                   Net



                                                                             71
Page 611
                                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


 8.    SURAT-SURAT BERHARGA (lanjutan)                                            8.         MARKETABLE SECURITIES (continued)

       h.   Nilai tercatat bruto (lanjutan)                                                  h.     Gross carrying amount (continued)
                                                                                      2022

                                                    Tahap 1/          Tahap 2/               Tahap 3/         Jumlah/
                                                    Stage 1           Stage 2                Stage 3           Total


            Rupiah:                                                                                                                                     Rupiah:
             Surat Utang Negara                       20.501.941                  -                     -        20.501.941                 Government bonds
             Obligasi                                  1.851.074                  -                     -         1.851.074                              Bonds
             Sukuk Bank Indonesia                        400.000                  -                     -           400.000             Bank Indonesia Sukuk
             Sertifikat Investasi Mudharabah                                                                                             Interbank Mudarabah
              Antar Bank (SIMA)                          325.000                  -                     -          325.000             Investment Cerificate
             Reksadana                                    90.000                  -                     -           90.000                        Mutual funds
             Negotiable Certificate of Deposit            47.237                  -                     -           47.237    Negotiable Certificate of Deposit
             Surat kredit berdokumen dalam negeri          2.056                  -                     -            2.056                       Domestic L/C
            Mata uang asing:                                                                                                               Foreign currencies:
             Wesel                                             362                -                     -               362                                  Bill
             Surat berharga yang dijual dengan                                                                                      Marketable securities sold
            Penyisihan kerugian penurunan nilai            (400)                  -                     -             (400)    Allowance for impairment losses
            Neto                                      23.217.271                  -                     -        23.217.271                                 Net



       i.   Cadangan kerugian penurunan nilai atas surat                                     i.     Allowance for impairment                   losses         for
            berharga                                                                                marketable securities

                                                                     2023                         2022
            Saldo awal tahun                                                400                      5.944                       Balance at beginning of year
            Penyisihan (pemulihan) tahun berjalan                           111                     (5.544)               Provision (recovery) during the year
            Saldo akhir tahun                                               511                         400                            Balance at end of year


            Cadangan kerugian penurunan nilai atas surat                                            Allowance for impairment losses for marketable
            berharga adalah sebagai berikut:                                                        securities are as follows:

            Jumlah minimum penyisihan kerugian penurunan                                            Minimum allowance for impairment losses for
            nilai surat-surat berharga yang wajib dibentuk                                          marketable securities required by Bank
            sesuai ketentuan Bank Indonesia pada tanggal                                            Indonesia as of December 31, 2023 and 2022
            31 Desember 2023 dan 2022 masing-masing                                                 amounted to Rp26,708 and Rp23,157,
            adalah sebesar Rp26.708 dan Rp23.157.                                                   respectively.

            Manajemen      berpendapat     bahwa    jumlah                                          Management believes that the allowance for
            penyisihan kerugian penurunan nilai untuk                                               impairment losses on marketable securities is
            menutup kemungkinan kerugian yang timbul                                                adequate.
            akibat adanya surat berharga adalah memadai.




                                                                        72
Page 612
                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                         (Expressed in millions of Rupiah, unless otherwise stated)


9.    SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                9.        MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI                                                                   REVERSE REPURCHASE AGREEMENT
      Pada tanggal 31 Desember 2023 dan 2022 surat                                     As of December 31, 2023 and 2022, marketable
      berharga yang dijual dengan janji dibeli kembali                                 securities for sale with reverse repurchase agreement
      adalah Rp8.303.663 dan Rp4.095.066.                                              amount of Rp8,303,663 and Rp 4,095,066.
                                                                      2023
                                                                                         Premium (diskonto)           Laba (rugi) yang
                                                                                             yang belum                    belum
 Jenis surat                                                                                diamortisasi/               direalisasi/
  berharga/     Nilai nominal/        Tanggal dimulai/     Tanggal jatuh tempo/         Unamortized premium           Unrealised gain        Nilai bersih/
 Securities     Nominal value            Start date           Maturity date                  (discount)                    (loss)             Net value
Surat Utang Negara/Government Debt
Biaya perolehan diamortisasi/Amortised cost
                                         18 Januari/            15 Januari/
PBS003                  25.000                                                                              (254)                     -             24.746
                                      January 18 , 2023      January 15 , 2027
                                         18 Januari/            15 Januari/
PBS003                  50.000                                                                              (509)                     -             49.491
                                      January 18 , 2023      January 15 , 2027
                                         25 Januari/            15 Januari/
PBS003                  10.000                                                                              (113)                     -              9.887
                                      January 25 , 2023      January 15 , 2027
                                         25 Januari/            15 Januari/
PBS003                  50.000                                                                              (629)                     -             49.371
                                      January 25 , 2023      January 15 , 2027
                                         25 Januari/            15 Januari/
PBS003                  50.000                                                                              (629)                     -             49.371
                                      January 25 , 2023      January 15 , 2027
                                         26 Januari/            15 Januari/
PBS003                  15.000                                                                              (177)                     -             14.823
                                      January 26 , 2023      January 15 , 2027
                                         14 Januari/           15 Oktober/
PBS017                100.000                                                                              1.207                      -            101.207
                                      January 14 , 2021      October 15 , 2025
                                         14 Januari/           15 Oktober/
PBS017                100.000                                                                              1.220                      -            101.220
                                      January 14 , 2021      October 15 , 2025
                                         14 Januari/           15 Oktober/
PBS017                  93.226                                                                              976                       -             94.202
                                      January 14 , 2021      October 15 , 2025
                                        11 Februari/           15 Oktober/
PBS017                  50.000                                                                              564                       -             50.564
                                      February 11 , 2021     October 15 , 2025
                                        11 Februari/           15 Oktober/
PBS017                  50.000                                                                              564                       -             50.564
                                      February 11 , 2021     October 15 , 2025
                                        11 Februari/           15 Oktober/
PBS017                100.000                                                                              1.167                      -            101.167
                                      February 11 , 2021     October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                  30.000                                                                              166                       -             30.166
                                        April 8 , 2021       October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                  50.000                                                                              268                       -             50.268
                                        April 8 , 2021       October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                  20.000                                                                              111                       -             20.111
                                        April 8 , 2021       October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                  20.000                                                                                91                      -             20.091
                                        April 8 , 2021       October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                  50.000                                                                              272                       -             50.272
                                        April 8 , 2021       October 15 , 2025
                                           9 April/            15 Oktober/
PBS017                  30.000                                                                              165                       -             30.165
                                        April 9 , 2021       October 15 , 2025
                                           8 April/            15 Oktober/
PBS017                   1.450                                                                                 8                      -              1.458
                                        April 8 , 2021       October 15 , 2025
Dipindahkan/Brought forward                                                                                4.470                      -             899.146




                                                                        73
Page 613
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                  (Expressed in millions of Rupiah, unless otherwise stated)


9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                     9.        MARKETABLE SECURITIES FOR SALE WITH
     DIBELI KEMBALI (lanjutan)                                                             REVERSE     REPURCHASE    AGREEMENT
                                                                                           (continued)
                                                                               2023
                                                                                                Premium (diskonto)         Laba (rugi) yang
                                                                                                    yang belum                  belum
     Jenis surat                                                                                   diamortisasi/             direalisasi/
      berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/       Unamortized premium         Unrealised gain        Nilai bersih/
     Securities      Nominal value            Start date               Maturity date                (discount)                  (loss)             Net value
     Surat Utang Negara/Government Debt (lanjutan)/(continued)
     Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
     Pindahan/Carry forward                                                                                      4.470                     -             899.146
                                                22 April/               15 Oktober/
     PBS017                   25.000                                                                              154                      -             25.154
                                             April 22 , 2021          October 15 , 2025
                                                22 April/               15 Oktober/
     PBS017                   25.000                                                                              178                      -             25.178
                                             April 22 , 2021          October 15 , 2025
                                                23 April/               15 Oktober/
     PBS017                   10.000                                                                               74                      -             10.074
                                             April 23 , 2021          October 15 , 2025
                                                 6 Mei/                 15 Oktober/
     PBS017                   50.000                                                                              356                      -             50.356
                                              May 6 , 2021            October 15 , 2025
                                                14 Juni/                15 Oktober/
     PBS017                   40.000                                                                              500                      -             40.500
                                             June 14 , 2021           October 15 , 2025
                                                17 Juni/                15 Oktober/
     PBS017                   10.000                                                                              124                      -             10.124
                                             June 17 , 2021           October 15 , 2025
                                                17 Juni/                15 Oktober/
     PBS017                   10.000                                                                              124                      -             10.124
                                             June 17 , 2021           October 15 , 2025
                                                17 Juni/                15 Oktober/
     PBS017                   10.000                                                                              124                      -             10.124
                                             June 17 , 2021           October 15 , 2025
                                              13 Agustus/               15 Oktober/
     PBS017                   20.000                                                                              351                      -             20.351
                                            August 13 , 2021          October 15 , 2025
                                              13 Agustus/               15 Oktober/
     PBS017                   55.324                                                                              991                      -             56.315
                                            August 13 , 2021          October 15 , 2025
                                               4 Oktober/               15 Oktober/
     PBS017                   50.000                                                                              887                      -             50.887
                                            October 4 , 2021          October 15 , 2025
                                                28 Mei/                 15 Oktober/
     PBS026                   50.000                                                                              478                      -             50.478
                                             May 28 , 2021            October 15 , 2024
                                                28 Mei/                 15 Oktober/
     PBS026                   25.000                                                                              255                      -             25.255
                                             May 28 , 2021            October 15 , 2024
     Subjumlah/Subtotal                                                                                          9.065                     -           1.284.065




                                                                            74
Page 614
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


9.      SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                    9.       MARKETABLE SECURITIES FOR SALE WITH
        DIBELI KEMBALI (lanjutan)                                                           REVERSE     REPURCHASE    AGREEMENT
                                                                                            (continued)

                                                                               2023
                                                                                                 Premium (diskonto)          Laba (rugi) yang
                                                                                                     yang belum                   belum
     Jenis surat                                                                                    diamortisasi/              direalisasi/
      berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/        Unamortized premium          Unrealised gain        Nilai bersih/
     Securities      Nominal value            Start date               Maturity date                 (discount)                   (loss)             Net value
     Surat Utang Negara/Government Debt (lanjutan)/(continued)
     Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
     Pindahan/Carry forward                                                                                        9.065                      -          1.284.065
                                                31 Mei/                 15 Oktober/
     PBS026                   30.000                                                                                296                       -             30.296
                                             May 31 , 2021            October 15 , 2024
                                                31 Mei/                 15 Oktober/
     PBS026                   30.000                                                                                316                       -             30.316
                                             May 31 , 2021            October 15 , 2024
                                                31 Mei/                 15 Oktober/
     PBS026                   25.000                                                                                247                       -             25.247
                                             May 31 , 2021            October 15 , 2024
                                                16 Juni/                15 Oktober/
     PBS026                   35.000                                                                                456                       -             35.456
                                             June 16 , 2021           October 15 , 2024
                                                16 Juni/                15 Oktober/
     PBS026                   20.000                                                                                260                       -             20.260
                                             June 16 , 2021           October 15 , 2024
                                                16 Juni/                15 Oktober/
     PBS026                   30.000                                                                                390                       -             30.390
                                             June 16 , 2021           October 15 , 2024
                                                16 Juni/                15 Oktober/
     PBS026                   25.000                                                                                322                       -             25.322
                                             June 16 , 2021           October 15 , 2024
                                                16 Juni/                15 Oktober/
     PBS026                   20.000                                                                                258                       -             20.258
                                             June 16 , 2021           October 15 , 2024
                                            15 September/               15 Oktober/
     PBS026                   50.000                                                                                748                       -             50.748
                                          September 15 , 2021         October 15 , 2024
                                            15 September/               15 Oktober/
     PBS026                   10.000                                                                                150                       -             10.150
                                          September 15 , 2021         October 15 , 2024
                                               4 Oktober/               15 Oktober/
     PBS026                   50.000                                                                                741                       -             50.741
                                            October 4 , 2021          October 15 , 2024
                                               4 Oktober/               15 Oktober/
     PBS026                   25.000                                                                                367                       -             25.367
                                            October 4 , 2021          October 15 , 2024
                                               4 Oktober/               15 Oktober/
     PBS026                   50.000                                                                                735                       -             50.735
                                            October 4 , 2021          October 15 , 2024
                                               4 Oktober/               15 Oktober/
     PBS026                   25.000                                                                                385                       -             25.385
                                            October 4 , 2021          October 15 , 2024
                                              19 Januari/                 15 Juli/
     PBS030                   50.000                                                                             (1.404)                      -             48.596
                                           January 19 , 2023          October 15 , 2028
                                              24 Januari/                 15 Juli/
     PBS030                   20.000                                                                               (537)                      -             19.463
                                           January 24 , 2023          October 15 , 2028
                                              27 Januari/                 15 Juli/
     PBS030                    3.000                                                                                (84)                      -              2.916
                                           January 27 , 2023          October 15 , 2028
                                              6 Februari/                 15 Juli/
     PBS030                   13.000                                                                               (317)                      -             12.683
                                           February 6 , 2023          October 15 , 2028
     Subjumlah/Subtotal                                                                                           12.396                      -          1.798.396




                                                                              75
Page 615
                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                           (Expressed in millions of Rupiah, unless otherwise stated)


9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                9.        MARKETABLE SECURITIES FOR SALE WITH
     DIBELI KEMBALI (lanjutan)                                                        REVERSE     REPURCHASE    AGREEMENT
                                                                                      (continued)
                                                                          2023
                                                                                          Premium (diskonto)         Laba (rugi) yang
                                                                                              yang belum                  belum
     Jenis surat                                                                             diamortisasi/             direalisasi/
      berharga/      Nilai nominal/        Tanggal dimulai/    Tanggal jatuh tempo/      Unamortized premium         Unrealised gain        Nilai bersih/
     Securities      Nominal value            Start date          Maturity date               (discount)                  (loss)             Net value
     Surat Utang Negara/Government Debt
     Biaya perolehan diamortisasi/Amortised cost
     Pindahan/Carry forward                                                                               12.396                     -           1.798.396
                                              6 Februari/            15 Juli/
     PBS030                   14.000                                                                        (339)                    -             13.661
                                           February 6 , 2023      Juli 15 , 2028
                                                7 April/             15 Juli/
     PBS031                   20.000                                                                         (66)                    -             19.934
                                             April 7 , 2022       Juli 15 , 2024
                                                7 April/             15 Juli/
     PBS031                   20.000                                                                         (66)                    -             19.934
                                             April 7 , 2022       Juli 15 , 2024
                                                 1 Juli/             15 Juli/
     PBS031                   13.000                                                                         (89)                    -             12.911
                                              July 1 , 2022       Juli 15 , 2024
                                                28 Juli/             15 Juli/
     PBS031                   30.000                                                                        (292)                    -             29.708
                                             July 28 , 2022       Juli 15 , 2024
                                              10 Agustus/            15 Juli/
     PBS031                    7.000                                                                         (64)                    -              6.936
                                           August 10 , 2022       Juli 15 , 2024
                                              22 Agustus/            15 Juli/
     PBS031                   10.000                                                                         (73)                    -              9.927
                                           August 22 , 2022       Juli 15 , 2024
                                              18 Januari/         15 Agustus/
     PBS036                   50.000                                                                        (613)                    -             49.387
                                           January 18 , 2023     August 15, 2025
                                              19 Januari/         15 Agustus/
     PBS036                   10.000                                                                        (136)                    -              9.864
                                           January 19 , 2023     August 15, 2025
                                              20 Januari/         15 Agustus/
     PBS036                   20.000                                                                        (259)                    -             19.741
                                           January 20 , 2023     August 15, 2025
                                              20 Januari/         15 Agustus/
     PBS036                   20.000                                                                        (259)                    -             19.741
                                           January 20 , 2023     August 15, 2025
                                                30 Juni/            15 Mei/
     FR0059                   50.000                                                                       1.951                     -             51.951
                                            June 30 , 2021        May 15 , 2027
                                                30 Juni/            15 Mei/
     FR0059                   50.000                                                                       1.921                     -             51.921
                                            June 30 , 2021        May 15 , 2027
                                                 1 Juli/            15 Mei/
     FR0059                   15.000                                                                        534                      -             15.534
                                              July 1 , 2021       May 15 , 2027
                                                 1 Juli/            15 Mei/
     FR0059                   10.000                                                                        356                      -             10.356
                                              July 1 , 2021       May 15 , 2027
     Subjumlah/Subtotal                                                                                   14.900                     -           2.139.900




                                                                       76
Page 616
                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                       9.       MARKETABLE SECURITIES FOR SALE WITH
     DIBELI KEMBALI (lanjutan)                                                              REVERSE     REPURCHASE    AGREEMENT
                                                                                            (continued)

                                                                                   2023
                                                                                                   Premium (diskonto)         Laba (rugi) yang
                                                                                                       yang belum                  belum
       Jenis surat                                                                                    diamortisasi/             direalisasi/
        berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/        Unamortized premium         Unrealised gain        Nilai bersih/
       Securities      Nominal value            Start date               Maturity date                 (discount)                  (loss)             Net value
       Surat Utang Negara/Government Debt (lanjutan)/(continued)
       Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
       Pindahan/Carry forward                                                                                      14.900                     -           2.139.900
                                                    1 Juli/                   15 Mei/
       FR0059                   25.000                                                                               889                      -             25.889
                                                July 1 , 2021               May 15 , 2027
                                                    1 Juli/                   15 Mei/
       FR0059                   10.000                                                                               344                      -             10.344
                                                July 1 , 2021               May 15 , 2027
                                                    1 Juli/                   15 Mei/
       FR0059                   10.000                                                                               344                      -             10.344
                                                July 1 , 2021               May 15 , 2027
                                                    1 Juli/                   15 Mei/
       FR0059                   20.000                                                                               738                      -             20.738
                                                July 1 , 2021               May 15 , 2027
                                                    1 Juli/                   15 Mei/
       FR0059                   10.000                                                                               344                      -             10.344
                                                July 1 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   20.000                                                                               793                      -             20.793
                                               July 19 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   30.000                                                                             1.206                      -             31.206
                                               July 19 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   10.000                                                                               430                      -             10.430
                                               July 19 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   20.000                                                                               859                      -             20.859
                                               July 19 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   10.000                                                                               402                      -             10.402
                                               July 19 , 2021               May 15 , 2027
                                                   19 Juli/                   15 Mei/
       FR0059                   10.000                                                                               430                      -             10.430
                                               July 19 , 2021               May 15 , 2027
                                                   15 Juli/                   15 Mei/
       FR0059                   25.000                                                                               967                      -             25.967
                                               July 15 , 2021               May 15 , 2027
                                                   15 Juli/                   15 Mei/
       FR0059                   25.000                                                                               967                      -             25.967
                                               July 15 , 2021               May 15 , 2027
                                                   30 Juli/                   15 Mei/
       FR0059                   50.000                                                                             2.065                      -             52.065
                                               July 30 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   30.000                                                                             1.367                      -             31.367
                                              August 9 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               912                      -             20.912
                                              August 9 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   50.000                                                                             2.264                      -             52.264
                                              August 9 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   10.000                                                                               456                      -             10.456
                                              August 9 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               971                      -             20.971
                                              August 9 , 2021               May 15 , 2027
                                                 9 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               900                      -             20.900
                                              August 9 , 2021               May 15 , 2027
                                                10 Agustus/                   15 Mei/
       FR0059                   30.000                                                                             1.438                      -             31.438
                                              August 10 , 2021              May 15 , 2027
                                                10 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               947                      -             20.947
                                              August 10 , 2021              May 15 , 2027
                                                13 Agustus/                   15 Mei/
       FR0059                   10.000                                                                               422                      -             10.422
                                              August 13 , 2021              May 15 , 2027
                                                10 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               843                      -             20.843
                                              August 10 , 2021              May 15 , 2027
                                                18 Agustus/                   15 Mei/
       FR0059                   20.000                                                                               839                      -             20.839
                                              August 18 , 2021              May 15 , 2027
       Subjumlah/Subtotal                                                                                          37.037                     -           2.687.037




                                                                              77
Page 617
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                    (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                         9.      MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                               REVERSE REPURCHASE AGREEMENT (continued)

                                                                                    2023
                                                                                                   Premium (diskonto)         Laba (rugi) yang
                                                                                                       yang belum                  belum
       Jenis surat                                                                                    diamortisasi/             direalisasi/
        berharga/     Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/         Unamortized premium         Unrealised gain       Nilai bersih/
       Securities     Nominal value            Start date               Maturity date                  (discount)                  (loss)            Net value
      Surat Utang Negara/Government Debt (lanjutan)/(continued)
      Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
      Pindahan/Carry forward                                                                                      37.037                     -           2.687.037
                                                23 Agustus/                   15 Mei/
       FR0059                  40.000                                                                              1.706                     -             41.706
                                             August 23 , 2021              May 15 , 2027
                                                23 Agustus/                   15 Mei/
       FR0059                  30.000                                                                              1.279                     -             31.279
                                             August 23 , 2021              May 15 , 2027
                                                23 Agustus/                   15 Mei/
       FR0059                  20.000                                                                                853                     -             20.853
                                             August 23 , 2021              May 15 , 2027
                                                23 Agustus/                   15 Mei/
       FR0059                  10.000                                                                                426                     -             10.426
                                             August 23 , 2021              May 15 , 2027
                                              17 November/                    15 Mei/
       FR0059                  50.000                                                                              2.300                     -             52.300
                                            November 17 , 2021             May 15 , 2027
                                              19 November/                    15 Mei/
       FR0059                  40.000                                                                              1.957                     -             41.957
                                            November 19 , 2021             May 15 , 2027
                                              19 November/                    15 Mei/
       FR0059                  30.000                                                                              1.391                     -             31.391
                                            November 19 , 2021             May 15 , 2027
                                                12 Januari/                   15 Mei/
       FR0059                  25.000                                                                              1.041                     -             26.041
                                             January 12 , 2022             May 15 , 2027
                                                12 Januari/                   15 Mei/
       FR0059                  25.000                                                                              1.041                     -             26.041
                                             January 12 , 2022             May 15 , 2027
                                                20 Januari/                   15 Mei/
       FR0059                  10.000                                                                                402                     -             10.402
                                             January 20 , 2022             May 15 , 2027
                                                20 Januari/                   15 Mei/
       FR0059                  50.000                                                                              2.012                     -             52.012
                                             January 20 , 2022             May 15 , 2027
                                                20 Januari/                   15 Mei/
       FR0059                  20.000                                                                                444                     -             20.444
                                             January 20 , 2022             May 15 , 2027
                                                   9 Juni/                    15 Mei/
       FR0081                  10.000                                                                                 75                     -             10.075
                                               June 9 , 2022               May 15 , 2027
                                                 23 Maret/                    15 Juni/
       FR0081                  10.000                                                                                 75                     -             10.075
                                              March 23 , 2021              June 15 , 2025
                                                 23 Maret/                    15 Juni/
       FR0081                  10.000                                                                                 75                     -             10.075
                                              March 23 , 2021              June 15 , 2025
                                                 23 Maret/                    15 Juni/
       FR0081                  20.000                                                                                209                     -             20.209
                                              March 23 , 2021              June 15 , 2025
                                                  15 April/                   15 Juni/
       FR0081                  10.000                                                                                101                     -             10.101
                                               April 15 , 2021             June 15 , 2025
                                                  15 April/                   15 Juni/
       FR0081                  20.000                                                                                202                     -             20.202
                                               April 15 , 2021             June 15 , 2025
                                                  15 April/                   15 Juni/
       FR0081                  50.000                                                                                                        -             50.929
                                               April 15 , 2021             June 15 , 2025                            929
                                                  16 Juni/                    15 Juni/
       FR0081                  25.000                                                                                                        -             25.446
                                              June 16 , 2021               June 15 , 2025                            446
                                                  17 Juni/                    15 Juni/
       FR0081                  50.000                                                                                                        -             50.892
                                              June 17 , 2021               June 15 , 2025                           892
      Subjumlah/Subtotal                                                                                          54.895                     -           3.259.895




                                                                              78
Page 618
                                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                            (Expressed in millions of Rupiah, unless otherwise stated)


 9.    SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                       9.   MARKETABLE SECURITIES FOR SALE WITH
       DIBELI KEMBALI (lanjutan)                                                          REVERSE REPURCHASE AGREEMENT (continued)


                                                                              2023
                                                                                              Premium (diskonto)           Laba (rugi) yang
                                                                                                  yang belum                    belum
  Jenis surat                                                                                    diamortisasi/               direalisasi/
   berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/        Unamortized premium           Unrealised gain         Nilai bersih/
  Securities      Nominal value            Start date               Maturity date                 (discount)                    (loss)              Net value
  Surat Utang Negara/Government Debt (lanjutan)/(continued)
  Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
  Pindahan/Carry forward                                                                                       54.895                       -           3.259.895
                                             29 Juni/                     15 Juni/
  FR0081                   25.000                                                                                 477                       -             25.477
                                          June 29 , 2021               June 15 , 2025
                                             29 Juni/                     15 Juni/
  FR0081                   20.000                                                                                 385                       -             20.385
                                          June 29 , 2021               June 15 , 2025
                                             29 Juni/                     15 Juni/
  FR0081                   30.000                                                                                 614                       -             30.614
                                          June 29 , 2021               June 15 , 2025
                                             29 Juni/                     15 Juni/
  FR0081                   50.000                                                                                 963                       -             50.963
                                          June 29 , 2021               June 15 , 2025
                                             29 Juni/                     15 Juni/
  FR0081                   10.000                                                                                 193                       -             10.193
                                          June 29 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 197                       -             10.197
                                          July 01 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 186                       -             10.186
                                          July 01 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   30.000                                                                                 557                       -             30.557
                                          July 01 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   50.000                                                                                 919                       -             50.919
                                          July 01 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   13.000                                                                                 257                       -             13.257
                                          July 01 , 2021               June 15 , 2025
                                             01 Juli/                     15 Juni/
  FR0081                   37.000                                                                                 687                       -             37.687
                                          July 01 , 2021               June 15 , 2025
                                             05 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 184                       -             10.184
                                          July 05 , 2021               June 15 , 2025
                                             05 Juli/                     15 Juni/
  FR0081                   20.000                                                                                 368                       -             20.368
                                          July 05 , 2021               June 15 , 2025
                                             05 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 184                       -             10.184
                                          July 05 , 2021               June 15 , 2025
                                             05 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 184                       -             10.184
                                          July 05 , 2021               June 15 , 2025
                                             13 Juli/                     15 Juni/
  FR0081                   50.000                                                                                 954                       -             50.954
                                          July 13 , 2021               June 15 , 2025
                                             30 Juli/                     15 Juni/
  FR0081                   20.000                                                                                 416                       -             20.416
                                          July 30 , 2021               June 15 , 2025
                                             30 Juli/                     15 Juni/
  FR0081                   10.000                                                                                 223                       -             10.223
                                          July 30 , 2021               June 15 , 2025
                                           02 Agustus/                    15 Juni/
  FR0081                   30.000                                                                                 637                       -             30.637
                                         August 02 , 2021              June 15 , 2025
                                           02 Agustus/                    15 Juni/
  FR0081                   50.000                                                                               1.062                       -             51.062
                                         August 02 , 2021              June 15 , 2025
                                           02 Agustus/                    15 Juni/
  FR0081                   10.000                                                                                 212                       -             10.212
                                         August 02 , 2021              June 15 , 2025
                                           02 Agustus/                    15 Juni/
  FR0081                                                                                                                                    -             40.849
                           40.000        August 02 , 2021              June 15 , 2025                             849
                                           02 Agustus/                    15 Juni/
  FR0081                                                                                                                                    -             51.062
                           50.000        August 02 , 2021              June 15 , 2025                           1.062
                                           02 Agustus/                    15 Juni/
  FR0081                                                                                                                                    -             20.425
                           20.000        August 02 , 2021              June 15 , 2025                            425
  Subjumlah/Subtotal                                                                                           67.089                       -           3.887.089




                                                                            79
Page 619
                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                (Expressed in millions of Rupiah, unless otherwise stated)


 9.    SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                     9.     MARKETABLE SECURITIES FOR SALE WITH
       DIBELI KEMBALI (lanjutan)                                                          REVERSE REPURCHASE AGREEMENT (continued)

                                                                            2023
                                                                                              Premium (diskonto)          Laba (rugi) yang
                                                                                                  yang belum                   belum
  Jenis surat                                                                                    diamortisasi/              direalisasi/
   berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/        Unamortized premium          Unrealised gain        Nilai bersih/
  Securities      Nominal value            Start date               Maturity date                  (discount)                  (loss)             Net value
  Surat Utang Negara/Government Debt (lanjutan)/(continued)
  Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
  Pindahan/Carry forward                                                                                      67.089                      -           3.887.089
                                            03 Agustus/                 15 Juni/
  FR0081                   50.000                                                                             1.062                       -             51.062
                                         August 03 , 2021            June 15 , 2025
                                            05 Agustus/                 15 Juni/
  FR0081                   10.000                                                                               217                       -             10.217
                                         August 05 , 2021            June 15 , 2025
                                            09 Agustus/                 15 Juni/
  FR0081                   20.000                                                                               423                       -             20.423
                                         August 09 , 2021            June 15 , 2025
                                            10 Agustus/                 15 Juni/
  FR0081                   50.000                                                                             1.058                       -             51.058
                                         August 10 , 2021            June 15 , 2025
                                            10 Agustus/                 15 Juni/
  FR0081                   30.000                                                                               635                       -             30.635
                                         August 10 , 2021            June 15 , 2025
                                            12 Januari/                 15 Juni/
  FR0081                   50.000                                                                             1.069                       -             51.069
                                         January 12 , 2022           June 15 , 2025
                                             31 Maret/                15 Februari/
  FR0084                   20.000                                                                               435                       -             20.435
                                          March 31 , 2021          February 15 , 2026
                                             31 Maret/                15 Februari/
  FR0084                   10.000                                                                               236                       -             10.236
                                          March 31 , 2021          February 15 , 2026
                                              13 April/               15 Februari/
  FR0084                   50.000                                                                             1.239                       -             51.239
                                           April 13 , 2021         February 15 , 2026
                                              15 April/               15 Februari/
  FR0084                   20.000                                                                               483                       -             20.483
                                           April 15 , 2021         February 15 , 2026
                                              30 April/               15 Februari/
  FR0084                   20.000                                                                               509                       -             20.509
                                           April 30 , 2021         February 15 , 2026
                                              11 Juni/                15 Februari/
  FR0084                   40.000                                                                             1.361                       -             41.361
                                          June 11 , 2021           February 15 , 2026
                                              11 Juni/                15 Februari/
  FR0084                   10.000                                                                               340                       -             10.340
                                          June 11 , 2021           February 15 , 2026
                                              11 Juni/                15 Februari/
  FR0084                   10.000                                                                               340                       -             10.340
                                          June 11 , 2021           February 15 , 2026
                                              11 Juni/                15 Februari/
  FR0084                   10.000                                                                               340                       -             10.340
                                          June 11 , 2021           February 15 , 2026
                                              11 Juni/                15 Februari/
  FR0084                   30.000                                                                             1.021                       -             31.021
                                          June 11 , 2021           February 15 , 2026
                                              14 Juni/                15 Februari/
  FR0084                   10.000                                                                               348                       -             10.348
                                          June 14 , 2021           February 15 , 2026
                                            06 Agustus/               15 Februari/
  FR0084                   20.000                                                                               765                       -             20.765
                                         August 06 , 2021          February 15 , 2026
                                            06 Agustus/               15 Februari/
  FR0084                   30.000                                                                             1.217                       -             31.217
                                         August 06 , 2021          February 15 , 2026
                                            10 Agustus/               15 Februari/
  FR0084                   20.000                                                                               767                       -             20.767
                                         August 10 , 2021          February 15 , 2026
                                            16 Agustus/               15 Februari/
  FR0084                   30.000                                                                             1.147                       -             31.147
                                         August 16 , 2021          February 15 , 2026
                                            16 Agustus/               15 Februari/
  FR0084                                                                                                                                  -             31.147
                           30.000        August 16 , 2021          February 15 , 2026                         1.147
                                            25 Mei/                  15 Februari/
  FR0084                                                                                                                                  -             30.380
                           30.000         May 25, 2022             February 15 , 2026                           380
                                            25 Mei/                  15 Februari/
  FR0084                                                                                                                                  -             10.127
                           10.000         May 25, 2022             February 15 , 2026                           127
  Subjumlah/Subtotal                                                                                          83.757                      -           4.513.757




                                                                           80
Page 620
                                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                            (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                        9.      MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                              REVERSE REPURCHASE AGREEMENT (continued)

                                                                                  2023
                                                                                                Premium (diskonto)         Laba (rugi) yang
                                                                                                    yang belum                  belum
       Jenis surat                                                                                 diamortisasi/             direalisasi/
        berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/     Unamortized premium         Unrealised gain       Nilai bersih/
       Securities      Nominal value            Start date               Maturity date              (discount)                  (loss)            Net value
       Surat Utang Negara/Government Debt (lanjutan)/(continued)
       Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
       Pindahan/Carry forward                                                                                   83.757                     -          4.513.757
                                                  13 Juni/                15 Februari/
       FR0084                   20.000                                                                            395                      -            20.395
                                              June 13, 2022             February 15 , 2026
                                                  01 Juli/                15 Februari/
       FR0084                   45.000                                                                            816                      -            45.816
                                               July 01, 2022            February 15 , 2026
                                                  01 Juli/                15 Februari/
       FR0084                   35.000                                                                            635                      -            35.635
                                               July 01, 2022            February 15 , 2026
                                                 30 April/               15 September/
       FR0040                   30.000                                                                           2.514                     -            32.514
                                               April 30, 2021          September 15 , 2025
                                                  07 Juni/               15 September/
       FR0040                   50.000                                                                           4.051                     -            54.051
                                              June 07, 2021            September 15 , 2025
                                                16 Agustus/              15 September/
       FR0040                   20.000                                                                           1.918                     -            21.918
                                             August 16, 2021           September 15 , 2025
                                                  31 Mei/                15 September/
       FR0040                 100.000                                                                            7.916                     -           107.916
                                               May 31, 2022            September 15 , 2025
                                              12 November/               15 September/
       FR0056                   50.000                                                                           3.719                     -            53.719
                                            November 12, 2021          September 15 , 2026
                                              15 November/               15 September/
       FR0056                   50.000                                                                           3.722                     -            53.722
                                            November 15, 2021          September 15 , 2026
                                              15 November/               15 September/
       FR0056                   50.000                                                                           3.722                     -            53.722
                                            November 15, 2021          September 15 , 2026
                                                21 January/              15 September/
       FR0056                   50.000                                                                           3.578                     -            53.578
                                             January 21, 2022          September 15 , 2026
                                                  05 July/               15 September/
       FR0056                   50.000                                                                           2.663                     -            52.663
                                               July 05, 2022           September 15 , 2026
                                              26 September/              15 September/
       FR0056                   50.000                                                                           2.500                     -            52.500
                                            September 26, 2023         September 15 , 2026
                                                 19 April/                15 Februari/
       ORI019                   20.000                                                                               3                     -            20.003
                                               April 19, 2021           February 15 , 2024
                                                 19 April/                15 Februari/
       ORI019                   30.000                                                                               6                     -            30.006
                                               April 19, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   10.000                                                                               2                     -            10.002
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   50.000                                                                               9                     -            50.009
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   10.000                                                                               2                     -            10.002
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   10.000                                                                               2                     -            10.002
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   10.000                                                                               2                     -            10.002
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   50.000                                                                               9                     -            50.009
                                               April 20, 2021           February 15 , 2024
                                                 20 April/                15 Februari/
       ORI019                   10.000                                                                               2                     -            10.002
                                               April 20, 2021           February 15 , 2024
                                                 21 April/                15 Februari/
       ORI019                                                                                                                              -            70.014
                                70.000         April 21, 2021           February 15 , 2024                         14
                                                 21 April/                15 Februari/
       ORI019                                                                                                                              -            10.002
                                10.000         April 21, 2021           February 15 , 2024                           2
                                                 28 April/                15 Februari/
       ORI019                                                                                                                              -            20.005
                                20.000         April 28, 2021           February 15 , 2024                          5
       Subjumlah/Subtotal                                                                                      121.962                     -          5.451.962




                                                                             81
Page 621
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                      9.       MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                             REVERSE REPURCHASE AGREEMENT (continued)

                                                                                2023
                                                                                                 Premium (diskonto)         Laba (rugi) yang
                                                                                                     yang belum                  belum
       Jenis surat                                                                                  diamortisasi/             direalisasi/
        berharga/     Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/       Unamortized premium         Unrealised gain        Nilai bersih/
       Securities     Nominal value            Start date               Maturity date                (discount)                  (loss)             Net value
      Surat Utang Negara/Government Debt (lanjutan)/(continued)
      Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
      Pindahan/Carry forward                                                                                    121.962                     -           5.451.962
                                                29 April/                15 Februari/
       ORI019                  20.000                                                                                5                      -             20.005
                                              April 29, 2021           February 15 , 2024
                                                29 April/                15 Februari/
       ORI019                  20.000                                                                                5                      -             20.005
                                              April 29, 2021           February 15 , 2024
                                                29 April/                15 Februari/
       ORI019                  20.000                                                                                5                      -             20.005
                                              April 29, 2021           February 15 , 2024
                                                30 April/                15 Februari/
       ORI019                  30.000                                                                                7                      -             30.007
                                              April 30, 2021           February 15 , 2024
                                                 06 Mei/                 15 Februari/
       ORI019                  10.000                                                                                4                      -             10.004
                                              May 06, 2021             February 15 , 2024
                                                 10 Mei/                 15 Februari/
       ORI019                  50.000                                                                               20                      -             50.020
                                              May 10, 2021             February 15 , 2024
                                               09 Agustus/               15 Februari/
       ORI019                  10.000                                                                               14                      -             10.014
                                             August 09, 2021           February 15 , 2024
                                               10 Agustus/               15 Februari/
       ORI019                  20.000                                                                               29                      -             20.029
                                             August 10, 2021           February 15 , 2024
                                               10 Agustus/               15 Februari/
       ORI019                  20.000                                                                               29                      -             20.029
                                             August 10, 2021           February 15 , 2024
                                              10 Agustus/                15 Februari/
       ORI019                  15.000                                                                               21                      -             15.021
                                            August 10, 2021            February 15 , 2024
                                              10 Agustus/                15 Februari/
       ORI019                  10.000                                                                               14                      -             10.014
                                            August 10, 2021            February 15 , 2024
                                              16 Agustus/                15 Februari/
       ORI019                  15.000                                                                               21                      -             15.021
                                            August 16, 2021            February 15 , 2024
                                              16 Agustus/                15 Februari/
       ORI019                  10.000                                                                               14                      -             10.014
                                            August 16, 2021            February 15 , 2024
                                              16 Agustus/                15 Februari/
       ORI019                  10.000                                                                               14                      -             10.014
                                            August 16, 2021            February 15 , 2024
                                              16 Agustus/                15 Februari/
       ORI019                  20.000                                                                               28                      -             20.028
                                            August 16, 2021            February 15 , 2024
                                              18 Agustus/                15 Februari/
       ORI019                  20.000                                                                               28                      -             20.028
                                            August 18, 2021            February 15 , 2024
                                              23 Agustus/                15 Februari/
       ORI019                  30.000                                                                               42                      -             30.042
                                            August 23, 2021            February 15 , 2024
                                              23 Agustus/                15 Februari/
       ORI019                  30.000                                                                               41                      -             30.041
                                            August 23, 2021            February 15 , 2024
                                              24 Agustus/                15 Februari/
       ORI019                   8.000                                                                               11                      -              8.011
                                            August 24, 2021            February 15 , 2024
                                              24 Agustus/                15 Februari/
       ORI019                  12.000                                                                               16                      -             12.016
                                            August 24, 2021            February 15 , 2024
                                              24 Agustus/                15 Februari/
       ORI019                  10.000                                                                               14                      -             10.014
                                            August 24, 2021            February 15 , 2024
                                             03 September/               15 Februari/
       ORI019                  50.000                                                                               70                      -             50.070
                                           September 03, 2021          February 15 , 2024
                                             03 September/               15 Februari/
       ORI019                                                                                                                               -             30.041
                               30.000      September 03, 2021          February 15 , 2024                           41
                                             06 September/               15 Februari/
       ORI019                                                                                                                               -             10.014
                               10.000      September 06, 2021          February 15 , 2024                           14
                                             06 September/               15 Februari/
       ORI019                                                                                                                               -             20.027
                               20.000      September 06, 2021          February 15 , 2024                           27
      Subjumlah/Subtotal                                                                                        122.496                     -           5.952.496




                                                                           82
Page 622
                                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                           (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                       9.       MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                              REVERSE REPURCHASE AGREEMENT (continued)

                                                                                 2023
                                                                                                 Premium (diskonto)          Laba (rugi) yang
                                                                                                     yang belum                   belum
       Jenis surat                                                                                  diamortisasi/              direalisasi/
        berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/      Unamortized premium          Unrealised gain       Nilai bersih/
       Securities      Nominal value            Start date               Maturity date               (discount)                   (loss)            Net value
       Surat Utang Negara/Government Debt (lanjutan)/(continued)
       Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
       Pindahan/Carry forward                                                                                   122.496                      -          5.952.496
                                              06 September/                15 Februari/
       ORI019                   10.000                                                                                  14                   -            10.014
                                            September 06, 2021          February 15 , 2024
                                              06 September/                15 Februari/
       ORI019                   30.000                                                                                  41                   -            30.041
                                            September 06, 2021          February 15 , 2024
                                              09 September/                15 Februari/
       ORI019                   25.000                                                                                  34                   -            25.034
                                            September 09, 2021          February 15 , 2024
                                              09 September/                15 Februari/
       ORI019                   25.000                                                                                  35                   -            25.035
                                            September 09, 2021          February 15 , 2024
                                              13 September/                15 Februari/
       ORI019                   10.000                                                                                  13                   -            10.013
                                            September 13, 2021          February 15 , 2024
                                              23 September/                15 Februari/
       ORI019                   20.000                                                                                  27                   -            20.027
                                            September 23, 2021          February 15 , 2024
                                              27 September/                15 Februari/
       ORI019                   20.000                                                                                  27                   -            20.027
                                            September 27, 2021          February 15 , 2024
                                              27 September/                15 Februari/
       ORI019                   50.000                                                                                  71                   -            50.071
                                            September 27, 2021          February 15 , 2024
                                                01 Oktober/                15 Februari/
       ORI019                   10.000                                                                                  13                   -            10.013
                                             October 01, 2021           February 15 , 2024
                                                  01 April/                  15 April/
       FR0086                   50.000                                                                             (382)                     -            49.618
                                               April 01, 2021             April 15 , 2026
                                                  01 April/                  15 April/
       FR0086                   50.000                                                                             (390)                     -            49.610
                                               April 01, 2021             April 15 , 2026
                                                  01 April/                  15 April/
       FR0086                   50.000                                                                             (362)                     -            49.638
                                               April 01, 2021             April 15 , 2026
                                                21 Januari/                  15 April/
       FR0086                   25.000                                                                              160                   584             24.575
                                             January 21, 2021             April 15 , 2026
                                                21 Januari/                  15 April/
       FR0086                   25.000                                                                              160                   584             24.575
                                             January 21, 2021             April 15 , 2026
                                                04 Februari/                 15 April/
       FR0086                   25.000                                                                              186                   611             24.575
                                             February 04, 2021            April 15 , 2026
                                                04 Februari/                 15 April/
       FR0086                   50.000                                                                              351                 1.201             49.150
                                             February 04, 2021            April 15 , 2026
                                                18 Februari/                 15 April/
       FR0086                   50.000                                                                              234                 1.083             49.151
                                             February 18, 2021            April 15 , 2026
                                                18 Februari/                 15 April/
       FR0086                   25.000                                                                              106                   531             24.575
                                             February 18, 2021            April 15 , 2026
                                                18 Februari/                 15 April/
       FR0086                   25.000                                                                              106                   531             24.575
                                             February 18, 2021            April 15 , 2026
                                                19 Februari/                 15 April/
       FR0086                   30.000                                                                                  51                561             29.491
                                             February 19, 2021            April 15 , 2026
                                                19 Februari/                 15 April/
       FR0086                   20.000                                                                                  34                374             19.660
                                             February 19, 2021            April 15 , 2026
                                                19 Februari/                 15 April/
       FR0086                   10.000                                                                                  17                187              9.830
                                             February 19, 2021            April 15 , 2026
                                                19 Februari/                 15 April/
       FR0086                                                                                                                             187              9.830
                                10.000       February 19, 2021            April 15 , 2026                               17
                                                22 Februari/                 15 April/
       FR0086                                                                                                                             170              9.830
                                10.000       February 22, 2021            April 15 , 2026                           -
                                                22 Februari/                 15 April/
       FR0086                                                                                                                             170              9.830
                                10.000       February 22, 2021            April 15 , 2026                           -
       Subjumlah/Subtotal                                                                                       123.061                 6.774           6.611.287




                                                                            83
Page 623
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                     (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                         9.       MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                                REVERSE REPURCHASE AGREEMENT (continued)

                                                                                   2023
                                                                                                    Premium (diskonto)         Laba (rugi) yang
                                                                                                        yang belum                  belum
       Jenis surat                                                                                     diamortisasi/             direalisasi/
        berharga/     Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/          Unamortized premium         Unrealised gain       Nilai bersih/
       Securities     Nominal value            Start date               Maturity date                   (discount)                  (loss)            Net value
      Surat Utang Negara/Government Debt (lanjutan)/(continued)
      Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
      Pindahan/Carry forward                                                                                      123.061                 6.774           6.611.287
                                               22 Februari/                  15 April/
       FR0086                  10.000                                                                                 -                     170              9.830
                                            February 22, 2021              April 15 , 2026
                                                 10 Juni/                    15 April/
       FR0086                  50.000                                                                                     32                881             49.151
                                              June 10, 2021                April 15 , 2026
                                                 10 Juni/                    15 April/
       FR0086                  50.000                                                                                     53                902             49.151
                                              June 10, 2021                April 15 , 2026
                                                 10 Juni/                    15 April/
       FR0086                  50.000                                                                                     32                881             49.151
                                              June 10, 2021                April 15 , 2026
                                                 10 Juni/                    15 April/
       FR0086                  50.000                                                                                     32                881             49.151
                                              June 10, 2021                April 15 , 2026
                                                 10 Juni/                    15 April/
       FR0086                  50.000                                                                                     53                902             49.151
                                              June 10, 2021                April 15 , 2026
                                                 16 Juni/                    15 April/
       FR0086                  20.000                                                                                     82                421             19.660
                                              June 16, 2021                April 15 , 2026
                                                 16 Juni/                    15 April/
       FR0086                  20.000                                                                                     82                421             19.660
                                              June 16, 2021                April 15 , 2026
                                                 17 Juni/                    15 April/
       FR0086                  10.000                                                                                     38                208              9.830
                                              June 17, 2021                April 15 , 2026
                                                 29 Juni/                    15 April/
       FR0086                  20.000                                                                                     87                427             19.660
                                              June 29, 2021                April 15 , 2026
                                                 29 Juni/                    15 April/
       FR0086                  20.000                                                                                     87                427             19.660
                                              June 29, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  10.000                                                                                     39                208              9.830
                                              June 30, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  20.000                                                                                     77                417             19.660
                                              June 30, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  20.000                                                                                     77                417             19.660
                                              June 30, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  20.000                                                                                     77                417             19.660
                                              June 30, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  10.000                                                                                     39                208              9.830
                                              June 30, 2021                April 15 , 2026
                                                 30 Juni/                    15 April/
       FR0086                  10.000                                                                                     36                206              9.830
                                              June 30, 2021                April 15 , 2026
      Subjumlah/Subtotal                                                                                          123.983                15.167           7.043.816




                                                                             84
Page 624
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                          9.     MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                               REVERSE REPURCHASE AGREEMENT (continued)
                                                                                    2023
                                                                                                    Premium (diskonto)         Laba (rugi) yang
                                                                                                        yang belum                  belum
       Jenis surat                                                                                     diamortisasi/             direalisasi/
        berharga/      Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/         Unamortized premium         Unrealised gain        Nilai bersih/
       Securities      Nominal value            Start date               Maturity date                  (discount)                  (loss)             Net value
       Surat Utang Negara/Government Debt (lanjutan)/(continued)
       Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
       Pindahan/Carry forward                                                                                      123.983               15.167            7.043.816
                                                  30 Juni/                    15 April/
       FR0086                   20.000                                                                                 72                   412              19.660
                                               June 30, 2021                April 15 , 2026
                                                  30 Juni/                    15 April/
       FR0086                   30.000                                                                                108                   618              29.491
                                               June 30, 2021                April 15 , 2026
                                                  30 Juni/                    15 April/
       FR0086                   30.000                                                                                108                   618              29.491
                                               June 30, 2021                April 15 , 2026
                                                  30 Juni/                    15 April/
       FR0086                   20.000                                                                                 67                   407              19.660
                                               June 30, 2021                April 15 , 2026
                                                  01 Juli/                    15 April/
       FR0086                   10.000                                                                                 28                   198               9.830
                                               July 01, 2021                April 15 , 2026
                                                  02 Juli/                    15 April/
       FR0086                   10.000                                                                                 26                   196               9.830
                                               July 02, 2021                April 15 , 2026
                                                  05 Juli/                    15 April/
       FR0086                   20.000                                                                                 52                   392              19.660
                                               July 05, 2021                April 15 , 2026
                                                  05 Juli/                    15 April/
       FR0086                   30.000                                                                                 78                   587              29.491
                                               July 05, 2021                April 15 , 2026
                                                  19 Juli/                    15 April/
       FR0086                   25.000                                                                                117                   541              24.575
                                               July 19, 2021                April 15 , 2026
                                                  19 Juli/                    15 April/
       FR0086                   20.000                                                                                 88                   428              19.660
                                               July 19, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 45                   214               9.830
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 44                   214               9.830
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 44                   214               9.830
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 44                   214               9.830
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   20.000                                                                                 93                   433              19.660
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 47                   217               9.830
                                               July 21, 2021                April 15 , 2026
                                                  21 Juli/                    15 April/
       FR0086                   10.000                                                                                 47                   217               9.830
                                               July 21, 2021                April 15 , 2026
                                                12 Oktober/                   15 April/
       FR0086                   20.000                                                                                134                   474              19.660
                                              October 12, 2021              April 15 , 2026
                                                12 Oktober/                   15 April/
       FR0086                   20.000                                                                                134                   474              19.660
                                              October 12, 2021              April 15 , 2026
                                                13 Oktober/                   15 April/
       FR0086                   20.000                                                                                123                   463              19.660
                                              October 13, 2021              April 15 , 2026
                                                13 Oktober/                   15 April/
       FR0086                   20.000                                                                                123                   463              19.660
                                              October 13, 2021              April 15 , 2026
                                                14 Oktober/                   15 April/
       FR0086                   20.000                                                                                134                   474              19.660
                                              October 14, 2021              April 15 , 2026
                                                14 Oktober/                   15 April/
       FR0086                                                                                                                               474              19.660
                                20.000        October 14, 2021              April 15 , 2026                           134
                                                14 Oktober/                   15 April/
       FR0086                                                                                                                               474              19.660
                                20.000        October 14, 2021              April 15 , 2026                           134
                                                26 Oktober/                   15 April/
       FR0086                                                                                                                               259               9.830
                                10.000        October 26, 2021              April 15 , 2026                            89
       Subjumlah/Subtotal                                                                                          126.096               24.839            7.481.257




                                                                              85
Page 625
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                     (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                         9.       MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                                REVERSE REPURCHASE AGREEMENT (continued)

                                                                                   2023
                                                                                                     Premium (diskonto)        Laba (rugi) yang
                                                                                                         yang belum                 belum
       Jenis surat                                                                                      diamortisasi/            direalisasi/
        berharga/     Nilai nominal/        Tanggal dimulai/         Tanggal jatuh tempo/           Unamortized premium        Unrealised gain        Nilai bersih/
       Securities     Nominal value            Start date               Maturity date                    (discount)                 (loss)             Net value
      Surat Utang Negara/Government Debt (lanjutan)/(continued)
      Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
      Pindahan/Carry forward                                                                                       126.096               24.839            7.481.257
                                               29 Oktober/                   15 April/
       FR0086                  25.000                                                                                 237                   661              24.575
                                             October 29, 2021              April 15 , 2026
                                               29 Oktober/                   15 April/
       FR0086                  25.000                                                                                 237                   661              24.575
                                             October 29, 2021              April 15 , 2026
                                                 15 Juli/                    15 April/
       FR0090                  30.000                                                                                (247)                  756              28.997
                                              July 15, 2021                April 15 , 2027
                                                 15 Juli/                    15 April/
       FR0090                  20.000                                                                                (164)                  504              19.331
                                              July 15, 2021                April 15 , 2027
                                                 15 Juli/                    15 April/
       FR0090                  20.000                                                                                (163)                  505              19.331
                                              July 15, 2021                April 15 , 2027
                                                 22 Juli/                    15 April/
       FR0090                  10.000                                                                                  (66)                 268               9.666
                                              July 22, 2021                April 15 , 2027
                                                 22 Juli/                    15 April/
       FR0090                  20.000                                                                                (139)                  529              19.331
                                              July 22, 2021                April 15 , 2027
                                               05 Agustus/                   15 April/
       FR0090                  10.000                                                                                  (36)                 298               9.666
                                             August 05, 2021               April 15 , 2027
                                               05 Agustus/                   15 April/
       FR0090                  50.000                                                                                (142)                1.530              48.328
                                             August 05, 2021               April 15 , 2027
                                               06 Agustus/                   15 April/
       FR0090                  10.000                                                                                  (18)                 316               9.666
                                             August 06, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  20.000                                                                                  (30)                 639              19.331
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  20.000                                                                                  (30)                 639              19.331
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  10.000                                                                                  (15)                 320               9.666
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  10.000                                                                                  (15)                 320               9.666
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  20.000                                                                                  (42)                 627              19.331
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  30.000                                                                                  (63)                 940              28.997
                                             August 09, 2021               April 15 , 2027
                                               09 Agustus/                   15 April/
       FR0090                  30.000                                                                                  (72)                 931              28.997
                                             August 09, 2021               April 15 , 2027
      Subjumlah/Subtotal                                                                                           125.328               35.285            7.830.042




                                                                             86
Page 626
                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                          (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                     9.     MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                          REVERSE REPURCHASE AGREEMENT (continued)
                                                                                2023
                                                                                                Premium (diskonto)          Laba (rugi) yang
                                                                                                    yang belum                   belum
        Jenis surat                                                                                diamortisasi/              direalisasi/
         berharga/      Nilai nominal/       Tanggal dimulai/         Tanggal jatuh tempo/     Unamortized premium          Unrealised gain        Nilai bersih/
        Securities     Nominal value             Start date               Maturity date             (discount)                   (loss)             Net value
       Surat Utang Negara/Government Debt (lanjutan)/(continued)
       Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
       Pindahan/Carry forward                                                                                   125.328               35.285            7.830.042
                                                09 Agustus/                 15 April/
        FR0090                  20.000                                                                              (48)                 621              19.331
                                              August 09, 2021             April 15 , 2027
                                                09 Agustus/                 15 April/
        FR0090                  20.000                                                                              (48)                 621              19.331
                                              August 09, 2021             April 15 , 2027
                                                09 Agustus/                 15 April/
        FR0090                  40.000                                                                              (96)               1.241              38.663
                                              August 09, 2021             April 15 , 2027
                                                16 Agustus/                 15 April/
        FR0090                  10.000                                                                              (52)                 282               9.666
                                              August 16, 2021             April 15 , 2027
                                                16 Agustus/                 15 April/
        FR0090                  20.000                                                                            (110)                  559              19.331
                                              August 16, 2021             April 15 , 2027
                                                16 Agustus/                 15 April/
        FR0090                  10.000                                                                              (55)                 279               9.666
                                              August 16, 2021             April 15 , 2027
                                                16 Agustus/                 15 April/
        FR0090                  20.000                                                                            (110)                  559              19.331
                                              August 16, 2021             April 15 , 2027
                                                20 Agustus/                 15 April/
        FR0090                  50.000                                                                            (231)                1.441              48.328
                                              August 20, 2021             April 15 , 2027
                                                20 Agustus/                 15 April/
        FR0090                  50.000                                                                            (227)                1.445              48.328
                                              August 20, 2021             April 15 , 2027
                                                20 Agustus/                 15 April/
        FR0090                  50.000                                                                            (227)                1.445              48.328
                                              August 20, 2021             April 15 , 2027
                                              23 September/                 15 April/
        FR0090                  10.000                                                                               (6)                 328               9.666
                                            September 23, 2021            April 15 , 2027
                                                11 Januari/                 15 April/
        FR0090                  20.000                                                                              (65)                 604              19.331
                                             January 11, 2022             April 15 , 2027
                                                31 Januari/                 15 April/
        FR0090                  10.000                                                                              (33)                 302               9.666
                                             January 31, 2022             April 15 , 2027
                                                31 Januari/                 15 April/
        FR0090                  10.000                                                                              (33)                 302               9.666
                                             January 31, 2022             April 15 , 2027
                                                25 Februari/                15 April/
        FR0090                  20.000                                                                            (127)                  542              19.331
                                             February 25, 2022            April 15 , 2027
                                                 07 Maret/                  15 April/
        FR0090                  30.000                                                                            (252)                  751              28.997
                                              March 07, 2022              April 15 , 2027
                                                 07 Maret/                  15 April/
        FR0090                  10.000                                                                              (84)                 250               9.666
                                              March 07, 2022              April 15 , 2027
                                                 17 Maret/                  15 April/
        FR0090                  10.000                                                                            (135)                  199               9.666
                                              March 17, 2022              April 15 , 2027
                                                 17 Maret/                  15 April/
        FR0090                  10.000                                                                            (135)                  199               9.666
                                              March 17, 2022              April 15 , 2027
                                                 17 Maret/                  15 April/
        FR0090                  50.000                                                                            (674)                  997              48.329
                                              March 17, 2022              April 15 , 2027
                                                  26 Juli/                  15 April/
        FR0090                  10.000                                                                            (491)                 (157)              9.666
                                               July 26, 2022              April 15 , 2027
                                                  26 Juli/                  15 April/
        FR0090                  10.000                                                                            (491)                 (157)              9.666
                                               July 26, 2022              April 15 , 2027
       Jumlah/Total                                                                                             121.599               47.936            8.303.663



                                                                           87
Page 627
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                  (Expressed in millions of Rupiah, unless otherwise stated)


 9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                       9.       MARKETABLE SECURITIES FOR SALE WITH
      DIBELI KEMBALI (lanjutan)                                                              REVERSE REPURCHASE AGREEMENT (continued)

                                                                        31 Desember/
                                                                        December 31,
                                                                            2022

                                                                                               Premium (diskonto)
                                                                                                   yang belum        Laba (rugi) yang
         Jenis surat                                                                              diamortisasi/     belum direalisasi/
          berharga/         Nilai nominal/        Tanggal dimulai/   Tanggal jatuh tempo/         Unamortized        Unrealised gain            Nilai bersih/
         Securities         Nominal value            Start date         Maturity date          premium (discount)         (loss)                 Net value
      Surat Utang Negara/Government Debt
      Biaya perolehan diamortisasi/Amortised cost
                                                    25 Februari/         15 Maret/
       FR0070                         50.000                                                                1.724                    -               51.724
                                                 February 25, 2021     March 15, 2024
                                                    26 Februari/         15 Maret/
       FR0070                         50.000                                                                1.726                    -               51.726
                                                 February 26, 2021     March 15, 2024
                                                     12 Maret/         15 September/
       FR0070                         50.000                                                                1.478                    -               51.478
                                                   March 12, 2021    September 15, 2024
                                                     15 Maret/           15 Maret/
       FR0070                         50.000                                                                1.586                    -               51.586
                                                   March 15, 2021      March 15, 2024
                                                     23 Maret/             15 Juni/
       FR0081                         30.000                                                                 368                     -               30.368
                                                   March 23, 2021       June 15, 2025
                                                      15 Juni/             15 Juni/
       FR0081                         50.000                                                                1.529                    -               51.529
                                                   June 15, 2021        June 15, 2025
                                                      29 Juni/             15 Juni/
       FR0081                         50.000                                                                1.625                    -               51.625
                                                   June 29, 2021        June 15, 2025
                                                      30 Juni/            15 Mei/
       FR0059                        100.000                                                                4.885                    -             104.885
                                                   June 30, 2021        May 15, 2027
                                                       1 Juli/            15 Mei/
       FR0059                        100.000                                                                4.577                    -             104.577
                                                    July 1, 2021        May 15, 2027
                                                       1 Juli/            15 Mei/
       FR0081                         50.000                                                                1.581                    -               51.581
                                                    July 1, 2021        May 15, 2027
                                                       5 Juli/             15 Juni/
       FR0081                         50.000                                                                1.554                    -               51.554
                                                    July 5, 2021        June 15, 2025
                                                       13 Juli/            15 Juni/
       FR0081                         50.000                                                                1.610                    -               51.610
                                                    July 13, 2021       June 15, 2025
                                                       15 Juli/           15 Mei/
       FR0059                         50.000                                                                2.509                    -               52.509
                                                    July 15, 2021       May 15, 2027
                                                       19 Juli/           15 Mei/
       FR0059                        100.000                                                                5.284                    -             105.284
                                                    July 19, 2021       May 15, 2027
                                                       30 Juli/            15 Juni/
       FR0081                         20.000                                                                 702                     -               20.702
                                                    July 30, 2021       June 15, 2025
                                                     2 Agustus/            15 Juni/
       FR0081                        200.000                                                                7.165                    -             207.165
                                                   August 2, 2021       June 15, 2025
                                                     3 Agustus/            15 Juni/
       FR0081                         50.000                                                                1.793                    -               51.793
                                                   August 3, 2021       June 15, 2025
                                                     9 Agustus/           15 Mei/
       FR0059                         50.000                                                                2.984                    -               52.984
                                                   August 9, 2021       May 15, 2027
                                                     9 Agustus/            15 Juni/
       FR0081                         20.000                                                                 714                     -               20.714
                                                   August 9, 2021       June 15, 2025
      Dipindahkan/Brought forward                                                                          45.394                    -            1.215.394




                                                                            88
Page 628
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)



 9.    SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                         9.     MARKETABLE SECURITIES FOR SALE WITH
       DIBELI KEMBALI (lanjutan)                                                              REVERSE REPURCHASE AGREEMENT (continued)

                                                                              31 Desember/
                                                                              December 31,
                                                                                  2022


                                                                                                   Premium (diskonto)
                                                                                                       yang belum          Laba (rugi) yang
         Jenis surat                                                                                  diamortisasi/       belum direalisasi/
          berharga/          Nilai nominal/         Tanggal dimulai/       Tanggal jatuh tempo/       Unamortized          Unrealised gain             Nilai bersih/
         Securities         Nominal value              Start date             Maturity date        premium (discount)           (loss)                  Net value
      Surat Utang Negara/Government Debt (lanjutan)/(continued)
      Biaya perolehan diamortisasi/Amortised cost (lanjutan)/(continued)
      Pindahan/Carry forward                                                                                    45.394                     -              1.215.394
                                                      10 Agustus/                15 Mei/
      FR0059                           60.000                                                                    3.597                     -                63.597
                                                    August 10, 2021           May 15, 2027
                                                      10 Agustus/                15 Juni/
      FR0081                           80.000                                                                    2.857                     -                82.857
                                                    August 10, 2021           June 15, 2025
                                                      13 Agustus/                15 Mei/
      FR0059                           30.000                                                                    1.640                     -                31.640
                                                    August 13, 2021           May 15, 2027
                                                      18 Agustus/                15 Mei/
      FR0059                           20.000                                                                    1.088                     -                21.088
                                                    August 18, 2021           May 15, 2027
                                                      23 Agustus/                15 Mei/
      FR0059                          130.000                                                                    7.189                     -               137.189
                                                    August 23, 2021           May 15, 2027
                                                     17 November/               15 Mei/
      FR0059                           50.000                                                                    2.983                     -                52.983
                                                   November 17, 2021          May 15, 2027
                                                     19 November/               15 Mei/
      FR0059                           60.000                                                                    3.659                     -                63.659
                                                   November 19, 2021          May 15, 2027
                                                       12 Januari/               15 Juni/
      FR0081                           50.000                                                                    1.762                     -                51.762
                                                    January 12, 2022          June 15, 2025
                                                       21 Januari/               15 Juni/
      FR0081                           50.000                                                                    1.805                     -                51.805
                                                    January 21, 2022          June 15, 2025
                                                         28 April/               15 Juni/
      FR0081                           40.000                                                                      800                     -                40.800
                                                     April 28, 2022           June 15, 2025
                                                         11 Mei/                 15 Juni/
      FR0081                           50.000                                                                      407                     -                50.407
                                                      May 11, 2022            June 15, 2025
                                                         25 Mei/                 15 Juni/
      FR0081                           25.000                                                                      287                     -                25.287
                                                      May 25, 2022            June 15, 2025
                                                         27 Mei/                 15 Juni/
      FR0081                           65.000                                                                      710                     -                65.710
                                                      May 27, 2022            June 15, 2025
                                                         13 Juni/                15 Juni/
      FR0081                           90.000                                                                    1.649                     -                91.649
                                                     June 13, 2022            June 15, 2025
                                                         20 Juni/                15 Juni/
      FR0081                           60.000                                                                      901                     -                60.901
                                                     June 20, 2022            June 15, 2025
                                                         22 Juni/                15 Juni/
      FR0081                           20.000                                                                      268                     -                20.268
                                                     June 22, 2022            June 15, 2025
                                                         29 Juni/                15 Juni/
      FR0081                           50.000                                                                    1.111                     -                51.111
                                                     June 29, 2022            June 15, 2025
                                                         18 Juli/                15 Juni/
      FR0081                           10.000                                                                      154                     -                10.154
                                                      July 18, 2022           June 15, 2025
                                                         19 Juli/                15 Juni/
      FR0081                           50.000                                                                      601                     -                50.601
                                                      July 19, 2022           June 15, 2025
                                                         20 Juli/                15 Juni/
      FR0081                           40.000                                                                      430                     -                40.430
                                                      July 20, 2022           June 15, 2025
                                                         26 Juli/                15 Juni/
      FR0081                           50.000                                                                      154                     -                50.154
                                                      July 26, 2022           June 15, 2025
      Subjumlah/Subtotal                                                                                        79.447                     -              2.329.447




                                                                               89
Page 629
                                                                                          The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                   (Expressed in millions of Rupiah, unless otherwise stated)


9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                         9.       MARKETABLE SECURITIES FOR SALE WITH
     DIBELI KEMBALI (lanjutan)                                                                REVERSE REPURCHASE AGREEMENT (continued)

                                                                              31 Desember/
                                                                              December 31,
                                                                                  2022


                                                                                                     Premium (diskonto)
                                                                                                         yang belum            Laba (rugi) yang
        Jenis surat                                                                                     diamortisasi/         belum direalisasi/
         berharga/           Nilai nominal/         Tanggal dimulai/        Tanggal jatuh tempo/        Unamortized            Unrealised gain           Nilai bersih/
         Securities          Nominal value              Start date              Maturity date        premium (discount)             (loss)                Net value
     Surat Utang Negara/Government Debt (lanjutan)/(continued)
     Nilai wajar melalui penghasilan komprehensif lain/Fair value through other comprehensive income
                                                        21 Januari/               15 April/
     FR0086                            50.000                                                                       448                  (1.403)              49.045
                                                    January 21, 2021            April 15, 2026
                                                        4 Februari/               15 April/
     FR0086                            75.000                                                                       754                  (2.187)              73.567
                                                    February 4, 2021            April 15, 2026
                                                       18 Februari/               15 April/
     FR0086                            75.000                                                                       477                  (1.909)              73.568
                                                   February 18, 2021            April 15, 2026
                                                       19 Februari/               15 April/
     FR0086                            70.000                                                                       168                  (1.504)              68.663
                                                   February 19, 2021            April 15, 2026
                                                       22 Februari/               15 April/
     FR0086                            30.000                                                                        -                     (573)              29.427
                                                   February 22, 2021            April 15, 2026
                                                         10 Juni/                 15 April/
     FR0086                           250.000                                                                       282                  (5.056)            245.226
                                                      June 10, 2021             April 15, 2026
                                                         16 Juni/                 15 April/
     FR0086                            40.000                                                                       229                    (992)              39.236
                                                      June 16, 2021             April 15, 2026
                                                         29 Juni/                 15 April/
     FR0086                            40.000                                                                       244                  (1.008)              39.236
                                                      June 29, 2021             April 15, 2026
                                                         30 Juni/                 15 April/
     FR0086                           170.000                                                                       879                  (4.126)            166.753
                                                      June 30, 2021             April 15, 2026
                                                          1 Juli/                 15 April/
     FR0086                            10.000                                                                            40                (231)               9.809
                                                       July 1, 2021             April 15, 2026
                                                          2 Juli/                 15 April/
     FR0086                            10.000                                                                            36                (227)               9.809
                                                       July 2, 2021             April 15, 2026
                                                          5 Juli/                 15 April/
     FR0086                            90.000                                                                       313                  (2.032)              88.281
                                                       July 5, 2021             April 15, 2026
                                                          6 Juli/                 15 April/
     FR0086                            10.000                                                                            29                (220)               9.809
                                                       July 6, 2021             April 15, 2026
                                                          19 Juli/                15 April/
     FR0086                           100.000                                                                       653                  (2.563)              98.090
                                                      July 19, 2021             April 15, 2026
                                                          21 Juli/                15 April/
     FR0086                            40.000                                                                       262                  (1.026)              39.236
                                                      July 21, 2021             April 15, 2026
                                                        7 Oktober/                15 April/
     FR0086                            20.000                                                                       195                    (577)              19.618
                                                     October 7, 2021            April 15, 2026
                                                        8 Oktober/                15 April/
     FR0086                            25.000                                                                       244                    (721)              24.522
                                                     October 8, 2021            April 15, 2026
                                                       12 Oktober/                15 April/
     FR0086                            40.000                                                                       376                  (1.140)              39.236
                                                    October 12, 2021            April 15, 2026
                                                       13 Oktober/                15 April/
     FR0086                            40.000                                                                       346                  (1.110)              39.236
                                                    October 13, 2021            April 15, 2026
     Dipindahkan/Brought forward                                                                                   5.973                (28.604)           1.162.369




                                                                              90
Page 630
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


9.   SURAT BERHARGA YANG DIJUAL DENGAN JANJI                                           9.     MARKETABLE SECURITIES FOR SALE WITH
     DIBELI KEMBALI (lanjutan)                                                                REVERSE REPURCHASE AGREEMENT (continued)

                                                                               31 Desember/
                                                                               December 31,
                                                                                   2022


                                                                                                     Premium (diskonto)
                                                                                                         yang belum          Laba (rugi) yang
        Jenis surat                                                                                     diamortisasi/       belum direalisasi/
         berharga/           Nilai nominal/         Tanggal dimulai/        Tanggal jatuh tempo/        Unamortized          Unrealised gain            Nilai bersih/
         Securities          Nominal value              Start date              Maturity date        premium (discount)           (loss)                 Net value
     Surat Utang Negara/Government Debt (lanjutan)/(continued)
     Nilai wajar melalui penghasilan komprehensif lain/Fair value through other comprehensive income (lanjutan)/(continued)
     Pindahan/Carry forward                                                                                         5.973              (28.604)           1.162.369
                                                       14 Oktober/                15 April/
     FR0086                            60.000                                                                        564                (1.710)              58.854
                                                    October 14, 2021            April 15, 2026
                                                       26 Oktober/                15 April/
     FR0086                            20.000                                                                        246                  (628)              19.618
                                                    October 26, 2021            April 15, 2026
                                                       29 Oktober/                15 April/
     FR0086                            80.000                                                                      1.062                (2.590)              78.472
                                                    October 29, 2021            April 15, 2026
                                                       2 November/                15 April/
     FR0086                            75.000                                                                        973                (2.406)              73.567
                                                   November 2, 2021             April 15, 2026
                                                      11 November/                15 April/
     FR0086                            70.000                                                                        961                (2.298)              68.663
                                                  November 11, 2021             April 15, 2026
                                                      12 November/                15 April/
     FR0086                            40.000                                                                        536                (1.300)              39.236
                                                  November 12, 2021             April 15, 2026
                                                      22 November/                15 April/
     FR0086                            70.000                                                                      1.017                (2.354)              68.663
                                                  November 22, 2021             April 15, 2026
                                                      23 November/                15 April/
     FR0086                            40.000                                                                        585                (1.349)              39.236
                                                  November 23, 2021             April 15, 2026
                                                      24 November/                15 April/
     FR0086                            30.000                                                                        439                (1.012)              29.427
                                                  November 24, 2021             April 15, 2026
                                                      25 November/                15 April/
     FR0086                            70.000                                                                      1.025                (2.363)              68.663
                                                  November 25, 2021             April 15, 2026
                                                      30 November/                15 April/
     FR0086                            60.000                                                                        895                (2.042)              58.854
                                                  November 30, 2021             April 15, 2026
     Subjumlah/Subtotal                                                                                            14.276              (48.657)           1.765.619
     Jumlah/Total                                                                                                  93.723              (48.657)           4.095.066




                                                                                91
Page 631
                                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                  (Expressed in millions of Rupiah, unless otherwise stated)



10.   TAGIHAN DARI SURAT BERHARGA YANG DIBELI                                   10.        MARKETABLE SECURITIES PURCHASED UNDER
      DENGAN JANJI DIJUAL KEMBALI                                                          RESALE AGREEEMENT
      Pada tanggal 31 Desember 2023 dan 2022 Bank                                          As of December 31, 2023 and 2022 Bank has a
      memiliki tagihan dari surat berharga yang dibeli                                     number of marketable securities purchased under
      dengan janji dijual kembali sejumlah Rp6.247.318                                     resale agreement Rp6,247,318 and Rp7,822,847,
      dan Rp7.822.847 dengan rincian sebagai berikut:                                      with details as follows:
                                                                               2023

                                                                                             Tingkat                               Pendapatan
                                                                                               suku                                bunga yang
           Jenis surat                                                                        bunga/                            belum direalisasi/
            berharga/         Harga beli/      Tanggal mulai/     Tanggal jual kembali/      Interest     Harga jual kembali/       Unrealized       Nilai bersih/
            Securities      Purchase price       Start date           Resale date              rate          Resale price        interest income      Net value
       Surat Utang Negara
                                                 28 Desember            5 Januari
       FR0091                      417.811                                                      6,25%                418.285                  257          418.067
                                              December 28, 2023      January 5, 2024
                                                 28 Desember            4 Januari
       FR0084                      347.288                                                      6,30%                347.676                  241          347.529
                                              December 28, 2023      January 4, 2024
                                                 29 Desember            5 Januari
       FR0068                      108.041                                                      6,30%                108.174                   57          108.098
                                              December 2, 2023       January 5, 2024
                                                  20 Januari            19 Januari
       VR0068                       23.321                                                      6,70%                  24.901               1.502            24.823
                                               January 20, 2023     January 19, 2024
                                                  20 Januari            19 Januari
       VR0073                       70.194                                                      6,71%                  71.834               1.537            71.732
                                               January 20, 2023     January 19, 2024
                                                  27 Januari            26 Januari
       VR0070                       23.851                                                      6,71%                  25.469               1.507            25.358
                                               January 27, 2023     January 26, 2024
                                                  3 Februari            2 Februari
       VR0083                       46.810                                                      6,71%                  49.985               2.897            49.706
                                               February 3, 2023     February 2, 2024
                                                 19 Desember            3 Januari
       VR0063                      380.065                                                      6,40%                380.872                  724          380.789
                                              December 19, 2023      January 3, 2024
                                                 27 Desember            4 Januari
       VR0044                      289.789                                                      6,28%                290.193                  253          290.042
                                              December 27, 2023      January 4, 2024
                                                 27 Desember            4 Januari
       VR0045                       48.298                                                      6,28%                  48.366                  42            48.340
                                              December 27, 2023      January 4, 2024
                                                 27 Desember            4 Januari
       VR0093                       48.253                                                      6,28%                  48.320                  42            48.295
                                              December 27, 2023      January 4, 2024
                                                 27 Desember            4 Januari
       VR0072                       75.260                                                      6,28%                  75.365                  66            75.325
                                              December 27, 2023      January 4, 2024
                                                 28 Desember            3 Januari
       FR0059                      584.339                                                      6,23%                584.946                  404          584.743
                                              December 28, 2023      January 3, 2024
                                                28 Desember            3 Januari
       FR0082                      483.291                                                      6,23%                483.793                  335          483.626
                                              December 28, 2023     January 3, 2024
                                                28 Desember            5 Januari
       FR0087                      946.003                                                      6,27%                947.089                  559          946.562
                                              December 28, 2023     January 5, 2024
                                                21 Desember            4 Januari
       FR0076                      591.529                                                      6,40%                593.002                1.157          592.686
                                              December 21, 2023     January 4, 2024
                                                22 Desember            5 Januari
       FR0080                      494.498                                                      6,40%                495.350                  557          495.055
                                              December 22, 2023     January 5, 2024
                                                22 Desember            5 Januari
       FR0083                      201.292                                                      6,40%                201.793                  358          201.649
                                              December 22, 2023     January 5, 2024
                                                28 Desember            3 Januari
       FR0085                      200.400                                                      6,20%                200.607                  138          200.538
                                              December 28, 2023     January 3, 2024
                                                28 Desember            3 Januari
       FR0098                      194.635                                                      6,20%                194.836                  134          194.769
                                              December 28, 2023     January 3, 2024
                                                28 Desember            5 Januari
       FR0081                      286.008                                                      6,30%                286.357                  182          286.191
                                              December 28, 2023     January 5, 2024
                                                29 Desember            5 Januari
       FR0090                      185.223                                                      6,25%                185.448                   96          185.319
                                              December 29, 2023     January 5, 2024
                                                29 Desember            3 Januari
       VR0077                      187.945                                                      6,20%                188.139                  129          188.074
                                              December 29, 2023     January 3, 2024
       Jumlah/Total            6.234.143,38                                                                         6.250.799              13.175        6.247.318




                                                                          92
Page 632
                                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                      and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                         (Expressed in millions of Rupiah, unless otherwise stated)



10.   TAGIHAN DARI SURAT BERHARGA YANG DIBELI                                  10.      MARKETABLE SECURITIES PURCHASED UNDER
      DENGAN JANJI DIJUAL KEMBALI (lanjutan)                                            RESALE AGREEEMENT (continued)
                                                                        31 Desember/
                                                                        December 31,
                                                                            2022


                                                                                         Tingkat                               Pendapatan
                                                                                           suku                                bunga yang
          Jenis surat                                                                     bunga/                            belum direalisasi/
           berharga/         Harga beli/     Tanggal mulai/     Tanggal jual kembali/    Interest     Harga jual kembali/       Unrealized       Nilai bersih/
           Securities      Purchase price      Start date           Resale date            rate          Resale price        interest income      Net value
      Surat Utang Negara
                                               1 Desember/           2 Januari/
      FR0087                      367.130                                                   5,86%                369.043                   60          368.983
                                            December 1, 2022      January 2, 2023
                                               2 Desember/           2 Januari/
      FR0081                      148.341                                                   5,88%                149.092                   24          149.068
                                            December 2, 2022      January 2, 2023
                                               2 Desember/           2 Januari/
      FR0084                       99.477                                                   5,88%                  99.981                  16            99.964
                                            December 2, 2022      January 2, 2023
                                               2 Desember/          1 Desember/
      FR0083                      191.662                                                   6,66%                204.569               11.843          192.726
                                            December 2, 2022     December 1, 2023
                                               5 Desember/           4 Januari/
      FR0088                       42.352                                                   5,90%                  42.561                  21            42.540
                                            December 5, 2022      January 4, 2023
                                               5 Desember/           4 Januari/
      FR0065                      115.692                                                   5,90%                116.261                   57          116.204
                                            December 5, 2022      January 4, 2023
                                               9 Desember/           6 Januari/
      VR0078                      285.505                                                   5,79%                286.790                  230          286.561
                                            December 9, 2022      January 6, 2023
                                              23 Desember/           6 Januari/
      VR0037                      139.585                                                   5,95%                139.908                  115          139.793
                                            December 23, 2022     January 6, 2023
                                              23 Desember/           6 Januari/
      VR0072                       46.831                                                   5,95%                  46.939                  39            46.900
                                            December 23, 2022     January 6, 2023
                                              26 Desember/           2 Januari/
      VR0068                      381.224                                                   5,80%                381.654                   61          381.593
                                            December 26, 2022     January 2, 2023
                                              27 Desember/           10 Januari/
      VR0077                      140.534                                                   6,00%                140.862                  211          140.651
                                            December 27, 2022     January 10, 2023
                                              27 Desember/           10 Januari/
      FR0096                       28.650                                                   6,00%                  28.717                  43            28.674
                                            December 27, 2022     January 10, 2023
                                              28 Desember/           4 Januari/
      VR0053                      116.745                                                   5,80%                116.876                   56          116.820
                                            December 28, 2022     January 4, 2023
                                              28 Desember/           11 Januari/
      VR0037                      931.166                                                   6,00%                933.339                1.552          931.787
                                            December 28, 2022     January 11, 2023
                                              29 Desember/           5 Januari/
      VR0046                      192.083                                                   5,50%                192.288                  117          192.171
                                            December 29, 2022     January 5, 2023
                                              29 Desember/           5 Januari/
      VR0050                    1.004.411                                                   5,50%               1.005.485                 614        1.004.871
                                            December 29, 2022     January 5, 2023
                                              29 Desember/           5 Januari/
      VR0062                      906.457                                                   5,50%                907.426                  554          906.872
                                            December 29, 2022     January 5, 2023
                                              29 Desember/           6 Januari/
      VR0075                      234.299                                                   5,85%                234.604                  190          234.413
                                            December 29, 2022     January 6, 2023
                                              29 Desember/           12 Januari/
      VR0045                      924.263                                                   5,77%                926.337                1.630          924.708
                                            December 29, 2022     January 12, 2023
                                              30 Desember/           6 Januari/
      VR0034                      382.616                                                   5,50%                383.025                  292          382.733
                                            December 30, 2022     January 6, 2023
                                              30 Desember/           13 Januari/
      VR0036                      573.923                                                   5,77%                575.211                1.104          574.107
                                            December 30, 2022     January 13, 2023
                                              30 Desember/           27 Januari/
      VR0065                      370.622                                                   6,03%                372.361                1.614          370.747
                                            December 30, 2022     January 27, 2023
                                              30 Desember/           29 Januari/
      VR0044                      189.891                                                   6,66%                202.678               12.717          189.961
                                            December 30, 2022     January 29, 2023
      Jumlah/Total                                                                                              7.856.007              33.160        7.822.847




                                                                         93
Page 633
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)



11.   TAGIHAN LAINNYA                                                11.     OTHER RECEIVABLES

                                             31 Desember/            31 Desember/
                                             December 31,            December 31,
                                                 2023                    2022

      Tagihan transfer dan ATM                       122.780                   194.150                   Transfer receivables and ATM
      Lainnya                                        100.358                    91.997                                          Others
      Jumlah                                         223.138                   286.147                                           Total



      Pada tanggal 31 Desember 2023 dan 2022, tidak                         As of December 31, 2023 and 2022, there were no
      terdapat tagihan pada pihak berelasi.                                 other receivables from related parties.

      Kolektibilitas tagihan  lainnya    pada        tanggal                The collectibility of all other receivables as of
      31 Desember 2023 dan 2022 adalah lancar.                              December 31, 2023 and 2022 was classified as
                                                                            current.

      Manajemen berpendapat bahwa jumlah penyisihan                         Management believes that the allowance for
      kerugian penurunan nilai untuk menutupi kemungkinan                   impairment losses on uncollectible bank guarantee
      kerugian yang timbul akibat bank garansi tidak tertagih               is adequate.
      adalah memadai.




                                                                94
Page 634
                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                            (Expressed in millions of Rupiah, unless otherwise stated)


  12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                           12.       LOANS AND SHARIA FINANCING
        SYARIAH

        Seluruh kredit yang diberikan oleh Bank adalah dalam                                     All loans provided by the Bank are in Rupiah.
        Rupiah.
        a.   Berdasarkan jenis dan kolektibilitas                                                a.     By type and collectibility of loans

                                                                                   31 Desember/
                                                                                   December 31,
                                                                                       2023
                                                                        Dalam
                                                                      perhatian           Kurang
                                                                       khusus/            lancar/
                                           Jumlah/       Lancar/       Special             Sub-          Diragukan/         Macet/
                                            Total        Current      mention            standard         Doubtful          Loss
             Modal kerja                  15.550.351    13.946.393       924.261             59.999          88.048              531.650              Working capital
             Investasi                     8.002.279     6.786.068     1.060.393              6.918          13.921              134.979                    Investment
             Konsumsi                     31.208.273    30.301.188       378.777             30.496          36.134              461.678                 Consumption
             Jumlah                       54.760.903    51.033.649     2.363.431             97.413         138.103            1.128.307                          Total
             Dikurangi: Penyisihan                                                                                                                 Less: Allowance for
               kerugian penurunan nilai   (1.364.905)     (427.551)     (236.983)            (27.840)       (49.043)             (623.488)        impairment losses
             Jumlah kredit yang
               diberikan, neto            53.395.998    50.606.098     2.126.448              69.573         89.060              504.819              Total loans, net



                                                                               31 Desember/
                                                                               December 31,
                                                                                   2022
                                                                        Dalam
                                                                      perhatian          Kurang
                                                                       khusus/           lancar/
                                           Jumlah/       Lancar/       Special            Sub-          Diragukan/         Macet/
                                            Total        Current      mention           standard         Doubtful          Loss
             Modal kerja                  10.968.010     9.802.144       457.228            20.906          37.479              650.253              Working capital
             Investasi                     6.570.658     6.296.351       151.931             3.855           3.343              115.178                   Investment
             Konsumsi                     28.657.989    27.883.864       295.970            26.323          37.043              414.789                Consumption
             Jumlah                       46.196.657    43.982.359       905.129            51.084          77.865            1.180.220                         Total
             Dikurangi: Penyisihan                                                                                                               Less: Allowance for
               kerugian penurunan nilai   (1.318.612)     (395.953)      (78.550)            (18.979)      (28.495)            (796.635)         impairment losses
             Jumlah kredit yang
               diberikan, neto            44.878.045    43.586.406      826.579              32.105         49.370              383.585             Total loans, net




                                                                          95
Page 635
                                                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                            and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                (Expressed in millions of Rupiah, unless otherwise stated)



 12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                                      12.            LOANS AND SHARIA FINANCING (continued)
       SYARIAH (lanj\utan)
       b.   Berdasarkan sektor ekonomi dan kolektibilitas                                                       b.    By economic sector of loans and collectibility
                                                                                                  31 Desember/
                                                                                                 December 31,
                                                                                                      2023
                                                                                                  Dalam
                                                                                                perhatian       Kurang
                                                                                                 khusus/        lancar/
                                                          Jumlah/             Lancar/            Special         Sub-              Diragukan/        Macet/
                                                           Total              Current           mention        standard             Doubtful         Loss
            Rumah tangga                                   31.178.711          30.271.804          378.644             30.495          36.136          461.632                                               Household
            Perdagangan besar dan eceran                    8.537.898           7.515.612          610.679             31.394          55.198          325.015                            Wholesale and retail trade
            Konstruksi                                      3.752.737           2.813.677          823.599             11.970           1.000          102.491                                           Construction
            Industri pengolahan                             3.098.925           2.944.123           69.337              5.798           7.948           71.719                                   Processing industry
            Jasa kemasyarakatan dan sosial budaya           1.894.090           1.812.244           41.529              2.047          15.773           22.497                     Public and social culture services
            Pertanian perburuan dan kehutanan               2.702.863           2.311.400          297.926              6.783          15.767           70.987                      Agriculture, hunting and forestry
            Perantara keuangan                              2.007.568           1.954.823           12.849              5.588              36           34.272                               Financial intermediaries
            Akomodasi makanan dan minuman                     426.174             401.010           14.936              1.087           1.879            7.262                   Accomodation, food and beverage
            Jasa pendidikan                                   265.951             265.137              514                300               -                -                                   Education services
            Transportasi pergudangan dan                                                                                                                                               Transportation, warehousing
              komunikasi                                      211.356              192.494             11.262              1.173            393             6.034                             and communications
            Jasa kesehatan dan kegiatan sosial                221.041              207.914              7.379                  -              -             5.748              Health services and social activities
            Real estate usaha persewaan                                                                                                                                              Real estate, business services
              dan jasa perusahaan                             136.672              115.637              6.910                 3             3              14.119                         and business ownership
            Listrik gas dan air                                28.576               28.337                239                 -             -                   -                          Electricity, gas and water
            Perikanan                                         131.245              117.689              5.453               659         3.942               3.502                                               Fishery
            Pertambangan dan penggalian                        34.574               28.276              3.862                27             -               2.409                                Mining and quarying
            Jasa perorangan yang melayani rumah tangga         21.543               19.674              1.179                89            28                 573       Individual services which serve households
            Kegiatan yang belum jelas batasannya                4.091                4.091                  -                 -             -                   -                           Activity is still undefined
            Administrasi Pemerintahan, Pertahanan dan                                                                                                                     Government Administration, Defense and
              Jaminan Sosial Wajib                             78.063                 929           77.134                  -               -                 -                           Mandatory Sosial Security
            Lainnya                                            28.825              28.778                -                  -               -                47                                                   Other
            Jumlah                                         54.760.903          51.033.649        2.363.431             97.413         138.103         1.128.307                                                   Total
              Dikurangi: Penyisihan                                                                                                                                                            Less: Allowance for
            kerugian penurunan nilai                       (1.364.905)           (427.551)        (236.983)           (27.840)        (49.043)         (623.488)                                   impairment losses
            Jumlah kredit yang diberikan, neto             53.395.998          50.606.098        2.126.448             69.573          89.060           504.819                                      Total loans, net



                                                                                               31 Desember/
                                                                                               December 31,
                                                                                                   2022
                                                                                           Dalam
                                                                                         perhatian       Kurang
                                                                                          khusus/        lancar/
                                                         Jumlah/         Lancar/          Special         Sub-                 Diragukan/         Macet/
                                                          Total          Current         mention        standard                Doubtful          Loss
            Rumah tangga                                 28.626.074      27.853.074          294.934             26.323            37.043          414.700                                               Household
            Perdagangan besar dan eceran                  5.770.630       5.035.105          315.445             14.955            21.580          383.545                            Wholesale and retail trade
            Konstruksi                                    3.598.479       3.466.058           15.856              1.066                 -          115.499                                           Construction
            Industri pengolahan                           2.319.103       2.198.171           40.870              2.073             3.118           74.871                                   Processing industry
            Jasa kemasyarakatan dan sosial budaya         1.901.379       1.853.941           18.868                345             2.635           25.590                     Public and social culture services
            Pertanian perburuan dan kehutanan             1.579.975       1.331.024          157.290              4.177             6.645           80.839                      Agriculture, hunting and forestry
            Perantara keuangan                            1.187.332       1.127.892           27.999              1.359             5.764           24.318                               Financial intermediaries
            Akomodasi makanan dan minuman                   321.695         296.561           12.186                692                49           12.207                   Accomodation, food and beverage
            Jasa pendidikan                                 104.662         104.475                -                  -                 -              187                                   Education services
            Transportasi pergudangan dan                                                                                                                                           Transportation, warehousing
              komunikasi                                   173.033         160.565             3.563                   -                 -           8.905                                and communications
            Jasa kesehatan dan kegiatan sosial             135.295         124.066               810                   -                 -          10.419                 Health services and social activities
            Real estate usaha persewaan                                                                                                                                          Real estate, business services
              dan jasa perusahaan                          123.042           98.683            3.336                 91                41           20.891                            and business ownership
            Listrik gas dan air                             29.627           29.256              349                  -                 -               22                             Electricity, gas and water
            Perikanan                                       75.092           63.749            8.055                  3               878            2.407                                                  Fishery
            Pertambangan dan penggalian                     24.244           15.370            3.833                  -                 -            5.041                                   Mining and quarying
            Jasa perorangan yang melayani rumah tangga      13.872           12.374              697                  -               112              689          Individual services which serve households
            Kegiatan yang belum jelas batasannya             6.484            6.484                -                  -                 -                -                              Activity is still undefined
            Administrasi Pemerintahan, Pertahanan dan                                                                                                                 Government Administration, Defense and
              Jaminan Sosial Wajib                          174.195         174.195                -                  -                 -                 -                           Mandatory Sosial Security
            Lainnya                                          32.444          31.316            1.038                  -                 -                90                                                   Other
            Jumlah                                       46.196.657      43.982.359          905.129             51.084            77.865         1.180.220                                                   Total
              Dikurangi: Penyisihan                                                                                                                                                        Less: Allowance for
            kerugian penurunan nilai                     (1.318.612)       (395.953)         (78.550)            (18.979)          (28.495)        (796.635)                                   impairment losses
            Jumlah kredit yang diberikan, neto           44.878.045      43.586.406          826.579              32.105            49.370          383.585                                      Total loans, net



                                                                                        96
Page 636
                                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                   (Expressed in millions of Rupiah, unless otherwise stated)



  12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                                  12.      LOANS AND SHARIA FINANCING (continued)
        SYARIAH (lanjutan)

        c.   Berdasarkan sisa umur kredit                                                              c.      Maturity of loans
                                                                        31 Desember/                31 Desember/
                                                                        December 31,                December 31,
                                                                            2023                        2022
             Kurang dari 1 tahun                                             8.818.032                 5.289.294                                              Less than 1 year
             1 - 2 tahun                                                     3.306.375                 3.476.781                                                    1 - 2 years
             Lebih dari 2 - 5 tahun                                         16.294.690                12.888.940                                          More than 2 - 5 years
             Lebih dari 5 tahun                                             26.341.806                24.541.642                                                  Over 5 years
                                                                            54.760.903                46.196.657

             Dikurangi: Penyisihan                                                                                                                           Less: Allowance for
              kerugian penurunan nilai                                       (1.364.905)               (1.318.612)                                          impairment losses
             Jumlah kredit yang
              diberikan, neto                                               53.395.998                 44.878.045                                               Total loans, net


        d.   Berdasarkan hubungan                                                                      d.      By relationship
                                                                                         31 Desember/
                                                                                         December 31,
                                                                                              2023
                                                                                      Dalam
                                                                                    perhatian       Kurang
                                                                                     khusus/        lancar/
                                               Jumlah/             Lancar/           Special         Sub-                 Diragukan/        Macet/
                                                Total              Current          mention        standard                Doubtful         Loss
             Pihak berelasi (Catatan 40)          184.848            107.371             77.134                  -               343                -       Related party (Note 40)
             Pihak ketiga                      54.576.055         50.926.278          2.286.297             97.413           137.760        1.128.307                  Third parties
             Jumlah                            54.760.903         51.033.649          2.363.431             97.413           138.103        1.128.307                         Total
             Dikurangi: Penyisihan                                                                                                                              Less: Allowance for
               kerugian penurunan nilai                                                                                                                        impairment losses
             Pihak berelasi                         (1.351)             (156)            (1.054)                  -              (141)              -               Related parties
             Pihak ketiga                       (1.363.554)         (427.395)          (235.929)            (27.840)          (48.902)       (623.488)                 Third parties
             Jumlah                             (1.364.905)         (427.551)          (236.983)            (27.840)          (49.043)       (623.488)                        Total
             Jumlah kredit yang
               diberikan, neto                 53.395.998         50.606.098          2.126.448             69.573            89.060         504.819               Total loans, net

                                                                                      31 Desember/
                                                                                      December 31,
                                                                                          2022
                                                                                  Dalam
                                                                                perhatian       Kurang
                                                                                 khusus/        lancar/
                                           Jumlah/            Lancar/            Special         Sub-                  Diragukan/        Macet/
                                            Total             Current           mention        standard                 Doubtful         Loss
             Pihak berelasi (Catatan 40)      134.871            132.025            2.846                   -                   -                -       Related party (Note 40)
             Pihak ketiga                  46.061.786         43.850.334          902.283              51.084              77.865        1.180.220                  Third parties
             Jumlah                        46.196.657         43.982.359          905.129              51.084              77.865        1.180.220                         Total
             Dikurangi: Penyisihan                                                                                                                           Less: Allowance for
               kerugian penurunan nilai                                                                                                                     impairment losses
             Pihak berelasi                      (284)              (127)             (157)                 -                   -                -               Related parties
             Pihak ketiga                  (1.318.328)          (395.826)          (78.393)           (18.979)            (28.495)        (796.635)                 Third parties
             Jumlah                        (1.318.612)          (395.953)          (78.550)           (18.979)            (28.495)        (796.635)                        Total
             Jumlah kredit yang
               diberikan, neto             44.878.045         43.586.406          826.579              32.105              49.370         383.585               Total loans, net




                                                                                 97
Page 637
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


 12.    KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                           12.    LOANS AND SHARIA FINANCING (continued)
        SYARIAH (lanjutan)

       d.   Berdasarkan hubungan (lanjutan)                                  d.    By relationship (continued)

            Kredit yang diberikan kepada pihak berelasi,                           Loans to related parties include loans to key
            termasuk pinjaman kepada manajemen kunci.                              management. Loans to key management as of
            Pinjaman kepada manajemen kunci pada                                   December 31, 2023 and 2022 amounted to
            tanggal 31 Desember 2023 dan 2022, masing-                             Rp100,611 and Rp104,192, respectively (Note
            masing sebesar Rp100.611 dan Rp104.192                                 40), which involved automobiles, housing and
            (Catatan 40) merupakan kredit untuk pembelian                          other loans, with terms of between 1 - 20 years
            kendaraan, rumah dan keperluan lainnya                                 and interest at rates of between 4.60% per
            dengan jangka waktu antara 1 - 20 tahun dan                            annum.
            dikenakan bunga sebesar 4,60% per tahun.

       e.   Tingkat bunga tahunan                                            e.    Annual interest rates

            Tingkat bunga kredit yang diberikan dalam                              The annual interest rates of loans in Rupiah as of
            Rupiah pada tanggal 31 Desember 2023 dan                               December 31, 2023 and 2022 are 10.50%-
            2022, masing-masing sebesar 10,50%-12,75%.                             12.75% respectively.

       f.   Kredit sindikasi                                                 f.    Syndicated loans

            Keikutsertaan Bank sebagai anggota sindikasi                           The share of the Bank in syndicated loans as of
            dengan persentase penyertaan pada tanggal                              December 31, 2023 and 2022 ranged from 2.64%
            31 Desember 2023 dan 2022, masing-masing                               - 63.89%, respectively, from total of syndication
            berkisar antara 2,64%-63,89% dari total                                loan.
            pinjaman sindikasi.

       g.   Kredit yang direstrukturisasi                                    g.    Restructured loans
            Restrukturisasi kredit pada tanggal      31                            The restructured loans as of December 31, 2023
            Desember 2023 dan 2022, adalah masing-                                 and 2022 amounted to Rp3,901,204 and to
            masing sebesar Rp3.901.204 dan Rp3.937.602.                            Rp3,937,602.

                                                       31 Desember/      31 Desember/
                                                       December 31,      December 31,
                                                           2023                2022

            Perpanjangan waktu kredit                       906.673               215.738                             Exsistension of loan period
            Perpanjangan waktu kredit dan                                                                Exsistension of loan period and interest
              penyesuaian suku bunga                           8.100              13.846                                      rate adjusment
            Perpanjangan waktu kredit dan skema lain       2.986.431           3.708.018          Exsistension of loan period and other schemes
            Jumlah                                         3.901.204           3.937.602                                                    Total

            Bank telah melakukan restrukturisasi kredit                            The Bank has restructured loan for debtors
            untuk debitur yang terdampak pandemi Covid-                            affected by the Covid-19 pandemic in accordance
            19 sesuai dengan POJK No. 11/POJK.03/2020                              with POJK No. 11/POJK.03/2020 dated March 13,
            tanggal 13 Maret 2020 tentang Stimulus                                 2020 regarding National Economic Stimulus as
            Perekonomian Nasional sebagai Kebijakan                                Countercyclical Policy Impact of Coronavirus
            Countercyclical     Dampak      Penyebaran                             Disease Spread 2019.
            Coronavirus Disease 2019.

       h.   Batas Maksimum Pemberian Kredit (BMPK)                           h.    Legal Lending Limits (BMPK)
            Pada tanggal 31 Desember 2023 dan 2022,                                As of December 31, 2023 and 2022, the Bank
            Bank telah memenuhi ketentuan BMPK.                                    was in compliance with Bank Indonesia’s legal
                                                                                   lending limits.




                                                               98
Page 638
                                                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                     and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                        (Expressed in millions of Rupiah, unless otherwise stated)


  12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                                       12.        LOANS AND SHARIA FINANCING (continued)
        SYARIAH (lanjutan)
        i.   Dalam pinjaman termasuk saldo pembiayaan                                                        i.      The amounts of loans including financing
             yang diberikan berdasarkan prinsip Syariah dari                                                         provided based on Sharia principles from
             unit usaha Syariah pada tanggal 31 Desember                                                             Sharia unit as of December 31, 2023 and 2022
             2023 dan 2022, adalah sebagai berikut:                                                                  are as follows:
                                                                              31 Desember/               31 Desember/
                                                                              December 31,               December 31,
                                                                                  2023                       2022
             Murabahah                                                              902.861                    874.944                                                  Murabahah
             Musyarakah                                                           1.130.521                    767.912                                                 Musyarakah
             Mudharabah                                                             105.174                    223.915                                                 Mudharabah
             Qardh                                                                   49.062                     36.423                                                      Qardh
             Ijarah                                                                     241                        277                                                      Ijarah
             Jumlah                                                               2.187.859                  1.903.471                                                       Total
        j.   Kredit tidak lancar                                                                             j.      Non-performing loans (NPL)
                                                                            31 Desember/                   31 Desember/
                                                                            December 31,                   December 31,
                                                                                2023                           2022
             Jumlah NPL                                                          1.363.823                      1.309.169                                               Total NPL
             Rasio NPL bruto                                                         2,49%                          2,83%                                      Ratio of gross NPL
             Rasio NPL neto                                                          1,21%                          1,01%                                        Ratio of net NPL

        k.   Jumlah kredit yang diberikan dan pembiayaan                                                     k.      Total loans and sharia financing pledged as
             syariah dijaminkan pada tanggal 31 Desember                                                             collateral as of December 31, 2023 and 2022
             2023 dan 2022, masing-masing sebesar                                                                    were Rp885,916 and Rp303,930, respectively
             Rp885.916 dan Rp303.930 dengan jaminan                                                                  with collateral of time deposit amounting
             berupa deposito berjangka masing-masing                                                                 Rp203,926 and Rp127,942. (Note 18c).
             sebesar Rp203.926 dan Rp127.942. (Catatan
             18c).
        l.   Kredit yang diberikan dan pembiayaan syariah                                                    l.      Loans and sharia financing written-off for the
             yang dihapusbukukan untuk tahun yang berakhir                                                           year ended December 31, 2023 and 2022
             pada tanggal 31 Desember 2023 dan 2022,                                                                 amounted to Rp629,551 and Rp900,559
             masing-masing adalah sebesar Rp629.551 dan                                                              respectively.
             Rp900.559.
        m.   Perubahan penyisihan kerugian penurunan nilai                                                   m.      The changes in the allowance for impairment
             adalah sebagai berikut:                                                                                 losses are as follows:
                                                                                                  2023

                                                                                                                                                      Pembiayaan
             Cadangan kerugian penurunan nilai - kredit yang diberikan/                             Tahap/            Tahap/         Tahap/             syariah/          Jumlah/
             Allowance for impairment losses - loans                                                Stage 1           Stage 2        Stage 3        Sharia financing       Total

             Saldo awal tahun/
                                                                                                         263.059          61.303        911.041              83.210         1.318.613
             Beginning balance of year
             Perubahan aset keuangan yang diakui pada laporan laba rugi:/
             Change due to financial assets recognize in the statement of profit or loss that
             have:
              Transfer ke tahap 1/Transfer to stage 1                                                     73.003          (22.860)       (50.143)                  -                -
              Transfer ke tahap 2/Transfer to stage 2                                                      (5.661)         9.079          (3.418)                  -                -
              Transfer ke tahap 3/Transfer to stage 3                                                     (18.452)        (24.104)       42.556                    -                -
             Penghapusbukuan/Writte-off                                                                  (115.198)        (70.829)      (395.310)           (48.214)         (629.551)
             Dibebankan ke laporan laba rugi/
                                                                                                         170.959         121.483        365.005              18.396          675.843
             Charge to statement of profit or loss


             Saldo 31 Desember 2023/
                                                                                                         367.710          74.072        869.731              53.392         1.364.905
             Balance at December 31, 2023



                                                                                           99
Page 639
                                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                           (Expressed in millions of Rupiah, unless otherwise stated)


 12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                                     12.      LOANS AND SHARIA FINANCING (continued)
       SYARIAH (lanjutan)

       m.   Perubahan penyisihan kerugian penurunan nilai                                               m. The changes in the allowance for impairment
            adalah sebagai berikut (lanjutan):                                                             losses are as follows (continued):

                                                                                                2022

                                                                                                                                                     Pembiayaan
            Cadangan kerugian penurunan nilai - kredit yang diberikan/                           Tahap/              Tahap/         Tahap/             syariah/       Jumlah/
            Allowance for impairment losses - loans                                              Stage 1             Stage 2        Stage 3        Sharia financing    Total

            Saldo awal tahun/
                                                                                                        15.807           73.110       1.659.071             83.429      1.831.417
            Beginning balance of year
            Perubahan aset keuangan yang diakui pada laporan laba rugi:/
            Change due to financial assets recognize in the statement of profit or loss that
            have:
             Transfer ke tahap 1/Transfer to stage 1                                                   137.683           (22.598)      (115.085)                 -              -
             Transfer ke tahap 2/Transfer to stage 2                                                    (1.493)           11.190         (9.697)                 -              -
             Transfer ke tahap 3/Transfer to stage 3                                                    (2.649)          (34.464)        37.113                  -              -
            Penghapusbukuan/Writte-off                                                                 (58.773)          (25.414)      (800.922)           (15.450)      (900.559)
            Dibebankan ke laporan laba rugi/
                                                                                                       172.483           59.479        140.562              15.230       387.754
            Charge to statement of profit or loss

            Saldo 31 Desember 2022/
                                                                                                       263.058           61.303        911.042              83.209      1.318.612
            Balance at December 31, 2022

            Manajemen       berpendapat     bahwa  jumlah                                                         Management believes that the allowance for
            penyisihan kerugian penurunan nilai untuk                                                             impairment losses on uncollectible loans and
            menutup kemungkinan kerugian yang timbul                                                              sharia financing is adequate.
            akibat kredit yang diberikan dan pembiayaan
            syariah tidak tertagih adalah memadai.

            Saldo cadangan kerugian penurunan nilai                                                               The balance of allowance for impairment losses
            adalah sebesar Rp732.824 (individual) dan                                                             amounted to Rp732,824 (individual) and
            Rp632.081      (kolektif) pada tanggal 31                                                             Rp632,081 (collective) as of December 31, 2023
            Desember 2023 dan Rp866.893 (individual) dan                                                          and Rp866,893         (individual) and Rp451,719
            Rp451.719 (kolektif) pada tanggal 31 Desember                                                         (collective) as of December 31, 2022.
            2022.

            Beban penyisihan kerugian penurunan nilai                                                             Provision for impairment losses amounted to
            adalah sebesar Rp675.843 dan Rp387.754                                                                Rp675,843 and Rp387,754 as of December 31,
            pada tanggal 31 Desember 2023 dan 2022                                                                2023 and 2022 (Note 33).
            (Catatan 33).

            Manajemen      berpendapat   bahwa     jumlah                                                         Management believes that the allowance for
            cadangan kerugian penurunan nilai yang                                                                impairment losses is adequate to cover possible
            dibentuk cukup untuk menutup kerugian yang                                                            losses arising from uncollectible loans and sharia
            mungkin timbul akibat tidak tertagihnya kredit                                                        financing.
            yang diberikan dan pembiayaan syariah.




                                                                                          100
Page 640
                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                        PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                        JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                       NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                       As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                   and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                      (Expressed in millions of Rupiah, unless otherwise stated)


  12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                                     12.       LOANS AND SHARIA FINANCING (continued)
        SYARIAH (lanjutan)

        n.   Mutasi nilai tercatat bruto kredit yang diberikan                             n.        Changes in the gross carrying amount of loans
             dan pembiayaan syariah:                                                                 and sharia financing:
                                                                                  2023

                                                                                                                                         Pembiayaan
             Nilai tercatat bruto kredit yang diberikan/                            Tahap/              Tahap/         Tahap/              syariah/        Jumlah/
             Gross carrying amount of the loans                                     Stage 1             Stage 2        Stage 3         Sharia financing     Total

             Saldo awal tahun/
                                                                                       42.094.584           598.657      1.599.946            1.903.471     46.196.658
             Beginning balance of year
             Perubahan aset keuangan/
                                                                                                                                   -
             Change due to financial assets
              Transfer ke tahap 1/Transfer to stage 1                                     218.473          (230.287)        11.814                    -               -
              Transfer ke tahap 2/Transfer to stage 2                                    (453.664)          464.752        (11.088)                   -               -
              Transfer ke tahap 3/Transfer to stage 3                                    (785.024)         (222.195)     1.007.219                    -               -
             Aset keuangan yang baru atau dibeli/
                                                                                       23.969.845           269.423        688.003             332.602      25.259.873
             New financial assets originated or purchased

             Modifikasi arus kas kontraktual atas aset keuangan/
                                                                                       (2.598.015)          (27.837)      (970.923)                         (3.596.775)
             Modification of contractual cashflow of financial assets
             Perubahan akrual bunga/Change in interest accrual                      (12.613.817)           (111.726)       256.241                    -    (12.469.302)
             Penghapusbukuan/Writte-off                                                (115.198)            (70.829)      (395.310)             (48.214)      (629.551)

             Saldo 31 Desember 2023/
                                                                                       49.717.184           669.958      2.185.902            2.187.859     54.760.903
             Balance at December 31, 2023


                                                                                  2022

                                                                                                                                         Pembiayaan
             Nilai tercatat bruto kredit yang diberikan/                            Tahap/              Tahap/         Tahap/              syariah/        Jumlah/
             Gross carrying amount of the loans                                     Stage 1             Stage 2        Stage 3         Sharia financing     Total

             Saldo awal tahun/
                                                                                       38.319.178          549.722       2.118.291           1.762.368      42.749.559
             Beginning balance of year
             Perubahan aset keuangan/
             Change due to financial assets
              Transfer ke tahap 1/Transfer to stage 1                                     332.412          (192.277)      (140.135)                   -              -
              Transfer ke tahap 2/Transfer to stage 2                                    (473.300)          492.701        (19.401)                   -              -
              Transfer ke tahap 3/Transfer to stage 3                                    (539.528)         (216.055)       755.583                    -              -
             Aset keuangan yang baru atau dibeli/
                                                                                       19.942.656          170.525         65.829                     -     20.179.010
             New financial assets originated or purchased
             Modifikasi arus kas kontraktual atas aset keuangan/
                                                                                       (3.169.533)          (34.190)      (380.246)                   -     (3.583.968)
             Modification of contractual cashflow of financial assets
             Perubahan bersih pada eksposur dan pengukuran kembali/
                                                                                    (12.258.559)           (146.354)             976           156.553     (12.247.385)
             Net change in exposure and remeasurement
             Penghapusbukuan/Writte-off                                                   (58.773)          (25.414)      (800.922)            (15.450)       (900.559)

             Saldo 31 Desember 2022/
                                                                                       42.094.553          598.658       1.599.975           1.903.471      46.196.657
             Balance at December 31, 2022




                                                                        101
Page 641
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 12.   KREDIT YANG DIBERIKAN DAN PEMBIAYAAN                      12.    LOANS AND SHARIA FINANCING (continued)
       SYARIAH (lanjutan)
       o.    Rasio kredit usaha mikro, kecil dan menengah              o.    Ratio of micro, small and medium scale
             (UMKM) terhadap jumlah kredit yang diberikan                    enterprises (UMKM) credit to total loans as at
             pada tanggal-tanggal 31 Desember 2023 dan                       December 31, 2023 and 2022 were 26.81% and
             2022, masing-masing adalah sebesar 26,81%                       22.81% respectively.
             dan 22,81%.

       p.    Dalam rangka percepatan Pemulihan Ekonomi                 p.     In order to accelerate National Economic
             Nasional (PEN) sesuai Peraturan Menteri                         Recovery Program (PEN) based on PMK No.
             Keuangan No. 70/PMK.05/2020, Pemerintah                         70/PMK.05/2020, Government place their funds in
             melakukan Penempatan Uang Negara kepada                         banks, which the Bank is one of them, in time
             perbankan salah satunya Bank, dalam bentuk                      deposit with 6 (six) months tenor contract
             deposito dengan tenor 6 (enam) bulan sebesar                    amounted to Rp2,000,000 on August 14, 2020
             Rp2.000.000 pada tanggal 14 Agustus 2020                        until February 10, 2021. The Government fund
             sampai 10 Februari 2021. Dana pemerintah                        has been distributed in form of loan amounted to
             tersebut telah disalurkan dalam bentuk kredit                   Rp8,092,192 until February 10, 2021 and the fund
             sebesar Rp8.092.192 sampai dengan tanggal 10                    will be returned to Government.
             Februari 2021, dan selanjutnya dana akan
             dikembalikan kepada Pemerintah.

             Bank juga berpartisipasi dalam penyaluran                       Bank also participate in channeling interest
             subsidi bunga dari Pemerintah bagi debitur                      subsidy from Government for Small Medium
             UMKM dan subsidi bunga tambahan untuk                           Enterprise (SME) debtors and additional interest
             Kredit Usaha Rakyat (KUR) sesuai dengan PMK                     subsidy for Kredit Usaha Rakyat (KUR) program
             No.85/PMK.05/2020 untuk periode Mei 2020.                       based on PMK No.85/PMK.05/2020 for period
                                                                             May, 2020.

             Besaran subsidi bunga tersebut adalah sebagai                   The interest subsidies will cover loan interest are
             berikut:                                                        as follows:

            1.   Plafon kredit kurang dari atau sama dengan                 1.   The credit limit is less than or equal to Rp500,
                 Rp500, subsidi bunga yang diberikan                             the interest subsidy is 6% for the first 3 ((three)
                 sebesar 6% selama 3 (tiga) bulan pertama                        months and 3% for the following three months.
                 dan 3% selama tiga bulan berikutnya.
            2.   Plafon kredit lebih dari Rp500 sampai                      2.   The credit limit is more than Rp500 to
                 dengan Rp10.000, subsidi bunga yang                             Rp10,000, the interest subsidy is 3% for the
                 diberikan sebesar 3% selama 3 (tiga) bulan                      first (three) months and 2% for the following
                 pertama dan 2% selama tiga bulan                                three months.
                 berikutnya.

            Sampai dengan tanggal 31 Desember 2023,                          Until December 31, 2023, the Bank has
            Bank telah menerima subsidi bunga dari                           distributed interest subsidies for SME debtors
            Pemerintah untuk disalurkan kepada debitur                       amounted to Rp2,778.
            UMKM sebesar Rp2.778.




                                                           102
Page 642
                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)


  13.   PENDAPATAN               BUNGA   YANG      MASIH       AKAN          13.      ACCRUED INTEREST INCOME
        DITERIMA
                                                   31 Desember/                           31 Desember/
                                                  December 31,                           December 31,
                                                       2023                                   2022
                                         Jumlah nosional                        Jumlah nosional
                                         mata uang asing/                       mata uang asing/
                                         Notional amount                        Notional amount
                                             foreign                                foreign
                                           currencies         Ekuivalen           currencies         Ekuivalen
                                          (Dalam angka         Rupiah/           (Dalam angka         Rupiah/
                                          penuh/ In full        Rupiah           penuh/ In full        Rupiah
                                             amount)         equivalent             amount)         equivalent


        Rupiah:                                                                                                                                Rupiah:
         Kredit yang diberikan                                  377.219                                    340.021                             Loans
         Lain-lain                                              308.346                                    306.091                             Others

        Mata uang asing:                                                                                                            Foreign currencies:
         Dolar Amerika Serikat                    10.976            169                       835               13                United States Dollar
        Jumlah pendapatan bunga yang
         masih akan diterima                                    685.734                                    646.125       Total accrued interest income


  14.   BIAYA DIBAYAR DIMUKA                                                  14.     PREPAID EXPENSES

                                                      31 Desember/                  31 Desember/
                                                      December 31,                  December 31,
                                                          2023                          2022

        Asuransi tunjangan hari tua              97.840                                     88.765               Mutual aid pension insurance
        Asuransi lainnya                         50.048                                     37.924                            Other insurance
        Sewa dibayar dimuka                      22.372                                      6.216                                Prepaid rent
        Lainnya                                  37.192                                     33.756                                     Others
        Jumlah                                  207.452                                    166.661                                      Total
        Sewa dibayar dimuka merupakan sewa atas gedung                                Prepaid rent represents rent of the branch office
        kantor cabang dan rumah dinas.                                                buildings and official house.




                                                                     103
Page 643
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                   (Expressed in millions of Rupiah, unless otherwise stated)


  15.   ASET TETAP                                                                    15.       FIXED ASSETS
                                                                            31 Desember/
                                                                            December 31,
                                                                                2023
                                  Saldo awal/
                                                   Penambahan/     Pengurangan/      Reklasifikasi/         Revaluasi/            Saldo akhir/
                                  Beginning
                                                     Additions      Deduction       Reclassification       Revaluation           Ending balance
                                   balance
        Biaya perolehan                                                                                                                                                   Cost
        Tanah                           945.010                -               -                       -          (1.950)                943.060                          Land
        Bangunan                        203.402              320               -                       -               -                 203.722                      Buildings
        Peralatan kantor                678.419           58.338               -                       -               -                 736.757              Office equipment
        Kendaraan bermotor               50.516           13.746          12.552                       -               -                  51.710                Motor vehicles
                                      1.877.347           72.404          12.552                       -          (1.950)              1.935.249

        Aset dalam penyelesaian             681              115               -                       -               -                     796       Construction in progress
        Aset hak guna                   231.232           76.779          13.178                       -               -                 294.833           Right of use assets
                                      2.109.260          149.298          25.730                       -          (1.950)              2.230.878
        Akumulasi penyusutan                                                                                                                        Accumulated depreciation
        Bangunan                        116.296            9.179               -                       -                 -               125.475                    Buildings
        Peralatan kantor                574.638           67.928               -                       -                 -               642.566            Office equipment
        Kendaraan bermotor               24.616            7.426          12.552                       -                 -                19.490               Motor vehicles
                                        715.550           84.533          12.552                       -                 -               787.531
        Aset hak guna                   109.460           66.219          10.045                       -                 -               165.634            Right of use assets
                                        825.010          150.752          22.597                       -                 -               953.165
        Nilai buku neto               1.284.250                                                                                        1.277.713               Net book value


                                                                             31 Desember/
                                                                             December 31,
                                                                                 2022
                                  Saldo awal/
                                                   Penambahan/     Pengurangan/       Reklasifikasi/        Revaluasi/            Saldo akhir/
                                  Beginning
                                                     Additions      Deduction        Reclassification      Revaluation           Ending balance
                                   balance
        Biaya perolehan                                                                                                                                                    Cost
        Tanah                            856.993          47.736                -                   -              40.281                 945.010                          Land
        Bangunan                         203.366              36                -                   -                   -                 203.402                      Buildings
        Peralatan kantor                 546.324          98.090              234              34.239                   -                 678.419              Office equipment
        Kendaraan bermotor                33.754          28.840           12.078                   -                   -                  50.516                Motor vehicles
                                       1.640.437         174.702           12.312              34.239              40.281               1.877.347

        Aset dalam penyelesaian              591              90                -                   -                   -                     681       Construction in progress
        Aset hak guna                    265.235          73.477          107.480                   -                   -                 231.232           Right of use assets
                                       1.906.263         248.269          119.792              34.239              40.281               2.109.260
        Akumulasi penyusutan                                                                                                                         Accumulated depreciation
        Bangunan                         107.086           9.210                -                   -                        -            116.296                    Buildings
        Peralatan kantor                 492.081          64.921              234              17.870                        -            574.638            Office equipment
        Kendaraan bermotor                33.090           3.604           12.078                   -                        -             24.616               Motor vehicles
                                         632.257          77.735           12.312              17.870                        -            715.550
        Aset hak guna                    129.795          87.145          107.480                   -                        -            109.460            Right of use assets
                                         762.052         164.880          119.792              17.870                        -            825.010
        Nilai buku neto                1.144.211                                                                                        1.284.250               Net book value




                                                                           104
Page 644
                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                  and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                     (Expressed in millions of Rupiah, unless otherwise stated)


 15.   ASET TETAP (lanjutan)                                                  15.       FIXED ASSETS (continued)
       Aset hak guna per 31 Desember 2023 dan 2022                                      Right of use assets as of December 31, 2023 and
       adalah sebagai berikut:                                                          2022 are as follows:
                                                                      30 September/
                                                                      September 30,
                                                                          2023
                                     Saldo awal/       Penambahan/    Pengurangan/       Reklasifikasi/                Saldo akhir/
                                     Beginning           Addition       Deduction       Reclassification             Ending balance
                                      balance
        Biaya perolehan                                                                                                                                              Cost
        Aset Hak Guna                                                                                                                                Right of use assets
        Bangunan                            188.065         42.019           4.280                           -              225.804                             Buildings
        Peralatan Kantor                     10.737         34.672           7.938                           -               37.471                     Office Equipment
        Kendaraan                            32.430             88             960                           -               31.558                       Motor Vehicles
        Total Biaya Perolehan               231.232         76.779          13.178                               -          294.833                            Total Cost

        Akumulasi penyusutan                                                                                                                  Accumulated depreciation
        Aset Hak Guna                                                                                                                              Right of use assets
        Bangunan                             86.080         41.654           4.280                           -              123.454                           Buildings
        Peralatan Kantor                      5.990         12.178           4.805                           -               13.363                   Office Equipment
        Kendaraan                            17.390         12.387             960                           -               28.817                      Motor Vehicles
        Total Akumulasi Penyusutan          109.460         66.219          10.045                               -          165.634     Total Accumulated depreciation
        Nilai buku                          121.772                                                                         129.199                     Net book value




                                                                     31 Desember/
                                                                     December 31,
                                                                         2022
                                     Saldo awal/      Penambahan/    Pengurangan/      Reklasifikasi/              Saldo akhir/
                                     Beginning          Addition      Deduction       Reclassification           Ending balance
                                      balance
        Biaya perolehan                                                                                                                                           Cost
        Aset Hak Guna                                                                                                                             Right of use assets
        Bangunan                           159.663         53.474          25.072                        -               188.065                             Buildings
        Peralatan Kantor                    25.778          9.222          24.263                        -                10.737                     Office Equipment
        Kendaraan                           79.794         10.781          58.145                        -                32.430                       Motor Vehicles
        Total Biaya Perolehan              265.235         73.477         107.480                        -               231.232                            Total Cost

        Akumulasi penyusutan                                                                                                                Accumulated depreciation
        Aset Hak Guna                                                                                                                            Right of use assets
        Bangunan                            69.492         41.660          25.072                        -                86.080                            Buildings
        Peralatan Kantor                    15.563         14.690          24.263                        -                 5.990                    Office Equipment
        Kendaraan                           44.740         30.795          58.145                        -                17.390                      Motor Vehicles
        Total Akumulasi Penyusutan         129.795         87.145         107.480                        -               109.460      Total Accumulated depreciation
        Nilai buku                         135.440                                                                       121.772                      Net book value




                                                                      105
Page 645
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


  15.   ASET TETAP (lanjutan)                                     15.     FIXED ASSETS (continued)

        Tanah merupakan Sertifikat Hak Guna Bangunan                      Land represents Building Rights Title (SHGB), Strata
        (SHGB), Sertifikat Hak Milik atas Satuan Rumah Susun              Title (SHMASRS) and Freehold Title (SHM) of
        (SHMASRS) dan Sertifikat Hak Milik (SHM) seluas                   106,820 m2. SHGB and SHMASRS were obtained
        106.820 m2. SHGB dan SHMASRS diberikan untuk                      for a maximum period of 30 years and may be
        periode maksimum 30 tahun dan dapat diperbarui.                   extended.

        Beban penyusutan untuk tahun yang berakhir pada                   Depreciation expense for years ended December
        tanggal 31 Desember 2023 dan 2022, masing-masing                  31, 2023 and 2022 amounted to Rp150,752 and
        sebesar Rp150.752 dan Rp164.880 (Catatan 35).                     Rp164,880 respectively (Note 35).

        Pada tanggal 31 Desember 2023, Bank melakukan                     On December 31, 2023, the Bank conducted a
        penilaian kembali (revaluasi) atas aset tetap tanah               revaluation of land fixed assets for accounting
        untuk tujuan akuntansi. Untuk tujuan akuntansi, Bank              purposes. For accounting purposes, the Bank has
        telah mengubah kebijakan akuntansi untuk pengukuran               changed its accounting policy for land measurement
        tanah menjadi model revaluasian dari sebelumnya                   to a revaluation model from the previous cost model.
        menggunakan model biaya. Bank mencatat penurunan                  The Bank recorded decrease from revaluation
        dari revaluasi aset tetap sebesar Rp1.950 pada 2023               amounting to Rp1,950 in 2023 and increase
        dan kenaikan sebesar Rp40.281 pada 2022. Kenaikan                 amounting to Rp40,281 in 2022. The increase and
        dan penurunan nilai tercatat yang timbul dari revaluasi           decrease in the carrying amount arising from the
        dicatat sebagai “Surplus Revaluasi Aset Tetap”, dan               revaluation are recorded as "Surplus Revaluation of
        disajikan dalam penghasilan komprehensif lain.                    Fixed Assets", and are presented in other
                                                                          comprehensive income.

        Penilaian dilakukan sesuai dengan ketentuan dari Kode             Appraisals are performed based on Indonesian
        Etik Penilai Indonesia dan Standar Penilaian Indonesia            Appraisers Ethics Code and Indonesian Appraise
        (KEPI & SPI) serta Peraturan No. VIII.C.4 tentang                 Standards (KEPI & SPI) and Regulation No. VIII.C.4
        Pedoman Penilaian dan Penyajian Laporan Penilaian                 concerning the Guidance on Valuation and
        di Pasar Modal, ditentukan berdasarkan transaksi                  Presentation for the Appraisal Report on the Capital
        pasar terkini dan dilakukan dengan ketentuan-                     Market based on references from recent market
        ketentuan yang lazim dan menggunakan pendekatan                   transactions and ensue within the clause.
        penilaian.

        Dalam pengukuran nilai wajar tanah, Penilai                       In fair value measurement of land, the Independent
        Independen memperhitungkan kemampuan peserta                     Appraisers counts market participant’s ability to
        pasar untuk menghasilkan manfaat ekonomi dengan                  generate economic benefits by using the assets in
        penggunaan tertinggi dan terbaik atas aset atau                  its highest and best use or by selling it to another
        dengan menjual aset ke peserta pasar lain yang akan              market participant that would use the asset in its
        menggunakan aset pada kondisi tertinggi dan                      highest and best use. The valuation method used by
        penggunaan terbaik. Metode penilaian yang digunakan              the Independent Appraiser is market approach.
        oleh Penilai Independen adalah pendekatan pasar.




                                                            106
Page 646
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


 15.   ASET TETAP (lanjutan)                                         15.     FIXED ASSETS (continued)

       Berdasarkan laporan penilaian dari Kantor Jasa                        Based on appraisal report of “Kantor Jasa Penilai
       Penilai Publik (KJPP) KJPP Satria Iskandar Setiawan                   Publik (KJPP) Satria Iskandar Setiawan and Partner
       & Rekan tanggal 12 Januari 2024 dan KJPP Hari                         dated January 12,2024 and KJPP Hari Utomo and
       Utomo & Rekan tanggal 5 Januari 2023 nilai wajar                      Partner dated January 5, 2023 the valuation of fixed
       atas aset tetap yang dimiliki Bank pada tanggal 31                    assets owned by the Banks as of December 31, 2023
       Desember 2023 dan 2022 adalah sebesar                                 and 2022 amounted Rp1,496,366 and Rp,1,261,746
       Rp1.496.366 dan Rp1.261.746.                                          respectively.

       Pada tanggal 31 Desember 2023 dan 2022, jika tanah                    On December 31, 2023 and 2022, if land is measured
       diukur dengan metode biaya, nilai tercatatnya                         by cost method, its carrying value is Rp942,864.
       sebesar Rp942.864

       Aset tetap, kecuali tanah, pada tanggal 31 Desember                   All fixed assets, except land were insured against fire,
       2023 dan 2022 diasuransikan terhadap risiko                           riot, accident, and theft risks as of December 31, 2023
       kebakaran, kerusuhan, kecelakaan, dan pencurian                       and 2022 for insurance coverage amounting to
       dengan jumlah pertanggungan masing-masing                             Rp1,152,326       and      Rp1,113,426,    respectively.
       sebesar Rp1.152.326 dan Rp1.113.426. Manajemen                        Management believes that the insurance coverage is
       berpendapat bahwa nilai pertanggungan tersebut                        adequate to cover possible losses form the assets for
       cukup untuk menutup kemungkinan kerugian atas                         insured risks.
       aset yang dipertanggungkan.

       Manajemen berkeyakinan bahwa tidak terdapat                           Management believes that there is no impairment in
       penurunan nilai aset tetap yang dimiliki Bank                         the value of fixed assets owned by the Bank during
       sebagaimana dimaksud dalam PSAK 48 (Revisi                            the year as described in PSAK 48 (Revised 2014),
       2014) selama tahun berjalan, karena manajemen                         because management believes that the carrying
       berpendapat bahwa nilai tercatat aset tetap tidak                     amounts of fixed assets do not exceed the estimated
       melebihi estimasi nilai yang dapat diperoleh kembali.                 recoverable amount.

       Rincian aset dalam penyelesaian adalah sebagai                        The details of construction in progress are as follows:
       berikut:

                                                                         Persentase                  Akumulasi                    Estimasi
                                                                       penyelesaian/                    biaya/                 Penyelesaian/
                                           Jenis aset/                 Percentage of               Accumulated                  Estimated
                                          Type of asset                 completion                    Cost                      Completion
        31 Desember/
                                       Bangunan/Buildings                     3%                          796                        2025
        December 31, 2023
        31 Desember/
                                       Bangunan/Buildings                     11%                         681                        2024
        December 31, 2022

       Jumlah tercatat bruto dari aset tetap yang telah                     The gross carrying amount of fixed assets that have
       disusutkan penuh namun masih digunakan dalam                         been fully depreciated but still in use in operations are
       usaha adalah sebagai berikut:                                        as follows:
                                                     2023                      2022

       Bangunan                                            21.010                    19.264                                          Buildings
       Peralatan kantor                                   456.357                   399.176                                  Office equipment
       Kendaraan bermotor                                   7.006                    31.539                                      Motor vehicle
       Jumlah                                             484.373                   449.980                                              Total

       Pada tanggal 31 Desember 2023 dan 2022, tidak                        As of December 31, 2023 and 2022, there were no
       terdapat aset tetap yang dijadikan jaminan.                          fixed assets pledged as collateral.




                                                            107
Page 647
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)



  15.   ASET TETAP (lanjutan)                                            15.     FIXED ASSETS (continued)
        Aset tetap yang telah dihapusbuku, kemudian                              Fixed assets that have been write-off, then do the
        dilakukan penjualan melalui lelang dengan rincian                        sale through auction as follows:
        sebagai berikut:
                                                      December 31,        December 31,
                                                          2023                2022
         Harga jual                                            5.608               5.274                                         Proceed
         Nilai buku                                                -                   -                                       Book Value
         Laba penjualan aset tetap                             5.608                    5.274              Gain from sale of fixed assets


  16.   ASET LAIN-LAIN                                                   16.     OTHER ASSETS
                                                       December 31,            December 31,
                                                           2023                    2022

        Beban yang ditangguhkan                               126.337                  110.112                                  Deffered charges
        Persediaan alat tulis kantor dan barang
         cetakan                                                22.263                  19.812              Office stationery and printed form
        Lainnya, neto                                         283.458                   54.486                                       Others, net
        Penyisihan penurunan nilai realisasi bersih           (58.656)                (43.412)     Allowance for decline in net realizable value
        Jumlah                                                373.402                 140.998                                              Total



        Beban yang ditangguhkan merupakan beban atas                             Deferred charges represent costs related to the
        biaya pendirian kantor, renovasi gedung dan jaringan                     establishment of offices, building renovations and
        telekomunikasi. Beban ditangguhkan diamortisasi                          telecommunication network. Deferred charges are
        selama masa sewa tanah atau gedung dengan                                amortized over the land or building lease period
        menggunakan metode garis lurus.                                          using the straight-line method.
        Lainnya termasuk biaya perpanjangan hak atas tanah                       Others included deferred cost related to the
        yang ditangguhkan dan diamortisasi selama masa                           extension of the landright and amortized over the
        manfaat hak atas tanah dengan menggunakan metode                         period of the related landright using the straight-line
        garis lurus.                                                             method.
        Manajemen berpendapat bahwa jumlah penyisihan                            Management believes that there is no impairment in
        kerugian penurunan nilai untuk menutup kemungkinan                       the value of other assets do not exceed the
        kerugian yang timbul akibat aset lain-lain tidak melebihi                estimated recoverable amount.
        estimasi nilai yang dapat diperoleh kembali.
        Perubahan penyisihan penurunan nilai realisasi bersih                   The movements in the allowance for decline in net
        adalah sebagai berikut:                                                 realizable value are as follows:
                                                            2023                 2022
        Saldo awal                                             43.412               25.460                                     Beginning balance
        Penyisihan selama tahun berjalan                       15.244               17.952                          Provision for the current year
        Saldo akhir                                            58.656                43.412                                      Ending balance




                                                                108
Page 648
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 17.   LIABILITAS SEGERA                                           17. OBLIGATIONS DUE IMMEDIATELY
                                               December 31,          December 31,
                                                   2023                  2022
                                                                                          Transfer and cheques pending
        Transfer, inkaso, kliring                     308.136              319.871               collection and clearing
        Penerimaan yang akan diperhitungkan           150.838              122.431        Acceptance pending settlement
        Beban sudah efektif harus dibayar              73.803               91.760     Amount involving expenses payable
        ATM Bersama                                    21.013               12.779                          ATM Bersama
        Lain-lain                                     433.814              325.673                                 Others
        Jumlah                                        987.604              872.514                                  Total


       Penerimaan dana yang akan diperhitungkan                            Acceptance pending settlement represents funds
       merupakan titipan dana untuk pembayaran pajak on-                   received for the payment of on-line tax, payment of
       line, pembayaran telepon, pembayaran PBB dan lain-                  telephone, payment of land and building tax and
       lain.                                                               others.
       Beban sudah efektif harus dibayar merupakan beban                    Amounts involving expenses payable represent
       yang masih harus dibayar atas listrik, telepon, BPJS                 accrued expenses of electricity, telephone, social
       dan lain-lain.                                                       security (“BPJS”) and others.
       Liabilitas lainnya meliputi rekening kontrol, utang                 Other liabilities include control account, purchase
       pembelian dan lainnya.                                              payable and others.
       Seluruh liabilitas segera pada tanggal 31 Desember                  All of obligations due immediately as of December 31,
       2023 dan 2022 adalah dalam mata uang Rupiah.                        2023 and 2022 are in Rupiah currency.


 18.   SIMPANAN DARI NASABAH                                       18.     DEPOSITS FROM CUSTOMERS
       a.   Berdasarkan segmen                                            a.    Based on segment
                                                    2023                           2022
             Rupiah                                                                                                                Rupiah
             Konvensional                                                                                                   Conventional
             Tabungan                                                                                                             Savings
             - Simpeda                             16.534.449                     16.468.574                                    Simpeda -
             - Tabunganku                           4.240.337                      3.904.029                                Tabunganku -
             - Siklus                               3.863.580                      2.606.393                                       Siklus -
             - Siklus Prioritas                     3.206.551                      2.563.553                              Siklus Prioritas -
             - Simpanan Pelajar                       102.555                         71.323                            Simpanan Pelajar -
             - Haji                                    17.161                         18.428                                          Haji -
             - Siklus Nelayan                             414                            295                              Siklus Nelayan -
                                                   27.965.047                     25.632.595
             Giro                                                                                                        Current accounts
             - Pemerintah Daerah                   11.971.999                     14.593.208                             Municipal District -
             - Umum                                 8.773.630                      8.877.147                                        Public -
                                                   20.745.629                     23.470.355
             Deposito berjangka                                                                                             Time deposits
             - 1 bulan                             13.528.703                      5.874.726                                     1 month -
             - 2 bulan                                217.270                        271.709                                   2 months -
             - 3 bulan                              5.393.406                     16.276.952                                   3 months -
             - 6 bulan                                432.388                        325.605                                   6 months -
             - 12 bulan                             6.963.367                      7.648.875                                  12 months -
             - 18 bulan                                38.837                         25.594                                  18 months -
             - 24 bulan                                17.795                         10.643                                  24 months -
             - Jatuh tempo                                760                            560                                   Due Date -
             - Deposito on call                       164.700                         40.300                              Deposits on call -
                                                   26.757.226                     30.474.964
             Jumlah konvensional                   75.467.902                     79.577.914                             Total conventional



                                                            109
Page 649
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  18.   SIMPANAN DARI NASABAH (lanjutan)                         18.     DEPOSITS FROM CUSTOMERS (continued)
        a.   Berdasarkan segmen (lanjutan)                              a.     Based on segment (continued)
                                              December 31,                December 31,
                                                  2023                        2022
             Syariah                                                                                                            Sharia
             Tabungan                                                                                                          Savings
             - Tabunganku                             63.673                        56.222                               Tabunganku -
             - Simpanan Pelajar                       10.255                         7.083                          Simpanan Pelajar -
             - Umroh Amanah                            5.304                         4.002                            Umroh Amanah -
             - Tabungan Santri                         1.877                            13                              Santri Saving -
             - Tabungan Laku Pandai                       16                            15                        Laku Pandai Saving -
                                                      81.125                        67.335

             Giro                                                                                                     Current accounts
             - Wadiah swasta                         167.742                      152.820                              Private wadiah -
             - Wadiah Pemerintah                       4.302                        2.410                          Goverment wadiah -
             - Wadiah perorangan                       2.382                          860                           Individual wadiah -
                                                     174.426                      156.090

             Jumlah syariah                          255.551                      223.425                                   Total sharia
             Jumlah Rupiah                        75.723.453                   79.801.339                                  Total Rupiah

             Mata uang asing                                                                                       Foreign currencies
             Konvensional                                                                                               Conventional
             Giro                                                                                                    Current accounts
             - Umum                                    4.522                         6.692                                    Public -
             Tabungan                                                                                                            Savings
             - Siklus                                 51.253                        49.288                                       Siklus -
                                                      55.775                        55.980
             Deposito berjangka                                                                                           Time deposits
             - 1 bulan                                66.064                       62.703                                     1 month -
             - 3 bulan                                 3.725                        4.627                                    3 months -
             - 6 bulan                                   721                          697                                    6 months -
             - 12 bulan                                  117                          344                                   12 months -
                                                      70.627                       68.371
             Jumlah mata uang asing                  126.402                      124.351                    Total foreign currencies
             Jumlah                               75.849.855                   79.925.690                                       Total




                                                           110
Page 650
                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


 18.   SIMPANAN DARI NASABAH (lanjutan)                                                 18.   DEPOSITS FROM CUSTOMERS (continued)

       b.    Berdasarkan hubungan dan mata uang                                               b.   Based on relationship and currencies

                                                            December 31,                                December 31,
                                                                  2023                                      2022
                                                  Jumlah nosional                             Jumlah nosional
                                                  mata uang asing/                            mata uang asing/
                                                  Notional amount                             Notional amount
                                                      foreign                                     foreign
                                                    currencies         Ekuivalen                currencies         Ekuivalen
                                                   (Dalam angka          Rupiah/               (Dalam angka          Rupiah/
                                                   penuh/ In full        Rupiah                penuh/ In full        Rupiah
                                                      amount )         equivalent                 amount )        equivalent
             Pihak berelasi                                                                                                                         Related parties
             Rupiah                                                                                                                                          Rupiah
             Konvensional                                                                                                                              Conventional
               Giro                                                     12.231.559                                 14.897.111                     Current accounts
               Tabungan                                                     56.755                                     55.619                              Savings
               Deposito berjangka                                          351.680                                    339.868                       Time deposits

             Syariah                                                                                                                                          Sharia
              Tabungan                                                          49                                        14                               Savings

             Mata uang asing                                                                                                                       Foreign currencies
             Konvensional                                                                                                                                Conventional
               Giro                                        43.093              666                     43.231             673                      Current accounts
               Tabungan                                    78.033            1.206                     81.709           1.272                       Saving accounts
               Deposito berjangka dan                                                                                                             Time deposits and
                deposito on call                          169.719            2.623                     54.472             848                    deposits on call
             Jumlah pihak berelasi (Catatan 40)                         12.644.538                                 15.295.405          Total related parties (Note 40)

             Pihak ketiga                                                                                                                              Third parties
             Rupiah                                                                                                                                          Rupiah
             Konvensional                                                                                                                               Conventional
               Giro                                                      8.514.070                                  8.573.244                     Current accounts
               Tabungan                                                 27.908.292                                 25.576.976                              Savings
               Deposito berjangka dan                                                                                                            Time deposits and
                deposito on call                                        26.405.546                                 30.135.096                   deposits on call

             Syariah                                                                                                                                          Sharia
              Giro                                                         174.377                                   156.089                      Current accounts
              Tabungan                                                      81.125                                    67.322                               Savings
              Deposito berjangka dan                                                                                                             Time deposits and
                deposito on call                                                    -                                          -                deposits on call

             Mata uang asing                                                                                                                      Foreign currencies
               Giro                                        257.187           3.856                     386.639         6.019                      Current accounts
               Tabungan                                  3.338.024          50.047                   3.084.374        48.016                               Savings
               Deposito berjangka dan                                                                                                            Time deposits and
                deposito on call                         4.535.717          68.004                   4.337.434         67.523                   deposits on call
             Jumlah pihak ketiga                                        63.205.317                                 64.630.285                      Total third parties
             Total                                                      75.849.855                                 79.925.690                                    Total

             Simpanan dari pihak berelasi tersebut                                                 These deposits from related parties represent
             merupakan simpanan dari Pemerintah Daerah                                             deposits from Regional Governments and key
             dan manajemen kunci.                                                                  management personnel.




                                                                          111
Page 651
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


  18.   SIMPANAN DARI NASABAH (lanjutan)                          18.    DEPOSITS FROM CUSTOMERS (continued)

        b.   Berdasarkan hubungan dan mata uang (lanjutan)                b.     Based on           relationship       and      currencies
                                                                                 (continued)

             1) Tingkat suku bunga rata-rata per tahun giro                      1)    The average interest rates per annum on
                terdiri dari:                                                          current accounts consist of:

                                                           2023                   2022
                 Rupiah                                   0,91%                   0,89%                                              Rupiah
                 Mata uang asing                          0,13%                   0,14%                                   Foreign currencies


                Tingkat bunga rata-rata per tahun untuk giro                           The average interest rates per annum on
                dari adalah sama antara pihak berelasi                                 current accounts with related parties are
                dengan pihak ketiga.                                                   similar to those for third parties.

                Pada tanggal 31 Desember 2023 dan 2022,                                As of December 31, 2023 and 2022, there
                tidak terdapat giro yang diblokir dan dijadikan                        were no current accounts held under liens
                jaminan kredit.                                                        and used as security.

             2) Tingkat suku bunga rata-rata per tahun                           2)    The average interest rates per annum on
                tabungan terdiri dari:                                                 savings consist of:
                                                December 31,                   December 31,
                                                    2023                           2022
                 Tabungan                                                                                                 Savings
                 - Simpeda                         0,97%                          0,96%                                 Simpeda -
                 - Siklus                          1,58%                          1,65%                                   Siklus -
                 - Haji                            0,81%                          0,76%                                     Haji -
                 - Tabunganku                      0,91%                          0,91%                              Tabunganku -


                Tingkat bunga rata-rata per tahun tabungan                             The average interest rates per annum on
                untuk pihak berelasi adalah sama dengan                                savings for related parties are similar to
                pihak ketiga.                                                          those for third parties.

                Pada tanggal 31 Desember 2023 dan 2022,                                As of December 31, 2023 and 2022, there
                tidak terdapat tabungan yang diblokir dan                              were no savings held under liens and used
                dijadikan jaminan kredit.                                              as collateral.




                                                            112
Page 652
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


 18.   SIMPANAN DARI NASABAH (lanjutan)                                    18.        DEPOSITS FROM CUSTOMERS (continued)

       b.    Berdasarkan      hubungan      dan   mata     uang                  b.     Based on relationship and currencies (continued)
             (lanjutan)

            3). Rincian deposito berjangka dan deposito on                                 3).   Detail of time deposits and deposits on call:
                call:

                Klasifikasi deposito berdasarkan          jangka                             The details of time deposits based on
                waktu sebagai berikut:                                                       maturities are as follows:

                                                         December 31,                  December 31,
                                                             2023                          2022
                 Rupiah                                                                                                                      Rupiah
                 - 1 bulan                                  13.508.940                      5.874.726                                     1 month -
                 - 2 bulan                                     217.270                        271.709                                   2 months -
                 - 3 bulan                                   5.388.303                     16.276.952                                   3 months -
                 - 6 bulan                                     417.861                        325.605                                   6 months -
                 - 12 bulan                                  7.002.761                      7.648.875                                  12 months -
                 - 18 bulan                                     38.837                         25.594                                  18 months -
                 - 24 bulan                                     17.795                         10.643                                  24 months -
                 - Jatuh Tempo                                     760                            560                                     Matured -
                - Deposito on call                             164.700                         40.300                              Deposits on call -
                                                            26.757.227                     30.474.964

                Mata uang asing                                                                                                  Foreign currencies
                - 1 bulan                                       66.064                         62.703                                     1 month -
                - 3 bulan                                        3.725                          4.627                                    3 months -
                - 6 bulan                                          721                            697                                    6 months -
                - 12 bulan                                         117                            344                                  12 months -
                                                                70.627                         68.371
                Jumlah                                      26.827.854                     30.543.335                                          Total



               Klasifikasi deposito berdasarkan sisa umur                                    The details of time deposits based on
               sampai dengan saat jatuh tempo:                                               remaining period until maturity:

                                                     December 31,                      December 31,
                                                         2023                              2022
               Rupiah                                                                                                                        Rupiah
               - Kurang dari atau sama
                 dengan 1 bulan                             15.245.542                     8.582.694                   Less than or until 1 month -
               - Lebih dari 1 - 3 bulan                      4.213.138                    14.531.833                     More than 1 - 3 months -
               - Lebih dari 3 - 6 bulan                        267.153                       198.836                     More than 3 - 6 months -
               - Lebih dari 6 - 12 bulan                     6.809.714                     7.044.282                    More than 6 - 12 months -
               - Lebih dari 12 - 18 bulan                       42.633                        64.760                   More than 12 - 18 months -
               - Lebih dari 18 - 24 bulan                       13.587                        12.124                   More than 18 - 24 months -
               - Jatuh Tempo                                       760                           135                                      Matured -
               - Deposito on call                              164.700                        40.300                            Deposits on call -
                                                            26.757.227                    30.474.964
               Mata uang asing                                                                                                   Foreign currencies
               - Kurang dari atau sama
                  dengan 1 bulan                                67.025                        63.627                   Less than or until 1 month -
               - Lebih dari 1 - 3 bulan                          2.795                         3.750                     More than 1 - 3 months -
               - Lebih dari 3 - 6 bulan                            762                           723                     More than 3 - 6 months -
               - Lebih dari 6 - 12 bulan                            45                           271                    More than 6 - 12 months -
                                                                70.627                        68.371
               Jumlah                                       26.827.854                    30.543.335                                          Total




                                                                113
Page 653
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)


  18.   SIMPANAN DARI NASABAH (lanjutan)                              18.      DEPOSITS FROM CUSTOMERS (continued)

        c.   Tingkat bunga rata-rata deposito per tahun:                       c.   Average interest rates of deposits per annum:

                                                       2023                          2022
             Rupiah                                                                                                                    Rupiah
             - 1 bulan                                2,71%                         2,63%                                            1 month -
             - 2 bulan                                2,80%                         2,68%                                           2 months -
             - 3 bulan                                2,90%                         2,78%                                           3 months -
             - 6 bulan                                3,00%                         2,90%                                           6 months -
             - 12 bulan                               3,10%                         2,95%                                         12 months -
             - 18 bulan                               3,06%                         3,00%                                         18 months -
             - 24 bulan                               3,08%                         3,00%                                         24 months -
             - Deposito on call                       3,51%                         2,01%                                    Deposits on call -
             Mata uang asing:                                                                                               Foreign currencies
             - 1 dan 3 bulan                          0,62%                         0,18%                                    1 and 3 months -

             Tingkat bunga rata-rata per tahun untuk deposito                       The average interest rates per annum on time
             berjangka dari pihak berelasi adalah sama                              deposits from related parties are similar to
             dengan pihak ketiga.                                                   those for third parties.

             Pada tanggal 31 Desember 2023 dan 2022,                                As of December 31, 2023 and 2022, time
             jumlah deposito berjangka yang diblokir dan                            deposits held under liens and used as security
             dijadikan jaminan kredit, masing-masing sebesar                        were Rp203,926 and Rp127,942 , respectively
             Rp203.926 dan Rp127.942 (Catatan 12k).                                 (Note 12k).


  19.   SIMPANAN DARI BANK LAIN                                       19.      DEPOSITS FROM OTHER BANKS

        a.   Berdasarkan segmen                                                a.   Based on segment

                                                           December 31,        December 31,
                                                               2023                2022
             Konvensional                                                                                                      Conventional
             Tabungan                                                                                                               Savings
             - Siklus                                            182.093             217.121                                        Siklus -
             - Simpeda                                           363.554             307.176                                      Simpeda -
                                                                 545.647             524.297
             Giro                                                                                                         Current accounts
             - Giro Bank Swasta                                   62.166               49.982               Private bank current accounts -
             - Giro BPD-SI                                         6.678                3.900                    BPD-SI current accounts -
             - Giro Bank Pemerintah                                2.685                2.406           Government bank current accounts -
             - Giro BPR                                            1.560                  780                       BPR current accounts -
             - Giro BPR Jets                                      31.126               30.887                  BPR Jets current accounts -
                                                                 104.215               87.955
             Deposito berjangka                                                                                                Time deposits
             - 1 bulan                                           103.596              178.937                                      1 month -
             - 2 bulan                                                 -                2.000                                     2 months -
             - 3 bulan                                            22.700              106.750                                     3 months -
             - 6 bulan                                                60                   60                                     6 months -
             - 12 bulan                                            9.700                4.500                                    12 months -
                                                                 136.056              292.247
             Interbank call money                              1.770.000            2.395.000                           Interbank call money
             Total konvensional                                2.555.918            3.299.499                              Total conventional
             Syariah                                                                                                                 Sharia
             - Giro wadiah                                         4.403               11.339                       Wadiah current account -
               Total syariah                                       4.403               11.339                                 Total sharia
             Total                                             2.560.321            3.310.838                                         Total




                                                              114
Page 654
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)



 19.   SIMPANAN DARI BANK LAIN (lanjutan)                            19.      DEPOSITS FROM OTHER BANKS (continued)

       b.   Berdasarkan hubungan                                            b. Based on relationship

                                                             2023                    2022
            Pihak berelasi                                                                                                       Related parties
            - Giro                                                   921                   920                                Current accounts -
            - Tabungan                                            55.743                64.046                                         Savings -
            - Deposito berjangka                                      30                77.030                                  Time deposits -
                                                                  56.694               141.996
            Pihak ketiga                                                                                                   Third parties
            - Giro                                             107.697                  98.374                       Current accounts -
            - Tabungan                                         489.904                 460.251                                Savings -
            - Deposito berjangka                               136.026                 215.217                          Time deposits -
            - Interbank call money                           1.770.000               2.395.000                   Interbank call money -
                                                             2.503.627               3.168.842
            Total                                            2.560.321               3.310.838                                    Total
            Seluruh simpanan dari bank lain adalah dalam                         All deposits from other banks are in Rupiah.
            mata uang Rupiah.

       c.   Deposito berdasarkan sisa umur sampai dengan                    c. Deposits by remaining period to maturity
            saat jatuh tempo

                                                            2023                    2022
            Rupiah                                                                                                                       Rupiah
            - Kurang dari atau sama
              dengan 1 bulan                                   106.926                 258.267                     Less than or until 1 month -
            - Lebih dari 1 - 3 bulan                            19.370                  29.420                       More than 1 - 3 months -
            - Lebih dari 3 - 6 bulan                             1.060                      60                       More than 3 - 6 months -
            - Lebih dari 6 - 12 bulan                            8.200                   4.500                      More than 6 - 12 months -
            - Lebih dari 12 - 18 bulan                             500                       -                     More than 12 - 18 months -
                                                               136.056                 292.247
            - Interbank call money                           1.770.000               2.395.000                           Interbank call money -
            Total                                            1.906.056               2.687.247                                            Total
       d.   Tingkat suku bunga rata-rata per tahun                          d. Average interest rates per annum

                                                      31 Desember/            31 Desember/
                                                      December 31,            December 31,
                                                          2023                    2022
            Konvensional                                                                                                       Conventional
              Giro                                                0,62%                 0,46%                            Current accounts
              Tabungan                                            1,43%                 1,16%                                     Savings
              Deposito                                            3,18%                 4,00%                               Time deposits
              Interbank call money                                3,43%                 5,67%                        Interbank call money

            Syariah                                                                                                                   Sharia
               Giro                                               0,04%                 0,07%                            Current accounts
               Tabungan                                           0,65%                 0,60%                                     Savings
               Deposito                                           2,60%                 2,40%                              Time deposits


                                                            115
Page 655
                                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                  and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                      (Expressed in millions of Rupiah, unless otherwise stated)


 20.    LIABILITAS SURAT BERHARGA YANG DIJUAL                                           20.        LIABILITIES OF MARKETABLE SECURITIES SOLD
        DENGAN JANJI DIBELI KEMBALI                                                                UNDER REPURCHASE AGREEMENT
        Pada tanggal 31 Desember 2023 dan 2022, Bank                                               As of December 31, 2023 and 2022, Bank has a
        memiliki liabilitas surat berharga yang dijual dengan                                      number of liability for repo securities Rp7,915,163
        janji dibeli kembali sejumlah Rp7.915.163 dan                                              and Rp3,891,346 with details as follows:
        Rp3.891.346 dengan rincian sebagai berikut:
                                                                                     2023
                                                                                                                                      Beban bunga
                                                                                                                                       yang belum
                                                                                                                                      diamortisasi/
       Jenis surat                                                                                                    Nilai beli      Unamortized
        berharga/        Nilai nominal/   Tanggal dimulai/    Tanggal jatuh tempo/          Tingkat suku bunga/       kembali/           interest       Nilai bersih/
        Securities       Nominal value       Start date          Maturity date                  Interest rate      Buy back value       expense          Net value
       Sertifikat Bank Indonesia
                                            20 Desember/           3 Januari/
       FR0086                  117.560                                                            6,40%                   117.853               251           117.811
                                          December 20, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0086                  117.560                                                            6,40%                   117.853               251           117.811
                                          December 20, 2023     January 3, 2024
                                            22 Desember/           2 Januari/
       FR0090                  184.841                                                            6,30%                   185.197               323           185.165
                                          December 22, 2023     January 2, 2024
                                            22 Desember/           2 Januari/
       FR0090                  184.841                                                            6,30%                   185.197               323           185.165
                                          December 22, 2023     January 2, 2024
                                            22 Desember/           2 Januari/
       FR0090                  184.841                                                            6,30%                   185.197               323           185.165
                                          December 22, 2023     January 2, 2024
                                            22 Desember/           2 Januari/
       FR0090                  184.841                                                            6,30%                   185.197               323           185.165
                                          December 22, 2023     January 2, 2024
                                            22 Desember/           2 Januari/
       FR0086                  188.444                                                            6,30%                   188.807               330           188.774
                                          December 22, 2023     January 2, 2024
                                            15 Desember/           2 Januari/
       FR0086                  187.736                                                            6,55%                   188.351               581           188.317
                                          December 15, 2023     January 2, 2024
                                            15 Desember/           2 Januari/
       FR0086                  187.736                                                            6,55%                   188.351               581           188.317
                                          December 15, 2023     January 2, 2024
                                            15 Desember/           2 Januari/
       FR0086                  187.736                                                            6,55%                   188.351               581           188.317
                                          December 15, 2023     January 2, 2024
                                            15 Desember/           2 Januari/
       FR0086                  187.736                                                            6,55%                   188.351               581           188.317
                                          December 15, 2023     January 2, 2024
                                            20 Desember/           3 Januari/
       FR0081                  190.222                                                            6,48%                   190.701               411           190.633
                                          December 20, 2023     January 3, 2024
                                            6 Desember/            3 Januari/
       PBS017                  186.102                                                            6,70%                   187.072               901           187.003
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS017                  186.102                                                            6,70%                   187.072               901           187.003
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS017                  186.102                                                            6,70%                   187.072               901           187.003
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS017                  186.102                                                            6,70%                   187.072               901           187.003
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS017                  186.102                                                            6,70%                   187.072               901           187.003
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS003                  188.236                                                            6,70%                   189.217               911           189.146
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS026                  198.049                                                            6,70%                   199.081               958           199.007
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS026                  198.049                                                            6,70%                   199.081               958           199.007
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS026                   99.024                                                            6,70%                    99.540               479            99.503
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS030                   91.522                                                            6,70%                    91.999               443            91.965
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS031                   97.924                                                            6,70%                    98.434               474            98.398
                                          December 6, 2023      January 3, 2024
                                            6 Desember/            3 Januari/
       PBS036                   92.817                                                            6,70%                    93.300               449            93.266
                                          December 6, 2023      January 3, 2024
                                            22 Desember/           5 Januari/
       ORI019                  195.800                                                            6,70%                   196.310               364           196.164
                                          December 22, 2023     January 5, 2024
                                            27 Desember/           3 Januari/
       ORI019                  195.805                                                            6,25%                   196.043               170           195.975
                                          December 27, 2023     January 3, 2024
                                            27 Desember/           3 Januari/
       ORI019                  195.805                                                            6,25%                   196.043               170           195.975
                                          December 27, 2023     January 3, 2024
                                            27 Desember/           3 Januari/
       ORI019                  195.805                                                            6,25%                   196.043               170           195.975
                                          December 27, 2023     January 3, 2024
                                            27 Desember/           3 Januari/
       ORI019                  195.805                                                            6,25%                   196.043               170           195.975
                                          December 27, 2023     January 3, 2024
                                            21 Desember/           4 Januari/
       FR0081                  190.293                                                            6,50%                   190.774               378           190.671
                                          December 21, 2023     January 4, 2024
                                            27 Desember/           2 Januari/
       FR0040                  210.849                                                            6,20%                   211.067               182           211.031
                                          December 27, 2023     January 2, 2024
                                            28 Desember/           5 Januari/
       FR0084                  198.451                                                            6,28%                   198.727               138           198.589
                                          December 28, 2023     January 5, 2024
                                            28 Desember/           5 Januari/
       FR0084                  198.451                                                            6,28%                   198.727               138           198.589
                                          December 28, 2023     January 5, 2024
                                            28 Desember/           5 Januari/
       FR0084                   99.225                                                            6,28%                    99.364                69            99.295
                                          December 28, 2023     January 5, 2024
                                            21 Desember/           4 Januari/
       FR0081                  190.293                                                            6,50%                   190.774               378           190.671
                                          December 21, 2023     January 4, 2024
                                            21 Desember/           4 Januari/
       FR0081                  190.293                                                            6,50%                   190.774               378           190.671
                                          December 21, 2023     January 4, 2024
                                            21 Desember/           4 Januari/
       FR0081                  190.293                                                            6,50%                   190.774               378           190.671
                                          December 21, 2023     January 4, 2024
                                            14 Desember/           3 Januari/
       FR0081                   29.459                                                            6,59%                    29.567                97            29.556
                                          December 14, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0059                  194.070                                                            6,40%                   194.553               414           194.484
                                          December 20, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0059                  194.070                                                            6,40%                   194.553               414           194.484
                                          December 20, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0059                  194.070                                                            6,40%                   194.553               414           194.484
                                          December 20, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0059                  194.070                                                            6,40%                   194.553               414           194.484
                                          December 20, 2023     January 3, 2024
                                            20 Desember/           3 Januari/
       FR0059                  194.070                                                            6,40%                   194.553               414           194.484
                                          December 20, 2023     January 3, 2024
                                            29 Desember/           4 Januari/
       FR0086                  141.433                                                            6,20%                   141.579                73           141.506
                                          December 29, 2023     January 4, 2024
                                            29 Desember/           4 Januari/
       FR0056                  153.504                                                            6,20%                   153.663                79           153.584
                                          December 29, 2023     January 4, 2024
                                            29 Desember/           4 Januari/
       FR0056                  153.504                                                            6,20%                   153.663                79           153.584
                                          December 29, 2023     January 4, 2024
       Jumlah/Total          7.895.647                                                                                   7.918.120           19.517         7.915.163




                                                                             116
Page 656
                                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                               and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                  (Expressed in millions of Rupiah, unless otherwise stated)


  20.      LIABILITAS SURAT BERHARGA YANG DIJUAL                                          20.     LIABILITIES OF MARKETABLE SECURITIES
           DENGAN JANJI DIBELI KEMBALI (lanjutan)                                                 SOLD UNDER REPURCHASE AGREEMENT
                                                                                                  (continued)

                                                                                  2022
  Jenis surat                                                                                                        Nilai beli       Beban bunga
   berharga/      Nilai nominal/    Tanggal dimulai/    Tanggal jatuh tempo/             Tingkat suku bunga/         kembali/          yang belum         Nilai bersih/
  Securities      Nominal value        Start date          Maturity date                     Interest rate        Buy back value      diamortisasi/        Net value

  Sertifikat Bank Indonesia
                                     15 November/           14 Februari/
  FR0081                 400.000                                                                5,73%                     394.481             2.723             391.758
                                   November 15, 2022     February 14, 2023

                                     29 November/           28 Februari/
  FR0070                 200.000                                                                6,23%                     202.166             1.998             200.168
                                   November 29, 2022     February 28, 2023

                                     19 Desember/               2 Januari/
  FR0081                 200.000                                                                5,75%                      96.086                15              96.070
                                   December 19, 2022         January 2, 2023

                                     20 Desember/               3 Januari/
  FR0086                 500.000                                                                5,80%                     470.847               151             470.696
                                   December 20, 2022         January 3, 2023

                                     22 Desember/               1 Februari/
  FR0059                 350.000                                                                5,65%                     346.111             1.673             344.437
                                   December 22, 2022         February 1, 2023

                                     23 Desember/               2 Januari/
  FR0059                 200.000                                                                5,80%                     196.492                32             196.460
                                   December 23, 2022         January 2, 2023

                                     23 Desember/               2 Januari/
  FR0086                 550.000                                                                5,80%                     471.288                76             471.212
                                   December 23, 2022         January 2, 2023

                                     26 Desember/               2 Januari/
  FR0086                 150.000                                                                5,75%                     188.488                30             188.458
                                   December 26, 2022         January 2, 2023

                                     26 Desember/               2 Januari/
  FR0059                 200.000                                                                5,75%                     196.435                31             196.404
                                   December 26, 2022         January 2, 2023

                                     28 Desember/               4 Januari/
  FR0081                 700.000                                                                5,80%                     771.068               372             770.696
                                   December 28, 2022         January 4, 2023

                                     29 Desember/               5 Januari/
  FR0086                 600.000                                                                5,75%                     565.348               361             564.987
                                   December 29, 2022         January 5, 2023

  Jumlah/Total                                                                                                          3.898.809             7.463           3.891.346




  21.      PINJAMAN YANG DITERIMA                                                         21.     BORROWINGS


                                                                          2023                          2022
           Kementerian Pekerjaan Umum dan                                                                                         Ministry of Public Works
            Perumahan Rakyat (PUPR)                                                                                                    and Housing of the
            Republik Indonesia                                                  490.810                 481.532                   Republic of Indonesia
           PT Sarana Multigriya Financial                                        66.821                  71.867           PT Sarana Multigriya Financial
           Lembaga Pengelola Dana Bergulir                                                                              Lembaga Pengelola Dana Bergulir
            Koperasi, Usaha Mikro, Kecil                                                                                    Koperasi, Usaha Mikro, Kecil
            dan Menengah (LPDB-KUMKM)                                            39.253                  76.698          dan Menengah (LPDB-KUMKM)
                                                                                                                 Government of East Java Province (related
           Pemerintah Provinsi Jawa Timur (pihak berelasi)                            93                  1.367
                                                                                                                                                     party)
           Jumlah                                          596.977                                      631.464                                       Total
           Seluruh pinjaman yang diterima adalah dari pihak                                       All borrowings are from third parties and in Rupiah.
           ketiga dan dalam mata uang Rupiah.




                                                                                117
Page 657
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)

  21.    PINJAMAN YANG DITERIMA (lanjutan)                       21.      BORROWINGS (continued)
    a.   Kementerian PUPR                                              a. Ministry of Public Works and Housing
         Pusat Pengelolaan Dana Pembiayaan Perumahan                      Fund Management Center of Housing Financing
         (PPDPP) Kementerian PUPR Republik Indonesia                      (PPDPP) from the Ministry of General Works and
         bekerjasama dengan Bank dalam hal program                        Public Housing of the Republic of Indonesia in
         Penyaluran Dana Fasilitas Likuiditas Pembiayaan                  collaboration with the Bank disburse the Liquidity
         Perumahan (FLPP) melalui kredit/pembiayaan                       Facility of Housing Financing (FLPP) through
         pemilikan rumah sejahtera/rumah sejahtera                        loan/financing of housing for sharia prosperous house
         syariah bagi masyarakat berpenghasilan rendah                    for low-income communities with an interest rate
         dengan tingkat bunga sebesar 0,5% maksimal                       maximum of 0.5% for KPR Sejahtera FLPP provision
         untuk biaya provisi dari nilai KPR Sejahtera FLPP.               fee. KPR Sejahtera FLPP has a maximum term of 20
         Jangka waktu KPR Sejahtera FLPP paling lama 20                   (twenty) years. The term of the operational
         (dua puluh) tahun. Jangka waktu perjanjian                       cooperation agreement is starting from January 1,
         kerjasama operasional adalah mulai tanggal 1                     2021 until December 31, 2021 and as the latest
         Januari 2021 sampai dengan tanggal 31                            amendment has been extended from December 31,
         Desember 2021 dan sebagaimana perubahan                          2023 until December 31, 2023.
         terakhir telah diperpanjang mulai tanggal 1 Januari
         2023 sampai dengan tanggal 31 Desember 2023.
         Atas     kerjasama    ini,    Bank     mengelola                 For this collaboration, the Bank manages its
         penyalurannya menjadi dua bagian yaitu                           distribution into two parts, namely conventional and
         konvensional dan syariah. Dengan nomor PKS                       sharia. With the Sharia PKS number, namely No.
         Syariah yaitu No. 71/PKS/BP-TPR/I/12/2022 dan                    71/PKS/BP-TPR/I/12/2022             and          No.
         No. 061/290/DIR/BIS/PKS. Sedangkan nomor                         061/290/DIR/BIS/PKS. While the conventional PKS
         PKS konvensional yaitu No. 82/PKS/BP-                            number is No. 82/PKS/BP-TPR/I/12/2022 and No.
         TPR/I/12/2022 dan No. 061/290/DIR/KKR/PKS.                       061/290/DIR/KKR/PKS. For this cooperation, the
         Atas kerjasama tersebut, Bank diwajibkan untuk                   Bank are required to submit managed fund and
         menyampaikan rekening koran dana kelolaan dan                    operational account statements no later than the 5th
         rekening operasional paling lambat tanggal 5 dan                 and 16th of each month. As of December 31, 2023
         16 setiap bulannya. Pada 31 Desember 2023 dan                    and December 31, 2022, the Bank has disbursed
         31 Desember 2022, Bank telah menyalurkan kredit                  FLPP loans amounting to Rp197,086 and Rp194,934.
         FLPP masing-masing sebesar Rp197.086 dan
         Rp194.934.
    b.   Lembaga Pengelola Dana Bergulir Koperasi,                     b. Lembaga Pengelola Dana Bergulir Koperasi, Usaha
         Usaha Mikro, Kecil dan Menengah (LPDB-                           Mikro, Kecil dan Menengah (LPDB-KUMKM)
         KUMKM)
         Sesuai Perjanjian Pinjaman No.26 tanggal 13                      According to Credit Agreement No.26 dated
         September 2019, Bank menerima pinjaman dari                      September 13, 2019, Bank received borrowing
         LPDB-KUMKM yang berupa fasilitas pembiayaan                      facilities from LPDB-KUMKM represents revolving
         maksimal Rp200.000, untuk disalurkan kepada                      funds financing facility in the form of a maximum of
         Usaha Mikro, Kecil dan Menengah (UMKM) yang                      Rp200,000. to be distributed to Small and Medium
         tersebar di wilayah kerja Bank dan telah                         Enterprises (SMEs) which scattered in the work area
         ditetapkan sesuai dengan daftar definitif. Tingkat               of the Bank and has been determined in accordance
         suku bunga yang diberikan dari LPDB ke Bank                      with the definitive list. The interest rate given from
         sebesar 5% dan suku bunga dari Bank ke Usaha                     LPDB h for Bank is 5% and from Bank for micro,
         Mikro dan menengah maksimal 7% pertahun.                         small and medium bussines is a maximum 7% for
                                                                          annum.
         Penyaluran pembiayaan yang diberikan adalah                      The distributing patterns of financing provided is
         pola executing dengan jangka waktu 60 (enam                      executing a pattern with a period of 60 (sixty) months
         puluh) bulan atau 5 (lima) tahun terhitung sejak                 or 5 (five) years from the disbursement.
         pencairan.
         Bank harus menyerahkan daftar piutang sehat                      The Bank must submit a list of healthy receivables
         yang dimiliki Bank yang menjadi jaminan fidusia                  owned by the Bank which is a fiduciary guarantee
         setiap 6 bulan minimal 100% dari outstanding                     every 6 months at least 100% of the outstanding
         pinjaman.                                                        loan.




                                                           118
Page 658
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  21.        PINJAMAN YANG DITERIMA (lanjutan)                     21.   BORROWINGS (continued)
        b.     Lembaga Pengelola Dana Bergulir Koperasi,              b. Lembaga Pengelola Dana Bergulir Koperasi, Usaha
               Usaha Mikro, Kecil dan Menengah (LPDB-                     Mikro, Kecil dan Menengah (LPDB-KUMKM)
               KUMKM) (lanjutan)                                          (continued)
               Bank menjaminkan kreditnya kepada LPDB-                    The Bank pledged its loan as collateral to LPDB-
               KUMKM dengan nilai minimal 100% dari                       KUMKM with a minimum value of 100% of the
               outstanding pinjaman yang menjadi jaminan                  outstanding loan which is a fiduciary guarantee. As of
               fidusia. Pada 31 Desember 2023 dan 2022 bank               December 31, 2023 and 2022 the bank has
               memiliki sisa pinjamanan sebesar Rp38.250 dan              outstanding loan of Rp38,250 and Rp76,500. If
               Rp76.500. Apabila dalam jangka waktu pinjaman              during the loan period there is a decrease in the
               terdapat penurunan kualitas piutang yang                   quality of the collateralized loan, the bank is obliged
               dijaminkan maka bank wajib mengganti dengan                to replace it with new, performing loans.
               piutang baru yang sehat.
        c.    PT Sarana Multigriya Finansial (Persero)                 c. PT Sarana Multigriya Finansial (Persero)
              Dana Multigriya Financial merupakan fasilitas               Dana Multigriya Financial is a financing facility with a
              pembiayaan dengan porsi 25% KPR FLPP yang                   portion of 25% FLPP mortgages received from PT
              diterima dari PT Sarana Multigriya Finansial                Sarana Multigriya Finansial (Persero) to be distributed
              (Persero) untuk disalurkan dalam rangka program             in the context of housing procurement programs
              pengadaan perumahan melalui Pembiayaan                      through Prosperous Home Ownership Financing
              Pemilikan Rumah (PPR) Sejahtera bagi                        (PPR) for low-income people with a margin rate of
              masyarakat berpenghasilan rendah dengan                     4.45%. The term of the portion financing facility is
              tingkat margin 4,45%. Jangka waktu fasilitas                from April 1, 2020 to December 31, 2020 in
              pembiayaan porsi adalah mulai 1 April 2020                  accordance with PKS No. 058A/AKAD/SMF-
              sampai dengan 31 Desember 2020 sesuai                       BJTMS/IV/2022 and No. 059/059/DIR/BIS/PKS.
              dengan        PKS      No.      058A/AKAD/SMF-
              BJTMS/IV/2022 dan No. 059/059/DIR/BIS/PKS.
              Bank harus menyerahkan Laporan Keuangan                      Banks must submit the Audited Financial Statements
              Audited selambat-lambatnya 120 hari sejak                    no later than 120 days after the closing of the financial
              ditutupnya tahun buku. Bank tidak boleh                      year. The Bank may not transfer/hand over to other
              mengalihkan/menyerahkan kepada pihak lain,                   parties, partially or entirely of the rights and
              sebagian atau seluruhnya atas hak dan kewajiban              obligations arising in connection with this loan
              yang timbul berkaitan dengan perjanjian pinjaman             agreement.
              ini.
        d.    Pemerintah Provinsi Jawa Timur                           d. Government of East Java Province
              Berdasarkan perjanjian awal dengan Pemerintah               Based on the initial agreement with the East Java
              Provinsi Jawa Timur No. 518/2110.1/021/2016                 Provincial Government No. 518/2110.1/021/2016 with
              dengan plafond sebesar Rp400.000. Bank                      a ceiling of Rp400,000. The Bank cooperates with a
              bekerja sama dengan jangka waktu dua tahun.                 period of two years. In 2016, an addendum I to this
              Pada tahun 2016, telah dilakukan addendum I                 cooperation was carried out with the cooperation
              terhadap kerja sama ini dengan nomor kerja                  number No. 518/10501.1/021/2016 stating the
              sama yaitu No. 518/10501.1/021/2016 yang                    extension of cooperation until December 2018. Then,
              menyatakan perpanjangan kerja sama hingga                   in 2017, addendum II to the cooperation was carried
              Desember 2018. Lalu, pada tahun 2017 dilakukan              out with the cooperation number No. 518/8104-
              addendum II atas kerja sama tersebut dengan                 1/021.3/2017 stating the extension of cooperation
              nomor kerja sama yaitu No. 518/8104-                        until July 2019.
              1/021.3/2017 yang menyatakan perpanjangan
              kerja sama hingga Juli 2019.
                                                                           This cooperation is intended for cooperation to
              Kerja sama ini ditujukan untuk kerja sama guna
                                                                           distribute revolving funds as additional working capital
              penyaluran dana bergulir sebagai tambahan
                                                                           for small, medium and cooperative businesses with
              modal kerja bagi usaha kecil, menengah dan
                                                                           the aim of succeeding the East Java Provincial
              koperasi dengan tujuan mensukseskan Program
                                                                           Government Program in order to increase Productive
              Pemerintah Provinsi Jawa Timur dalam rangka
                                                                           Economic Business activities of Small and Medium
              meningkatkan kegiatan Usaha Ekonomi Produktif
                                                                           Enterprises and Corporations.:
              Usaha Kecil Menengah dan Korporasi.
              Berdasarkan perjanjian yang telah disepakati,                 Based on the agreement, the bank has repaid its debt
              bank telah melunasi utangnya kepada Pemerintah                to the East Java Provincial Government. This refers to
              Provinsi Jawa Timur. Hal ini merujuk pada nota                bank note No. 058/180/KMP/KRP/GRK/SRT with a
              bank No. 058/180/KMP/KRP/GRK/SRT dengan                       repayment amount of Rp331,006. This repayment
              jumlah pelunasan Rp331.006. Pelunasan ini                     was made on July 25, 2019.
              dilakukan pada tanggal 25 Juli 2019
                                                            119
Page 659
                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                    (Expressed in millions of Rupiah, unless otherwise stated)


  22.   PERPAJAKAN                                                         22.     TAXATION

        a.   Pada tanggal 31 Desember 2023 dan 2022, saldo                         a.     As of December 31, 2023 and 2022, the
             piutang pajak atas pajak lainnya masing-masing                               balance of tax receivable on other tax
             sebesar Rp777 dan Rp493.                                                     amounted Rp777 and Rp493, respectively.

        b.   Utang pajak:                                                          b.     Taxes payable:
                                                                                 31 Desember/
                                                        December 31,             December 31,
                                                            2023                     2022
             Pajak penghasilan pasal 25                         59.450                   43.577                      Corporate income tax - article 25
             Pajak penghasilan pasal 21                         48.108                   30.453                    Employees’ income tax - article 21
             Pajak penghasilan pasal 29 (Catatan 22f)           20.951                    5.803            Corporate income tax - article 29 (Note 22f)
             Pajak penghasilan pasal 23/4 (2)                   14.321                   10.489               Withholding income tax articles 23/4 (2)
             Lain-lain                                             415                      461                                                 Others
             Total                                             143.245                   90.783                                                  Total


        c.   Beban pajak penghasilan badan:                                        c.     Corporate income tax expense:
                                                        December 31,             December 31,
                                                            2023                     2022

             Pajak kini                                       399.474                    412.330                                           Current tax
             Penyesuaian beban pajak                                                                                      Adjustment on tax expense
              Pajak kini tahun 2019                                 -                   (104.878)                               Current tax year 2019
             Total                                            399.474                     307.452                                               Total

             Pajak tangguhan                                    3.662                     36.036                                        Deferred Tax
             Penyesuaian beban pajak tangguhan                 19.502                          -                  Adjustment of deferred tax expense
             Koreksi pajak tangguhan                                                                                         Deferred Tax Correction
              Pajak tangguhan 2019                                     -                 102.543                            Deferred Tax year 2019
             Penyesuaian saldo awal                                                                                 Beginning balance adjustment on
              aset pajak tangguhan                                  -                     41.194                                deferred tax assets
             Total                                             23.164                    179.773                                                Total
             Beban pajak                                      422.638                    487.225                                Income tax expense




                                                              120
Page 660
                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                     and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)


 22.   PERPAJAKAN (lanjutan)                                                     22.   TAXATION (continued)
       d.   Rekonsiliasi antara laba sebelum beban pajak                               d.    The reconciliation between income before tax
            yang disajikan dalam laporan laba rugi dan                                       expense as shown in the statements of profit or
            penghasilan komprehensif lain dengan taksiran                                    loss and other comprehensive income and
            laba kena pajak adalah sebagai berikut:                                          estimated taxable income is as follows:
                                                               31 Desember/            31 Desember/
                                                               December 31,            December 31,
                                                                   2023                    2022
             Laba sebelum beban pajak                               1.884.441               2.030.049                          Income before tax expense
             Perbedaan tetap:                                                                                                      Permanent differences:
              Pajak                                                        857                 87.828                                              Taxes
              Tanggung jawab sosial dan lingkungan,                                                                 Social and environment responsibility,
                 sumbangan, promosi, rapat dan                                                                        donation, promotion, meetings and
                 jamuan tamu dan lainnya                               54.818                  98.188                           entertainment and others
              Penyisihan kerugian penurunan nilai non kredit           61.282                  51.173           Non loan provision for impairment losses
              Lain-lain                                               120.376                  92.580                                             Others
                                                                      237.332                 329.769
             Perbedaan temporer:                                                                                                    Temporary differences:
              Penyisihan kerugian penurunan nilai                       36.741              (205.927)                    Provision for impairment losses
              Cadangan jasa produksi                                  367.526                 385.706                    Provision for employee bonuses
              Cadangan imbalan kerja                                   (8.342)                  31.918                    Provision for employee benefit
              Cadangan lainnya                                        (29.595)                 (5.900)                                   Other provision
              Sewa                                                          99                (14.689)                                             Lease
              Pembayaran jasa produksi                              (385.706)               (380.767)                    Payment for employee bonuses
                                                                      (19.278)              (189.659)
             Total                                                    218.054                 140.110                                               Total
             Taksiran laba kena pajak                               2.102.495               2.170.159                          Estimated taxable income




                                                                     121
Page 661
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)

 22.    PERPAJAKAN (lanjutan)                                                       22.     TAXATION (continued)
       e.   Perhitungan beban pajak adalah sebagai berikut:                                 e.      The computation of tax expense is as follows:
                                                                      2023                       2022

            Pajak kini                                                                                                                               Current tax
            (Pajak dengan tarif efektif atas taksiran                                                                     (At the effective tax rate on estimated
              laba kena pajak tahun berjalan)                           399.474                    412.330                taxable income for the current year)

                                                                        399.474                    412.330

            Beban (manfaat) pajak penghasilan                                                                                   Deferred tax expense (benefit)
             tangguhan atas pengaruh beda temporer                                                                                   of temporary differences
             temporer pada tarif pajak maksimum:                                                                                     at the maximum tax rate:
             Penyisihan kerugian penurunan nilai                         (6.981)                     39.126                   Provision for impairment losses
             Cadangan jasa produksi                                     (69.830)                   (73.284)                  Provision for employee bonuses
             Sewa                                                            (19)                     2.791                                              Lease
             Cadangan imbalan kerja                                        1.585                    (6.064)                    Provision for employee benefit
             Cadangan lainnya                                              5.623                      1.121                                   Others provision
             Pembayaran jasa produksi                                     73.284                     72.346                  Payment for employee bonuses
            Beban manfaat pajak tangguhan                                  3.662                     36.036                                  Deferred tax benefit
            Jumlah pajak penghasilan tahun berjalan                     395.812                    376.294           Total corporate income tax current year


            Laba sebelum beban pajak                                   1.884.441                  1.999.662                         Income before tax expense
            Taksiran pajak penghasilan                                                                                                 Estimated income tax at
             dengan tarif pajak yang berlaku                            358.043                     385.710                                applicable tax rate
            Pengaruh pajak atas beda tetap                               45.093                      62.656                Tax effect on permanent differences
            Pajak kini hasil pemeriksaan tahun 2019                           -                   (104.878)                   Inspection current tax year 2019
            Pajak penghasilan                                                                                                           Corporate income tax
             tahun berjalan                                             403.136                    343.488                                       current year

            Hasil Pemeriksaan Tahun 2019                                        -                  102.543                          Inspection result year 2019
            Penyesuaian aset pajak tangguhan                                                                                    Adjustment deferred tax assets
             saldo awal                                                  19.502                     41.194                                   beginning balance
            Beban pajak, neto                                           422.638                    487.225                                   Tax expense, net

       f.   Perhitungan utang pajak                     penghasilan   badan                 f.      The analysis of corporate income tax payable
            adalah sebagai berikut:                                                                 is as follows:
                                                                      2023                       2022

            Beban pajak tahun berjalan                                  399.474                    412.330                            Current year tax expense
            Dikurangi: Pajak penghasilan
             badan dibayar dimuka -                                                                                                  Less: Prepaid corporate
             pajak penghasilan - pasal 25                               378.523                    406.527                            income tax - article 25
            Kurang bayar pajak                                                                                                   Under payment of corporate
             penghasilan badan (Catatan 22b)                            (20.951)                    (5.803)                         income tax (Note 22b)




                                                                         122
Page 662
                                                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                           (Expressed in millions of Rupiah, unless otherwise stated)


   22.        PERPAJAKAN (lanjutan)                                                                       22.             TAXATION (continued)

         g.   Aset pajak tangguhan:                                                                                  g.    Deferred tax assets:


                                                                  Dikreditkan ke
                                                                   penghasilan                 Dikreditkan ke         Penyesuaian
                                                               komprehensif lain/            laporan laba rugi/        saldo awal/
                                              31 Desember/      Credited to other               Credited to            Beginning             31 Desember/
                                              December 31,       comprehensive              statement of profit         balance              December 31,
                                                  2022               income                       or loss             adjustment                 2023
              Cadangan jasa produksi                  73.284                            -               (3.454)                          -           69.830    Provision for employee bonuses
              Penyisihan kerugian                                                                                                                                           Provision for losses
               aset produktif                        340.736                            -                 6.981             (19.502)                328.215                on earning assets
              Laba yang belum direalisasi
               atas aset keuangan                                                                                                                                           Unrealized gain on
               yang diukur pada nilai wajar                                                                                                                        financial assets measured
               melalui penghasilan                                                                                                                                       at fair value through
               komprehensif lain                      26.986               (11.984)                              -                       -           15.002     other comprehensive income
              Cadangan lainnya                        13.381                            -               (5.623)                          -            7.758                    Others provision
              Sewa                                   (1.014)                            -                    19                          -            (995)                              Lease
              Cadangan imbalan kerja                  48.865                 5.033                      (1.585)                          -           52.313     Provision for employee benefit
              Aset pajak tangguhan                   502.238                (6.951)                     (3.662)             (19.502)                472.123               Deferred tax assets


                                                                  Dikreditkan ke
                                                                   penghasilan                 Dikreditkan ke         Penyesuaian
                                                               komprehensif lain/            laporan laba rugi/        saldo awal/
                                              31 Desember/      Credited to other               Credited to            Beginning             31 Desember/
                                              December 31,       comprehensive              statement of profit         balance              December 31 ,
                                                  2021               income                       or loss             adjustment                 2022

              Cadangan jasa produksi                 72.346                         -                      938                       -              73.284     Provision for employee bonuses
              Penyisihan kerugian                                                                                                                                           Provision for losses
               aset produktif                       523.599                         -                 (141.669)             (41.194)               340.736                  on earning assets
              Laba yang belum direalisasi
               atas aset keuangan                                                                                                                                            Unrealized gain on
               yang diukur pada nilai wajar                                                                                                                        financial assets measured
               melalui penghasilan                                                                                                                                       at fair value through
               komprehensif lain                    (45.400)                76.116                           -                (3.730)               26.986      other comprehensive income
              Cadangan lainnya                       14.502                      -                      (1.121)                    -                13.381                      Others provision
              Sewa                                    1.777                      -                      (2.791)                    -                 (1.014)                               Lease
              Cadangan imbalan kerja                 60.387                (21.945)                      6.064                 4.359                48.865      Provision for employee benefit
              Aset pajak tangguhan                 627.211                 54.171                    (138.579)              (40.565)               502.238                 Deferred tax assets




                                                                                            123
Page 663
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)

  22.   PERPAJAKAN (lanjutan)                                    22.      TAXATION (continued)
        h.   Perubahan tarif pajak                                       h. Changes in tax rate
             Berdasarkan pasal 17 ayat 2 Undang-undang                        Under article 17, paragraph 2 of Law No.7 year
             No.7 tahun 1983 mengenai “Pajak Penghasilan”                     1983 regarding “Income Tax” which has been
             yang telah diubah untuk keempat kalinya dengan                   amended for the fourth time with the Law No.36
             Undang-undang No.36 tahun 2008, tarif Pajak                      year 2008, the corporate income tax rate is
             Penghasilan Badan sebesar 25%. Namun                             25%. However, based on Law No.36 year 2008
             demikian berdasarkan Undang-undang No.36                         dated September 23, 2008, Government
             tahun 2008 tanggal 23 September 2008,                            Regulation No.81 year 2007 dated December
             Peraturan Pemerintah No.81 tahun 2007 tanggal                    28, 2007 regarding “Reduction on Income Tax
             28 Desember 2007 tentang “Penurunan Tarif                        Rate for Domestic Listed Companies” and the
             Pajak Penghasilan Bagi Wajib Pajak Badan                         Ministry       of     Finance        Regulation
             Dalam Negeri yang Berbentuk Perseroan                            No.238/PMK.03/2008 dated December 30,
             Terbuka” dan Peraturan Menteri Keuangan                          2008 regarding “Implementation and Monitoring
             No.238/PMK.03/2008 tanggal 30 Desember 2008                      Procedures for Granting Reduction Rates for
             tentang    “Tata   Cara    Pelaksanaan     dan                   Domestic Listed Companies”.
             Pengawasan Pemberian Penurunan Tarif Bagi
             Wajib Pajak Badan Dalam Negeri yang Berbentuk
             Perseroan Terbuka”.
             Pada akhir tahun 2013, Peraturan Pemerintah                      At end of 2013, Government Regulation No.81
             No.81 Tahun 2007 tanggal 28 Desember 2007                        Year 2007 dated December 28, 2007 was
             telah diubah dengan Peraturan Pemerintah (PP)                    amended by Government Regulation (PP)
             No.77 Tahun 2013 tanggal 21 November 2013                        No.77 Year 2013 dated November 21, 2013
             yang kemudian diubah dengan Peraturan                            which was amended with Government
             Pemerintah (PP) No.56 Tahun 2015 tanggal 3                       Regulation (PP) No.56 Year 2015 dated August
             Agustus 2015 tentang “Penurunan Tarif Pajak                      3, 2015 regarding “Reduction on Income Tax
             Penghasilan Bagi Wajib Pajak Badan Dalam                         Rate for Domestic Listed Companies”, which
             Negeri yang Berbentuk Perseroan Terbuka”,                        regulates that domestic listed companies can
             yang mengatur bahwa wajib pajak dalam negeri                     obtain reduction on income tax rate at 5% (five
             yang berbentuk perseroan terbuka dapat                           percent) lower than income tax rate of domestic
             memperoleh penurunan tarif pajak penghasilan                     companies tax payers if the following criterias
             sebesar 5% (lima persen) lebih rendah dari tarif                 are met: (a) at least 40% (fourty percent) of the
             pajak penghasilan wajib pajak badan dalam                        total issued shares are traded in Indonesia
             negeri bila memenuhi persyaratan sebagai                         Stock Exchange, (b) the shares are owned by
             berikut: (a) paling sedikit 40% (empat puluh                     at least 300 parties, (c) each party can only own
             persen) dari jumlah keseluruhan saham yang                       lower than 5% (five percent) of the total issued
             disetor dicatat untuk diperdagangkan di Bursa                    and fully paid shares, and (d) the above
             Efek Indonesia, (b) saham tersebut harus dimiliki                requirements must be fulfilled at the minimum
             oleh paling sedikit 300 pihak, (c) masing-masing                 of 183 (one hundred eighty three) calendar
             pihak tersebut hanya boleh memiliki saham                        days in a period of 1 (one) fiscal year.
             kurang dari 5% (lima persen) dari keseluruhan                    Regulation on application and supervision of
             saham ditempatkan dan disetor penuh, dan (d)                     the reduction on income tax rate will be
             ketentuan sebagaimana dimaksud di atas harus                     provided in the Government Regulation.
             dipenuhi dalam waktu paling singkat 183 (seratus
             delapan puluh tiga) hari kalender dalam jangka
             waktu 1 (satu) tahun pajak. Ketentuan mengenai
             tata cara pelaksanaan dan pengawasan
             pemberian penurunan tarif pajak penghasilan di
             atas akan diatur dengan Peraturan Pemerintah
             (PP).




                                                           124
Page 664
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 22.   PERPAJAKAN (lanjutan)                                           22.      TAXATION (continued)
        h. Perubahan tarif pajak (lanjutan)                                     h. Changes in tax rate (continued)
             Pada 18 Mei 2020, Presiden Republik Indonesia                          On May 18, 2020, the President of the
             mengeluaran Undang-udang Nomor 2 Tahun                                 Republic of Indonesia issued Law Number 2
             2020 tentang Penetapan Peraturan Pemerintah                            of 2020 concerning the Stipulation of
             Pengganti Undang-Undang Nomor 1 Tahun 2020                             Government Regulation in Lieu of Law
             tentang Kebijakan Keuangan Negara dan                                  Number 1 of 2020 concerning State
             Stabilitas Sistem Keuangan untuk Penanganan                            Financial Policy and Financial System
             Pandemi Corona Virus Disease 2019 (Covid-19)                           Stability for Handling the Corona Virus
             dan/atau Dalam Rangka Menghadapi Ancaman                               Disease 2019 (Covid-19) Pandemic and/ or
             yang Membahayakan Perekonomian Nasional                                In the Context of Facing Threats that
             dan/atau Stabilitas Sistem Keuangan Menjadi                            Endanger the National Economy and/or
             Undang-Undang pasal 5 menyebutkan bahwa                                Financial System Stability to Become Law.
             adanya penyesuaian tarif Pajak Penghasilan                             Article 5 states that there is an adjustment in
             Wajib Pajak Badan dalam negeri dan bentuk                              the income tax rate for domestic corporate
             usaha tetap menjadi (a) sebesar 22% (dua puluh                         taxpayers and permanent establishments to
             dua persen) yang berlaku pada Tahun Pajak                              become (a) 22% (twenty two percent) which
             2020 dan Tahun Pajak 2021. Kemudian berubah                            applies in the 2020 Fiscal Year and 2021
             menjadi (b) sebessar 20% (dua puluh persen)                            Fiscal Year. Then it changes to (b) 20 %
             yang mulai berlaku pada Tahun Pajak 2022.                              (twenty percent) which will take effect in the
             Pada pasal 5 ayat 2 bagi Wajib Pajak dalam                             2022 Fiscal Year. In article 5 paragraph 2 for
             negeri berbentuk Perseroan Terbuka dengan                              domestic Taxpayers in the form of Public
             jumlah keseluruhan saham yang disetor                                  Companies with the total number of paid-up
             diperdagangkan pada bursa efek di Indonesia                            shares traded on the stock exchange in
             paling sedikit 40% (empat puluh persen), dan                           Indonesia at least 40% (forty percent), and
             memenuhi         persyaratan   tertentu     dapat                      fulfilling certain requirements may obtain a
             memperoleh tarif 3% (tiga persen) lebih rendah                         tariff of 3% (three percent) lower than the
             dari tarif yang dimaksud pada huruf (a) dan (b).                       rate referred to in letters (a) and (b).

             Pada tanggal 29 Oktober 2021, Presiden                                 On October 29, 2021, the President of the
             Republik Indonesia mengeluarkan Undang-                                Republic of Indonesia issued Law Number 7
             Undang Nomor 7 Tahun 2021 tentang                                      of 2021 concerning Harmonization of Tax
             Harmonisasi Peraturan Perpajakan dengan tarif                          Regulations with a tax rate for domestic
             Wajib Pajak badan dalam negeri dan bentuk                              entities and permanent establishments of
             usaha tetap sebesar 22% yang mulai berlaku                             22% which will take effect in the 2022 fiscal
             pada tahun pajak 2022. Wajib Pajak badan                               year. Domestic corporate taxpayers are in
             dalam negeri berbentuk (a) perseroan terbuka,                          the form of (a) a public company, (b) the total
             (b) jumlah keseluruhan saham yang disetor                              number of paid-up shares is traded on the
             diperdagangkan pada bursa efek di Indonesia                            stock exchange in Indonesia at least 40%
             paling sedikit 40% dan (c) memenuhi                                    and (c) fulfilling certain requirements can
             persyaratan tertentu dapah memperoleh tarif                            obtain a rate of 3% lower than the rate
             sebesar 3% lebih rendah dari tarif yang                                referred to. In this regard, it is regulated by
             sebagaimana dimaksud. Terkait hal tersebut,                            Government Regulation (PP) Number 55 of
             diatur oleh Peraturan Pemerintah (PP) Nomor 55                         2022       concerning       Adjustment       of
             Tahun 2022 tentang Penyesuaian Pengaturan di                           Arrangements in the Income Tax Sector
             Bidang Pajak Penghasilan yang menyebutkan                              which states that the domestic income tax
             bahwa tarif pajak penghasilan dalam negeri dan                         rate and permanent establishment is (a) 22%
             bentuk usaha tetap adalah sebesar (a) 22% yang                         which applies in the 2020 and 2021 Fiscal
             berlaku pada Tahun Pajak 2020 dan 2021 dan                             Years and (b) 22% which will take effect in
             (b) 22% yang mulai berlaku pada Tahun pajak                            the 2022 tax year (in accordance with the
             2022 (sesuai dengan ketentuan Undang-undang                            provisions of Law number 7 of 2021
             nomor 7 Tahun 2021 tentang Harmonisasi                                 concerning       Harmonization       of     Tax
             Peraturan Perpajakan).                                                 Regulations).




                                                            125
Page 665
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 22.   PERPAJAKAN (lanjutan)                                        22.     TAXATION (continued)
        h. Perubahan tarif pajak (lanjutan)                                 h. Changes in tax rate (continued)
           Wajib pajak badan dalam negeri adalah                               Domestic corporate taxpayers are in the form
           berbentuk (a) perseroan terbuka, (b) dengan                         of (a) a public company, (b) with the total
           jumlah keseluruhan saham yang disetor                               number of paid-up shares traded on the
           diperdagangkan pada bursa efek di Indonesia                         stock exchange in Indonesia at a minimum of
           paling rendah 40% dan (c) memenuhi                                  40% and (c) fulfilling certain requirements
           persyaratan tertentu dapat memperoleh tarif                         can obtain a rate of 3% lower than the rate
           sebesar 3% lebih rendah dari tarif yang                             stipulated as referred to above. The specific
           sebagaimana dimaksud diatas. Persyaratan                            requirements referred to are (a) shares must
           tertentu yang dimaksud adalah (a) saham harus                       be owned by at least 300 parties, (b) each
           dimiliki oleh paling sedikit 300 pihak, (b) masing-                 party can only own shares of less than 5% of
           masing pihak hanya boleh memiliki saham                             the total issued and fully paid shares, (c) the
           kurang dari 5% dari keseluruhan saham yang                          above requirements must be fulfilled at the
           ditempatkan dan disetor penuh, (c) ketentuan                        minimum of 183 (one hundred eighty three)
           sebagaimana dimaksud diatas harus dipenuhi                          calendar days in a period of 1 (one) fiscal
           dalam jangka waktu paling singkat 183 hari                          year.
           kalender dalam jangka waktu 1 tahun pajak.
             Berdasarkan surat keterangan No.DE/I/2024-                          Based on Letter No.DE/I/2024-0195 dated
             0195 tanggal 4 Januari 2024 tentang laporan                         January 4, 2024 regarding the monthly report
             bulanan kepemilikan saham berupa Lampiran                           of shares ownerships, form of Attachment to
             POJK Nomor 10/POJK.04/2020 dari Biro                                POJK Number 10/POJK.04/2020 from the
             Administrasi Efek, Datindo Entrycom atas                            Securities Administration Agency (Biro
             kepemilikan saham Bank selama tahun 2023,                           Administrasi Efek), Datindo Entrycom on the
             semua kriteria di atas untuk memperoleh fasilitas                   ownership of Bank’s shares during 2023, all
             penurunan tarif pajak tersebut atas laporan                         of the above mentioned required criteria to
             keuangan Bank untuk tahun yang berakhir pada                        obtain the tax rate reduction on Bank’s
             tanggal 31 Desember 2023 telah dipenuhi..                           financial statements for the year ended
                                                                                 December 31, 2022 were fulfilled by Bank.
             Manajemen akan terus melakukan pemantauan                           Management will continue to monitor related
             terkait pemenuhan persyaratan penurunan tarif                       to meeting the tariff reduction requirements
             sebagaimana disebutkan di atas. Manajemen                           as mentioned above. Management believes
             berkeyakinan bahwa Bank telah memenuhi                              that the Bank has fulfill all the requirements
             semua persyaratan untuk memperoleh fasilitas                        to obtain the reduction on income tax rate
             penurunan tarif pajak penghasilan                                   facility.

             Sehubungan dengan hal tersebut, pajak                               In relation with the matter above, corporate
             penghasilan badan untuk posisi 31 Desember                          income tax for the position of December 31,
             2023 telah dihitung menggunakan tarif pajak                         2023 has been calculated using a tax rate of
             19%.                                                                19%.


 23.   BEBAN YANG MASIH HARUS DIBAYAR                            23.      ACCRUED EXPENSES

                                                31 Desember/           31 Desember/
                                                December 31,           December 31,
                                                    2023                   2022
       Cadangan jasa produksi                         367.526                   385.706                               Employee bonuses
       Bunga                                          137.222                   135.134                                         Interest
       Jumlah                                         504.748                   520.840                                            Total




                                                           126
Page 666
                                                                                The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                     and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)



 24.   LIABILITAS LAIN-LAIN                                                      24.       OTHER LIABILITIES

                                                         31 Desember/                             31 Desember/
                                                        December 31,                             December 31,
                                                             2023                                     2022
                                               Jumlah nosional                          Jumlah nosional
                                               mata uang asing/                         mata uang asing/
                                               Notional amount                          Notional amount
                                                   foreign                                  foreign
                                                 currencies         Ekuivalen             currencies         Ekuivalen
                                                (Dalam angka         Rupiah/             (Dalam angka         Rupiah/
                                                penuh/ In full        Rupiah             penuh/ In full        Rupiah
                                                   amount)         equivalent               amount)         equivalent
       Rupiah                                                                                                                                               Rupiah
        Cadangan imbalan kerja                                        275.328                                   257.184            Provision of employee benefit
        Setoran jaminan                                               119.135                                   132.236                         Security deposits
        Liabilitas sewa                                                29.538                                    23.322                           Lease liabilities
        Pokok kredit penerusan yang diterima                            8.303                                     7.683     Principal - channeling loans received
        Bunga kredit penerusan yang diterima                            3.582                                     3.592      Interest - channeling loans received
        Provisi dan administrasi kredit                                    15                                         -       Provision and credit administration
        Estimasi kerugian komitmen                                                                                            Estimated losses on commitments
          dan kontinjensi                                               3.450                                     3.020                      and contingencies
        Lainnya                                                         2.173                                     1.390                                    Others
                                                                       441.524                                  428.427
       Mata uang asing                                                                                                                        Foreign currencies
        Lainnya                                                                                                                                            Other
          Dolar Amerika Serikat                      17.813.275       274.271                 2.526.096          39.325                    United States Dollar
          Dolar Singapore                               557.049        62.209                   305.187           3.538                       Singapore Dollar
          Dolar Hong Kong                                   -                -                   10.017              20                      Hong Kong Dollar
          Yuan China                                    603.687         1.310                                                                    Chinese Yuan
          Euro                                              -                -                   44.869             744                                   Euro
                                                                       337.790                                   43.627
       Jumlah                                                          779.314                                  472.054                                      Total



       Estimasi kerugian komitmen dan kontinjensi adalah                                   Estimated    losses      on              commitments                and
       sebagai berikut:                                                                    contingencies are as follows:

                                                           31 Desember/                31 Desember/
                                                           December 31,                December 31,
                                                               2023                        2022

        Saldo awal tahun                                              3.020                        117                       Balance at beginning of year
        Pemulihan tahun berjalan                                        430                      2.903                          Recovery during the year
        Saldo akhir tahun                                             3.450                      3.020                           Balance at end of year




                                                                       127
Page 667
                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                         PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                         JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                        NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                        As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                    and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)

 25.   DANA SYIRKAH TEMPORER                                                 25.          TEMPORARY SYIRKAH FUNDS

       a.   Giro Mudharabah                                                          a.   Mudharabah Current Accounts
            1) Berdasarkan jenis produk                                                   1) By product

                                                                     2023                     2022
               Bukan Bank                                                                                                                  Non-Bank
                Giro iB Hasanah (Mudharabah)                                                                               iB Hasanah (Mudharabah)
                                                                            1.786                    1.637                        current accounts
                                                                            1.786                    1.637
               Bank                                                                                                                            Bank
                Giro iB Hasanah (Mudharabah)                                                                               iB Hasanah (Mudharabah)
                                                                                -                        -                        current accounts
               Jumlah                                                       1.786                    1.637                                     Total


            2) Berdasarkan hubungan                                                       2) By relationship
                                                                     2023                     2022
               Bukan Bank                                                                                                                 Non-Bank
                Pihak berelasi                                                  -                     -                             Related parties
                Pihak ketiga                                                1.786                 1.637                               Third parties
                                                                            1.786                 1.637
               Bank                                                                                                                             Bank
                Pihak ketiga                                                                                                           Third parties
                                                                                -                     -
               Total                                                        1.786                 1.637                                         Total

            3) Nisbah dan tingkat bagi hasil                                              3) Ratio and profit sharing rate
               Nisbah dan tingkat bagi hasil rata-rata giro                                    The average rate of ratio and profit sharing for
               mudharabah untuk tahun yang berakhir                                            mudharabah current accounts for the year
               pada 31 Desember 2023 dan 2022 adalah                                           ended December 31, 2023 and 2022 are as
               sebagai berikut:                                                                follows:
                                                        2023                                           2022
                                                                     Tingkat bagi                           Tingkat bagi
                                                     Nisbah/Ratio     hasil/Profit        Nisbah/Ratio       hasil/Profit
                                                                     sharing rate                           sharing rate
               Giro Mudharabah                         5,00%            0,51%                5,00%             0,47%       Mudharabah current accounts

       b.   Tabungan Mudharabah                                                      b.   Mudharabah Savings Deposits
             1) Berdasarkan jenis produk                                                  1) By product
                                                                       2023                     2022
                 Bukan Bank                                                                                                                 Non-Bank
                  Tabungan iB Hasanah (Mudharabah)                                                                           iB Hasanah (Mudharabah)
                                                                            718.471               594.597                           savings deposits
                                                                            718.471               594.597
                 Bank                                                                                                                           Bank
                  Tabungan iB Hasanah (Mudharabah)                                                                           iB Hasanah (Mudharabah)
                                                                             15.722                19.285                           savings deposits
                 Jumlah                                                     734.193               613.882                                       Total




                                                                    128
Page 668
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


 25.   DANA SYIRKAH TEMPORER (lanjutan)                                   25.        TEMPORARY SYIRKAH FUNDS (continued)

       b.   Tabungan Mudharabah (lanjutan)                                      b.   Mudharabah Savings Deposits (continued)
             2) Berdasarkan jenis produk                                             2) By product

                                                               December 31,          December 31,
                                                                   2023                  2022
                 Bukan Bank                                                                                                             Non-Bank
                  Pihak berelasi                                        1.485                    972                              Related parties
                  Pihak ketiga                                        716.986                593.625                                Third parties
                                                                      718.471                594.597
                 Bank                                                                                                                         Bank
                  Pihak ketiga                                                                                                       Third parties
                                                                       15.722                 19.285
                 Jumlah                                               734.193                613.882                                          Total

             3) Nisbah dan tingkat bagi hasil                                        3) Ratio and profit sharing rate
                Nisbah dan tingkat bagi hasil rata-rata                                   The average rate of ratio and profit sharing for
                tabungan mudharabah untuk tahun yang                                      mudharabah savings deposits for the year
                berakhir pada 31 Desember 2023 dan 2022                                   ended December 31, 2023 and 2022 are as
                adalah sebagai berikut:                                                   follows:
                                                      2023                                          2022
                                                                      Tingkat bagi                       Tingkat bagi
                                                Nisbah/Ratio                           Nisbah/Ratio
                                                                      hasil/Profit                       hasil/Profit
                 Tabungan Barokah Sejahtera         4,00%                0,41%            4,00%             0,38%      Barokah Sejahtera savings deposits
                 Tabungan Pensiun IB Barokah       15,00%                1,52%           15,00%             1,42%      Pensiun IB Barokah saving deposits
                 Tabungan Rencana IB Barokah       25,00%                2,54%           25,00%             2,37%     Rencana IB Barokah savings deposits
                 Tabungan Haji Amanah              10,00%                1,02%           10,00%             0,95%           Haji Amanah savings deposits
                 Tabungan Mudh Bank Lain            8,00%                0,81%            8,00%             0,76%       Mudh Other Bank savings deposits
                 Tabungan Barokah                  12,50%                1,27%           12,50%             1,19%                Barokah savings deposits


       c.   Deposito Mudharabah                                                 c.   Mudharabah Time Deposits
            1) Berdasarkan hubungan                                                  1) By relationship

                                                                   2023                    2022
                 Bukan Bank                                                                                                              Non-Bank
                  Pihak berelasi                                        2.279                   1.330                              Related parties
                  Pihak ketiga                                      1.624.519               1.244.128                                Third parties
                                                                    1.626.798               1.245.458
                 Bank                                                                                                                          Bank
                  Pihak ketiga                                                                                                        Third parties
                                                                        3.700                   9.000
                 Jumlah                                             1.630.498               1.254.458                                          Total

             2) Berdasarkan jangka waktu kontrak                                     2) By contractual period

                                                                      2023                   2022

                 Bukan Bank                                                                                                                  Non-Bank
                  <1 bulan                                                    -              1.057.791                                      <1 month
                  1 - <3 bulan                                        1.433.382                 75.331                                 1 - <3 months
                  3 - <6 bulan                                           55.712                 18.479                                 3 - <6 months
                  6 - 12 bulan                                          137.704                 93.857                                 6 - 12 months
                                                                      1.626.798              1.245.458
                 Bank                                                                                                                            Bank
                  <1 bulan                                                    -                  6.500                                      <1 month
                  1 - <3 bulan                                            3.700                  2.500                                 1 - <3 months
                 Jumlah                                               1.630.498              1.254.458                                           Total


                                                                129
Page 669
                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                         PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                         JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                        NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                        As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                    and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)

 25.   DANA SYIRKAH TEMPORER (lanjutan)                                     25.         TEMPORARY SYIRKAH FUNDS (continued)

       c.   Deposito Mudharabah (lanjutan)                                        c.    Mudharabah Time Deposits (continued)

            3) Berdasarkan sisa umur jatuh tempo                                        3) By remaining period to maturity
                                                                  December 31,           December 31,
                                                                      2023                   2022
               Bukan Bank                                                                                                                     Non-Bank
                <1 bulan                                              1.453.147                1.087.576                                     <1 month
                1 - <3 bulan                                             60.815                   59.380                                1 - <3 months
                3 - <6 bulan                                             28.070                   29.431                                3 - <6 months
                6 - 12 bulan                                             84.766                   69.071                                6 - 12 months
                                                                      1.626.798                1.245.458
               Bank                                                                                                                               Bank
                <1 bulan                                                  2.500                    6.500                                     <1 month
                1 - <3 bulan                                              1.200                    2.500                                1 - <3 months
               Jumlah                                                 1.630.498                1.254.458                                          Total

             4) Nisbah dan tingkat bagi hasil                                           4) Ratio and profit sharing rate
                Nisbah dan tingkat bagi hasil rata-rata                                    The average rate of ratio and profit sharing for
                deposito mudharabah untuk tahun yang                                       mudharabah time deposits for the year ended
                berakhir pada 31 Desember 2023 dan 2022                                    December 31, 2023 and 2022 are as follows:
                adalah sebagai berikut:
                                                       2023                                              2022
                                                                         Tingkat bagi                           Tingkat bagi
                                                   Nisbah/Ratio                           Nisbah/Ratio
                                                                         hasil/Profit                           hasil/Profit
                 1 bulan                             36,00%                 3,66%           36,00%                 3,42%                            1 month
                 3 bulan                             38,00%                 3,86%           38,00%                 3,61%                           3 months
                 6 bulan                             41,00%                 4,16%           41,00%                 3,89%                           6 months
                 12 bulan                            42,50%                 4,32%           42,50%                 4,03%                          12 months




                                                                   130
Page 670
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 26.   MODAL SAHAM                                                   26.      SHARE CAPITAL

       Pemegang saham Bank, jumlah saham yang                                 The Bank’s shareholders, the number of authorized,
       ditempatkan dan disetor, dan saldo yang terkait pada                   issued and paid-up shares and the related balances
       tanggal 31 Desember 2023 dan 2022, adalah sebagai                      as of December 31, 2023 and 2022 were as follows:
       berikut:

       a.       Modal dasar                                                   a.        Authorized capital

                Modal dasar Bank pada tanggal 31 Desember                              The Bank’s authorized capital as of December
                2023 dan 2022 adalah sebagai berikut:                                  31, 2023 and 2022 were as follows:

                                                    Jumlah
                                                    saham/
                                                  Number of                    Rupiah/
                                                    shares                     Rupiah
                 Saham Seri A                     24.000.000.000                  6.000.000                                   Series A Shares
                 Saham Seri B                     12.000.000.000                  3.000.000                                   Series B Shares
                 Jumlah                           36.000.000.000                  9.000.000                                             Total



                Saham Seri A dan Seri B, masing-masing                                 Series A and B shares with par value of Rp250
                dengan nilai nominal Rp250 per saham (Rupiah                           per share (full Rupiah).
                penuh).

            -     Modal dasar Bank semula adalah sebesar                           -       The previous authorized capital of the Bank
                  Rp2.500.000 yang terbagi atas Rp2.250.000                               was Rp2,500,000 which consisted of
                  saham seri A dan Rp250.000 saham seri B                                 Rp2,250,000 series A shares and Rp250,000
                  dengan nominal per lembar saham Rp1                                     series B shares with par value of Rp1 based
                  berdasarkan akta No. 56 tanggal 17 April                                on deed No. 56 dated April 17, 2008, and
                  2008 dan disahkan oleh Notaris Untung                                   was legalized by Notary of Untung
                  Darnosoewirjo,     S.H.     Modal    dasar                              Darnosoewirjo, S.H. The authorized capital
                  ditingkatkan menjadi Rp9.000.000 yang                                   was increased to be Rp9,000,000 which
                  terbagi atas Rp6.000.000 saham seri A dan                               consisted of Rp6,000,000 series A shares
                  Rp3.000.000 saham seri B dengan nilai                                   and Rp3,000,000 series B shares with par
                  nominal per lembar saham Rp250 (Rupiah                                  value of Rp250 (full Rupiah). In relation to the
                  penuh). Terkait dengan peningkatan modal                                increase in authorised capital, the Bank has
                  dasar tersebut, Bank telah memperoleh                                   obtained approval to amend the Bank's
                  persetujuan perubahan Anggaran Dasar dari                               Articles of Association from the Ministry of
                  Menteri Hukum dan Hak Asasi Manusia                                     Law and Human Rights of the Republic of
                  Republik       Indonesia    No.      AHU-                               Indonesia No. AHU-22728.AH.01.02.Tahun
                  22728.AH.01.02.Tahun 2012 pada tanggal 30                               2012 dated April 30, 2012.
                  April 2012.




                                                            131
Page 671
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

 26.   MODAL SAHAM (lanjutan)                                        26.    SHARE CAPITAL (continued)

       a.        Modal dasar                                                      a.    Authorized capital

                Saham Seri A dan Seri B, masing-masing                            Series A and B shares with par value of Rp250 per
                dengan nilai nominal Rp250 per saham (Rupiah                      share (full Rupiah).
                penuh).

            -     Berdasarkan Berita Acara Rapat Pemegang                     -        Based on minutes of Extraordinary Meeting
                  Saham Luar Biasa No. 19 tanggal 19 Maret                             Shareholders’ No. 19 dated March 19, 2012, as
                  2012, sebagaimana dituangkan dalam Akta                              stated in Notarial Deed No. 19 dated March 19,
                  Notaris No. 19 tanggal 19 Maret 2012, yang                           2012 of Wachid Hasyim, S.H., the shareholders
                  dibuat dihadapan Notaris Wachid Hasyim,                              agreed to convert the appropriated retained
                  S.H., para pemegang saham menyetujui                                 earnings of Rp1,310,000 to issued and fully
                  untuk mengkonversi saldo laba yang telah                             paid capital after the authorized capital of the
                  ditentukan       penggunaannya      sebesar                          Bank has been increased to be Rp9,000,000,
                  Rp1.310.000 ke modal ditempatkan dan                                 proportionally based on the number of shares
                  disetor penuh setelah modal dasar Bank                               hold by each shareholders, at par value of
                  ditingkatkan menjadi Rp9.000.000, secara                             Rp250 (full Rupiah) per share, and therefore the
                  proporsionil berdasarkan jumlah saham yang                           residual for which the amount is unable to be
                  dimiliki oleh masing-masing pemegang saham                           fully divided by Rp250 (full Rupiah) are to be
                  dengan nilai nominal Rp250 (Rupiah penuh)                            returned to esach shareholders.
                  per lembar saham, sehingga sisa hasil
                  konversi yang tidak habis dibagi Rp250
                  (Rupiah penuh) akan dikembalikan kepada
                  masing-masing pemegang saham.

            -     Pada tanggal 12 Juli 2012 saham Bank                        -        On July 12, 2012 Bank shares have been
                  secara resmi telah tercatat di Bursa Efek                            officially listed on the Indonesia Stock
                  Indonesia. Jumlah saham Bank yang tercatat                           Exchange. Total shares of the Bank listed on
                  di    Bursa   Efek    Indonesia    sebanyak                          the      Indonesia  Stock  Exchange      were
                  14.768.508.132 saham atau 99% dari jumlah                            14,768,508,132 shares or 99% of the total
                  saham     Bank.    Saham     yang    tercatat                        shares of the Bank. Listed shares are
                  merupakan     saham     seri  A    sebanyak                          11,784,971,132     series A    shares     and
                  11.784.971.132 dan saham seri B sebanyak                             2,983,537,000 Series B shares. While the
                  2.983.537.000       saham.        Sementara                          149,176,850 shares or 1% are not listed on the
                  149.176.850 saham atau 1% sisanya tidak                              Indonesia Stock Exchange       to fulfill the
                  dicatatkan di Bursa Efek Indonesia untuk                             Government Regulation No.29 of 1999
                  memenuhi Peraturan Pemerintah No.29 tahun                            concerning Purchase of Shares of Commercial
                  1999 tentang Pembelian Saham Bank Umum.                              Banks.

       b.       Jumlah saham seri A yang ditempatkan dan                   b. Total issued and fully paid-up capital of series A
                disetor penuh pada tanggal 31 Desember 2023                   shares as of December 31, 2023 and December
                dan 31 Desember 2022 sebagai berikut (Rupiah                  31, 2022, are as follows (full Rupiah):
                penuh):

                Pemecahan nilai nominal dari                                                                   Stock split from Rp1,000,000
                Rp1.000.000 per saham menjadi                                                                                 per share to be
                Rp250 per saham                                    6.694.148.000                                           Rp250 per saham
                Konversi cadangan umum                             5.239.999.982                                General reserve conversion
                Jumlah saham pada akhir tahun                     11.934.147.982                                        Shares at year end

       c.       Jumlah saham seri B yang ditempatkan dan                   c. Total issued and fully paid-up capital of series B
                disetor penuh pada tanggal 31 Desember 2023                   shares as of December 31, 2023 and 2022 are
                dan 2022 adalah 3.081.350.100 lembar saham                    3,081,350,100 shares (full Rupiah).
                (Rupiah penuh).




                                                              132
Page 672
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


  26.   MODAL SAHAM (lanjutan)                                         26.      SHARE CAPITAL (continued)

        d.   Susunan pemegang saham                                             d. Composition of shareholders

                                                                  31 Desember/
                                                                  December 31,
                                                                       2023
                                               Jumlah lembar          Persentase         Jumlah modal
                                                  saham/             kepemilikan/          disetor/
                                                 Number of          Percentage of        Total paid-in
             Pemegang saham                       shares              ownership             capital                                   Shareholders
             Seri A                                                                                                                        Series A
             Pemerintah Provinsi Jawa Timur       7.676.913.648              51,13%           1.919.228           Government of East Java Province
             Pemerintah Kabupaten:                                                                                      Government of Regencies:
              Kabupaten Sidoarjo                   370.155.850                2,47%              92.539                      Regency of Sidoarjo
              Kabupaten Bojonegoro                 300.288.632                2,00%              75.072                   Regency of Bojonegoro
              Kabupaten Banyuwangi                 270.036.117                1,80%              67.509                  Regency of Banyuwangi
              Kabupaten Malang                     253.635.445                1,69%              63.409                       Regency of Malang
              Kabupaten Gresik                     220.213.170                1,47%              55.053                        Regency of Gresik
              Kabupaten Tuban                      217.418.404                1,45%              54.355                        Regency of Tuban
              Kabupaten Ngawi                      215.763.995                1,44%              53.941                        Regency of Ngawi
              Kabupaten Kediri                     144.925.510                0,97%              36.231                         Regency of Kediri
              Kabupaten Sumenep                    144.228.431                0,96%              36.057                     Regency of Sumenep
              Kabupaten Kraksaan                   125.931.454                0,84%              31.483                     Regency of Kraksaan
              Kabupaten Jember                     111.866.875                0,75%              27.967                       Regency of Jember
              Kabupaten Lamongan                   101.318.315                0,67%              25.330                    Regency of Lamongan
              Kabupaten Sampang                    101.175.235                0,67%              25.294                     Regency of Sampang
              Kabupaten Bondowoso                   87.207.357                0,58%              21.802                   Regency of Bondowoso
              Kabupaten Trenggalek                  84.640.532                0,56%              21.160                   Regency of Trenggalek
              Kabupaten Mojokerto                   78.373.801                0,52%              19.593                    Regency of Mojokerto
              Kabupaten Nganjuk                     77.217.854                0,51%              19.304                      Regency of Nganjuk
              Kabupaten Situbondo                   76.374.593                0,51%              19.094                    Regency of Situbondo
              Kabupaten Tulungagung                 70.697.975                0,47%              17.674                 Regency of Tulungagung
              Kabupaten Lumajang                    67.206.045                0,45%              16.802                    Regency of Lumajang
              Kabupaten Pacitan                     53.520.271                0,36%              13.380                       Regency of Pacitan
              Kabupaten Pasuruan                    44.610.500                0,30%              11.153                     Regency of Pasuruan
              Kabupaten Pamekasan                   40.592.928                0,27%              10.148                  Regency of Pamekasan
              Kabupaten Blitar                      39.496.395                0,26%               9.874                          Regency of Blitar
              Kabupaten Bangkalan                   36.793.459                0,25%               9.198                    Regency of Bangkalan
              Kabupaten Madiun                      32.660.478                0,22%               8.165                       Regency of Madiun
              Kabupaten Jombang                     26.792.899                0,18%               6.698                     Regency of Jombang
              Kabupaten Ponorogo                    23.555.596                0,16%               5.889                     Regency of Ponorogo
              Kabupaten Magetan                     19.594.792                0,13%               4.899                      Regency of Magetan
             Pemerintah Kota:                                                                                         Government of Municipalities:
              Kota Surabaya                        319.243.457                2,13%              79.812                  Municipality of Surabaya
              Kota Madiun                          134.064.427                0,89%              33.516                    Municipality of Madiun
              Kota Malang                          108.635.999                0,72%              27.159                    Municipality of Malang
              Kota Pasuruan                        100.075.767                0,67%              25.019                  Municipality of Pasuruan
              Kota Mojokerto                         72.091.751               0,48%              18.023                  Municipality of Mojokerto
              Kota Batu                              38.236.741               0,25%               9.559                       Municipality of Batu
              Kota Probolinggo                       17.397.927               0,12%               4.349                Municipality of Probolinggo
              Kota Blitar                            16.987.084               0,11%               4.247                      Municipality of Blitar
              Kota Kediri                            14.208.273               0,09%               3.552                      Municipality of Kediri
                                                 11.934.147.982              79,48%           2.983.537
             Seri B                                                                                                                         Series B
             Komisaris:                                                                                                                Commisioner:
              - Suprajarto                             191.000                0,00%                  48                                Suprajarto -
             Direksi:                                                                                                                       Directors:
              - Busrul Iman                           2.958.900               0,02%                 740                               Busrul Iman -
              - Tonny Prasetyo                        1.067.400               0,01%                 267                          Tonny Prasetyo -
              - Edi Masrianto                           327.600               0,00%                  82                            Edi Masrianto -
              - R Arief Wicaksono                       728.200               0,00%                 182                       R Arief Wicaksono -
              - Zulhelfi Abidin                          24.200               0,00%                   6                            Zulhelfi Abidin -
              - Eko Susetyono                           124.100               0,00%                  31                          Eko Susetyono -
             Masyarakat (kepemilikan masing-                                                                                  Public (ownership less
              masing dibawah 5%)                  3.075.928.700               20,49%            768.982                             than 5% each)
                                                  3.081.350.100               20,52%            770.338
             Jumlah                              15.015.498.082              100,00%          3.753.875                                         Total




                                                               133
Page 673
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


 26.   MODAL SAHAM (lanjutan)                                          26.     SHARE CAPITAL (continued)

       d.   Susunan pemegang saham (lanjutan)                                  d. Composition of shareholders (continued)

                                                                  31 Desember/
                                                                  December 31,
                                                                       2022
                                              Jumlah lembar           Persentase       Jumlah modal
                                                 saham/              kepemilikan/        disetor/
                                                Number of           Percentage of      Total paid-in
            Pemegang saham                       shares               ownership           capital                                  Shareholders
            Seri A                                                                                                                      Series A
            Pemerintah Provinsi Jawa Timur       7.676.913.648               51,13%         1.919.228          Government of East Java Province
            Pemerintah Kabupaten:                                                                                    Government of Regencies:
             Kabupaten Sidoarjo                   370.155.850                2,47%             92.539                     Regency of Sidoarjo
             Kabupaten Bojonegoro                 300.288.632                2,00%             75.072                  Regency of Bojonegoro
             Kabupaten Banyuwangi                 270.036.117                1,80%             67.509                 Regency of Banyuwangi
             Kabupaten Malang                     253.635.445                1,69%             63.409                      Regency of Malang
             Kabupaten Gresik                     220.213.170                1,47%             55.053                       Regency of Gresik
             Kabupaten Tuban                      217.418.404                1,45%             54.355                       Regency of Tuban
             Kabupaten Ngawi                      215.763.995                1,44%             53.941                       Regency of Ngawi
             Kabupaten Kediri                     144.925.510                0,97%             36.231                        Regency of Kediri
             Kabupaten Sumenep                    144.228.431                0,96%             36.057                    Regency of Sumenep
             Kabupaten Kraksaan                   125.931.454                0,84%             31.483                    Regency of Kraksaan
             Kabupaten Jember                     111.866.875                0,75%             27.967                      Regency of Jember
             Kabupaten Lamongan                   101.318.315                0,67%             25.330                   Regency of Lamongan
             Kabupaten Sampang                    101.175.235                0,67%             25.294                    Regency of Sampang
             Kabupaten Bondowoso                   87.207.357                0,58%             21.802                  Regency of Bondowoso
             Kabupaten Trenggalek                  84.640.532                0,56%             21.160                  Regency of Trenggalek
             Kabupaten Mojokerto                   78.373.801                0,52%             19.593                   Regency of Mojokerto
             Kabupaten Nganjuk                     77.217.854                0,51%             19.304                     Regency of Nganjuk
             Kabupaten Situbondo                   76.374.593                0,51%             19.094                   Regency of Situbondo
             Kabupaten Tulungagung                 70.697.975                0,47%             17.674                Regency of Tulungagung
             Kabupaten Lumajang                    67.206.045                0,45%             16.802                   Regency of Lumajang
             Kabupaten Pacitan                     53.520.271                0,36%             13.380                      Regency of Pacitan
             Kabupaten Pasuruan                    44.610.500                0,30%             11.153                    Regency of Pasuruan
             Kabupaten Pamekasan                   40.592.928                0,27%             10.148                 Regency of Pamekasan
             Kabupaten Blitar                      39.496.395                0,26%              9.874                         Regency of Blitar
             Kabupaten Bangkalan                   36.793.459                0,25%              9.198                   Regency of Bangkalan
             Kabupaten Madiun                      32.660.478                0,22%              8.165                      Regency of Madiun
             Kabupaten Jombang                     26.792.899                0,18%              6.698                    Regency of Jombang
             Kabupaten Ponorogo                    23.555.596                0,16%              5.889                    Regency of Ponorogo
             Kabupaten Magetan                     19.594.792                0,13%              4.899                     Regency of Magetan
            Pemerintah Kota:                                                                                       Government of Municipalities:
             Kota Surabaya                        319.243.457                 2,13%            79.812                 Municipality of Surabaya
             Kota Madiun                          134.064.427                 0,89%            33.516                   Municipality of Madiun
             Kota Malang                          108.635.999                 0,72%            27.159                   Municipality of Malang
             Kota Pasuruan                        100.075.767                 0,67%            25.019                 Municipality of Pasuruan
             Kota Mojokerto                         72.091.751                0,48%            18.023                 Municipality of Mojokerto
             Kota Batu                              38.236.741                0,25%             9.559                      Municipality of Batu
             Kota Probolinggo                       17.397.927                0,12%             4.349               Municipality of Probolinggo
             Kota Blitar                            16.987.084                0,11%             4.247                     Municipality of Blitar
             Kota Kediri                            14.208.273                0,09%             3.552                     Municipality of Kediri
                                                11.934.147.982               79,48%         2.983.537
            Seri B                                                                                                                      Series B
            Komisaris:                                                                                                             Commisioner:
             - Heru Tjahjono                          274.200                0,00%                 69                          Heru Tjahjono -
            Direksi:                                                                                                                   Directors:
             - Busrul Iman                           1.946.500               0,01%                487                             Busrul Iman -
             - Tonny Prasetyo                          628.500               0,00%                157                         Tonny Prasetyo -
             - R Arief Wicaksono                       126.300               0,00%                 32               Ferdian Timur Satyagraha -
            Masyarakat (kepemilikan masing-                                                                               Public (ownership less
             masing dibawah 5%)                  3.078.374.600              20,50%            769.594                           than 5% each)
                                                 3.081.350.100              20,52%            770.338
            Jumlah                              15.015.498.082             100,00%          3.753.875                                      Total




                                                                 134
Page 674
                                                                          The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


  26.   MODAL SAHAM (lanjutan)                                              26.     SHARE CAPITAL (continued)

        e.   Pembagian saldo laba                                                    e. Distribution of retained earnings

             Berdasarkan Berita Acara Rapat Umum                                         Based on decisions at Annual General Meetings
             Pemegang Saham Tahunan, sebagaimana                                         Report as documented in notarial deeds No.51
             tercantum dalam akta No. 51 tanggal 17 Maret                                dated March 17, 2022 of Sitaresmi Puspadewi
             2022 yang dibuat oleh Notaris Sitaresmi                                     Subianto, S.H. And No.01 dated May 03, 2021 of
             Puspadewi Subianto, S.H. dan akta No. 01                                    Sitaresmi Puspadewi Subianto, S.H. the
             tanggal 03 Mei 2021 yang dibuat oleh Notaris                                shareholders agreed to distribute net income for
             Sitaresmi Puspadewi Subianto, S.H. para                                     the year ended December 31, 2021 and 2020 as
             Pemegang Saham menyetujui pembagian laba                                    follows:
             neto untuk tahun yang berakhir pada tanggal 31
             Desember 2021 dan 2020 sejumlah dan dengan
             penggunaan sebagai berikut:

                                                    Laba tahun/                   Laba tahun/
                                                  Net income year               Net income year
                                                        2022                          2021
              Dividen tunai                                797.173                       782.457                                   Cash dividends
              Cadangan umum                                745.651                       740.613                                   General reserve

             Bank membentuk cadangan                 umum     untuk                      Bank established            the    general      reserve         to
             memperkuat modal.                                                           strengthen capital.


  27.   TAMBAHAN MODAL DISETOR – NETO                                       27.      OTHER PAID-IN CAPITAL – NET

        Rincian tambahan modal disetor tanggal 31 Desember                           Details of other paid in capital as of December 31,
        2023 dan 31 Desember 2022, adalah sebagai berikut:                           2023 and December 31, 2022 as follows:

                                                       December 31,               December 31,
                                                            2023                      2022
        Agio saham dari Penawaran Umum                                                                                      Share premium from Initial
         Perdana Saham (IPO)                                  509.369                    509.369                               Public Offering (IPO)
        Opsi saham untuk program Management and                                                           Stock option for Management and Employee
         Employee Stock Option Plan (MESOP)                    23.365                     23.365               Stock Option Plan (MESOP) program
        Jumlah                                                532.734                    532.734                                                 Total

        Pada tanggal 12 Juli 2012, Bank telah melakukan                              On July 12, 2012, the Bank has made it first Initial
        Penawaran Umum Saham Perdana (IPO) dengan                                    Public Offering (IPO) by issuing 2,983,537,000
        mengeluarkan 2.983.537.000 lembar saham Seri B                               series B shares amounted to Rp250 (full Rupiah) per
        dengan nilai nominal sebesar Rp250 (Rupiah penuh)                            share with an offering price at Rp430 (full Rupiah)
        setiap lembar saham dengan harga penawaran                                   per share, resulting increase in share premium, as
        sebesar Rp430 (Rupiah penuh) setiap lembar saham                             follows:
        sehingga menghasilkan tambahan agio saham sebagai
        berikut:

        Agio saham Rp180 (Rupiah penuh) per                             537.037                       Share premium Rp180 (full Rupiah) per
        saham                                                                                                                        share
        Biaya emisi saham                                               (27.668)                                      Share issuance cost
        Agio saham dari IPO                                             509.369                                  Share premium from IPO




                                                                   135
Page 675
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)


 27.   TAMBAHAN MODAL DISETOR – NETO (lanjutan)                  27.     OTHER PAID-IN CAPITAL – NET (continued)

       Program MESOP sebanyak 105.915.000 lembar                         MESOP Program as much as 105,915,000 shares,
       dilaksanakan mulai tahun 2015 kepada manajemen                    started 2015 to the management and employee of the
       dan karyawan Bank dan Program MESOP akan                          Bank and will be expire in 2020. Up to now
       berakhir pada tahun 2020. Sampai dengan saat ini                  97,813,100 MESOP shares have been executed,
       telah tereksekusi 97.813.100 lembar saham dari                    resulting shares agio additional:
       Program MESOP sehingga menghasilkan tambahan
       agio saham sebagai berikut:
        Agio saham Program MESOP Tahap I                                                    Share Agio MESOP Program Phase I
        Rp200 (Rupiah penuh) per saham                                 6.355                           Rp200 (Rupiah) per share
        Tereksekusi 31.774.500 lembar                                                              executed 31,774,500 shares.
        Agio saham Program MESOP Tahap II                                                  Share Agio MESOP Program Phase II
        Rp159 (Rupiah penuh) per saham                                 5.052                          Rp159 (Rupiah) per share
        Tereksekusi 31.774.500 lembar                                                               executed 31,774,500 shares
        Agio saham Program MESOP Tahap III                                                Share Agio MESOP Program Phase III
        Rp349 (Rupiah penuh) per saham                             11.958                             Rp349 (Rupiah) per share
        Tereksekusi 34.264.100 lembar                                                              executed 34,264,100 shares
        Agio saham dari Program MESOP                               23.365                       Share Agio MESOP Program


       Program MESOP Tahap I telah dilaksanakan tanggal                 The MESOP Program Phase I has been implemented
       1 Agustus 2016 - 13 September 2016, tanggal 1                    from August 1, 2016 - September 13, 2016, February
       Februari 2017 - 13 Maret 2017, tanggal 1 Agustus                 1, 2017 - March 13, 2017, August 1, 2017 -
       2017 - 13 September 2017, tanggal 1 Februari 2018 -              September 13, 2017, February 1, 2018 - March 15,
       15 Maret 2018, tanggal 1 Agustus 2018 - 14                       2018,August 1, 2018 - September 14, 2018, February
       September 2018, tanggal 1 Pebruari 2019 - 18 Maret               1, 2019 - March 18, 2019, 2019 - September 11, 2019,
       2019, dan tanggal 1 Agustus 2019 - 11 September                  and February 3, 2020 - March 16, 2020 at Rp450 per
       2019 dengan harga Rp450 per saham dan jumlah                     share with the total number of shares purchased by
       lembar saham yang dibeli oleh peserta yang memiliki              participants is 31,774,500 shares, or 100% of
       hak opsi (MESOP) sebanyak 31.774.500 lembar                      31,774,500 shares option rights granted in Phase I
       saham atau 100% dari 31.774.500 hak opsi saham                   with a total nominal amount of Rp14,298,525,000 (full
       yang diberikan pada Tahap I dengan jumlah nominal                Rupiah).
       sebesar Rp14.298.525.000 (Rupiah penuh).

       Program MESOP Tahap II telah dilaksanakan tanggal                The MESOP Program Phase II has been implemented
       1 Agustus 2017 - 13 November 2017, dan tanggal 1                 from August 1, 2017 - September 13, 2017, February
       Februari 2018 - 15 Maret 2018, tanggal 1 Agustus                 1, 2018- March 15, 2018, August 1, 2018 - September
       2018 - 14 September 2018, tanggal 1 Pebruari 2019 -              14, 2018, February 1, 2019 - March 18, 2019, August
       18 Maret 2019, tanggal 1 Agustus 2019 - 11                       1, 2019 - September 11, 2019, and February 3, 2020 -
       September 2019, dan tanggal 3 Februari 2020 - 16                 March 16, 2020 at Rp 409 per share, with the total
       Maret 2020 dengan harga Rp409 per saham dan                      number of shares purchased by participants is
       jumlah lembar saham yang dibeli oleh peserta yang                31,774,500 shares or 100% of 31,774,500 shares
       memiliki hak opsi (MESOP) sebanyak 31.774.500                    option rights granted in Phase II with a total nominal
       lembar saham atau 100% dari 31.774.500 hak opsi                  amount of Rp 12,995,770,500 (full Rupiah).
       saham yang diberikan pada Tahap II dengan jumlah
       nominal sebesar Rp12.995.770.500 (Rupiah penuh).

       Program MESOP Tahap III telah dilaksanakan tanggal               The MESOP Program Phase III has been
       1 Agustus 2018 - 14 September 2018, tanggal 1                    implemented from August 1, 2018 - September 14,
       Pebruari 2019 - 18 Maret 2019, tanggal 1 Agustus                 2018, February 1, 2019 - March 18, 2019, August 1,
       2019 - 11 September 2019, dan tanggal 3 Februari                 2019 - September 11, 2019, and February 3, 2020 -
       2020 - 16 Maret 2020 dengan harga Rp599 per saham                March 16, 2020 at Rp599 per share, with the total
       dan jumlah lembar saham yang dibeli oleh peserta                 number of shares purchased by participants is
       yang memiliki hak opsi (MESOP) sebanyak                          34.264.100 shares or 80,88% of 42,366,000 shares
       34.264.100 lembar saham atau 80,88% dari                         option rights granted in Phase III with a total nominal
       42.366.000 hak opsi saham yang diberikan pada                    amount of Rp20,524,195,900 (full Rupiah).
       Tahap III dengan jumlah nominal sebesar
       Rp20.524.195.900 (Rupiah penuh).


                                                           136
Page 676
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  28.   PENERUSAN KREDIT                                            28.      CHANNELING LOANS
        Bank mengadakan perjanjian dengan berbagai pihak                     The Bank entered into agreements with lenders to
        penyedia dana untuk menyalurkan kredit ke sektor                     distribute credit for certain business sectors as
        usaha tertentu yang ditetapkan oleh pihak penyedia                   determined by the lenders. The Bank does not have
        dana. Bank tidak menanggung risiko atas kredit yang                  any credit risk pertaining to the channeling loans,
        disalurkan     tersebut,      tetapi    berkewajiban                 but it is responsible to implement, administer and
        melaksanakan, menatausahakan dan mengelola dana                      manage the funds distributed and the Bank collects
        kredit yang dikeluarkan dan sebagai imbalan Bank                     an administration fee for channeling loans of 1% of
        menerima jasa administrasi atas penerusan kredit                     the loans disbursed.
        sebesar 1% dari kredit yang disalurkan.
        a.    Bank Indonesia                                               a.    Bank Indonesia
              Pada tanggal 26 November 1998, 21 November                         On November 26, 1998, November 21, 1999 and
              1999 dan 11 Agustus 1999, Bank mengadakan                          August 11, 1999, the Bank entered into
              perjanjian kerjasama dengan Bank Indonesia                         cooperation agreements with Bank Indonesia to
              untuk menyalurkan kredit likuiditas Bank                           distribute liquidity credits on behalf of Bank
              Indonesia, masing-masing dalam bentuk “Kredit                      Indonesia in the form of “Kredit Likuiditas Usaha
              Likuiditas Usaha Angkutan Umum Bus                                 Angkutan Umum Bus Perkotaan” (KUAUBP),
              Perkotaan”     (KUAUBP),    “Kredit   Kepada                       “Kredit Kepada Pengusaha Kecil dan Pengusaha
              Pengusaha Kecil dan Pengusaha Mikro”                               Mikro” (KPKM) and “Kredit Usaha Tani” (KUT).
              (KPKM) dan “Kredit Usaha Tani” (KUT).
        b.    Pemerintah Provinsi Jawa Timur                               b.    Government of East Java Province
              Berdasarkan        amandemen         perjanjian                    Based     on    an    amendment       agreement
              No.518/6533/021/2016     dan    No.054/088/IV/                     No.518/6533/021/2016      and     No.054/088/IV/
              2016/PKS/DIR/KRD.AGR.RTL tanggal 18 April                          2016/PKS/DIR/KRD.AGR.RTL, dated April 18,
              2016, Bank mengadakan perjanjian kerjasama                         2016, the Bank entered into a 5 (five) years
              untuk jangka waktu 5 (lima) tahun dengan                           cooperation agreement with the Government of
              Pemerintah Provinsi Jawa Timur untuk                               East Java Province to distribute revolving funds
              menyalurkan dana bergulir sebagai tambahan                         for additional working capital for Small and
              modal kerja bagi usaha kecil, menengah dan                         Medium Scale Enterprises and Cooperatives in
              koperasi dengan tujuan untuk mensukseskan                          order to assist the Government of East Java
              Program Pemerintah Provinsi Jawa Timur dalam                       Province’s program involving the improvement of
              rangka meningkatkan kegiatan Usaha Ekonomi                         Small and Medium Scale Enterprises and
              Produktif Usaha Kecil Menengah dan Koperasi                        Cooperatives and currently in processing for loan
              dan saat ini sedang dalam proses perpanjangan                      period extension.
              jangka waktu pinjaman.
        c.    Kementerian Koperasi dan Usaha Kecil dan                     c.    Ministry of Cooperatives and Small and Medium
              Menengah                                                           Scale Enterprises
               Bank sebagai penyalur dana bergulir yang                          Bank as a channeling of revolving funds sourced
               bersumber dari dana APBN mengadakan                               from APBN funds with Cooperation Agreement
               Perjanjian Kerjasama dengan Kementerian                           with Ministry of Cooperatives and Small and
               Koperasi dan Usaha Kecil dan Menengah untuk                       Medium Enterprises for Small and Micro
               Program Pengembangan Pengusaha Mikro dan                          Entrepreneur Development Program, through:
               Kecil, melalui:
             -   Penguatan modal Koperasi Simpan Pinjam                           -     Strengthening the capital of cooperatives in
                 (KSP) sektor agrobisnis untuk mensukseskan                             the agribusiness sector in order to
                 program Pemerintah yang meliputi penyaluran,                           successfully implement the improvement
                 pemanfaatan, pengembalian serta terwujudnya                            programs for the members of cooperatives
                 peningkatan dan pengembangan usaha                                     and society based on agreement dated
                 agrobisnis anggota koperasi dan masyarakat                             January 19, 2004 for a period of 25 years.
                 berdasarkan perjanjian tanggal 19 Januari
                 2004 dengan jangka waktu 25 tahun.




                                                            137
Page 677
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)

 28.   PENERUSAN KREDIT (lanjutan)                               28.    CHANNELING LOANS (continued)
       c.   Kementerian Koperasi dan Usaha Kecil dan                    c.       Ministry of Cooperatives and Small and Medium
            Menengah (lanjutan)                                                  Scale Enterprises (continued)
            -   Program Penyediaan Modal dan Padanan                         -      Initial capital and matching fund program for
                (MAP) Awal bagi usaha kecil, menengah                               small and medium enterprise and cooperative
                dan koperasi melalui KSP/USP koperasi                               through KSP/USP cooperative with the goal
                dengan tujuan mengembangkan usaha                                   of developing UKM in the area that have not
                UKM pada sentra yang belum tersedia                                 been adequately provided financing under the
                pembiayaan secara memadai berdasarkan                               agreement dated November 8, 2003 and its
                perjanjian tanggal 8 November 2003 dan                              expiration based on agreement of both
                perjanjian ini berakhir atas kesepakatan                            parties.
                kedua belah pihak.
       d.   Kementerian Keuangan Republik Indonesia                    d.    Finance Ministry of the Republic of Indonesia
            Pada tanggal 4 Agustus 1993, Bank                                On August 4, 1993, the Bank entered into a
            mengadakan perjanjian kerjasama dengan                           cooperation agreement with the Finance
            Departemen Keuangan Republik Indonesia                           Department of the Republic of Indonesia. Under
            untuk meneruskan pinjaman Pemerintah dari                        this agreement, the Bank will distribute
            Islamic Development Bank (IDB) dalam rangka                      Government loans from the Islamic Development
            membiayai proyek Rumah Sakit Islam                               Bank (IDB) to finance the development of the
            Surabaya.                                                        Surabaya Islamic Hospital.
       e.   Yayasan Dana Sejahtera Mandiri                             e.    Dana Sejahtera Mandiri Foundation
            Pada tanggal 19 Juli 1999, Bank mengadakan                       On July 19, 1999, the Bank entered into
            perjanjian kerjasama dengan para pihak, yaitu:                   cooperation agreements with the following parties:
            1) Kantor Menteri Negara Koordinator Bidang                      1) The Coordinating Minister for People's Welfare
               Kesra dan Taskin, Departemen Pertanian                           and Poverty Eradication Division, the
               dan Yayasan Dana Sejahtera Mandiri                               Agriculture Department and Dana Sejahtera
               (Yayasan       Damandiri)       -      untuk                     Mandiri Foundation (Yayasan Damandiri) - to
               menyelenggarakan      kredit   pengentasan                       manage loans for poverty eradication through
               kemiskinan melalui pengembangan usaha                            agribusiness development involving loans in
               agrobisnis dengan Kredit Taskin Agribisnis.                      the form of Kredit Taskin Agribisnis.
            2) Kantor Menteri Negara Koordinator Bidang                      2) The Coordinating Minister for People's Welfare
               Kesra dan Taskin, Departemen Koperasi                            and Poverty Eradication Division, the
               Pengusaha Kecil dan Menengah dan                                 Cooperatives Department and Small and
               Yayasan Dana Sejahtera Mandiri (Yayasan                          Medium Scale Enterprises Division and the
               Damandiri) - untuk menyelenggarakan kredit                       Dana Sejahtera Mandiri Foundation (Yayasan
               pengentasan kemiskinan melalui Usaha                             Damandiri) - to manage loans for poverty
               Kecil, Menengah dan Koperasi (UKMK)                              eradication through Small and Medium Scale
               dengan Kredit Taskin UKMK.                                       Enterprises and Cooperatives (Usaha Kecil,
                                                                                Menengah dan Koperasi-UKMK) involving
                                                                                loans in the form of Kredit Taskin UKMK.
            3) Kantor Menteri Negara Koordinator Bidang                      3) The Coordinating Minister for People's Welfare
               Kesra dan Taskin, Departemen Perindustrian                       and Poverty Eradication Division, the Industrial
               dan Perdagangan dan Yayasan Dana                                 and Trading Department and Dana Sejahtera
               Sejahtera Mandiri (Yayasan Damandiri) -                          Mandiri Foundation (Yayasan Damandiri) - to
               untuk menyelenggarakan kredit pengentasan                        manage loans for poverty eradication through
               kemiskinan melalui pengembangan industri                         small scale industry and home industry
               kecil dan kerajinan rakyat dengan kredit                         development involving loans in the form of
               Taskin Industri Kecil dan Kerajinan Rakyat                       Kredit Taskin Industri Kecil dan Kerajinan
               (Taskin Inkra).                                                  Rakyat (Taskin Inkra).




                                                           138
Page 678
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 28.   PENERUSAN KREDIT (lanjutan)                                 28.     CHANNELING LOANS (continued)
       f.   Dinas Koperasi dan Pengusaha Kecil dan                        f.    Cooperatives and Small and Medium Enterprises
            Menengah Provinsi Jawa Timur                                        Department of East Java Province
            Bank mengadakan perjanjian kerjasama untuk                          Bank entered into a cooperation agreement for a
            jangka waktu 5 tahun dengan Dinas Koperasi                          period of 5 years with the Cooperatives and Small
            Pengusaha Kecil dan Menengah Provinsi Jawa                          and Medium Enterprises Department of East Java
            Timur untuk menyalurkan dana bergulir yang                          Province to distribute revolving funds from the
            bersumber dari Anggaran Pendapatan Belanja                          Regional Income and Expenditures Budget
            Daerah (APBD) Propinsi Jawa Timur dengan                            (Anggaran Pendapatan Belanja Daerah - APBD)
            tujuan     untuk    mensukseskan     Program                        of East Java Province in order to provide
            Pemerintah Provinsi Jawa Timur yang meliputi                        assistance to the Government of East Java
            penyaluran kredit dan penggunaan dana,                              Province’s programs for loan distribution and
            pembinaan, pemantauan dan pengawasan,                               utilization, directing, monitoring, supervising and
            pengembalian serta pemanfaatan dana bergulir                        repayment and utilization of revolving funds (dana
            oleh koperasi. Berdasarkan amandemen                                bergulir) by cooperatives (Koperasi). Based on the
            perjanjian tanggal 6 Desember 2013, perjanjian                      amendment agreement on December 6, 2013, the
            jatuh tempo pada tanggal 16 Desember 2016.                          agreement was matured on December 16, 2016.
            Pada tanggal 10 Agustus 2016, telah dilakukan                       On August 10, 2016, the agreement has been
            perpanjangan dengan jangka waktu 3 (tiga)                           extended for a period of 3 (three) years based on
            tahun berdasarkan perjanjian No.518/15709/                          agreement         No.518/15709/108.5/2016       and
            108.5/2016     dan    No.054/210/SP/DIR/KRD.                        No.054/210/SP/DIR/KRD.AGR.RTL.
            AGR.RTL.
            Pada tanggal 18 Oktober 2019 telah dilakukan                        On October 18, 2019, the agreement has been
            perpanjangan dengan jangka waktu 5 (lima)                           extended for a period of 5 (five) years based on
            tahun         berdasarkan          perjanjian                       agreement      No.518/19535/115.5/2019       and
            No.518/19535/115.5/2019                  dan                        058/245/PKS/DIR/KMRP.
            058/245/PKS/DIR/KMRP.
       g.   Departemen Kehutanan         dan   Perkebunan                  g. Forestry and Plantation                Department        of    the
            Republik Indonesia                                                Republic of Indonesia
            Pada tanggal 23 Juli 1999, Bank mengadakan                          On July 23, 1999, the Bank entered into a
            kerjasama dengan Departemen Kehutanan dan                           cooperation agreement with the Forestry and
            Perkebunan    Republik   Indonesia  sebagai                         Plantation Department of the Republic of
            penyalur Kredit Usaha Hutan Rakyat yang                             Indonesia for distribution of loans for the purpose
            bertujuan untuk pengembangan Usaha Hutan                            of the People’s Forestry Business Development
            Rakyat.                                                             activities.
       h.   Yayasan Abadi Karya Bhakti                                     h. Abadi Karya Bhakti Foundation
            Pada tanggal 9 Januari             1999, Bank                       On January 9, 1999, the Bank entered into a
            mengadakan perjanjian kerjasama dengan                              cooperation agreement with the Abadi Karya
            Yayasan Abadi Karya Bhakti dan Menteri                              Bhakti Foundation and the Coordinating State
            Negara Koordinator Bidang Kesra dan Taskin                          Minister of People's Welfare and Poverty
            serta     Departemen         Pertanian   untuk                      Eradication Division and the Agriculture
            menyelenggarakan Kredit Taskin Agribisnis.                          Department to manage loans involving Kredit
            Jangka waktu kerjasama terhitung sejak                              Taskin Agribisnis for the period from the signing of
            kesepakatan ini ditandatangani sampai dengan                        the agreement until repayment of all loans.
            seluruh kredit yang disalurkan dilunasi.




                                                            139
Page 679
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

 28.   PENERUSAN KREDIT (lanjutan)                                   28.    CHANNELING LOANS (continued)

       i.    Dinas Peternakan Provinsi Jawa Timur                           i.   Livestock Division of East Java Province (Dinas
                                                                                 Peternakan Propinsi Jawa Timur)
             Berdasarkan            perjanjian          No.                      Based on an agreement No.900/8176/122.5/2020
             900/8176/122.5/2020                        dan                      and No.059/161/SP/DIR/KMRP dated September
             No.059/161/SP/DIR/KMRP          tanggal     21                      21, 2020, the Bank entered into a cooperation
             September 2020, Bank mengadakan perjanjian                          agreement for a period of 3 (three) years with the
             kerjasama untuk jangka waktu 3 (tiga) tahun                         Livestock Division of East Java Province in order
             dengan Dinas Peternakan Provinsi Jawa Timur                         to provide assistance to the Government of East
             dengan tujuan untuk mensukseskan Program                            Java Province in its program for loan distribution
             Pemerintah Provinsi Jawa Timur yang meliputi                        and utilization, directing, monitoring, supervising
             penyaluran pinjaman dan penggunaan dana,                            and repayment and utilization of revolving funds
             pembinaan, pemantauan, pengawasan dan                               by Village Union       - KUD for Milk Union in
             pengembalian serta pemanfaatan dana bergulir                        connection with the procurement of equipment to
             oleh Koperasi Unit Desa (KUD) untuk Koperasi                        improve the quality of milk produced by farmers.
             Persusuan dalam rangka pengadaan peralatan                          In accordance with this agreement, the Bank acts
             peternakan guna perbaikan kualitas susu sapi                        as agent for revolving funds from the Regional
             perah rakyat. Dalam perjanjian tersebut, Bank                       Income and Expenditures Budget of the East Java
             sebagai    penyalur   dana     bergulir modal                       Province Livestock Sector Division.
             pengadaan     peralatan    peternakan    untuk
             perbaikan kualitas susu bagi KUD untuk
             Koperasi Persusuan yang bersumber dari APBD
             Provinsi Jawa Timur sub sektor peternakan.
            Rincian saldo kredit kelolaan berdasarkan                            The details of balances of channeling loans based
            penyedia dana adalah sebagai berikut:                                on the sources of funds (lenders) are as follows:
                                                     31 Desember/            31 Desember/
                                                     December 31,            December 31,
                                                         2023                    2022
            Bank Indonesia                                 402.524                   402.524                                     Bank Indonesia
            Pemerintah Provinsi Jawa Timur                 122.698                   129.443                  Government of East Java Province
            Kementrian Koperasi dan                                                                                 The Ministry of Cooperatives
             Usaha Kecil dan Menengah                       54.451                    55.301              Small and Medium Scale Enterprises
            Yayasan Dana Sejahtera Mandiri                  15.942                    15.942                 Dana Sejahtera Mandiri Foundation
            Departemen Kehutanan dan                                                                         Forestry and Plantation Department
             Perkebunan Republik Indonesia                  15.326                    15.326                      of the Republic of Indonesia
            Dinas Koperasi dan Pengusaha                                                              Department of Cooperatives and Small and
              Kecil dan Menengah                            12.826                    13.031                               Medium Enterprises
                                                                                                                         Department of Finance
            Departemen Keuangan Republik Indonesia           8.512                     8.606                      of the Republic of Indonesia
            Yayasan Abadi Karya Bhakti                       6.038                     6.038                     Abadi Karya Bhakti Foundation
            Dinas Peternakan Provinsi Jawa Timur             2.098                     2.108            Livestock Division of East Java Province
            Jumlah                                         640.415                   648.319                                               Total




                                                             140
Page 680
                                                                           The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)


 28.    PENERUSAN KREDIT (lanjutan)                                         28.      CHANNELING LOANS (continued)
            Rincian saldo kredit kelolaan berdasarkan sektor                             The details of balances of channeling loans based
            ekonomi adalah sebagai berikut:                                              on economic sector are as follows:
                                                          31 Desember/               31 Desember/
                                                          December 31,               December 31,
                                                              2023                       2022
             Jasa kemasyarakatan dan sosial budaya               524.334                     526.533                Social culture and community services
             Pertanian, perburuan dan kehutanan                   42.669                      44.020                       Agriculture. hunting and forestry
             Perdagangan besar dan eceran                         35.283                      36.861                                   Wholesale and retail
             Jasa kesehatan dan kegiatan sosial                    8.573                       8.701                    Health service and social activities
             Penyediaan akomodasi makan dan minum                  8.483                       9.198           Provision of food and drink accommodation
             Industri pengolahan                                   5.965                       6.679                                    Processing industry
             Kegiatan yang belum jelas batasannya                  5.896                       5.941                                    Undefined activities
             Perikanan                                             5.404                       6.367                                                Fishery
             Perantara keuangan                                    3.196                       3.308                                 Financial intermediary
             Jasa perorangan melayani rumah tangga                   321                         415            Individual service which serve households
             Transportasi, perdagangan dan komunikasi                205                         210           Transportation, trading and communication
             Real estate, usaha persewaan dan jasa                    51                          51            Real estate, rental and business services
             Konstruksi                                               27                          27                                           Construction
             Pertambangan dan penggalian                               8                           8                                    Mining and quarying
             Jumlah                                              640.415                     648.319                                                  Total


  29.   KOMITMEN DAN KONTINJENSI                                              29.      COMMITMENTS AND CONTINGENCIES
        Bank memiliki tagihan dan liabilitas komitmen dan                              The Bank has receivables and liabilities involving
        kontinjensi dengan rincian sebagai berikut:                                    commitments and contingencies as follows:
                                                        31 Desember/                31 Desember/
                                                        December 31,                December 31,
                                                            2023                        2022
        KOMITMEN                                                                                                                        COMMITMENTS
        Tagihan komitmen                                                                                                      Commitment receivables
        Rupiah:                                                                                                                                  Rupiah:
         Pembelian spot & derivatif                                 -                      156.070                      Purchase of spot and derivative
         Lainnya                                              874.645                      909.159                                              Others
                                                              874.645                    1.065.229
        Liabilitas komitmen                                                                                                       Commitment liability
        Rupiah                                                                                                                                   Rupiah:
          Fasilitas kredit kepada debitur                                                                                    Unused loan commitments
           yang belum digunakan                              3.770.265                   3.399.512                                granted to debtors
        Total liabilitas komitmen, neto                      2.895.620                   2.334.283                       Total commitment liabilities, net
        KONTINJENSI                                                                                                                   CONTINGENCIES
        Tagihan kontinjensi                                                                                                     Contingent receivables
        Rupiah:                                                                                                                                  Rupiah:
          Pendapatan bunga dalam penyelesaian                  82.966                      119.108               Interest income on past due accounts
          Lainnya                                                  13                           13                                              Others
                                                               82.979                      119.121
        Liabilitas kontinjensi                                                                                                     Contingent liabilities
        Rupiah:                                                                                                                                   Rupiah
          Bank garansi yang diberikan                         653.383                      973.063                              Bank guarantees issued
        Mata uang asing:                                                                                                              Foreign currencies:
          Bank garansi yang diberikan                          46.191                       46.703                              Bank guarantees issued
                                                              699.574                    1.019.766
        Total liabilitas kontinjensi, neto                    616.595                      900.645                         Total contingent liabilities, net
        Total liabilitas komitmen dan                                                                                Total commitment and contingent
         kontinjensi, neto                                   3.512.215                   3.234.928                                       liabilities, net

        Pada tanggal 31 Desember 2023 dan 2022, Bank tidak                            As of December 31, 2023 and 2022, the Bank has
        mempunyai tagihan dan liabilitas komitmen dan                                 no outstanding commitment and contingent
        kontinjensi kepada pihak berelasi.                                            receivables and liabilities involving related parties.
                                                                  141
Page 681
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)

  30.   PENDAPATAN BUNGA DAN SYARIAH                                  30.     INTEREST AND SHARIA INCOME

                                               31 Desember/                 31 Desember/
                                               December 31,                 December 31,
                                                   2023                         2022

        Pihak berelasi (Catatan 39)                                                                                 Related parties (Note 39)
          Kredit yang diberikan                       13.961                          7.926                                            Loans
          Margin dan pendapatan bagi hasil                 7                            126               Margin and profit-sharing revenue
        Pihak ketiga                                                                                                             Third parties
          Kredit yang diberikan                    4.837.915                    4.261.412                                              Loans
          Penempatan pada Bank Indonesia                                                                   Placements with Bank Indonesia
           dan bank lain                           1.806.519                      932.818                                  and other banks
          Surat berharga                                                                                                Marketable securities
           Biaya perolehan diamortisasi              423.992                    1.392.992                                   Amortised cost
          Margin dan pendapatan bagi hasil           157.455                      135.829                 Margin and profit-sharing revenue
          Provisi                                     90.157                      110.971                                           Provision
          Sertifikat Bank Indonesia                   23.226                       17.442                     Certificates of Bank Indonesia
          Lainnya                                      4.052                       23.135                                             Others
        Jumlah                                     7.357.284                    6.882.651                                                 Total




  31.   BEBAN BUNGA DAN SYARIAH                                     31.     INTEREST AND SHARIA EXPENSE

                                               December 31,                 December 31,
                                                   2023                         2022

        Deposito berjangka                          1.669.282                    1.432.248                                     Time deposits
        Tabungan                                      280.153                      264.782                                 Savings accounts
        Giro                                          200.924                      221.779                                  Current accounts
        Repo                                          117.839                       30.291                   Premium on marketable securities
        Simpanan dari bank lain                        38.680                        4.589                         Deposits from other banks
        Pinjaman yang diterima                          8.543                       10.357                                        Borrowings
        Beban bunga kredit                                763                        1.549                             Loan interest expense
        Jumlah                                      2.316.184                    1.965.595                                              Total

        Beban bunga kepada pihak berelasi diungkapkan                       Interest expense involving related parties is disclosed
        pada (Catatan 40).                                                  in (Note 40).

  32.   PENDAPATAN OPERASIONAL LAINNYA                              32.     OTHER OPERATING INCOME

                                                   2023                        2022
        Administrasi giro, tabungan                                                                   Current accounts, savings and deposits
         dan deposito                                193.996                      184.480                                 administration fees
        Penerimaan kembali kredit hapus buku         127.264                       56.653                       Collection of loans written-off
        Administrasi kredit                           30.880                       42.511                           Loan administration fees
        Provisi dan komisi selain dari                                                                           Fees and commissions from
         kredit yang diberikan                        22.093                       11.105                                  other than loans
        Lainnya                                      274.187                      238.820                                              Others
        Jumlah                                       648.420                      533.569                                                Total




                                                              142
Page 682
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)


  33.   PENYISIHAN KERUGIAN PENURUNAN NILAI                            33.      PROVISION FOR IMPAIRMENT                         LOSSES         ON
        ATAS ASET KEUANGAN                                                      FINANCIAL ASSETS

                                                      2023                          2022
        Kredit yang diberikan                                                                                                               Loans
           Modal kerja                                   349.480                        267.675                                   Working capital
           Konsumsi                                      144.776                         52.364                                    Consumption
           Investasi                                     181.587                         67.715                                      Investment
                                                         675.843                        387.754
        Aset keuangan lainnya                                                                                                Other financial assets
        Penempatan pada Bank Indonesia                                                                             Placement with Bank Indonesia
         dan bank lain                                        1.872                        1.391                                 and other banks
        Giro pada bank lain                                     636                          203                 Current accounts with other banks
        Surat berharga                                          111                      (5.544)                              Marketable securities
        Estimasi kerugian komitmen                                                                               Estimated losses on commitments
         dan kontinjensi                                     430                          2.903                                and contingencies
        Aset lain-lain                                    15.244                         17.952                                       Other assets
        Jumlah                                           694.136                        404.659                                               Total

  34.   BEBAN TENAGA              KERJA       DAN   TUNJANGAN             34.     SALARIES            AND         EMPLOYEE             BENEFITS
        KARYAWAN                                                                  EXPENSES

                                                       2023                          2022
        Gaji pegawai                                     547.842                       496.631                                    Employee salaries
        Bonus pegawai                                    367.526                       385.706                                   Employee bonuses
        Tambahan penghasilan pegawai                     234.683                       220.933                     Additional income for employees
        Sewa tenaga kerja                                132.028                       139.896                                          Outsourcing
        Asuransi dan iuran dana pensiun                  130.390                       143.663           Insurance and pension fund contributions
        Tunjangan pajak penghasilan pegawai              127.005                        85.344                Tax allowances - employees’ salaries
        Pendidikan dan latihan                            94.913                        76.883                                Education and training
        Imbalan kerja                                     38.721                        55.532                                     Employee benefit
        Pengobatan                                        35.560                        26.241                                               Medical
        Gaji Direksi                                      13.556                         8.894                                    Directors’ salaries
        Honorarium Dewan Komisaris                         9.218                         6.098                            Commissioners’ honoraria
        Rekreasi dan olahraga                              8.303                         5.808                                  Recreation and sport
        Tambahan penghasilan Direksi                       3.877                         4.171                Additional compensation for Directors
        Perumahan Direksi                                  2.220                         1.976                                 Housing for Directors
        Tambahan penghasilan Komisaris                     1.146                         2.217         Additional compensation for Commissioners
        Lainnya                                           15.655                        14.705                                                Others
        Jumlah                                         1.762.643                     1.674.698                                                 Total




                                                                 143
Page 683
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


  35.   BEBAN UMUM DAN ADMINISTRASI                                  35.     GENERAL AND ADMINISTRATIVE EXPENSES

                                                       2023                     2022
        Premi asuransi pertanggungan lainnya              207.924                   220.083                           Other insurance premiums
        Amortisasi beban ditangguhkan                     180.989                   239.247                    Amortization of deferred charges
        Jasa otomasi                                      157.885                   142.764                                 Automation services
        Penyusutan aset tetap (Catatan 15)                150.752                   164.880              Depreciation of fixed assets (Note 15)
        Sewa                                               81.652                    77.950                                               Rental
        Promosi                                            75.260                    49.292                                            Promotion
        Perjalanan dinas                                   57.632                    62.796                              Official/business travel
        Pemeliharaan                                       55.911                    56.922                                         Maintenance
        Alat tulis dan barang cetak                        54.360                    48.889                     Stationery and printed materials
        Listrik, air dan telekomunikasi                    37.932                    35.337           Electrical, water and telecommunications
        Sumbangan                                          25.828                    31.568                                            Donations
        Pajak lainnya                                      22.101                    18.126                                          Other taxes
        Pengawasan, pemeriksaan dan jasa tenaga ahli       19.498                    20.273         Supervision, audit and professional services
        Tanggung jawab sosial dan lingkungan               17.663                    20.135               Social and environment responsibility
        Keamanan                                            8.538                     9.610                                              Security
        Surat Dinas                                         4.464                     3.599                                         Mail Service
        Penagihan                                           1.281                     1.329                                            Collection
        Pajak Reklame                                       1.251                     1.531                                       Advertising tax
        Pajak Bumi dan Bangunan (PBB)                       1.168                     1.169                    Land and building tax fees (PBB)
        Pajak kendaraan bermotor                              679                       656                                   Motor Vehicle Tax
        Koran dan Majalah                                     387                       430                           Newspaper and Magazine
        Bursa Efek                                            278                       275                                     Stock Exchange
        Pajak Penghasilan                                      15                       112                                          Income Tax
        Lainnya                                            19.539                    22.415                                               Others
        Jumlah                                          1.182.987                 1.229.388                                                 Total




 36.    BEBAN LAINNYA                                               36.     OTHER EXPENSES

                                                       2023                    2022
        Tanda mata, hadiah dan umum                       97.460                    86.316                        Souvenirs, gifts and general
        Kliring dan transfer                              53.656                    59.476                              Clearing and transfers
        Rapat dan jamuan tamu                             24.394                    15.423                        Meetings and entertainment
        Penelitian dan pengembangan                        7.901                     9.833                         Research and development
        Kegiatan keagamaan                                 3.904                     3.009                                  Religious activities
        Provisi, komisi dan fee                               32                        10                       Provision, commision and fee
        Lainnya                                            7.366                    26.987                                              Others
        Jumlah                                           194.713                   201.054                                                Total




                                                           144
Page 684
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


 37.   PENDAPATAN NON OPERASIONAL                                    37.      NON OPERATING INCOME

                                                  2023                            2022
        Fee jasa pelayanan pajak                      6.444                           6.084                                     Tax service fees
        Keuntungan atas penjualan aset tetap          5.608                           5.274                      Gain on sale of fixed asset - net
        Keuntungan selisih kurs                       2.390                               -                            Gain on foreign exchange
        Keuntungan penjualan efek-efek neto           8.698                           2.757                       Gain on sale of securities - net
        Lainnya                                      33.901                         158.513                                                Others
                                                     57.041                         172.628


 38.   BEBAN NON OPERASIONAL LAINNYA                                 38.      NON OPERATING EXPENSE

       Pada tanggal 31 Desember 2023 dan 2022, saldo                          As of December 31, 2023 and 2022, the balance of
       beban non operasional lainnya masing-masing                            non operating expense amounted Rp19,339 and
       sebesar Rp19.339 dan Rp83.405.                                         Rp83,405, respectively


 39.   LABA PER SAHAM DASAR                                         39.      BASIC EARNINGS PER SHARE

                                                  December 31,             December 31,
                                                      2023                     2022
       Laba untuk perhitungan laba                                                                                  Income for computation of
        per saham dasar                                1.470.105                 1.542.824                          basic earnings per share
       Rata-rata tertimbang jumlah saham          15.015.498.082            15.015.498.082                 Weighted average number of shares
       Laba per saham dasar                                                                                         Basic earnings per share
        (dalam Rupiah penuh)                                97,91                    102,75                                  (in full Rupiah)




                                                            145
Page 685
                                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                            (Expressed in millions of Rupiah, unless otherwise stated)


  40.   TRANSAKSI DENGAN PIHAK BERELASI                                            40.       TRANSACTIONS WITH RELATED PARTIES
        Dalam kegiatan normal usaha, Bank melakukan                                          In the normal course of business, Bank enters into
        transaksi dengan pihak berelasi karena hubungan                                      certain transactions with parties which are related
        kepemilikan dan/atau kepengurusan. Semua transaksi                                   to the management and/or owned by the same
        dengan pihak-pihak berelasi telah dilakukan dengan                                   ultimate shareholder. All transactions with related
        kebijakan dan syarat yang telah disepakati bersama.                                  parties have met the agreed terms and conditions.
                                                     Sifat dari hubungan/                 Sifat dari transaksi/
        Pihak berelasi                              Nature of relationship               Nature of transactions                                 Related parties
        Pemerintah Provinsi Jawa Timur          Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of East Java Province
        Pemerintah Kota Surabaya                Pemegang saham/Shareholder         Penempatan dana/Fund placement                 Government of Surabaya City
        Pemerintah Kabupaten Malang             Pemegang saham/Shareholder         Penempatan dana/Fund placement               Government of Malang Regency
        Pemerintah Kabupaten Jember             Pemegang saham/Shareholder         Penempatan dana/Fund placement               Government of Jember Regency
        Pemerintah Kota Pasuruan                Pemegang saham/Shareholder         Penempatan dana/Fund placement                 Government of Pasuruan City
        Pemerintah Kabupaten Banyuwangi         Pemegang saham/Shareholder         Penempatan dana/Fund placement          Government of Banyuwangi Regency
        Pemerintah Kabupaten Probolinggo        Pemegang saham/Shareholder         Penempatan dana/Fund placement           Government of Probolinggo Regency
        Pemerintah Kabupaten Bondowoso          Pemegang saham/Shareholder         Penempatan dana/Fund placement           Government of Bondowoso Regency
        Pemerintah Kabupaten Sidoarjo           Pemegang saham/Shareholder         Penempatan dana/Fund placement              Government of Sidoarjo Regency
        Pemerintah Kabupaten Tuban              Pemegang saham/Shareholder         Penempatan dana/Fund placement                Government of Tuban Regency
        Pemerintah Kabupaten Situbondo          Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of Situbondo Regency
        Pemerintah Kabupaten Kediri             Pemegang saham/Shareholder         Penempatan dana/Fund placement                Government of Kediri Regency
        Pemerintah Kabupaten Lumajang           Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of Lumajang Regency
        Pemerintah Kabupaten Lamongan           Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of Lamongan Regency
        Pemerintah Kabupaten Nganjuk            Pemegang saham/Shareholder         Penempatan dana/Fund placement              Government of Nganjuk Regency
        Pemerintah Kabupaten Mojokerto          Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of Mojokerto Regency
        Pemerintah Kabupaten Sampang            Pemegang saham/Shareholder         Penempatan dana/Fund placement             Government of Sampang Regency
        Pemerintah Kota Malang                  Pemegang saham/Shareholder         Penempatan dana/Fund placement                   Government of Malang City
        Pemerintah Kabupaten Pasuruan           Pemegang saham/Shareholder         Penempatan dana/Fund placement             Government of Pasuruan Regency
        Pemerintah Kabupaten Bangkalan          Pemegang saham/Shareholder         Penempatan dana/Fund placement            Government of Bangkalan Regency
        Pemerintah Kabupaten Gresik             Pemegang saham/Shareholder         Penempatan dana/Fund placement                Government of Gresik Regency
        Pemerintah Kota Mojokerto               Pemegang saham/Shareholder         Penempatan dana/Fund placement                 Government of Mojokerto City
        Pemerintah Kabupaten Pacitan            Pemegang saham/Shareholder         Penempatan dana/Fund placement               Government of Pacitan Regency
        Pemerintah Kota Batu                    Pemegang saham/Shareholder         Penempatan dana/Fund placement                      Government of Batu City
        Pemerintah Kabupaten Ngawi              Pemegang saham/Shareholder         Penempatan dana/Fund placement                Government of Ngawi Regency
        Pemerintah Kabupaten Jombang            Pemegang saham/Shareholder         Penempatan dana/Fund placement             Government of Jombang Regency
        Pemerintah Kabupaten Madiun             Pemegang saham/Shareholder         Penempatan dana/Fund placement               Government of Madiun Regency
        Pemerintah Kabupaten Pamekasan          Pemegang saham/Shareholder         Penempatan dana/Fund placement           Government of Pamekasan Regency
        Pemerintah Kabupaten Tulungagung        Pemegang saham/Shareholder         Penempatan dana/Fund placement          Government of Tulungagung Regency
        Pemerintah Kabupaten Blitar             Pemegang saham/Shareholder         Penempatan dana/Fund placement                 Government of Blitar Regency
        Pemerintah Kabupaten Ponorogo           Pemegang saham/Shareholder         Penempatan dana/Fund placement             Government of Ponorogo Regency
        Pemerintah Kabupaten Trenggalek         Pemegang saham/Shareholder         Penempatan dana/Fund placement           Government of Trenggalek Regency
        Pemerintah Kabupaten Magetan            Pemegang saham/Shareholder         Penempatan dana/Fund placement              Government of Magetan Regency
        Pemerintah Kabupaten Bojonegoro         Pemegang saham/Shareholder         Penempatan dana/Fund placement           Government of Bojonegoro Regency
        Pemerintah Kota Probolinggo             Pemegang saham/Shareholder         Penempatan dana/Fund placement               Government of Probolinggo City
        Pemerintah Kota Blitar                  Pemegang saham/Shareholder         Penempatan dana/Fund placement                     Government of Blitar City
        Pemerintah Kota Madiun                  Pemegang saham/Shareholder         Penempatan dana/Fund placement                   Government of Madiun City
        Pemerintah Kota Kediri                  Pemegang saham/Shareholder         Penempatan dana/Fund placement                     Government of Kediri City
        Pemerintah Kabupaten Sumenep            Pemegang saham/Shareholder         Penempatan dana/Fund placement             Government of Sumenep Regency
        Pemerintah Kabupaten Bojonegoro         Pemegang saham/Shareholder            Kredit yang diberikan/Loans           Government of Bojonegoro Regency
        Pemerintah Kabupaten Lamongan           Pemegang saham/Shareholder            Kredit yang diberikan/Loans            Government of Lamongan Regency
        Pemerintah Kabupaten Malang             Pemegang saham/Shareholder            Kredit yang diberikan/Loans               Government of Malang Regency

        PT Bank Perkreditan Rakyat Jawa Timur       Dimiliki oleh pemegang            Kredit yang diberikan/Loans        PT Bank Perkreditan Rakyat Jawa Timur
                                                saham akhir yang sama/Owned        Penempatan dana/Fund placement
                                                  by the ultimate shareholder

        Dewan Komisaris, Direksi                    Karyawan kunci/Key               Simpanan nasabah/Deposits                         Board of Commissioners.
        dan pejabat eksekutif                      management personnel                   from customers                                     Board of Directors
                                                   Pengurus/Management                   Beban tenaga kerja/                              and executive officer s
                                                                                        Personnel expenses
        RKUD Kabupaten Lamongan                     Dimiliki oleh pemegang            Kredit yang diberikan/Loans                  RKUD Kabupaten Lamongan
                                                saham akhir yang sama/Owned        Penempatan dana/Fund placement
                                                  by the ultimate shareholder

        Pemda Kabupaten Lamongan                    Dimiliki oleh pemegang            Kredit yang diberikan/Loans                 Pemda Kabupaten Lamongan
                                                saham akhir yang sama/Owned        Penempatan dana/Fund placement
                                                  by the ultimate shareholder




                                                                             146
Page 686
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)


40.   TRANSAKSI DENGAN PIHAK BERELASI (lanjutan)                  40.     TRANSACTIONS              WITH        RELATED           PARTIES
                                                                          (continued)

      Saldo aset produktif, simpanan, pinjaman yang                       The outstanding balances of earning assets, deposits,
      diterima dan komitmen dan kontinjensi dari pihak                    borrowings and commitments and contingencies with
      berelasi adalah sebagai berikut:                                    related parties were as follows:

                                                       2023                     2022
        ASET                                                                                                                           ASSETS
        Kredit yang diberikan dan pembiayaan
                                                                                                        Loans and sharia financing (Note 11)
         syariah (Catatan 11)
         Pinjaman manajemen kunci                        100.611                   104.192                      Loans to key managements
         PT Bank Perkreditan Rakyat Jawa Timur                 -                    24.851          PT Bank Perkreditan Rakyat Jawa Timur
         RKUD Kabupaten Lamongan                          30.914                         -                     RKUD Kabupaten Lamongan
         Pemda Kabupaten Lamongan                         46.220                         -                    Pemda Kabupaten Lamongan
         Lain-lain                                         7.103                     5.828                                          Others
        Jumlah                                           184.848                   134.871                                              Total
        Persentase terhadap jumlah aset                    0,18%                     0,13%                         Percentage to total assets
        LIABILITAS                                                                                                               LIABILITIES
        Simpanan dari nasabah (Catatan 18)             12.644.538               15.295.405                  Deposits from customers (Note 18)
        Persentase terhadap jumlah liabilitas              14,15%                   17,05%                        Percentage to total liabilities

        Simpanan dari bank lain (Catatan 19)                                                             Deposits from other banks (Note 19)
          PT Bank Perkreditan Rakyat Jawa Timur        12.648.302                  141.996          PT Bank Perkreditan Rakyat Jawa Timur
        Jumlah                                         12.648.302                  141.996                                               Total
        Persentase terhadap jumlah liabilitas              14,16%                    0,16%                       Percentage to total liabilities

        LABA RUGI DAN PENGHASILAN                                                                                   PROFIT OR LOSS AND
         KOMPREHENSIF LAIN                                                                              OTHER COMPREHENSIVE INCOME
        Pendapatan bunga (Catatan 30)                       13.968                     8.052                      Interest income (Note 30)
        Persentase terhadap jumlah                                                                                       Percentage to total
         pendapatan bunga dan syariah                         0,19%                    0,12%                   interest and sharia income

        Beban bunga dan syariah (Catatan 31)             459.124                   471.882              Interest and sharia expenses (Note 31)
        Persentase terhadap jumlah                                                                                  Percentage to total interest
         beban bunga dan syariah                            19,82%                     24,01%                           and sharia expenses



       Komitmen dan kontinjensi                                            Commitments and contingencies

       Tidak terdapat saldo komitmen dan kontinjensi kepada                There were no commitments and contingencies
       pihak berelasi untuk tahun yang berakhir pada                       involving related parties as of December 31, 2023 and
       tanggal-tanggal 31 Desember 2023 dan 2022.                          2022.




                                                            147
Page 687
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


  40.   TRANSAKSI DENGAN PIHAK BERELASI (lanjutan)                     40.     TRANSACTIONS              WITH        RELATED          PARTIES
                                                                               (continued)

        Kompensasi manajemen kunci                                             Compensation of key management personnel

        Kompensasi kepada personil manajemen kunci Bank                        The compensation of key management personnel of
        (di luar Komisaris dan Direksi) adalah sebagai berikut:                the Bank (excluding Commissioners and Directors)
                                                                               are follows:
                                                         2023                   2022
        Gaji                                                  17.656                  22.995                                              Salary
        Jasa produksi                                         12.009                  12.053                                   Production bonus
        Tunjangan                                              7.458                  10.520                                         Allowance
        Jumlah                                                37.123                  45.569                                               Total

        Jumlah remunerasi yang telah dan akan dibayar untuk                   Total remuneration paid and payable for the years
        tahun yang berakhir pada tanggal 31 Desember 2023                     ended December 31, 2023 and 2022 to the Board of
        dan 2022 untuk Dewan Komisaris, masing-masing                         Commissioners were Rp15,130 and Rp12,990,
        adalah Rp15.130 dan Rp12.990 dan untuk Direksi,                       respectively, and to the Board of Directors were
        masing-masing adalah Rp33.962 dan Rp39.310.                           Rp33,962 and Rp39,310 respectively.


  41.   INFORMASI SEGMEN USAHA                                         41.     SEGMENT INFORMATION

        Informasi yang berkaitan dengan segmen usaha yang                      Information concerning the operating segment
        operasi dari Bank disajikan dalam tabel di bawah ini:                  information of the Bank is set out in the table below:

                                                               31 Desember/
                                                              December 31,
                                                                   2023
                                        Konvensional/    Syariah/           Eliminasi/         Jumlah/
                                        Conventional      Sharia          Elimination           Total

        Pendapatan segmen                    8.655.645      203.424            1.501.785         7.357.284                    Segment income
        Beban segmen                       (3.754.671)      (63.298)         (1.501.785)       (2.316.184)                  Segment expenses
        Pendapatan segmen - neto             4.900.974      140.126                    -         5.041.100                Segment Income - net

        Pendapatan operasional
         lainnya                              621.079        27.341                      -        648.420                Other operating income
        Penyisihan kerugian penurunan                                                                                   Provision for impairment
         nilai atas aset keuangan                                                                                      losses on financial and
         dan nonkeuangan                     (664.369)      (29.767)                     -       (694.136)               non-financial assets
        Beban operasional lainnya          (3.036.456)     (103.887)                     -     (3.140.343)            Other operating expenses
        Laba operasional                     1.821.228        33.813                     -       1.855.041              Income from operations
        Pendapatan (beban) bukan                                                                                          Non-operating income
         operasional - neto                    37.270           432                    -            37.702                     (expenses) - net
        Beban pajak - neto                  (422.638)             -                    -         (422.638)                     Tax expense - net
        Laba (rugi) periode berjalan        1.435.860        34.245                    -         1.470.105           Profit (loss) for the period
        Jumlah aset                       100.761.038     3.620.590            (526.855)       103.854.773                           Total assets




                                                              148
Page 688
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)


 41.   INFORMASI SEGMEN USAHA (lanjutan)                                41.     SEGMENT INFORMATION (continued)
       Informasi yang berkaitan dengan segmen usaha yang                        Information concerning the operating segment
       operasi dari Bank disajikan dalam tabel di bawah ini                     information of the Bank is set out in the table below
       (lanjutan):                                                              (continued):
                                                               31 Desember/
                                                              December 31,
                                                                   2022
                                       Konvensional/     Syariah/           Eliminasi/             Jumlah/
                                       Conventional       Sharia          Elimination               Total

       Pendapatan segmen                    8.361.576       175.839                1.654.764          6.882.651                    Segment income
       Beban segmen                       (3.565.277)       (55.082)             (1.654.764)        (1.965.595)                  Segment expenses
       Pendapatan segmen - neto             4.796.299       120.757                        -          4.917.056                Segment Income - net

       Pendapatan operasional
        lainnya                              512.531         21.038                        -           533.569                Other operating income
       Penyisihan kerugian penurunan                                                                                         Provision for impairment
        nilai atas aset keuangan                                                                                            losses on financial and
        dan nonkeuangan                     (381.864)       (22.795)                       -          (404.659)               non-financial assets
       Beban operasional lainnya          (3.024.930)       (80.210)                       -        (3.105.140)            Other operating expenses
       Laba operasional                     1.902.036         38.790                       -          1.940.826              Income from operations
       Pendapatan (beban) bukan                                                                                                Non-operating income
        operasional - neto                    87.343           1.880                       -            89.223                      (expenses) - net
       Beban pajak - neto                  (487.225)               -                       -         (487.225)                      Tax expense - net
       Laba (rugi) periode berjalan        1.502.154          40.670                       -         1.542.824            Profit (loss) for the period
       Jumlah aset                       100.470.606       3.071.458               (510.697)       103.031.367                            Total assets


 42.   MANAJEMEN RISIKO                                                 42.     RISK MANAGEMENT
       Fungsi manajemen risiko dalam pelaksanaannya                             Risk management function includes identification,
       melakukan identifikasi, penilaian, pengukuran,                           assessment, measurement, evaluation, monitoring
       evaluasi, monitoring, dan pengendalian risiko terkait                    and risk controls, including development of
       pula pengembangan sistem teknologi dan informasi                         technology and management information systems
       manajemen, serta peningkatan kualitas sumber daya                        and improvement of human resources quality in risk
       manusia dalam mengelola risiko.                                          management.
       Penerapan manajemen risiko di Bank mengacu pada                          Implementation of Bank risk management in
       Peraturan  Otoritas  Jasa     Keuangan   (POJK)                          accordance with the Financial Services Authority
       No.18/POJK.03/2016 tanggal 16 Maret 2016 tentang                         Regulation (POJK) No.18/POJK.03/2016 dated March
       Penerapan Manajemen Risiko bagi Bank Umum.                               16, 2016 regarding Application of Risk Management
                                                                                for Commercial Banks.
       Pengelolaan risiko tidak hanya terbatas pada                             Risk management is not merely related to monitoring,
       pemantauan, pelaporan dan evaluasi terhadap risiko-                      reporting, and evaluating the risks, but also detecting
       risiko yang terjadi, namun juga mendeteksi dan                           and anticipating the possible risks.
       mengantisipasi risiko-risiko yang mungkin terjadi.
       Pengawasan aktif Dewan Komisaris dan Direksi Bank                        Active monitoring from the Boards of Commissioners
       sangatlah penting, termasuk membentuk beberapa                           and Directors is essential, including establishing
       unit kerja yang bersifat permanen maupun komite                          several permanent working units or ad hoc
       untuk menunjang proses pengendalian risiko. Hal ini                      committees to support the risks control process. This
       diwujudkan     dengan       pembentukan      Divisi                      is implemented by establishing a Risk Management
       Pengendalian Risiko serta beberapa komite seperti                        Division and other several committees such as Risk
       Komite Pemantau Risiko, Komite Manajemen Risiko,                         Monitoring Committee, Risk Management Committee,
       Komite Aset dan Liabilitas, Komite Manajemen                             Assets and Liabilities Committee, Personnel
       Kepegawaian dan Komite Pengarah IT.                                      Management and IT Steering Committee.
       Bank selalu menyempurnakan seluruh ketentuan                             The Bank continously improves internal policies
       internal terkait pengelolaan risiko, termasuk dari sisi                  related to risk management, including policies,
       kebijakan, pedoman, prosedur dan pemanfaatan                             standardized operations, procedures, and information
       teknologi informasi.                                                     technology utilization.


                                                             149
Page 689
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT                                                 43.     CREDIT RISK
        Sesuai dengan kompleksitas usahanya, Bank telah                       In accordance with the complexity of business, the
        mengelola 8 (delapan) jenis risiko yaitu risiko kredit,               Bank has managed 8 (eight) risks, namely credit
        risiko likuiditas, risiko pasar, risiko operasional, risiko           risk, liquidity risk, market risk, operational risk,
        hukum, risiko reputasi, risiko stratejik dan risiko                   compliance risk, legal risk, strategic risk and
        kepatuhan.                                                            reputation risk.
        Setiap triwulan, Bank telah menyusun profil risiko yang               In quarterly, the Bank has prepared the risks profile
        secara garis besar dapat mencerminkan tingkat risiko                  globally which reflected the Bank's risk rate.
        yang dimiliki oleh Bank.
        Kerangka manajemen risiko                                             Risk management framework
        Organisasi manajemen risiko Bank melibatkan                           The Bank’s risk management organization involves
        pengawasan dari Dewan Komisaris, Direksi dan Komite                   oversight from the Board of Commissioner, the
        Pemantau Risiko. Komite Pemantau Risiko merupakan                     Board of Directors, and the Risk Monitoring
        pengawas risiko tertinggi di Dewan Komisaris. Komite                  Committee. The Risk Monitoring Committee is the
        Pemantau Risiko tersebut menyetujui dan memonitor                     highest risk authority in the Board of Commissioner
        pelaksanaan kerangka dan kebijakan manajemen risiko                   level. The Risk Monitoring Committee approves and
        Bank. Dewan Komisaris mendelegasikan kuasa                            monitors the implementation of risk management
        kepada    Direktur    Utama    dan   Direksi   untuk                  framework and policies of the Bank. Board of
        mengimplementasikan strategi manajemen risiko.                        Commissioner delegate authority to the President
        Komite Pemantau Risiko dibentuk oleh Direksi dan                      Director and Board of Directors to implement the
        bertanggungjawab untuk mengelola risiko yang ada di                   risk management strategy. The Risk Monitoring
        Bank.                                                                 Committee is established by the Board of Directors
                                                                              and is responsible for managing risk of the Bank.
        Kebijakan manajemen risiko Bank ditetapkan untuk                      The Bank’s risk management policies are
        mengidentifikasi dan menganalisa risiko-risiko yang                   established to identify and analyse the risks faced
        dihadapi Bank, untuk menetapkan batasan risiko dan                    by the Bank, to set appropriate risk limits and
        pengendalian yang sesuai, serta untuk mengawasi                       controls, and to monitor risks and adherence to
        risiko dan kepatuhan terhadap batasan yang telah                      limits determined. Risk management policies and
        ditetapkan. Kebijakan dan sistem manajemen risiko                     systems are reviewed regularly to reflect changes in
        ditelaah secara berkala untuk mencerminkan                            market conditions, products and services offered.
        perubahan dalam kondisi pasar, produk, dan jasa yang                  The Bank, through its training and management
        ditawarkan. Bank, melalui pelatihan serta standar dan                 standards and procedures, aims to develop a
        prosedur       pengelolaan,      berusaha       untuk                 disciplined and constructive control environment, in
        mengembangkan lingkungan pengendalian yang taat                       which all employees understand their roles and
        dan konstruktif, dimana semua karyawan memahami                       obligations.
        tugas dan kewajiban mereka.
        Komite Audit Bank memiliki tanggung jawab untuk                       The Bank’s Audit Committee is responsible for
        memantau kepatuhan terhadap kebijakan dan prosedur                    monitoring compliance with the Bank’s risk
        manajemen risiko, dan untuk menelaah kecukupan                        management policies and procedures, and for
        kerangka manajemen risiko yang terkait dengan risiko-                 reviewing the adequacy of the risk management
        risiko yang dihadapi oleh Bank. Dalam menjalankan                     framework in relation to the risks faced by the Bank.
        fungsinya, Komite Audit dibantu oleh Satuan Kerja                     The Bank’s Audit Committee is assisted in these
        Audit Intern. Satuan Kerja Audit Intern secara berkala                functions by Internal Audit Task Force. Internal
        maupun sesuai kebutuhan, menelaah pengendalian                        Audit Task Force undertakes both regular and ad-
        dan prosedur manajemen risiko dan melaporkan                          hoc reviews of risk management controls and
        hasilnya ke Komite Audit Bank.                                        procedures, the results of which are reported to the
                                                                              Bank’s Audit Committee.
        Komite Pemantau Risiko mengawasi perkembangan                         The Risk Monitoring Committee supervises the
        kebijakan   manajemen    risiko   dan     menilai                     development of risk management policies and
        penerapannya. Komite juga memberikan nasihat                          assesses the implementation. The Committee also
        mengenai strategi manajemen risiko yang harus                         provides advice on the risk management strategy to
        digunakan oleh Bank. Dalam melaksanakan fungsi                        be employed by the Bank. In conducting its
        pengawasan,    Komite  Pemantau    Risiko  akan                       oversight role, the Risk Monitoring Committee will
        melakukan pengawasan dan evaluasi kinerja Komite                      also monitor and evaluate the performance of the
        Manajemen Risiko.                                                     Risk Management Committee.



                                                                150
Page 690
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)



 43.   RISIKO KREDIT (lanjutan)                                      43.     CREDIT RISK (continued)

       Risiko kredit adalah risiko akibat wanprestasi debitur               Credit risk is the risk of debtors and/or counterparties
       dan/atau pihak lawan (counterparty) dalam memenuhi                   failure to fulfil their obligations to the Bank. In relation
       liabilitas kepada Bank. Terhadap eksposur risiko kredit              to the specific credit risk exposure such as individual
       spesifik seperti kredit perorangan, fasilitas antar bank             credits, inter-bank facilities and others, the Bank
       dan sebagainya, Bank melakukan evaluasi secara                       separately evaluates credit risk based on factors
       tersendiri dengan menggunakan faktor yang dapat                      which may be different, according to the specific
       saja berbeda, sesuai dengan karakteristik spesifik dari              characteristics of each exposure. In managing credit
       setiap jenis eksposur. Dalam mengelola risiko kredit,                risk, the Bank has credit policies and standard
       Bank telah memiliki kebijakan dan pedoman                            operation procedures that are enhanced periodically in
       perkreditan, yang disempurnakan secara berkala,                      accordance with independent risk management
       dengan tetap didasarkan pada prinsip pengelolaan                     principles based on Bank Indonesia regulations, and
       risiko yang independen sesuai dengan peraturan Bank                  other external regulations.
       Indonesia dan peraturan eksternal lainnya.

       Pengendalian risiko kredit terkait penyediaan dana                   Control of the credit risks related to the provision of
       dengan limit minimal tertentu harus melalui Komite                   funds above a certain minimum limit requires approval
       Kebijakan Perkreditan. Dalam rangka pengendalian                     by the Credit Committee. In the comprehensive credit
       risiko kredit secara komprehensif, Bank terus meninjau               risk control, the Bank continuously reviews and
       dan       menyempurnakan      pelaksanaan       fungsi               improves the credit risk control function which is
       pengendalian risiko kredit yang dijalankan oleh unit                 conducted by the risk taking unit, among others, by
       yang terekspos terhadap risiko diantaranya dengan                    establishing a credit analyst function in the branch.
       pembentukan fungsi analis kredit di cabang.

       Pengelolaan risiko kredit yang lebih khusus dilakukan                Specific credit risk management is performed on the
       atas portofolio kredit yang bermasalah. Upaya yang                   non-performing loans portfolio. Such efforts, among
       dilakukan diantaranya adalah restrukturisasi fasilitas               others, are restructuring of non-performing loans,
       kredit yang bermasalah, pembentukan pencadangan                      providing allowances to cover potential losses, and
       untuk menutup potensi kerugian, hingga pelaksanaan                   write-offs. Specific policy on non-performing loans
       hapus buku. Kebijakan pengelolaan kredit bermasalah                  management process has been implemented,
       telah dilaksanakan, termasuk pembentukan unit kerja                  including establishing special working units to handle
       khusus untuk mengelola kredit bermasalah.                            such loans.

       Bank   telah  menjalankan       proses    identifikasi,              The Bank identifies, measures, monitors, and controls
       pengukuran, pemantauan, dan pengendalian risiko                      risks which include credit risk profiles integrated in a
       yang mencakup profil risiko kredit secara terintegrasi               comprehensive risk management process.
       dalam suatu proses manajemen risiko yang
       komprehensif.
       a.   Risiko kredit maksimum                                          a.    Maximum credit risk

            Untuk aset keuangan yang diakui di laporan                            For financial assets recognized in the statements
            posisi keuangan, eksposur maksimum terhadap                           of financial position, the maximum exposure to
            risiko kredit sama dengan nilai tercatatnya.                          credit risk equals their carrying amounts. For the
            Untuk bank garansi yang diterbitkan, L/C dan                          bank guarantees issued and outstanding
            SKBDN yang masih berjalan yang dapat                                  revocable L/Cs and Domestic L/Cs, the maximum
            dibatalkan, eksposur maksimum terhadap risiko                         exposure to credit risk is the maximum amount
            kredit adalah nilai maksimum yang harus                               that the Bank has to pay if the obligations under
            dibayarkan oleh Bank jika liabilitas atas bank                        the bank guarantees issued and outstanding
            garansi, L/C, dan SKBDN tersebut terjadi. Untuk                       revocable L/Cs and Domestic L/Cs are called
            fasilitas kredit kepada nasabah yang belum                            upon. For unused loans commitments granted to
            digunakan, eksposur maksimum terhadap risiko                          customers, the maximum exposure to credit risk is
            kredit adalah sebesar komitmen tersebut.                              the committed amount.
            Eksposur maksimum Bank terhadap risiko kredit                         The Bank’s maximum exposure to credit risk of
            untuk instrumen keuangan pada laporan posisi                          statements of financial position and administrative
            keuangan dan rekening administrasi, dinilai                           accounts financial instruments, is valued without
            tanpa memperhitungkan agunan yang dimiliki                            taking into account any collateral held or other
            atau perlindungan kredit lainnya.                                     credit enhancement.

                                                              151
Page 691
                                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                          (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                                                 43.     CREDIT RISK (continued)

        b.   Risiko konsentrasi kredit                                                                   b.       Credit concentration risk

             Pada tanggal 31 Desember 2023 dan 2022,                                                              As of December 31, 2023 and 2022, the
             pengungkapan       risiko    kredit   maksimum                                                       disclosure of the maximum credit risk by
             berdasarkan           konsentrasi        sebelum                                                     concentration without taking into account any
             memperhitungkan agunan yang dimiliki dan                                                             collateral held and master netting agreements
             perjanjian master netting adalah sebagai berikut:                                                    is as follows:

             Konsentrasi risiko kredit berdasarkan geografis                                                      Concentration of credit risk by geography

                                                                                     31 Desember/
                                                                                     December 31,
                                                                                         2023
                                                                  Jawa selain
                                                                  Jawa Timur/
                                              Jawa Timur/       Java other than                     Kalimantan/      Lain-lain/       Jumlah/
                                               East Java           East Java      Sumatera            Borneo          Others           Total
             Posisi keuangan                                                                                                                                           Financial position
                                                                                                                                                                    Current accounts with
             Giro pada Bank Indonesia                       -         7.971.412              -                -                   -    7.971.412                         Bank Indonesia
                                                                                                                                                                    Current accounts with
             Giro pada bank lain                            -           490.253              -                -                   -      490.253                             other banks
             Penempatan pada                                                                                                                                              Placements with
             Bank Indonesia                                                                                                                                              Bank Indonesia
              dan bank lain                        842.093            2.281.988    1.000.000            290.000         815.614        5.229.695                        and other banks
             Surat berharga                                                                                                                                          Marketable securities
              Biaya perolehan diamortisasi                  -         8.560.761              -                -                   -    8.560.761                         Amortized cost
              Nilai wajar melalui                                                                                                                                     Fair value through
                pendapatan komprehensif                                                                                                                         other comprehensive
                lain                                        -         7.762.560              -                -                   -    7.762.560                                income
             Surat berharga yang dijual                                                                                                                  Marketable securities sold under
                dengan janji dibeli kembali                 -         8.303.663              -                -                   -    8.303.663               repurchased agreement
             Surat berharga yang dibeli                                                                                                          Marketable securities purchased
                dengan janji dijual kembali              -            6.247.318              -                -                   -    6.247.318               under resale agreement
             Tagihan lainnya                       223.138                    -              -                -                   -      223.138                        Other receivables
             Kredit yang diberikan
              dan pembiayaan syariah                                                                                                                            Loans and sharia financing
                Modal kerja                     11.440.125            2.842.481      604.895                  -            2.973      14.890.474                       Working capital
                Investasi                        4.236.832            2.670.923      282.259            472.895                -       7.662.909                           Investment
                Konsumsi                        30.059.320              734.680       48.538                  -               77      30.842.615                         Consumption
             Pendapatan bunga yang
              masih akan diterima                  665.717               16.610        2.458                730             219          685.734                       Interest receivables
             Jumlah                             47.467.225           47.882.649    1.938.150            763.625         818.883       98.870.532                                      Total

             Rekening administratif                                                                                                                              Administrative accounts
             Fasilitas kredit                                                                                                                                               Unused loans
              kepada nasabah                                                                                                                                       commitments granted
              yang belum digunakan               2.875.686              872.815         6.195            15.569                   -    3.770.265                           to customers
             Bank garansi yang                                                                                                                                          Bank guarantees
              diterbitkan                          699.574                    -             -                 -                   -      699.574                                  issued
             Jumlah                              3.575.260              872.815         6.195            15.569                   -    4.469.839                                     Total




                                                                                  152
Page 692
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                 and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                    (Expressed in millions of Rupiah, unless otherwise stated)



  43.   RISIKO KREDIT (lanjutan)                                                                 43.   CREDIT RISK (continued)

        b.   Risiko konsentrasi kredit (lanjutan)                                                       b.       Credit concentration risk (continued)

             Konsentrasi risiko kredit berdasarkan geografis                                                     Concentration of credit risk by geography
             (lanjutan)                                                                                          (continued)

                                                                                     31 Desember/
                                                                                     December 31,
                                                                                         2022
                                                                  Jawa selain
                                                                  Jawa Timur/
                                              Jawa Timur/       Java other than                    Kalimantan/      Lain-lain/       Jumlah/
                                               East Java           East Java      Sumatera           Borneo          Others           Total
             Posisi keuangan                                                                                                                                          Financial position
                                                                                                                                                                   Current accounts with
             Giro pada Bank Indonesia                       -        10.786.740              -               -                   -   10.786.740                         Bank Indonesia
                                                                                                                                                                   Current accounts with
             Giro pada bank lain                            -           302.688              -               -                   -      302.688                             other banks
             Penempatan pada                                                                                                                                             Placements with
             Bank Indonesia                                                                                                                                             Bank Indonesia
              dan bank lain                      1.152.000            2.702.379      538.000           449.000       2.071.796        6.913.175                        and other banks
             Tagihan spot dan derivatif                361                    -            -                 -               -              361        Spot and derivative receivables
             Surat berharga                                                                                                                                         Marketable securities
              Biaya perolehan diamortisasi                  -        14.740.662              -               -                   -   14.740.662                         Amortized cost
              Nilai wajar melalui                                                                                                                                    Fair value through
                pendapatan komprehensif                                                                                                                        other comprehensive
                lain                                        -         8.476.609              -               -                   -    8.476.609                                income
             Surat berharga yang dijual                                                                                                                 Marketable securities sold under
                dengan janji dibeli kembali                 -         4.095.066              -               -                   -    4.095.066               repurchased agreement
             Surat berharga yang dibeli                                                                                                         Marketable securities purchased
                dengan janji dijual kembali              -            7.822.847              -               -                   -    7.822.847               under resale agreement
             Tagihan lainnya                       286.147                    -              -               -                   -      286.147                        Other receivables
             Kredit yang diberikan
              dan pembiayaan syariah                                                                                                                           Loans and sharia financing
                Modal kerja                      8.483.137            1.014.245      677.316                 -                -      10.174.698                       Working capital
                Investasi                        3.359.791            2.161.406      370.368           479.607                -       6.371.172                           Investment
                Konsumsi                        28.151.362              143.306       37.289                70              148      28.332.175                         Consumption
             Pendapatan bunga yang
              masih akan diterima                  629.389               13.694        2.288               752               2          646.125                       Interest receivables
             Jumlah                             42.062.187           52.259.642    1.625.261           929.429       2.071.946       98.948.465                                      Total

             Rekening administratif                                                                                                                             Administrative accounts
             Fasilitas kredit                                                                                                                                              Unused loans
              kepada nasabah                                                                                                                                      commitments granted
              yang belum digunakan               2.412.262              971.071         610             15.569                   -    3.399.512                           to customers
             Bank garansi yang                                                                                                                                         Bank guarantees
              diterbitkan                        1.019.766                    -           -                  -                   -    1.019.766                                  issued
             Jumlah                              3.432.028              971.071         610             15.569                   -    4.419.278                                     Total




                                                                                  153
Page 693
                                                                                               The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                         PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                         JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                        NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                        As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                    and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                        (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                                               43.       CREDIT RISK (continued)

        b.   Risiko konsentrasi kredit (lanjutan)                                                        b.       Credit concentration risk (continued)

             Konsentrasi risiko kredit berdasarkan sektor                                                         Concentration of credit risk by industry sector
             industri

                                                                                     31 Desember/
                                                                                     December 31,
                                                                                         2023
                                              Pemerintah         Lembaga
                                                dan Bank         keuangan
                                               Indonesia/       bukan bank/                      Perusahaan
                                              Government         Non-bank                          lainnya/
                                               and Bank           financial                         Other         Perseorangan/   Jumlah/
                                               Indonesia        institutions       Banks         companies         Individuals     Total
             Posisi keuangan                                                                                                                                Financial position
                                                                                                                                                         Current accounts with
             Giro pada Bank Indonesia            7.971.412                     -           -                  -              -     7.971.412                  Bank Indonesia
                                                                                                                                                         Current accounts with
             Giro pada bank lain                            -                  -    490.253                   -              -      490.253                       other banks
             Penempatan pada                                                                                                                                   Placements with
             Bank Indonesia                                                                                                                                   Bank Indonesia
              dan bank lain                      5.229.695                     -           -                  -              -     5.229.695                 and other banks
             Surat berharga                                                                                                                               Marketable securities
              Biaya perolehan diamortisasi       5.890.446                     -    463.025           2.207.290              -     8.560.761                   Amortized cost
              Nilai wajar melalui                                                                                                                          Fair value through
                pendapatan komprehensif                                                                                                               other comprehensive
                lain                             7.762.560                     -           -                  -              -     7.762.560                         income
             Surat berharga yang dijual                                                                                                        Marketable securities sold under
                dengan janji dibeli kembali      8.303.663                     -           -                  -              -     8.303.663         repurchased agreement
             Surat berharga yang dibeli                                                                                                        Marketable securities purchased
                dengan janji dijual kembali                 -                  -   6.247.318                  -              -     6.247.318         under resale agreement
             Tagihan lainnya                                -                  -           -                  -        223.138       223.138                  Other receivables
             Kredit yang diberikan
              dan pembiayaan syariah                                                                                                                Loans and sharia financing
                Modal kerja                        105.418            351.676      1.219.950          3.516.283      9.697.147    14.890.474               Working capital
                Investasi                            1.111              6.137              -          5.088.634      2.567.027     7.662.909                   Investment
                Konsumsi                                 -              2.671          7.376            608.137     30.224.431    30.842.615                 Consumption
             Pendapatan bunga yang
              masih akan diterima                      275              2.389          2.281             33.110        647.679       685.734               Interest receivables
             Jumlah                             35.264.580            362.873      8.430.203         11.453.454     43.359.422    98.870.532                              Total
             Rekening administratif                                                                                                                  Administrative accounts
             Fasilitas kredit                                                                                                                                   Unused loans
              kepada nasabah                                                                                                                           commitments granted
              yang belum digunakan                          -                  -     65.971                   -      3.704.294     3.770.265                   to customers
             Bank garansi yang                                                                                                                              Bank guarantees
              diterbitkan                                   -                  -          -                   -        699.574       699.574                          issued
             Jumlah                                         -                  -     65.971                   -      4.403.868     4.469.839                             Total




                                                                                   154
Page 694
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                               (Expressed in millions of Rupiah, unless otherwise stated)


  43.   RISIKO KREDIT (lanjutan)                                                            43.        CREDIT RISK (continued)
        b.   Risiko konsentrasi kredit (lanjutan)                                                      b.       Credit concentration risk (continued)
             Konsentrasi risiko kredit berdasarkan sektor                                                       Concentration of credit risk by industry sector
             industri (lanjutan)                                                                                (continued)

                                                                               ='1. Neraca Aktiva'!F2
                                                                                   December 31,
                                                                                        2022
                                              Pemerintah                      Lembaga
                                                dan Bank                      keuangan
                                               Indonesia/                    bukan bank/       Perusahaan
                                              Government                      Non-bank           lainnya/
                                               and Bank                        financial           Other        Perseorangan/   Jumlah/
                                               Indonesia        Banks        institutions       companies        Individuals     Total
             Posisi keuangan                                                                                                                              Financial position
                                                                                                                                                       Current accounts with
             Giro pada Bank Indonesia           10.786.740               -              -                   -              -    10.786.740                  Bank Indonesia
                                                                                                                                                       Current accounts with
             Giro pada bank lain                            -            -       302.688                    -              -      302.688                       other banks
             Penempatan pada                                                                                                                                 Placements with
             Bank Indonesia                                                                                                                                 Bank Indonesia
              dan bank lain                      6.913.175               -             -                    -              -     6.913.175                 and other banks
             Tagihan spot derivatif                      -               -           361                    -              -           361       Spot derivative receivables
             Surat berharga                                                                                                                             Marketable securities
              Biaya perolehan diamortisasi      12.425.335               -       327.018          1.988.309                -    14.740.662                   Amortized cost
              Nilai wajar melalui                                                                                                                        Fair value through
                pendapatan komprehensif                                                                                                             other comprehensive
                lain                             8.476.609               -              -                   -              -     8.476.609                         income
             Surat berharga yang dijual                                                                                                      Marketable securities sold under
                dengan janji dibeli kembali      4.095.066               -              -                   -              -     4.095.066         repurchased agreement
             Surat berharga yang dibeli                                                                                                      Marketable securities purchased
                dengan janji dijual kembali                 -            -     7.822.847                    -              -     7.822.847         under resale agreement
             Tagihan lainnya                                -            -             -                    -        286.147       286.147                  Other receivables
             Kredit yang diberikan
              dan pembiayaan syariah                                                                                                              Loans and sharia financing
                Modal kerja                        177.813         327.211       315.826          2.937.209        6.416.639    10.174.698               Working capital
                Investasi                            5.662           1.436             -          4.828.916        1.535.158     6.371.172                   Investment
                Konsumsi                                 -           1.000         3.897             14.773       28.312.505    28.332.175                 Consumption
             Pendapatan bunga yang
              masih akan diterima                      433           2.025           535             41.024          602.108       646.125               Interest receivables
             Jumlah                             42.880.833         331.672     8.773.172          9.810.231       37.152.557    98.948.465                              Total

             Rekening administratif                                                                                                                Administrative accounts
             Fasilitas kredit                                                                                                                                 Unused loans
              kepada nasabah                                                                                                                         commitments granted
              yang belum digunakan                          -            -       132.932                    -      3.266.580     3.399.512                   to customers
             Bank garansi yang                                                                                                                            Bank guarantees
              diterbitkan                                   -            -             -                    -      1.019.766     1.019.766                          issued
             Jumlah                                         -            -       132.932                    -      4.286.346     4.419.278                             Total

        c.   Agunan dan perlindungan kredit lainnya                                               c.        Collateral and other credit enhancements
             Bank telah memiliki buku pedoman tentang cara                                                  The Bank has a guidebook on how to value the
             menilai dan jenis jaminan yang bisa diterima                                                   type of collateral that can be accepted as credit
             sebagai mitigasi risiko kredit. Beberapa agunan                                                risk mitigation. Some major collateral obtained
             utama yang diperoleh adalah tanah, bangunan                                                    includes land, buildings and vehicles. The Bank
             dan kendaraan. Bank juga memiliki beberapa                                                     also has certain credit facilities guaranteed by
             fasilitas kredit yang mendapat penjaminan dari                                                 third parties.
             pihak ketiga.
             Umumnya, agunan diperlukan untuk setiap                                                        Generally, collateral is required for all credits
             pemberian kredit sebagai sumber sekunder                                                       extended as a secondary source of credit
             pelunasan kredit dan sebagai salah satu bentuk                                                 repayment and also as a form of credit risk
             mitigasi risiko kredit. Sumber utama pelunasan                                                 mitigation. The primary source of credit
             kredit adalah dari hasil usaha debitur.                                                        repayment is the funds generated from business
                                                                                                            operations of the borrowers.


                                                                              155
Page 695
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                      43.     CREDIT RISK (continued)
        d.   Kualitas aset keuangan                                           d.    Quality of financial assets
             Bank telah memiliki kebijakan yang telah                               The Bank has a policy that has been
             diterapkan secara konsisten untuk pemeringkatan                        consistently applied for risk assessment of the
             risiko atas portofolio aset keuangan. Sistem                           financial asset portfolio. This rating system is
             peringkat ini didukung oleh berbagai analisis                          supported by a variety of financial analyses,
             keuangan, dikombinasikan dengan informasi                              combined with market information that has
             pasar yang telah diolah guna pengukuran risiko                         been processed for the measurement of
             pihak lawan. Semua peringkat risiko disesuaikan                        counterparty risk. All risk ratings are adjusted to
             dengan berbagai kategori dan ditentukan sesuai                         the various categories and ranks as determined
             dengan panduan peringkat Bank Indonesia.                               in accordance with the Bank Indonesia’s rating
                                                                                    guidance.
        e.   Evaluasi penurunan nilai                                         e.    Impairment assessment
             Pengukuran risiko kredit                                               Credit risk measurement
             Estimasi eksposur kredit untuk tujuan manajemen                        The estimation of credit exposure for risk
             risiko adalah kompleks dan mensyaratkan                                management purposes is complex and requires
             penggunaan model, karena eksposur yang                                 the use of models, as the exposure varies with
             bervariasi dengan perubahan kondisi pasar, arus                        changes in market conditions, expected cash
             kas ekspektasian dan berlalunya waktu. Penilaian                       flows and the passage of time. The assessment
             risiko kredit dari portofolio aset memerlukan                          of credit risk of a portfolio of assets entails
             estimasi lebih lanjut mengenai kemungkinan                             further estimations as to the likelihood of
             terjadinya gagal bayar, rasio kerugian terkait dan                     defaults occurring, of the associated loss ratios
             korelasi gagal bayar antara pihak lawan. Bank                          and     of    default    correlations   between
             mengukur risiko kredit menggunakan Probability                         counterparties. The Bank measures credit risk
             of Default (PD), Exposure at Default (EAD) dan                         using Probability of Default (PD), Exposure at
             Loss Given Default (LGD). Hal ini sama dengan                          Default (EAD) and Loss Given Default (LGD).
             pendekatan yang digunakan untuk tujuan                                 This is similar to the approach used for the
             mengukur Kerugian Kredit Ekspektasian (ECL)                            purposes of measuring Expected Credit Loss
             berdasarkan PSAK 71.                                                   (ECL) under PSAK 71.
             Pengukuran kerugian kredit ekspektasian                                Expected credit loss measurement
             PSAK 71 mengikhtisarkan model “tiga tahap”                             PSAK 71 outlines a “three-stage” model for
             untuk penurunan nilai berdasarkan perubahan                            impairment based on changes in credit quality
             kualitas kredit sejak pengakuan awal seperti                           since initial recognition as summarised below:
             diikhtisarkan di bawah ini:
             -   Instrumen keuangan yang tidak mengalami                             -     A financial instrument that is not credit-
                 penurunan nilai pada pengakuan awal                                       impaired on initial recognition is classified
                 diklasifikasikan ke dalam “Tahap 1” dan risiko                            in ‘Stage 1’ and has its credit risk
                 kreditnya terus dipantau oleh Bank.                                       continuously monitored by the Bank.
             -   Jika peningkatan signifikan dalam risiko                            -     If a significant increase in credit risk (SICR)
                 kredit (SICR) sejak pengakuan awal                                        since initial recognition is identified, the
                 diidentifikasi,        instrumen        keuangan                          financial instrument is moved to ‘Stage 2’
                 dipindahkan ke “Tahap 2” tetapi belum diakui                              but is not yet deemed to be credit-
                 sebagai kredit yang mengalami penurunan                                   impaired.
                 nilai.
             -   Jika     instrumen       keuangan     mengalami                     -     If the financial instrument is credit-
                 penurunan       nilai,    instrumen     keuangan                          impaired, the financial instrument is then
                 kemudian dipindahkan ke “Tahap 3”.                                        moved to “Stage 3”.
             -   Instrumen keuangan pada Tahap 1 memiliki                            -     Financial instruments in Stage 1 have their
                 ECL yang diukur pada jumlah yang sama                                     ECL measured at an amount equal to the
                 dengan       bagian      dari   kerugian    kredit                        portion of lifetime expected credit losses
                 ekspektasian sepanjang umurnya yang                                       that result from default events possible
                 dihasilkan dari peristiwa gagal bayar yang                                within the next 12 months. Instruments in
                 mungkin terjadi dalam 12 bulan ke depan.                                  Stages 2 or 3 have their ECL measured
                 Instrumen dalam Tahap 2 atau 3 ECL diukur                                 based on expected credit losses on a
                 berdasarkan         pada       kerugian     kredit                        lifetime basis.
                 ekspektasian sepanjang umurnya.



                                                                156
Page 696
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                         43.      CREDIT RISK (continued)

       e.       Evaluasi penurunan nilai (lanjutan)                             e.       Impairment assessment (continued)

                Pengukuran        kerugian   kredit   ekspektasian                       Expected    credit            loss       measurement
                (lanjutan)                                                               (continued)

                PSAK 71 mengikhtisarkan model “tiga tahap”                               PSAK 71 outlines a “three-stage” model for
                untuk penurunan nilai berdasarkan perubahan                              impairment based on changes in credit quality
                kualitas kredit sejak pengakuan awal seperti                             since initial recognition as summarised below
                diikhtisarkan di bawah ini (lanjutan):                                   (continued):
            -        Konsep pervasif dalam mengukur ECL                              -        A pervasive concept in measuring ECL in
                     sesuai dengan PSAK 71 adalah bahwa                                       accordance with PSAK 71 is that it should
                     konsep tersebut harus mempertimbangkan                                   consider forward-looking information.
                     informasi perkiraan masa depan.
            -        Aset keuangan yang dibeli atau yang berasal                     -        Purchased or originated credit-impaired
                     dari aset keuangan yang memburuk adalah                                  financial assets are those financial assets
                     aset keuangan yang mengalami penurunan                                   that are credit-impaired        on initial
                     nilai pada saat pengakuan awal. ECL selalu                               recognition. Their ECL is always measured
                     diukur sepanjang umurnya (Tahap 3).                                      on a lifetime basis (Stage 3).

                Peningkatan signifikan pada risiko kredit                                Significant increase in credit risk (SICR)
                (SICR)

                Bank mempertimbangkan instrumen keuangan                                 The Bank consider a financial instrument to
                telah mengalami peningkatan risiko kredit yang                           have experienced significant increase in credit
                signifikan  ketika    peminjam       menunggak                           risk when the borrower is more than 30 days
                pembayaran kontraktualnya lebih dari 30 hari.                            past due on its contractual payments.

                Definisi gagal bayar dan aset yang mengalami                             Definition of default and credit-impaired
                penurunan nilai kredit                                                   assets

                Bank     mendefinisikan    instrumen   keuangan                          The Bank defines a financial instrument as in
                sebagai gagal bayar, yang sepenuhnya sesuai                              default, which is fully aligned with the definition
                dengan definisi kredit yang mengalami penurunan                          of credit-impaired, when it meets one or more of
                nilai, ketika memenuhi satu atau lebih kriteria                          the following criteria:
                berikut:

                Kriteria kuantitatif                                                     Quantitative criteria

                Peminjam yang tertunggak lebih dari 90 hari atas                         The borrower is more than 90 days past due on
                pembayaran kontraktualnya.                                               its contractual payments.

                Kriteria kualitatif                                                      Qualitative criteria

                Peminjam memenuhi kriteria tidak mampu                                   The borrower meets unlikeliness to pay criteria,
                membayar, yang menunjukkan peminjam dalam                                which indicates the borrower is in significant
                kesulitan keuangan yang signifikan, sebagaimana                          financial difficulty, as described in (Note 2m).
                dijelaskan pada Catatan 2m.

                Kriteria tersebut telah diterapkan pada semua                            The criteria have been applied to all financial
                instrumen keuangan yang dimiliki oleh Bank dan                           instruments held by the Bank and are consistent
                konsisten dengan definisi gagal bayar yang                               with the definition of default used for internal
                digunakan untuk tujuan manajemen risiko kredit                           credit risk management purposes. The default
                internal. Definisi gagal bayar telah diterapkan                          definition has been applied consistently to
                secara konsisten untuk model Probability of                              model the Probability of Default (PD), Exposure
                Default (PD), Exposure at Default (EAD) dan Loss                         at Default (EAD) and Loss given Default (LGD)
                Given Default (LGD) sepanjang perhitungan                                throughout    the    Bank’s    expected     loss
                kerugian ekspektasian Bank.                                              calculations.


                                                                157
Page 697
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                      43.     CREDIT RISK (continued)
        e.       Evaluasi penurunan nilai (lanjutan)                          e.       Impairment assessment (continued)
                 Definisi gagal bayar dan aset yang mengalami                          Definition of default and credit-impaired
                 penurunan nilai kredit (lanjutan)                                     assets (continued)
                 Kriteria kualitatif (lanjutan)                                        Qualitative criteria (continued)
                 Pertimbangan utama dalam melakukan evaluasi                           The main considerations for the loan
                 penurunan nilai kredit yang diberikan khususnya                       impairment assessment include whether any
                 pembayaran pokok atau bunga yang jatuh tempo                          payments of principal or interest are overdue by
                 lebih dari 90 hari atau terdapat kesulitan atau                       more than 90 days or there are any known
                 pelanggaran dari persyaratan yang terdapat                            difficulties, or non-compliance of the original
                 dalam kontrak awal. Bank melakukan evaluasi                           terms of the contract. The Bank evaluates
                 penurunan nilai dengan dua metode yaitu                               impairment assessments using two methods:
                 evaluasi penurunan nilai secara individual dan                        individual      and    collective     impairment
                 kolektif.                                                             assessment.
                 Bank     menentukan       penyisihan      kerugian                    The Bank determines the allowances for
                 penurunan nilai secara individual untuk masing-                       impairment losses for each significant loan on
                 masing kredit yang diberikan yang signifikan.                         an individual basis.
                 Hal-hal yang dipertimbangkan dalam menentukan                         Items considered when determining allowance
                 jumlah penyisihan kerugian penurunan nilai                            for impairment losses include the sustainability
                 antara     lain   kemampuan       debitur   untuk                     of the debtors’ business plan, its ability to
                 memperbaiki kinerja saat menghadapi kesulitan                         improve performance once a financial difficulty
                 keuangan, proyeksi penerimaan dan ekspektasi                          has arisen, projected receipts and the expected
                 pengeluaran saat terjadi kepailitan, ketersediaan                     payout should bankruptcy occurs, the
                 dukungan keuangan lainnya, termasuk klaim                             availability of other financial support, including
                 terhadap pihak asuransi, nilai agunan yang dapat                      claim for the insurance party, the realizability of
                 direalisasikan, dan ekspektasi waktu diperolehnya                     collateral, and the timing of expected cash
                 arus kas.                                                             flows.
                 Penyisihan kerugian penurunan nilai dievaluasi                        The allowance for impairment losses is
                 setiap tanggal pelaporan. Sedangkan evaluasi                          evaluated at each reporting date. The
                 penyisihan kerugian penurunan nilai secara                            allowance for impairment losses based on
                 kolektif dilakukan atas kredit yang diberikan yang                    collective evaluation is made for the loans
                 tidak signifikan secara individual. Namun bila ada                    which are not individually significant. But if
                 bukti obyektif penurunan nilai khususnya                              there is objective evidence of impairment or
                 pembayaran pokok atau bunga menunggak lebih                           certain principal payment or interest are
                 dari 90 hari, sistem akan menghitung penurunan                        outstanding for more than 90 days, the system
                 nilai secara individual.                                              will calculate the individual impairment.
                 Mengukur ECL - Penjelasan input, asumsi dan                           Measuring ECL – Explanation of inputs,
                 teknik estimasi                                                       assumptions and estimation techniques
                 Kerugian Kredit Ekspektasian (ECL) diukur pada                        The Expected Credit Loss (ECL) is measured
                 basis 12 bulan atau sepanjang umurnya                                 on either a 12-month or Lifetime basis
                 tergantung apakah peningkatan signifikan dalam                        depending on whether a significant increase in
                 risiko kredit telah terjadi sejak pengakuan awal                      credit risk has occurred since initial recognition
                 atau apakah suatu aset dianggap telah                                 or whether an asset is considered to be credit-
                 mengalami penurunan nilai. Kerugian kredit                            impaired. Expected credit losses are the
                 ekspektasian adalah hasil diskonto dari PD, EAD,                      discounted product of the PD, EAD, and LGD,
                 dan LGD, didefinisikan sebagai berikut:                               defined as follows:
             -        PD mewakili kemungkinan peminjam gagal                       -        The PD represents the likelihood of a
                      bayar atas kewajiban keuangannya (sesuai                              borrower defaulting on its financial
                      “definisi default dan kredit yang mengalami                           obligation (as per “definition of default and
                      penurunan nilai” di atas), baik selama 12                             credit-impaired” above), either over the
                      bulan ke depan, atau selama sisa umurnya                              next 12 months, or over the remaining
                      (PD sepanjang umurnya) dari kewajiban.                                lifetime (lifetime PD) of the obligation.




                                                                158
Page 698
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                         43.      CREDIT RISK (continued)

       e.       Evaluasi penurunan nilai (lanjutan)                             e.       Impairment assessment (continued)

                Mengukur ECL - Penjelasan input, asumsi dan                              Measuring ECL – Explanation of inputs,
                teknik estimasi (lanjutan)                                               assumptions and estimation techniques
                                                                                         (continued)

            -       EAD      didasarkan  pada      jumlah   yang                     -        EAD is based on the amounts the Bank
                    diharapkan dari Bank pada saat gagal bayar,                               expects to be owed at the time of default,
                    selama 12 bulan ke depan atau selama sisa                                 over the next 12 months or over the
                    umurnya (lifetime EAD). Misalnya, untuk                                   remaining lifetime (lifetime EAD). For
                    komitmen revolving, Bank memasukkan                                       example, for a revolving commitment, the
                    saldo yang ditarik saat ini ditambah jumlah                               Bank includes the current drawn balance
                    yang diharapkan akan ditarik hingga batas                                 plus any further amount that is expected to
                    kontrak pada saat gagal bayar, jika hal itu                               be drawn up to the current contractual limit
                    terjadi.                                                                  by the time of default, should it occur.
            -       (LGD) mewakili ekspektasi Bank tentang                           -        (LGD) represents the Bank’s expectation
                    tingkat kerugian pada eksposur gagal bayar.                               of the extent of loss on a defaulted
                    LGD      dinyatakan   sebagai     persentase                              exposure. LGD is expressed as a
                    kerugian per unit eksposur pada saat gagal                                percentage loss per unit of exposure at the
                    bayar (EAD).                                                              time of default (EAD).

                ECL ditentukan dengan memproyeksikan PD,                                 The ECL is determined by projecting the PD,
                LGD dan EAD untuk setiap bulan berikutnya dan                            LGD and EAD for each future month and for
                untuk setiap eksposur individu atau segmen                               each individual exposure or collective segment.
                kolektif. Tiga komponen ini dikalikan bersama.                           These three components are multiplied
                Perhitungan efektif ECL ini dilakukan untuk setiap                       together. This effectively calculates an ECL for
                bulan berikutnya, yang kemudian didiskontokan                            each future month, which is then discounted
                kembali ke tanggal pelaporan dan dijumlahkan.                            back to the reporting date and summed. The
                Tingkat     diskonto  yang      digunakan    pada                        discount rate used in the ECL calculation is the
                perhitungan ECL adalah suku bunga efektif awal                           original   effective interest rate or an
                atau perkiraannya.                                                       approximation thereof.

                PD sepanjang umurnya dikembangkan dengan                                 The Lifetime PD is developed by applying a
                menerapkan profil jatuh tempo ke PD 12 bulan                             maturity profile to the current 12 months PD.
                saat ini. Profil jatuh tempo melihat bagaimana                           The maturity profile looks at how defaults
                gagal bayar muncul pada portofolio dari titik                            develop on a portfolio from the point of initial
                pengakuan awal sepanjang masa umur pinjaman.                             recognition throughout the lifetime of the loans.
                Profil jatuh tempo didasarkan pada data historis                         The maturity profile is based on historical
                yang diamati dan diasumsikan sama pada semua                             observed data and is assumed to be the same
                aset dalam portofolio dan peringkat kredit. Hal ini                      across all assets within a portfolio and credit
                telah didukung oleh analisis historis.                                   grade band. This is supported by historical
                                                                                         analysis.




                                                                159
Page 699
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                     43.     CREDIT RISK (continued)
        e.       Evaluasi penurunan nilai (lanjutan)                         e.       Impairment assessment (continued)
                 Mengukur ECL - Penjelasan input, asumsi dan                          Measuring ECL – Explanation of inputs,
                 teknik estimasi (lanjutan)                                           assumptions and estimation techniques
                                                                                      (continued)
                 EAD 12 bulan dan sepanjang umurnya ditentukan                        The 12 month and lifetime EADs are
                 berdasarkan profil pembayaran yang diharapkan,                       determined based on the expected payment
                 yang bervariasi berdasarkan jenis produk.                            profile, which varies by product type.
             -       Untuk produk yang diamortisasi dan                           -        For amortising products and bullet
                     pinjaman dengan pembayaran di akhir,                                  repayment loans, this is based on the
                     didasarkan pada pembayaran kontraktual                                contractual repayments owed by the
                     yang terutang oleh peminjam selama 12                                 borrower over a 12 month or lifetime
                     bulan atau sepanjang umurnya. Hal ini juga                            basis. This will also be adjusted for any
                     akan disesuaikan dengan pembayaran lebih                              expected overpayments made by a
                     yang diharapkan dari peminjam. Asumsi                                 borrower.    Early    repayment/refinance
                     pembayaran/pembiayaan kembali lebih awal                              assumptions are also incorporated into the
                     juga dimasukkan ke dalam perhitungan.                                 calculation.
             -       Untuk produk revolving, eksposur pada gagal                  -         For revolving products, the exposure at
                     bayar diperkirakan dengan mengambil saldo                              default is predicted by taking current
                     saat ini yang telah ditarik dan menambahkan                            drawn balance and adding a “credit
                     "faktor konversi kredit" yang diharapkan                               conversion factor” which allows for the
                     untuk ditarik dari batas yang tersisa pada                             expected drawdown of the remaining limit
                     saat gagal bayar. Asumsi-asumsi ini                                    by the time of default. These assumptions
                     bervariasi berdasarkan jenis produk dan                                vary by product type and current limit
                     batasan pemanfaatan limit, berdasarkan                                 utilisation band, based on analysis of the
                     analisis dari data standar terkini Bank.                               Bank’s recent default data.
                 LGD ditentukan berdasarkan faktor-faktor yang                        The LGDs are determined based on the factors
                 mempengaruhi pemulihan yang dibuat pasca                             which impact the recoveries made post default.
                 gagal bayar. Hal ini bervariasi berdasarkan jenis                    These vary by product type. These LGD’s are
                 produk. LGD ini dipengaruhi oleh strategi                            influenced by collection strategies, including
                 penagihan, termasuk penjualan dan harga utang                        contracted debt sales and price.
                 kontraktual.
                 Perkiraan informasi ekonomi masa depan                               Forward-looking economic information is also
                 (forward-looking)    juga     termasuk dalam                         included in determining the 12 month and
                 menentukan PD 12 bulan dan sepanjang                                 lifetime PD, EAD and LGD. These assumptions
                 umurnya, EAD dan LGD. Asumsi-asumsi ini                              vary by product type.
                 bervariasi berdasarkan jenis produk.
                 Asumsi yang mendasari perhitungan ECL seperti                        The assumptions underlying the ECL
                 bagaimana profil PD dan lain-lain dipantau dan                       calculation- such as how the maturities profile
                 ditelaah setiap tahun.                                               of the PDs abd others – are monitored and
                                                                                      reviewed on a yearly basis.
                 Tidak ada perubahan signifikan dalam teknik                          There have been no significant changes in
                 estimasi atau asumsi signifikan yang dibuat                          estimation   techniques      or     significant
                 selama periode pelaporan.                                            assumptions made during the reporting period.
                 Informasi perkiraan masa          depan    yang                      Forward-looking information incorporated in
                 tergabung dalam model ECL                                            the ECL models
                 Penilaian SICR dan perhitungan ECL keduanya                          The assessment of SICR and the calculation of
                 menggabungkan informasi berwawasan ke                                ECL       both    incorporate     forward-looking
                 depan. Bank telah melakukan analisis historis dan                    information. The Bank has performed historical
                 mengidentifikasi variabel ekonomi utama yang                         analysis and identified the key economic
                 berdampak pada risiko kredit dan kerugian kredit                     variables impacting credit risk and expected
                 yang      diperkirakan  untuk    masing-masing                       credit losses for each portfolio.
                 portofolio.



                                                               160
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                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                     43.      CREDIT RISK (continued)
       e.   Evaluasi penurunan nilai (lanjutan)                             e.     Impairment assessment (continued)
            Informasi perkiraan masa depan             yang                        Forward-looking information incorporated in
            tergabung dalam model ECL (lanjutan)                                   the ECL models (continued)

            Variabel ekonomi ini dan dampaknya yang terkait                        These economic variables and their associated
            pada PD, EAD dan LGD bervariasi menurut                                impact on the PD, EAD and LGD vary by
            instrumen keuangan. Perkiraan variabel-variabel                        financial instrument. Forecasts of these
            ekonomi ini (skenario ekonomi dasar) disediakan                        economic variables (the base economic
            oleh Bank setiap tahun dan memberikan                                  scenario) are provided by the Bank on a
            pandangan estimasi ekonomi terbaik selama 3                            quarterly basis and provide the best estimate
            (tiga) tahun ke depan. Dampak dari variabel-                           view of the economy over the next 3 (three)
            variabel ekonomi ini pada PD, EAD dan LGD                              years. The impact of these economic variables
            telah ditentukan dengan melakukan analisis                             on the PD, EAD and LGD has been determined
            regresi statistik untuk memahami dampak                                by performing statistical regression analysis to
            perubahan dalam variabel-variabel ini secara                           understand the impact changes in these
            historis pada tingkat standar dan pada                                 variables have had historically on default rates
            komponen-komponen LGD dan EAD.                                         and on the components of LGD and EAD.
            Selain skenario ekonomi, Bank juga menyediakan                         In addition to the base economic scenario, the
            skenario lain yang memungkinkan beserta bobot                          Bank’s Economics team also provide other
            skenario. Jumlah skenario lain yang digunakan                          possible scenarios along with scenario
            ditetapkan berdasarkan analisis setiap jenis                           weightings. The number of other scenarios used
            produk utama untuk memastikan non-linearitas                           is set based on the analysis of each major
            diketahui. Jumlah skenario dan atributnya dinilai                      product type to ensure non-linearities are
            kembali pada setiap tanggal pelaporan. Bobot                           captured. The number of scenarios and their
            skenario ditentukan oleh kombinasi analisis                            attributes are reassessed at each reporting
            statistik   dan     analisa   kredit,   dengan                         date. The scenario weightings are determined
            mempertimbangkan kisaran hasil yang mungkin                            by a combination of statistical analysis and
            masing-masing skenario yang dipilih mewakili.                          expert credit judgement, taking account of the
                                                                                   range of possible outcomes each chosen
                                                                                   scenario is representative of.
            Penilaian SICR dilakukan dengan menggunakan                            The assessment of SICR is performed using the
            PD sepanjang umurnya di masing-masing basis,                           Lifetime PD under each of the base, and the
            dan    skenario     lainnya, dikalikan  dengan                         other scenarios, multiplied by the associated
            pembobotan skenario terkait. Hal ini menentukan                        scenario weighting. This determines whether
            apakah seluruh instrumen keuangan berada                               the whole financial instrument is in Stage 1,
            dalam Tahap 1, Tahap 2, atau Tahap 3 dan                               Stage 2, or Stage 3 and hence whether 12-
            karenanya apakah ECL 12 bulan atau sepanjang                           month or lifetime ECL should be recorded.
            umurnya harus dicatat. Setelah penilaian ini,                          Following this assessment, the Bank measures
            Bank mengukur ECL sebagai probabilitas                                 ECL as either a probability weighted 12 month
            tertimbang ECL 12 bulan (Tahap 1), atau                                ECL (Stage 1), or a probability weighted lifetime
            probabilitas tertimbang ECL sepanjang umurnya                          ECL (Stages 2 and 3). These probability-
            (Tahap 2 dan 3). Probabilitas ECL terbobot ini                         weighted ECLs are determined by running each
            ditentukan dengan menjalankan setiap skenario                          scenario through the relevant ECL model and
            melalui model ECL yang relevan dan                                     multiplying it by the appropriate scenario
            mengalikannya dengan pembobotan skenario                               weighting.
            yang sesuai.




                                                            161
Page 701
                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                      43.    CREDIT RISK (continued)

        e.       Evaluasi penurunan nilai (lanjutan)                          e.    Impairment assessment (continued)

                 Asumsi variabel ekonomi                                            Economic variable assumptions

                 Seperti halnya perkiraan ekonomi, proyeksi dan                     As with any economic forecasts, the projections
                 kemungkinan terjadinya tunduk pada tingkat                         and likelihoods of occurrence are subject to a
                 ketidakpastian bawaan yang tinggi dan oleh                         high degree of inherent uncertainty and
                 karena itu hasil aktual memungkinkan berbeda                       therefore the actual outcomes may be
                 secara signifikan dengan yang diproyeksikan.                       significantly different to those projected. The
                 Bank menganggap ramalan ini untuk mewakili                         Bank considers these forecasts to represent its
                 perkiraan terbaik dari hasil yang mungkin dan                      best estimate of the possible outcomes and has
                 telah menganalisis non-linearitas dan asimetri                     analysed the non-linearities and asymmetries
                 dalam portofolio Bank yang berbeda untuk                           within the Bank’s different portfolios to establish
                 menetapkan bahwa skenario yang dipilih tepat                       that the chosen scenarios are appropriately
                 mewakili berbagai skenario yang memungkinkan.                      representative of the range of possible
                                                                                    scenarios.

                 Penyisihan kerugian                                                Loss allowance

                 Penyisihan kerugian yang diakui pada periode                       The loss allowance recognized in the period is
                 tersebut dipengaruhi oleh berbagai faktor, seperti                 impacted by a variety of factors, as described
                 dijelaskan di bawah ini:                                           below:

             -     Transfer antara Tahap 1 dan Tahap 2 atau 3                      -     Transfers between Stage 1 and Stages 2 or
                   karena instrumen keuangan mengalami                                   3 due to financial instruments experiencing
                   peningkatan (atau penurunan) risiko kredit                            significant increases (or decreases) of credit
                   yang signifikan atau menjadi kredit yang                              risk or becoming credit-impaired in the
                   mengalami penurunan nilai dalam periode                               period, and the consequent “step up” (or
                   tersebut, dan akibatnya “peningkatan” (atau                           “step down”) between 12-month and
                   “penurunan”) antara 12 bulan dan ECL                                  Lifetime ECL;
                   sepanjang umurnya;
             -     Penyisihan     tambahan     untuk   instrumen                   -     Additional allowances for new financial
                   keuangan baru yang diakui selama periode                              instruments recognized during the period,
                   berjalan,    serta    penghentian  pengakuan                          as well as releases for financial instruments
                   instrumen keuangan pada periode tersebut;                             de-recognized in the period;
             -     Dampak pada pengukuran ECL karena                               -     Impact on the measurement of ECL due to
                   perubahan PD, EAD dan LGD pada periode                                changes in PDs, EADs and LGDs in the
                   tersebut, yang timbul dari perubahan input                            period, arising from regular refreshing of
                   secara rutin ke model;                                                inputs to models;
             -     Dampak pada pengukuran ECL karena                               -     Impacts on the measurement of ECL due to
                   perubahan yang dilakukan pada model dan                               changes made to models and assumptions;
                   asumsi; dan                                                           and
             -     Aset keuangan dihentikan pengakuannya                           -     Financial assets derecognized during the
                   selama periode berjalan dan penghapusan                               period and write-offs of allowances related
                   cadangan      terkait   dengan    aset    yang                        to assets that were written off during the
                   dihapusbukukan selama periode berjalan.                               period.




                                                                162
Page 702
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                     43.      CREDIT RISK (continued)

       e.   Evaluasi penurunan nilai (lanjutan)                             e.     Impairment assessment (continued)

            Kebijakan penghapusbukuan                                              Write-off policy

            Bank menghapus aset keuangan, seluruhnya                               The Bank writes off financial assets, in whole or
            atau sebagian, ketika telah melakukan semua                            in part, when it has exhausted all practical
            upaya pemulihan dan telah menyimpulkan bahwa                           recovery efforts and has concluded there is no
            tidak ada ekspektasi yang wajar atas pemulihan.                        reasonable expectation of recovery. Indicators
            Indikator bahwa tidak ada ekspektasi pemulihan                         that there is no reasonable expectation of
            yang masuk akal termasuk (i) menghentikan                              recovery include (i) ceasing enforcement activity
            aktivitas proses hukum dan (ii) ketika metode                          and (ii) where the Bank’s recovery method is
            pemulihan Bank adalah pengambilalihan agunan                           foreclosing on collateral and the value of the
            dan nilai agunan sedemikian rupa sehingga tidak                        collateral is such that there is no reasonable
            ada ekspektasi yang wajar untuk pemulihan                              expectation of recovering in full.
            sepenuhnya.

            Bank dapat menghapusbukukan aset keuangan                              The Bank may write-off financial assets that are
            yang masih mengacu pada enforcement activity.                          still subject to enforcement activity. The
            Jumlah saldo kontraktual dari aset yang                                outstanding contractual amounts of such assets
            dihapusbukukan selama tahun yang berakhir                              written off during the year ended December 31,
            pada tanggal 31 Desember 2023 adalah                                   2023 was Rp629,551. The Bank still seeks to
            Rp629.551. Bank masih berupaya untuk                                   recover amounts it is legally owed in full.
            memulihkan jumlah yang secara legal terutang
            sepenuhnya.

            Modifikasi aset keuangan                                               Modification of financial assets

            Bank dapat melakukan modifikasi persyaratan                            The Bank sometimes modifies the terms of
            pinjaman yang diberikan kepada pelanggan                               loans provided to customers due to commercial
            karena negosiasi ulang, atau untuk pinjaman                            renegotiations, or for distressed loans, with a
            yang bermasalah, dengan maksud untuk                                   view to maximising recovery.
            memaksimalkan pemulihan.

            Kegiatan restrukturisasi tersebut termasuk                             Such restructuring activities include extended
            pengaturan      perpanjangan   jangka    waktu                         payment term arrangements, payment holidays
            pembayaran, fleksibilitas pembayaran dan                               and payment forgiveness. Restructuring policies
            keringanan pembayaran. Kebijakan dan praktik                           and practices are based on indicators or criteria
            restrukturisasi didasarkan pada indikator atau                         which, in the judgement of management,
            kriteria yang, menurut penilaian manajemen,                            indicate that payment will most likely continue.
            mengindikasikan         bahwa      pembayaran                          These policies are kept under continuous
            kemungkinan besar akan berlanjut. Kebijakan ini                        review. Restructuring is most commonly applied
            terus ditinjau terus menerus. Restrukturisasi                          to term loans.
            paling sering diterapkan pada pinjaman
            berjangka.




                                                            163
Page 703
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                   43.     CREDIT RISK (continued)
        e.   Evaluasi penurunan nilai (lanjutan)                           e.     Impairment assessment (continued)

             Modifikasi aset keuangan (lanjutan)                                  Modification of financial assets (continued)
             Risiko gagal bayar aset tersebut setelah                             The risk of default of such assets after
             modifikasi dinilai pada tanggal pelaporan dan                        modification is assessed at the reporting date
             dibandingkan      dengan     risiko    berdasarkan                   and compared with the risk under the original
             ketentuan awal pada saat pengakuan awal, ketika                      terms at initial recognition, when the
             modifikasi tersebut tidak substansial sehingga                       modification is not substantial and so does not
             tidak mengakibatkan penghentian pengakuan                            result in derecognition of the original asset.
             aset awal. Bank memantau kinerja selanjutnya                         The     Bank     monitors    the    subsequent
             dari aset yang dimodifikasi. Bank dapat                              performance of modified assets. The Bank may
             menentukan bahwa risiko kredit telah meningkat                       determine that the credit risk has significantly
             secara signifikan setelah restrukturisasi, sehingga                  improved after restructuring, so that the assets
             aset dipindahkan dari Tahap 3 atau Tahap 2 (ECL                      are moved from Stage 3 or Stage 2 (Lifetime
             sepanjang umurnya) ke Tahap 1 (ECL 12 bulan).                        ECL) to Stage 1 (12-month ECL).
             Bank terus memantau jika terdapat peningkatan                        The Bank continues to monitor if there is a
             risiko   kredit berikutnya   yang   signifikan                       subsequent significant increase in credit risk in
             sehubungan dengan aset tersebut melalui                              relation to such assets through the use of
             penggunaan model spesifik untuk aset yang                            specific models for modified assets.
             dimodifikasi.
             Pemetaan risiko kredit – Treasury                                    Credit risk grading – Treasury
             Untuk instrumen utang dalam portofolio Treasury,                     For debt securities in the Treasury portfolio,
             peringkat kredit lembaga pemeringkat eksternal                       external rating agency credit grade are used.
             digunakan. Peringkat yang digunakan ini diamati                      These published grades are continuously
             dan diperbarui secara berkelanjutan. Tingkat PD                      monitored and updated. The PD's associated
             terkait didasarkan pada tingkat gagal bayar yang                     with each grade are determined based on
             terealisasi seperti yang diterbitkan oleh lembaga                    realised default rates as published by the rating
             pemeringkat.                                                         agency.
             Metode pemeringkatan Bank terdiri dari 25 tingkat                    The Bank's rating method comprises 25 rating
             peringkat. Skala master memberikan masing-                           levels. The master scale assigns each rating
             masing kategori peringkat kisaran probabilitas                       category a specified range of probabilities of
             gagal bayar yang ditentukan, yang stabil dari                        default, which is stable over time. The rating
             waktu ke waktu. Metode penilaian tunduk pada                         methods are subject to an annual validation
             validasi dan kalibrasi ulang tahunan sehingga                        and recalibration so that they reflect the latest
             mencerminkan proyeksi terbaru mengingat                              projections in the light of all actually observed
             semua standar yang sebenarnya diamati.                               default.




                                                             164
Page 704
                                                                                      The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                 (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                                           43.       CREDIT RISK (continued)

       e.   Evaluasi penurunan nilai (lanjutan)                                                     e.       Impairment assessment (continued)

            Kredit yang diberikan dan pembiayaan syariah                                                     Loans and sharia financing

            Berikut ini adalah risiko kredit berdasarkan                                                     Below are credit risks based on the
            klasifikasi evaluasi penurunan nilai pada                                                        allowance     for    impairment    losses
            tanggal 31 Desember 2023 dan 2022:                                                               assessment classification as of December
                                                                                                             31, 2023 and 2022:

                                                                                     31 Desember/
                                                                                     December 31,
                                                                                         2023
                                                             Tahap 1/         Tahap 2/          Tahap 3/           Jumlah/
                                                             Stage 1          Stage 2           Stage 3             Total
            Kredit multiguna                                   24.949.921           48.361            192.741       25.191.023                                 Multiguna loan
            Kredit modal kerja                                  3.178.492          121.848            177.899        3.478.239                          Working capital loan
            Perdagangan besar dan eceran                        2.729.943          148.116            437.951        3.316.010                          Wholesale and retail
            Kredit pegawai                                      2.005.146            2.612             15.745        2.023.503                               Employee loans
            Pertambangan, konstruksi, listrik                                                                                                   Mining, quarrying, electricity
              dan transportasi                                   2.723.010          25.530            558.974        3.307.514                           and transportation
            Kredit kepemilikan rumah                             1.496.088         125.008            231.420        1.852.516                                   Housing loan
            Jasa kemasyarakatan, sosial budaya,                                                                                         Public, social culture, entertainment
              hiburan dan perorangan lainnya                     1.719.947          15.764             48.080        1.783.791               and other individual services
            Pertanian, perburuan dan kehutanan                   1.510.630          42.059            203.509        1.756.198             Agriculture, hunting and forestry
            Industri pengolahan                                  2.343.498          22.053            103.913        2.469.464                           Processing industry
            Kredit usaha rakyat                                  3.709.273          90.788             54.695        3.854.756                      People's business credit
            Perantara keuangan                                   1.631.661          10.586             32.259        1.674.506                      Financial intermediaries
            Linkage program                                        173.634               -                  -          173.634                              Linkage program
            Penyediaan akomodasi dan
              penyediaan makan dan minum                           185.464           5.604             48.670          239.738        Accommodation, food and beverages
            Bukan usaha lainnya dan rumah tangga                 1.231.176           9.719             63.579        1.304.474            Other business and households
            Real estate, usaha persewaan
              dan jasa perusahaan                                  36.424             1.649            15.294            53.367    Real estate, business rental and services
            Kredit Usaha Pembibitan Sapi                                -                 -               641               641               Cattle Breeding Business Loan
            Jasa perorangan yang melayani rumah tangga             15.744               263               528            16.535   Individual service which serve households
            Lain-lain                                              77.134                 -                 -            77.134                                      Others
                                                               49.717.185          669.960          2.185.898       52.573.043
            Cadangan kerugian penurunan nilai                   (367.710)          (74.072)         (869.731)       (1.311.513)            Allowance for impairment losses
            Konvensional - Neto                                49.349.475          595.888          1.316.167       51.261.530                         Conventional - Net

                                                                              Mengalami penurunan nilai/
                                                                                     Impaired
                                                                                                                   Jumlah/
                                                         Tidak mengalami      Individu/          Kolektif/          Total
                                                         penurunan nilai/     Indiviual         Collective
                                                           Not-impaired
            Syariah                                              1.986.968         200.892                  -        2.187.860                                      Sharia
            Cadangan kerugian penurunan nilai                      (17.395)        (35.997)                 -          (53.392)            Allowance for impairment losses
            Syariah - Neto                                       1.969.573         164.895                  -        2.134.468                                Sharia - Net
            Jumlah, neto                                        51.319.048         760.783          1.316.167       53.395.998                                  Total, net




                                                                              165
Page 705
                                                                                             The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                  and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                      (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                                             43.     CREDIT RISK (continued)
        e.   Evaluasi penurunan nilai (lanjutan)                                                     e.     Impairment assessment (continued)
             Kredit yang diberikan                   dan    pembiayaan                                          Loans and sharia financing (continued)
             syariah (lanjutan)

                                                                                         31 Desember/
                                                                                         December 31,
                                                                                             2022

                                                                 Tahap 1/         Tahap 2/           Tahap 3/          Jumlah/
                                                                 Stage 1          Stage 2            Stage 3            Total



               Kredit multiguna                                   23.578.636            37.542            181.718       23.797.896                                 Multiguna loan
               Kredit modal kerja                                  2.400.068           104.398            293.573        2.798.039                          Working capital loan
               Restrukturisasi Covid                               3.160.896            33.974            337.404        3.532.274                       Covid Restructurisation
               Perdagangan besar dan eceran                        1.654.813            91.337            200.612        1.946.762                          Wholesale and retail
               Kredit pegawai                                      2.050.789             3.144             23.193        2.077.126                               Employee loans
               Pertambangan, konstruksi, listrik                                                                                                    Mining, quarrying, electricity
                 dan transportasi                                  1.220.386            11.991            119.168        1.351.545                           and transportation
               Kredit kepemilikan rumah                            1.222.011           116.132            241.184        1.579.327                                   Housing loan
               Jasa kemasyarakatan, sosial budaya,                                                                                          Public, social culture, entertainment
                 hiburan dan perorangan lainnya                      747.574             8.375             25.022          780.971               and other individual services
               Pertanian, perburuan dan kehutanan                    748.259           117.445             67.375          933.079             Agriculture, hunting and forestry
               Industri pengolahan                                 1.614.145            20.003             51.057        1.685.205                           Processing industry
               Kredit usaha rakyat                                 2.393.551            29.099             12.857        2.435.507                      People's business credit
               Perantara keuangan                                    604.442            18.758             24.849          648.049                      Financial intermediaries
               Linkage program                                       216.994                 -                  -          216.994                              Linkage program
               Penyediaan akomodasi dan
                 penyediaan makan dan minum                          129.987             4.617              8.080         142.684          Accommodation, food and beverages
               Bukan usaha lainnya dan rumah tangga                  147.980               914                328         149.222              Other business and households
               Real estate, usaha persewaan
                 dan jasa perusahaan                                  18.096               635             10.566           29.297     Real estate, business rental and services
               Kredit Usaha Pembibitan Sapi                                -                 -              2.142            2.142                Cattle Breeding Business Loan
               Jasa perorangan yang melayani rumah tangga              8.773               294                499            9.566    Individual service which serve households
               Kredit Ketahanan Pangan dan Energi                          -                 -                317              317               Energy and Food Stability Loan
               Kegiatan yang belum jelas batasannya                    2.989                 -                  -            2.989           Limit activities that are not yet clear
               Lain-lain                                             174.194                 -                  -          174.194                                           Others
                                                                  42.094.583           598.658          1.599.944       44.293.185
               Cadangan kerugian penurunan nilai                    (263.059)          (61.303)          (911.041)      (1.235.403)             Allowance for impairment losses
               Konvensional - Neto                                41.831.524           537.355            688.903       43.057.782                          Conventional - Net

                                                                                   Mengalami penurunan nilai/
                                                             Tidak mengalami                Impaired                   Jumlah/
                                                             penurunan nilai/     Individu/           Kolektif/         Total
                                                               Not-impaired       Indiviual          Collective
               Syariah                                              1.986.967          200.892                  -        2.187.859                                       Sharia
               Cadangan kerugian penurunan nilai                      (17.395)         (35.997)                 -          (53.392)             Allowance for impairment losses
               Syariah - Neto                                       1.969.572          164.895                  -        2.134.467                                 Sharia - Net
               Jumlah, neto                                        43.801.096          702.250            688.903       45.192.249                                   Total, net




                                                                                 166
Page 706
                                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                             and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                                          43.      CREDIT RISK (continued)

       e.   Evaluasi penurunan nilai (lanjutan)                                                   e.      Impairment assessment (continued)
            Pemetaan risiko kredit – Treasury (lanjutan)                                                   Credit risk grading – Treasury (continued)
            Kredit yang diberikan dan pembiayaan                                                         Loans and sharia financing (continued)
            syariah (lanjutan)

            Mutasi penyisihan kerugian penurunan nilai                                                   Movement of allowance for impairment
            berdasarkan jenis kredit yang diberikan dan                                                  losses by type of loans and sharia
            pembiayaan syariah:                                                                          financing:

                                                                                   31 Desember/
                                                                                   December 31,
                                                                                       2023
                                                         Modal kerja/       Investasi/       Konsumsi/           Jumlah/
                                                        Working capital    Investment       Consumption           Total

            Saldo awal tahun                                    793.315          199.485             325.812       1.318.612          Balance at beginning of year
            Penyisihan tahun berjalan                           349.480          144.856             181.587         675.923             Provision during the year
            Penghapusan tahun berjalan                        (482.918)           (4.969)          (141.743)       (629.630)            Written-off during the year
            Saldo 31 Desember 2023                              659.877          339.372             365.656       1.364.905        Balance at December 31, 2023
            Penyisihan kerugian atas kredit
             yang mengalami penurunan nilai
             secara individual                                  411.873           90.939            230.012          732.824                 Individual impairment
            Penyisihan kerugian penurunan
              nilai secara kolektif atas kredit yang                                                                                 Collective impairment for non
             tidak mengalami penurunan nilai                    248.004          248.433            135.644          632.081                      impaired loans
            Saldo 31 Desember 2023                              659.877          339.372            365.656        1.364.905        Balance at December 31, 2023
                                                                                                                           -
                                                                                   31 Desember/
                                                                                   December 31,
                                                                                       2022
                                                         Modal kerja/       Investasi/          Konsumsi/        Jumlah/
                                                        Working capital    Investment          Consumption        Total

             Saldo awal tahun                                  1.192.221          257.879            381.317       1.831.417          Balance at beginning of year
             Penyisihan tahun berjalan                           267.676           52.363             67.715         387.754             Provision during the year
             Penghapusan tahun berjalan                        (666.582)        (110.757)          (123.220)       (900.559)            Written-off during the year
             Saldo 31 Desember 2022                              793.315          199.485            325.812       1.318.612        Balance at December 31, 2022
             Penyisihan kerugian atas kredit
              yang mengalami penurunan nilai
              secara individual                                 570.537           92.889               203.467       866.893                  Individual impairment
             Penyisihan kerugian penurunan
               nilai secara kolektif atas kredit yang                                                                                Collective impairment for non
              tidak mengalami penurunan nilai                   222.778          106.596               122.345       451.719                      impaired loans
             Saldo 31 Desember 2022                             793.315          199.485               325.812     1.318.612        Balance at December 31, 2022
                                                                                                                           -




                                                                             167
Page 707
                                                                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                                         and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                             (Expressed in millions of Rupiah, unless otherwise stated)


  43.   RISIKO KREDIT (lanjutan)                                                                                  43.             CREDIT RISK (continued)
        e.   Evaluasi penurunan nilai (lanjutan)                                                                                  e.       Impairment assessment (continued)
             Kredit yang diberikan                              dan       pembiayaan                                                          Loans and sharia financing (continued)
             syariah (lanjutan)
             Tabel di bawah menunjukkan kualitas kredit                                                                                    The table below shows credit quality per
             per jenis instrumen keuangan yang belum                                                                                       class of financial assets (gross of
             jatuh   tempo     dan    tidak  mengalami                                                                                     allowance for impairment losses):
             penurunan nilai (di luar cadangan kerugian
             penurunan nilai):
                                                                                                              December 31,
                                                                                                                  2023

                                                                        Belum jatuh tempo dan tidak           Jatuh tempo
                                                                        mengalami penurunan nilai/             tetapi tidak
                                                                        Neither st due nor impaired            mengalami
                                                                                                               penurunan               Mengalami
                                                                                                Tingkat           nilai/               penurunan
                                                                      Tingkat tinggi/          standar/       Past-due but                nilai/       Jumlah/
                                                                        High grade          Standard grade    not impaired              Impaired        Total
             Biaya perolehan diamortisasi                                                                                                                                                             Amortized cost
              Surat Utang Negara                                           5.440.446                     -                    -                    -    5.440.446                                 Goverment’s bonds
              Reksadana                                                       90.000                     -                    -                    -       90.000                                       Mutual Funds
              Obligasi                                                     2.089.300                     -                    -                    -    2.089.300                                               Bonds
              Sukuk Bank Indonesia                                           450.000                     -                    -                    -      450.000                           Sukuk of Bank Indonesia
              Negotiable Certificate of Deposit                               28.500                     -                    -                    -       28.500                    Negotiable Certificate of Deposit
              Sertifikat Investasi Mudharabah                                                                                                                                                   Interbank Mudarabah
                Antar Bank (SIMA)                                            450.000                     -                    -                    -      450.000                             Investment Cerificate
              Surat kredit berdokumen dalam negeri                            12.913                     -                    -                    -       12.913                                      Domestic L/C
              Wesel                                                              112                     -                    -                    -          112                                                Bill
                                                                           8.561.271                     -                    -                    -    8.561.271

             Nilai wajar melalui pendapatan komprehensif lain                                                                                                        Fair value through other comprehensive income
              Surat Utang Negara                                           7.762.560                     -                    -                    -    7.762.560                                 Goverment’s bonds

             Biaya perolehan diamortisasi                                                                                                                                                            Amortized cost
                                                                                                                                                                                               Currents account with
              Giro pada Bank Indonesia                                      7.971.412                    -                    -                    -    7.971.412                                    Bank Indonesia
              Giro pada Bank lain                                             491.330                    -                    -                    -      491.330                   Currents account with other bank
              Penempatan pada Bank Indonesia                                                                                                                                         Placement with Bank Indonesia
                dan bank lain                                               5.234.721                    -                    -                    -    5.234.721                                   and other bank
              Tagihan reverse repo                                          6.247.318                    -                    -                    -    6.247.318                        Reverse repo receivables
              Tagihan lainnya                                                 223.138                    -                    -                    -      223.138                                  Other receivables
              Kredit yang diberikan dan pembiayaan syariah                                                                                                                                Loans and sharia financing
                Modal kerja                                                             -       14.870.654                    -            679.697     15.550.351                                  Working capital
                Investasi                                                           -            7.846.461                    -            155.818      8.002.279                                       Investment
                Konsumsi                                                            -           30.679.965                    -            528.308     31.208.273                                     Consumption
              Pendapatan bunga yang masih
                akan diterima                                                      -                685.734                   -                    -      685.734                               Interest receivables
             Jumlah                                                       36.491.750            54.082.814                    -          1.363.823     91.938.387                                              Total
             Cadangan kerugian penurunan nilai                                     -              (697.350)                   -           (674.168)    (1.371.518)                 Allowances for impairment losses
             Neto                                                         36.491.750            53.385.464                    -            689.655     90.566.869                                               Net




                                                                                                     168
Page 708
                                                                                                          The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                                and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                   (Expressed in millions of Rupiah, unless otherwise stated)


 43.   RISIKO KREDIT (lanjutan)                                                                               43.          CREDIT RISK (continued)
       e.   Evaluasi penurunan nilai (lanjutan)                                                                            e.        Impairment assessment (continued)
            Kredit yang diberikan                              dan     pembiayaan                                                      Loans and sharia financing (continued)
            syariah (lanjutan)

                                                                                                       December 31,
                                                                                                           2022

                                                                     Belum jatuh tempo dan tidak       Jatuh tempo
                                                                     mengalami penurunan nilai/         tetapi tidak
                                                                     Neither st due nor impaired        mengalami
                                                                                                        penurunan          Mengalami
                                                                                  Tingkat                  nilai/          penurunan
                                                                 Tingkat tinggi/ standar/              Past-due but           nilai/          Jumlah/
                                                                   High grade Standard grade           not impaired         Impaired           Total
            Biaya perolehan diamortisasi                                                                                                                                                     Amortized cost
             Surat Utang Negara                                       12.025.332                   -                   -                 -    12.025.332                                 Goverment’s bonds
             Reksadana                                                    90.000                   -                   -                 -        90.000                                       Mutual Funds
             Obligasi                                                  1.851.074                   -                   -                 -     1.851.074                                               Bonds
             Sukuk Bank Indonesia                                        400.000                   -                   -                 -       400.000                           Sukuk of Bank Indonesia
             Negotiable Certificate of Deposit                            47.237                   -                   -                 -        47.237                    Negotiable Certificate of Deposit
             Sertifikat Investasi Mudharabah                                                                                                                                           Interbank Mudarabah
               Antar Bank (SIMA)                                         325.000                   -                   -                 -       325.000                             Investment Cerificate
             Wesel                                                         2.418                   -                   -                 -         2.418                                                  Bill
                                                                      14.741.062                   -                   -                 -    14.741.062

            Nilai wajar melalui pendapatan komprehensif lain                                                                                                Fair value through other comprehensive income
             Surat Utang Negara                                        8.476.609                   -                   -                 -     8.476.609                                 Goverment’s bonds

            Biaya perolehan diamortisasi                                                                                                                                                    Amortized cost
                                                                                                                                                                                      Currents account with
             Giro pada Bank Indonesia                                  10.786.740                  -                   -                 -    10.786.740                                    Bank Indonesia
             Giro pada Bank lain                                          303.129                  -                   -                 -       303.129                   Currents account with other bank
             Penempatan pada Bank Indonesia                                                                                                                                 Placement with Bank Indonesia
               dan bank lain                                            6.916.329                  -                   -                 -     6.916.329                                   and other bank
             Tagihan spot derivatif                                          361                   -                   -                 -           361                    Spot and derivative receivables
             Tagihan reverse repo                                       7.822.847                  -                   -                 -     7.822.847                        Reverse repo receivables
             Tagihan lainnya                                              286.147                  -                   -                 -       286.147                                  Other receivables
             Kredit yang diberikan dan pembiayaan syariah                                                                                                                        Loans and sharia financing
               Modal kerja                                                     -        10.259.372                     -          708.638     10.968.010                                  Working capital
               Investasi                                                       -         6.448.282                     -          122.376      6.570.658                                       Investment
               Konsumsi                                                        -        28.179.834                     -          478.155     28.657.989                                     Consumption
             Pendapatan bunga yang masih
               akan diterima                                                   -            646.125                    -                  -      646.125                               Interest receivables
            Jumlah                                                    49.333.224        45.533.613                     -        1.309.169     96.176.006                                              Total
            Cadangan kerugian penurunan nilai                                  -          (499.126)                    -         (823.481)    (1.322.607)                 Allowances for impairment losses
            Neto                                                      49.333.224        45.034.487                     -          485.688     94.853.399                                               Net




                                                                                                   169
Page 709
                                                                   The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                             PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                             JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                            NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                            As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                        and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)

  43.   RISIKO KREDIT (lanjutan)                                   43.     CREDIT RISK (continued)
        e.   Evaluasi penurunan nilai (lanjutan)                           e.    Impairment assessment (continued)
             Pemetaan risiko kredit – Treasury (lanjutan)                        Credit risk grading – Treasury (continued)
                Kualitas kredit didefinisikan sebagai berikut:                    The credit quality are defined as follows:
                Tingkat tinggi                                                    High grade
                 i.  Giro pada Bank Indonesia, giro pada bank                     i.     Current accounts with Bank Indonesia,
                     lain, penempatan pada Bank Indonesia                                current accounts with other banks,
                     dan bank lain yaitu giro atau penempatan                            placements with Bank Indonesia and other
                     pada institusi Pemerintah, transaksi                                banks are current accounts or placements
                     dengan bank yang memiliki reputasi baik                             with    the     governmental     institutions,
                     dengan tingkat kemungkinan gagal bayar                              transacted with reputable banks with low
                     atas kewajiban yang rendah.                                         probability of insolvency.
                 ii. Kredit yang diberikan dan pembiayaan                         ii.    Loans and sharia financing, interest
                     syariah, bunga yang masih akan diterima,                            receivables and third party receivables are
                     dan tagihan kepada pihak ketiga yaitu                               borrowers with very satisfactory track
                     debitur dengan riwayat pembayaran yang                              record of loan repayment and whose
                     sangat baik dan tidak pernah menunggak                              accounts did not turn past due during the
                     sepanjang jangka waktu kredit, debitur                              term of the loan; borrowers with high
                     dengan stabilitas dan keragaman yang                                degree of stability and diversity; has
                     tinggi; memiliki akses setiap saat untuk                            access to raise substantial amounts of
                     memperoleh pendanaan dalam jumlah                                   funds through public market at any time;
                     besar dari pasar terbuka; memiliki                                  very strong debt service capacity and has
                     kemampuan membayar yang kuat dan                                    conservative financial position ratios.
                     rasio-rasio   posisi    keuangan    yang
                     konservatif.
                iii. Efek-efek dan obligasi Pemerintah yaitu                      iii.   Securities and Government bonds are
                     surat berharga yang dikeluarkan oleh                                Sovereign securities; investment grade
                     Pemerintah, efek-efek dan obligasi yang                             securities and bonds with a rating of at
                     termasuk dalam investment grade dengan                              least BBB- (Pefindo) or Baaa3 (Moody’s).
                     rating minimal BBB- (Pefindo) atau Baaa3
                     (Moody’s).
                Tingkat standar                                                   Standard grade
                 i.   Giro dan penempatan pada bank lain                          i.  Current accounts and placements with
                      yaitu giro atau penempatan pada bank                            other banks are current accounts or
                      lokal yang tidak terdaftar di bursa.                            placements with the local banks not listed
                                                                                      in the stock exchange.
                  ii. Kredit yang diberikan dan pembiayaan                        ii. Loans and sharia financing, interest
                      syariah, bunga yang masih akan diterima,                        receivable and third party receivables who
                      dan tagihan kepada pihak ketiga yaitu                           are borrowers with an average track record
                      debitur dengan riwayat pembayaran yang                          of loan repayment and whose accounts did
                      baik dan tidak pernah menunggak 90 hari                         not turn past due for 90 days and over,
                      atau lebih; akses terbatas ke pasar modal                       small corporations with limited access to
                      atau ke pasar keuangan lainnya; tingkat                         public capital markets or to alternative
                      pendapatan dan kinerja keseluruhan                              financial market; volatility of earnings and
                      tidak    stabil;  memiliki    kemampuan                         overall performance; debt service capacity
                      membayar yang cukup.                                            is adequate.
                 iii. Efek-efek dan obligasi Pemerintah yaitu                    iii. Securities and Government bonds are
                      efek-efek dan obligasi dengan rating                            securities and bonds with a rating between
                      antara idBB+ sampai dengan idB                                  idBB+ to idB (Pefindo) or Ba1 to B2
                      (Pefindo) atau Ba1 sampai dengan B2                             (Moody’s).
                      (Moody’s).




                                                             170
Page 710
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)


  44.   RISIKO PASAR                                                        44.      MARKET RISK
        Risiko pasar adalah risiko yang terjadi pada posisi                          Market risk is the risks on the statement of financial
        laporan posisi keuangan dan rekening administratif,                          position and administrative accounts due to changes
        karena adanya perubahan variabel pasar. Variabel                             in market variables. Market variables consist of
        pasar seperti tingkat bunga dan nilai tukar. Risiko pasar                    interest rates and exchange rates. Market risk is an
        hampir melekat pada seluruh kegiatan operasional                             inherent risk in most of the Bank’s operational
        Bank, baik pada banking book maupun trading book.                            activities involving the banking books and the trading
                                                                                     books.
        Pengelolaan risiko pasar dilakukan sesuai dengan                             Management of market risk is performed in
        kebijakan dan prosedur Bank yang berkaitan dengan                            accordance with the Bank’s policies and procedures
        produk dan jasa serta aktivitas treasury dan risiko yang                     related with the products and services and also
        melekat pada bisnis.                                                         treasury activities and the inherent risk of the
                                                                                     business.
        Risiko suku bunga timbul akibat perubahan harga                              Interest rate risk is risk as the effect of changes in
        instrumen keuangan dari posisi trading book atau                             the financial instrument prices from the trading book
        akibat perubahan nilai ekonomis posisi banking book,                         position or the effect of changes of the economic
        karena perubahan suku bunga.                                                 value position of the banking book because of the
                                                                                     change in the interest rate.
        Dalam mengelola risiko suku bunga dilakukan pada                             Management of interest rate risk is performed on the
        eksposur banking book, dengan memperhatikan posisi                           banking book exposure by considering the gap
        gap aset dan liabilitas Bank yang sensitif terhadap                          position of the Bank’s assets and liabilities, which
        pergerakan suku bunga yang mempengaruhi stabilitas                           are sensitive to interest rate movements, which
        tingkat profitabilitas Bank.                                                 influence the stability of the Bank’s profitability level.
        Tabel di bawah ini merupakan rata-rata tingkat suku                          The tables below summarize the average of
        bunga kontraktual per tahun untuk aset dan liabilitas                        contractual interest rates per annum for significant
        keuangan yang signifikan pada tanggal 31 Desember                            financial assets and liabilities as of December 31,
        2023 dan 2022:                                                               2023 and 2022:
                                                                   31 Desember/
                                                                   December 31,
                                                                       2023
                                                                                Dolar
                                                                           Amerika Serikat/
                                                                            United States
                                                          Rupiah               Dollar
                                                            %                     %
        Aset                                                                                                                                        Assets
        Giro pada Bank Indonesia                          0,00%                   0,00%                              Current accounts with Bank Indonesia
        Giro pada bank lain                               0,10%                   0,89%                                 Current accounts with other banks
        Penempatan pada Bank Indonesia                                                                                   Placements with Bank Indonesia
         dan bank lain                                    6,06%                   5,70%                                                 and other banks
        Surat-surat berharga                              5,63%                   0,00%                                              Marketable securities
        Surat berharga yang dijual                                                                                              Marketable securities sold
         dengan janji dibeli kembali                      6,46%                   0,00%                                    under repurchased agreement
        Surat berharga yang dibeli                                                                                        Marketable securities purchased
         dengan janji dijual kembali                       6,32%                  0,00%                                          under resale agreement
        Kredit yang diberikan dan pembiayaan syariah   10.50%-12.75%              0,00%                                         Loans and sharia financing
        Liabilitas                                                                                                                             Liabilities
        Simpanan dari nasabah                          0.00% - 3.51%         0.00% - 1.65%                                       Deposits from customers
        Simpanan dari bank lain                        0.00% - 3.43%               -                                            Deposits from other banks




                                                                   171
Page 711
                                                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                  (Expressed in millions of Rupiah, unless otherwise stated)

  44.   RISIKO PASAR (lanjutan)                                                                          44.      MARKET RISK (continued)

                                                                                    ='1. Neraca Aktiva'!F2
                                                                                        December 31,
                                                                                             2022
                                                                                                        Dolar
                                                                                                  Amerika Serikat/
                                                                                                    United States
                                                                                 Rupiah                 Dollar
                                                                                   %                      %
        Aset                                                                                                                                                                           Assets
        Giro pada Bank Indonesia                                                 0,00%                         0,00%                                    Current accounts with Bank Indonesia
        Giro pada bank lain                                                      0,02%                         0,04%                                       Current accounts with other banks
        Penempatan pada Bank Indonesia                                                                                                                      Placements with Bank Indonesia
         dan bank lain                                                           1,33%                         0,47%                                                       and other banks
        Surat-surat berharga                                                     7,99%                         0,00%                                                    Marketable securities
        Surat berharga yang dijual                                                                                                                                 Marketable securities sold
         dengan janji dibeli kembali                                             5,38%                         0,00%                                          under repurchased agreement
        Surat berharga yang dibeli                                                                                                                           Marketable securities purchased
         dengan janji dijual kembali                                          5,80%                            0,00%                                                under resale agreement
        Kredit yang diberikan dan pembiayaan syariah                      10.50%-12.75%                        0,00%                                               Loans and sharia financing

        Liabilitas                                                                                                                                                                Liabilities
        Simpanan dari nasabah                                             0.00% - 2.74%                  0.00% - 0.16%                                              Deposits from customers
        Simpanan dari bank lain                                           0.00% - 2.27%                        -                                                   Deposits from other banks


        Tabel berikut mengikhtisarkan eksposur Bank terhadap                                                      The table below summarizes the Bank’s exposure to
        risiko tingkat suku bunga (gross) yang mungkin                                                            interest rate risk (gross) which may affect the future
        berdampak kepada arus kas di masa depan pada                                                              cash flows as of December 31, 2023 and 2022:
        tanggal 31 Desember 2023 dan 2022:

                                                                                             31 Desember/
                                                                                             December 31,
                                                                                                 2023
                                                                                      Suku bunga mengambang/
                                                                                        Floating interest rate
                                                               3 bulan tetapi
                                                              tidak lebih dari                                                Tidak
                                           Tidak lebih dari       1 tahun/                                Suku bunga        dikenakan
                                               3 bulan/        3 months but         1 tahun dan              tetap/          bunga/
                                           Not more than         less than             lebih/            Fixed interest    Non-interest        Total/
                                              3 months             1 year          1 year and up              rate           bearing           Total
        Aset keuangan                                                                                                                                                            Financial assets
        Kas                                     2.652.775                    -                   -                     -                  -     2.652.775                                    Cash
                                                                                                                                                                            Current accounts with
        Giro pada Bank Indonesia                7.971.412                    -                   -                     -                  -     7.971.412                        Bank Indonesia
        Giro pada bank lain                       490.253                    -                   -                     -                  -       490.253       Current accounts with other banks
        Penempatan pada Bank Indonesia                                                                                                                           Placements with Bank Indonesia
          dan bank lain                         5.229.695                    -                   -                     -                  -     5.229.695                       and other banks
        Surat-surat berharga                                                                                                                                                 Marketable securities
          Biaya perolehan diamortisasi          2.334.459          1.481.901             4.744.401                     -                  -     8.560.761                        Amortized cost
          Nilai wajar melalui pendapatan                                                                                                                                 Fair value through other
            komprehensif lain                   7.762.560                    -                   -                     -                  -     7.762.560                  comprehensive income
        Surat berharga dijual dengan                                                                                                                                   Marketable securities sold
          janji dibeli kembali                  6.948.304                    -                       -                 -                  -     6.948.304         under repurchased agreement
        Surat berharga dibeli dengan                                                                                                                             Marketable securities purchased
          janji dijual kembali                  6.247.318                    -                   -                     -                  -     6.247.318               under resale agreement
        Tagihan lainnya                           223.138                    -                   -                     -                  -       223.138                         Other receivable
        Kredit yang diberikan dan
          pembiayaan syariah                                                                                                                                           Loans and sharia financing
            Modal kerja                                  -                   -                   -          15.550.351                    -    15.550.351                     Working capital
            Investasi                                    -                   -                   -           8.002.279                    -     8.002.279                         Investment
            Konsumsi                                     -                   -                   -          31.208.273                    -    31.208.273                       Consumption
        Pendapatan bunga yang
          masih akan diterima                     287.221             14.280               384.233                   -                    -       685.734                      Interest receivable
        Jumlah aset keuangan                   40.147.135          1.496.181             5.128.634          54.760.903                    -   101.532.853                    Total financial assets
        Liabilitas keuangan                                                                                                                                                   Financial liabilities
        Liabilitas segera                         987.604                    -                   -                     -                  -      987.604             Obligations due immediately
        Simpanan dari nasabah                                                                                                                                           Deposits from customers
          Giro                                 20.926.363                  -                     -                   -                 -       20.926.363                      Current accounts
          Tabungan                             28.815.896                  -                     -                   -                 -       28.815.896                     Savings accounts
          Deposito berjangka                            -                  -                     -          28.454.651                 -       28.454.651                         Time deposits
        Simpanan dari bank lain                 2.570.985              8.260                   500                   -                 -        2.579.745             Deposits from other banks
        Pinjaman yang diterima                          -            530.156                     -                   -            66.821          596.977                              Borrowings
        Beban yang masih harus dibayar            504.748                  -                     -                   -                 -          504.748                      Accrued expenses
        Liabilitas lain-lain                      779.314                  -                     -                   -                 -          779.314                          Other liabilities
        Jumlah liabilitas keuangan             54.584.910            538.416                   500          28.454.651            66.821       83.645.298                 Total financial liabilities
        Gap repricing suku bunga, neto        (14.437.775)           957.765             5.128.134          26.306.252           (66.821)      17.887.555             Net interest repricing gap




                                                                                          172
Page 712
                                                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                            (Expressed in millions of Rupiah, unless otherwise stated)


 44.   RISIKO PASAR (lanjutan)                                                                        44.        MARKET RISK (continued)

       Tabel berikut mengikhtisarkan eksposur Bank terhadap                                                      The table below summarizes the Bank’s exposure to
       risiko tingkat suku bunga (gross) yang mungkin                                                            interest rate risk (gross) which may affect the future
       berdampak kepada arus kas di masa depan pada                                                              cash flows as of December 31, 2023 and 2022
       tanggal 31 Desember 2023 dan 2022 (lanjutan):                                                             (continued):
                                                                                         31 Desember/
                                                                                         December 31,
                                                                                             2022
                                                                                  Suku bunga mengambang/
                                                                                    Floating interest rate
                                                              3 bulan tetapi
                                                             tidak lebih dari                                              Tidak
                                          Tidak lebih dari       1 tahun/                               Suku bunga       dikenakan
                                              3 bulan/        3 months but       1 tahun dan               tetap/         bunga/
                                          Not more than         less than           lebih/             Fixed interest   Non-interest        Total /
                                             3 months             1 year        1 year and up               rate          bearing           Total
       Aset keuangan                                                                                                                                                      Financial assets
       Kas                                     1.988.262                    -               -                       -                  -     1.988.262                                Cash
                                                                                                                                                                     Current accounts with
       Giro pada Bank Indonesia               10.786.740                    -               -                       -                  -    10.786.740                    Bank Indonesia
       Giro pada bank lain                       302.688                    -               -                       -                  -       302.688   Current accounts with other banks
       Penempatan pada Bank Indonesia                                                                                                                     Placements with Bank Indonesia
         dan bank lain                         6.913.175                    -               -                       -                  -     6.913.175                   and other banks
       Surat-surat berharga                                                                                                                                           Marketable securities
         Biaya perolehan diamortisasi          1.578.463          4.995.096         8.167.102                       -                  -    14.740.661                    Amortized cost
         Nilai wajar melalui pendapatan                                                                                                                           Fair value through other
           komprehensif lain                            -                   -       8.476.609                       -                  -     8.476.609              comprehensive income
       Surat berharga dijual dengan                                                                                                                             Marketable securities sold
         janji dibeli kembali                  4.095.066                    -                   -                   -                  -     4.095.066     under repurchased agreement
       Surat berharga dibeli dengan                                                                                                                       Marketable securities purchased
         janji dijual kembali                  7.822.847                    -               -                       -                  -     7.822.847           under resale agreement
       Tagihan lainnya                           286.147                    -               -                       -                  -       286.147                     Other receivable
       Kredit yang diberikan dan
         pembiayaan syariah                                                                                                                                     Loans and sharia financing
           Modal kerja                                  -                   -               -              10.968.010                  -    10.968.010                 Working capital
           Investasi                                    -                   -               -               6.570.658                  -     6.570.658                     Investment
           Konsumsi                                     -                   -               -              28.657.989                  -    28.657.989                   Consumption
       Pendapatan bunga yang
         masih akan diterima                      74.213             14.396           557.516                       -                  -       646.125                  Interest receivable
       Jumlah aset keuangan                   33.847.601          5.009.492        17.201.227              46.196.657                  -   102.254.977                Total financial assets

       Liabilitas keuangan                                                                                                                                             Financial liabilities
       Liabilitas segera                         872.514                    -               -                       -                  -       872.514        Obligations due immediately
       Simpanan dari nasabah                                                                                                                                     Deposits from customers
         Giro                                 23.634.773                  -                 -                       -               -       23.634.773                  Current accounts
         Tabungan                             26.343.817                  -                 -                       -               -       26.343.817                 Savings accounts
         Deposito berjangka                            -                  -                 -              31.788.793               -       31.788.793                     Time deposits
       Simpanan dari bank lain                 3.334.563              4.560                 -                       -               -        3.339.123         Deposits from other banks
       Pinjaman yang diterima                          -            481.532                 -                       -          71.867          553.399                          Borrowings
       Beban yang masih harus dibayar            520.840                  -                 -                       -               -          520.840                  Accrued expenses
       Liabilitas lain-lain                      550.119                  -                 -                       -               -          550.119                      Other liabilities
       Jumlah liabilitas keuangan             55.256.626            486.092                 -              31.788.793          71.867       87.603.378             Total financial liabilities
       Gap repricing suku bunga, neto        (21.409.025)         4.523.400        17.201.227              14.407.864         (71.867)      14.651.599         Net interest repricing gap


       Tabel berikut menunjukkan sensitivitas terhadap                                                           The following table demonstrates the sensitivity to a
       kemungkinan perubahan satu poin presentase suku                                                           reasonable possible change one percentage point in
       bunga yang wajar, dengan semua variabel lainnya                                                           interest rates, with all other variables held constant,
       tetap konstan, dalam laporan laba rugi dan penghasilan                                                    of the Bank’s statements of profit or loss and other
       komprehensif lain Bank. Sensitivitas laporan laba rugi                                                    comprehensive income. The sensitivity of the
       komprehensif adalah dampak dari perubahan asumsi                                                          statement of profit or loss and other comprehensive
       suku bunga pada laporan laba rugi dan penghasilan                                                         income is the effect of the assumed changes in
       komprehensif lain pada periode tersebut. Sensitivitas                                                     interest rates on the statement of comprehensive
       total laba atau rugi didasarkan pada asumsi bahwa ada                                                     income for the period. The total sensitivity of profit or
       pergeseran paralel pada kurva hasil.                                                                      loss is based on the assumption that there are
                                                                                                                 parallel shifts in the yield curve.

                                                                                                    2023
                                                                        Kenaikan/                                 Penurunan/
                                                                        Increase                                   Decrease
       Pengaruh terhadap laporan laba rugi                                                                                                    Impact to statement of profit or loss
         dan penghasilan komprehensif lain                                            62.414                                 (62.414)         and other comprehensive income



                                                                                      173
Page 713
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)             (Expressed in millions of Rupiah, unless otherwise stated)

  44.   RISIKO PASAR (lanjutan)                                     44.     MARKET RISK (continued)

        Bank memiliki eksposur terhadap risiko tingkat suku                The Bank has other exposure to interest rate risks in
        bunga dalam mata uang Dolar Singapura, Dolar                       Singapore Dollar, United States Dollar, Euro and
        Amerika Serikat, Euro dan lainnya.                                 others.

        Risiko nilai tukar adalah risiko nilai instrumen keuangan          Foreign exchange risk is the risk on the financial
        yang akan berfluktuasi karena adanya perubahan                     instruments value, which will fluctuate due to
        dalam nilai tukar valuta asing.                                    exchange rate volatility.

        Risiko mata uang adalah kemungkinan kerugian                       Foreign currency risk is the probability of loss of
        pendapatan yang timbul dari perubahan kurs valuta                  earnings arising from changes in foreign exchange
        asing. Bank mengelola exposure terhadap pengaruh                   rates. The Bank manages exposure to effects of
        fluktuasi nilai tukar mata uang asing dengan                       fluctuations in foreign currency exposure within the
        mempertahankan risiko mata uang asing dalam                        existing regulatory guidelines (i.e. maintaining the
        pedoman peraturan yang ada (yakni menjaga Posisi                   Net Open Position based on Bank Indonesia
        Devisa Neto sesuai dengan peraturan Bank Indonesia).               regulations).

        Pada tanggal 31 Desember 2023 dan 2022, pengaruh                   As of December 31, 2023 and 2022, the effect of
        nilai tukar mata uang asing tidak signifikan terhadap              foreign exchange rates fluctuations is insignificant to
        Bank.                                                              the Bank.


  45.   RISIKO LIKUIDITAS                                           45.     LIQUIDITY RISK

        Risiko likuiditas adalah risiko akibat ketidakmampuan               Liquidity risk is the risk which is caused by the
        Bank untuk memenuhi liabilitas yang jatuh tempo dari                Bank’s inability to fulfil its obligations when they
        sumber pendanaan arus kas dan/atau dari aset likuid                 become due from cash flow financing sources
        berkualitas tinggi yang dapat diagunkan tanpa                       and/or high quality liquid assets that can be pledged
        mengganggu aktivitas dan kondisi keuangan Bank.                     without affecting the Bank’s activities and financial
                                                                            condition.

        Bank    melakukan      pengukuran      risiko likuiditas            The Bank measures liquidity risk using the Liquidity
        menggunakan Liquidity Risk Model dengan metodologi                  Risk Model based on maturity profile gap
        maturity profile gap. Pengelolaan kondisi likuiditas                methodology. Daily liquidity condition management
        harian dilakukan oleh Unit Treasury dan perubahan                   is performed by the Treasury Unit and external and
        eksternal serta makro ekonomi yang terjadi dengan                   macro economic changes are immediately informed,
        segera diinformasikan dan diambil strategi serta                    and strategy and internal policies are undertaken,
        kebijakan internal antara lain melalui mekanisme Asset              among others, through the Asset and Liabilities
        and Liabilities Committee (ALCO).                                   Committee (ALCO) mechanism.




                                                              174
Page 714
                                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                        PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                        JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                       NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                       As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                   and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                      (Expressed in millions of Rupiah, unless otherwise stated)


 45.   RISIKO LIKUIDITAS (lanjutan)                                                             45.        LIQUIDITY RISK (continued)
       Rasio dari aset likuid neto terhadap simpanan nasabah                                               The ratio of net liquid assets to deposits from
       adalah sebagai berikut:                                                                             customers are as follows:
                                                                31 Desember/                          31 Desember/
                                                                December 31,                          December 31,
                                                                    2023                                  2022
       Kas dan setara kas                                            16.350.238                                19.994.460                             Cash and cash equivalent
       Surat berharga yang dijual                                                                                                                     Marketable securities sold
         dengan janji dibeli kembali                                  8.303.663                                 4.095.066                          under purchased agreement
       Tagihan reverse repo                                           6.247.318                                 7.822.847                            Reverse repo receivables
       Simpanan dari bank lain                                       (2.540.889)                               (3.282.553)                            Deposits from other banks
       Jumlah                                                        28.360.330                                28.629.820                                                  Total
       Simpanan dari nasabah                                         78.196.910                                81.767.383                             Deposits from customers
       Rasio aset likuid neto terhadap                                                                                                      Ratio of net liquid assets to deposit
         simpanan dari nasabah                                             36,27%                                  35,01%                                      from customers

       Tabel jatuh tempo berikut menyajikan informasi                                                      The following maturity tables provide information
       mengenai perkiraan sisa jatuh tempo dari aset dan                                                   about the expected maturities within which financial
       liabilitas keuangan (pokok saja) pada tanggal 31                                                    assets and liabilities (principal only) as of December
       Desember 2023 dan 2022:                                                                             31, 2023 and 2022:
                                                                                  31 Desember/
                                                                                  December 31,
                                                                                      2023
                                                           Kurang dari 1                                                           Lebih dari 12
                                                              bulan/                                                                  bulan/
                                         Nilai tercatat/    Less than 1     1- 3 bulan/         3 - 6 bulan/       6 - 12 bulan/   More than 12
                                         Carrying value       month          months               months              months         months
       Aset keuangan                                                                                                                                                    Financial assets
       Kas                                    2.652.775       2.652.775                   -                    -               -               -                                    Cash
                                                                                                                                                                   Current accounts with
       Giro pada Bank Indonesia               7.971.412       7.073.597                   -                    -               -        897.815                         Bank Indonesia
       Giro pada bank lain                      490.253         490.253                   -                    -               -              -        Current accounts with other banks
       Penempatan pada Bank Indonesia                                                                                                                   Placements with Bank Indonesia
        dan bank lain                         5.229.695       5.228.200           1.495                        -               -               -                       and other banks
       Surat-surat berharga                                                                                                                                         Marketable securities
        Biaya perolehan diamortisasi          8.560.761         830.243       1.504.216             783.350             698.551       4.744.401                         Amortized cost
        Nilai wajar melalui pendapatan                                                                                                                          Fair value through other
          komprehensif lain                   7.762.560       7.732.011          30.549                        -               -               -                  comprehensive income
       Surat berharga dijual dengan                                                                                                                           Marketable securities sold
        janji dibeli kembali                  6.948.304       6.948.304                   -                    -               -               -         under repurchased agreement
       Surat berharga dibeli dengan                                                                                                                     Marketable securities purchased
        janji dijual kembali                  6.247.318       6.197.612          49.706                        -               -               -               under resale agreement
       Tagihan lainnya                          223.138         223.138               -                        -               -               -                         Other receivable
       Kredit yang diberikan
       pembiayaan syariah                                                                                                                                     Loans and sharia financing
          Modal kerja                        14.890.474         271.543         832.593           2.530.760           2.766.875       8.488.703                      Working capital
          Investasi                           7.662.909          30.414           7.589              15.135             225.659       7.384.112                          Investment
          Konsumsi                           30.842.615          17.031         144.205             119.894             513.914      30.047.571                        Consumption
       Pendapatan bunga yang
        masih akan diterima                    685.734          251.395          35.826               8.246               6.034         384.233                       Interest receivable
       Jumlah                              100.167.948       37.946.516       2.606.179           3.457.385           4.211.033      51.946.835                                     Total
       Liabilitas keuangan                                                                                                                                           Financial liabilities
       Liabilitas segera                        987.605         987.605               -                   -                   -               -             Obligations due immediately
       Simpanan dari nasabah                 78.196.910      22.457.975       5.462.113           2.436.735           7.344.737      40.495.350                Deposits from customers
       Simpanan dari bank lain                2.579.744       2.541.704          29.280                  60               8.200             500              Deposits from other banks
       Pinjaman yang diterima                   596.978         189.984               -                   -                   -         406.994                              Borrowings
       Beban yang masih harus dibayar           504.748         504.748               -                   -                   -               -                       Accrued expenses
       Liabilitas lain-lain                     779.314         779.314               -                   -                   -               -                          Other liabilities
       Jumlah                                83.645.299      27.461.330       5.491.393           2.436.795           7.352.937      40.902.844                                     Total
       Perbedaan jatuh tempo                 16.522.649      10.485.186      (2.885.214)          1.020.590          (3.141.904)     11.043.991                            Maturity gap




                                                                                  175
Page 715
                                                                                              The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                        PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                        JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                       NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                       As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                   and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                       (Expressed in millions of Rupiah, unless otherwise stated)

  45.   RISIKO LIKUIDITAS (lanjutan)                                                          45.      LIQUIDITY RISK (continued)

        Tabel jatuh tempo berikut menyajikan informasi                                                 The following maturity tables provide information
        mengenai perkiraan sisa jatuh tempo dari aset dan                                              about the expected maturities within which financial
        liabilitas keuangan (pokok saja) pada tanggal 31                                               assets and liabilities (principal only) as of December
        Desember 2023 dan 2022 (lanjutan):                                                             31, 2023 and 2022 (continued):
                                                                                  31 Desember/
                                                                                  December 31,
                                                                                      2022
                                                            Kurang dari 1                                                        Lebih dari 12
                                          Nilai tercatat/      bulan/       1- 3 bulan/       3 - 6 bulan/       6 - 12 bulan/      bulan/
                                          Carrying value     Less than 1     months             months              months       More than 12
                                                               month                                                               months
        Aset keuangan                                                                                                                                             Financial assets
        Kas                                    1.988.262       1.988.262                  -                  -               -               -                                Cash
                                                                                                                                                             Current accounts with
        Giro pada Bank Indonesia              10.786.740         230.541                  -                  -               -     10.556.199                     Bank Indonesia
        Giro pada bank lain                      302.688         302.688                  -                  -               -              -    Current accounts with other banks
        Penempatan pada Bank Indonesia                                                                                                            Placements with Bank Indonesia
         dan bank lain                         6.913.175       6.306.518        606.657                      -               -               -                   and other banks
        Surat-surat berharga                                                                                                                                  Marketable securities
         Biaya perolehan diamortisasi         14.740.661         725.515        852.948         2.367.794           2.627.302       8.167.102                     Amortized cost
         Nilai wajar melalui pendapatan                                                                                                                   Fair value through other
           komprehensif lain                   8.476.609               -                  -                  -               -      8.476.609               comprehensive income
        Surat berharga dijual dengan                                                                                                                    Marketable securities sold
         janji dibeli kembali                  4.095.066       4.095.066                  -                  -               -               -     under repurchased agreement
        Surat berharga dibeli dengan                                                                                                              Marketable securities purchased
         janji dijual kembali                  7.822.847       7.440.160                  -                  -        192.726         189.961            under resale agreement
        Tagihan lainnya                          286.147         286.147                  -                  -              -               -                      Other receivable
        Kredit yang diberikan
        pembiayaan syariah                                                                                                                              Loans and sharia financing
           Modal kerja                        10.174.698         474.092        591.709         1.027.046           1.904.233       6.177.618                  Working capital
           Investasi                           6.371.172          35.082          2.414             7.284              32.541       6.293.851                      Investment
           Konsumsi                           28.332.175          16.380         25.106            68.179             320.447      27.902.063                    Consumption
        Pendapatan bunga yang
         masih akan diterima                    646.125           25.795         48.418             9.901               4.495         557.516                   Interest receivable
        Jumlah                              100.936.365       21.926.246      2.127.252         3.480.204           5.081.744      68.320.919                                 Total

        Liabilitas keuangan                                                                                                                                    Financial liabilities
        Liabilitas segera                        916.091         916.091              -                 -                   -               -         Obligations due immediately
        Simpanan dari nasabah                 81.767.383      11.214.472     16.200.878         1.699.788          10.878.340      41.773.905            Deposits from customers
        Simpanan dari bank lain                3.339.123       3.287.933         46.630                60               4.500               -          Deposits from other banks
        Pinjaman yang diterima                   553.399         150.517              -                 -                   -         402.882                          Borrowings
        Beban yang masih harus dibayar           520.840         520.840              -                 -                   -               -                   Accrued expenses
        Liabilitas lain-lain                     550.119         550.119              -                 -                   -               -                      Other liabilities
        Jumlah                                87.646.955      16.639.972     16.247.508         1.699.848          10.882.840      42.176.787                                 Total
        Perbedaan jatuh tempo                 13.289.410       5.286.274    (14.120.256)        1.780.356          (5.801.096)     26.144.132                         Maturity gap



  46.   RISIKO OPERASIONAL                                                                    46.      OPERATIONAL RISK

        Risiko operasional adalah risiko akibat ketidakcukupan                                         Operational risk is the risk resulting from inadequate
        dan/atau tidak berfungsinya proses internal, kesalahan                                         and/or failure of internal processes, people,
        manusia, kegagalan sistem, dan/atau adanya kejadian-                                           systems, and/or from external events which affect
        kejadian eksternal yang mempengaruhi operasional                                               the Bank’s operations.
        Bank.

        Dalam mengelola risiko operasional, risk owner                                                 In managing operational risk, the risk owner is
        bertanggung jawab atas risiko yang terjadi pada                                                responsible for the risk that occurs in the respective
        unitnya masing-masing. Tata cara pengendalian risiko                                           units. Risk management is regulated in the Bank’s
        tersebut diatur dalam kebijakan Bank secara                                                    overall policies and operational procedures in each
        menyeluruh dan prosedur operasional pada setiap unit.                                          unit.




                                                                                176
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PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 46.   RISIKO OPERASIONAL (lanjutan)                                46.      OPERATIONAL RISK (continued)

       Metode dan kebijakan dalam pengendalian risiko                        The methods and policies involving operational risk
       operasional dilaksanakan diantaranya melalui:                         management are performed, among others, through
                                                                             the following:
       i.     Pengkajian terhadap kebijakan, pedoman, dan                   i.     Evaluation of internal control policies, guidance,
              prosedur pengendalian internal sesuai dengan                         and procedures in accordance with the banking
              kondisi    perkembangan    dunia   perbankan,                        industry development, government policies, and
              kebijakan pemerintah dan limitasi operasional                        pre-determined operational limits;
              yang telah ditetapkan;
       ii.    Pengkajian dan penerapan Disaster Recovery                    ii.    Evaluation and implementation of a Disaster
              Plan sebagai langkah antisipasi atas kejadian                        Recovery Plan as the anticipated procedures to
              internal maupun eksternal yang berpotensi                            be applied during internal and external potential
              menimbulkan kerugian;                                                loss events;
       iii.   Tindakan koreksi terhadap hasil temuan audit;                 iii.   Implementing corrective actions based on audit
              dan                                                                  results; and
       iv.    Pengkajian dari penerapan Rencana Kontinjensi                 iv.    Reviewing the implementation of the Business
              Usaha dalam pengelolaan dan pengendalian                             Contingency Plan in the management and
              aktivitas Bank.                                                      control of the Bank’s activities.

 47.   RISIKO HUKUM                                                 47.      LEGAL RISK

       Risiko hukum adalah risiko akibat tuntutan hukum                      Legal risk is the risk due to legal aspects, legal
       dan/atau kelemahan aspek yuridis, yang antara lain                    claims and/or weaknesses in agreements which
       disebabkan ketiadaan peraturan perundang-undangan                     among others are caused by the absence of
       yang mendukung, atau kelemahan perikatan seperti                      supporting regulations, weaknesses in agreements
       tidak dipenuhinya syarat sahnya kontrak dan                           such as the criteria for valid contracts is not fulfilled,
       pengikatan agunan yang tidak sempurna.                                and collateral arrangements are inappropriate.

       Identifikasi risiko hukum dilakukan pada seluruh                      Legal risk identification is performed for all functional
       aktivitas fungsional yang melekat pada perkreditan,                   activities that are inherent to loan, treasury,
       treasury, operasional, sistem informasi teknologi dan                 operational and information technology systems and
       pengelolaan sumber daya manusia.                                      human resources management.

 48.   RISIKO REPUTASI                                              48.      REPUTATION RISK

       Risiko reputasi adalah risiko akibat menurunnya tingkat               Reputation risk is the risk due to a decrease in the
       kepercayaan stakeholder yang bersumber dari                           stakeholders’ trust that results from a negative
       persepsi negatif terhadap Bank.                                       perception of the Bank.

       Identifikasi risiko reputasi dilakukan secara berkala                 Reputation     risk  identification is  performed
       sesuai dengan pengalaman kerugian di masa lalu yang                   periodically based on the knowledge of historical
       disebabkan oleh risiko reputasi. Penilaian risiko                     losses due to reputation risk. Reputation risk
       reputasi dilakukan secara kualitatif antara lain                      valuation is performed qualitatively among others
       bersumber dari pemberitaan negatif yang muncul dari                   from negative publications and commentaries from
       masyarakat/nasabah dan keluhan nasabah.                               the public/customers and customer’s complaints.




                                                            177
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PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)

  49.   RISIKO KEPATUHAN                                             49.     COMPLIANCE RISK
        Risiko kepatuhan adalah risiko yang terjadi karena                   Compliance risk is the risk incurred because the
        Bank tidak mematuhi dan/atau tidak melaksanakan                      Bank has not complied with and/or has not
        ketentuan internal dan peraturan perundang-undangan.                 implemented appropriate internal policies and
        Pada praktiknya, risiko kepatuhan melekat pada risiko                regulations. In practice, compliance risk is inherent
        Bank yang terkait pada peraturan perundang-                          to the Bank’s risk related to regulations, prudential
        undangan, ketentuan kehati-hatian dan ketentuan lain                 provisions and other provisions, such as:
        yang berlaku, seperti:
        i.    Risiko kredit terkait dengan ketentuan Kewajiban               i.    Credit risk related to Capital Adequacy Ratio
              Penyediaan Modal Minimum (KPMM), Kualitas                            (CAR), Asset Quality, Allowance for Impairment
              Aset,      Pembentukan     Cadangan     Kerugian                     Losses, and Legal Lending Limit (LLL)
              Penurunan Nilai (CKPN), dan Batas Maksimum                           regulations;
              Pemberian Kredit (BMPK);
        ii.   Risiko pasar terkait dengan ketentuan Posisi                   ii.  Market risk related to Net Open Position (NOP)
              Devisa Neto (PDN); dan                                              regulations; and
        iii. Risiko lain yang terkait dengan ketentuan                       iii. Other risks related to external and internal
              eksternal dan internal.                                             regulations.
        Identifikasi risiko kepatuhan dilakukan secara berkala              Compliance risk identification is performed
        sesuai dengan pengalaman kerugian di masa lalu yang                 periodically based on the knowledge of historical
        disebabkan oleh risiko kepatuhan dan pengukuran                     losses due to compliance risk and is measured
        risiko kepatuhan juga dilakukan melalui perhitungan                 through risk calculations based on accounting loss
        risiko berdasarkan data kerugian akuntansi dengan                   data using a loss distribution approach for calculating
        menggunakan pendekatan distribusi kerugian untuk                    capital charges.
        perhitungan capital charges.

  50.   RISIKO STRATEJIK                                             50.     STRATEGIC RISK
        Risiko stratejik adalah risiko akibat ketidaktepatan                 Strategic risk is the risk due to inaccurate decision
        dalam pengambilan dan/atau pelaksanaan suatu                         making and/or implementation of strategic decisions
        keputusan       stratejik    serta    kegagalan   dalam              and failure in anticipating business environment
        mengantisipasi       perubahan      lingkungan    bisnis.            changes. Strategic risk identification is performed
        Identifikasi risiko stratejik dilakukan secara berkala               periodically based on knowledge of historical losses
        sesuai dengan pengalaman kerugian dimasa lalu yang                   due to strategic risk. Strategic risk control is
        disebabkan oleh risiko stratejik. Pengendalian risiko                performed through periodical monitoring the
        stratejik       dilakukan         melalui      monitoring            realization of the budget determined periodically,
        pencapaian/realisasi atas anggaran yang sudah                        followed by the investigation of the factors that
        ditetapkan secara berkala dan dilanjutkan dengan                     cause failures.
        mitigasi dari faktor-faktor penyebab kegagalan.

 51.    MANAJEMEN MODAL                                             51.    CAPITAL MANAGEMENT
        Tujuan utama dari kebijakan Bank atas kebijakan                    The primary objectives of the Bank’s capital
        pengelolaan modal adalah untuk memastikan bahwa                    management policy are to ensure that the Bank has
        Bank memiliki modal yang kuat untuk mendukung                      a strong capital to support the Bank’s business
        strategi pengembangan ekspansi usaha Bank saat ini                 expansion strategy currently, to sustain future
        dan mempertahankan kelangsungan pengembangan                       development of the business, to meet regulator
        di masa mendatang serta untuk memenuhi ketentuan                   capital adequacy requirements and also to ensure
        kecukupan permodalan yang ditetapkan oleh                          the efficiency of Bank’s capital structure.
        regulator serta memastikan agar struktur permodalan
        Bank telah efisien.
        Bank menyusun Rencana Permodalan berdasarkan                       Bank undertakes Capital Planning based on
        penilaian dan penelaahan atas kebutuhan kecukupan                  assessment and review of the capital situation in
        permodalan         yang      dipersyaratkan      dan               terms of the legal capital adequacy requirement,
        mengkombinasikannya            dengan       tinjauan               combined with assessment of economic outlooks.
        perkembangan ekonomi terkini. Bank senantiasa                      Bank will continue to link financial and capital
        akan menghubungkan tujuan keuangan dan                             adequacy goals to risk which can be tolerated
        kecukupan modal terhadap risiko yang dapat                         appetite through the capital planning process
        ditoleransi melalui proses perencanaan modal, begitu               method as well as assess the businesses based on
        pula dengan bisnis yang disesuaikan dengan tingkat                 Bank’s capital and liquidity requirements.
        permodalan dan persyaratan likuiditas Bank.


                                                              178
Page 718
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 51.   MANAJEMEN MODAL (lanjutan)                                  51.     CAPITAL MANAGEMENT (continued)
       Kebutuhan permodalan Bank juga direncanakan dan                     The capital needs of the Bank are also discussed
       didiskusikan secara rutin yang didukung dengan                      and planned on a routine basis supported by data
       data-data analisis.                                                 analysis.
       Rencana Permodalan disusun oleh Dewan Direksi                       Capital Planning is prepared by the Board of
       sebagai bagian dan Rencana Bisnis Bank dan                          Directors as part of Bank’s business plan and is
       disetujui oleh Dewan Komisaris. Perencanaan ini                     approved by the Board of Commissioners. Capital
       diharapkan akan memastikan tersedianya modal                        Planning ensures that adequate levels of capital and
       yang cukup dan terciptanya struktur permodalan                      strong mix of the different components of capital are
       yang kuat guna mendukung pertumbuhan bisnis ke                      maintained to support business growth in the future.
       depan.
       Otoritas Jasa Keuangan (OJK) menentukan dan                         Financial Services Authority (OJK) sets and monitors
       mengawasi kebutuhan modal Bank. Bank diwajibkan                     capital requirements for the Bank. The Bank is
       untuk menaati peraturan yang berlaku dalam hal ini                  required to comply with prevailing regulation in
       modal yang diwajibkan regulator. Pendekatan Bank                    respect of regulatory capital. The Bank's approach to
       terhadap pengelolaan modal ditentukan oleh strategi                 capital management is driven by bank's strategic
       dan     persyaratan  organisasi   bank,    dengan                   and organisational requirements, taking into account
       memperhitungkan peraturan, serta keadaan ekonomi                    regulatory, economic and commercial environment.
       dan komersial.
       Bank mematuhi semua persyaratan modal yang                          Bank has complied with all regulator imposed capital
       ditetapkan oleh pihak regulator sepanjang periode                   requirements throughout the reporting period,
       pelaporan,    khususnya      berkenaan    dengan                    particularly regarding Capital Adequacy Ratio (CAR)
       perhitungan Kewajiban Penyediaan Modal Minimum                      and calculation of Risk Weighted Assets (RWA).
       (KPMM) dan Aktiva Tertimbang Menurut Risiko
       (ATMR).
       Bank menghitung kebutuhan modal berdasarkan                         Bank calculates its capital requirements in
       POJK No.34/POJK.03/2016 tanggal 22 November                         accordance with POJK No.34/POJK.03/2016 dated
       2016 tentang "Perubahan Atas Peraturan Otoritas                     November 22, 2016 about "Changes of Financial
       Jasa Keuangan No.11/POJK.03/2016 tentang                            Service Authority Regulation No.11/POJK.03/2016
       Kewajiban Penyediaan Modal Minimum Bank Umum"                       about Minimum Capital Reserve for Commercial
       dan Surat Edaran OJK No.43/SEOJK.03/2016                            Bank"         and    OJK       Circular     Letter
       tentang "Transparansi dan Publikasi Laporan Bank                    No.43/SEOJK.03/2016 about "Transparency and
       Umum Konvensional", dimana modal yang diwajibkan                    Publication Conventional Commercial Bank Report",
       regulator dianalisa dalam dua tier sebagai berikut:                 where the regulatory capital is analysed into two
                                                                           tiers as follows:
       -    Modal inti (tier 1), yang terdiri dari modal inti               -      Tier 1 capital, which consists of core and
            utama dan modal inti tambahan. Modal inti utama                        additional core capital. Core capital includes
            antara lain meliputi modal ditempatkan dan                             issued and fully paid-up capital, additional paid-
            disetor penuh, tambahan modal disetor,                                 in capital, general reserve, specific reserve,
            cadangan umum, laba tahun-tahun lalu dan                               retained earnings and profit for the period/year
            periode/tahun berjalan (100%), penghasilan                             (100%), other comprehensive income deriving
            komprehensif       lainnya     berupa       potensi                    from potential gain/loss from the changes in fair
            keuntungan/kerugian       yang     berasal     dari                    value of financial assets classified as available-
            perubahan nilai wajar aset keuangan dalam                              for-sale, shortfall between allowable amount of
            kelompok tersedia untuk dijual, selisih kurang dari                    allowance for uncollectible account on
            penyisihan penghapusan aset produktif sesuai                           productive assets according to Bank Indonesia
            ketentuan Bank Indonesia dan cadangan                                  guideline and allowance for impairment losses
            kerugian penurunan nilai asset produktif yang                          on productive assets. Deferred tax assets,
            diperbolehkan. Aset pajak tangguhan, aset                              intangible assets (including goodwill) and share
            takberwujud (termasuk goodwill) dan penyertaan                         investments (100%) are deducted from core
            (100%) merupakan faktor pengurang modal inti                           capital. Additional core capital includes non-
            utama. Modal inti tambahan antara lain terdiri dari                    cumulative preference shares, subordinated
            saham preferen, surat berharga subordinasi dan                         securities and subordinated debts net of
            pinjaman subordinasi dimana ketiganya bersifat                         buyback portion.
            non kumulatif setelah dikurangi pembelian
            kembali.


                                                            179
Page 719
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)

  51.   MANAJEMEN MODAL (lanjutan)                                51.     CAPITAL MANAGEMENT (continued)
        -   Modal pelengkap (tier 2) antara lain meliputi                -      Supplementary capital (tier 2), which includes
            instrumen modal, agio atau disagio, cadangan                        capital instruments, agio or disagio, general
            umum aset produktif dan cadangan tujuan sesuai                      reserves of productive assets and purpose
            ketentuan Bank Indonesia.                                           reserves according to Bank Indonesia guideline.
        Beberapa batasan berlaku untuk bagian-bagian modal               Various limits have been set to elements of the
        yang diwajibkan oleh regulator, antara lain Bank wajib           regulatory capital, such as Banks are required to
        menyediakan modal inti (tier 1) paling rendah sebesar            provide core capital (tier 1) at a minimum of 6.00%
        6,00% dari ATMR dan modal inti utama (Common                     from Risk Weighted Assets and Common Equity tier
        Equity tier 1) paling rendah sebesar 4,50% dari ATMR,            1 at a minimum of 4.50% from Risk Weighted
        baik secara individual maupun secara dengan entitas              Assets, both individually and level with subsidiary.
        anak.
        -    Modal tier 1, meliputi modal ditempatkan dan                 -     Tier 1 capital, which includes issued and fully
             disetor penuh, cadangan umum, saldo laba dan                       paid share capital, general reserve, retained
             laba periode berjalan.                                             earnings and profit for the period.
        -    Modal tier 2, meliputi penyisihan kerugian                   -     Tier 2 capital, which includes the eligible
             penurunan nilai yang diperbolehkan.                                amount of allowance for impairment losses.
        Bank tidak mempunyai modal tambahan lain yang                     The Bank does not have any other supplementary
        memenuhi kriteria modal tier 3 sesuai dengan                      capital which meets the criteria of tier 3 capital under
        peraturan BI yang berlaku.                                        prevailing BI regulation.
        Berbagai batasan telah diterapkan untuk bagian-bagian             Various limits are applied to elements of the
        modal yang diwajibkan oleh regulator. Pengaruh dari               regulatory capital. The effect of deferred taxation has
        pajak tangguhan telah dikeluarkan dalam menentukan                been excluded in determining the amount of retained
        jumlah saldo laba untuk modal tier 1; hanya 50 persen             earnings for tier 1 capital; only 50 percent of the
        laba periode berjalan sebelum pajak tangguhan yang                profit for the period before deferred taxation being
        dapat diperhitungkan dalam modal tier 1; dan modal                included in tier 1 capital; and qualifying tier 2 capital
        tier 2 tidak boleh melebihi modal tier 1. Juga terdapat           cannot exceed tier 1 capital. There is also a
        batasan jumlah penyisihan kolektif penurunan nilai                restriction on the amount of collective impairment
        yang boleh dimasukkan sebagai bagian dari modal tier              allowances that may be included as part of tier 2
        2.                                                                capital.
        ATMR Bank ditentukan berdasarkan persyaratan yang                 ATMR are determined according to specified
        telah ditentukan yang mencerminkan berbagai                       requirements that seek to reflect the varying levels of
        tingkatan risiko yang terkait dengan aset dan eksposur,           risk attached to assets and exposures not
        yang tidak tercermin dalam laporan posisi keuangan.               recognized in the statement of financial position.
        Berdasarkan peraturan BI, Bank diharuskan untuk                   Based on BI regulations, the Bank needs to take into
        mempertimbangkan risiko kredit, risiko pasar dan risiko           consideration its credit risk, market risk and
        operasional dalam mengukur ATMR Bank.                             operational risk in measuring the ATMR.
        Kebijakan Bank adalah menjaga modal yang kuat                     The Bank's policy is to maintain a strong capital base
        untuk menjaga kepercayaan pemodal, kreditur dan                   so as to maintain investor, creditor and market
        pasar dan untuk mempertahankan perkembangan                       confidence and to sustain future development of
        bisnis di masa depan. Pengaruh tingkat modal                      business. The impact of the level of capital on
        terhadap tingkat pengembalian ke pemegang saham                   shareholders' return is also recognized and the
        juga diperhitungkan dan Bank juga memahami                        Banks also recognise the need to maintain a
        perlunya menjaga keseimbangan antara tingkat                      balance between the higher return that might be
        pengembalian yang tinggi, yang dimungkinkan dengan                possible with greater gearing and the advantages
        gearing yang lebih besar serta keuntungan-keuntungan              and security level afforded by a strong capital
        dan tingkat keamanan yang didapat dari posisi modal               position.
        yang kuat.
        Manajemen menggunakan rasio permodalan yang                       Management uses regulatory capital ratios in order
        diwajibkan regulator untuk memantau permodalan                    to monitor its capital base, and these capital ratios
        Bank dan rasio-rasio modal ini tetap menjadi standar              remain the industry standards for measuring capital
        industri  untuk    mengukur     kecukupan     modal.              adequacy. OJK’s approach to such measurement is
        Pendekatan OJK untuk pengukuran ini terutama                      primarily based on monitoring the relationship of the
        didasarkan pada pemantauan hubungan antara profil                 Bank’s risk profile with the available capital. The
        risiko Bank dengan ketersediaan modal. Bank wajib                 Bank is required to provide minimum capital based
        menyediakan modal minimum sesuai profil risiko.                   on the risk profile.



                                                            180
Page 720
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


 51.   MANAJEMEN MODAL (lanjutan)                                   51.      CAPITAL MANAGEMENT (continued)

       Penyediaan modal minimum sebagaimana dimaksud                         Minimum capital requirements are as follows:
       ditetapkan sebagai berikut:

       a.   Untuk profil risiko peringkat 1 (satu), modal                   a.     For banks with risk profile rating 1 (one), the
            minimum terendah yang wajib dimiliki adalah 8%                         minimum capital requirement is 8% of Risk
            dari Aset Tertimbang Menurut Risiko;                                   Weighted Asset;

       b.   Untuk profil risiko peringkat 2 (dua), modal                    b.     For banks with risk profile rating 2 (two), the
            minimum terendah yang wajib dimiliki adalah 9%                         minimum capital requirement is 9% to less than
            sampai dengan kurang dari 10% dari Aset                                10% of Risk Weighted Asset;
            Tertimbang Menurut Risiko;

       c.   Untuk profil risiko peringkat 3 (tiga), modal                   c.     For banks with risk profile rating 3 (three), the
            minimum terendah yang wajib dimiliki adalah 10%                        minimum capital requirement is 10% to less
            sampai dengan kurang dari 11% dari Aset                                than 11% of Risk Weighted Asset; and
            Tertimbang Menurut Risiko; dan

       d.   Untuk profil risiko peringkat 4 (empat) atau 5                  d.     For banks with risk profile rating 4 (four) or 5
            (lima), modal minimum terendah yang wajib                              (five), the minimum capital requirement is 11%
            dimiliki adalah 11% sampai dengan kurang dari                          to less than 14% of Risk Weighted Asset.
            14% dari Aset Tertimbang Menurut Risiko.

       Posisi modal yang diwajibkan regulator Bank sesuai                    The Bank's regulatory capital position under
       peraturan Bank Indonesia yang berlaku pada tanggal                    prevailing Bank Indonesia regulation as of
       31 Desember 2023 dan 2022 adalah sebagai berikut:                     December 31, 2023 and 2022 are as follows:

                                               31 Desember/                 31 Desember/
                                               December 31,                 December 31,
                                                   2023                         2022
       Modal inti (Tier 1)                                                                                                 Core capital (Tier 1)
        Modal inti utama (CET 1)                   11.025.184                    10.346.392                      Common equity tier (CET 1)
        Modal inti tambahan (AT 1)                          -                             -                       Additional equity tier (AT 1)
                                                   11.025.184                    10.346.392
       Modal pelengkap (Tier 2)                       516.010                       437.563                     Supplementary capital (Tier 2)
       Jumlah modal                                11.541.194                    10.783.955                                     Total capital
       Aset Tertimbang Menurut Risiko                                                                                     Risk Weighted Asset
         Risiko kredit                             40.764.771                    34.567.488                                       Credit risk
         Risiko operasional                         4.083.746                     8.917.841                                  Operational risk
         Risiko pasar                                  49.106                       108.144                                      Market risk
       Jumlah Aset Tertimbang Menurut Risiko       44.897.623                    43.593.473                         Total Risk Weighted Asset
       Rasio kecukupan modal                                                                                           Capital Adequacy Ratio
        Rasio CET 1                                    24,56%                        23,73%                                      CET 1 ratio
        Rasio tier 1                                   24,56%                        23,73%                                       Tier 1 ratio
        Rasio tier 2                                    1,15%                         1,00%                                       Tier 2 ratio
       Rasio modal terhadap ATMR                       25,71%                        24,74%                           Ratio of capital to ATMR
       Rasio kewajiban penyediaan                                                                                       Capital adequacy ratio
        modal minimum untuk risiko                                                                                            with credit and
        kredit dan risiko operasional                  25,73%                        24,80%                                  operational risk
       Rasio kewajiban penyediaan                                                                                        Capital adequcy ratio
        modal minimum untuk risiko kredit,                                                                                with credit. market
        risiko pasar dan risiko operasional            25,71%                        24,74%                              and operational risk
       Rasio kewajiban penyediaan                                                                                   Minimum capital adequacy
        modal minimum yang diwajibkan              9% - <10%                     9% - <10%                                      ratio required

                                                            181
Page 721
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                    PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                    JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                   NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                   As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                               and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                   (Expressed in millions of Rupiah, unless otherwise stated)


  51.   MANAJEMEN MODAL (lanjutan)                                       51.        CAPITAL MANAGEMENT (continued)
        OJK berwenang menetapkan modal minimum lebih                                OJK is authorised to stipulate minimum capital
        besar dari modal minimum dalam hal OJK menilai                              greater than minimum capital in terms of OJK
        suatu bank menghadapi potensi kerugian yang                                 assesses a bank as facing potential losses which
        membutuhkan modal lebih besar.                                              requires a larger capital.
        Berdasarkan self-assessment Bank, pada tanggal                              Based on its self-assessment, as of December 31,
        31 Desember 2023 profil risiko Bank dinilai berada                          2023 the Bank risk profile is assessed to be in rating
        pada peringkat Low to Moderat (PK-2). Oleh karena itu,                      Low to Moderat (PK-2). Therefore, the Bank is
        Bank berkewajiban untuk memenuhi modal minimum                              required to provide a minimum capital of 9% to less
        sebesar 9% sampai dengan kurang dari 10%.                                   than 10%. The Bank Capital Adequate Ratio was
        Kewajiban Penyediaan Modal Minimum Bank berada                              25,71%, which was higher than the required
        pada level di atas modal minimum yang diwajibkan                            minimum provision of capital.
        tersebut, yaitu sebesar 25.71%.

  52.   POSISI DEVISA NETO                                               52.        NET OPEN POSITION
        Perhitungan Posisi Devisa Neto (PDN) didasarkan                             The Net Open Position (NOP) was calculated based
        pada Peraturan Bank Indonesia No.5/13/PBI/2003                              on Bank Indonesia Regulation No.5/13/PBI/2003
        tanggal 17 Juli 2003 sebagaimana telah diubah terakhir                      dated July 17, 2003 which was last amended by
        dengan Peraturan Bank Indonesia No.12/10/PBI/2010                           Bank Indonesia Regulation No.12/10/PBI/2010
        tanggal 1 Juli 2010. Berdasarkan peraturan tersebut,                        dated July 1, 2010. Based on this regulation, the
        Bank diwajibkan untuk menjaga rasio PDN laporan                             Bank is required to maintain overall and statement of
        posisi keuangan dan secara keseluruhan maksimum                             financial position Net Open Position at a maximum
        20% dari jumlah modal. PDN adalah penjumlahan nilai                         of 20% of the total capital. The ratio is the sum of the
        absolut yang dinyatakan dalam rupiah dari selisih                           absolute values, which are stated in rupiah, of the
        bersih antara aset dan liabilitas dalam mata uang asing                     net difference between the assets and liabilities
        dan selisih bersih tagihan dan liabilitas komitmen dan                      denominated in each foreign currency and the net
        kontinjensi yang dicatat dalam rekening administratif                       difference and payables of both commitments and
        yang didenominasi dalam setiap mata uang.                                   contingencies recorded in the administrative
                                                                                    accounts denominated in each currency.
        PDN Bank pada tanggal-tanggal 31 Desember 2023                              The Bank’s NOP as of December 31, 2023 and 2022
        dan 2022 adalah sebagai berikut:                                            are as follows:
                                                                 31 Desember/
                                                                 December 31,
                                                                     2023
                                           Aset/     Liabilitas/      Nilai neto/      Nilai absolut neto/
        Mata uang                         Assets     Liabilities      Net value        Net absolute value                                Currencies
        POSISI KEUANGAN                                                                                                     FINANCIAL POSITION
        Dolar Amerika Serikat              434.208      394.155            40.053                   40.053                      United States Dollar
        Riyal Saudi Arabia                  15.436            -            15.436                   15.436                      Saudi Arabian Riyal
        Dolar Singapura                     71.918       68.077             3.841                    3.841                          Singapore Dollar
        Euro                                 6.365          763             5.602                    5.602                                      Euro
        Ringgit Malaysia                     1.984            -             1.984                    1.984                        Malaysian Ringgit
        Poundsterling Inggris Raya           2.553            -             2.553                    2.553               Great Britain Poundsterling
        Dolar Australia                      6.676            1             6.675                    6.675                          Australian Dollar
        Yuan China Renminbi                  4.673        1.310             3.363                    3.363                 Chinese Yuan Renminbi
        Yen Jepang                           1.072           33             1.039                    1.039                            Japanese Yen
        Dolar Hong Kong                        762            -               762                      762                         Hong Kong Dollar
                                           545.647      464.339            81.308                   81.308
        REKENING ADMINISTRATIF                                                                                      ADMINISTRATIVE ACCOUNTS
        Dolar Amerika Serikat                    -       47.915           (47.915)                  47.915                   United States Dollar
        Jumlah                             545.647      512.254            33.393                   49.117                                 Total
        Total modal (Catatan 51)                                                               11.541.194                     Total capital (Note 51)
        Rasio Posisi Devisa Neto                                                                                 Net Open Position as a percentage
         (Posisi keuangan)                                                                           0,70%           of capital (Financial position)
                                                                                                                 Net Open Position as a percentage
        Rasio Posisi Devisa Neto                                                                     0,43%                                of capital




                                                              182
Page 722
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


52.   POSISI DEVISA NETO (lanjutan)                                  52.        NET OPEN POSITION (continued)

                                                             December 31,
                                                                 2022
                                       Aset/     Liabilitas/      Nilai neto/     Nilai absolut neto/
      Mata uang                       Assets     Liabilities      Net value       Net absolute value                                  Currencies
      POSISI KEUANGAN                                                                                                    FINANCIAL POSITION
      Dolar Amerika Serikat            278.741      157.121          121.620                  121.620                        United States Dollar
      Riyal Saudi Arabia                 7.242            -            7.242                    7.242                        Saudi Arabian Riyal
      Dolar Singapura                   12.463        9.240            3.223                    3.223                            Singapore Dollar
      Euro                               4.392        1.609            2.783                    2.783                                        Euro
      Ringgit Malaysia                   3.420            -            3.420                    3.420                          Malaysian Ringgit
      Poundsterling Inggris Raya         1.464            -            1.464                    1.464                 Great Britain Poundsterling
      Dolar Australia                    6.176            -            6.176                    6.176                            Australian Dollar
      Yuan China Renminbi                1.375            -            1.375                    1.375                   Chinese Yuan Renminbi
      Yen Jepang                           563           15              548                      548                              Japanese Yen
      Dolar Hong Kong                      845           20              825                      825                           Hong Kong Dollar
                                       316.681      168.005          148.676                  148.676
      REKENING ADMINISTRATIF                                                                                     ADMINISTRATIVE ACCOUNTS
      Dolar Amerika Serikat                  -      202.378          (202.378)                202.378                     United States Dollar
      Jumlah                           316.681      370.383           (53.702)                351.054                                   Total
      Total modal (Catatan 51)                                                             10.783.955                      Total capital (Note 51)
      Rasio Posisi Devisa Neto                                                                                Net Open Position as a percentage
       (Posisi keuangan)                                                                        1,38%             of capital (Financial position)
                                                                                                              Net Open Position as a percentage
      Rasio Posisi Devisa Neto                                                                  3,26%                                  of capital




                                                              183
Page 723
                                                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                             and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                 (Expressed in millions of Rupiah, unless otherwise stated)


  53.   ASET DAN LIABILITAS KEUANGAN                                                                   53.       FINANCIAL ASSETS AND LIABILITIES
        Nilai wajar yang diungkapkan di bawah ini adalah                                                         The fair values disclosed below are based on
        berdasarkan informasi relevan yang tersedia pada                                                         available relevant information at the statement of
        tanggal laporan posisi keuangan dan tidak diperbaharui                                                   financial position date and are not updated to reflect
        untuk mencerminkan perubahan dalam kondisi pasar                                                         changes in market conditions which have occurred
        yang telah terjadi setelah tanggal laporan posisi                                                        after the dates of the statements of financial position.
        keuangan.
        Tabel di bawah ini menyajikan nilai tercatat dan nilai                                                   The table below presents the carrying amount and
        wajar aset dan liabilitas keuangan Bank pada tanggal                                                     fair values of the Bank’s financial assets and
        31 Desember 2023 dan 2022:                                                                               liabilites as of December 31, 2023 and 2022:
                                                                         December 31,                                December 31,
                                                                               2023                                      2022
                                                             Nilai tercatat/          Nilai wajar/      Nilai tercatat/         Nilai wajar/
                                                             Carrying value           Fair value        Carrying value           Fair value
        Aset Keuangan                                                                                                                                                           Financial Assets
        Kas                                                       2.652.775                2.652.775          1.988.262               1.988.262                                            Cash
        Surat Berharga                                                                                                                                                                Securities
        Nilai wajar melalui pendapatan komprehensif lain                                                                                          Fair value through other comprehensive income
         Surat Utang Negara                                       7.762.560                7.762.560          8.476.609               8.476.609                               Government bonds
        Biaya perolehan diamortisasi                                                                                                                                            Amortized cost
         Surat Utang Negara                                       4.848.046                4.848.046         12.025.332              12.025.332                              Government bonds
         Obligasi:                                                                                                                                                                     Bonds:
            PT BCA Finance                                           30.000                   30.000                  -                      -
            PT Pegadaian (Persero)                                   80.000                   80.000            480.000                480.000                         PT Pegadaian (Persero)
            PT Bank Aceh Syariah                                          -                        -            225.000                225.000                           PT Bank Aceh Syariah
            PT Pupuk Indonesia (Persero)                            192.203                  192.203            192.250                192.250                   PT Pupuk Indonesia (Persero)
            PT Astra Sedaya Finance                                 197.862                  197.862            152.966                152.966                        PT Astra Sedaya Finance
            PT Bank Rakyat Indonesia (Persero) Tbk                  181.055                  181.055            146.035                146.035         PT Bank Rakyat Indonesia (Persero) Tbk
            PT Semen Indonesia Persero                              244.970                  244.970            135.454                135.454                    PT Semen Indonesia Persero
            PT Sinarmas Tbk                                               -                        -            100.000                100.000                                 PT Sinarmas Tbk
            PT Federal International Finance Tbk                    112.190                  112.190             99.615                 99.615            PT Federal International Finance Tbk
            PT Kereta Api Indonesia (Persero)                        90.877                   90.877             91.519                 91.519               PT Kereta Api Indonesia (Persero)
            PT Bank Negara Indonesia Tbk                             80.000                   80.000             80.000                 80.000                  PT Bank Negara Indonesia Tbk
            PT Tower Bersama Infrastructure Tbk                      69.338                   69.338                  -                      -            PT Tower Bersama Infrastructure Tbk
            PT Perusahaan Listrik Negara (Persero)                   83.628                   83.628             69.861                 69.861          PT Perusahaan Listrik Negara (Persero)
            PT Jasa Marga (Persero) Tbk                              33.158                   33.158             63.243                 63.243                    PT Jasa Marga (Persero) Tbk
            PT XL Axiata Tbk                                         85.097                   85.097             60.000                 60.000                                PT XL Axiata Tbk
            PT Permodalan Nasional Madani                           104.218                  104.218             50.000                 50.000                 PT Permodalan Nasional Madani
            PT Maybank Indonesia Tbk                                 23.000                   23.000             33.032                 33.032                      PT Maybank Indonesia Tbk
            PT Bank Tabungan Negara (Persero) Tbk                    27.000                   27.000             32.003                 32.003         PT Bank Tabungan Negara (Persero) Tbk
            PT Toyota Astra Financial Services                       25.000                   25.000                  -                      -              PT Toyota Astra Financial Services
            PT Indonesia Infrastructure Finance                           -                        -             30.148                 30.148              PT Indonesia Infrastructure Finance
            PT Bank Mandiri (Persero) Tbk                           114.000                  114.000             27.189                 27.189                   PT Bank Mandiri (Persero) Tbk
            PT Sarana Multigriya Finansial (Persero)                133.308                  133.308             26.000                 26.000          PT Sarana Multigriya Finansial (Persero)
            PT Adira Dinamika Multi Finance Tbk                      74.888                   74.888             24.803                 24.803             PT Adira Dinamika Multi Finance Tbk
            PT Bank Mandiri Taspen                                   29.021                   29.021             24.011                 24.011                         PT Bank Mandiri Taspen
            PT Bank Pembangunan Daerah                                                                                                                          PT Bank Pembangunan Daerah
               Jawa Barat dan Banten Tbk                                  -                        -             12.219                 12.219                      Jawa Barat dan Banten Tbk
            PT Bank Pan Indonesia Tbk                                     -                        -             10.008                 10.008                      PT Bank Pan Indonesia Tbk
            PT Telekomunikasi Indonesia Tbk                           5.279                    5.279              5.454                  5.454                PT Telekomunikasi Indonesia Tbk
            PT Mandiri Tunas Finance Tbk                             58.174                   58.174              5.265                  5.265                   PT Mandiri Tunas Finance Tbk
            PT Hutama Karya (Persero)                                     -                        -                  -                      -                      PT Hutama Karya (Persero)
            PT WOM Finance                                           15.036                   15.036                  -                      -                                PT WOM Finance
         Sekuritas Rupiah Bank Indonesia                            592.400                  592.400                  -                      -                  Bank Indonesia Rupiah Securites
         Sukuk Bank Indonesia                                       450.000                  450.000            400.000                400.000                             Bank Indonesia Sukuk

         Sertifikat Investasi Mudharabah Antarbank (SIMA):                                                                                        Interbank Mudharabah Investment Certificates:
          PT Bank Syariah Mega Indonesia                             30.000                   30.000                  -                      -                PT Bank Syariah Mega Indonesia
          PT Bank Sinarmas Tbk                                            -                        -            100.000                100.000                          PT Bank Sinarmas Tbk
          PT Bank Aceh Syariah                                      150.000                  150.000            225.000                225.000                          PT Bank Aceh Syariah
          PT Bank Muamalat Indonesia Tbk                            100.000                  100.000                  -                      -                PT Bank Muamalat Indonesia Tbk
          PT Bank Syariah Indonesia Tbk                              70.000                   70.000                  -                      -                  PT Bank Syariah Indonesia Tbk
          PT Bank NTB Syariah                                       100.000                  100.000                  -                      -                           PT Bank NTB Syariah

         Negotiable Certificate of Deposit (NCD):                                                                                                              Negotiable Certificate of Deposit:
          PT Bank Negara Indonesia Tbk                                28.500                  28.500             47.237                  47.237                 PT Bank Negara Indonesia Tbk

         Reksadana:                                                                                                                                                               Reksadana:
          PT Permodalan Nasional Madani                              90.000                  90.000              90.000                  90.000                PT Permodalan Nasional Madani
         Surat kredit berdokumen dalam negeri                        12.913                  12.913                                                                              Domestic L/C
         Wesel                                                          112                     112               2.418                   2.418                                           Bill
                                                                 16.323.831              16.323.831          23.542.670              23.542.670
                                                                 18.976.606              18.976.606          25.530.932              25.530.932




                                                                                                184
Page 724
                                                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                               (Expressed in millions of Rupiah, unless otherwise stated)


53.   ASET DAN LIABILITAS KEUANGAN (lanjutan)                                                          53.       FINANCIAL                       ASSETS             AND              LIABILITIES
                                                                                                                 (continued)

                                                                           2023                                            2022
                                                         Nilai tercatat/          Nilai wajar/           Nilai tercatat/          Nilai wajar/
                                                         Carrying value           Fair value             Carrying value           Fair value
      Biaya perolehan diamortisasi                                                                                                                                                            Amortised cost
       Giro pada Bank Indonesia                               7.971.412                7.971.412              10.786.740              10.786.740                      Current accounts with Bank Indonesia
       Giro pada Bank lain                                      491.330                  491.330                 303.129                 303.129                          Current accounts with other banks
       Penempatan pada Bank Indonesia                                                                                                                                       Placement with Bank Indonesia
         dan bank lain                                        5.234.721               5.234.721                6.916.329               6.916.329                                          and other banks
       Surat berharga                                        16.323.831              16.323.831               23.217.671              23.217.671                                       Marketable securities
       Surat berharga yang dijual untuk dijual kembali        8.303.663               8.303.663                4.095.066               4.095.066   Marketable securities sold under repurchased agreement
       Tagihan reverse repo                                   6.247.318               6.247.318                7.822.847               7.822.847                                   Reverse repo receivables
       Tagihan lainnya                                          223.138                 223.138                  286.147                 286.147                                          Other receivables
       Kredit yang diberikan dan pembiayaan syariah                                                                                                                              Loans and sharia financing
         Modal kerja                                         15.550.351              15.550.351               10.968.010              10.968.010                                           Working capital
         Investasi                                            8.002.279               8.002.279                6.570.658               6.570.658                                               Investment
         Konsumsi                                            31.208.273              31.208.273               28.657.989              28.657.989                                             Consumption
       Pendapatan bunga yang masih akan diterima                685.734                 685.734                  646.125                 646.125                                        Interest receivables
                                                            100.242.050             100.242.050              100.270.711             100.270.711
       Jumlah                                               116.565.881             116.565.881              123.813.381             123.813.381                                                      Total

       Liabilitas keuangan                                                                                                                                                              Financial liabilities
       Liabilitas lain-lain                                                                                                                                                                  Other liabilities
         Liabilitas segera                                      987.605                 987.605                  872.514                 872.514                              Obligations due immediately
         Simpanan nasabah                                    75.849.855              75.849.855               81.767.383              81.767.383                                 Deposits from customers
         Simpanan dari bank lain                              2.560.321               2.560.321                3.339.123               3.339.123                               Deposits from other banks
         Pinjaman yang diterima                                 596.977                 596.977                  553.399                 553.399                                               Borrowings
         Beban yang masih harus dibayar                         504.748                 504.748                  520.840                 520.840                                        Accrued expenses
         Liabilitas lain-lain                                   779.314                 779.314                  550.119                 550.119                                           Other liabilities
      Jumlah                                                 81.278.820              81.278.820               87.603.378              87.603.378                                                        Total


      i.     Giro pada Bank Indonesia, giro pada bank lain,                                                      i.        Current accounts with Bank Indonesia, other
             penempatan pada Bank Indonesia dan bank lain,                                                                 banks, placements with Bank Indonesia and
             surat-surat berharga dan tagihan lainnya                                                                      other banks, marketable securities and other
                                                                                                                           receivables

             Nilai tercatat dari kas dan setara kas, giro serta                                                            Carrying value of cash and cash equivalents,
             penempatan dengan suku bunga mengambang                                                                       current accounts and placements at floating
             adalah perkiraan yang layak atas nilai wajar.                                                                 interest rates are the reasonable estimates of
                                                                                                                           fair value.

             Estimasi nilai wajar terhadap penempatan dengan                                                               The estimated fair value of placements with fixed
             suku bunga tetap, surat-surat berharga dan                                                                     interest rates, marketable securities and other
             tagihan lainnya ditetapkan berdasarkan diskonto                                                                receivables are determined based on
             arus kas dengan menggunakan suku bunga pasar                                                                   discounted cash flows using the prevailing
             uang yang berlaku untuk utang dengan risiko                                                                    money market interest rates for debt with the
             kredit dan sisa jatuh tempo yang serupa. Karena                                                                same credit risks and remaining maturity.
             sisa jatuh tempo di bawah 1 (satu) tahun,                                                                      Because the residual maturity dates are below
             sehingga nilai tercatat dari penempatan dengan                                                                 1 (one) year, the carrying amount of fixed rate
             suku bunga tetap, surat-surat berharga dan                                                                     placements, marketable securities and other
             tagihan lainnya adalah perkiraan yang layak atas                                                               receivables are reasonable estimates of fair
             nilai wajar.                                                                                                   value.

                                                                                                 185
Page 725
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)


 53.   ASET DAN LIABILITAS KEUANGAN (lanjutan)                       53.     FINANCIAL ASSETS AND LIABILITES (continued)
       ii.    Kredit yang diberikan dan pembiayaan syariah                    ii.    Loans and sharia financing
              Portofolio kredit Bank terdiri dari kredit yang                        The Bank credit portfolio consists of loans with
              diberikan dengan suku bunga tetap. Kredit yang                         fixed interest rates. The loans are stated at
              diberikan dinyatakan berdasarkan jumlah nilai                          carrying amounts. The fair value of the loans
              tercatat. Nilai wajar dari kredit yang diberikan                       shows the estimated value of discounted future
              menunjukkan nilai diskonto dari perkiraan arus                         cash flows expected to be received by the
              kas masa depan yang diharapkan akan diterima                           Bank. Estimated cash flows are discounted
              oleh Bank. Perkiraan arus kas ini didiskontokan                        using market interest rates to determine fair
              dengan menggunakan suku bunga pasar untuk                              values.
              menentukan nilai wajar.
       iii.   Liabilitas segera, simpanan dari nasabah dan                    iii.   Liabilities immediately payable, deposits from
              simpanan dari bank lain dan liabilitas lain-lain                       customers and deposits from other banks and
                                                                                     other liabilities
              Estimasi nilai wajar liabilitas segera, simpanan                       The estimated fair value of liabilities
              tanpa jatuh tempo, termasuk simpanan tanpa                             immediately payable, deposits with no
              bunga adalah sebesar jumlah terutang ketika                            specified maturity, including non-interest-
              utang tersebut dibayarkan.                                             bearing deposits represent payable amounts
                                                                                     when the debt is paid.
              Estimasi nilai wajar terhadap simpanan dengan                          The estimated fair value of deposits with fixed
              tingkat suku bunga tetap dan liabilitas lain-lain                      interest rates and other liabilities that do not
              yang tidak memiliki kuotasi di pasar aktif                             have a quotation price in an active market is
              ditetapkan berdasarkan diskonto arus kas dengan                        determined based on discounted cash flows
              menggunakan suku bunga utang baru dengan                               using the interest rates of new debt with similar
              sisa jatuh tempo yang serupa. Adalah tidak                             maturities. There is no practice to estimate the
              praktis untuk memperkirakan nilai wajar dari                           fair value of security deposits due to they have
              setoran jaminan dikarenakan tidak memiliki                             no certain settlement schedule, although is not
              jangka waktu pembayaran yang tetap meskipun                            expected to be settled within 12 months after
              tidak diharapkan dapat diselesaikan dalam waktu                        the reporting date, the carrying amount of fixed
              12 bulan setelah tanggal pelaporan, sehingga                           rate deposits and other liabilities are
              nilai tercatat dari simpanan dengan suku bunga                         reasonable estimates of fair value.
              tetap dan liabilitas lain-lain adalah perkiraan yang
              layak atas nilai wajar.
       iv.    Surat berharga                                                  iv. Marketable securities
              Nilai wajar untuk surat berharga yang dimiliki                         The fair value for marketable securities held to
              hingga jatuh tempo ditetapkan berdasarkan harga                        maturity is determined based on market prices
              pasar atau harga kuotasi perantara (broker)/                           or    quotation    prices    of    intermediaries
              pedagang efek (dealer). Jika informasi ini tidak                       (brokers)/securities dealers. If this information
              tersedia,     nilai  wajar      diestimasi  dengan                     is not available, fair value is estimated using
              menggunakan harga pasar kuotasi efek yang                              quotation market prices of securities with
              memiliki karakteristik kredit, jatuh tempo dan yield                   similar credit characteristics, maturities and
              yang serupa. Surat berharga yang tersedia untuk                        yields. The Available for sale for marketable
              dijual adalah surat berharga yang ditetapkan                           securities are intended to be held for indefinite
              untuk dimiliki pada periode tertentu dimana akan                       period of time, which may be sold in response
              dijual dalam rangka pemenuhan likuiditas atau                          to needs for liquidity or changes in interest
              perubahan suku bunga, valuta asing atau yang                           rates, exchange rates or that are not classified
              tidak diklasifikasikan sebagai pinjaman yang                           as loans and receivables, held to maturity or
              diberikan atau piutang, aset keuangan yang                             financial assets at fair value through profit or
              diklasifikasikan dalam kelompok dimiliki hingga                        loss.
              jatuh tempo atau aset keuangan yang diukur
              pada nilai wajar melalui laba rugi.
       v.     Pinjaman yang diterima                                          v.     Borrowings
              Dihitung berdasarkan diskonto arus kas sesuai                          The calculation is based on the discounted
              dengan sisa periode jatuh temponya.                                    cash flow corresponding to the remaining
                                                                                     period to maturity.

                                                               186
Page 726
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)


  54.   LIABILITAS IMBALAN KERJA PASTI                                   54.    DEFINED EMPLOYEE BENEFIT LIABILITIES

        Program pensiun manfaat pasti                                           Defined benefit pension plan

        Bank menyelenggarakan Program Pensiun Manfaat                           The Bank provides a Defined Benefit Pension Plan
        Pasti bagi seluruh karyawan Bank yang memenuhi                          for all qualified employees in accordance with the
        persyaratan sebagaimana diatur dalam Peraturan PT                       Regulation of Pension Funds of “PT Dana Pensiun
        Dana Pensiun PT Bank Pembangunan Daerah Jawa                            Bank Pembangunan Daerah Jawa Timur Tbk“
        Timur Tbk (Dapen Bank Jatim). Dalam program ini,                        (Dapen Bank Jatim).. Based on this program, the
        manfaat pensiun diberikan berdasarkan persyaratan                       right of pension benefits is provided based on the
        yang ditetapkan dalam peraturan Bank dengan                             requirements as set out in the regulation considering
        memperhatikan penghargaan per tahun masa kerja,                         the annual service factors, past service and the
        jasa lalu dan Penghasilan Dana Pensiun. Program                         Pension Fund’s income. The Bank’s pension funds
        dana pensiun Bank dikelola oleh Dapen Bank Jatim,                       program is managed by Dapen Bank Jatim.
        sesuai dengan ketentuan yang diatur dalam Surat                         Pursuant to the terms provided the Bank Directors’
        Keputusan Direksi Bank, karyawan Bank memberikan                        Decision Letter, the employees’ pension fund
        kontribusi pada dana pension sebesar 5% dari                            contribution is 5% of the pensionable basic income
        penghasilan dasar pension pekerja dan sisanya                           of employees and the remaining pension fund
        merupakan kontribusi Bank.                                              contributions are paid by the Bank.

        i.   Penilaian aktuaria atas beban pensiun per 31                           i. The actuarial valuation of pension expense as
             Desember 2023 dan 2022 dilakukan oleh Kantor                              of December 31, 2023 and 2022 were made
             Konsultan Aktuaria Agus Susanto, aktuaris                                 by Konsultan Aktuaria Agus Susanto, an
             independen, berdasarkan laporannya tanggal 4                              independent actuarial firm, based on their
             Januari 2024 dan 24 Januari 2023 telah sesuai                             report dated January 4, 2024 and January 24,
             dengan PSAK 24 (revisi 2013) dengan                                       2023 conform with the PSAK 24 (revised
             menggunakan metode Projected Unit Credit serta                            2013) with use calculated method Projected
             mempertimbangkan               asumsi-asumsi                              Unit Credit also considers assumptions
             sebagai berikut:                                                          are as follows :

                                                             31 Desember/          31 Desember/
                                                             December 31,          December 31,
                                                                 2023                  2022

                Asumsi ekonomi                                                                                          Economic assumptions
                Tingkat diskonto                                7,00%                    7,40%                                      Discount rate
                Tingkat kenaikan penghasilan dasar pensiun      0,00%                    0,00%                      Pension basic income growth
                Tingkat bunga imbal hasil investasi aset        7,00%                    7,40%                      Investment yield of plan aset

                Asumsi lainnya                                                                                               Other assumptions
                Tingkat mortalita                                         GAM-1971                                                  Mortality table
                Usia pensiun normal                                     58 tahun/years                                     Normal retirement age
                Tingkat cacat                                            10% Mortalita                                              Disability rate
                Tingkat pengunduran diri untuk usia:                                                            Retirement rate per year for ages:
                Usia 18-45 tahun                                3% pada usia 20 tahun menurun                                     18-45 years old
                                                             linier sampai dengan usia 45 tahun/
                                                              3% to age 20 years old decreased
                                                                  linierly until age 45 years old
                Usia 46-55 tahun                                      5% per tahun/per year                                       46-55 years old




                                                               187
Page 727
                                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                     (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                        54.         DEFINED EMPLOYEE                          BENEFIT               LIABILITIES
                                                                                                    (continued)

       Program pensiun manfaat pasti (lanjutan)                                                     Defined benefit pension plan (continued)
       ii.    Komposisi aset dana pensiun, terdiri dari:                                           ii.      Pension plan assets primarily consists of:

                                                                                December 31,
                                                                      2023                                2022
              Deposito berjangka                                     13,70%                              13,70%                                                     Time deposits
              Obligasi korporasi                                     72,60%                              72,60%                                                   Corporate Bonds
              Properti                                                7,00%                               7,00%                                                           Property
              Lainnya                                                 6,70%                               6,70%                                                            Others


       iii.   Perhitungan kewajiban program pensiun manfaat                                        iii.     The calculation of defined benefit pension plan
              pasti yang diakui di dalam laporan posisi                                                     obligations recognized in the statement of
              keuangan adalah sebagai berikut:                                                              financial position are as follows:

                                                       2023        2022              2021                 2020            2019
              Nilai kini kewajiban                       961.785     912.082           986.872              868.937         738.556                          Present value of liabilities
              Nilai wajar aset program                 (839.753)   (800.814)         (763.453)            (662.634)       (533.439)                       Fair value of assets program
              Status pendanaan                           122.032     111.268           223.419              206.303         205.117                                      Funded status
              Liabilitas (aset) imbalan pasti - neto     122.032     111.268           223.419              206.303         205.117         Liabilities (Assets) defined benefit - net

       iv.    Mutasi atas kewajiban program pensiun manfaat                                        iv.      The calculation movement of defined benefit
              pasti adalah sebagai berikut:                                                                 pension plan obligations are as follows:

                                                                                31 Desember/
                                                                                December 31,
                                                                      2023                                2022

              Aset imbalan pasti                                                                                                                     Asset defined benefit
                neto awal tahun                                           111.268                           223.419                            net at beginning of year
              Biaya imbalan pasti:                                                                                                                 Expenses for the year:
                Jumlah yang diakui dalam laba rugi                         19.156                                31.586       Amount recognized in the profit and losses
                Pengukuran kembali liabilitas (aset)                                                                         Remeasurement of liabilities (assets) in the
                  periode berjalan                                           6.367                          (95.354)                                       current year
              Pembayaran iuran dari pendiri                               (14.759)                          (48.383)                 Paid of contribution from employeer
              Liabilitas imbalan pasti neto                               122.032                           111.268                     Liabilities defined benefit - net

       v.     Perhitungan biaya program pensiun manfaat pasti                                      v.       The calculation of defined benefit pension plan
              yang diakui di dalam laporan laba rugi adalah                                                 expenses recognized in the statement of profit
              sebagai berikut:                                                                              or loss are as follows:

                                                                      2023                                2022
              Biaya jasa kini                                             10.922                              14.830                                        Current service cost
              Biaya jasa lalu - vested                                                                                                               Past service cost - vested
              Keuntungan/kerugian atas penyelesaian                                                                                                  Gain/losses on settlement
              Bunga neto atas liabilitas (aset) imbalan:                                                                              Net interest on liabilities (asset) defined:
                 Biaya bunga                                                67.494                             74.015                                               Interest cost
                 Pendapatan bunga dari aset                               (59.260)                           (57.259)                            Interest income from assets
              Biaya imbalan kerja yang diakui di                                                                                      Recognized employee benefit cost on
                                                                          19.156                             31.586
                laporan laba rugi                                                                                                                 statement of profit or loss




                                                                               188
Page 728
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


  54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                           54.     DEFINED EMPLOYEE                    BENEFIT          LIABILITIES
                                                                                    (continued)

        Program pensiun manfaat pasti (lanjutan)                                    Defined benefit pension plan (continued)

        vi.    Mutasi atas nilai wajar aset program adalah                          vi.    The movement in the fair value of plan asset
               sebagai berikut:                                                            are as follows:

                                                          2023                            2022
               Saldo awal                                    800.814                         763.453                                   Beginning balance
               Hasil pengembangan riil                         59.260                          57.259                            Actual investment result
               Imbalan hasil atas aset program                  5.516                        (22.775)                              Return on plan assets
               Pembayaran iuran-iuran – pemberi kerja          14.759                          44.919                     Contribution paid – employer’s
               Pembayaran iuran-iuran – peserta program         3.209                           3.463                  Contribution paid – employee plan
               Pembayaran imbalan kerja                      (43.805)                        (45.505)                                  Actual benefit paid
               Saldo akhir                                   839.753                         800.814                                     Ending balance

        vii.   Perhitungan biaya program pensiun manfaat pasti                      vii. The calculation of defined benefit pension plan
               yang diakui di dalam penghasilan komprehensif                             expenses      recognized     in    the    other
               lain adalah sebagai berikut:                                              comprehensive income are as follows:

                                                          2023                            2022
               Keuntungan (kerugian) aktuaria                                                                                     Actuarial gain (losses)
                pada kewajiban                               11.883                        (118.130)                                      on obligation
               Keuntungan (kerugian) aktuaria pada aset      (5.516)                          22.775                    Actuarial gain (losses) on asset
               Biaya yang diakui di                                                                                                Recognized cost in
                penghasilan komprehensif lain                    6.367                      (95.355)                   other comprehensive income

        Imbalan pasca kerja program manfaat lain pada dana                         Post-employment benefits from other programs on
        pensiun                                                                    pension funds

        Berdasarkan Peraturan Otoritas Jasa Keuangan                               Based on the Financial Services Authority Regulation
        No.5/POJK.05/2017 tentang iuran, manfaat pensiun,                          No.5/POJK.05/2017        concerning     contributions,
        dan manfaat lain yang diselenggarakan oleh dana                            pension benefits, and other benefits held by pension
        pensiun, selain menyelenggarakan program pensiun,                          funds, in addition to organizing pension programs,
        DPPK, dan DPLK, Bank dapat menyelenggarakan atau                           DPPK, and DPLK, the Bank can organize or provide
        memberikan manfaat lain kepada peserta. Manfaat lain                       other benefits to participants. Another benefit is the
        adalah pembayaran manfaat selain manfaat pensiun                           payment of benefits other than pension benefits that
        yang dapat dilakukan oleh Dana Pensiun dan diatur                          can be made by the Pension Fund and regulated in
        dalam peraturan Dana Pensiun. Imbalan pegawai                              the Pension Fund regulations. Employee benefits are
        dihitung berdasarkan Peraturan Dana Pensiun Bank                           calculated based on Pension Fund Regulations of
        Pembangunan Daerah Jawa Timur, Tbk No.                                     the Bank Pembangunan Daerah Jawa Timur, Tbk
        058/050.2/DIR/HCP/KEP tanggal 12 Maret 2019 yang                           No.058/050.2/DIR/HCP/KEP dated March 12, 2019
        telah disahkan berdasarkan Keputusan Dewan                                 which was ratified based on the Decision of the
        Komisioner Otoritas Jasa Keuangan No.Kep-                                  Board of Commissioners of the Financial Services
        24/NB.1/2019 tanggal 14 Juni 2019. Bank menentukan                         Authority No.Kep-24/NB.1/2019 dated June 14,
        manfaat lain bagi Peserta dalam tiga bentuk, antara                        2019. The Bank determines other benefits for
        lain dana manfaat tambahan, dana santunan                                  Participants in three forms, including additional
        kesehatan, dan dana santunan kematian. Manfaat ini                         benefit funds, health compensation funds, and death
        mulai diberikan oleh Bank terhitung sejak disahkan                         compensation funds. This benefit will be provided by
        oleh Otoritas Jasa Keuangan.                                               the Bank starting from ratified by the Financial
                                                                                   Service Authority.




                                                             189
Page 729
                                                                               The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                         PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                         JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                        NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                        As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                    and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                               54.     DEFINED EMPLOYEE                   BENEFIT           LIABILITIES
                                                                                       (continued)

       Program pensiun manfaat pasti (lanjutan)                                        Defined benefit pension plan (continued)
       i.     Penilaian aktuaria atas beban pensiun dihitung                           i.     Actuarial valuation on pension expense is
              oleh Kantor Konsultan Aktuaria Agus Susanto                                     calculated by Kantor Konsultan Aktuaria Agus
              untuk tanggal valuasi per 31 Desember 2023 dan                                  Susanto for the valuation date as of December
              2022. Penilaian aktuaria telah sesuai dengan                                    31, 2023 and 2022. Actuarial valuation is in
              PSAK 24 (revisi 2016) dengan menggunakan                                        accordance with PSAK 24 (revised 2016) using
              metode     Projected      Unit   Credit   serta                                 the projected unit credit method and considering
              mempertimbangkan       asumsi-asumsi    sebagai                                 the following assumptions:
              berikut:

                                                                    2023                      2022

              Asumsi ekonomi                                                                                                   Economic assumptions
              Tingkat diskonto                                    7.00%                       7.40%                                        Discount rate
              Tingkat kenaikan penghasilan dasar pensiun          0.00%                       0.00%                        Pension basic income growth
              Tingkat bunga imbal hasil investasi aset            7.00%                       7.40%                        Investment yield of plan aset

              Asumsi lainnya                                                                                                       Other assumptions
              Tingkat mortalita                                              GAM-1971                                                     Mortality table
              Usia pensiun normal                                          58 tahun/years                                        Normal retirement age
              Tingkat cacat                                                 10% Mortalita                                                 Disability rate
              Tingkat pengunduran diri untuk usia:                                                                    Retirement rate per year for ages:
              Usia 18-45 tahun                                  3% pada usia 20 tahun menurun                                           18-45 years old
                                                             linier sampai dengan usia 45 tahun/
                                                              3% to age 20 years old decreased
                                                                  linierly until age 45 years old
              Usia 46-55 tahun                                        5% per tahun/per year                                                46-55 years old

       ii.    Komposisi aset dana pensiun, terdiri dari:                               ii.    Composition of pension fund assets, consisting
                                                                                              of:

                                                           2023                                2022

              Deposito berjangka                           13,70%                              13,70%                                            Time deposits
              Obligasi korporasi                           72,60%                              72,60%                                          Corporate Bonds
              Properti                                      7,00%                               7,00%                                                  Property
              Lainnya                                       6,70%                               6,70%                                                   Others


       iii.   Perhitungan kewajiban program pensiun manfaat                            iii.   Calculation of other benefit pension plan
              lain yang diakui di dalam laporan posisi keuangan                               obligations recognized in the financial position
              adalah sebagai berikut:                                                         report are as follows:

                                                            2023                                2022

              Nilai kini kewajiban                                   228.754                              204.612                      Present value of liabilities
              Nilai wajar aset program                             (271.404)                            (259.207)                   Fair value of assets program
              Biaya dibayar dimuka                                  (42.650)                             (54.595)                             Prepaid expenses




                                                                   190
Page 730
                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                 and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                    (Expressed in millions of Rupiah, unless otherwise stated)


  54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                             54.   DEFINED EMPLOYEE                   BENEFIT              LIABILITIES
                                                                                    (continued)
        Program pensiun manfaat pasti (lanjutan)                                    Defined benefit pension plan (continued)
        iv.   Mutasi atas kewajiban program pensiun manfaat                         iv.   The mutations of the defined benefit pension
              pasti adalah sebagai berikut:                                               plan obligations are as follows:
                                                           2023                            2022

              Liabilitas (aset) imbalan pasti                                                                               Liabilities (asset) defined benefit
                neto awal tahun                                    54.595                           22.940                           net at beginning of year
              Biaya imbalan pasti:                                                                                                      Expenses for the year:
              Jumlah yang diakui dalam laba rugi                   (4.591)                          (4.433)        Amount recognized in the profit and losses
              Pengukuran kembali liabilitas (aset)                                                                      Remeasurement of liabilities (assets)
                periode berjalan                                   (7.354)                          16.317                               in the current year
              Pembayaran iuran dari pendiri                              -                          19.771               Paid of contribution from employeer
              Liabilitas imbalan pasti neto                        42.650                           54.595                  Liabilities defined benefit - net

        v.    Perhitungan biaya program pensiun manfaat pasti                       v.    The calculation of the cost of a defined benefit
              yang diakui di dalam Laporan Laba Rugi adalah                               pension plan recognized in the Income
              sebagai berikut:                                                            Statement is as follows:
                                                           2023                            2022

              Biaya jasa kini                                       4.591                            4.433                                  Current service cost
              Bunga neto atas liabilitas (aset) imbalan:                                                              Net interest on liabilities (asset) defined:
                Biaya bunga                                        15.141                           14.891                                        Interest cost
                Pendapatan bunga dari aset                        (19.181)                         (16.611)                      Interest income from assets
                Bunga atas dampak batasan aset                      4.040                            1.720                     Interest of the asset ceiling
              Biaya imbalan kerja yang diakui di                                                                      Recognized employee benefit cost on
                                                                   4.591                             4.434
               laporan laba rugi                                                                                               statement of profit or loss


        vi.   Mutasi atas nilai wajar aset program pensiun                          vi.   The movement in the fair value of a defined
              manfaat pasti adalah sebagai berikut:                                       benefit pension asset are as follows:
                                                           2023                            2022

              Saldo awal                                          259.207                          221.492                                 Beginning balance
              Hasil yang diharapkan dari aset                      19.181                           16.611                     Results expected from assets
              Pembayaran iuran-iuran – pemberi kerja                     -                          19.772               Payment of contributions - employers
              Pembayaran imbalan kerja                             (7.738)                          (6.777)                   Payment of employee benefits
              Laba (rugi) aktuaria pada aset                           754                            8.109                   Actuarial gain (loss) on assets
              Saldo akhir                                         271.404                          259.207                                   Ending balance




                                                                  191
Page 731
                                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                          (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                 54.     DEFINED EMPLOYEE                     BENEFIT             LIABILITIES
                                                                                         (continued)

       Program pensiun manfaat pasti (lanjutan)                                          Defined benefit pension plan (continued)

       vii.    Perhitungan biaya program pensiun manfaat pasti                          vii. The calculation of the cost of a defined benefit
               yang diakui di dalam penghasilan komprehensif                                 pension     plan     recognized      in   other
               lain adalah sebagai berikut:                                                  comprehensive income is as follows:

                                                               2023                              2022

               Keuntungan (kerugian) aktuaria pada kewajiban           12.149                            (6.487)               Actuarial gains (losses) on liabilities
               Keuntungan aktuaria pada aset                            (754)                            (8.109)                          Actuarial gains on assets
               Perubahan pada dampak batasan aset                                                                                   Changes to the impact of asset
                                                                      (15.985)                            29.935
               tidak termasuk bunga                                                                                                          limits exclude interest
               Diakui di penghasilan komprehensif lain                 (4.590)                            15.339      Recognised in other comprehensive income



       viii.   Pengukuran kembali atas liabilitas (aset) program                        viii. Measurement of return on liabilities (assets)
               pensiun manfaat pasti adalah sebagai berikut:                                  defined benefit pension plans is as follows:

                                                               2023                              2022

               Saldo awal                                              (1.830)                           (17.169)                                    Beginning balance
               (Keuntungan) kerugian aktuaria pada kewajiban           12.149                             (6.487)                 Actuarial (gains) losses on liabilities
               (Keuntungan) kerugian aktuaria pada aset                  (754)                            (8.109)                  Actuarial (gains) losses on assets
               Perubahan pada dampak batasan aset                                                                                     Changes to the impact of asset
                                                                      (15.986)                            29.935
               tidak termasuk bunga                                                                                                              limits exclude interest
               Jumlah pengukuran kembali atas aset                                                                                   Amount of re-measurement of
                                                                       (6.421)                            (1.830)
                   imbalan pasti neto                                                                                                   net defined benefit assets

       Program pensiun iuran pasti                                                      Defined contribution pension plan

       Bank juga memiliki program pensiun iuran pasti, untuk                            Bank also has a defined contribution pension plan for
       karyawannya. Bank mengikutsertakan pegawai tetap                                 its employees. The Bank has a participate permanent
       dalam program pensiun iuran pasti yang dikelola oleh                             employee in defined contribution pension plan is
       Dana Pensiun Lembaga Keuangan PT Bank Rakyat                                     managed by Dana Pensiun Lembaga Keuangan PT
       Indonesia (Persero) Tbk.                                                         Bank Rakyat Indonesia (Persero) Tbk.

       Pegawai tetap yang bergabung dengan Bank setelah                                 The permanent employees who joined the Bank after
       bulan April 2012, memiliki hak atas program pensiun                              April 2012, are entitled to benefits under defined
       iuran pasti atau manfaat yang disediakan sesuai                                  contribution plan or the benefits provided for under
       dengan Undang-Undang Tenaga Kerja No.13/2003,                                    the Labour Law No.13/2003, whichever is higher.
       mana yang lebih tinggi.

       Pegawai tetap yang bergabung dengan Bank sebelum                                 The permanent employees who joined the Bank prior
       bulan April 2012, memiliki hak atas program pensiun                              to April 2012, are entitled to benefits pension plan
       manfaat pasti ditambah dengan program pensiun iuran                              plus defined contribution pension plan, or the benefits
       pasti atau manfaat yang disediakan sesuai dengan                                 provided for under the Labour Law No.13/2003,
       Undang-Undang Tenaga Kerja No.13/2003, mana yang                                 whichever is higher.
       lebih tinggi.




                                                                      192
Page 732
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                 (Expressed in millions of Rupiah, unless otherwise stated)


  54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                           54.     DEFINED EMPLOYEE                    BENEFIT         LIABILITIES
                                                                                    (continued)
        Program pensiun iuran pasti (lanjutan)                                      Defined contribution pension plan (continued)
        Pada tahun 2016, Bank melakukan evaluasi                                   In year 2016, the Bank evaluates the calculation of
        perhitungan program pensiun iuran pasti dimana                             defined contribution pension plan where the
        imbalan pegawai dihitung sebesar selisih Undang-                           employees benefit is calcuated as the difference
        Undang Ketenagakerjaan No.13 tahun 2003 dan                                between the Labour Law No.13/2003 and defined
        imbalan pensiun sesuai iuran Bank ke Dana Pensiun                          contribution pension based on contribution Bank to
        Lembaga Keuangan (DPLK), di luar uang penggantian                          Dana Pensiun Lembaga Keuangan (DPLK), except
        imbalan yang berkaitan dengan cuti tahunan, ongkos                         replacement of annual leave rights, the cost of return
        pulang ketempat dimana pegawai diterima bekerja.                           to a place where an employee was hired.
        i.    Penilaian aktuaria atas program pensiun iuran                         i.    The actuarial calculations of difference defined
              pasti    selisih     dengan      Undang-Undang                              contribution pension plan Labour Law
              Ketenagakerjaan No.13 tahun 2003 dan imbalan                                No.13/2003 and defined contribution pension
              pensiun sesuai iuran Bank ke Dana Pensiun                                   based on contribution Bank to Dana Pensiun
              Lembaga Keuangan (DPLK) untuk tahun yang                                    Lembaga Keuangan (DPLK) for the year ended
              berakhir pada 31 Desember 2023 dan 2022,                                    December 31, 2023 and 2022, were prepared
              dilakukan oleh Kantor Konsultan Aktuaria Agus                               by a registered actuarial consulting firm, Kantor
              Susanto dengan menggunakan metode Projected                                 Konsultan Aktuaria Agus Susanto, using the
              Unit Credit sebagaimana yang dijelaskan dalam                               “Projected Unit Credit” method as discussed an
              laporan aktuaris pada tanggal 4 Januari 2024 dan                            independent actuary report dated January 4,
              24 Januari 2023 yaitu sebagai berikut:                                      2024 and January 24, 2023, are as follows:
              Asumsi-asumsi utama yang digunakan dalam                                    Key assumptions used                  in    the    actuarial
              perhitungan dalam perhitungan adalah:                                       calculation are as follows:
                                                                    31 Desember/
                                                                    December 31,
                                                          2023                            2022
              Asumsi ekonomi                                                                                                 Economic assumptions
              Tingkat diskonto                           7,10%                            7,40%                                         Discount rate
              Tingkat kenaikan gaji                      5,00%                            5,00%                             Annual salary growth rate
              Tingkat bunga imbal hasil investasi aset   0,00%                            0,00%                          Investment yield of plan aset
              Asumsi lainnya                                                                                                     Other assumptions
              Tingkat mortalita                                        GAM-1971                                                         Mortality table
              Usia pensiun normal                                    58 tahun/years                                            Normal retirement age
              Tingkat cacat                                           10% Mortalita                                                     Disability rate
              Tingkat pengunduran diri untuk usia:                                                                  Retirement rate per year for ages:
              Usia 18-45 tahun                              3% pada usia 20 tahun menurun                                             18-45 years old
                                                         linier sampai dengan usia 45 tahun/
                                                          3% to age 20 years old decreased
                                                              linierly until age 45 years old
              Usia 46-55 tahun                                    5% per tahun/per year                                                46-55 years old

        ii.   Biaya imbalan kerja yang dibebankan pada                              ii.   The employee benefit expenses recognized in
              laporan laba rugi adalah sebagai berikut:                                   profit or loss, are as follows:

                                                          2023                             2022
              Biaya jasa kini                                    2.649                            2.653                          Current service cost
              Biaya bunga neto                                   3.731                            4.348                              Interest cost net
              Biaya yang dibebankan pada                                                                                      Expense recognized in
                laporan laba rugi                                6.380                           7.001                   statement of profit or loss
                                                                     31 Desember/




                                                               193
Page 733
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                         54.     DEFINED EMPLOYEE                    BENEFIT         LIABILITIES
                                                                                 (continued)

       Program pensiun iuran pasti (lanjutan)                                    Defined contribution pension plan (continued)
       iii.   Rekonsiliasi atas perubahan (aset) liabilitas                     iii.   Following are the reconciliation                    of the
              imbalan pasca kerja selama tahun berjalan                                movements of employee benefit                       (assets)
              adalah sebagai berikut:                                                  liabilities during the years:

                                                          2023                         2022
              Saldo awal                                        50.411                     57.968                               Beginning balance
              Beban tahun berjalan                               6.380                      7.001                              Current service cost
              Pengukuran kembali                                                                                                Remeasurement of
              imbalan kerja - neto                            17.402                       (14.558)                          employee benefit - net
              Pembayaran imbalan                             (22.895)                            -                              Actual benefit paid
              Saldo akhir                                     51.298                        50.411                                Ending balance
                                                                    31 Desember/

       iv.    Mutasi nilai kini liabilitas imbalan pasca kerja                  iv.    The movements in the present value of
              adalah sebagai berikut:                                                  employee benefit are as follows:
                                                                   December 31,
                                                         2023                          2022
              Saldo awal                                     50.411                       57.968                               Beginning balance
              Biaya jasa kini                                 2.649                        2.653                              Current service cost
              Biaya bunga                                     3.731                        4.348                                     Interest cost
              Pembayaran imbalan                            (22.895)                           -                               Actual benefit paid
              Keuntungan aktuaria                                                                                                   Actuarial gain
                pada kewajiban                               17.402                       (14.558)                                 on obligation
              Saldo akhir                                    51.298                        50.411                                Ending balance


       v.     Pengukuran kembali (aset) liabilitas imbalan kerja                 v.    Remeasurement of net employee benefit (aset)
              neto:                                                                    liabilities:

                                                                    December 31,
                                                         2023                          2022

              Saldo pada awal tahun                             44.627                     59.185                     Balance at beginning of year
              Keuntungan aktuaria                                                                                                   Actuarial gain
               pada kewajiban                                   17.401                    (14.558)                                 on obligation
              Saldo akhir                                       62.028                     44.627                                 Ending balance

       Liabilitas atas imbalan pasca kerja lainnya adalah                        The liability for post employee benefits consisted of
       program asuransi tunjangan hari tua yang telah dikelola                   mutual aid pension insurance plan is manged by PT
       oleh PT Asuransi Jiwasraya (Persero), dan program                         Asuransi Jiwasraya (Persero), and employee death
       uang duka sebagai jasa pengabdian.                                        benefits program as service devotion.
       Imbalan jangka panjang lainnya adalah program                             Other long-term employee benefits is gratuity for
       penghargaan masa kerja. Imbalan tersebut diberikan                        service program. The benefits is granted to
       kepada pegawai tetap yang jumlahnya sebesar 2 (dua)                       employees at amount of 2 (two) until 4 (four) last of
       sampai dengan 4 (empat) kali penghasilan terakhir                         salary with working service periods of 15 years, 25
       dengan masa kerja 15 tahun, 25 tahun dan 30 tahun.                        years and 30 years.
       Uang Duka Sebagai Jasa Pengabdian                                         Death Benefit To Employees Service Devotion
       Bank memberikan uang duka sebagai jasa pengabdian                         Bank provides employee death benefit to employees
       bagi pegawai yang meninggal dunia sebesar nominal                         who have passed away at fixed amount plus 1 (one)
       yang ditetapkan ditambah dengan 1 (satu) kali                             month salary of his/her last month plus 1 (one)
       penghasilan terakhir serta ditambah 1 (satu) kali                         month salary of the following month from his/her
       penghasilan bulan berikutnya. Program tersebut                            death as his/her service devotion. This program is
       dikelola sendiri oleh Bank.                                               self – managed by the Bank.

                                                                194
Page 734
                                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                               NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                               As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                           and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                              (Expressed in millions of Rupiah, unless otherwise stated)


54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                    54.       DEFINED EMPLOYEE                       BENEFIT         LIABILITIES
                                                                                             (continued)

      Uang Duka Sebagai Jasa Pengabdian (lanjutan)                                           Death Benefit To Employees Service Devotion
                                                                                             (continued)
      Penilaian aktuarial atas uang duka jasa pengabdian                                     The actuarial valuation of employee death benefit
      dan penghargaan masa kerja untuk periode tahun yang                                    program and gratuity for service program for the
      berakhir pada 31 Desember 2023 dan untuk tahun                                         year ended December 31, 2023 and for the year
      yang berakhir pada 31 Desember 2022, dihitung oleh                                     ended December 31, 2022, were performed by
      Kantor Konsultan Aktuaria Agus Susanto dengan                                          Kantor Konsultan Aktuaria Agus Susanto, using the
      menggunakan metode "Projected Unit Credit"                                             "Projected Unit Credit" method as stated in its report
      sebagaimana tercantum dalam laporan pada tanggal 4                                     dated January 4, 2024 and January 24, 2023.
      Januari 2024 dan 24 Januari 2023.

      Asumsi-asumsi utama yang digunakan                            dalam                    Key assumptions used in the actuarial calculation
      perhitungan dalam perhitungan adalah:                                                  are as follows:

                                                                         December 31,
                                                                 2023                           2022
      Asumsi ekonomi                                                                                                                   Economic assumptions
      Tingkat diskonto                                        6,90%                             7,40%                                              Discount rate
      Tingkat kenaikan gaji                                   5,00%                             5,00%                                  Annual salary growth rate
      Tingkat bunga imbal hasil investasi aset                0,00%                             0,00%                               Investment yield of plan aset
      Asumsi lainnya                                                                                                                        Other assumptions
      Tingkat mortalita                                    GAM-1971                         GAM-1971                                               Mortality table
      Usia pensiun normal                                58 tahun/years                   58 tahun/years                                  Normal retirement age
      Tingkat cacat                                       10% Mortalita                    10% Mortalita                                           Disability rate
      Tingkat pengunduran diri untuk usia:                                                                                     Retirement rate per year for ages:
                                                               3% pada usia 20 tahun menurun
      Usia 18-45 tahun                                       linier sampai dengan usia 45 tahun/                                                   18-45 years old
                                                             3% to age 20 years old decreased
                                                                   linierly until age years old
      Usia 46-55 tahun                                               5% per tahun/per year                                                         46-55 years old



       i.   Biaya imbalan kerja yang dibebankan pada                                       i.     The employee benefit expenses recognized in
            laporan laba rugi adalah sebagai berikut:                                             profit or loss, are as follows:

                                                                              31 Desember/
                                                                              December 31,
                                                                2023                                         2022
                                             Uang duka sebagai           Program             Uang duka              Program
                                              jasa pengabdian/         penghargaan          sebagai jasa          penghargaan
                                               Death benefit as        masa kerja/          pengabdian/           masa kerja/
                                             employee service          Graduity for        Death benefit as       Graduity for
                                                  devotion           service program      employee service service program
                                                                                              devotion
             Biaya jasa kini                               275                 4.902                    265                 4.358                Current service cost
             Biaya bunga neto                              177                 3.962                    162                 3.104                    Oterest cost net
             Rugi aktuaria                                    -                5.287                        -             11.355                        Actuarial loss
             Biaya yang dibebankan pada                                                                                                      Expenses recognized in
               laporan laba rugi                           452                14.151                   427                18.817         statement of profit or loss




                                                                            195
Page 735
                                                                                        The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                      PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                      JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                     NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                     As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                 and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                     (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                        54.       DEFINED EMPLOYEE                         BENEFIT          LIABILITIES
                                                                                                  (continued)
       Uang Duka Sebagai Jasa Pengabdian (lanjutan)                                              Death Benefit To Employees Service Devotion
                                                                                                 (continued)

       ii.    Rekonsiliasi atas perubahan liabilitas imbalan                                     ii.     Following are the reconciliation of the
              kerja selama tahun berjalan adalah sebagai                                                 movements of employee benefit liabilities during
              berikut:                                                                                   the years:
                                                                     2023                                         2022
                                                  Uang duka sebagai           Program              Uang duka             Program
                                                   jasa pengabdian/         penghargaan           sebagai jasa         penghargaan
                                                    Death benefit as        masa kerja/           pengabdian/          masa kerja/
                                                  employee service          Graduity for         Death benefit as      Graduity for
                                                       devotion           service program       employee service service program
              Saldo awal                                      (2.401)              (53.546)         devotion
                                                                                                           (2.164)            (41.384)                     Beginning balance
              Beban tahun berjalan                              (452)              (14.151)                  (427)              (18.817)               Current year expenses
              Pengukuran kembali imbalan                                                                                                        Remeasurement of employee
                kerja - neto                                      91                      -                    28                      -                       benefits - net
              Pembayaran imbalan kerja                            87                 7.195                    162                 6.655                    Actual benefit paid
              Liabilitas imbalan pasti neto                   (2.675)              (60.502)                (2.401)              (53.546)     Liabilities defined benefit - net



       iii.   Mutasi nilai kini liabilitas imbalan pasca kerja                                   iii.    The movements in the present value of
              adalah sebagai berikut:                                                                    employee benefit are as follows:
                                                                     2023                                         2022
                                                  Uang duka sebagai           Program              Uang duka              Program
                                                   jasa pengabdian/         penghargaan           sebagai jasa          penghargaan
                                                    Death benefit as        masa kerja/           pengabdian/           masa kerja/
                                                  employee service          Graduity for         Death benefit as       Graduity for
                                                       devotion           service program       employee service      service program
                                                                                                    devotion
              Saldo awal                                      (2.401)             (53.546)                 (2.164)             (41.384)                     Beginning balance
              Biaya jasa kini                                   (275)              (4.902)                   (265)               (4.358)                  Current service cost
              Biaya bunga                                       (177)              (3.962)                   (162)               (3.104)                      Interest cost net
              Biaya jasa lalu                                       -                    -                        -                                          Past service cost
              Pembayaran imbalan                                   87                7.195                     162                6.655                     Actual benefit paid
              Kerugian aktuarial pada kewajiban                    91              (5.287)                      28             (11.355)         Actuarial losses on obligation
              Liabilitas imbalan pasti neto                   (2.675)             (60.502)                 (2.401)              (53.546)     Liabilities defined benefit - net



       iv.    Pengukuran kembali liabilitas imbalan kerja neto:                                  i.      Remeasurement              of     net    employee           benefit
                                                                                                         liabilities:
                                                                                    December 31,
                                                                     2023                                       2022
                                                  Uang duka sebagai           Program             Uang duka            Program
                                                   jasa pengabdian/         penghargaan          sebagai jasa        penghargaan
                                                    Death benefit as        masa kerja/          pengabdian/         masa kerja/
                                                  employee service          Graduity for       Death benefit as      Graduity for
                                                       devotion           service program     employee service service program
                                                                                                   devotion
              Saldo pada awal tahun                                501                    -                  529                  -            Balance at beginning of year
              Kerugian aktuarial pada kewajiban                    (91)                   -                  (28)                 -            Actuarial losses on obligation
              Pendapatan komprehensif lain                         410                    -                  501                  -          Other comprehensive income




                                                                             196
Page 736
                                                                             The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                          PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                          JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                         NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                         As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                     and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                        (Expressed in millions of Rupiah, unless otherwise stated)


 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                 54.     DEFINED EMPLOYEE                      BENEFIT          LIABILITIES
                                                                                         (continued)

       Program penghargaan purna tugas                                                   After duty award program

       Penilaian aktuarial atas program penghargaan purna                                The actuarial valuation of afterduty award program
       tugas untuk periode tahun yang berakhir pada 31                                   for the years ended December 31, 2023 and 2022,
       Desember 2023 dan 2022, dihitung oleh Kantor                                      were performed by Kantor Konsultan Aktuaria Agus
       Konsultan     Aktuaria    Agus    Susanto   dengan                                Susanto, using the "Projected Unit Credit" method
       menggunakan metode "Projected Unit Credit"                                        as stated in its report dated January 4, 2024 and
       sebagaimana tercantum dalam laporan pada tanggal 4                                January 24, 2023.
       Januari 2024 dan 24 Januari 2023.

       Asumsi-asumsi utama yang digunakan                       dalam                    Key assumptions used in the actuarial calculation
       perhitungan dalam perhitungan adalah:                                             are as follows:

                                                              2023                                              2022

       Asumsi ekonomi                                                                                                                    Economic assumptions
       Tingkat diskonto                                      7,00%                                             7,40%                               Discount rate
       Tingkat kenaikan gaji                                 5,00%                                             5,00%                   Annual salary growth rate
       Tingkat bunga imbal hasil investasi
       aset                                                  0,00%                                             0,00%               Investment yield of plan aset

       Asumsi lainnya                                                                                                                          Other assumptions
       Tingkat mortalita                                   GAM-1971                                          GAM-1971                               Mortality table
       Usia pensiun normal                               58 tahun/years                                    58 tahun/years                  Normal retirement age
       Tingkat cacat                                     10% Mortalita                                     10% Mortalita                            Disability rate
       Tingkat pengunduran diri untuk usia:                                                                                     Retirement rate per year for ages:
       Usia 18-45 tahun                           3% pada usia 20 tahun menurun                    3% pada usia 20 tahun menurun                  18-45 years old
                                               linier sampai dengan usia 45 tahun/              linier sampai dengan usia 45 tahun/
                                                 3% to age 20 years old decreased                 3% to age 20 years old decreased
                                                    linierly until age 45 years old                  linierly until age 45 years old
       Usia 46-55 tahun                                 5% per tahun/per year                            5% per tahun/per year                    46-55 years old



       i.    Biaya imbalan kerja yang dibebankan pada                                     i.    The employee benefit expenses recognized in
             laporan laba rugi adalah sebagai berikut:                                          profit or loss, are as follows:
                                                                          2023                     2022
              Biaya jasa kini                                                    4.097                    3.810                     Current service cost
              Biaya bunga neto                                                   1.131                    1.203                        Interest cost net
              Biaya yang dibebankan pada                                                                               Expense recognized in statement
                                                                                 5.228                    5.013
                laporan laba rugi                                                                                                     of profit or loss


       ii.   Rekonsiliasi atas perubahan liabilitas imbalan                               ii.   Following are the reconciliation of the
             kerja selama tahun berjalan adalah sebagai                                         movements of employee benefit liabilities
             berikut:                                                                           during the years:

                                                                          2023                      2022
              Saldo awal                                                      15.284                    15.832                            Beginning balance
              Beban tahun berjalan                                              5.228                     5.013                         Current service cost
              Keuntungan aktuarial pada kewajiban                              (2.774)                   (5.561)                 Actuarial gain on obligation
              Pembayaran imbalan                                                 (897)                        -                           Actual benefit paid
              Saldo akhir                                                     16.841                    15.284                              Ending balance




                                                                     197
Page 737
                                                                         The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                              and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                  (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                         54.     DEFINED EMPLOYEE                    BENEFIT        LIABILITIES
                                                                                 (continued)

       Program penghargaan purna tugas (lanjutan)                                After duty award program (continued)

       iii.   Mutasi nilai kini liabilitas imbalan pasca kerja                    iii.   The movements in the present value of
              adalah sebagai berikut:                                                    employee benefit are as follows:

                                                                  2023                     2022
              Saldo awal                                              15.284                   15.832                          Beginning balance
              Biaya jasa kini                                           4.097                    3.810                       Current service cost
              Biaya jasa lalu                                               -                        -                          Past service cost
              Biaya bunga neto                                          1.131                    1.203                           Interest cost net
              Keuntungan aktuarial pada kewajiban                      (2.774)                  (5.561)               Actuarial gain on obligation
              Pembayaran imbalan                                         (897)                       -                         Actual benefit paid
              Saldo akhir                                             16.841                   15.284                            Ending balance



       iv.    Pengukuran kembali liabilitas imbalan kerja neto:                   iv. Remeasurement             of    net    employee       benefit
                                                                                      liabilities:

                                                                  2023                     2022
              Saldo awal                                                 5.561                        -                        Beginning balance
              Laba aktuarial                                             2.774                    5.561                            Acruarial gain
              Saldo akhir                                                8.335                    5.561                         Ending balance



       Program Pensiun Asuransi Dwiguna dan Program                              Endowment Insurance Pension Program and
       Cuti Besar                                                                Long Service Leave Program
       Penilaian aktuarial atas program pensiun dwiguna dan                      The actuarial valuation of endowment insurance
       cuti besar untuk periode tahun yang berakhir pada 31                      pension program and long service leave program for
       Desember 2023 dan 2022, dihitung oleh Kantor                              the year ended December 31, 2023 and 2022, were
       Konsultan     Aktuaria     Agus   Susanto     dengan                      performed by Kantor Konsultan Aktuaria Agus
       menggunakan metode "Projected Unit Credit"                                Susanto, using the "Projected Unit Credit" method
       sebagaimana tercantum dalam laporan pada tanggal 4                        as stated in its report dated January 4, 2024 and
       Januari 2024 dan 24 Januari 2023.                                         January 24, 2023.
        Program Imbalan cuti besar adalah program                                Long service leave program are employee leave
        penggantian hak cuti karyawan. Imbalan tersebut                          entitlement replacement programs. The benefits are
        diberikan kepada pegawai tetap yang telah bekerja                        given to permanent employees who have worked for
        selama 6 tahun berturut – turut dan kelipatannya sejak                   6 consecutive years and multiples since being
        diangkat sebagai pegawai tetap. Penggantian hak cuti                     appointed as permanent employees. Replacement
        besar diberikan sebesar 2 (dua) kali upah pokok.                         for grand leave is given at 2 (two) times
                                                                                 the basic salary




                                                              198
Page 738
                                                                                            The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                  and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                     (Expressed in millions of Rupiah, unless otherwise stated)


  54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                                              54.     DEFINED EMPLOYEE                    BENEFIT           LIABILITIES
                                                                                                       (continued)

        Program Pensiun Asuransi Dwiguna dan Program                                                   Endowment Insurance Pension Program and
        Cuti Besar                                                                                     Long Service Leave Program
                                                      2023
                                    Program Pensiun
                                   Asuransi Dwiguna/
                                  Endowment Insurance                                              Program Cuti besar/
                                    Pension Program                                             Long service leave program
        Asumsi ekonomi                                                                                                                             Economic assumptions
        Tingkat diskonto                 6,90%                                                              6,90%                                            Discount rate
        Tingkat kenaikan gaji            5,00%                                                              5,00%                                Annual salary growth rate
        Tingkat bunga imbal hasil
        investasi aset                   0,00%                                                              0,00%                             Investment yield of plan aset

        Asumsi lainnya                                                                                                                                  Other assumptions
        Tingkat mortalita                                  GAM-1971                                       GAM-1971                                           Mortality table
        Usia pensiun normal                              58 tahun/years                                 58 tahun/years                              Normal retirement age
        Tingkat cacat                                    10% Mortalita                                  10% Mortalita                                        Disability rate
        Tingkat pengunduran diri untuk usia:                                                                                             Retirement rate per year for ages:
        Usia 18-45 tahun                          3% pada usia 20 tahun menurun                  3% pada usia 20 tahun menurun                             18-45 years old
                                               linier sampai dengan usia 45 tahun/            linier sampai dengan usia 45 tahun/
                                                 3% to age 20 years old decreased               3% to age 20 years old decreased
                                                    linierly until age 45 years old                linierly until age 45 years old
        Usia 46-55 tahun                                5% per tahun/per year                          5% per tahun/per year                               46-55 years old


                                                                                       2022
                                                      Program Pensiun
                                                     Asuransi Dwiguna/
                                                    Endowment Insurance                             Program Cuti besar/
                                                      Pension Program                            Long service leave program
        Asumsi ekonomi                                                                                                                              Economic assumptions
        Tingkat diskonto                                      7,40%                                          7,40%                                            Discount rate
        Tingkat kenaikan gaji                                 5,00%                                          5,00%                                Annual salary growth rate
        Tingkat bunga imbal hasil
        investasi aset                                        0,00%                                          0,00%                             Investment yield of plan aset

        Asumsi lainnya                                                                                                                                  Other assumptions
        Tingkat mortalita                                  GAM-1971                                       GAM-1971                                           Mortality table
        Usia pensiun normal                              58 tahun/years                                 58 tahun/years                              Normal retirement age
        Tingkat cacat                                    10% Mortalita                                  10% Mortalita                                        Disability rate
        Tingkat pengunduran diri untuk usia:                                                                                             Retirement rate per year for ages:
        Usia 18-45 tahun                          3% pada usia 20 tahun menurun                  3% pada usia 20 tahun menurun                             18-45 years old
                                               linier sampai dengan usia 45 tahun/            linier sampai dengan usia 45 tahun/
                                                 3% to age 20 years old decreased               3% to age 20 years old decreased
                                                    linierly until age 45 years old                linierly until age 45 years old
        Usia 46-55 tahun                                5% per tahun/per year                          5% per tahun/per year                                46-55 years old




                                                                                      199
Page 739
                                                                     The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                               PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                               JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                              NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                              As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                          and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)              (Expressed in millions of Rupiah, unless otherwise stated)

 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                     54.     DEFINED EMPLOYEE                   BENEFIT         LIABILITIES
                                                                             (continued)

       Program Pensiun Asuransi Dwiguna dan Program                          Endowment Insurance Pension Program and
       Cuti Besar (lanjutan)                                                 Long Service Leave Program (continued)

       i.   Biaya imbalan kerja yang dibebankan pada                          i.    The employee benefit expenses recognized in
            laporan laba rugi adalah sebagai berikut:                               profit or loss, are as follows:

                                                                 2023

                                             Program Pensiun
                                            Asuransi Dwiguna/           Program Cuti besar/
                                           Endowment Insurance          Long service leave
                                             Pension Program                 program

            Biaya jasa kini                                  726                          5.977                          Current service cost
            Biaya bunga neto                                 458                          1.338                              Oterest cost net
            Rugi aktuaria                                       -                         (582)                                Actuarial loss
            Biaya jasa lalu - vested                            -                             -                    Past service cost - vested
            Biaya yang dibebankan pada                                                                              Expenses recognized in
                                                            1.184                        6.733
              laporan laba rugi                                                                                 statement of profit or loss


                                                                 2022

                                             Program Pensiun
                                            Asuransi Dwiguna/           Program Cuti besar/
                                           Endowment Insurance          Long service leave
                                             Pension Program                 program

            Biaya jasa kini                                  568                          5.729                           Current service cost
            Biaya bunga neto                                     -                             -                               Oterest cost net
            Rugi aktuaria                                        -                             -                                  Actuarial loss
            Biaya jasa lalu - vested                        5.618                       12.359                     Past service cost - vested
            Biaya yang dibebankan pada                                                                              Expenses recognized in
                                                            6.186                       18.088
              laporan laba rugi                                                                                 statement of profit or loss




                                                           200
Page 740
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                  PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                  JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                 NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                 As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                             and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                (Expressed in millions of Rupiah, unless otherwise stated)


 54.   LIABILITAS IMBALAN KERJA PASTI (lanjutan)                         54.        DEFINED EMPLOYEE               BENEFIT         LIABILITIES
                                                                                    (continued)

       ii.   Rekonsiliasi atas perubahan liabilitas imbalan                         ii.   Following are the reconciliation of the
             kerja selama tahun berjalan adalah sebagai                                   movements of employee benefit liabilities
             berikut:                                                                     during the years:


                                                                    2023

                                                   Program Pensiun
                                                  Asuransi Dwiguna/            Program Cuti besar/
                                                 Endowment Insurance           Long service leave
                                                   Pension Program                  program

             Saldo awal                                         6.186                       18.088                            Beginning balance
             Beban tahun berjalan                               1.184                        6.733                       Current year expenses

             Kerugian aktuarial pada kewajiban                  5.583                            -                Actuarial losses on obligation

             Pembayaran imbalan kerja                          (5.620)                     (10.175)                          Actual benefit paid
             Liabilitas imbalan pasti neto                      7.333                       14.646             Liabilities defined benefit - net



                                                                    2022

                                                   Program Pensiun
                                                  Asuransi Dwiguna/            Program Cuti besar/
                                                 Endowment Insurance           Long service leave
                                                   Pension Program                  program

             Saldo awal                                              -                           -                            Beginning balance
             Beban tahun berjalan                               6.186                       18.088                       Current year expenses

             Kerugian aktuarial pada kewajiban                       -                           -                Actuarial losses on obligation

             Pembayaran imbalan kerja                                -                           -                           Actual benefit paid
             Liabilitas imbalan pasti neto                      6.186                       18.088             Liabilities defined benefit - net




                                                              201
Page 741
                                                                             The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                       PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                       JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                      NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                      As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                  and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                      (Expressed in millions of Rupiah, unless otherwise stated)


  54.      LIABILITAS IMBALAN KERJA PASTI (lanjutan)                          54.     DEFINED EMPLOYEE                    BENEFIT        LIABILITIES
                                                                                      (continued)

           Program Pensiun Asuransi Dwiguna dan Program                               Endowment Insurance Pension Program and
           Cuti Besar (lanjutan)                                                      Long Service Leave Program (continued)

        iii.   Mutasi nilai kini liabilitas imbalan pasca kerja                       iii.   The movements in the present value of
               adalah sebagai berikut:                                                       employee benefit are as follows:


                                                     Program Pensiun
                                                    Asuransi Dwiguna/           Program Cuti besar/
                                                   Endowment Insurance          Long service leave
                                                     Pension Program                 program


               Saldo awal                                         6.186                          18.087                             Beginning balance
               Biaya jasa kini                                      726                           5.977                           Current service cost
               Biaya bunga                                          457                           1.338                                Interest cost net
               Biaya jasa lalu                                           -                        (582)                              Past service cost
               Pembayaran imbalan                                (5.619)                       (10.175)                             Actual benefit paid

               Kerugian aktuarial pada kewajiban                  5.583                                   -             Actuarial losses on obligation

               Liabilitas imbalan pasti neto                      7.333                          14.645              Liabilities defined benefit - net



                                                                      2022

                                                     Program Pensiun
                                                    Asuransi Dwiguna/           Program Cuti besar/
                                                   Endowment Insurance          Long service leave
                                                     Pension Program                 program

               Saldo awal                                                -                            -                             Beginning balance
               Biaya jasa kini                                      568                          5.729                            Current service cost
               Biaya jasa lalu                                    5.618                         12.358                               Past service cost
               Liabilitas imbalan pasti neto                      6.186                          18.087              Liabilities defined benefit - net




                                                                202
Page 742
                                                                  The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)


  55.   JAMINAN TERHADAP KEWAJIBAN PEMBAYARAN                        55.     GOVERNMENT GUARANTEE OF OBLIGATIONS
        BANK UMUM                                                            OF PRIVATE BANKS

        Berdasarkan Undang-undang No.24 tanggal 22                           Based on Law No.24 dated November 22, 2004,
        November 2004 yang berlaku efektif sejak tanggal 22                  which was effective on November 22, 2005 and
        November 2005, sebagaimana diubah dengan                             subsequently amended by the Government
        Peraturan Pemerintah Pengganti Undang-Undang                         Regulation-in-Lieu-of Law No.3 (Perppu No. 3/2008)
        Republik Indonesia No.3 (Perppu No. 3/2008) tanggal                  dated October 13, 2008, the Indonesian Deposit
        13 Oktober 2008, Lembaga Penjaminan Simpanan                         Insurance Corporation (LPS) was formed to
        (LPS) dibentuk untuk menjamin liabilitas tertentu bank               guarantee certain liabilities of commercial banks
        umum berdasarkan program penjaminan yang berlaku,                    under the applicable guarantee program, where the
        yang besaran nilai jaminannya dapat berubah jika                     amount of such guarantee can be changed if certain
        memenuhi kriteria tertentu yang berlaku.                             valid criteria are fullfilled.

        Berdasarkan Peraturan Pemerintah Republik Indonesia                  Based on Government Regulation No. 66 year 2008
        No. 66 tahun 2008 tanggal 13 Oktober 2008 mengenai                   dated October 13, 2008 regarding the Amount of
        Besarnya Nilai Simpanan yang Dijamin LPS, jumlah                     Deposits Guaranteed by LPS, the amount of
        simpanan yang dijamin LPS adalah simpanan sampai                     deposits covered by LPS is up to Rp2,000 per
        dengan Rp2.000 untuk per nasabah per bank.                           depositor per bank. Customer deposits are covered
        Simpanan nasabah dijamin hanya jika suku bunganya                    only if the rate of interest is equal to or below 3.75%
        sama dengan atau di bawah 3,75% dan 1,75% dalam                      and 1.75% in Rupiah and foreign currency as of
        mata uang Rupiah dan mata uang asing pada tanggal                    December 31, 2022 and equal to or below 3.50%
        31 Desember 2022 dan sama dengan atau di bawah                       and 0.25% in Rupiah and foreign currency as of
        3,50% dan 0,25% dalam mata uang Rupiah dan mata                      December 31, 2023.
        uang asing pada tanggal 31 Desember 2023.

        Pada tanggal 13 Januari 2009, Pemerintah Republik                    On January 13, 2009, the Government of the
        Indonesia telah mengesahkan Perppu No.3/2008                         Republic of Indonesia has stipulated Perppu
        menjadi Undang-undang.                                               No.3/2008 to become a law.

        Beban premi penjaminan Pemerintah yang dibayar                       The Government guarantee premiums paid by the
        oleh Bank untuk tahun yang berakhir pada tanggal                     Bank for years ended December 31, 2023 and 2022,
        31 Desember 2023 dan 2022, masing-masing sebesar                     amounted      to  Rp167,677    and    Rp188,454
        Rp167.677 dan Rp188.454.                                             respectively.




                                                            203
Page 743
                                                                                                          The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                     PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                     JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                    NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                    As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                                and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                    (Expressed in millions of Rupiah, unless otherwise stated)


 56.   PELAPORAN JATUH TEMPO                                                                             56.          MATURITY PROFILE

       a.   Pelaporan jatuh tempo aset dan liabilitas menurut                                                         a.     The maturity of the Bank’s assets and liabilities
            kelompok jatuh temponya berdasarkan periode                                                                      based on the remaining period (before
            yang tersisa (sebelum penyisihan kerugian),                                                                      allowance for impairment losses), is as follows:
            adalah sebagai berikut:

                                                                                                     31 Desember/
                                                                                                    December 31,
                                                                                                          2023
                                                 Tidak ada                         Lebih dari 1       Lebih dari 3      Lebih dari 6
                                               tanggal jatuh                      bulan sampai 3    bulan sampai 6    bulan sampai 12
                                                   tempo                              bulan/             bulan/            bulan/        Lebih dari 12
                                                kontraktual/    Sampai dengan      More than 1        More than 3       More than 6         bulan/
                                              No Contractual       1 bulan/       month up to 3     months up to 6    months up to 12    More than 12        Total/
                                                 Maturity       Up to 1 month        months             months            months           months            Total
            ASET                                                                                                                                                                                    ASSETS
            Kas                                            -         2.652.775                 -                 -                  -                    -     2.652.775                                Cash
                                                                                                                                                                                       Current accounts with
            Giro pada Bank Indonesia                       -         7.073.597                 -                 -                  -          897.815         7.971.412                   Bank Indonesia
            Giro pada bank lain                            -           491.330                 -                 -                  -                -           491.330   Current accounts with other banks
            Penempatan pada Bank Indonesia                                                                                                                                   Placement with Bank Indonesia
             dan bank lain                                 -         5.233.226             1.495                 -                  -                    -     5.234.721                  and other banks
            Surat berharga                                                                                                                                                             Marketable securities
             Biaya perolehan diamortisasi                  -          830.243          1.504.216           783.350           698.551          4.744.401        8.560.761                    Amortized cost
             Nilai wajar melalui pendapatan                                                                                                                                             fair value through
              komprehensif lain                            -         7.732.011            30.549                 -                 -                  -        7.762.560      other comprehensive income
            Surat berharga Repo                            -                 -         1.000.865                 -           605.755          6.697.043        8.303.663        Repo marketable securities
            Tagihan reverse repo                           -         6.197.612            49.706                 -                 -                  -        6.247.318         Reverse repo receivables
            Tagihan lainnya                                -           223.138                 -                 -                 -                  -          223.138                   Other receivables
            Kredit yang diberikan
             dan pembiayaan syariah                        -          383.350            993.507         2.681.738          3.472.562       47.229.746        54.760.903          Loans and sharia financing
            Pendapatan bunga yang                                                                                                                                                             interest income
             masih akan diterima                            -         251.395             35.826             8.246             6.034           384.233           685.734             that will still be received
            Beban dibayar dimuka                     207.452                 -                  -                 -                 -                 -          207.452                     Prepaid expense
            Aset tetap - neto                      1.277.714                 -                  -                 -                 -                 -        1.277.714                   Fixed assets - net
            Aset pajak tangguhan - neto                     -                -                  -                 -                 -          472.122           472.122            Deferred tax assets - net
            Aset lain-lain                           373.402                 -                  -                 -                 -                 -          373.402                           Other assets
            Jumlah                                  1.858.568       31.068.677          3.616.164         3.473.334         4.782.902        60.425.360      105.225.005                                   Total
            LIABILITAS                                                                                                                                                                           LIABILITIES
            Liabilitas segera                               -          987.605                  -                 -                  -                -          987.605                liability immediately
            Simpanan dari nasabah                           -       22.457.975         5.462.113         2.436.735          7.344.737       40.495.350        78.196.910            Deposits from customer
            Simpanan dari bank lain                         -        2.541.703            29.280                60              8.200              500         2.579.743          Deposits from other banks
            Pinjaman yang diterima                          -          150.638                  -                 -                  -         406.994           557.632                           Borrowings
            Utang pajak                              143.245                  -                 -                 -                  -                -          143.245                     Taxes payables
            Beban yang masih harus dibayar                  -          504.748                  -                 -                  -                -          504.748                   Accrued expense
            Liabilitas lain-lain                            -          779.314                  -                 -                  -                -          779.314                      Other liabilities
            Jumlah                                    143.245        27.421.983         5.491.393         2.436.795          7.352.937       40.902.844       83.749.197                                Total
            Perbedaan jatuh tempo                   1.715.323         3.646.694       (1.875.229)         1.036.539        (2.570.035)       19.522.516       21.475.808                        Maturity Gap




                                                                                             204
Page 744
                                                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                                                   PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                                                   JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                                                  NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                                                  As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                                                              and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)                                                 (Expressed in millions of Rupiah, unless otherwise stated)



  56.   PELAPORAN JATUH TEMPO (lanjutan)                                                                    56.         MATURITY PROFILE (continued)

        a.    Pelaporan jatuh tempo aset dan liabilitas                                                                a.    The maturity of the Bank’s assets and liabilities
              menurut kelompok jatuh temponya berdasarkan                                                                    based on the remaining period (before
              periode yang tersisa (sebelum penyisihan                                                                       allowance for impairment losses), is as follows:
              kerugian), adalah sebagai berikut: (lanjutan)                                                                  (continued)
                                                                                                      31 Desember/
                                                                                                     December 31,
                                                                                                           2022
                                                  Tidak ada                         Lebih dari 1       Lebih dari 3       Lebih dari 6
                                                tanggal jatuh                      bulan sampai 3    bulan sampai 6     bulan sampai 12
                                                    tempo                              bulan/             bulan/             bulan/        Lebih dari 12
                                                 kontraktual/    Sampai dengan      More than 1        More than 3        More than 6         bulan/
                                               No Contractual       1 bulan/       month up to 3     months up to 6     months up to 12    More than 12        Total/
                                                  Maturity       Up to 1 month        months             months             months           months            Total
             ASET                                                                                                                                                                                     ASSETS
             Kas                                            -         1.988.262                 -                 -                   -                    -     1.988.262                                Cash
                                                                                                                                                                                         Current accounts with
             Giro pada Bank Indonesia                       -          230.541                  -                 -                   -       10.556.199        10.786.740                   Bank Indonesia
             Giro pada bank lain                            -          303.129                  -                 -                   -                -           303.129   Current accounts with other banks
             Penempatan pada Bank Indonesia                                                                                                                                    Placement with Bank Indonesia
              dan bank lain                                 -         4.628.064           606.657                 -                   -                    -     5.234.721                  and other banks
             Surat berharga                                                                                                                                                              Marketable securities
              Biaya perolehan diamortisasi                  -          725.515            852.948         2.367.794           2.627.302         8.167.102       14.740.661                    Amortized cost
              Nilai wajar melalui pendapatan                                                                                                                                              fair value through
               komprehensif lain                            -                 -                 -                 -                  -          8.476.609        8.476.609      other comprehensive income
             Surat berharga Repo                            -         4.095.066                 -                 -                  -                  -        4.095.066        Repo marketable securities
             Tagihan reverse repo                           -         7.440.160                 -                 -            192.726            189.961        7.822.847         Reverse repo receivables
             Tagihan lainnya                                -           286.147                 -                 -                  -                  -          286.147                   Other receivables
             Kredit yang diberikan
              dan pembiayaan syariah                        -          900.723            886.002           933.711           2.436.591       41.039.630        46.196.657          Loans and sharia financing
             Pendapatan bunga yang                                                                                                                                                              interest income
              masih akan diterima                            -          25.795             48.418             9.901              4.495           557.516           646.125             that will still be received
             Beban dibayar dimuka                     166.661                 -                  -                 -                  -                 -          166.661                     Prepaid expense
             Aset tetap - neto                      1.284.250                 -                  -                 -                  -                 -        1.284.250                   Fixed assets - net
             Aset pajak tangguhan - neto                     -                -                  -                 -                  -          502.238           502.238            Deferred tax assets - net
             Aset lain-lain                           141.492                 -                  -                 -                  -                 -          141.492                           Other assets
             Jumlah                                  1.592.403       20.623.402          2.394.025         3.311.406          5.261.114        69.489.255      102.671.605                                   Total

             LIABILITAS                                                                                                                                                                            LIABILITIES
             Liabilitas segera                               -          872.514                  -                 -                   -                -          872.514                liability immediately
             Simpanan dari nasabah                           -       11.214.472        16.200.878         1.699.788          10.878.340       41.773.905        81.767.383            Deposits from customer
             Simpanan dari bank lain                         -        3.287.933            46.630                60               4.500                 -        3.339.123          Deposits from other banks
             Pinjaman yang diterima                          -          150.517                  -                 -                   -         402.882           553.399                           Borrowings
             Utang pajak                               47.205                  -                 -                 -                   -                -           47.205                     Taxes payables
             Beban yang masih harus dibayar                  -          520.840                  -                 -                   -                -          520.840                   Accrued expense
             Liabilitas lain-lain                            -          550.119                  -                 -                   -                -          550.119                      Other liabilities
             Jumlah                                     47.205        16.596.395        16.247.508         1.699.848          10.882.840       42.176.787       87.650.583                                Total
             Perbedaan jatuh tempo                   1.545.198         4.027.007      (13.853.483)         1.611.558         (5.621.726)       27.312.468       15.021.022                        Maturity Gap



        b.   Rasio aset produktif yang diklasifikasikan                                                                b.     The ratio of classified earning assets to total
             terhadap jumlah aset produktif pada tanggal 31                                                                   productive assets as of December 31, 2023
             Desember 2023 dan 2022, masing-masing adalah                                                                     and 2022 is 3.34% and 2.55% respectively.
             sebesar 3,34% dan 2,55%



                                                                                              205
Page 745
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                           PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                           JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                          NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                          As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                      and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)          (Expressed in millions of Rupiah, unless otherwise stated)

 57.   INFORMASI KEUANGAN UNIT USAHA SYARIAH                     57.     SHARIA UNIT FINANCIAL INFORMATION
                                              31 Desember/             31 Desember/
                                              December 31,             December 31,
                                                  2023                     2022

       ASET                                                                                                                      ASSETS
       Kas                                           35.681                    24.827                                              Cash
       Penempatan pada Bank Indonesia                                                                     Placements with Bank Indonesia
         dan bank lain                              338.477                  329.777                                   and other banks
       Surat berharga                             1.066.406                  852.935                                Marketable securities
       Piutang:                                                                                                             Receivables:
         - Murabahah                                902.861                  874.944                                       Murabahah -
         - Qardh                                     49.062                   36.423                                            Qardh -
       Dikurangi: cadangan                                                                                            Less: Allowance for
         kerugian penurunan nilai                   (25.963)                 (55.246)                                impairment losses
       Piutang, neto                                925.960                  856.121                                     Receivables, net
       Pembiayaan:                                                                                                                Financing:
        - Musyarakah                              1.130.521                  767.912                                       Musyarakah -
        - Mudharabah                                105.174                  223.915                                       Mudharabah -
       Dikurangi: cadangan                                                                                              Less: Allowance for
        kerugian penurunan nilai                    (27.429)                 (27.963)                                  impairment losses
       Pembiayaan, neto                           1.208.266                  963.864                                         Financing, net
       Aset ijarah                                      241                       277                                       Ijarah assets
       Aset tetap                                    66.882                    62.414                                       Fixed assets
       Dikurangi: Akumulasi penyusutan              (34.884)                  (28.450)                     Less: Accumulated depreciation
       Nilai buku neto                               31.998                    33.964                                     Net book value
       Aset lain-lain                                13.561                    9.693                                         Other assets
       JUMLAH ASET                                3.620.590                3.071.458                                      TOTAL ASSETS

       LIABILITAS, INVESTASI                                                                                   LIABILITIES, UNCOMMITED
         TIDAK TERIKAT DAN EKUITAS                                                                           INVESTMENT AND EQUITY
       LIABILITAS                                                                                                            LIABILITIES
       Giro wadiah                                  174.426                  156.090                             Wadiah current accounts
       Tabungan wadiah                               81.125                        -                                      Wadiah savings
       Liabilitas segera                             21.029                    8.889                          Obligations due immediately
       Liabilitas lainnya                           943.288                1.024.117                                       Other liabilities
       JUMLAH LIABILITAS                          1.219.868                1.189.096                                  TOTAL LIABILITIES
       INVESTASI TIDAK TERIKAT                                                                           UNCOMMITTED INVESTMENT
       Giro mudharabah                                1.786                    1.637                        Mudharabah current account
       Tabungan mudharabah                          734.193                  594.597                               Mudharabah savings
       Deposito berjangka mudharabah              1.630.498                1.245.458                         Mudharabah time deposits
       JUMLAH INVESTASI TIDAK TERIKAT             2.366.477                1.841.692               TOTAL UNCOMMITTED INVESTMENT
       Laba neto                                     34.245                   40.670                                       Net income
       JUMLAH LIABILITAS, INVESTASI                                                                 TOTAL LIABILITIES, UNCOMMITTED
                                                  3.620.590                3.071.458
         TIDAK TERIKAT DAN EKUITAS                                                                        INVESTMENT AND EQUITY




                                                           206
Page 746
                                                                       The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                                 PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                                 JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                                NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                                As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                            and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)               (Expressed in millions of Rupiah, unless otherwise stated)


 57.    INFORMASI KEUANGAN UNIT USAHA SYARIAH                            57.      SHARIA     UNIT            FINANCIAL            INFORMATION
        (lanjutan)                                                                (continued)
                                                  31 Desember/               31 Desember/
                                                  December 31,               December 31,
                                                      2023                       2022

        LAPORAN LABA RUGI                                                                                 STATEMENTS OF PROFIT OR LOSS
        Pendapatan operasional                                                                                           Operating income
         - Margin                                        62.234                         59.747                                   Margin -
         - Bagi hasil                                    95.101                         75.242                            Profit sharing -
         - Sewa                                             128                             44                                    Rents -
         - Operasional Lainnya                           61.931                         61.845                          Other operating -
        Pendapatan operasional                          219.394                        196.878                          Operating income
        Beban bagi hasil untuk investor                                                                                Profit sharing expenses to
         dana investasi tidak terikat                                                                              non-restricted investors fund
         - Bank                                            (338)                          (578)                                            Bank -
         - Bukan bank                                   (62.870)                       (54.338)                                      Non bank -
        Bagi hasil                                      (63.208)                       (54.916)                                     Profit sharing
        Beban operasional lainnya                                                                                     Other operating expenses
         - Bonus                                            (90)                        (166)                                        Bonuses -
         - Penyisihan kerugian penurunan nilai          (18.396)                     (22.794)               Allowance for impairment losses -
         - Beban administrasi dan umum                  (40.849)                     (40.456)             General and administratif expenses -
         - Beban personalia                             (51.021)                     (28.022)                           Personnel expenses -
         - Beban lainnya                                (12.017)                     (11.734)                                         Others -
                                                       (122.373)                    (103.172)
        Pendapatan operasional bersih                    33.813                       38.790                             Net operating income
        Pendapatan non operasional bersih                   432                          1.880                      Non-operating income - net
        Laba tahun berjalan                              34.245                         40.670                          Profit during the year

  58.   ASET/LIABILITAS KONTINJENSI                                       58.     CONTINGENT ASSETS/LIABILITIES
        Bank saat ini mempunyai aset/liabilitas kontinjensi yang                  The Bank currently has significant contingent
        signifikan terkait dengan beberapa perkara perdata                        assets/liabilities in connection with several civil
        sebagai berikut:                                                          cases as follows:
        1.    Perkara    perdata     No.584/Pdt.G/2007/PN.Sby                     1.      Case       No.584/Pdt.G/2007/PN.Sby        dated
              tanggal 21 November 2007 tentang gugatan PT                                 November 21, 2007 about the lawsuit of PT
              Hikmah Surya Jaya kepada Bank untuk                                         Hikmah Surya Jaya towards Bank, demanding
              memenuhi ganti rugi materiil atas kredit dana                               compensation to the amount of Rp3,000
              bergulir sebesar Rp3.000. Pengadilan Negeri                                 regarding revolving credit. The District Court’s
              (PN) dan Pengailan Tinggi (PT) memutuskan                                   and the Apellate Court’s decide that Bank won.
              pihak Bank menang. Bank telah mengirimkan                                   Bank Jatim has sent a letter number
              surat No.057/0865/HKM/LIT/LEGAL/SRT tanggal                                 057/0865/HKM/LIT/LEGAL/SRT on July 3rd,
              3 Juli 2018 dan diterima PN tanggal 6 Juli 2018.                            2018 and received by the District Court on July
              Masih menunggu jawaban surat dari PN untuk                                  6th, 2018. Still waiting for a response from the
              kepastian inkracht putusan Pengadilan Tinggi                                District Court’s for the inkracht decision of the
              tersebut.                                                                   High Court.
        2.    Perkara Kepailitan No. 40/Pdt.Sus/PKPU/2019/                        2.      Bankruptcy Case No. 40/Pdt.Sus/PKPU/2019/
              PN.Niaga.Sby dengan pemohon PT Fatma                                        PN.Niaga.Sby with the pleader PT Fatma
              Lestari Abadi Mix dan CV. Azka Pelangi                                      Lestari Abadi Mix and CV. Azka Pelangi
              Bersaudara terhadap PT Citra Gading Asritama.                               Bersaudara towards PT Citra Gading Asritama.
              Bank sebagai kreditur mengajukan tagihan                                    Bank as a creditor submits a bill to the Curator
              kepada Kurator atas kredit PT Citra Gading                                  for the credit of PT Citra Gading Asritama (in
              Asritama (dalam pailit) sebesar Rp31.103 saat ini                           bankcruptcy) of Rp31,103 currently in the
              dalam proses verifikasi berkas kreditur di                                  process of creditor file verification at the
              Pengadilan Niaga Surabaya pada Pengadilan                                   Surabaya Commercial Court at the Surabaya
              Negeri Surabaya.                                                            District Court.



                                                                 207
Page 747
                                                                 The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                            PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                            JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                           NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                           As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                       and for the years then ended
(Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)           (Expressed in millions of Rupiah, unless otherwise stated)

  58.   ASET/LIABILITAS KONTINJENSI (lanjutan)                   58.     CONTINGENT ASSETS/LIABILITIES (continuesd)

        3.   Perkara Perdata Nomor 16/Pdt.G/2023/PN.Bna                  3.    Civil Case Number 16/Pdt.G/2023/PN.Bna
             tanggal 18 April 2023 dengan Penggugat PT Rudi                    dated 18 April 2023 with the Plaintiff PT Rudi
             Jaya, potensi kerugian materiil sebesar Rp.3.218,                 Jaya, potential material loss amounting to IDR
             Penggugat sebagai debitur Bank Jatim yang                         3,218, the Plaintiff as a debtor of Bank Jatim
             menerima pola keppres mengajukan gugatan                          who received the presidential decree filed a
             kepada Bank agar tidak dianggap wanprestasi                       lawsuit against the Bank so that it would not be
             dikarenakan Penggugat diputus kontrak oleh                        considered in default due to The plaintiff's
             Kementerian PUPR. Saat ini dalam proses                           contract was terminated by the PUPR Ministry.
             Banding di Pengadilan Tinggi Banda Aceh.                          Currently in the appeal process at the Banda
                                                                               Aceh High Court.
        4.   Perkara Perdata Nomor 124/Pdt.G/2023/PN.Mlg                 4.    Civil Case Number 124/Pdt.G/2023/PN.Mlg
             tanggal 30 Mei 2023 dengan Penggugat Galuh                        dated 30 May 2023 with Plaintiffs Galuh
             Nalibronto Prabaningrum dan           Ngatemoen                   Nalibronto Prabaningrum and Ngatemoen
             Harijono, potensi kerugian materiil sebesar                       Harijono, potential material loss amounting to
             Rp.3.100, Para Penggugat sebagai Penjamin                         Rp. 3,100, The Plaintiffs as Guarantor filed a
             mengajukan gugatan kepada Bank agar                               lawsuit against the Bank to return the collateral
             mengembalikan objek jaminan kepada Penggugat                      object to the Plaintiff because the credit was
             karena kredit dianggap tidak sah. Saat ini dalam                  considered invalid. Currently in the trial process
             proses persidangan di Pengadilan Negeri Malang.                   at the Malang District Court.
        5.   Perkara Perdata Nomor 746/Pdt.G/2023/PN.Sby                 5.    Civil Case Number 746/Pdt.G/2023/PN.Sby
             tanggal 26 Juli 2023 dengan Penggugat PT Toya                     dated 26 July 2023 with the Plaintiff PT Toya
             Indo Manunggal, potensi kerugian materiil                         Indo Manunggal, potential material loss
             sebesar Rp.5.732, Penggugat mengajukan                            amounting to IDR 5,732, The Plaintiff filed a
             gugatan kepada Bank agar menyerahkan seluruh                      lawsuit against the Bank to hand over all terms
             termijn yang diterima oleh PT Acretia Inti Shosha                 received by PT Acretia Inti Shosha
             Persada/Tergugat 2 atas pengerjaan proyek dari                    Persada/Defendant 2 for project work from PT
             PT Indonesia Power. Saat ini dalam proses                         Indonesia Power. Currently in trial at the
             persidangan di Pengadilan Negeri Surabaya.                        Surabaya District Court.
        6.   Perkara Perdata Nomor 888/Pdt.G/2023/PN.Sby                 6.    Civil Case Number 888/Pdt.G/2023/PN.Sby
             tanggal 29 Agustus 2023 dengan Penggugat PT                       dated 29 August 2023 with the Plaintiff PT
             Anugerah Bersama Berkah Abadi, potensi                            Anugerah Bersama Berkah Abadi, potential
             kerugian materiil sebesar Rp.15.000, Penggugat                    material loss amounting to IDR 15,000, The
             mengajukan gugatan kepada Bank agar                               Plaintiff filed a lawsuit against the Bank to hand
             menyerahkan kembali sertipikat hak atas tanah                     over the land title certificate back to the Plaintiff.
             kepada Penggugat. Saat ini dalam proses                           Currently in trial at the Surabaya District Court.
             persidangan di Pengadilan Negeri Surabaya.
        7.   Perkara Perdata Nomor 176/Pdt.G/2023/PN.Kpn                 7.    Civil Case Number 176/Pdt.G/2023/PN.Kpn
             tanggal 6 September 2023 dengan Penggugat                         dated 6 September 2023 with Plaintiff Yon
             Yon Permadian Tesna, dengan potensi kerugian                      Permadian Tesna, against the Bank with
             materiil   sebesar      Rp.27.988,     Penggugat                  potential material losses amounting to Rp.
             mengajukan gugatan kepada Bank proses kredit                      27,988, The plaintiff filed a lawsuit against the
             Bank Jatim mengandung Perbuatan Melawan                           Bank. Bank Jatim's credit process contained
             Hukum. Saat ini dalam proses persidangan di                       unlawful acts. civil judgment. Currently in the
             Pengadilan Negeri Kepanjen.                                       trial process at the Kepanjen District Court.
        8.   Perkara perdata lainnya dengan nilai gugatan                8.    Other civil cases with a value of each lawsuit
             masing-masing dibawah Rp3.000 sejumlah                            demands under Rp3,000 amount to Rp9,853.
             Rp9.853.

        Manajemen Bank berkeyakinan bahwa penyelesaian                  The Bank’s management believes that the above
        kasus-kasus tersebut tidak mengganggu kinerja Bank.             cases doesn’t interfere to the Bank performances.




                                                           208
Page 748
                                                                    The original financial statements included here in are in Indonesian language


PT BANK PEMBANGUNAN DAERAH                                                              PT BANK PEMBANGUNAN DAERAH
JAWA TIMUR Tbk                                                                                              JAWA TIMUR Tbk
CATATAN ATAS LAPORAN KEUANGAN (lanjutan)                             NOTES TO THE FINANCIAL STATEMENTS (continued)
31 Desember 2023 dan 2022 dan                                                             As of December 31, 2023 and 2022
untuk tahun yang berakhir pada tanggal-tanggal tersebut                                         and for the years then ended
 (Disajikan dalam jutaan Rupiah, kecuali dinyatakan lain)            (Expressed in millions of Rupiah, unless otherwise stated)


 59.    BANK KUSTODIAN                                                59.      BANK CUSTODY
        Jasa Kustodian Bank mendapatkan ijin operasi oleh                      Bank Custodian Services has obtained an operating
        OJK berdasarkan surat OJK nomor: S-4/PM.2/2019                         license based on the letter of OJK number: S-
        tanggal 29 Januari 2019. Bank Kustodian merupakan                      4/PM.2/2019 date Januari 29, 2019. Bank’s
        bagian dari Divisi Dana Jasa, Sub Divisi Priority                      Custodian, which is part of the Service and Fund
        Banking & Kustodian, adapun jasa-jasa yang diberikan                   Divisions, Priority Banking & Custodian Sub-
        diantaranya:                                                           Divisions, provides a full range of custodian services
                                                                               such as:
        1.   Penyimpanan (safekeeping) dan administrasi atas                  1.     Safekeeping and administration of marketable
             Efek-efek maupun dokumen berharga lainnya;                              securities and other valuable assets;
        2.   Penyelesaian transaksi jual dan beli Efek                        2.     Settlement and handling services for script and
             berbentuk warkat (script) maupun tanpa warkat                           scriptless trading transactions;
             (scriptless);
        3.   Pengurusan hak-hak nasabah atas kepemilikan                      3.     Corporate action services related to the rights of
             efek-efek yang disimpan sehingga hak tersebut                           the marketable securities;
             efektif di rekening nasabah (corporate action);
        4.   Perwakilan (proxy) pada Rapat Umum Pemegang                      4.     Proxy services for its customers’ shareholder
             Saham dan Rapat Umum Pemegang Obligasi;                                 meetings and bond holder meetings;
        5.   Sub-Registry untuk melayani investor yang                        5.     Sub-Registry service provider for securities
             melakukan transaksi dan investasi Efek; dan                             settlement and investment; and
        6.   Penyampaian laporan (reporting) dan informasi                    6.     Generate reports and information regarding
             (information) yang terkait dengan Efek-efek                             customers’ marketable securities which are kept
             dan/atau dokumen berharga milik nasabah yang                            and administered by Bank Jatim’s Custodian
             disimpan dan diadministrasikan oleh Bank Jatim                          Unit.
             Kustodian.

 60.    STANDAR AKUNTANSI BARU                                        60.      NEW ACCOUNTING STANDARDS

        Berikut ini ikhtisar Pernyataan Standar Akuntansi                     The following summarizes the Statement of
        Keuangan (PSAK) yang diterbitkan oleh Dewan                           Financial Accounting Standards (PSAK) which
        Standar Akuntansi Keuangan yang relevan untuk                         were issued by the Financial Accounting
        Bank, namun belum berlaku efektif untuk laporan                       Standards Board and are relevant to the Bank,
        keuangan yang berakhir pada tanggal 31 Desember                       but is not yet effective for financial statements
        2023:                                                                 ended December 31, 2023:
        Berlaku efektif pada atau setelah tanggal 1 Januari                   Effective on or after January 1, 2025:
        2025:
        - PSAK 74, “Kontrak Asuransi”, yang diadopsi dari                     -    PSAK 74, “Insurance Contracts”, adopted from
          IFRS 17, penerapan dini diperkenankan untuk                              IFRS 17, early application is permitted for
          entitas yang juga telah menerapkan PSAK 71 dan                           entities that have also applied PSAK 71 and
          PSAK 72.                                                                 PSAK 72.
        Saat ini Bank sedang mengevaluasi dan belum                           The Bank is currently evaluating the above
        menetapkan dampak dari penerapan standar                              standards and has not yet determined the impact
        tersebut serta pengaruhnya pada laporan keuangan                      of these standard on the financial statement of the
        Bank.                                                                 Bank.

 61.    PENYELESAIAN LAPORAN KEUANGAN                                 61.      COMPLETION OF THE FINANCIAL STATEMENTS
        Laporan keuangan telah diselesaikan dan disetujui                      The financial statements were completed and
        untuk diterbitkan oleh Direksi Bank pada tanggal                       authorized for issuance by the Bank’s Directors on
        15 Januari 2024.                                                       January 15, 2024.
  Ss1




                                                              209
Page 749
2023
Annual Report




Alamat Kantor Pusat
Jalan Basuki Rachmad 98 – 104,
Surabaya 60271
Telp    : (62-31) 5310090-5310099
Fax     : (62-31) 5310838
Email : info@bankjatim.co.id

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Names mentioned 218 people and organisations named in the text · linked when the evidence is strong

linked org Koperasi Konsumen p.16
linked org Mandiri Sekuritas p.30
linked person BUSRUL IMAN · President Director p.38 ×16
linked person Tonny Prasetyo · Director of IT and Operation p.53 ×15
linked person R. Arief Wicaksono · Director of Consumer, Retail and Sharia Business p.53 ×12
linked person Zulhelfi Abidin p.53 ×9
linked person Eko Susetyono · Director p.53 ×9
linked person Arif Suhirman · Direktur Operasi p.53 ×4
linked person Candra Fajri Ananda · Independent Commissioner p.64 ×12
linked person Adhy Karyono · Commissioner p.64 ×9
linked person Wioga Adhiarma Aji p.70
linked org Pemda Kabupaten p.279
linked person Muhammad Mas’ud · Independent Commissioner p.335 ×6
linked org Pemerintah Propinsi p.548
linked person Moch. Arifin · Anggota p.550 ×2
linked person Slamet Purwanto · Anggota p.550
linked org Dana Pensiun p.587 ×8
linked org Pemerintah Provinsi p.672 ×2
linked org Pemerintah Kabupaten p.672 ×2
linked person Ferdian Timur Satyagraha p.673
possible org Panin Sekuritas p.30
possible org Otoritas Jasa Keuangan p.60 ×3
possible org PT Bank Pembangunan p.70
possible person Dr. Sutomo p.72 ×3
possible org PT Taspen p.83
possible org PT Asabri p.83
possible org Bank Rakyat Indonesia (Persero) Tbk p.111 ×18
possible org Bank Negara Indonesia (Persero) Tbk p.111 ×2
possible person Suprajarto · President Commissioner p.111 ×3
possible person Sumaryono · Independent Commissioner p.335 ×5
possible org Bursa Efek Indonesia p.548
possible person Kusnadi · Anggota p.550
unresolved org Bank Pembangunan Daerah Jawa Timur Tbk. p.1 ×260
unresolved org Bank Jatim p.3 ×199
unresolved org Bank Jatim’s p.3 ×40
unresolved org Bank Performance Profile p.7
unresolved org Bank Jatim’s Position p.7
unresolved org Bank Soundness Level p.8
unresolved — Remuneration for Commercial Banks In p.9
unresolved org PT Bank Pembangunan Daerah Djawa p.12 ×3
unresolved org PT Asuransi Jiwa Sinarmas MSIG Life. Initial Public p.12
unresolved org Bank Jatim Java Provincial Government’s Nawa Bhakti Satya p.15
unresolved org Bank NTB Syariah p.15 ×2
unresolved org Bank Lampung. Nawa Bhakti Satya East Java Provincial p.15
unresolved org Bank Capital Rp p.16
unresolved org Bank Jatim’s CAR p.16
unresolved org PT Enha Sentosa Indonesia p.16 ×2
unresolved org Bank Jatim. The Trayang Village p.16
unresolved org PT Astana Shoga Asia p.16
unresolved org PT Tropikal Jaya Sukma p.16
unresolved org PT Pameling Agro Nusantara p.16
unresolved org Koperasi Konsumen Pameling Makmur Village p.16
unresolved org PT Indo Bumi Lavanaa p.16
unresolved org Bank Jatim Capital Adequacy Position p.17
unresolved org Bank Indonesia p.22 ×17
unresolved org Bank Jatim Stock p.27 ×2
unresolved org Bank Jatim Stock Closing Price p.28
unresolved org Bank Jatim Stock Trading Volume p.28
unresolved org Sadif Investment p.30
unresolved org Sinarmas Sekuritas p.30
unresolved — BRI Danareksa p.30
unresolved — RHB Research p.30
unresolved org Binaartha Sekuritas p.30
unresolved org Bank Jatim’s Loan p.30
unresolved org Ministry of Home Affairs. p.33
unresolved org Bank Jatim Successfully p.33
unresolved org Bank Jatim Sharia Business Unit Annual Report Awards. p.34
unresolved org Bank Guarantees p.39
unresolved org Bank Jatim Debit p.40
unresolved org Bank Jatim Flazz Card p.40 ×2
unresolved org Bank Jatim Provinces. To p.40
unresolved org Bank Indonesia’s Board p.41
unresolved org Bank Indonesia’s p.41
unresolved org Directorate General of Population and Civil Registration p.42
unresolved org Ministry of Home Affairs. To p.42
unresolved org Bank Jatim Prime Lending Rate p.42
unresolved org Bank In p.49 ×2
unresolved org Financial Services Authority p.50 ×17
unresolved org Bank Jatim Magazine p.50
unresolved org Pembangunan Daerah Jawa Timur Tbk p.55 ×4
unresolved org Bank Jatim Business Plan p.55 ×2
unresolved org Bank Jatim Management p.55
unresolved org Bank Jatim’s Financial Reports p.55
unresolved org Bank Jatim Bank Business Plan p.55
unresolved org Daerah Jawa Timur Tbk p.55 ×2
unresolved org Bank Jatim UUS DPK p.58
unresolved org PKF p.63
unresolved org Pailingan & Partners p.63
unresolved person Heru Tjahjono · Commissioner p.64 ×3
unresolved org FOwnershipinance Number BJTM Daerah Jawa Timur Tbk. p.70
unresolved org Bank Jatim As p.70
unresolved — Surabaya a Main p.71
unresolved org Banyuwangi Branch p.71
unresolved org Jember Branch p.71
unresolved org Malang Branch p.71
unresolved org Madiun Branch p.71
unresolved org Kediri Branch p.71
unresolved org Pamekasan Branch p.71
unresolved org Bojonegoro Branch p.71
unresolved org Lumajang Branch p.71
unresolved org Ngawi Branch p.71
unresolved org Jombang Branch p.71
unresolved person K.H. Wakhid Hasyim p.71 ×2
unresolved org Kraksaan Branch p.71
unresolved org Probolinggo Branch p.71
unresolved org Blitar Branch p.71
unresolved org Tulungagung Branch p.71
unresolved org Sumenep Branch p.71
unresolved org Sampang Branch p.71
unresolved org Bangkalan Branch p.71
unresolved person K.H. Moh. Kholil p.71
unresolved org Pasuruan Branch p.71
unresolved org Nganjuk Branch p.71
unresolved org Minister of Timur Tbk p.74
unresolved org Timur Tbk p.74 ×2
unresolved org Minister of Finance No. BUM. p.74
unresolved org East Java Regional Limited p.74
unresolved org Ministry of Law and Human Rights p.75 ×2
unresolved org Minister of Justice p.75 ×2
unresolved org Jawa Timur Tbk. p.75 ×14
unresolved person Fathiah Helmi p.75
unresolved org Minister of Law and Human Rights p.75
unresolved org Indonesia Stock Exchange p.75
unresolved person Notary Sitaresmi Puspadewi Subianto · Notaris p.81 ×3
unresolved org Indonesia Deposit Insurance Corporation p.82
unresolved org Bank Jatim’s Hajj Savings p.83
unresolved org Ministry of Maritime p.83
unresolved org Bank Deposits p.84
unresolved org Layanan Umum Daerah p.85
unresolved org Bank Jatim FX Forward p.87
unresolved org Bank Jatim. Bank Notes p.87
unresolved org Bank To Bank Transaction Export p.87
unresolved org Bank Jatim. This p.87
unresolved org Bank Jatim. Bank References p.88
unresolved org Ministry of Finance. The JConnect Invest p.88
unresolved org Bank Jatim Branch p.89
unresolved org Directorate General of Central Taxes p.89
unresolved org Directorate General of Customs p.90
unresolved org Bank Jatim Retired Employees p.90
unresolved org Bank Jatim Syariah p.92 ×2
unresolved org Bank Jatim Info p.93
unresolved org Bank SMS Banking p.93
unresolved org Bank Jatim ATM Card p.94
unresolved org Bank Jatim ATM p.94 ×2
unresolved org Bank Jatim Virtual Account p.94 ×2
unresolved org Bank Jatim Offices p.96
unresolved org Bank Jatim Automated Teller Machines p.97
unresolved org Dr. Soetomo Branch p.98
unresolved person Forum Komunikasi · Komisaris p.99
unresolved org Bank Jatim Share p.111
unresolved org PT Bank Perkreditan Rakyat Jawa Timur p.279
unresolved — Edi Masrianto · Director of Commercial & Corporate p.335 ×2
unresolved person ERDIANTO SIGIT CAHYONO p.335
unresolved person Tabel Rangkap · Komisaris p.354
unresolved org Ministry of Finance Commissioner Muhammad Mas’ud p.354
unresolved person University · Director p.354
unresolved org Management of conflicts of interest for · and making decisions that lead to abuse of authority and/ p.354
unresolved — as stipulated in · or improper decision making. p.354
unresolved — Guidelines and Procedures are as follows: · 7. Not holding multiple positions as: p.354
unresolved org Trading or self-dealing with the aim of obtaining personal · and nonbanks. p.354
unresolved — gain. · b. Members of the Board of Directors, members of the p.354
unresolved org 2. Not taking advantage of the Company for personal, family, · Board of Commissioners or Executive Officers in more p.354
unresolved — profits. · company, either domiciled inside or outside the p.354
unresolved org 3. Do not take and/or receive personal benefits from the Bank · country. p.354
unresolved — GMS. · and/or other positions in accordance with laws and p.354
unresolved — 4. Not involved in making decisions about · regulations. p.354
unresolved — Articles of Association or applicable laws · Financial Services Authority Regulation. p.354
unresolved org Pengawas Pasar p.548
unresolved org BAPEPAM-LK p.548 ×4
unresolved person Sulam Andjar Rochim · Anggota p.550
unresolved org Dana Pensiun Pegawai Bank Pembangunan Jawa Timur p.587
unresolved org Bank Pembangunan Daerah Daerah Jawa Timur Tbk p.588 ×2
unresolved org Dana Pensiun Lembaga Keuangan p.588
unresolved org Dana Pensiun Lembaga Rakyat Indonesia p.588
unresolved org PT Asuransi Jiwasraya (Persero) p.589
unresolved org PT Asuransi Jiwa Inhealth p.589
unresolved org PT Asuransi Jiwa Inhealth Indonesia p.589
unresolved person Untung Darnosoewirjo p.590 ×2
unresolved person Darnosoewirjo p.590
unresolved person Wachid Hasyim p.590 ×2
unresolved org Pemerintah Provinsi Jawa Timur p.672 ×3
unresolved org Kabupaten Sidoarjo p.672 ×2
unresolved org Kabupaten Bojonegoro p.672 ×2
unresolved org Kabupaten Banyuwangi p.672 ×2
unresolved org Kabupaten Malang p.672 ×2
unresolved org Kabupaten Gresik p.672 ×2
unresolved org Kabupaten Tuban p.672 ×2
unresolved org Kabupaten Ngawi p.672 ×2
unresolved org Kabupaten Kediri p.672 ×2
unresolved org Kabupaten Sumenep p.672 ×2
unresolved org Kabupaten Kraksaan p.672 ×2
unresolved org Kabupaten Jember p.672 ×2
unresolved org Kabupaten Lamongan p.672 ×2
unresolved org Kabupaten Sampang p.672 ×2
unresolved org Kabupaten Bondowoso p.672 ×2
unresolved org Kabupaten Trenggalek p.672 ×2
unresolved org Kabupaten Mojokerto p.672 ×2
unresolved org Kabupaten Nganjuk p.672 ×2
unresolved org Kabupaten Situbondo p.672 ×2
unresolved org Kabupaten Tulungagung p.672 ×2
unresolved org Kabupaten Lumajang p.672 ×2
unresolved org Kabupaten Pacitan p.672 ×2
unresolved org Kabupaten Pasuruan p.672 ×2
unresolved org Kabupaten Pamekasan p.672 ×2
unresolved org Kabupaten Blitar p.672 ×2
unresolved org Kabupaten Bangkalan p.672 ×2
unresolved org Kabupaten Madiun p.672 ×2
unresolved org Kabupaten Jombang p.672 ×2
unresolved org Kabupaten Ponorogo p.672 ×2
unresolved org Kabupaten Magetan p.672 ×2
unresolved org Kota Surabaya p.672 ×2
unresolved org Kota Madiun p.672 ×2
unresolved org Kota Malang p.672 ×2
unresolved org Kota Pasuruan p.672 ×2
unresolved org Kota Mojokerto p.672 ×2
unresolved org Kota Probolinggo p.672 ×2
unresolved org Kota Blitar p.672 ×2
unresolved org Kota Kediri p.672 ×2

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