20251021_BJBR_Laporan Informasi dan Fakta Material_31978678_lamp2.pdf

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 assessment of the operating environment, although this is not our base assumption
 currently.


 Steady Business Profile: BJB has a moderate domestic national franchise in addition to
 sizeable market shares in its home provinces of West Java and Banten. We believe its
 business profile benefits from its association with the provincial governments of these two
 provinces as well as the central government, which allows it to generate significant business
 volumes from lower-risk salary loans and pensioner loans. This also enhances the bank's
 funding access to regional government-related entities, which supports adequate liquidity
 and growth.


 Moderate Pressure in Asset Quality: BJB's non-performing loan (NPL) ratio rose to 2.6%
 by end-June 2025 (four-year average: 1.7%), driven by rising NPLs in its corporate and
 commercial segments. However, we believe further deterioration is likely to be contained
 and credit risks in the loan portfolio are also balanced by the bank's sizeable exposure to
 salary loans, where repayments are automatically debited from payroll accounts.


 Profitability to Recover: Fitch expects BJB's net interest margin to recover in the wake of
 recent cuts to the domestic policy rate, as the bank has a large proportion of interest-rate
 sensitive funding that reprices more quickly than its loan portfolio, which is dominated by
 fixed-rate consumer loans with longer tenors. This, along with healthy loan growth and
 manageable pressure on credit costs, should support a recovery in profitability.


 Adequate Capitalisation: We expect BJB to maintain an adequate capital buffer,
 notwithstanding a common equity Tier 1 (CET1) ratio that is below the majority of its peers
 (1H25 BJB: 14%, peer average: 21%). We expect capitalisation to remain stable, supported
 by moderate loan growth and improved earnings accrual.

 RATING SENSITIVITIES

 Factors that Could, Individually or Collectively, Lead to Negative Rating
 Action/Downgrade

 A downgrade of BJB's National Long-Term Rating would most likely arise from a weakening
 in its overall credit profile relative to the universe of entities rated on the Indonesia national
 rating scale. This could result from a decrease in the central government's ability or
 willingness to provide extraordinary support and a simultaneous deterioration in the bank's
 standalone credit profile.




https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               2/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 BJB's standalone credit profile is most vulnerable to a material deterioration in its asset
 quality and loss-absorption buffer, particularly given its already below-average
 capitalisation and loan-loss coverage. This could happen if its NPL ratio increases to, and is
 sustained at, above 4% without being mitigated by higher loan-loss allowance or increase in
 capital buffer.

 Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

 An upgrade of BJB's National Long-Term Rating would most likely arise from an increase in
 the government's propensity to support Indonesia's banking system in general or the bank
 specifically. This could stem from more explicit statements of support from the government,
 or a significant increase in the bank's systemic importance. However, we believe this to be
 unlikely in the near term.


 We may also upgrade BJB's National Long-Term Rating if we believe that its standalone
 profile has improved significantly. This could happen if we believe that its business profile
 has strengthened materially, enabling it to sustain growth and profitability through the
 cycle without compromising on risk-taking.

 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
 RATING

 The principal sources of information used in the analysis are described in the Applicable
 Criteria.

 PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

 BJB's National Long-Term Rating is credit-linked to Indonesia's sovereign rating
 (BBB/Stable), based on our expectation of extraordinary support.

                                                     RATING ACTIONS



      ENTITY / DEBT                       RATING                                                            PRIOR 



      PT Bank Pembangunan                                                                                     AA-
                                              Natl LT       AA-(idn) Rating Outlook Stable
      Daerah Jawa Barat dan                                                                                   (idn) Rating
      Banten Tbk                                                                                              Outlook
                                              Affirmed
                                                                                                              Stable




https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               3/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 VIEW ADDITIONAL RATING DETAILS


 FITCH RATINGS ANALYSTS

 Utami Ratnasari
 Senior Analyst
 Primary Rating Analyst
 +62 21 5061 0509
 utami.ratnasari@fitchratings.com
 PT Fitch Ratings Indonesia
 DBS Bank Tower 24th Floor, Suite 2403 Jl. Prof.Dr. Satrio Kav 3-5 Jakarta 12940


 Grace Wu
 Senior Director
 Committee Chairperson
 +852 2263 9919
 grace.wu@fitchratings.com

 MEDIA CONTACTS

 Leslie Tan
 Singapore
 +65 6796 7234
 leslie.tan@thefitchgroup.com


 Vivian Kam
 Hong Kong
 +852 2263 9612
 vivian.kam@thefitchgroup.com


 Additional information is available on www.fitchratings.com

 PARTICIPATION STATUS

 The rated entity (and/or its agents) or, in the case of structured finance, one or more of the
 transaction parties participated in the rating process except that the following issuer(s), if
 any, did not participate in the rating process, or provide additional information, beyond the
 issuer’s available public disclosure.

 APPLICABLE CRITERIA


https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               4/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 National Scale Rating Criteria (pub. 23 Dec 2020)
 Bank Rating Criteria (pub. 22 Mar 2025) (including rating assumption sensitivity)



 ADDITIONAL DISCLOSURES

 Solicitation Status
 Endorsement Policy


 ENDORSEMENT STATUS
 PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk                                                                  -



 DISCLAIMER & DISCLOSURES

 All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers.
 Please read these limitations and disclaimers by following this link:
 https://www.fitchratings.com/understandingcreditratings. In addition, the following
 https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions
 for each rating scale and rating categories, including definitions relating to default. ESMA
 and the FCA are required to publish historical default rates in a central repository in
 accordance with Articles 11(2) of Regulation (EC) No 1060/2009 of the European
 Parliament and of the Council of 16 September 2009 and The Credit Rating Agencies
 (Amendment etc.) (EU Exit) Regulations 2019 respectively.


 Published ratings, criteria, and methodologies are available from this site at all times. Fitch's
 code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other
 relevant policies and procedures are also available from the Code of Conduct section of this
 site. Directors and shareholders' relevant interests are available at
 https://www.fitchratings.com/site/regulatory. Fitch may have provided another permissible
 or ancillary service to the rated entity or its related third parties. Details of permissible or
 ancillary service(s) for which the lead analyst is based in an ESMA- or FCA-registered Fitch
 Ratings company (or branch of such a company) can be found on the entity summary page
 for this issuer on the Fitch Ratings website.


 In issuing and maintaining its ratings and in making other reports (including forecast
 information), Fitch relies on factual information it receives from issuers and underwriters
 and from other sources Fitch believes to be credible. Fitch conducts a reasonable
 investigation of the factual information relied upon by it in accordance with its ratings
 methodology, and obtains reasonable verification of that information from independent
https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               5/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 sources, to the extent such sources are available for a given security or in a given
 jurisdiction. The manner of Fitch's factual investigation and the scope of the third-party
 verification it obtains will vary depending on the nature of the rated security and its issuer,
 the requirements and practices in the jurisdiction in which the rated security is offered and
 sold and/or the issuer is located, the availability and nature of relevant public information,
 access to the management of the issuer and its advisers, the availability of pre-existing
 third-party verifications such as audit reports, agreed-upon procedures letters, appraisals,
 actuarial reports, engineering reports, legal opinions and other reports provided by third
 parties, the availability of independent and competent third- party verification sources with
 respect to the particular security or in the particular jurisdiction of the issuer, and a variety
 of other factors. Users of Fitch's ratings and reports should understand that neither an
 enhanced factual investigation nor any third-party verification can ensure that all of the
 information Fitch relies on in connection with a rating or a report will be accurate and
 complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the
 information they provide to Fitch and to the market in offering documents and other
 reports. In issuing its ratings and its reports, Fitch must rely on the work of experts,
 including independent auditors with respect to financial statements and attorneys with
 respect to legal and tax matters. Further, ratings and forecasts of financial and other
 information are inherently forward-looking and embody assumptions and predictions
 about future events that by their nature cannot be verified as facts. As a result, despite any
 verification of current facts, ratings and forecasts can be affected by future events or
 conditions that were not anticipated at the time a rating or forecast was issued or affirmed.
 Fitch Ratings makes routine, commonly-accepted adjustments to reported financial data in
 accordance with the relevant criteria and/or industry standards to provide financial metric
 consistency for entities in the same sector or asset class.


 The complete span of best- and worst-case scenario credit ratings for all rating categories
 ranges from 'AAA' to 'D'. Fitch also provides information on best-case rating upgrade
 scenarios and worst-case rating downgrade scenarios (defined as the 99th percentile of
 rating transitions, measured in each direction) for international credit ratings, based on
 historical performance. A simple average across asset classes presents best-case upgrades
 of 4 notches and worst-case downgrades of 8 notches at the 99th percentile. For more
 details on sector-specific best- and worst-case scenario credit ratings, please see Best- and
 Worst-Case Measures under the Rating Performance page on Fitch’s website.


 The information in this report is provided “as is” without any representation or warranty of
 any kind, and Fitch does not represent or warrant that the report or any of its contents will
 meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to

https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               6/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 the creditworthiness of a security. This opinion and reports made by Fitch are based on
 established criteria and methodologies that Fitch is continuously evaluating and updating.
 Therefore, ratings and reports are the collective work product of Fitch and no individual, or
 group of individuals, is solely responsible for a rating or a report. The rating does not
 address the risk of loss due to risks other than credit risk, unless such risk is specifically
 mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have
 shared authorship. Individuals identified in a Fitch report were involved in, but are not
 solely responsible for, the opinions stated therein. The individuals are named for contact
 purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for
 the information assembled, verified and presented to investors by the issuer and its agents
 in connection with the sale of the securities. Ratings may be changed or withdrawn at any
 time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice
 of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do
 not comment on the adequacy of market price, the suitability of any security for a particular
 investor, or the tax-exempt nature or taxability of payments made in respect to any security.
 Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for
 rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable
 currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues
 issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor,
 for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or
 the applicable currency equivalent). The assignment, publication, or dissemination of a
 rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in
 connection with any registration statement filed under the United States securities laws,
 the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities
 laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and
 distribution, Fitch research may be available to electronic subscribers up to three days
 earlier than to print subscribers.


 For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an
 Australian financial services license (AFS license no. 337123) which authorizes it to provide
 credit ratings to wholesale clients only. Credit ratings information published by Fitch is not
 intended to be used by persons who are retail clients within the meaning of the
 Corporations Act 2001.Fitch Ratings, Inc. is registered with the U.S. Securities and
 Exchange Commission as a Nationally Recognized Statistical Rating Organization (the
 “NRSRO”). While certain of the NRSRO's credit rating subsidiaries are listed on Item 3 of
 Form NRSRO and as such are authorized to issue credit ratings on behalf of the NRSRO (see
 https://www.fitchratings.com/site/regulatory), other credit rating subsidiaries are not listed
 on Form NRSRO (the “non-NRSROs”) and therefore credit ratings issued by those

https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               7/8

10/17/25, 4:40 PM                                           Fitch Affirms Indonesia's Bank BJB at 'AA-(idn)'; Outlook Stable

 subsidiaries are not issued on behalf of the NRSRO. However, non-NRSRO personnel may
 participate in determining credit ratings issued by or on behalf of the NRSRO.


 dv01, a Fitch Solutions company, and an affiliate of Fitch Ratings, may from time to time
 serve as loan data agent on certain structured finance transactions rated by Fitch Ratings.


 Copyright © 2025 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall
 Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Reproduction or
 retransmission in whole or in part is prohibited except by permission. All rights reserved.


 READ LESS


 SOLICITATION STATUS

 The ratings above were solicited and assigned or maintained by Fitch at the request of the
 rated entity/issuer or a related third party. Any exceptions follow below.


 Fitch's solicitation status policy can be found at www.fitchratings.com/ethics.

 ENDORSEMENT POLICY

 Fitch’s international credit ratings produced outside the EU or the UK, as the case may be,
 are endorsed for use by regulated entities within the EU or the UK, respectively, for
 regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit
 Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch’s
 approach to endorsement in the EU and the UK can be found on Fitch’s Regulatory Affairs
 page on Fitch’s website. The endorsement status of international credit ratings is provided
 within the entity summary page for each rated entity and in the transaction detail pages for
 structured finance transactions on the Fitch website. These disclosures are updated on a
 daily basis.




https://www.fitchratings.com/research/banks/fitch-affirms-indonesia-bank-bjb-at-aa-idn-outlook-stable-17-10-2025               8/8